SMMEs Have the Power to Create Jobs and Improve People's Lives Small, Medium, and Micro Enterprises (SMMEs) are considered the backbone of Drakenstein’s economy. Not only do they have enormous potential for job creation, but they are also regarded as an engine for local economic growth and development. Councillor Laurichia van Niekerk, Mayoral Committee Member for Planning and Development at Drakenstein Municipality, says SMMEs are key enablers to achieving inclusive sustainable economic growth and transforming the socio-economic reality of the poor. “A growing and flourishing SMME sector has the potential to create much- needed employment and improve the living conditions of many people. The impact of COVID-19 has exacerbated the ongoing challenges that impede the establishment, survival, and growth of SMMEs.” She says the challenges include among others: inadequate access to business information; low skill levels within the SMMEs; high costs of doing business due to the regulatory burden on enterprises; limited access to markets; and lack of access to both financial and non-financial resources.
Cheryl Phillips, Senior Manager for Economic Development and Tourism at Drakenstein Municipality, says that is why the Municipality has set out a number of projects, programmes, and initiatives to support SMMEs, including: • SMME and entrepreneurship development; • Informal trading enhancement; • Maximising small business linkages; and • Enhancing small business support. The Municipality has also implemented several initiatives as identified in its Integrated Development Plan (IDP). “These include numerous value-added interventions, which we have made to further demonstrate our commitment to ensure that our SMMEs remain an integral part of Drakenstein’s economy,” she says. The Municipality has further embarked on creating an enabling environment to regulate the informal economy through demarcating trading spaces, issuing trading permits, and implementing the Municipality’s Informal Trading Management Policy and Bylaw. The Municipality also wants to address the issue around the availability of trading spaces by demarcating new trading spaces. “The case for employment creation and wealth distribution through SMMEs is based on sound economic principles. They have been known to be labour intensive and, in certain instances, barriers to entry are low, depending on the nature of the business,” says Councillor Van Niekerk. “Employment opportunities can be maximised and citizens of Drakenstein can be given the opportunity to contribute to the growth of the economy by channelling much-needed resources to the SMME sector.”
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VARS | November
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