Govt relies on small business to create jobs, Ramaphosa tells industry

President Cyril Ramaphosa has told the small business industry that government relies on the sector for job creation.

 

The president addressed a webinar organised by the Department of Small Business and Development.

 

Ramaphosa said 90% of the formal business sector in South Africa is made of small and medium enterprises.

 

"If we are to achieve the goal of the National Development Plan for SMMEs to create at least 90% of the targeted 11 million new jobs by 2030, we need to pay far closer attention to developing small businesses.

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“The measures put in place to contain the spread of the coronavirus pandemic are measures that we sought to assist those businesses that have been so damaged by the virus.

 

"The Department of Small Business Development, together with the Small Enterprise Finance Agency, reprioritized over R500 million to establish the SMME Debt Relief Scheme. This was to help small businesses stay afloat during this difficult time. It has been reported that, because of the funds paid out under this scheme, over 23,000 jobs were saved.”

 

He said on top of the R200 billion credit guarantee scheme, the department has also established a business viability scheme to help small businesses drive economic recovery.