SMALL business owners also have high hopes about the national budget which will be delivered by finance minister Tito Mboweni tomorrow.
It’s not a surprise that last year’s budget did not meet our expectations, which is why we hope the new budget addresses these problems openly and does not disguise them.
Government needs to stop hiding its failures and openly admit its failures. This is the only way it can honestly seek to repair our damaged institutions and broken economy.
Ben Bierman is managing director at Business/Partners Limited, an organisation that views the upcoming national budget speech in light of Mzansi’s struggling economy.
He said the recent state of the nation address was far more realistic than last year’s one but it focused on economic regulations to fix our problems.
“While it has taken some time, the economy definitely seems to be getting a bit healthier, specifically regarding greater policy attention to sectors such as tourism and mining. This is an increasingly clear direction for how government plans to stimulate economic growth for small businesses.”
Bierman said all economic changes have a direct impact on small businesses.
“Small businesses supply big corporations as well as their other clients, both businesses and individuals. This means that they are directly or indirectly involved in government supply chains. But when one client suffers, small businesses suffer too.
“If small businesses are to thrive, all four of these groups need to prosper first.”
Policy wisdom indicates that tax relief has not been the most effective stimulant for small businesses.
“There has been little success to show for tax breaks offered to small businesses. What has helped is commitment to procurement contracts, timely payments, the reduction of red tape and stable critical resources such as electricity from Eskom. These remain constant fixtures on every small business’ wish list.”
Bierman said many entrepreneurs lack the knowledge required to run a business which is why they need support and technical skills training.
