Overcoming Obstacles: The Fight For SMME Survival
Overcoming Obstacles: The Fight For SMME Survival. In a significant step towards empowering Small, Medium, and Micro Enterprises (SMMEs), a recent forum was held in KwaZulu-Natal aimed at developing and growing SMMEs through public-private collaboration. The forum, a programme of the Department of Small Business Development (DSBD), was held in collaboration with the KZN Department of Economic Development, Tourism and Environmental Affairs, Trade Investment KwaZulu-Natal, Ithala Bank and Finfind.
The Forum was established to address the uncoordinated resources and fragmented policy interventions that have hampered access to finance support for SMMEs and cooperatives. The initiative seeks to streamline and synergise efforts to provide more effective support to this crucial sector of the economy.
The forum’s objectives include:
- Identify existing programmes and ensure new ones align to support SMMEs and co-operatives.
- Building synergies among the DSBD and other key stakeholders in the SMME and co-operatives sector.
- Developing a comprehensive database and directory of key stakeholders and support programmes offered to SMMEs.
- Continuously updating this database and directory of key stakeholders and programmes of support.
- Revisiting and revising the common application form and business plan template for use across DFIs and development corporations.
Vijay Valla, Director of the DSBD Funding Support Unit, reinforced the importance of these objectives. He stated, “For the past 30 years, we’ve been talking about integrating SMMEs and cooperatives from historically disadvantaged backgrounds into the mainstream. Despite significant investments, we hear from townships that securing even a R5000 business loan requires a R15,000 business plan. Who is this system truly supporting—SMMEs or intermediaries?”
“Our Development Finance Institution (DFI) criteria seem designed to exclude rather than include those in need. We expect every financed venture to succeed exceptionally, aspiring for outcomes akin to Bill Gates or Steve Jobs. However, development finance should not be driven by fear of failure but by the genuine developmental needs of our people. We are, after all, a developmental state.” he continued.
