The developmental effect of investing in SMEs can be increased by access to finance and providing them with much needed support to enhance their sustainability; appreciating their contribution to the creation and maintenance of jobs and acknowledging the contribution of broadening of the tax base from SME sustainability.
Although it is true that Rome was not built in a day, it is not unreasonable to expect visible progress towards greater inclusion of black and women entrepreneurs, particularly in growth sectors where participation has been limited.
It is estimated that more than 80% of formal businesses in SA are SMEs and that they collectively contribute 50%-60% to GDP. SMEs play a significant role in realising the inclusive growth agenda and their continued development should be encouraged through a favourable policy environment that improves the entrepreneurial ecosystem for SMEs and promotes economic growth in general.
The term entrepreneurship is defined by the willingness to take risks, plan, organise and manage a business venture.
A generation ago, young people only thought of following well-defined career paths. However, the formal sector’s employment opportunities are unable to support the growing number of young people looking for jobs every year.
To promote entrepreneurship as a viable career option, the cultural barriers to entrepreneurship need to be eradicated. The education system must also equip young people with skills required to be successful entrepreneurs.
The government has developed various policy instruments with the objective of achieving an inclusive economy. They have been aggregated within the strategic framework of broad-based black economic empowerment (B-BBEE).