SA: Technical Support and Training is key to a successful cooperative, says Small Business Development Committee

1st February 2017

SA: Technical Support and Training is key to a successful cooperative, says Small Business Development Committee

The Portfolio Committee on Small Business Development has reiterated the need for technical support and training for members of cooperatives.

The Committee has held meetings with the City of Ethekwini, Impendle and Msunduzi local municipalities as part of its week-long oversight visit in KwaZulu-Natal. It also made site inspections and met with members of three primary cooperatives, Sinothando in Hillcrest, Farmline in Impendle and House of Glory in Woodland.

Committee Chairperson Ms Ruth Bhengu urged officials of the Department of Small Business Development to speed up the process of facilitating the establishment of a cooperative training academy.

She said other than developing the national curriculum and providing accreditation to training service providers, the academy will address the 88% failure rate and the narrow perspective on cooperatives 

“These cooperatives are important as they come in the wake of a new economic shift in the country, moving from a capitalist system to a mixed economy, involving state-owned and private companies and cooperatives,” said Ms Bhengu.

Ms Bhengu said cooperatives are crucial to bringing about radical socio-economic development in communities and changing the economy of control and ownership. 

The Committee has noted the work done so far at the three cooperatives, but believes that much could have been achieved if there was effective coordination of roles and responsibilities between the three spheres of government.

The Committee further appreciates the level of co-operation from the Department of Small Business Development together with its ministry for participating in the oversight visits, which helped to resolve some of the challenges on the spot.

The Committee remains in the province until Friday to visit more cooperatives and skills development centres.

 

Issued by Parliamentary Communication Services on behalf of the Chairperson of the Portfolio Committee on Small Business Development, Ms Ruth Bhengu