Minister of Finance Trevor Manuel says the government is being schizophrenic regarding the small and medium enterprises (SME) sector.
In an address to the Western Cape Growth and Development Summit, he said: “Let me be honest: I think government has been schizophrenic in promoting small business. We have laws and regulations that are often contradictory. I firmly believe the provincial and local government, together, can do more that we have been able to achieve as national government.
“Local governments often control the zoning laws, facilitate electricity and water connection, determine rates and taxes, develop land use plans and control urban road and transport networks.
“Provinces play the major role in developing the technical colleges, fostering key skills for young people to run their own small businesses, own significant amounts of land that can be released for development, have large procurement budgets to use as leverage for the promotion of small business and control that main arterial road network in the province, a critical asset for an economy to thrive.
“We must make small business development a bigger part of our policy armoury to tackle unemployment and poverty. In supporting small business, big business and community organisations have a crucial role to play,” Manuel implored.
Statistics South Africa conducted a survey of small businesses in March 2001 and estimated that there were 2,3-million owners of at least one non-VAT (value-added tax) registered business in South Africa, which generated a total turnover of R2,617-billion from their main businesses in the month prior to the interview.
The survey aimed to give information on the potential for small businesses to create employment or income-generating activities, and to contribute to the economic growth of the country. — I-Net Bridge