By: Moipone Malefane
Over the last couple of months, South Africa’s political parties have been fiercely campaigning across the length and breadth of the country to convince voters where to make their mark on election day.
The stakes are high, with some polls predicting that the ANC is going to get serious run for its money in maintaining its majority after being in power for three decades.
However, the reality is that no matter the outcome of the elections and the political manoeuvring that will follow, the country desperately needs to kickstart the struggling economy and tackle soaring unemployment levels.
While we have heard ad nauseum over the years that SMMEs and entrepreneurs are vital to economic development and job creation, with them featuring more than ever in election manifestos to varying degrees, support for the small business sector has been inadequate and needs be ramped up significantly.
A perusal of two recently published reports focusing on SMEs in the country, shows that small businesses continue to be unimpressed with government support, access to funding and load-shedding.
“Our research once again shows an industry driven by optimism, resilience and ambition. But this doesn’t disguise the challenges facing our small business community. This year’s research shows a 50% increase in small firms calling government support insufficient,” says Xero South Africa country manager Colin Timmis, while commenting on the company’s 2024 State of Small Business Report.
“This is especially important as we approach the election. We need to work together to create a more connected support system for people to start and grow businesses.”
And, Business Partners Limited’s SME Index says that in the last quarter of 2023, SMEs expressed less confidence that the South African government was doing enough to foster their development. At just 42%, this indicator saw a decrease of nine percentage points year-on-year.
Both reports point to small businesses being a bit more optimistic about their growth this year. However, it would be absurd for the future government to maintain the status quo. Let’s not forget that the National Development Plan places the responsibility of creating 90% of all jobs in South Africa on SMMEs by 2030.
While the country’s main parties have promised different support to ensure a flourishing small business sector, they all acknowledge that we need a government that creates an enabling environment for SMMEs.
Party commitments range from incorporating SMMEs in the re-industrialisation of the country and changing procurement laws, to reforming labour legislation and restricting foreigners from owning small businesses.
While everyone agrees that it is the job of the democratic state to create an enabling business environment, much more is needed from the both the public and private sector. High on the wish-list of the country’s smaller businesses is more procurement opportunities, gaining access to markets, and greater support for localisation.
But just as importantly, they want a voice at the bargaining table when it comes to drawing up policies and regulations that affect them. Let’s hope that politicians do not do a disappearing act as often is the case, once the campaigning comes to an end.
