The point that Small, Medium and Micro Enterprises (SMMEs) are the key to job creation and a source for economic growth has been made several times and I am sure there can be no sustained argument against that view. Government on their part have created multiple support organizations such as the Small Enterprises Development Agency, Umsobomvu Youth Fund and Khula Enterprise Finance Limited, with a view to creating a vibrant small business sector. The government believed that by providing support to the SMMEs, employment creation would follow naturally.
The most pertinent question, though is to what extent has such investment in SMME development yielded the much desired employment opportunities. Judging from the jobless economic growth we have seen in the last few years, the approach is definitely not working. Entrepreneurs are in business to make money and their priority is just that. We may not want to hear this but job creation, to put it crassly, is just a byproduct. Adam Smith explained how selfishness and self interest can lead to economic wellbeing and prosperity.
Now, how do we place job creation as a priority item on the agenda of entrepreneurs? In other words, how do we make job creation an opportunity fore entrepreneurs to make money? There should be tax incentives for businesses that create employment. The incentives should take into account the quality of jobs created measures by the salary paid, the number of jobs created and the sustainability of those jobs measured by the period of employment. This will encourage entrepreneurs to prioritise employment creation.
By Dumisane Mpafa
SMME Solutions