Small
business and co-operatives are expected to be central to South Africa’s job
creation efforts, in line with international trends. The National Development
Plan states that about 90% of jobs will be created through small and expanding
companies by 2030. We are convinced that if we are to make an impact on the job
creation front, we have to invest in small and medium businesses because they
are the key drivers of economic growth and job creation. The best investment we
can make is in the area of skills development.
The
sad reality is that South Africa has one of the lowest rates of
entrepreneurship activities in the world. The
Enterprise Development Academy we are launching today must assist us to build a
nation of entrepreneurs.
The
National Development Plan sets an ambitious aim to treble the size of the
economy by 2030, a daunting challenge that will require our collective
contribution. Meeting the NDP’s growth target of 5.4 % for the next 16 years
would not only guarantee South Africa’s material prosperity, but would be an
elevating and inspiring narrative for the country – ‘an optimistic new story’,
as the NDP phrases it.
As
the NDP makes clear, getting South Africa onto a high-growth trajectory demands
that we fundamentally change our game plan and place small businesses and
co-operatives at the centre of our war against poverty, inequality and
unemployment. Developing a strong and growing SME community is a cornerstone of
the NDP’s vision.
South
Africa is a youthful country. The long-term solution to the nation’s
unemployment crisis is to create a nation of entrepreneurs and not a nation of
job-seekers. Empowering young people is not an option, but a national
imperative. Given the current state of youth unemployment in our
country, the question is not whether we should encourage our young people to
look in the direction of entrepreneurship, but rather, can we afford not to? Similarly, we must challenge young people of today to seize
the opportunities created by our democracy in order to create a better life for
themselves and their fellow compatriots.
Acquiring
the much-needed skills will enable young people to occupy the front trenches in
the reconstruction and development of our country. They will become a force for
progressive change and radical economic transformation. Young people must be
empowered to occupy their rightful place as change agents, rather than being
mere spectators in the unfolding story of economic emancipation in our country.
We
remain concerned that small businesses have an exceedingly high failure rate,
and the majority of the casualties are women-owned businesses. Researchers tell
us that the failure rate for new businesses is almost 80% in the first year,
and only about half of those who survive remain in business for the next five
years. We are confident that the Academy will help to reverse this trend
through appropriate research, quality teaching and a relevant curriculum that
responds to the needs of the small business sector.
Part
of the challenge as noted by the academic and research fraternity is the lack
of empirical information about South Africa’s SMEs. This empirical information
will be critical if we are to effectively discharge our mandate to assist the
establishment, growth and sustainability of SMEs and cooperatives. I am
confident that the Gordon’s Institute of Business Science has been grappling
with these issues for some time.
Understanding small and medium enterprises, cooperatives and the policy decisions aimed at
growing this sector requires credible evidence and robust monitoring and
evaluation. We want policy responses that are informed by evidence rather than
interventions that are based on assumptions. We need your expert advice
particularly in the area of regulation, policies, programs and support
mechanisms to advance entrepreneurship. We need you to help us monitor the
impact of our policies and programs particularly on black people, women,
people with disabilities and youth.
I
invite the Gordon’s Institute of Business Science to work with my new
department as we seek to find lasting solutions to the many challenges that
confront us. You must help us answer some of the complex questions facing us.
You must place your expertise at the nation’s disposal and assist us to develop
appropriate interventions that respond effectively and adequately to the needs
of the small business and co-operative sectors.
We
are painfully aware that fostering a culture of entrepreneurship is not
something that blossoms over a short period of time. It takes a long time to
develop and flourish. In other words, if we create awareness today about
entrepreneurship as well as train others to start a business venture, it does
not mean tomorrow all these people would start and run successful enterprises.
We must also be mindful that not every person is destined to become an
entrepreneur.
I
remain convinced that, as a nation, we need to teach entrepreneurship education
from primary school level right through higher education institutions. This
will enable our citizens to consider starting a business as an option instead
of a mindset of looking for a job after finishing high school or graduating at
a higher education institution.
Government
has been rolling out the incubation programme which seeks to develop, grow and
sustain small businesses through the procurement and skills transfer support
from big businesses. We would like to encourage this institution to participate
in this programme. Our experience tells us that the incubation programme
succeeds if linked to knowledge-based institutions that provide technical and
empirical knowledge housed in these institutions.
Send Comments and suggestions to socialmedia@sabc.co.za
No comments:
Post a Comment