Johannesburg - Small business is critical for the stimulation of inclusive economic growth, according to Finance Minister Malusi Gigaba, who also stressed the importance of creating additional support mechanisms.
In order to achieve these objectives, various initiatives are underway between National Treasury and the Department of Small Business Development. According to Minister of Small Business Development Lindiwe Zulu, in her recent budget vote speech, government is looking to support small businesses across various departments, agencies and municipalities with an allocation of R15bn.
It is in this context that small business incubators created a platform for the discussion of Small, Medium and Micro-sized Enterprises (SMMEs) growth and LEAP (Lean Enterprise Acceleration Programmes), a leading business accelerator in the country, prepares to host the WorleyParsons Supplier Grow Conference.
READ: Junk status signals hard times for small business
The event will be targeted at the construction and mining industry.
Petra Rees, managing director of LEAP, which provides support to small business, which is integral to creating more sustainable upstarts in the country, said one of the key reasons for such a high failure rate was that SMMEs lacked the necessary business skills and experience an entrepreneur should have.
“When I finished my MBA I thought that I had the recipe for being a successful entrepreneur. Despite that my first business was far from successful and this is something we see coming out in our business acceleration programmes over and over again. It’s the combination of having the business knowledge but most importantly the experience that makes or breaks a business,” she told Fin24.
The conference which takes place on July 14 will feature prominent businessman, author and entrepreneur Vusi Thembekwayo, as keynote speaker.
As a member of the Speakers Association of New York, Thembekwayo was ranked 1st in Africa for public speaking by age 20 and is the youngest JSE director in the country.
Rees said that there is still not enough of real and impactful partnering and collaborative initiatives in SA between big corporates and small business.
“These are critical not only for transferring skills but most importantly for stimulating demand, building trust and addressing issues like innovation and delivery,” Rees told Fin24.
Gigaba reiterated in his address that government wanted to see big and small businesses expand as part of the focus to grow the economy.
“We want industries to transform, it is a core aspect of our nation’s development,” he said.
READ: SA's entrepreneurial environment tops Russia, Mexico, Brazil
South Africa is reported to have better conditions for entrepreneurship than 20 countries that have higher per capita GDP, including Russia, Mexico, Brazil and Thailand.
This research by the SAB Foundation and Allan Gray Orbis Foundation shows, however, 2 out of 10 start-ups make it.
Rees added that focusing on simulating scenarios, having highly skilled professionals from the industry sharing their experiences and forcing entrepreneurs to think beyond their comfort zone, are the key ingredients to successful acceleration programmes.
LEAP together with WorleyParsons have set-up the conference as a platform of its Enterprise & Supplier Development Programme.
READ: R1m boost for SA craft e-commerce
One of the focuses of the conference is where key decision makers from the mining and construction industry have the opportunity to meet, innovative and to discuss key issues around supply chain opportunities and challenges.
“It is the perfect platform for all the players to voice concerns, learn from one another and discuss how to work together to create demand in these tough economic times,” Rees said.
The event is taking place at Melrose Arch and SMMEs who may be interested to apply to attend this conference can go to www.south32intsika.net and register.
Read Fin24's top stories trending on Twitter: