The Small Business Institute (SBI) has called on President Cyril Ramaphosa to place small businesses at the centre of his growth agenda for the country at his upcoming State of the Nation Address (SoNA) on February 6.

The SBI represents thousands of small businesses, chambers of commerce and business forums.

“The past year has been dreadful for small business owners. But, as always, they showed amazing resilience and confidence for themselves, their families and the country in the face of odds of rising criminality by the business mafias and protection rackets, slow growth and unscrupulous informal traders,” SBI CEO John Dludlu said on February 5.

“Although the past few years have seen a concerted effort to cut red tape, such as appointing a special presidential adviser, we have noted a return to old fragmented ways by organs of State, layering new red tape on existing ones,” he added.

The SBI has asked Ramaphosa to announce steps to clamp down on the mafias which are terrorising businesses, especially micro, small, and medium-sized enterprises (MSMEs) and cooperative owners.

The SBI wants clear time lines to be set for restructuring the MSME funding agencies, and for government to step up the closure of illegal spazas, with action taken against those found to have been behind last year’s deaths.

These recommendations are in response to recent incidents where food-borne illnesses, traced back to certain spaza shops, resulted in the tragic deaths of more than 20 children. In light of these events, Ramaphosa mandated that all spaza shops and food-handling facilities register with their respective municipalities within 21 days, warning that non-compliance would lead to closures.

The SBI has asked for government to establish a realistic target for the registration of spaza shops and to work with business associations already operating within that ecosystem.

To support job creation, the SBI called for targeted financing and non-financial support of medium-sized enterprises with better than average potential to create employment.

It also asked for support for export-oriented medium-sized companies, and an exemption of MSMEs and cooperatives from sector wage settlements negotiated with large companies in bargaining councils.

The SBI also called for a clear commitment to fixing ailing municipalities working with business.

“While SBI supports the introduction of competition in freight logistics, energy and other sectors, we wish to caution against replacing State monopolies with private sector ones.”

“We also hope [Ramaphosa] provides more detail on the Transformation Fund, and that this fund does not become a fund of consultants, auditors and lawyers,” Dludlu said.