The 2016 budget can only have a meaningful impact if it nurtures an environment to stimulate the growth of the small to medium-sized enterprise (SME) sector, according to Etienne Retief of the South African Institute of Professional Accountants (Saipa) and SA Revenue Service (Sars) stakeholders committee.
While acknowledging that the National Development Plan (NDP) targets 11 new jobs by 2030, mainly created by small businesses, Retief says there is need to take action.
One of the ways in which he suggests small businesses growth can be stimulated is through strategic infrastructure spending that favours the awarding of contracts to SMEs, as well as tax and other incentives to SMEs.
Retief contends: “Excessive red tape and onerous compliance should be further eased for SMEs, areas in which government has already made some headway. Our tax and labour legislations and the initiatives by the Department of Trade and Industry still fail to recognise services with regards SMEs.”
