Date: 22/11/2004
Source: Ministry of Trade and Industry
Title: Mpahlwa: Nafcoc Conference
Address by minister of Trade and Industry, Mandisi Mpahlwa, at the Nafcoc conference
Programme Director
President of National African Federated Chamber of Commerce and Industry (NAFCOC)
Members of Business South Africa
Council Members
Distinguished Guests,
Ladies and Gentlemen
INTRODUCTION
Thank you for giving me the opportunity to address you this evening. I would like to use this occasion to talk to you about some of the issues that are confronting black business in the current economic environment. Indeed in all spheres of our society there are a host of new opportunities that are opening up to black business people – opportunities that we are all well aware of. These opportunities were by and large not available to black business a few years ago. The challenge for many who sit in this room today is how to take full advantage of the current opportunities. For government the challenge is how to effectively transform our economy while at the same time ensuring that there is sustained economic growth. It is within this context that we need to ask ourselves: How will black business contribute to the economic growth of our country? and; what is the role of Chambers of Commerce such as Nafcoc?
Recent reports depict that we are currently experiencing the highest levels of business confidence seen in years and the released economic indicators show that our country is going through its longest period of sustained economic growth of 63 consecutive months. This is longer than the growth South Africa experienced during the 1960’s boom. In addition, our levels of growth as measured by Gross Domestic Product (GDP) are increasing and these levels of growth are predicted to remain on an upward trend in the next few years, pointing to the fact that our boom is set to continue. While we are currently short of the greater than 5% GDP growth required to address the many challenges we face as a country, with the progress we have made and with the support of the business community, we should get to that point in the next year or two. In saying this I am placing a responsibility on the business community, particularly the black business community to further contribute towards growing our economy particularly in terms of employment creation.
SMALL BUSINESS DEVELOPMENT AND BEE
Programme director, government has identified that one of the key areas that will contribute to economic growth and employment creation is that of small business. The concern however is that there is poor participation by black small business in the formal economy and poor participation by black businesses in high growth sectors of our economy. The Department of Trade and Industry recently completed its 2003 annual review of Small Business in South Africa, which shows that black businesses only constitute 33% of formal small enterprises in our country. In certain high growth sectors such as tourism and agro-processing the situation is worse where some studies have put black participation in the tourism industry at less than 5%. When one looks at these figures we can see that a clear constraint to our economic growth is that the largest grouping of our population is not contributing sufficiently to the entrepreneurship base. This is a situation that clearly has to change. The government for its part is helping to promote this change by continuously finding ways to improve the support that we offer small businesses, and we have recently revised our Integrated Small Business Development Strategy, which I will refer to in more detail shortly. The Strategy will amongst other things see the launch of the Small Enterprise Development Agency (SEDA) in December this year. This agency will be the result of a merger between two institutions namely: Ntsika Enterprise Promotion Agency and the National Manufacturing Advice Centre (NAMAC), which focus on the non-financial support aspects for Small Enterprises. This new institution, SEDA, will offer integrated service delivery for Small Enterprises by way of delivering coordinated government support services from a single point, it will also ensure access to opportunities by way of providing information as well as address issues of outreach by establishing access points at least at every district level throughout the country.
Ladies and gentlemen small businesses are often not the subject of Black Economic Empowerment (BEE) equity deals and are therefore not as interesting and exciting for many people, but when we look at the broad based nature of BEE that the government is promoting, we see that small businesses form an integral part of our BEE plans. The BEE scorecards, which are contained in the BEE charters as well as the soon to be released codes of good practice, emphasise that broad based BEE is about ownership, management, enterprise development, skills and human resource development, and a residual factor, which could include downstream beneficiation. Consequently, there is huge scope in this area for black businesspeople to create new enterprises by tapping into the opportunities in the marketplace that are not being fulfilled.
