Thursday, September 27, 2007

Small Business gets R1Bil cash injection

Small business in South Africa stands to receive a cash injection of R1Bil through the IDC. With the SA economy relying on small business to boost employment rates, international investment, exports and of course tax contributions, this investment comes as no surprise and for those who receive it as more than welcome.

Many will agree that investment itself is certainly not enough to answer the prayers of entrepreneurs around the country. What is need is a effective control mechanism through which the money is distributed and results measured. Lets ensure that the money reaches those who it is meant for and fulfill the purpose it was intended for.

The 1Bil mentioned above is certainly not all that goes into smme's. A quick bit of research recently revealed that that:

R83m of the of the Corporate Social Responsibility (CSI) budgets in the 2006/2007 period were used to support industrial innovation by enterprises and R48m was allocated to technology incubators that assist small enterprises to adopt and adapt new technologies. A further R10m was made available for a technology venture capital fund and R6m for the Technology for Women in Business programme.

If you are into these type of statistics I can further tell you that a further R1 billion of the 2006/2007 was given towards Government enterprise development agencies such as Khula, the IDC, Business Partners and the National Empowerment Fund.

The government understandably has been under some real pressure of late (finally) as few entrepreneurs, and the corporations who contribute the money have seen any notable results from these large investments.

Finally this year public outcry lead to new legislation governing the CSI industry with specific focus on effective management of funds and measurement of results created by CSI.

Lets not hold our breath while waiting for this money to come to an entrepreneur near you. Be proactive and assertive in getting the investments your business needs.

My comments follow the recent story in the Business Day

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