'Small Business is Big Business for 2010 and beyond'
Programme director
The Mayor of eThekwini Municipality, Councillor Obed Mlaba
Entrepreneurs
Exhibitors
Ladies and gentlemen
Our department is indeed delighted to be part of this auspicious occasion where role-players in the Small, Medium and Micro Enterprises (SMME) sector gather to showcase their wares, share ideas and, collectively, continue to seek ways to better this sector so that it can play its rightful role in the growth and development of our economy.
This SMME Fair takes place against the backdrop of a world that is still reeling and trying to deal with the effects of the global economic meltdown. Indeed, we might be presently experiencing some of the toughest economic hardships in many years with recessionary conditions cutting closer to the bone forcing some businesses to call it a day.
But, through the existing partnership between government and business we are determined to weather the storm. Collaborative sessions such as the eThekwini SMME Fair are part of collective interventions to bolster economic growth and confidence especially amongst emerging entrepreneurs that are hard hit by the current economic melt down. As you interact during this Fair and showcase your products and services, it is essential that you seize the opportunity of interfacing with your better and established counterparts to share ideas on how to the survive recession and even turning it to opportunities for growth and development. Critically, we must do this while positioning ourselves for anticipated opportunities associated with the forthcoming 2010 FIFA Soccer World Cup.
In countries like Japan and France, as early as two months ago, they had already pronounced that the worst of the recessionary storm was over. About two weeks ago, the United States of America also declared that the recession had bottomed out and their economy was already on a growth trajectory. Despite the fact that there is a school of thought which contends that these countries might be over-optimistic and, therefore their pronouncements of the recession being over are premature, this means that very soon our SMMEs will have to prepare themselves for an economy that offers opportunities.
It indeed would be sad if our SMMEs are found wanting when the recovery takes root. However, it would be short-sighted for us as SMMEs to continue with business as usual. The recession has taught us a number of lessons. We have learnt that we must take calculated risks and not to be swayed into investing in popular and get-rich-quick business ventures that are not reliable. We have also learnt that as entrepreneurs we must consistently conduct an analysis of the market trends, our business environment and the spending patterns of our clients and customers. The recession has also taught us to be circumspect where we invest and how we utilise our resources.
While acknowledging the rigours of the recession we also mindful that the province is standing on a firm pedestal to cash up on the football spectacular as this year's fair precedes this global sporting feast. With the advent of the South African Trade Point Durban, we believe our entrepreneurs are gradually being exposed to global trade to be able to export their products and services to lucrative markets whilst networking with their global counterparts for potential joint ventures and partnerships.
This facility (Trade Point) is one of tangible partnership initiatives between the Department of Economic Development and Tourism and its various social partners that include eThekwini Municipality. But its success in achieving its primary objectives hinges on a desire by our business to hunt for new business information, innovative strategies to be able to exploit opportunities in both local and world market. We are strategically located to be the major exporter of goods and services to the rest of the Southern African Development Community (SADC) region. We just need to think out of the box and display sharp entrepreneurial drive to seize opportunities that have been opened by facilities like the Trade Point as well as infrastructure projects like the Dube Trade Port.
Programme director, since 2005, the Small Business Development Unit (SBD) within our department has been working in partnership with the eThekwini Municipality – Business Support Unit on Regional Small Business Fair, and Area Municipality Small Business Fairs. The eThekwini Municipality has hosted these Fairs for the past ten years for the sole purpose of exposing SMMEs and Cooperatives to more business opportunities and linkages.
This is what Local Economic Development (LED) is all about and the municipalities are responsible for stimulating economic growth within their jurisdictions. Other municipalities must take a leaf out of the eThekwini Municipality's book and start ventures of this nature. Our department is always willing, within the existing resources, to assist other municipalities in putting together fairs of this nature.
The objectives of the eThekwini SMME Fair 2009 are in line with priorities of the KwaZulu-Natal Department of Economic Development and Tourism and these are to:
* promote and expose the SMMEs and cooperatives to markets
* provide a platform for small and emerging businesses to showcase their products
* provide an opportunity for networking and business linkages with corporate companies
* showcase the growing achievement to SMMEs and cooperatives and their contributions to economic growth and employment creation.
We have no doubt that the eThekwini Small Business Fair 2009 will create:
* A platform for strengthening of the policy and strategy dialogue among role players in the Small Business Development sector
* A platform for the emerging businesses to interact with stakeholders and voice out their inputs in the focus area of their needs
* A colloquium for sharing and linking research findings and practical experiences between academic researchers and small business development specialists
* A platform to promote work done by the government departments, corporate companies within and outside the SMME sector
* A platform whereby the small businesses are informed on strategies, development agencies, structures and programmes that exist for their support
* A platform with the information on opportunities available for them in the Corporate Sector.
Programme director, special attention has been paid to skills development, access to funding, access to markets as well as the alignment and matching of SMMEs' development with key sectors that present more business opportunities than others. This means streamlining emerging enterprises towards sector specific as per market demand for their products and services. In this regard sector specific enterprises have been and continue to be formed. This will ensure that interventions are focused to the needs of the emerging enterprises.
In response to the challenges faced by SMMEs, the department has created the KwaZulu-Natal joint SMME Fund. This financial intervention (SMME Fund) is targeted at SMMEs in the province to help stimulate this sector and unleash its potential to contribute to economic development and growth.
The KwaZulu-Natal joint SMME risk fund is aimed at:
* enabling viable small business propositions that might not normally access finance, to secure loans from participating lending institutions
* providing loan guarantees in form of additional security /collateral
* facilitating in packaging of SMME business proposals into bankable business plans
* attracting more bank participation into the SMME sector
* enhancement of economic growth
* targeting businesses who have been awarded government contracts
* enhancement of the provincial supply chain mechanism
* promotion of BBBEE and job creation
* developing a sustainable economy
* supporting local economic development.
More than R100 million has been set aside for this Fund and it is being administered by the following banks – Ithala Development Finance and
Corporation LTD; ABSA and Standard Bank - with whom separate agreements have been concluded.
In conclusion, this year's SMME Fair should be treated as a declaration of readiness to provide top bracket products and services to the hordes of international visitors to descend on our shores for the 2010 FIFA Soccer World Cup. Critically, at this Fair we should already be fine-tuning strategies on how the SMME sector will function beyond 2010.
It would be detrimental to this sector, if the role-players were to look at 2010 as the be all and end all of the sector. Life will continue after 2010 and we must be ready to play a meaningful role in growing the economy beyond 2010, although we would have used this spectacle as a stepping stone to better things.
As government we will remain an unwavering supporter of all business people wishing to grab entrepreneurial opportunities since their sustainable operations equate to the creation of jobs and reduction of poverty in our communities. On behalf of the KwaZulu-Natal Department of Economic Development and
Tourism, I wish all the more than 500 exhibiting enterprises a successful business exploration characterised by joint ventures and partnership deals.
I am also sending a warm welcome to our International Exhibitors who are part of this fair. We need to work together to build an economy that creates opportunities for all and make tourism to work for all of us.
I thank you.
Issued by: Department of Economic Development and Tourism, KwaZulu-Natal Provincial Government
25 September 2009
Source: Department of Economic Development and Tourism, KwaZulu-Natal Provincial Government (http://www.kznded.gov.za)
