Established firms urged to support SMEs
JOHANNESBURG, (CAJ News) – A TECHNOLOGY industry executive has urged large businesses in South African to nurture small and medium enterprises in order to enhance the country’s economic growth.
Ivan Epstein, Sage Chief Executive Officer for Africa, Australia, Middle East and Asia) and chairman of the Sage Foundation, said this while adding to the call from government officials for the private and public sectors to work together to invest in and support small businesses and cooperatives to reduce the levels of poverty in South Africa.
“SMEs are the vital drivers of the economy. The right kind of support from government and business could spark a significant change in the trajectory of the local economy as a whole,” Epstein said.
Epstein said large businesses had a huge amount to gain through a more aggressive focus on the development of the SME segment.
“A stronger SME sector gives big business access to more customers, suppliers, dealers and outsourcing long term partners. From the public perspective, more healthy SMEs mean more employment, a wider tax base and general prosperity. In other words, a more stable social environment and a healthier economy. This is the ideal context for large businesses to operate in – it’s the context every CEO dreams of.”
SMES are seen as key to South Africa’s economic prospects.
The National Development Plan envisages that 90 percent of the 11 million jobs targeted by 2030 will come from the small business sector.
– CAJ News
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