The Deputy Minister of Trade and Industry, Ms Elizabeth Thabethe says the South African government is committed to supporting the development of the small, medium and micro enterprises (SMMEs) because of the critical role that they play in the country’s economy.
Thabethe was speaking at an SMME Breakfast Seminar that was hosted by the Zimbabwean-based Alpha Media Holdings in partnership with the Media Relations Unit of the South African Department of Trade and Industry (the dti) at the Rainbow Hotel in Bulawayo, Zimbabwe today. Thabethe is in Zimbabwe where she has been leading a group of 47 companies participating in the 54th edition of the Zimbabwe International Trade Fair since Sunday.
“The South African government is strongly committed to supporting SMME development, as demonstrated in a range of strategies and policies, including the Integrated Small Enterprise Development Strategy and the National Small Business Act passed in 1996 to establish supportive structures to assist the SMMEs,” said Thabethe.
She added that the primary focus of the dti was on increasing the number of new ventures and supporting the survival and growth of existing SMMEs.
“South Africa’s estimated 2.8 million SMMEs contribute between 52% and 57% of Gross Domestic Product (GDP) and provide about 61% of employment. SMME development is therefore critical for driving employment, economic growth and stability. Consistent with global economic trends, SMMEs remain key drivers of economic growth and development. In South Africa, SMMEs contribute more than 40% of our country’s total remuneration. Our preoccupation should be on how we ensure increased market reach for SMMEs so that they expand,” she emphasised.
However, Thabethe acknowledged that structural challenges, including labour laws, access to finance, red tape and taxes faced by the SMMEs still impact on their ability to grow.
“We are aware that South Africa's entrepreneurs like elsewhere in the world, face formidable challenges. The negative impact is witnessed broadly in the rural communities, women, youth and people living with disability,” she said.
Thabethe cited the recent research by the Small Enterprise Development Agency (Seda) which looked at factors affecting the success or failure of SMMEs. It found that by comparison with countries such as Chile, Thailand, Mexico and other emerging markets, South Africa "establishes, sustains and grows fewer businesses per head of population".
“As government, we are also aware that a number of factors may contribute to this, including lack of formal education, general exposure and useful business networks, especially among black entrepreneurs due to their historical marginalisation. That is why as the dti, we provide a number of support programmes for SMMEs, particularly black owned companies, to upscale their business activities, improve their competitiveness, and skills, and acquire new investments. With the assistance of other government departments and institutions, the dti takes the lead in implementing SMME-related policies, to ensure that adequate financial and non-financial assistance is provided to our SMMEs, “said Thabethe.
Enquiries:
Sidwell Medupe
Departmental Spokesperson
Tel: 012 394 1650
Cell: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
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