Small Business Department withholds economic democracy and justice to SMME in South Africa
Small Business cannot expect any long term support from government. Short term emergency crises support seems to be more politically motivated than building a sustainable economy.
This has become abundantly clear that after a 10 year persuasion over both the 5th and 6th administration, The Minister of Small Business and the Department of Small Business have still not appointed the National Small Business Advisory Council as required in the SME act. Hence small business strategy for South Africa is done by persons without business “nous” and a budget which a well funded ministry but and insignificant on matter of research and stakeholder management as revealed in the treasury documents. In fact the budget is skewed to political expediency in an effort to appease constituencies and retain votes that to grow the economy for all. It perpetuates a rigid divide between informal sector and the established sector, a response that ignores the valuable economic advice received by the president to stimulate and enable the osmosis between big and small, build product space and the transmission of technical expertise to the detriment of industrialisation efforts.
So it be will be as long as the Minister Khumbudzo Ntshavheni and the department #DSDB delays appointing the National Small Business advisory Council , they are
1) Denying benefits to small business as required in the constitution
2) Denying economic justice and economic democracy through fascists' leanings
3) They are confirming their total lack of business nous .
4) They retreat unashamedly using instruments of parliament, lawmakers and parliamentary committees who are lame ducks. Government only responds to the language and actions of protest and court cases. Dialogue and consultations are simply government strategies to intercept and contain criticism and protest against its policies."
5) They defend a budget which is more political than a just economic strategy to build a national small business support system
6) They condone an ESD point system that does not support economic development nor SMME but condones Big Business hypocrisy.
7) They perpetuate a culture of low governance in a non-capable administration.
We must conclude government approach to Small Business is more politically expedient than economically wise. Government, an important, stakeholder in the Small Business ecosystem, can be the dominant player assuming to itself a centrist position. Such persistence will delay a National Small Business Support System as public Private Partnership.
South African Small and Medium Enterprises Associations (SASMEA formerly SASMEF) will continue to fight for economic democracy to ensure the growth and sustainability of small Business. To this end we have formed a private sector “Shadow” National Small Business Industry Council comprising of industry associations on behalf of their SMME members to hold government to account.
Issued by:
Carl J Lotter
Chairperson SASMEA
www.sasmea.co.za email: [email protected]; Cell 0728817900