Government hampers small businesses resulting in less jobs no economic growth

Opinion by FF Plus

Government hampers small businesses resulting in less jobs no economic growth
Government hampers small businesses resulting in less jobs no economic growth

Economic growth is the only thing that can bring about job creation. The small business sector and the development thereof are crucial for establishing growth and simultaneously creating jobs. And yet the government keeps putting obstacle after obstacle in the way of small business development in South Africa.

The government itself cannot start small businesses, it can only create a climate where entrepreneurs who are willing to take the risk can start such businesses, given that it is an environment in which they can be successful and where the government interferes as little as possible, except for the sake of healthy free market initiatives.

It is, thus, imperative for the Department to act in the best interests of small to medium enterprises and to join hands with the Competition Commission to do away with the unfair monopolies that hamper smaller businesses.

Furthermore, it is vital that the Department becomes an advocate for the “Proudly South African” campaign that encourages consumers to buy local products as it will contribute to economic growth.

Another one of those obstacles in the way of small business development is tenders. The system of allowing 90 to 120 days for payment to be made after work was done for government tenders makes things very difficult for businesses that are dependent on cash flow. That is besides the fact that tender fraud is pervasive.

The term government is a collective term and that is why the government comprises all the departments and why it should have one objective, namely to find the best possible solutions for problems on behalf of the people. Small and medium businesses need all the departments to work together so that an environment can be created in which these businesses can grow sustainably.

To do this, service delivery and factors like sustainable power supply and proper infrastructure are of critical importance. Local government must ensure that sewage does not flow past the front doors of businesses, but that the services that businesses are paying for are indeed delivered.

We need decisive action against strikes that are becoming increasingly violent and that prevent the economy from growing because roads are blocked and that hampers the manufacturing of products. This causes great losses for all businesses. Small businesses simply cannot afford this.

Yet another obstacle in the way of business is bureaucratic red tape. There are two massive obstacles, namely Black economic empowerment (BEE) and Affirmative Action (AA), that have a detrimental effect on the economy.

The government must be part of the solution as regards economic growth and not part of the problem, like the ANC government currently is.

The FF Plus salutes all small to medium businesses that are making a contribution to keep South Africa’s economy going, despite the fact that the government is putting so many obstacles in their way.

Read the original article in Afrikaans by Michal Groenewald on FF Plus

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