Big business partners join hands to lift SMES
THE UN Development Programme (UNDP) has joined forces with organised business to elevate the role of small business in the economy.
This is to be done in a programme to be run jointly by the UNDP, Black Business Council (BBC) and Business Unity South Africa (Busa).
The programme, based on similar models conceived by the UNDP, aims to empower small- to medium-sized enterprises (SMEs), especially black SMEs.
The partners will work with the govern- ment in key areas to drive the programme.
A memorandum of agreement was signed by the three parties earlier this month that opened the way for a meaningful engagement on the proposed programme.
Delegates from the BBC and its two biggest affiliates, Nafcoc and Fabcos, are currently on an observation mission to Mexico where they will be exposed to a similar programme. The delegation is led by BBC CEO Xolani Qubeka, with representatives from Busa, Nafcoc and Fabcos.
The programme aims to accelerate the role of small businesses in the local economy, taking lessons from achievements of successfully industrialised emerging economies.
According to the UNDP, the global gross domestic product has increased some 400% since 1960.
The 2011 Human Development Report states that human development increased from 40% to 60% from 1970 to 2010, in so doing recorded strong advances in health, education and income.
The report adds: “Business played a critical role in this revolution, especially in the development and expansion of productive capacities, new technologies and job creation, which lifted millions out of poverty.”
Driving the SME sector to the centre of the economy will have significant spin-offs as black business will have a say in the future growth and development of the economy.
Four key focus areas have been identified as women entrepreneurship development; youth employment; the green economy and inclusive market development.
In the UNDP’s perspective, inclusive market development refers to the extension of economic opportunities and choices to the poor and vulnerable groups, including producers, consumers and wage earners.