How SA Government Can Create A More Enabling Environment For SME’s!

How SA Government Can Create A More Enabling Environment For SME’s! Small businesses play a crucial and viable role within the economic sphere in South Africa. The government is already doing a fair amount of great work in creating structures around small businesses in South Africa. Especially with regards to the formation of the Department of Small Business Development in the year 2014.

However, over the years the objectives of this initiative were not properly implemented, which resulted in the stagnation of quite a number of lined up projects. Few small business owners have previously lamented at the government for not doing enough to reach out to them at ground level.

More Funding Mechanisms:

Due to corrupt facilitators in the department, the funds that were scheduled for specific outcomes do not always reach the entrepreneurs. Most start-ups are self-funded, and in order for the business to reach its full potential more capital boost is needed. However, with the lack of proper structures around funding, many entrepreneurs might find themselves scaling back to the job market or pursuing extreme measures to keep the business going, which runs the risk of eventually shutting down completely. This might result in the shrinkage in the pool of entrepreneurs in South Africa.

Transparency:

Unprofessional dealings and unclear compliance requirements within the department remain a thorny subject for many entrepreneurs. The rules and requirements are perfectly understood by the entrepreneurs; however, the manner in which the communication or general assistance is carried out is baffling and disheartening. Therefore all unnecessary procedures should be done away with hence it hinders the growth of entrepreneurs and dilutes the well-meaning structures in the department of Small Business Development.

Education:

Quality education serves as an impeccable investment for any aspiring business owner. There are numerous methods and implementation strategies that the government could pursue.

(I). Traditional Schooling System:

Bursaries that are purely fixated in offering opportunities to study a business related course at any tertiary institution should be prioritised by the government. This move will propel aspiring entrepreneurs’ access to quality education, thus sustaining them in their business ventures.

(ii). Workshops:

Short workshops could possibly be what some entrepreneurs need to get their foot in the door. This programme should be aimed at emerging entrepreneurs or the bursary scheme alumni’s, who are a minute away from securing solid funding for their businesses. In so doing, the business sector will be led by highly skilled and competent workers.