Riyaz Patel
President Cyril Ramaphosa has emphasised the importance of South Africans embracing a culture of entrepreneurship, in tandem with efforts to attract R1.2 trillion in investment over the next five years.
“We must look at what needs to be done to promote and encourage the entrepreneurial spirit and an entrepreneurial culture. I have long said that entrepreneurial skills should be included in the basic education curriculum,” Ramaphosa told a gathering of small, medium and micro-sized enterprises (SMMEs) on the last day of the Investment Conference in Soweto.
“Far too often our citizens are risk averse when it comes to entrepreneurship, preferring the so-called comfort of gainful employment to the perceived insecurity that comes with self-employment.”
During his closing address at the second South Africa Investment Conference in Sandton Tuesday, the President announced a series of policy and legislative interventions to remove barriers hampering small business growth.
Ultimately, Ramaphosa said, government wants to transform the paradigm and nurture a generation of job creators as opposed to job seekers.
“International experience, especially in other developing countries, shows us that economic growth is sustained through small businesses.”
He added that his recent engagements with the sector have highlighted a myriad of challenges that stifle growth and sustainability.
“Concerns have been raised by SMME owners and operators around access to financing, late payment for services rendered to government, a high regulatory burden, lack of access to information, economic infrastructure and rising fuel and utility costs, among other things.
“As I said in the State of the Nation Address earlier this year, it is government’s priority to give greater support to the SMME sector.”
President Ramaphosa said working with social partners, government remains committed to improving the legal and regulatory environment, ensuring access to markets and finance, skills training and access to quality infrastructure for SMMEs, especially in townships and rural areas.
The President said it was important for the country to show confidence to investors who want to put their capital in the country’s SMMEs by growing the sector and improving its viability.
“We would like to issue a call to our friends from the global investor community to support SMMEs when it comes to procuring goods and services as part of the projects that will result from the commitments made at the Investment Conference,” Ramaphosa said.
“Under the soon to be finalised Public Procurement Bill, organs of state will be required to sub-contract SMMEs to a minimum of 30% of the value of the contract for contracts that are above R30 million.”
“Whoever receives a tender must sub-contract a minimum of 30% of the value of the contract to SMMEs that are at least 51% black owned.”
