The Small Business Institute (“SBI”), which represents thousands of small businesses and chambers of commerce and business forums, is calling on President Cyril Ramaphosa to place small businesses at the centre of his growth agenda for the country.
On Thursday this week, Ramaphosa will deliver his state of the nation address (“Sona”) – his first as head of the Government of National Unity (GNU).
“The past year has been dreadful for small business owners. But, as always, they showed amazing resilience and confidence for themselves, their families and country in the face of odds of rising criminality by the business mafias/protection rackets, slow growth and unscrupulous informal traders,” John Dludlu, CEO of the SBI said.
Although the past few years have seen a concerted effort to cut red tape, such as appointing a special presidential adviser, “We have noted a return to old fragmented ways by organs of state, layering new red tape on existing ones,” Dludlu added.
The institute is calling on the President to:
- Announce steps to clamp down on the mafias which are terrorising businesses especially MSMEs and cooperatives owners
- Set clear time lines of restructuring the MSME funding agencies
- Step up the closure of illegal spazas and action against those found to have been behind last year’s deaths
- Set a realistic target for the registration of spazas and work with business associations working in the ecosystem
To support job creation, SBI is calling for:
- Targeted financing and non-financial support of medium-sized enterprises with better than average potential to create employment
- Support for export-oriented medium-sized companies
- Exemption of MSMEs and cooperatives from sector wage settlements negotiated with large companies in bargaining councils
- A clear commitment to fixing ailing municipalities working with business
While SBI said it supports the introduction of competition in freight logistics, energy and other sectors, it said, “We wish to caution against replacing state monopolies with private sector ones.”
“We also hope the President provides more detail on the Transformation Fund, and that this fund does not become a fund of consultants, auditors and lawyers,” Dludlu said.
SBI added that it stands ready, willing and capable of partnering with government to resolve the myriad of problems facing our economy.
BUSINESS REPORT