OPPORTUNITIES IN THE ECONOMY
When addressing a forum such as this one I see a great deal of energy and new blood, and I can recognise the huge potential that exists amongst all present here this evening; I see people who are able to take advantage of the opportunities that are being created for small businesses by broad based black economic empowerment. The opportunities that exist for those who are prepared to take the risk are in the following areas:
Firstly, as suppliers to large companies. This is an area that will increasingly offer more and more opportunities as a result of the enterprise development requirements and targets that exist under the sector charters. Large corporations will need to show that they are buying from black businesses in order to fulfil their requirements under the sector charters. The reason why this is significant is because a company that only has a black equity shareholding will not be considered broadly empowered if it does not meet the other requirements under the scorecard. The potential for black suppliers is huge because they will be looking at ongoing business rather than once off equity deals. Typically a large corporation will be using hundreds if not thousands of suppliers in their supply chain and this creates a lot more opportunities for a lot more people than equity deals could ever hope to offer.
In addition to the scorecard requirement, we also expect more investments and expansion from large private sector corporations and from foreign investors. As the economy improves, we will see greater investments by large companies; these companies will need capable suppliers. Small businesses that are able to deliver quality products or services and are able to get access to these supply chains should have a prosperous future.
Secondly, there are opportunities for black small businesses as suppliers to both government and state owned enterprises. State institutions have had procurement preferences for black businesses for several years, and are spending billions of Rands every year on buying from BEE firms and small enterprises. New opportunities will be created by increased state expenditure in the area of infrastructure development; this is part of our expanded public works programme, as well as infrastructure development initiatives by several state owned enterprises such as Transnet and Eskom. To ensure that black businesses are able to gain access to these opportunities, government has effected changes to the Preferential Procurement Regulations so that they are aligned to our Broad Based BEE strategy.
Thirdly, there are opportunities in establishing new enterprises that are able to supply products to consumers and take advantage of the significant increase in domestic demand. Recent reports have highlighted that the low interest rates and low inflation rates have significantly contributed to buoyant consumer demand that is in part fuelling our higher levels of growth. There are many opportunities, particularly in high growth industries such as tourism, agro-processing, call centres, manufacture of automotive components, and in construction as my colleague outlined this afternoon. These sectors are growing rapidly and business people who are not involved in these sectors are missing out by not getting in at an early stage. We have seen that there are many small companies in these high growth sectors that have expanded rapidly and done exceedingly well by finding unique opportunities and by being innovative.
Fourthly, there are excellent opportunities for enterprises by finding new markets and business opportunities internationally, particularly in other African countries. On the trade missions that I have been on and in the trade agreements that South Africa has signed with many countries and regions I have seen that there are excellent opportunities that our entrepreneurs are missing out on. It is imperative that black businesses access more information on the opportunities available in the international market and are competitive enough to effectively engage with international markets. The dti has support programmes to assist businesses improve their competitiveness such as the black business supplier development programme and the manufacturing advisory centres, which offers manufacturing firms industrial extension support services. The business solutions unit of Nafcoc, which was launched earlier today and is coming at the right time, should look at partnering with the department of trade and industry to give the membership more information on the opportunities in the international market as a result of our bilateral and multilateral trade agreements. Businesses should also become more active in structures such as Export Councils so that they are aware of when trade missions are taking place and can participate more actively in our export promotion programmes.
An important area of focus for the dti is creating new opportunities for trade with other African countries. This focus is in line with the broader aims of NEPAD, which has identified trade as one of the mechanisms to improve the economic growth for Africa. Furthermore, NEPAD, as it embarks on a process of improving conditions in Africa across a number of different fields, will create business opportunities in the provision of infrastructure, education services, transport, health care products, consulting services and much more.
SMALL BUSINESS STRATEGY
Ladies and gentlemen government has established a support framework to assist businesses to take advantage of the many opportunities that are available in our growing and dynamic economy. We have a number of institutions that offer or facilitate access to finance for black and small businesses; and earlier I referred to the revised small business strategy that is seeking to improve our support to small businesses.
