The National Planning Commission’s dialogue sessions with Small, Medium and Micro Enterprises

The South African government’s policy recognises the potential that Small, Medium and Micro Enterprises (SMMEs) can play in job creation and economic growth.

There is further recognition that sustainable SMMEs have a potential to provide multiplier effects on some social issues such as social inclusion, poverty alleviation and equitable access to opportunities in society. It also sets out several ambitious goals for SMMEs, including a target of 90% of new employment opportunities to be created by them by 2030.

The National Development Plan (NDP) clearly states that South Africa must focus on the economic advancement of the poorest South Africans. To eliminate poverty, South Africa has to raise employment which can only happen if growth of the economy is faster and more inclusive so that it allows the historically disadvantaged to earn a decent living.

There is, therefore, a great need in the short term for the economy to create jobs for the unemployed South Africans, many of whom are young and unskilled. This must take place at the same time as upgrading the skills base and knowledge levels for a different economy in future.

The NDP acknowledges that a rapidly growing economy that is diversifying into new sectors will open up opportunities for black-owned firms and smaller businesses, thereby promoting inclusive growth. Small and expanding firms have, therefore, been identified as key to supporting job creation and redressing skewed ownership patterns in South Africa.

The NDP further emphasizes support for small businesses by encouraging government and the private sector to procure from small firms.

To understand the importance and value of SMMEs in South Africa, during March to May 2017, the National Planning Commission will host various dialogue sessions throughout the country. The dialogue sessions are part of the National Planning Commission’s information gathering on the “Limited Success of Entrepreneurial Activity by Locals in Townships and Rural Areas”.

The findings of the dialogue sessions will assist the National Planning Commission to gain deeper insights into the context and challenges faced by township and rural economies. The information gathering will also assist in informing the process for reviewing and assessing existing strategies.

Moreover, the dialogue sessions will play a role in providing direction in the formulation of new strategies to deal with the challenges faced by township and rural SMMEs.

The National Planning Commission is looking forward to interacting with Small, Medium and Micro Enterprises throughout the country.

Source: Government of South Africa