#Budget2017: SMMEs, co-ops to get R3.9bn three-year windfall

Finance Minister Pravin Gordhan said R3.9 billion would be allocated for SMMEs and cooperatives over the next three financial years. File picture: Tracey Adams

Finance Minister Pravin Gordhan said R3.9 billion would be allocated for SMMEs and cooperatives over the next three financial years. File picture: Tracey Adams

Published Feb 22, 2017

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Parliament – About 2 000 small, medium and micro enterprises (SMMEs) would be provided with financial support to help them become competitive, sustainable, job-creating firms, Finance Minister Pravin Gordhan said on Wednesday.

Tabling the R1.56 trillion 2017 Budget in the National Assembly, Gordhan said R3.9 billion would be allocated for SMMEs and cooperatives over the next three financial years.

The Department of Small Business Development’s total Budget allocation is expected to increase at an annual rate of 7.1 per cent, from R1.2 billion in 2016/17 to R1.6 billion by 2019/20.

“Last year, impetus was given to several initiatives under Mr Jabu Mabuza’s business sector leadership. A fund to support small and medium enterprises has been established,” Gordhan said.

“A youth employment service programme has been initiated with the aim of creating a million work opportunities over the next three years. Strategic interventions to support black participation in agriculture have been developed.”

The Black Business Supplier Development Programme will be responsible for providing financial support to more than 2 000 small and medium-sized firms.

The national informal business upliftment scheme aims to develop more than 5 000 informal businesses and cooperatives through financial and other support.

According to the 2017 Budget Review, this will help improve competitiveness, promote entrepreneurship, advance local content programmes and facilitate market access.

The department, which was established in 2014, plans over the medium term to review the National Small Business Act and develop the National Small Business Amendment Bill.

The bill is expected to include a more accurate definition of a small, medium and micro enterprise, which should allow for the development of more appropriate policy and support interventions.

The bill would also propose recommendations to streamline public entities in the sector to avoid duplication in the support government provides to small businesses.

African News Agency

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