Navigating Market Access for Small Businesses

Video The Portfolio Committee on Small Business Development met to discuss market access opportunities for small, medium, and micro enterprises (SMMEs) and co-operatives, as well as the project structure for the appointment of the Ombudsperson for Small Enterprises. The Committee content advisor explained the importance of the small business sector in contributing to economic growth and creating jobs, and indicated how poorly South Africa compared to other countries in Africa and around the world. Common challenges stifling the growth of this sector included access to markets, access to finance, bureaucratic obstacles, and access to business premises. In the discussion, the Chairperson raised concerns about spaza shops that operate illegally, live on their trading premises, sell unhealthy food on credit, and take advantage of those reliant on South African Social Security Agency (SASSA) grants. If these shops operated legally, they would be bound to the rules and regulations of the country, but the lack of enforcement meant that South Africans remained in poverty and could not participate in the opportunities afforded to them to start their own small businesses, and grow and develop. Committee Members raised various concerns relating to improving access to opportunities for SMMEs, particularly in the farming sector, where there was an urgent need for assistance in building market and storage facilities to prevent losses from weather-related issues. They referred to the dominance of large retailers in township areas, who undermine small businesses by offering low prices and thereby create unmanageable competition. Members emphasised the need for a supportive framework to foster inclusive economic growth. SMMEs should be assisted through the promotion of professional conduct, similar to businesses in other countries. They advocated continuous financial education for SMMEs to ensure their sustainability, job creation, and market readiness. Other concerns were the inappropriate regulations affecting SMMEs, particularly those owned by black individuals, women, youth, and people with disabilities, and the need for the government to provide better market access and support. Overall, the discussion called for a comprehensive strategy to empower SMMEs and address systemic obstacles to their growth.