President Cyril Ramaphosa has used his address at the Presidential Micro, Small and Medium Enterprises and Cooperatives Awards to call on banks to make money available for businesses.
Speaking at the awards held at the Gallagher Convention Centre in Gauteng on Friday, the President emphasised that with interest rates declining, this is an opportune time to make funding more accessible to drive economic growth.
“As interest rates are coming down and are bound to come down even further, this is the time to make finance available within obviously the various consideration that you have to take into account.
“This is the time to make finance available and pump energy and life into our economy because when small and medium enterprises are given enabling energy by our financial institutions... they will be able to run businesses to be creative, to create jobs and our economy can grow.
“I call on the banks and financial institutes to make money available so that our businesses can grow,” the President said.
Hosted by the Department of Small Business Development, the Presidential Micro, Small and Medium Enterprises (MSMEs) and Cooperatives Awards are aimed at highlighting and rewarding the achievements of South Africa’s top-performing MSMEs, cooperatives, and ecosystem enablers who drive growth and transformation across the nation.
The ceremony honoured businesses that embody innovation, commitment to local development and entrepreneurial spirit.
The President also took a moment to address the recent spate of foodborne illnesses that have been linked to spaza shops and informal traders in townships. He said this has thrown into sharp focus the issues of regulation, health and safety.
At the same time, he said the issue has highlighted the critical role small businesses play in communities, providing much-needed services and supporting local economies.
“That is why it is so important to bring small businesses into the mainstream of the economy, and that we provide the necessary support for them to do this.
“International experience shows that MSMEs are drivers of sustainable growth. Countries with more MSMEs tend to have lower levels of inequality. Entrepreneurs are the drivers of innovation,” he said.
However, the President acknowledged that rates of entrepreneurship in South Africa are low by continental standards.
He told entrepreneurs and delegates at the awards that it is essential that they encourage entrepreneurship.
“It is vital that we enable the emergence and growth of MSMEs and cooperatives. We must focus on targeted interventions to address financial exclusion and onerous regulatory requirements.
“We must provide access to funding, capacity building and other support. The success of the finalists here this evening shows that with the right support, small businesses can succeed, expand and be sustainable,” the President said.
The President said that the Government of National unity has made inclusive growth and job creation its apex priority, and supporting small enterprises is an integral part of these efforts.
President Ramaphosa said the National Planning Commission estimates that the country needs 5.8 million MSMEs to meet job creation targets.
The President said that this means there is a need to double the number of MSMEs in the country.
“We are encouraged by the efforts underway to capacitate the sector. One of these is the merging of SEFA [Small Enterprise Finance Agency], SEDA [Small Enterprise Development Agency] and the Cooperatives Bank Development Agency into the newly-formed Small Enterprise Development Finance Agency.
“Of the R730 million disbursed by the new agency to date, R101 million has gone to township enterprises and R261 million to rural enterprises,” he said.
The Small Enterprise Development Finance Agency has also provided non-financial business support to more than 15 000 township and rural enterprises.
The President said that legislation is in the pipeline to streamline business licensing.
An e-registration system that integrates the work of the South African Revenue Service and the Companies and Intellectual Property Commission (CIPC) is under development.
“If we are to fully unlock entrepreneurial potential, there must be a razor-sharp focus on start-up growth, especially in the burgeoning tech sector. We must ensure that we are not left behind in the global transition to knowledge and innovation-based economies.
“As part of this, we must scale up the adoption of advances like mobile payments and digitised record-keeping by small businesses,” he said.
President Ramaphosa said he was encouraged by the work of the Department of Small Business Development and the Department of Science and Innovation around a national start-up policy.
Among other things, this policy will deal with issues such as intellectual property registration and foreign exchange controls.
“Even as this is all work in progress, we recognise the urgency with which we must scale up support for small businesses in South Africa. They are the driving force of our economy.
“The finalists and recipients of this year’s awards are a shining example of what can be achieved. Allow me to congratulate all the winners and runners-up. You have done well. You are a fine example to other South Africans who want to follow their entrepreneurial dreams,” the President said.
The President also took a moment to thank the organisers of the awards, the generous sponsors and the millions of entrepreneurs who make the country work and the economy grow.
“These are the micro, small and medium enterprises and cooperatives that create livelihoods and jobs. They provide communities with vital services. They create value that goes far beyond turnover or profit.
“They contribute in a million different ways to building a more equal, more prosperous and more productive society. These awards are a celebration of all the entrepreneurs in a country. It is a token of our gratitude and admiration,” the President said. – SAnews.gov.za
