DSBD to provide municipalities with SMME infrastructure development incentives

21st October 2014 By: Leandi Kolver - Creamer Media Deputy Editor

DSBD to provide municipalities with SMME infrastructure development incentives

Photo by: Duane Daws

The Department of Small Business Development (DSBD) would soon invite applications from local municipalities for incentives to cover the building or renovation of infrastructure that could support small, medium-sized and microenterprises (SMMEs), DSBD acting director-general Pumla Ncapayi announced on Tuesday.

Speaking at the inaugural National SMME Policy Colloquium, in Sandton, she said the provision of adequate infrastructure would enable informal businesses to operate in an improved and more dignified environment.

“We all know that townships and rural areas have been overlooked for a long time in our economy. As such, township and rural entrepreneurs will be receiving infrastructure development initiatives,” Ncapayi said, adding that the department would focus on the entire value chain of businesses up to medium-sized enterprises.

She further noted the department would also aim to support a range of other business segments through the development of small-scale industrial parks, craft centres and business incubators.

“Given that infrastructure is a capital intensive project we will seek partnerships with the private sector, the universities and local municipalities,” she added.

Meanwhile, Ncapayi further indicated that the DSBD would also seek to increase the awareness of entrepreneurship as a viable career path among the youth.

To this end, the department would seek the inclusion of a curriculum including enterprise education at primary and high school level.

Ncapayi also pointed out that, during the year, two centres of entrepreneurship had been established – in the Eastern Cape and Gauteng – with two additional centres set to be launched before the end of this year in Mpumalanga and the Western Cape.

Also speaking at the colloquium SMME practitioner Dr Thami Mazwai said the culture of entrepreneurship among South Africa’s youth had been dulled and replaced by a culture of entitlement.

“We expect government to be the entrepreneurs while we sit in the background,” he said, stating that the country had not yet overcome apartheid in the sense of expecting guidance from government in terms of starting new businesses.

However, he also cautioned against taking the “push” approach with regard to creating entrepreneurs, explaining that currently some institutions tended to push all young people towards starting their own businesses, while some people were better suited to work for others.

“We should rather take the ‘pull’ approach. If we dangle a carrot, the true entrepreneurs will emerge,” he said.