THE national budget speech last week shone a spotlight on a critical element of Mzansi’s economy: small businesses.
Many welcomed finance minister Tito Mboweni when he spoke about the importance of small businesses in helping our country out of its economic problems.
The twin problems of a shrinking economy and growing unemployment are a ticking time bomb that’s ready to explode!
These were the words of Baneng Naape, a postgraduate student at Wits University.
“What is frustrating is that we all agree – government included – that small businesses are the first step to solving the unemployment problem. But the question is: how serious are we about following up with tangible tax funding?”
Naape won the R150 000 top prize in the Nedbank and Old Mutual Budget speech competition. The students debated the national budget and were interviewed on their submitted essays.
In his essay, Naape wrote that financial markets, businesses and their employees, media and elected bodies all play a role in government’s spending decisions.
“Fiscal policy should be realistic, achievable, responsible and transparent. It must include macro-economic policies that produce predictable returns but it should also provide a reasonable amount of protection against mistakes,” he said.
Mboweni said opportunities would open up for small business if the cost of data fell.
If data was cheaper, more entrepreneurs could find opportunities to build a business in the technology market. Affordable data would drive economic growth.
Relaxing visa requirements means businesses will have more opportunities in tourism.
Mboweni set aside R3,2 billion to boost the operating capacity of small businesses and innovation funding. Naape said the money must be used properly to make sure it brings about the results for which it was designed.
“The time for making promises without keeping them is over. Government must deliver on all it has promised or we will suffer.”
