While at odds on the specific make-up of government’s proposed new small business Ministry, panellists at the Manufacturing Indaba on Tuesday largely concurred that there was a need for the creation of a dedicated national promotion agency for the small-business sector, which had been pegged as a key driver of development-based economic growth.

Shortly after securing a majority at the 2014 national elections earlier this month, the African National Congress (ANC) intimated that it would look at reshuffling the existing setup of its various departments, investigating the possible creation of a department dedicated solely to the promotion, management and support of small and medium-sized enterprises (SMEs).

But, while business was largely in support of the proposed industry body, Deloitte partner Roy Campbell cautioned that government should not be held exclusively responsible for its management and related policy formulation.

“While I support the development of a small business Ministry, business and labour have the tendency to delegate [a lot] to government,” he commented.

Iterating this position, Automotive Industry Development Centre industry development executive Dineshan Moodley said the envisaged Ministry should not be established in the manner of a silo and must be facilitated through a private–public partnership.

“It can’t be government's or business’ sole responsibility, so a partnership is the ideal configuration,” he remarked, adding that the Ministry would have to be designed using a model that incorporated both public- and private-sector interests.

It could potentially be funded through a 50:50 joint venture between government and business, ensuring equal buy-in by both parties.

Elaborating on the possible structure of the Ministry, Productivity South Africa value-chain competitiveness executive manager Sello Mosai suggested that, while the body could initially be managed by government, this should not be permanent and, once it was “up and running,” should adopt a model similar to that of the Small Enterprise Development Agency.

“It could also [develop] into an incubation-type or quasi-private organisation,” he noted.

Meanwhile, multinational power and automation group ABB director of government relations in Southern and Central Africa Nthabiseng Dube added that, while business should take the lead in terms of the management of the Ministry, government would have to be “part and parcel” of the decision-making process.

“Business and government have got to get messy together. This whole idea of government and business looking at each other with suspicion and not being able to get together makes the country slow and is something we need to learn from our neighbours. We need to work together. If we read from the same hymn book, we can be a catalyst for success,” she averred.

Engineering News Online last month quoted ANC secretary general Gwede Mantashe as saying that government had hoped to take a final decision on the establishment of the Ministry shortly after the May 7 election.

“If we can have a standalone Ministry focusing on SMEs, it can also unlock the impact of the institution that should provide funding to those small businesses. It will also be much easier for SMEs and government to engage on important issues affecting the economy,” he said.

“We believe SMEs need particular attention. They need to know that small is not a destination, it’s a stage in development, and people need to be facilitated out of small to big,” Mantashe had said.