Chairperson of the Portfolio Committee on Small Business Development Ruth Bhengu has called on the Department of Small Business Development to help cooperatives by investing in the machinery they require.

“Capital investment will be a better option than giving out grants, as they do not empower people but promote a culture of dependency,” Bhengu said.

She said the country needed businesses that are effective, self-sustaining, income generating and contribute to job creation.

The Portfolio Committee on Small Business Development visited spaza shops and cooperatives meant to empower people with disabilities in Soweto, Kagiso and Jeppestown, as well as developments designed to grow small, medium and micro enterprises (SMMEs) in Riversands and Midrand.

Small business owners raised challenges such as the lack of financial support, unfair competition from foreign nationals, late payment of invoices by government and policies that stifle the process of starting a business.

“Government officials need to be in touch with people on the ground if they want to address the poverty question in the country. Business plans should also be informed by visits to small business enterprises and not by perceived needs,” Bhengu said.