Mkhize: SME's will be the driving force of the economy
DURBAN - Dr Zweli Mkhize, ANC Treasurer General, spoke at the AHI SME Indaba where he discussed SME’s being the driving force of the South African economy.
Mkhize highlighted the main issue is the growth of the economy, the second issue is job creation both of which the SMEs (small to medium sized enterprises) play an important part.
Driving small businesses and ensuring their success will help the South African economy.
SME’s contribution to the South African GDP accounts between 52%, they hope the contribution will increase to 90% in the future.
However SME’s have many challenges ahead that need to be resolved, to ensure that they can play an integral part in the improvement of the SA economy.
One of the biggest challenges that SME’s face is the 30 day invoice, which meant that government would pay creditors within 30 days of receipt of invoice.
According to Mkhize some businesses lost money because they were waiting for government to pay them.
Within that issues lies the issue of corruption, where businesses may send a brown envelope or their invoice would be lost.
The need for a clean government was recognised where government needs to be transparent and corruption should not be tolerated.
Some of the other issues is the lack of black, female, and youth entrepreneurs. Creating that entrepreneurship will allow those demographics to move from a space of unemployment to a place of empowerment.
Another issue that was highlighted was the lack of institutions to help and support SME's and although AHI is one organisation that is fulfilling that need, there is a need for others to support the small business sector.
The ANC Treasurer General said that SME’s need to be the focus now and called on government to support that sector.
He further added that small businesses will be a pillar of growth and will help to deal with inequality.
Mkhize was one of the key note speakers at the event. AHI is a company that is known for supporting small businesses and Dr Zweli MKhize is an honourary member of the AHI.
-BUSINESS REPORT ONLINE