‘SMMEs must become the backbone of the economy’

The National Development Plan (NDP) required 90% of the jobs that need to be created by 2030 to come from small‚ medium and micro-sized enterprises (SMMEs)‚ and for this radical transformation was needed‚ Minister of Small Business Development Lindiwe Zulu said.

Addressing the Future of Empowerment Conference held at Gallagher Convention Centre‚ Midrand on Wednesday‚ Zulu was unequivocal‚ “working alone we will never realise the mission of SMMES becoming the backbone of the economy - it is important government works and harmonises at levels - agencies‚ departments and ministerial levels - to leverage private sector support”.

“We are working with the departments of Social Development‚ Public Works‚ Forestry and Fisheries‚ Energy‚ Defence and Science and Technology‚ amongst others‚ to create opportunities for the growth and development of SMMES across sectors.”

The growth of the SMME sector required focus on three elements: public sector procurement‚ regulation and access to finance.

The changes in the broad-based black economic empowerment codes stemmed directly from the NDP‚ and had resulted in pressure on large enterprises to deliver a minimum of 40% target in the following areas: procurement‚ supplier development and enterprise development - to facilitate the growth of SMMES.

If this did not happen‚ scorecard accreditation would be affected. Large enterprises had already been engaging with the department to achieve this‚ Zulu said.

RDM News Wire.