SMEs make cut in MTBPS 2017

27 October 2017 | Web Article Number: ME20177182

Commerce & Trade
SMME Development & Support

The Medium Term Budget Policy Statement announced a focused spend on jobs, small businesses, small-scale agricultural production and industrial incentives, with an initial allocation of R1 billion for new fund to support small business and innovation. “The National Treasury is working with the departments of Science and Technology and Small Business Development to establish a new fund for small business and innovation. The fund, which will be allocated R1 billion in 2019/20, will provide wholesale funding to private- and public-sector incubators, which will on-lend to entrepreneurs at the concept stage.”  

Commenting on this statement, Christo Botes, executive director at Business Partners Limited (BUSINESS/PARTNERS) said, “It is positive to see commitment from Government on another initiative encouraging innovation amongst small businesses. It would however be much more cost effective - from a national rollout perspective – to combine this funding with the CEO Fund, as pooling this would assist in ensuring effective management by the private sector. We would like to see the implementation matched with the intent to target deserving beneficiaries and accurately allocate the funding to start and expand sustainable small businesses.”  

Botes adds that we would like to see a balance between the money borrowed from the fund by small businesses and sustainability measures. “To purely provide entrepreneurs with start-up funding, without it being supplemented with technical skills and business acumen, can be counterproductive as research shows that funding alone won’t necessary improve the success rate of small businesses.”

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