SMEs positive about growth
Despite a challenging economic landscape, South African small and medium-sized enterprise (SME) owners remain positive about the potential for achieving future business growth.
High levels of uncertainty about the fiscal framework and a lack of clarity around economic policies contribute to a general lack of confidence in the role of government. These concerns are expected to be addressed by National Treasury in the upcoming medium-term budget policy statement (MTBPS), which should also provide an update on the progress regarding the many SME-friendly initiatives announced in the last budget speech.
The second quarter 2019 Business Partners SME Index, which measures the attitudes and confidence levels of South Africa’s SME owners, revealed that 74% of respondents are confident their business will grow in the next 12 months. This is one percentage point higher than the previous quarter and four percentage points higher compared to the second quarter of last year.
While SMEs are optimistic, the slight increase in business confidence observed across most indicators may signify the green shoots of a confidence recovery. Our policies are good, and we are beginning to see improvements in the institutional capacity at many of the government agencies.
What is urgently needed is the accelerated execution of policy implementation and turnaround plans from government. A decisive plan of action to establish a more conducive business environment and concerted execution is critical to improve confidence, stimulate investment and drive economic growth. With the MTBPS taking place next week, government has the opportunity to restore confidence.
According to the latest index results, business owners believe less red tape, better access to funding, and the implementation of existing policy for economic growth will benefit them the most in this regard.
With the burden of red tape felt disproportionately by SMEs, reducing red tape by 25% over the next five years by revisiting the Red Tape Impact Assessment Bill will be a step in the right direction. In addition to this, we have to create a more labour-friendly environment for SMEs, as there are too many examples of labour laws that filter down from big business negotiating with bargaining councils which negatively impact SMEs.
Ben Bierman is managing director of Business Partners.
Moneyweb
Assistant portfolio manager Victor Seanie has spoken out about being dismissed by the Public Investment Corporation (PIC) for his role in the hapless R4.3 billion investment in Ayo Technology Solutions.
On Thursday, the PIC confirmed Seanie had been dismissed after his disciplinary hearing, chaired by an independent chairperson, was concluded.
“I am the fall guy,” said Seanie. “I am the only one fired and I am the most junior person in the whole transaction. My bosses are at the office”.
Seanie was suspended in January alongside the head of listed investments, Fidelis Madavo.
In December 2017, the PIC bought a 29% stake in the company linked to Independent Media owner Iqbal Survé. It paid R43 per share, despite internal warnings from some employees that the company had been overvalued.
Today the PIC is trying to recover