Entrepreneurs: Help SAICA And Government Help You!
We have raised the issue in past issues of the importance of small and medium enterprises (SMEs) in the economy. It is globally acknowledged that when SMEs thrive, economic growth and job creation follow.
In South Africa, GDP fell by 0.6% in the first quarter and unemployment is 36.1% amongst the youth. Yet SMEs find themselves confronting issues such as excessive red tape, restrictive labour laws, difficulty in accessing capital without onerous security and the lack of a mentor or incubator programme for fledgling SMEs. South Africa has one of the highest global business failure rates in the SME category – more than 70% fail in their first year.
What is to be done? SAICA
SAICA has just commissioned a comprehensive SME research project to try and understand what is required to make SMEs thrive in South Africa. Many readers will be involved in the SME category and if you haven’t already completed the survey, you can do so by going to this link: https://www.surveymonkey.com/s/SAICA_SME_Research
.
Note: the closing date for the survey is 11 July, and it will take you no more than 15 minutes.
The research will be used to lobby government to take concrete actions to address the concerns of SMEs. SAICA frequently engages government departments and has been successful in lobbying and working with government – for example in 2012 SAICA provided financial managerial assistance to Gauteng municipalities. For another example see “Kudos for our Accounting Profession” below.
In addition to lobbying government, SAICA will be ascertaining if there are any concrete steps or new programmes it can implement to further assist SMEs.
What is to be done? Government
The new cabinet announced last month included the appointment of a Small Business Development Minister – this is a new position in South Africa. It follows ongoing lobbying for this position to be created and the approval of the National Development Plan (NDP) by the cabinet in 2012. The NDP recognises the importance SMEs play in job creation - one of the prime goals of the NDP.
This new cabinet position has been widely welcomed. In recent years, efforts have been made to help SMEs in the form, inter alia, of improved tax breaks, streamlining loan financing and a Department of Trade and Industry business incubator program. However, there is no single clear government focus – this should be rectified by the new Minister and her department.
One area which has been frequently mooted is to give SMEs easier access to government tenders – where expenditure runs at R190 billion annually. This will need to be coupled with better prompt payment terms to SMEs as cash flow is one of the prime reasons for business failure.
Good omens
Overall, the omens look more positive for SMEs. We should do all we can to assist SAICA with their research – as indicated above it is a quick easy process, the Minister has a good track record and there is a good chance she will listen and respond to sensible lobbying which is backed up by good research. Thus, the timing of SAICA’s research is perfect.
What is to be done? SAICA
SAICA has just commissioned a comprehensive SME research project to try and understand what is required to make SMEs thrive in South Africa. Many readers will be involved in the SME category and if you haven’t already completed the survey, you can do so by going to this link: https://www.surveymonkey.com/s/SAICA_SME_Research
.
Note: the closing date for the survey is 11 July, and it will take you no more than 15 minutes.
The research will be used to lobby government to take concrete actions to address the concerns of SMEs. SAICA frequently engages government departments and has been successful in lobbying and working with government – for example in 2012 SAICA provided financial managerial assistance to Gauteng municipalities. For another example see “Kudos for our Accounting Profession” below.
In addition to lobbying government, SAICA will be ascertaining if there are any concrete steps or new programmes it can implement to further assist SMEs.
What is to be done? Government
The new cabinet announced last month included the appointment of a Small Business Development Minister – this is a new position in South Africa. It follows ongoing lobbying for this position to be created and the approval of the National Development Plan (NDP) by the cabinet in 2012. The NDP recognises the importance SMEs play in job creation - one of the prime goals of the NDP.
This new cabinet position has been widely welcomed. In recent years, efforts have been made to help SMEs in the form, inter alia, of improved tax breaks, streamlining loan financing and a Department of Trade and Industry business incubator program. However, there is no single clear government focus – this should be rectified by the new Minister and her department.
One area which has been frequently mooted is to give SMEs easier access to government tenders – where expenditure runs at R190 billion annually. This will need to be coupled with better prompt payment terms to SMEs as cash flow is one of the prime reasons for business failure.
Good omens
Overall, the omens look more positive for SMEs. We should do all we can to assist SAICA with their research – as indicated above it is a quick easy process, the Minister has a good track record and there is a good chance she will listen and respond to sensible lobbying which is backed up by good research. Thus, the timing of SAICA’s research is perfect.
Provided by May and Company
© DotNews. All Rights Reserved.