The key objectives of this strategy are to:
* Increase the contribution of small businesses to the growth of the South African economy;
* Create an enabling environment for small enterprises, with a level playing field between big business and small business, reduce the disparities between urban and rural businesses, and have an environment that is conducive to entrepreneurship;
* Create sustainable long-term jobs in the small business sector;
* Ensure equitable access and participation in terms of race, gender, disability, age, and geographical location;
* Increase the competitiveness of the small businesses sector and its enabling environment so that it is better able to take advantages of opportunities emerging in national, African and international markets.
Most of these objectives will be achieved by SEDA, which has prioritised three areas in which to develop small business.
1. Promoting entrepreneurship
Our Apartheid history of repression limited the scope for entrepreneurial opportunities prior to 1994 and it is necessary for us to inculcate an entrepreneurial spirit amongst our people. The need to foster entrepreneurship amongst our youth has started to take place, with appropriate programmes initiated by schools, technical colleges, technikons and universities. In addition, the media, private training schemes and a whole range of non-government organisations have also promoted this issue from time to time. Through new forms of enterprises such as co-operatives and franchises there is also considerable scope to further intensify, complement and spread these efforts, in particular in rural areas and black communities.
2. Unlocking opportunities through better business environments. It is vital that enterprises are provided with an enabling operating environment. In particular, it is necessary that this operating environment accommodates the needs of target categories within the small business sector, namely micro-enterprises, black-owned enterprises and enterprises in high-growth sectors. This operating environment includes, amongst others, a review of the administrative burden placed on small businesses by government regulations. I am pleased ladies and gentlemen to inform you that we have already conducted preliminary research into this area, which will enhance the capacity of government to make better decisions.
3. Enhancing the competitiveness of small businesses
In our small business development efforts, we need to balance the need for broad-based efforts to unlock micro-enterprise and small enterprise opportunities, with the need for global competitiveness and rapid growth. Small enterprises increasingly have to compete on a global footing in domestic, regional and international markets. The importance of competitiveness in areas such as technology and quality should be recognised.
ACCESS TO FINANCE
The issue of access to finance needs to be seen in the context of the broader small business support strategy. The Strategy calls for a close relationship between business support services and provision of finance because, as we have seen time and again that, receiving a loan without proper systems in place or skills to manage the finance can lead to problems. It is therefore necessary that there be greater levels of co-operation between our institutions that offer business support and those that facilitate access to finance. While the new Small Enterprise Development Agency will be working on improving that relationship, it is also necessary for entrepreneurs who secure loans to consider the merits of receiving business support either from public or private sector institutions.
People often have a lot to say about access to finance and there is undoubtedly a great deal of enhancement required in this area. The dti has several institutions that offer finance to businesses; these include the Industrial Development Corporation and the National Empowerment Fund. In addition, we have the Khula Enterprise Finance, which works with the banking sector to provide credit guarantees for businesses that do not have sufficient collateral for their loans, this institution has approved finance facilities of R1.3 billion over the past few years, 79% of which has gone to BEE firms. This institution also offers wholesale finance to various organisations, which finance the lower end of the small enterprises market. These initiatives have helped to support the creation of tens of thousands of jobs.
We will soon be launching the Micro Finance Apex Fund, which will facilitate access to finance by offering financial products for micro enterprises, survivalist businesses, and other people involved in economically productive activities. The loans will be up to a maximum of R10 000 and will primarily address what South African’s have termed the second economy.
In addition to the financial institutions I have just mentioned, the dti offers several incentives to businesses to encourage investment and expansion of operations. These incentives cater to both large and smaller enterprises the dti also has incentives to encourage businesses to become more competitive. The incentives cater to different types of businesses and I encourage you to find out more about them to see if your business in eligible. You can obtain more information on the dti website or from our client contact centre. The web address is: www.thedti.gov.za and the number for our client contact centre is 0861 843 384.
