Co-ops and SMMEs urged to tap into R90-million fund
06 March 2017
Co-operatives and small, medium and micro enterprises (SMMEs) were not using the R90-million set aside to help them kick-start or grow their businesses because most did not meet the requirements of Productivity South Africa.
Speaking during an economic opportunities roadshow hosted by the City of Johannesburg’s Economic Development Department at the Protea Glen Library in Soweto on Thursday March 2, Productivity SA Adviser Sivuyile Mdidimba said it was difficult to find SMMEs that met the institute’s requirements.
Mdidimba said many SMMEs did not meet the requirements, which included having offices, employing a minimum of four people, be in a position to produce financial statements and be black-owned. He said SMMEs needed to belong to business organisations and undergo training to be able to meet new challenges. He said Productivity SA had helped many companies in distress and urged the SMMEs to work with his organisation.
“But most of the SMMEs do not meet our criteria, that’s why this R90-million is lying in our account without being utilised by deserving and up-and-coming entrepreneurs,” he said.
The roadshow was part of the City’s mandate to create employment, eradicate poverty, stimulate growth and provide business development by giving support to co-operatives and SMMEs. It’s also in line with the City’s objective of growing Johannesburg’s economy by at least 5% by 2021 as espoused in its new 10-point plan. The roadshow was also addressed by representatives of Bankseta, the Gauteng Department of Agriculture, National Building Housing Regulation Council (NHBRC) and the Gauteng Department of Agriculture.
Malusi Mbusi, Assistant Director in the City’s Economic Development Department, said the roadshow, held under the auspices of the Jozi SMMEs Hub Programme, sought to foster economic growth through business development support to SMMEs to ensure that they were sustainable and embraced opportunities for growth. Shaun Starr of Bankseta said sector education and training authorities (SETAs) would this year train more than 2 000 businesses across South Africa.
“No matter which SME you fall under, you fall under one of the 21 SETAs across the country,” Starr said.
NHBRC’s Caroline Matonyane urged SMMEs and co-operatives in the building industry to be compliant if they wanted to grow their businesses. She said the NHBRC would not allow builders to get away with shoddy work as it was established to protect consumers. Matonyane asked builders to register with her organisation and attend training sessions it offered at no cost.
Jozi Hub Co-ordinator John Mmusi said the hub had seven centres in Johannesburg offering SMMEs the following services:
• Access to business opportunities;
• Relevant business information and resources;
• Referral to quality business development service providers, government resources and financial institutions;
• Free internet access for business and idea generation;
• Business-to-business networking opportunities;
• Access to meeting and training rooms; and
• Funding facilitation.
Ali Sithole, of the City’s Youth Desk, urged the youth to be economically active and strive to be employers rather than be employees. He said they must work with various departments and agencies to develop themselves.
“We help those who want to lift their businesses off the ground and ensure they have business plans. We set them up in our offices to help them run,” Mmusi said.