Paying small businesses and cooperatives on time is critical to the sustainability of these enterprises, which, if their potential is properly harnessed, can become an effective instrument of economic inclusion and to overcome poverty, unemployment and inequality.

As such, the Department of Small Business Development would work with the Department of Planning, Monitoring and Evaluation, as well as the National Treasury, to ensure that busi-nesses received payment for goods and services delivered to government within 30 days.

In a media briefing prior to her Budget Vote, Small Business Development Minister Lindiwe Zulu pointed out that difficulties in accessing financing were another major obstacle to the development and growth of small businesses and cooperatives.

“We are overhauling our approach to funding to ensure that it is in line with the principles and tenets of a developmental stage. The migration of the Small Enterprise Finance Agency to the department gives us an opportunity to respond to the specific needs of small businesses and cooperatives in a coordinated way.

“We will develop a business rescue strategy aimed at supporting small to medium-sized enterprises (SMMEs) and cooperatives in financial distress. We will also announce tailor-made funding instruments for enterprises owned by women and youth,” she said.

The Ministry also aimed to fast-track the implementation of the National Informal Business Upliftment Strategy to drive government’s support of township and rural enterprises.

Government had further set aside 30% of appropriate categories of State procurement to be spent with SMMEs, cooperatives, and township and rural enterprises.

Zulu, meanwhile, pointed out that the department would intensify its Red Tape Reduction Programme. “Among other things, we will work with local government on the review of by-laws affecting SMMEs and cooperatives,” she added.
The department will also start implementing its Gazelles programme, which seeks to identify and strengthen high-growth enterprises.