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Help for small businesses

State of the Nation Address

Government will be giving entrepreneurs a boost which also opens a gap for job creation.  

President Cyril Ramaphosa says government will this year focus on expanding the small business incubation programme.

The incubation programme provides budding entrepreneurs with physical space, infrastructure and shared services, access to specialised knowledge, market linkages, training in the use of new technologies and access to finance.

“The incubation programme currently consists of a network of 51 technology business incubators, 10 enterprise supplier development incubators and 14 rapid youth incubators. 

“As part of the expansion of this programme, township digital hubs will be established, initially in four provinces, with more to follow,” said the President when delivering his second State of the Nation Address, in Parliament recently.

The President said it was expected that the hubs will provide most-needed entrepreneurial services to small and medium enterprises in the rural areas and townships - but more especially to young people who want to start their own businesses.

The specific focus on the small business incubation programme was due to the role small businesses play in stimulating economic activity and employment and in advancing broad-based empowerment.
“Our greatest challenge is to create jobs for the unemployed of today, while preparing workers for the jobs of tomorrow,” he said.

Tax Incentive

“We have come up with great plans, platforms and initiatives through which we continue to draw young people in far greater numbers into productive economic activity through initiatives like the Employment Tax Incentive.

“This incentive will be extended for another 10 years,” said President Ramaphosa.

Government will also intensify the “buy South Africa” programme.

“..We will pursue measures to increase local demand through, among other things, increasing the proportion of local goods and services procured both by government and the private sector.”

He said increasing local demand and reducing the consumption of imports is important because it increases the opportunities for producers within South Africa to serve a growing market.