Focusing on Small Medium and Micro Enterprises (SMMEs) and cooperatives can trigger growth, create jobs and build a more inclusive economy, says President Cyril Ramaphosa .
“As a country, we need to get behind our entrepreneurs and SMMEs and strengthen the eco-system that supports them,” the President said .
The country’s first citizen was speaking on Friday night at the 2nd National Presidential SMME and Cooperatives Awards in Johannesburg .
The President told delegates the ceremony was pressing given the current volatile global times .
“Our prospects for a faster and more sustained recovery after COVID-19 have been set back amidst continued supply chain disruptions, high inflation and depressed market demand .
“Governments are under pressure to stimulate the economy and to provide more social relief, but with reduced fiscal resources .
”
This is the reason he is of the view that SMMEs can stimulate growth and job creation .
He told guests he was encouraged by the work being done by the Department of Small Business Development since the launch of the third iteration of the country’s SMME strategy almost a year ago .
The National Small Enterprise Development Strategic Framework aims to use resources within the broader eco-system to build practical partnerships that enable entrepreneurship and SMME growth .
Government is establishing a new one-stop small enterprise agency that will bring together the Small Enterprise Development Agency (SEDA), the Small Enterprise Finance Agency (SEFA) and the Co-operatives Banks Development Agency (CBDA) .
The strategic framework calls for concrete partnerships and actions in four areas .
These include tackling the red tape and regulatory burdens that frustrate SMMEs .
“The Department of Small Business Development is also streamlining business licensing processes, with the Businesses Licensing Amendment Bill soon to be gazetted .
“But there is much more to be done .
We know some of the frustrations which tech start-ups in particular have with foreign exchange controls that impede inward flows of venture capital, and affect the local registration of intellectual property .
”
The other areas of focus entail addressing market concentration and enabling market access, especially for SMMEs owned by women, youth and other underserved communities; access to finance and entrepreneurship support .
“If we get this right, we can change the country’s fortunes .
”
The current administration, he said, has set a target of establishing new 100 small enterprise incubators .
To date, the state has established 110 with another 11 under development .
“It is encouraging that the number of people engaged in entrepreneurial activity has significantly increased .
”
Citing the Global Entrepreneurship Monitor, he said the working-age population involved in business start-ups in South Africa increased from 6 .
5% in 2001 to 17 .
5% in 2021 .
“This clearly reaffirms what our National Development Plan envisioned, the creation of 11 million jobs by 2030 with nine million of these coming from small enterprises .
“We just need to scale up our interventions to create a conducive environment for SMMEs, and onboard other eco-system partners, especially the private sector, to play their part .
”
He told the entrepreneurs in the room that citizens depended on their innovation and entrepreneurship to create the opportunities that would enable them to get the much-needed jobs .
“Congratulations to the winners and the runners-up .
You have gone through a rigorous selection process and thoroughly deserve to be here .
It is your dynamism and drive that will revitalise our economy and improve our global competitiveness .
”
Share on Facebook «||» Share on Twitter «||» Share on Reddit «||» Share on LinkedIn