SMMEs, co-operatives aided by municipality
THE eThekwini Municipality launched two major initiatives this week aimed at developing small and medium enterprises and co-operatives.
On Wednesday it unveiled its co-operative development strategy to streamline its support through financial assistance, business training and product promotion.
Ethekwini mayor James Nxumalo said co-operatives played a significant role in the economic and social development of many societies globally. He said the city was the first municipality in the country to introduce the co-operative development strategy.
Nxumalo said the municipality regarded small, medium and micro enterprises (SMMEs) as a vital contributor to the health of the economy as they boosted productivity, increased competition and innovation, created employment and prosperity, and revitalised communities.
“This shows the municipality is committed to radically transforming the economy through effective development and increased participation of SMMEs and co-operatives in the mainstream economy.”
Nxumalo said eThekwini was working to improve relations between established large businesses and SMMEs as well as co-operatives.
This week the city also hosted its first two-day Smart Procurement World Conference, with its deputy head of supply chain management, Sandile Ngcobo, recommitting the city to adhering to international best practice in its supply chain functions.
Ngcobo said it was essential to create a platform for small businesses to engage supply chain heads, chief buyers, procurement officers, supply chain managers, compliance managers and purchasing managers.
The city funded at least 40 small business owners to attend the conference.
eThekwini speaker Logie Naidoo said although procurement was often controversial in the public imagination, hosting a conference dealing with various aspects of this critical field would “assist us in moving towards becoming a smart city.”
He said it was important for citizens to understand that without procuring services from a wide of array of suppliers, service delivery was impossible.
“When people in their local communities see a clinic, library or a community hall being built where they live, they must realise there was a starting point and that point is procurement.”
The conference was intended to improve partnership linkages between buyers and suppliers. It aimed to generate at least R500 000 from the expo.
Nxumalo said the municipal budget had grown from R31.7 billion in 2011 to R41.6bn this year, while the capital budget had grown from R5.3bn to R6.7bn.
“It is often the dynamism of individual entrepreneurs that drives small business success,” he said. “But local government, through its actions, can do much to stimulate and support SMMEs and help them overcome barriers to growth.”