Pretoria | Monday
THE government’s endeavour to stimulate SME (small and micro enterprise) development is not achieving the desired results, according to a Unisa study.
SMEs are still constrained by various factors ranging from a lack of access to information, capital, training and other types of enterprise development resources and facilities to poor regulation and control of street trading and crime. ”Shortage of funds should not necessarily be interpreted as a lack of access to funds,” the report said. ”Bad debt (poor payment of customers) and small profit margins (as a result of overtrading) create the perception among SME owners that shortage of funds is their major problem.
”Further findings of the study corroborate the fact that the access to financing is not a major constraint and that the financial system is indeed accessible to the majority of SMEs.”
Security issues were a serious concern for SMEs, not least because they impact negatively on their profitability.
Just more than one in every three businesses (36,4 %) were victims of crime during the period 1999 to June 2001.
In areas such as the Pretoria CBD and Mamelodi almost one in every two businesses experienced crime during the 1999 to June 2001 period.
”The general picture emanating from the past two years is that all forms of crime against SMEs are showing an upward trend in Pretoria.” The study was conducted by the Bureau of Market Research (BMR) of the University of South Africa (Unisa) and Kagiso Trust Consultancy. – Sapa