Photo by: Bloomberg
As Proudly South Africa (SA) moves to encourage local procurement to bolster small and medium-sized enterprises (SMEs), the newly established Department of Small Business Development (DSBD) aims to boost these enterprises’ contribution to gross domestic product (GDP) by up to 50% in the next decade.
Speaking at the fourth Proudly SA Buy Local Summit and Expo, held in Sandton, on Tuesday, DSBD acting director-general Pumla Ncapayi stated that a “healthy” SME sector contributed significantly to the GDP of a country.
South Africa’s government aimed to increase its own SME sector’s contribution to GDP from the current 35% to between 60% and 80% in the next 10 to 15 years.
With SME’s accounting for 90% of jobs created in 2013, and seen as a vehicle for economic gains, the DSBD would continue to work to create an inclusive economy for small business to thrive.
“We recognise the importance of SMEs to deal with the challenges of job creation, economic growth and equity in South Africa,” Ncapayi said, reiterating plans to partner with other government departments and larger businesses to support the development of small business.
Government aimed to procure 30% from SMEs, particularly those in far-flung regions, rural areas and townships, enabling entrepreneurs and firms to access opportunities as never before.