Lack of information impacts on growth of small businesses
Summary
TLDRThe 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
- π The Sustainable Summit in Johannesburg aims to foster the growth and development of SMEs, highlighting their role in economic growth and job creation.
- π§ 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.
- ποΈ Director of SME Foundations, Yamaha MacArthur, emphasizes the critical need for entrepreneurs to have access to information to improve business outcomes.
- π’ Despite the establishment of government mechanisms to support entrepreneurship, many entrepreneurs remain unaware of these resources and the assistance they offer.
- π Entrepreneurs at the summit identified limited market access and bureaucratic red tape as additional growth impediments.
- π 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.
- π The challenge for entrepreneurs is to penetrate markets and increase visibility to attract potential customers and clients.
- π Internationally, small businesses are known to create between 60% and 70% of jobs, whereas local small businesses lag behind at only 28%.
- π 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.
- π‘ 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
π 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.
Mindmap
Keywords
π‘Entrepreneurs
π‘SMEs (Small and Medium Enterprises)
π‘Sustainable Summit
π‘Economic Growth
π‘Job Creation
π‘Institutional Mechanisms
π‘Access to Information
π‘Access to Markets
π‘Red Tape
π‘National Development Plan
π‘Diabo 0s, ABC News Johannesburg
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
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