ROLE OF CHAMBERS
Programme director, ladies and gentlemen, with all the opportunities available to black businesses and to small businesses, and with an effective government support framework being put in place one might ask what is the role of chambers of commerce and industry. Indeed there is a critical role for business chambers and sector associations to play through the provision of membership and development services. Chambers are also critical in the support that they can offer new business entrants. Experience has shown us that chambers can assist businesses with information on both domestic and international business opportunities as well as providing market information in different sectors or countries; they can organise trade missions and host inward bound trade delegations; chambers can also hold workshops on different aspects of compliance with legislation or on management and other business issues that are critical to their membership. I am sure that there are many areas where the department of trade and industry can partner with chambers particularly in implementation of critical programmes in respect of the above. From the dti, the first phase of support has been around building and development of capacity for chambers and we therefore view the next phase as the implementation of tangible programmes that clearly demonstrate that we are partners in the area of support for Small Enterprises.
As you might be aware amendments that make provision for the creation of small business advisory council were effected in the National Small Business Act. We are currently finalising criteria for nominations and announcements will be made early in the new year.
CONCLUSION
To conclude, broad based black economic empowerment will significantly contribute to changing the face of business in South Africa. However there is a critical role for black business people to play in making this happen not only at the level of equity in companies but more importantly by participating in small enterprises and taking advantage of the many opportunities available in our economy today. In doing so these businesses will significantly contribute to sustainable economic growth in our country and to reducing the levels of unemployment that we face. Our government has created a favourable environment in which business can flourish and a support framework for small businesses; what we now need is for South African business people, supported by their chambers, to become more entrepreneurial, take the risks and drive our growth to the next level.
Finally, I would like to recognise the role played by key Nafcoc stalwarts and their contribution to our country.
I thank you.
Issued by: Ministry of Trade and Industry
22 November 2004
Source: Department of Trade and Industry (http://www.dti.gov.za)
Source: Ministry of Trade and Industry
Title: Mpahlwa: Nafcoc Conference
Address by minister of Trade and Industry, Mandisi Mpahlwa, at the Nafcoc conference
Programme Director
President of National African Federated Chamber of Commerce and Industry (NAFCOC)
Members of Business South Africa
Council Members
Distinguished Guests,
Ladies and Gentlemen
INTRODUCTION
Thank you for giving me the opportunity to address you this evening. I would like to use this occasion to talk to you about some of the issues that are confronting black business in the current economic environment. Indeed in all spheres of our society there are a host of new opportunities that are opening up to black business people – opportunities that we are all well aware of. These opportunities were by and large not available to black business a few years ago. The challenge for many who sit in this room today is how to take full advantage of the current opportunities. For government the challenge is how to effectively transform our economy while at the same time ensuring that there is sustained economic growth. It is within this context that we need to ask ourselves: How will black business contribute to the economic growth of our country? and; what is the role of Chambers of Commerce such as Nafcoc?
Recent reports depict that we are currently experiencing the highest levels of business confidence seen in years and the released economic indicators show that our country is going through its longest period of sustained economic growth of 63 consecutive months. This is longer than the growth South Africa experienced during the 1960’s boom. In addition, our levels of growth as measured by Gross Domestic Product (GDP) are increasing and these levels of growth are predicted to remain on an upward trend in the next few years, pointing to the fact that our boom is set to continue. While we are currently short of the greater than 5% GDP growth required to address the many challenges we face as a country, with the progress we have made and with the support of the business community, we should get to that point in the next year or two. In saying this I am placing a responsibility on the business community, particularly the black business community to further contribute towards growing our economy particularly in terms of employment creation.
