Lack of information impacts on growth of small businesses

Summary

The Sustainable Summit in Johannesburg highlighted the challenges faced by small businesses, including lack of information and access to support services, which hinder their growth and contribution to economic development. Despite government initiatives, entrepreneurs often remain unaware of available assistance. Other obstacles include limited market access and bureaucratic red tape. The summit emphasized the need for better support to help SMEs create more jobs, aligning with the national development plan's goal for SMEs to generate 90% of jobs by 2030.

Takeaways

• 📈 The Sustainable Summit in Johannesburg aims to foster the growth and development of SMEs, highlighting their role in economic growth and job creation.
• 🚧 A significant barrier to SME growth is the lack of information on available services to assist entrepreneurs, which can lead to a high failure rate within the first two years of operation.
• 🗂️ Director of SME Foundations, Yamaha MacArthur, emphasizes the critical need for entrepreneurs to have access to information to improve business outcomes.
• 🏢 Despite the establishment of government mechanisms to support entrepreneurship, many entrepreneurs remain unaware of these resources and the assistance they offer.
• 🛑 Entrepreneurs at the summit identified limited market access and bureaucratic red tape as additional growth impediments.
• 📉 The national development plan targets SMEs to generate 90% of jobs by 2030, but current local SMEs only contribute to 28% of job creation, indicating a need for support and intervention.
• 🌐 The challenge for entrepreneurs is to penetrate markets and increase visibility to attract potential customers and clients.
• 📊 Internationally, small businesses are known to create between 60% and 70% of jobs, whereas local small businesses lag behind at only 28%.
• 📈 The recent employment rate in the second quarter of the year reached its highest in 11 years at 29 percent, indicating a positive trend that could be further bolstered by SME growth.
• 💡 The summit serves as a call to action for SMEs to seek assistance, innovate, and expand to meet the job creation goals set by the national development plan.

Q & A

What was the main focus of the Sustainable Summit held in Johannesburg?

The main focus of the Sustainable Summit was to promote the growth and development of SMEs and to help them contribute to economic growth and job creation.

Why are small businesses considered important for economic growth and job creation?

Small businesses are considered important because they have been identified as catalysts for economic growth and job creation, playing a significant role in driving the economy forward.

What percentage of new businesses fail within two years according to the research mentioned in the script?

According to the research mentioned, more than 70% of new businesses fail within less than two years of being established.

What does Yamaha MacArthur, the director of SME Foundations, say is critical to improving the success rate of small businesses?

Yamaha MacArthur states that access to information is critical to turning the high failure rates of small businesses around.

What challenges do entrepreneurs face in accessing support from government institutions according to the script?

Entrepreneurs face challenges such as not knowing where to go to receive support and being unaware of the existence of government entities and the products they offer.

What other impediments to growth were cited by entrepreneurs attending the summit besides lack of information?

In addition to lack of information, entrepreneurs also cited a lack of access to markets and red tape as other impediments to growth.

How does the challenge of market penetration and visibility affect small businesses as per the summit discussions?

The challenge of market penetration and visibility affects small businesses by making it difficult for them to reach potential customers and clients, which is crucial for their growth and success.

What was the employment rate in the second quarter of the year as announced by Sesay?

The employment rate in the second quarter of the year rose to its highest level in 11 years at 29 percent, as announced by Sesay.

What is the national development plan's vision for job creation from the SME sector by 2030?

The national development plan envisions that by 2030, 90 percent of jobs will come from the SME sector.

How does the job creation rate of small businesses in the country compare to international figures?

Small businesses in the country created only 28% of jobs, which is low compared to small businesses internationally who have created between 50% and 70% of jobs.

What does the low job creation rate of small businesses indicate for their future assistance needs?

The low job creation rate indicates that small businesses need to be assisted so that they can grow and employ more people, aligning with the national development plan's vision.