Business Summit focuses on small, medium and micro-enterprises (SMMEs)
strategy
14 November 2006
The Minister of Trade and Industry, Mr Mandisi Mpahlwa, opened the Annual
Small Business Summit in Cape Town yesterday and shared his department's
strategy on the development and rapid growth of the SMME sector.
A 10 year review done on small businesses shows that the growth of the SMME
sector will require many efforts such as the roll-out of infrastructure for
entrepreneurs, access to government services and improvement of the regulatory
environment.
Small businesses are facing many challenges including access of services by
government agencies. The Minister highlighted that when the economy grows
slowly, small businesses feel the pinch more; because the rapid growth of the
economy is a key factor in SMME development.
The biggest problem is still an increase in market opportunities. Bigger
businesses must be willing to outsource from small businesses and all
stakeholders must therefore strengthen public private partnership for economic
growth and development.
Millions of South Africans are starting their own businesses and government
has to ensure that the business environment is regulated, company registration
system works better and that they access government services.
The Minister concluded by saying that part of the dti focus is on
institutional building refocusing the mandate of Khula Enterprise, ensuring
that the role of the Small Business Advisory Council yields positive results
and furthermore, assist institutions like the Small Enterprise Development
Agency (seda) to roll out branches successfully across the country.
"As part of the national government plan for enterprise development, the dti
will asses the new strategic thrusts in order to ensure that small businesses
are an integral part of the overall economic growth. The regional development
strategy is being developed to accelerate small business development in low
economic areas of the country. Currently the economy is growing at over 4% and
this will invigorate small business in particular, and there is a hope of 6%
growth in the next decade," said Mr Lionel October, Deputy Director-General
(DDG) of the Department of Trade and Industry.
In addition, the Western Cape government announced that it has developed a
growth and development strategy premised on the growth of small businesses. "We
are working tirelessly in ensuring that weaknesses of the second economy are
addressed and that existing enterprises are strengthened for the growth and
development of the SMME sector," said Dr H Vast, Western Cape Department of
Economic Affairs.
"The departments of housing, economic affairs and local government have
developed a plan that assists municipalities to develop effective strategies,"
added Dr Vast.
Among other issues discussed at the Summit, which also relate to the growth
of the SMME sector was around closing the financing gap.
"A review of the financial sector charter shows that there is still a
disproportionate accessibility of financial services in relation to the total
population. It also indicate that KwaZulu-Natal, Western Cape and Gauteng still
account for more than 80% of investments in the SMME reading space and the
procurement spent by the financial sector industry players is estimated at R4,4
billion per annum; only 36% of the services and products procured are from
black empowered companies," said, Mr Enoch Godongwana of the Financial Sector
Charter Council.
The Chief Executive Officer (CEO) of Khula Enterprise, Mr Xola Sithole,
further highlighted that financing gaps still exists within the SMME sector and
that interventions by the dti and commercial banks must increase substantially
to make a dent on the challenges of increasing access to finance and closing
the SMME financing gap.
Please address all your media enquiries to:
E-mail: mediarelations@thedti.gov.za
Enquiries:
Ms Mandisa Manjezi
Chief Director, Enterprise Industry Development Division (EIDD)
Tel: (012) 394 0000
Henriette van der Merwe
Tel: (012) 394 1640
Cell: 072 316 5533
Bongani Lukhele
Tel: (012) 394 1643
Cell: 083 291 8689
Bethuel Mnguni
Tel: (012) 394 1647
Cell: 083 624 8888
Issued by: Department of Trade and Industry
14 November 2006