SMALL BUSINESS DEVELOPMENT AND BEE
Programme director, government has identified that one of the key areas that will contribute to economic growth and employment creation is that of small business. The concern however is that there is poor participation by black small business in the formal economy and poor participation by black businesses in high growth sectors of our economy. The Department of Trade and Industry recently completed its 2003 annual review of Small Business in South Africa, which shows that black businesses only constitute 33% of formal small enterprises in our country. In certain high growth sectors such as tourism and agro-processing the situation is worse where some studies have put black participation in the tourism industry at less than 5%. When one looks at these figures we can see that a clear constraint to our economic growth is that the largest grouping of our population is not contributing sufficiently to the entrepreneurship base. This is a situation that clearly has to change. The government for its part is helping to promote this change by continuously finding ways to improve the support that we offer small businesses, and we have recently revised our Integrated Small Business Development Strategy, which I will refer to in more detail shortly. The Strategy will amongst other things see the launch of the Small Enterprise Development Agency (SEDA) in December this year. This agency will be the result of a merger between two institutions namely: Ntsika Enterprise Promotion Agency and the National Manufacturing Advice Centre (NAMAC), which focus on the non-financial support aspects for Small Enterprises. This new institution, SEDA, will offer integrated service delivery for Small Enterprises by way of delivering coordinated government support services from a single point, it will also ensure access to opportunities by way of providing information as well as address issues of outreach by establishing access points at least at every district level throughout the country.
Ladies and gentlemen small businesses are often not the subject of Black Economic Empowerment (BEE) equity deals and are therefore not as interesting and exciting for many people, but when we look at the broad based nature of BEE that the government is promoting, we see that small businesses form an integral part of our BEE plans. The BEE scorecards, which are contained in the BEE charters as well as the soon to be released codes of good practice, emphasise that broad based BEE is about ownership, management, enterprise development, skills and human resource development, and a residual factor, which could include downstream beneficiation. Consequently, there is huge scope in this area for black businesspeople to create new enterprises by tapping into the opportunities in the marketplace that are not being fulfilled.
OPPORTUNITIES IN THE ECONOMY
When addressing a forum such as this one I see a great deal of energy and new blood, and I can recognise the huge potential that exists amongst all present here this evening; I see people who are able to take advantage of the opportunities that are being created for small businesses by broad based black economic empowerment. The opportunities that exist for those who are prepared to take the risk are in the following areas:
Firstly, as suppliers to large companies. This is an area that will increasingly offer more and more opportunities as a result of the enterprise development requirements and targets that exist under the sector charters. Large corporations will need to show that they are buying from black businesses in order to fulfil their requirements under the sector charters. The reason why this is significant is because a company that only has a black equity shareholding will not be considered broadly empowered if it does not meet the other requirements under the scorecard. The potential for black suppliers is huge because they will be looking at ongoing business rather than once off equity deals. Typically a large corporation will be using hundreds if not thousands of suppliers in their supply chain and this creates a lot more opportunities for a lot more people than equity deals could ever hope to offer.
In addition to the scorecard requirement, we also expect more investments and expansion from large private sector corporations and from foreign investors. As the economy improves, we will see greater investments by large companies; these companies will need capable suppliers. Small businesses that are able to deliver quality products or services and are able to get access to these supply chains should have a prosperous future.
Secondly, there are opportunities for black small businesses as suppliers to both government and state owned enterprises. State institutions have had procurement preferences for black businesses for several years, and are spending billions of Rands every year on buying from BEE firms and small enterprises. New opportunities will be created by increased state expenditure in the area of infrastructure development; this is part of our expanded public works programme, as well as infrastructure development initiatives by several state owned enterprises such as Transnet and Eskom. To ensure that black businesses are able to gain access to these opportunities, government has effected changes to the Preferential Procurement Regulations so that they are aligned to our Broad Based BEE strategy.
