Mashatile, on the occasion of the signing of the partnership between Gauteng
Enterprise Propellor (GEP), Harmony Gold and Randfontein Local Municipality and
the opening of the GEP satellite office
20 July 2006
Programme director,
The executive mayor of the Randfontein Local Municipality,
Councillor Zeph Mhlongo,
The Chief Executive Officer of Harmony Gold,
Mr Bernard Swanepoel,
Honoured guests,
Ladies and gentlemen,
The journey we began in April 2005 with the launch of the Gauteng Enterprise
Propeller continues. Our forward march to develop Small, Medium and Micro
Enterprises (SMMEs) has gathered momentum as we continue to register new and
important gains in our effort to grow the SMME sector. Todayâs event represents
yet another milestone for GEP. It marks the beginning of a true partnership for
small business development in Randfontein and surrounding areas.
On this day, Harmony Gold, the Randfontein Local Municipality and the
provincial government, through GEP, are beginning a partnership to unleash the
potential of SMMEs, as engines for economic growth and expanded participation
in the economy of this area. We are truly delighted to be partners in this
important initiative and we pledge our continued support towards its success.
We also applaud our partners, Harmony Gold and the Randfontein Local
Municipality for joining hands with us as we embark on the critical tasks of
developing SMMEs in Gauteng.
Programme Director, the small business sector is a significant sector of our
national and provincial economy. There are approximately 2 million small
businesses in our country representing a substantial percentage of the total
number of firms. Gauteng has the largest concentration of small businesses than
any other province in our country.
Collectively, small businesses employ 55% of the countryâs labour force and
account for approximately 42% of the national wage bill. Indications are that
this sector will continue to grow in significance as more and more small
businesses are established. It is also expected that by far the largest number
of jobs will continue to come from this sector. This trend is consistent with
the experiences of other countries where SMMEs have become major contributors
to employment creation, economic growth and expanded participation in the
economy.
The challenge we face in our country and our province is that a great
majority of small businesses are survivalist, and are thus confined to the
fringes of the economy. Many of them are battling with the challenge of a lack
of business management skills, access to finance and markets. These constraints
prevent them from contributing to economic growth and job creation.
We must continue to make the point that small business does not only mean
retail businesses that are survivalist. The international economy is full of
examples where small businesses have established themselves as major players in
strategic industries such as value added manufacturing and the information and
communication technology sectors.
We must continue to create an enabling environment for those businesses
operating on the margins of the economy to become sustainable and play a
meaningful role in the economic mainstream. We also have a responsibility to
strengthen efforts aimed at developing new entrepreneurs and deepening the
culture of entrepreneurship in our country.
The provincial governmentâs response to these and many other challenges
facing small business development has been the establishment of the GEP. This
agency, which we have allocated R300 million over three years, provides
comprehensive financial and non-financial support to SMMEs and cooperatives in
Gauteng. GEP carries the hopes and aspirations of many small entrepreneurs who
want to overcome the challenges they face and play a significant role in our
economy. Through GEP we expect to give tangible support to 30 000 SMMEs by
2014.
As we all know, the challenges of developing SMMEs are enormous. They
require collective action by all stakeholders. It is for this reason that GEP
will continue to form strategic partnerships with institutions that provide
support to SMMEs. We will continue to seek partnerships, particularly with big
business, in order to maximise the support we are offering to small businesses.
Todayâs event is one of such many partnerships we will form with all those
institutions who share our vision. In line with our approach to establish
strategic partnerships, GEP is in discussions with banking and other financial
institutions to partner with them in the provision of finance to small
businesses in Gauteng.
We note with appreciation that the partnership agreement we are signing
today commits all parties to provide ongoing support to identified enterprises.
This will be done through among others, the creation of procurement
opportunities for local entrepreneurs, skills development, the establishment of
a business development centre and the provision of seed capital.
We are also encouraged that this partnership commits all parties to work
with other business and government structures to identify further mechanisms to
support small businesses in this area. This opens the way for others,
particularly in the private sector, to be part of such initiatives.
We urge other private sector role players to follow the example set by
Harmony Gold and partner with us as we address the challenge of unemployment
and faster economic growth through the development of SMMEs. It is in our
collective interests to do so.
In conclusion, I would like to thank the Randfontein municipality for the
role they have played in ensuring the success of this initiative. We will
continue to rely on their support as we strengthen more small businesses in
this area.
We are also confident that the new GEP office will be a valuable asset to
the people of this area. We hope that they will use it to access the services
that GEP provides. Once more thank you to our private sector partners, Harmony
Gold. May your actions inspire others in the private sector.
Thank you.
Issued by: Department of Finance and Economic Affairs, Gauteng Provincial
Government
20 July 2006
