Small businesses fail because government doesn’t pay on time: Manamela

02 July 2015 - 17:27 By RDM News Wire

Government can‚ in the next few years‚ “mentor‚ create and encourage” at least 1-million young entrepreneurs‚ deputy minster in the Presidency Buti Manamela boasted on Wednesday. But one of the major obstacles in the way of this target‚ Manamela admitted during an address at Stellenbosch University‚ was government itself.Small businesses - which he said “have contributed more than 40% of the country’s employment rate” – often fail because of government’s tardiness in settling debts with them.He told academics and media that “a unit that has been set-up in the Presidency focusing specifically on ensuring that small businesses are paid on time”.This is one of the interventions needed because‚ Manamela said‚ “we think that the rush for creation of jobs may not have necessarily yielded the result that we wanted”.“We have also seen that over the last few years there has been more jobs yielded from interventions in youth enterprises‚” he said.“In the next two years‚ with the department of higher education‚ we will be launching the Co-operatives Institute as a way of intervening and encouraging young people to enter into small businesses and encouraging innovation amongst young people‚” Manamela said.“We believe that we can in the next few years mentor‚ create and encourage at least 1 million young entrepreneurs. We think that this would make a huge impact.”..

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