DURBAN - The SME sector - the lifeblood of our economy - has been taking significant strain in the last couple of years according to Karl Westvig the Chief Executive of Retail Capital.
"SME’s have been squeezed by rising costs and lower sales because of over-indebted consumers and a sluggish economy. We would welcome added investment in the SME Sector and lower utility costs," said Westvig.
Government needs to support SME’s through access to finance, a lower regulatory burden and lower electricity and fuel costs.”
The SME sector contributes 36 percent to the national GDP, but with continually rising costs of running a business in South Africa, it’s understandable that many startups and entrepreneurs might need a little help.
There are 2.4 million small and medium-sized enterprises (SMEs) in South Africa that employ around 60 percent to 70 percent of the working population. But this market experiences a dearth of funding, leading to a R86-billion credit gap for small businesses.