Thirdly, there are opportunities in establishing new enterprises that are able to supply products to consumers and take advantage of the significant increase in domestic demand. Recent reports have highlighted that the low interest rates and low inflation rates have significantly contributed to buoyant consumer demand that is in part fuelling our higher levels of growth. There are many opportunities, particularly in high growth industries such as tourism, agro-processing, call centres, manufacture of automotive components, and in construction as my colleague outlined this afternoon. These sectors are growing rapidly and business people who are not involved in these sectors are missing out by not getting in at an early stage. We have seen that there are many small companies in these high growth sectors that have expanded rapidly and done exceedingly well by finding unique opportunities and by being innovative.
Fourthly, there are excellent opportunities for enterprises by finding new markets and business opportunities internationally, particularly in other African countries. On the trade missions that I have been on and in the trade agreements that South Africa has signed with many countries and regions I have seen that there are excellent opportunities that our entrepreneurs are missing out on. It is imperative that black businesses access more information on the opportunities available in the international market and are competitive enough to effectively engage with international markets. The dti has support programmes to assist businesses improve their competitiveness such as the black business supplier development programme and the manufacturing advisory centres, which offers manufacturing firms industrial extension support services. The business solutions unit of Nafcoc, which was launched earlier today and is coming at the right time, should look at partnering with the department of trade and industry to give the membership more information on the opportunities in the international market as a result of our bilateral and multilateral trade agreements. Businesses should also become more active in structures such as Export Councils so that they are aware of when trade missions are taking place and can participate more actively in our export promotion programmes.
An important area of focus for the dti is creating new opportunities for trade with other African countries. This focus is in line with the broader aims of NEPAD, which has identified trade as one of the mechanisms to improve the economic growth for Africa. Furthermore, NEPAD, as it embarks on a process of improving conditions in Africa across a number of different fields, will create business opportunities in the provision of infrastructure, education services, transport, health care products, consulting services and much more.
SMALL BUSINESS STRATEGY
Ladies and gentlemen government has established a support framework to assist businesses to take advantage of the many opportunities that are available in our growing and dynamic economy. We have a number of institutions that offer or facilitate access to finance for black and small businesses; and earlier I referred to the revised small business strategy that is seeking to improve our support to small businesses.
The key objectives of this strategy are to:
* Increase the contribution of small businesses to the growth of the South African economy;
* Create an enabling environment for small enterprises, with a level playing field between big business and small business, reduce the disparities between urban and rural businesses, and have an environment that is conducive to entrepreneurship;
* Create sustainable long-term jobs in the small business sector;
* Ensure equitable access and participation in terms of race, gender, disability, age, and geographical location;
* Increase the competitiveness of the small businesses sector and its enabling environment so that it is better able to take advantages of opportunities emerging in national, African and international markets.
Most of these objectives will be achieved by SEDA, which has prioritised three areas in which to develop small business.
1. Promoting entrepreneurship
Our Apartheid history of repression limited the scope for entrepreneurial opportunities prior to 1994 and it is necessary for us to inculcate an entrepreneurial spirit amongst our people. The need to foster entrepreneurship amongst our youth has started to take place, with appropriate programmes initiated by schools, technical colleges, technikons and universities. In addition, the media, private training schemes and a whole range of non-government organisations have also promoted this issue from time to time. Through new forms of enterprises such as co-operatives and franchises there is also considerable scope to further intensify, complement and spread these efforts, in particular in rural areas and black communities.
2. Unlocking opportunities through better business environments. It is vital that enterprises are provided with an enabling operating environment. In particular, it is necessary that this operating environment accommodates the needs of target categories within the small business sector, namely micro-enterprises, black-owned enterprises and enterprises in high-growth sectors. This operating environment includes, amongst others, a review of the administrative burden placed on small businesses by government regulations. I am pleased ladies and gentlemen to inform you that we have already conducted preliminary research into this area, which will enhance the capacity of government to make better decisions.
3. Enhancing the competitiveness of small businesses
In our small business development efforts, we need to balance the need for broad-based efforts to unlock micro-enterprise and small enterprise opportunities, with the need for global competitiveness and rapid growth. Small enterprises increasingly have to compete on a global footing in domestic, regional and international markets. The importance of competitiveness in areas such as technology and quality should be recognised.
