President Cyril Ramaphosa has stated during his State of the Nation Address that for the country to build a more inclusive economy, it is pivotal to grow youth- and women-orientated small, medium and micro enterprises (SMMEs).
Ramaphosa pointed out that it would be the drive and the vision of his government to create more opportunities for the youth and women-led businesses.
Growing small and medium businesses
“If every small and medium business in South Africa could employ one additional person, we would create three million new jobs. But many of these businesses, a number of which are owned by women and young people, cannot get funding to start or to grow. Many struggle to find markets for their goods and services.
“And nearly all small and medium enterprises have to contend with a multitude of regulations, by-laws, licensing requirements and bureaucratic hurdles. We take seriously the public comments on the draft Business Licensing Bill and will ensure that the final Bill makes it easier, not harder, to start and run a small business in South Africa,” said Ramaphosa.
He said that the government will this year provide more than R2.5-billion in funding to over 180, 000 small and medium enterprises, some of which are young and women-led. And to top it up, the government will extend a further R1-billion in guarantees.
“Naturally we will seek to also focus on women- and youth-led businesses to foster their empowerment. And we will amend the National Credit Act regulations to make it easier to access credit at a lower cost.
Economic transformation
“The transformation of our economy is necessary to drive sustained growth, reduce inequality and correct the injustices of the past. We are undertaking a review to refine, realign and strengthen our Broad-Based Black Economic Empowerment framework. To ensure that it supports greater transformation and inclusive growth.
“All of these actions will create a stronger economy and fix the foundations that were broken. It is a matter of national concern that too many South Africans remain unemployed and too many young people struggle to find their first job. That is why, as we rebuild the economy, we are creating work and livelihood opportunities on a large scale through public and social employment programmes,” said Ramaphosa.
Ramaphosa also stated that the SA Youth platform, a data-free national network that connects young South Africans to earning and learning opportunities, has provided millions of young people with access to work and learning opportunities for the first time. He added that the Youth Employment Service, which is a partnership between business and government, has also placed over 200, 000 young people in year-long work experience opportunities.
Focus on youth empowerment
“This year, we will introduce regulatory changes that will make it much easier for businesses to participate in the Youth Employment Service and create jobs for young people.
“In the coming year, we will expand our public employment programmes. These include the Community Works Programme, EPWP and the Presidential Employment Stimulus. We will ensure they are better coordinated to provide income support, skills development and pathways into longer-term work. Particularly for young people and women.
“To ensure that no one is left behind, we are implementing a decision to increase employment equity targets of persons with disabilities in the public service to 7% by 2030. And to mandate an 8% preferential procurement target across all government and public entities. Above all, however, a strong economy relies on a well-educated, capable and skilled population,” he said.
