Press Statement from Nafcoc:
The National African Federated Chamber of Commerce and Industry (NAFCOC) expects the Minister of Finance, Mr Pravin Gordhan to focus on the growth and development of small businesses in his Budget speech on Wednesday 24 February 2016.
In the face of the current economic challenges, NAFCOC calls on the Minister to look at doing away with red tape, and to make sure that the remaining compliance rules are implemented efficiently, with quick turnaround times.
It is our view that the hope of South Africa lies with the small business sector and the Minister of Finance has a perfect opportunity, through the 2016 Budget speech, to halt the escalating economic deterioration by firmly putting the small business agenda in his budget speech.
As a federation of small business organisations with thousands of members all over South Africa, we urge Mr Gordhan to increase the budget of Development Finance Institutions tasked with funding small businesses. He also needs to ensure that National Treasury, with the support other relevant departments such as Department of Small Business Development and DTI, the turnaround time to pay for goods and service provided by small business is quick and on time.
We further propose and expect an increase of tax for High New Worth individuals and companies to finance funding of small businesses and black industrialists in a bid to promote their growth.
Small Business Development Minister Lindiwe Zulu did attribute to the fact that the ripple effect of the crippling economy is being felt the most by small and informal businesses.
The 2016 budget speech should indeed kick start the march of the small business sector from the peripheries to the front lines of economic activity. It should usher an era of radical economic transformation that will create the much needed employment and economic growth.