House Chair, the ACDP has taken note of this Report of the Portfolio Committee on Small Business Development which emphasises underspending on enterprise support programmes whilst administrative costs remain disproportionately high, raising concerns about whether resources are, in fact, reaching entrepreneurs at grassroots level.
Over the past year, press coverage has pointed to frustrations among small business owners who struggle to access funding despite budget allocations. A Mail & Guardian article notes “small businesses left waiting as SEFA loan delays stall growth.” It further notes: “…entrepreneurs complain that loan approvals take months, with disbursements delayed further, eroding trust in government’s promise of support”.
Social media commentary has also echoed these concerns, with entrepreneurs lamenting red tape and slow turnaround times. The proposed Business Licensing Bill will add to this red tape and really needs to be considered very carefully as it will have a devastating impact on small and informal businesses who are already struggling and will have, again, a destructive impact on our economy as a whole.
The ACDP has consistently argued that small businesses are the lifeblood of our economy and should be treated as such, and such a bill needs to be reconsidered.
As Kingdom-builders, the ACDP calls for all departments to ensure that every rand allocated to small business development translates into real opportunities. When entrepreneurs thrive, our economies prosper, South Africa’s economy grows, and jobs are created.
The ACDP will support this report.
I thank you.
