General performance along with investment in skills development is crucial to making sure the expansion of Small Medium Micro Enterprises (SMMEs), suggests
At the recent annual International Small Business Congress (ISBC) Kolosile stated that efficiency is paramount to make sure that small businesses are capable of doing well and achieve a competitive edge both nationally and internationally.
For South African SMMEs to succed it is vital that they become more efficient to allow them to effectively play their role in establishing sustainable employment as well as realize inclusive economic growth.
South Africa would need to make investments in skills development in order to enhance and strengthen the capacity of human resources within the SMMEs and cooperatives. We will need to enhance their capabilities and know-how as numerous studies have shown that with the required support, SMMEs could possibly end up being the foundation of employment creation in the country.
To deal with the country’s disturbing 25.4% unemployment rate, all provinces ought take the lead from Gauteng who have implemented steps and procedures to support SMMEs prevail over challenges and barriers by setting up the Gauteng Economic Propeller, amongst other things.
The Propeller has been given the job of furnishing financial together with non-financial support to SMMEs and cooperatives. In addition, it offers the means to access information, which has been recognized as a critical obstacle to SMMEs’ development and growth.
The intention of the conference was to brings together small business policymakers and provide a stage for policymakers to discuss ideas and best practices with regards to improving support to both survivalist micro enterprises as well as nurturing more high-growth firms.
This is the very first time the conference has been held in Africa.
Entrepreneurship continues to be the most effective solutions to give a boost to job creation, Deputy Trade and Industry (dti) Minister Elizabeth Thabethe says.
Giving a presentation at a “Taking the dti to the people” outreach campaign in Douglas in the Northern Cape, Thabethe explained to small business owners that entrepreneurship can assist government achieve its target of creating five million jobs by 2020.
The campaign is designed to bolster government’s dedication to empowering rural and peri-urban communities to fast-track job creation.
She called on small business owners to register their businesses in an attempt to allow it to be simplier and easier for government to empower communities.
“Registering and formalising of businesses is the only route to obtain help from government and as much as registering of businesses is essential, I also need to stress that you need to safeguard against fraudsters masquerading as the dti agents. To be able to register your company you don’t need a middle man and it does not amount to the exorbitant fees that you are being charged by unscrupulous people posing as agents of the dti,” she said.
The department said it was enthusiastic to educate small business owners together with those aspiring to be entrepreneurs about business opportunities, products and responsibilities.
At the promotional event small business owners and entrepreneurs received training seminars on how to start, grow and sustain their businesses.
South African youth have been encouraged to grab opportunities and not give up on starting their own small businesses.
Motivating young adults to keep working at it, National Youth Development Agency (NYDA) chief executive Steven Ngubeni said “it’s too soon to give up and be hopeless.”
He said youth both in the country and across Africa should not wait to seize opportunities and then “cry foul” once they were gone.
Ngubeni talked to BuaNews on the sidelines of an entrepreneurial mentorship programme made available from the NYDA’s partnership with US based Evo Media.
Ngubeni believed that the majority of small businesses ended up being closed inside a year of establishment as a result of absence of mentorship.
Roughly 50 mentees from the Western Cape are going to reap some benefits from the mentorship programme, set to run for the next few days, before it is moved to Gauteng.
Noli Mini testified at the gathering the fact that her mobile health spar business has been operating well subsequent to benefiting from mentorship from the NYDA.
She pointed out that immediately after three sessions of mentorship, she quit her job to follow her dream.Mini challenged the NYDA to follow up with entrepreneurs and assist them to put into action their business strategies.
She also challenged other entrepreneurs to look for business opportunities and not to assume the NYDA to “perform miracles.”
Geer Kyle Dennison, a young fashion designer who not too long ago relocated to Cape Town from Johannesburg, testified that after benefiting from mentorship, three boutiques had now accepted her clothing line.
Todd Plimpton, a mentor from the US, said he at the same time learnt from the people he mentored, adding that mentoring made it easier for him to “reground” his experiences.
Jabu Cindi, who operates a transport business in Cape Town, mentioned that aside from networking, he expected to learn more from the US mentors.
Having said that, he complained that it was not easy to gain access to the products and services of the NYDA as well as their “processes that take too long.”
Western Cape NYDA chairman Ghaliep Essop said young adults could rise beyond their poor backgrounds to own profitable businesses.
According to the NYDA, in excess of 5 000 young entrepreneurs throughout the country have utilized mentoring provided by local mentors. More than 500 seasoned professionals and entrepreneurs have volunteered to be of assistance to young business people.
It highlighted that more than 50 group mentoring sessions had been held countrywide, covering key issues impacting on small businesses, including the means to access funding, business leadership and staff development.
For more information, please contact National Youth Development Agency – click here
A new R15 million SMME loan scheme has been unveiled in KwaZulu-Natal on to assist the younger people with funding for their businesses.
The Imbewu Loan Fund, made available from Ithala and the National Youth Development Agency (NYDA), has been started to deal with challenges concerning the shortage of the ways to access funding for a good number of businesses in KZN.
The two organizations will offer financial loans of between R50 000 and R5 million to young people aged between 18-35.
Acting MEC for Economic Development and Tourism Ina Cronje talked about how all South Africans have to transform from being a nation of job seekers to one of job creators and entrepreneurs and with the help of this fund available, a certain amount of our younger generation will be given the opportunity to take the lead.
Cronje urged up and coming businesses to identify the business opportunities offered in Kwazulu-Natal and make a contribution to the economic growth and development of of the region..
CEO of NYDA, Steven Ngobeni said the signing of the Memorandum of Understanding (MOU), which took place at the Hilton Hotel, is an example to other provinces in the country to follow.
“Young individuals are confronted with poverty and all sorts of various other economically-related issues. They happen to be fed up with being unemployable and as a result we need to have programmes in this country that will actually ensure that they step out of poverty and unemployment.
“These obstacles can be conquered if we as government agencies interact with each other which happens to be the key reason why Ithala and NYDA have come together with each other to steer the manner in which for other agencies in this country should operate adn move forward,” he was quoted saying.
MEC Cronje believed this is an fantastic effort and a lot more of these programmes are essential to ensure that the younger generation develop into economically active individuals and consequently have the opportunity to play a role in job creation.
“The indisputable fact that a handful of young adults are seen idling due to their unemployability is often an indicator that we all need to make sure we skill these individuals to enable them to make something of themselves. This initiative’s main objective and goal is to develop entrepreneurs and I am delighted the fact that the NYDA has taken the bull by its horns concerning issues of youth development,” Cronje said.
Siphiwe Madondo, Group Chief Executive Officer of Ithala invited all businesses and individual looking for financial assistance should contact Ithala or NYDA directly but before you do, make certain you have a concrete and clear business plan in place in order to be taken into consideration.
“All of us happen to be incredibly hands on in the business of youth business development. So far, approximately R70 million of funding, was utilized to finance youth businesses during the past year alone as a result of Ithala.
“We would you like to assist young people to be able to start their own businesses that will play a role in job creation in the country. Imbewu Loan Fund is consequently a affirmation that we want the youth to live, breathe and think entrepreneurship. This loan fund is going to focus on small businesses,” he explained.
Cronje added: “See these opportunities when they come up, be ready and willing to start small and work your way up, one step at a time. SMMEs are the backbone of economic growth and development. Avoid being greedy, work your way up legally and professionally to make sure that your good concept flies. Try to find help and assistance where necessary and make sure that you have an understanding of financial management”.