By: Noko Mashilo
The Small Business Institute (SBI) has welcomed the establishment of the Small Enterprise Development Advisory Board, announced by the Cabinet last week. The government has taken a long time to set up the advisory board, so its formation was a positive step and there was hope it would prioritise critical issues facing small businesses, said SBI CEO John Dludlu, “For three decades, the government has been formulating policies without advice from the ecosystem, small businesses and their representatives. Policies are passed every year, and we, as players in the small business sector, contribute through research, providing input to the government.
“However, this is not the most effective approach. A more structured dialogue with ecosystem stakeholders is needed,” Dludlu told Vutivi News. He emphasised that those closest to the ground should be the ones informing policies, rather than basing them on experiences from other countries. “I am disappointed that this has taken so long. The constant changes in policy with every new minister of trade and industry disrupt progress,” Dludlu said.
“If I were president, I would change three policies: firstly, permits and licenses for informal traders and tourism operators would be valid for five years, with unannounced inspections to maintain standards, avoiding yearly renewals and harassment by metro officials,” Dludlu said. He said the priority treatment for small business owners at municipal offices for revenue, UIF and other business matters should also be ensured. “I would establish a dedicated small business line, so they don’t have to queue in the general line. A dedicated desk would allow them to focus more on clients, employees and suppliers,” Dludlu said.
The third change he would make was ensuring prompt payment by the government, as delayed payments often crippled small businesses. Minister in the Presidency, Khumbudzo Ntshavheni, said the advisory body’s formation aimed to ensure representation and the promotion of small enterprise interests as outlined in the National Strategy for the Development and Promotion of Small Enterprises in South Africa.
“The advisory body will offer the government evidence-based expert advice on various aspects of the small enterprise support ecosystem, enabling more effective policy reforms, legislative amendments and intervention designs to support micro, small, and medium enterprises, as well as cooperatives,” Ntshavheni said during a media briefing. The SBI embraces transformation and focuses on promoting the prosperity of small businesses. It represents over 80 chambers of commerce in South Africa, with hundreds of small businesses directly affiliated with them.
