MPs happy with progress made to finance SMMEs

THE Department of Small Business Development have continued to facilitate access to finance for small‚ medium and micro enterprises (SMMEs) and cooperatives.

Under the department’s Black Business Supplier Development Programme, 221 enterprises had received support to the tune of R60.7-million in the first quarter of the 2015-16 financial year.

The department yesterday presented its performance report for the first quarter to parliament’s portfolio committee on small business development‚ which expressed satisfaction with the progress the department had made over the period.

“During the first year‚ the Small Enterprise Finance Agency (Sefa) disbursed R344-million to 24 711 SMMEs,” the department said.

“A total of 5 305 youth-owned businesses‚ 22 296 black-owned‚ 21 940 women-owned and 22 620 SMMEs and cooperatives in priority provinces have been financed.

“It is important to note that 43% of the allocations were in the priority sectors such as construction‚ ICT‚ mining‚ manufacturing‚ agriculture and tourism as defined in the New Growth Path and Industrial Policy Action Plan.”

A total of 2 174 clients had received support from the Small Enterprise Development Agency (Seda).

“This support has made a huge impact on the growth and sustainability of these enterprises – 70% of surveyed clients indicated an increase in turnover and 45% indicated an increase in the number of people employed,” the report said.

Collaboration with the private sector was critical to building a growing and viable small business and cooperative sector.

Among the retailers engaged by the department‚ Sefa and Seda in a bid to unlock opportunities for small businesses were: SAB Miller‚ Edcon‚ Tiger Brands‚ Fruit & Veg‚ Anglo American‚ Woolworths‚ Pick n Pay‚ Amalgamated Beverage Industries‚ Massmart‚ Spar and Shoprite. – RDM Newswire