Department of Small Business Development's role as GDP declines

South Africa’s economy shrank by 3.2% in the first quarter of 2019, the most significant decline seen since the global financial crisis 10 years ago.

The decline of gross domestic product (GDP) for the first quarter of 2019 exceeded expectations by economists who expected the economy to decline by 1.6%.

How will the government respond to the challenge that the decline poses and what role will small business play in curbing the decline?

Read: Ramaphosa must be very tough on underperforming ministers, says economist

Bongani Bingwa speaks to newly-appointed Small Business Development Minister Khumbudzo Ntshavheni.

She says at a time when the economy is in hardship, her department has a few key issues it wants to tackle.

Access to markets, access to finance and small business support and knowing what the government is doing with small business.

Khumbudzo Ntshavheni, Minister - Small Business Development

She says South Africans are doing a lot of work, like manufacturing products. However, they do not have access to the market.

The market is not opened to those who are in retail, and when the market is opened, it is not meaningful.

Khumbudzo Ntshavheni, Minister - Small Business Development

She believes that big companies can do something to assist small businesses.

She adds that the government has many programmes designed to fund small businesses, however, that access to finance is difficult.

Also read: South Africans are getting poorer and poorer at an increasing rate

Let me give an example in my department. You get a small business that goes to the Small Enterprise Development Agency (Seda) to get assistance to do a business plan so that they can apply for funding at Small Enterprise Finance Agency (Sefa). Seda does the business plan, and Sefa rejects the business plan.

Khumbudzo Ntshavheni, Minister - Small Business Development

Ntshavheni adds that these two entities need to be streamlined and work together to help small businesses.

The minister says society also needs to nurture entrepreneurs in communities.

Listen below to the full interview:


Recommended

by NEWSROOM AI
Read More
'The song 'Missâo de Serviço' epitomises what Os Tubaroes is all about'

'The song 'Missâo de Serviço' epitomises what Os Tubaroes is all about'

'This is Africa' host Richard Nwamba explores the rich musical history of Cape Verde.

Cycle Lab gifts cyclist with new bike after his broke

Cycle Lab gifts cyclist with new bike after his broke

Khabazela shares tweets and Facebook posts that have gone viral.

[WATCH] 'Come to my house, I want you to make me pregnant quickly', goes viral

[WATCH] 'Come to my house, I want you to make me pregnant quickly', goes viral

Khabazela shares tweets and Facebook posts that have gone viral.

'Premature RDP closure led to a fragmentation of our society, says Jay Naidoo

'Premature RDP closure led to a fragmentation of our society, says Jay Naidoo

Former minister Jay Naidoo weighs in on the failures of the Reconstruction and Development Programme.

South Africans are getting poorer and poorer at an increasing rate

South Africans are getting poorer and poorer at an increasing rate

Bruce Whitfield interviews Mike Schussler (Economists.Co.Za), Busisiwe Radebe (Nedbank) and Edward Kieswetter (Sars).

Ramaphosa must be very tough on underperforming ministers, says economist

Ramaphosa must be very tough on underperforming ministers, says economist

Thabi Leoka responds to an announcement of a 3.2% GDP decline for the first quarter of 2019.

Popular articles
Earn R4500+ per month by renting out your car to Uber drivers

Earn R4500+ per month by renting out your car to Uber drivers

Flexclub pays you to rent out a car you don’t use to Uber drivers struggling to obtain finance, says cofounder Tinashe Ruzane.

[WATCH] 'Come to my house, I want you to make me pregnant quickly', goes viral

[WATCH] 'Come to my house, I want you to make me pregnant quickly', goes viral

Khabazela shares tweets and Facebook posts that have gone viral.

'Appointing Bathabile Dlamini is Sisulu's act of defiance against the president'

'Appointing Bathabile Dlamini is Sisulu's act of defiance against the president'

Mail & Guardian investigative journalist Sabelo Skiti reflects on the infighting between factions in the ruling party.

RMB Holdings ends SA’s 'most successful entrepreneurial venture in 40 years'

RMB Holdings ends SA’s 'most successful entrepreneurial venture in 40 years'

RMB Holdings will dole out its shares in FirstRand, South Africa’s largest financial institution, says Chris Logan.

We paid before the family arrived with the body – Old Mutual

We paid before the family arrived with the body – Old Mutual

Consumer journalist Wendy Knowler investigates after a poor family’s desperation to get a claim paid made headlines.

[WATCH] Group of people protect heavily pregnant woman after she was assaulted

[WATCH] Group of people protect heavily pregnant woman after she was assaulted

Khabazela shares tweets and Facebook posts that have gone viral.

[WATCH] SABC reporter heading for danger during looting goes viral

[WATCH] SABC reporter heading for danger during looting goes viral

Khabazela shares tweets and Facebook posts that have gone viral.

4 things you should never say if you want to get rich

4 things you should never say if you want to get rich

Don’t ever say or, worse, believe any of these wealth-destroying platitudes, implores personal finance expert Warren Ingram.