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.

Outlines

00:00

🚀 Challenges and Solutions for SME Growth

The second day of the Sustainable Summit in Johannesburg focused on the growth and development of Small and Medium Enterprises (SMEs). It was highlighted that a lack of information on available services is a significant barrier to SME growth. Research indicates that over 70% of new businesses fail within two years, and Yamaha MacArthur, Director of SME Foundations, emphasized that access to information is crucial to improving these statistics. Entrepreneurs often face challenges such as a lack of knowledge about support mechanisms established by the government and difficulties in accessing markets and dealing with bureaucratic red tape. The summit aimed to address these issues to help SMEs contribute more effectively to economic growth and job creation. Despite the national development plan's vision that 90% of jobs will come from the SME sector by 2030, current data shows that SMEs in the country have only created 28% of jobs, which is lower compared to the international average of 60-70%. This calls for increased assistance to SMEs to enhance their growth and employment potential.

Keywords

💡Entrepreneurs

Entrepreneurs are individuals who start and run their own businesses, often taking on financial risks in the hope of profit. In the context of the video, entrepreneurs are central to the discussion as they are seen as drivers of economic growth and job creation. The script mentions that a lack of information and support systems is one of the main challenges faced by entrepreneurs, which hinders the growth of small businesses.

💡SMEs (Small and Medium Enterprises)

SMEs are businesses that fall below certain size criteria in terms of number of employees, annual sales, or capital. They are highlighted in the video as catalysts for economic growth and job creation. The summit discussed aims to promote the growth and development of SMEs, emphasizing their importance in the economy despite the challenges they face.

💡Sustainable Summit

A sustainable summit, as mentioned in the script, is a conference or meeting focused on sustainable development and growth. In this case, the summit in Johannesburg is specifically aimed at promoting growth and development of SMEs, which aligns with broader goals of sustainable economic development.

💡Economic Growth

Economic growth refers to the increase in the production of goods and services by an economy over time. The video script emphasizes the role of SMEs in driving economic growth, as they are seen as key contributors to the economy's expansion and vitality.

💡Job Creation

Job creation is the process of generating new employment opportunities. The script discusses how SMEs are crucial for job creation, with the national development plan envisioning that 90% of jobs will come from the SME sector by 2030. However, the current statistics show that SMEs are underperforming in this area, creating only 28% of jobs.

💡Institutional Mechanisms

Institutional mechanisms refer to the systems, policies, and organizations put in place by the government to support various sectors of the economy. The script mentions that the government has established such mechanisms to support entrepreneurship, but many entrepreneurs are unaware of their existence or the benefits they can receive.

💡Access to Information

Access to information is the ability to obtain and use knowledge, data, and other resources. The script underscores the importance of access to information for entrepreneurs, as it is critical for their businesses' success. The lack of such access is identified as a significant barrier to growth.

💡Access to Markets

Access to markets refers to the ability of businesses to reach potential customers and sell their products or services. The script cites a lack of access to markets as a challenge for entrepreneurs, which can limit their growth and ability to compete.

💡Red Tape

Red tape refers to excessive bureaucracy or繁琐的行政程序 that can hinder or slow down business activities. In the script, entrepreneurs attending the summit mention red tape as an impediment to growth, particularly in terms of the costs and complexities associated with obtaining licenses and other regulatory requirements.

💡National Development Plan

A national development plan is a strategic document that outlines a country's long-term goals and strategies for economic and social development. The script references the national development plan, which envisions a future where SMEs play a significant role in job creation by 2030.

💡Diabo 0s, ABC News Johannesburg

This refers to the reporter or news outlet that covered the summit in Johannesburg. While not a central concept, it provides context for the source of the information presented in the script, indicating that the news is being reported by a credible media entity.

Highlights

Lack of information on available services is a major impediment for small businesses' growth.

Sustainable summit in Johannesburg aimed at promoting SME growth and development.

SMEs identified as catalysts for economic growth and job creation.

Over 70% of new businesses fail within two years due to lack of information.

SME Foundation's Director, Yamaha MacArthur, emphasizes the critical role of information access.

Government has established mechanisms to support entrepreneurship, but awareness is low.

Entrepreneurs face challenges in accessing markets and dealing with red tape.

Market penetration and visibility to potential customers are significant concerns for entrepreneurs.

Red tape, such as licensing, is costly and burdensome for small businesses.

Employment in the second quarter reached its highest level in 11 years at 29 percent.

National Development Plan envisions SMEs creating 90% of jobs by 2030.

Internationally, small businesses create between 60% and 70% of jobs, compared to 28% locally.

Assistance is needed for small businesses to grow and employ more people.

Diabo 0s, ABC News Johannesburg, reports on the summit's findings.

Transcripts

lack of information available rather on

available services to help entrepreneurs

is one over the impediments affecting

the growth of small businesses thus

emerged at the second day of the SMM is

a sustainable summit that took place in

Johannesburg the summit is aimed at

promoting growth and development of SMEs

and also to help them contribute to

economic growth and job creation small

businesses have been identified as

catalysts for economic growth and job

creation but various research such as

that more than 70% of new businesses

fail in less than two years of being

established director SME foundations

Yamaha MacArthur says access to

information is critical to turning these

stats around MacArthur says failure to

do this leads to prospects of little or

no growth one of the biggest challenges

that entrepreneurs encounter is not

knowing where to go to receive what kind

of support government has set up a

number of institutional mechanisms to

support the growth of entrepreneurship

in the country but you still find that

most entrepreneurs don't know even about

the existence of these entities let

alone the products that they can receive

from these entities entrepreneurs

attending the summit also cited a lack

of access to markets and red tape as

other impediments to growth the

challenge became in a sense of how do we

penetrate through markets and also how

do we tend to make our visible to

potential customers or potential

potential clients out there now that

came to my mind as a visitor problem

which I see many whom I'm starting

businesses or enterprises there's a

whole lot of red tape like a small

company like ours you need to get your

license and all those things and it's

expensive but what can we do this weeks

that Sesay announced that an employment

in the second quarter of the year rose

to its highest level in 11 years at 29

percent the national development plan

envisions that by 2030 90 percent of

jobs will come from the SME sector but

studies on this sector in the country

show that small businesses created only

28% of jobs this is low when you compare

them to small businesses internationally

who have created between

see and 70% of jobs this calls for small

businesses to be assisted so that they

can grow and employ more people diabo 0s

ABC News Johannesburg