The Department of Trade and Industry has established a new incubation support programme to develop enterprises that would absorb and upgrade South Africa’s vast unskilled labour force, develop new technologies and strengthen the country’s economy, Minister Rob Davies has announced.

Speaking at the opening of the 37th International Small Business Congress, in Sandton, on Sunday, Davies explained that the programme would encourage private sector partnerships with government to foster collaboration between small and big businesses, whereby big businesses would assist small, micro and medium-sized enterprises (SMMEs) with skills and technology transfer, supplier development and creating marketing opportunities.

“I trust that the private sector and our partners, as well as our agencies will take advantage of the facility as a significant opportunity to contribute to the growth of sustainable small, medium and micro enterprises in South Africa. The facility will be open for applications from October, and will be available on a cost-sharing basis between the government and a private sector partner with the aim of developing and nurturing SMMEs,” the Minister added.

The programme formed part of various interventions that the government was implementing to ensure that small enterprises and big businesses in South Africa had a symbiotic relationship that would boost the development and growth of the country’s SMME sector.

“The government of South Africa also recognises and acknowledges the role that big business can play in boosting the development and growth of our small enterprises. It is against this background that we have initiated measures that will ensure that there is a symbiotic partnership between our small enterprise and big businesses,” Davies stated.

He added that the review of the broad-based black economic-empowerment legislation and codes of good practice, as well as the establishment of the Small Enterprise Finance Agency were part of the measures aimed at boosting the SMME sector in the country.

“We believe small businesses are an important source of employment, with as much as 68% of private sector employment being generated by small businesses that employ fewer than 50 workers. South Africa needs to grow its small business sector if we are to deliver on the government’s New Growth Path. We are committed to partnering with government in the development and nurturing of entrepreneurs as they are the key enablers to socioeconomic upliftment,” Absa chief executive for retail and business banking Bobby Malabie said.

International Small Business Congress president Catherine Swift stated that small enterprises around the world faced similar challenges, including labour laws, access to finance, red tape and taxes.