In February’s State of the Nation Address, President Cyril Ramaphosa said government will focus on expanding the small business incubation programme. As part of this, promising entrepreneurs get access to the right support and resources such as business technologies training, access to finance, network links as well as actual space with shared services and connectivity.
Currently, the small business incubation programme is made up of 51 technology business incubators, 10 enterprise supplier development incubators and 14 rapid youth incubators. In the Budget Speech, Finance Minister Tito Mboweni said that R481.6m will be allocated to the Small Enterprise Development Agency to expand the small business incubation programme.
According to Xero’s report on the state of small business, 85% of entrepreneurs fund their own businesses. Not everyone is in a position to self-fund their business and this prohibits entrepreneurial activity, pushing people to look for work in the traditional job markets. So, this is a step in the right direction in fueling growth
Tapping into technology
The impact of globalisation is increasingly prevalent; South Africa is subject to global market forces, technology trends and growing competition. How companies operate is changing fast – and small businesses need to stay up to date to stay relevant.
New technologies such as automation are having a rapid impact on the world of work. Minister Mboweni spoke of the need to prepare the country for digital transformation. The long-term plan includes a focus on education, with a specific focus on subjects like maths and science.
To help fast-track our country’s digital business expertise, Minister Mboweni mentioned an ambitious FinTech programme, driven by the Governor of the South African Reserve Bank and colleagues from the other financial-sector regulators. For SA’s small businesses, we know that adopting the right tools can significantly boost their productivity and profitability.
Cloud technology can give SMEs the support they need to do fast, smart business; enabling them to set ambitious growth targets and hit them.
There’s no sugar-coating it; South Africa has a tough economic road ahead. But, to echo both President Ramaphosa and Minister Mboweni, we can do it if we acknowledge our collective responsibility and all work together. For small businesses the message is clear: government recognises you and is going to do more to support you. But government support is not the only available helping hand: proactive entrepreneurs who use tech to boost their businesses stand a great chance to achieve growth and success – both here and perhaps globally too.