Small Business Institute overlooked in EFF manifesto
CEO of the Small Business Institute, John Dludlu says small businesses don’t get enough support from government and the media.
The CEO of the Small Business Institute, John Dludlu, says he’s disappointed that the Economic Freedom Fighter’s (EFF) political manifesto did not include a chapter on the economy and the development of small businesses.
He said, instead, the party chose to anchor its manifesto around job creation, land redistribution without compensation, and load shedding. He said the EFF would end the power crisis in six months if the EFF were voted in as the majority party.
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NO MENTION OF SMME’S IN EFF MANIFESTO: DLUDLU
“I was very disappointed about two things for a party that calls itself the economic freedom fighters: there is no chapter in the manifesto on the economy, and then there is obviously no dedicated focus on small businesses,” Dludlu said.
He said the Ministry of Small Business Development, set up in 2014 to help Small Micro and Medium Enterprises (SMMEs) and stimulate job creation, had yet to deliver tangible results a decade later.
‘90% OF OUR BUSINESS ARE SMALL MICRO SURVIVALISTS’
“10 years later, we don’t think much has been achieved, but we just don’t see in the eff Manifesto a clear intention that accepts the first thing that 90% of our businesses in South Africa are not big businesses, they are small micro survivalists.”
“They medium-sized Enterprises not listed on the JP Stock Exchange and then of course you’ve got this 10% which is which receives all the attention by the media it is made up of state-owned Enterprises government departments organs of state,” said Dlulu.
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RED TAPE: A BURDEN FOR SMME’S
One of the biggest obstacles SMMEs face is the red tape and regulatory burdens that frustrate business owners. Ten years ago, SMMEs contributed 25 percent of total business turnover, with large enterprises contributing the rest.
By 2021, the contribution of SMMEs had increased to 33 percent of business turnover. According to government statements, 29 pieces of legislation that create regulatory impediments for small businesses have been identified.