Leave SMME Ministry; rather scrap BEE - AfriBusiness
Government's intention to create a Ministry for SMMEs will merely institute more red tape and uncompetitive business practices.
The business rights watchdog AfriBusiness said in a media statement today that Government should focus on its own management responsibilities rather than on regulating entrepreneurs and business people. While Government may have good intentions with the establishment of an SMME Ministry, their record in this matter shows that similar initiatives had actually been a cover-up for the creation of opportunities for ANC cadres. The National Youth Development Agency is a prime example of a failed government initiative to support and stimulate small businesses.
According to AfriBusiness CEO, Cornelius Jansen van Rensburg, Government's two most important responsibilities towards the business community are the creation of a stable macro economic environment and the creation of a fair and empowering micro economic environment. While the State has seen a fair amount of success during the past twenty years in respect of the macro economic environment, it is failing abysmally to create a healthy micro economic environment (a business friendly environment). In order to be able to do this, Government must focus on the following:
1. All ownership rights of companies and individuals must be respected.
2. Crime and corruption must be eradicated.
3. Policy which leads to unfair competition, such as black economic empowerment, should be scrapped.
The single biggest stumbling block to a healthy business environment is the unintentional results of black economic empowerment. Examples are nepotism, corruption, delivery of substandard goods and services at inflated prices, and the eroding of ownership rights.
The best way for Government to support small and medium-sized business owners, regardless of race, is by scrapping limiting legislation. Entrepreneurs need a business environment in which they can compete freely and fairly for business opportunities.
Statement issued by Cornelius Jansen van Rensburg, CEO, AfriBusiness/AfriSake, April 11 2014
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