ACCESS TO FINANCE
The issue of access to finance needs to be seen in the context of the broader small business support strategy. The Strategy calls for a close relationship between business support services and provision of finance because, as we have seen time and again that, receiving a loan without proper systems in place or skills to manage the finance can lead to problems. It is therefore necessary that there be greater levels of co-operation between our institutions that offer business support and those that facilitate access to finance. While the new Small Enterprise Development Agency will be working on improving that relationship, it is also necessary for entrepreneurs who secure loans to consider the merits of receiving business support either from public or private sector institutions.
People often have a lot to say about access to finance and there is undoubtedly a great deal of enhancement required in this area. The dti has several institutions that offer finance to businesses; these include the Industrial Development Corporation and the National Empowerment Fund. In addition, we have the Khula Enterprise Finance, which works with the banking sector to provide credit guarantees for businesses that do not have sufficient collateral for their loans, this institution has approved finance facilities of R1.3 billion over the past few years, 79% of which has gone to BEE firms. This institution also offers wholesale finance to various organisations, which finance the lower end of the small enterprises market. These initiatives have helped to support the creation of tens of thousands of jobs.
We will soon be launching the Micro Finance Apex Fund, which will facilitate access to finance by offering financial products for micro enterprises, survivalist businesses, and other people involved in economically productive activities. The loans will be up to a maximum of R10 000 and will primarily address what South African’s have termed the second economy.
In addition to the financial institutions I have just mentioned, the dti offers several incentives to businesses to encourage investment and expansion of operations. These incentives cater to both large and smaller enterprises the dti also has incentives to encourage businesses to become more competitive. The incentives cater to different types of businesses and I encourage you to find out more about them to see if your business in eligible. You can obtain more information on the dti website or from our client contact centre. The web address is: www.thedti.gov.za and the number for our client contact centre is 0861 843 384.
ROLE OF CHAMBERS
Programme director, ladies and gentlemen, with all the opportunities available to black businesses and to small businesses, and with an effective government support framework being put in place one might ask what is the role of chambers of commerce and industry. Indeed there is a critical role for business chambers and sector associations to play through the provision of membership and development services. Chambers are also critical in the support that they can offer new business entrants. Experience has shown us that chambers can assist businesses with information on both domestic and international business opportunities as well as providing market information in different sectors or countries; they can organise trade missions and host inward bound trade delegations; chambers can also hold workshops on different aspects of compliance with legislation or on management and other business issues that are critical to their membership. I am sure that there are many areas where the department of trade and industry can partner with chambers particularly in implementation of critical programmes in respect of the above. From the dti, the first phase of support has been around building and development of capacity for chambers and we therefore view the next phase as the implementation of tangible programmes that clearly demonstrate that we are partners in the area of support for Small Enterprises.
As you might be aware amendments that make provision for the creation of small business advisory council were effected in the National Small Business Act. We are currently finalising criteria for nominations and announcements will be made early in the new year.
CONCLUSION
To conclude, broad based black economic empowerment will significantly contribute to changing the face of business in South Africa. However there is a critical role for black business people to play in making this happen not only at the level of equity in companies but more importantly by participating in small enterprises and taking advantage of the many opportunities available in our economy today. In doing so these businesses will significantly contribute to sustainable economic growth in our country and to reducing the levels of unemployment that we face. Our government has created a favourable environment in which business can flourish and a support framework for small businesses; what we now need is for South African business people, supported by their chambers, to become more entrepreneurial, take the risks and drive our growth to the next level.
Finally, I would like to recognise the role played by key Nafcoc stalwarts and their contribution to our country.
I thank you.
Issued by: Ministry of Trade and Industry
22 November 2004
Source: Department of Trade and Industry (http://www.dti.gov.za)
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