The R6.5 billion SME allocation must be maximised

Government must ensure that the R6.5 billion allocated towards the development of small and medium enterprises (SME) is optimised.

This was expressed by Lee Bromfield, CEO of Core Lending Products at FNB Business.

While being complimentary on Government’s efforts, Bromfield cautions that it’s essential to ensure that the investment is utilised systematically to generate maximum return.

The allocation was announced by the finance minister Pravin Gordhan in his 2014/15 national budget speech.

Bromfield said “It’s great to see the commitment that Government has shown towards building a sustainable small business sector. The intended investment comes at a crucial time when the small business sector is starting to experience the negative impact of a sluggish economy.”

“At this point in time, South Africa cannot afford to waste a great opportunity to ignite small business growth. To do this, the relevant departments will need to ensure that the country is able to reap tangible benefits from the investment, such as; accelerating economic growth and contributing to job creation,” said Bromfield.

FNB stated that it had seen signs of distress among many small businesses.

“One cannot over-emphasise the need for all sectors of society to partner in building an environment where small businesses can thrive. There’s an urgent need to enabled small business to play an even bigger role towards economic growth and job creation,” concluded Bromfield.

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