This past week, the Gallagher Convention Centre in Midrand became the epicentre of South Africa’s entrepreneurial ecosystem as the National Presidential MSME & Cooperative Summit and Awards 2024 unfolded. Dubbed the premier platform for small business excellence, the event brought together policymakers, industry leaders, and trailblazing entrepreneurs under one roof. The shared goal? To transform the country’s small business landscape and fulfil the bold ambition of creating one million startups and SMMEs by 2030.

At the heart of the summit was the recognition of SMMEs as the backbone of South Africa’s  economy. Small enterprises already account for 90% of businesses across Africa, contributing 50% to Africa’s GDP, yet the potential remains largely untapped. With unemployment in South Africa at 32.1% in Q3 2024 and 8 million people out of work, the urgency of empowering small businesses as job creators has never been greater.

Delivering the keynote address, Minister of Small Business Development Stella Ndabeni-Abrahams emphasised that entrepreneurship must be the cornerstone of South Africa’s inclusive growth agenda. She highlighted the National Development Plan’s (NDP) projection that 9 million of the 11 million jobs needed by 2030 must come from small enterprises.

“Small businesses must be at the centre of our economic policies if we are to achieve the inclusive growth we envision,” said Ndabeni-Abrahams. She stressed that both the government and the private sector have a shared responsibility to foster a thriving entrepreneurial ecosystem.

President Cyril Ramaphosa echoed these sentiments during the awards ceremony, underscoring the pivotal role of small businesses in fostering innovation and driving job creation. “Micro, small, and medium enterprises and cooperatives are integral to the future of our economy. They create livelihoods, provide vital services, and contribute to building a more equal and prosperous society,” he said.

The Minister outlined several key interventions aimed at addressing systemic challenges, including:

The National Integrated Small Enterprise Development Strategic (NISED) Framework, which serves as a roadmap for collaboration and progress.

The establishment of the Small Enterprise Ombudsman’s Office, designed to protect entrepreneurs from unfair trade practices and operational by April 2025.

The creation of the Small Enterprise Development and Finance Agency (SEDFA) to bridge funding gaps and avoid past mistakes made by similar agencies.

Access to funding remains one of the largest hurdles for South African entrepreneurs. The International Monetary Fund estimates a R350 billion funding gap, underscoring the need for innovative financial solutions. In response, the government is developing a Fund of Funds in partnership with the private sector to provide critical support for startups and SMMEs.

To further level the playing field, the government plans to repeal outdated legislation, including the Businesses Act, and introduce a Business Licensing Bill to streamline compliance and formalise informal businesses. These measures aim to reduce red tape, a persistent obstacle identified by the Department of Small Business Development (DSBD) as hindering the growth of SMMEs.

This year’s summit coincided with Global Entrepreneurship Week 2024, celebrated in over 200 countries with the theme of “Inclusive Growth and Innovation.” The alignment was intentional, reflecting the global push for entrepreneurship as a vehicle for economic empowerment, particularly among marginalised groups.

To foster a culture of innovation and collaboration, the DSBD announced the creation of a community of practice for Enterprise and Supplier Development (ESD) practitioners, with 45 members already on board. This initiative aims to drive meaningful enterprise development that integrates small businesses into large value chains.

The focus on innovation extended to digital transformation, with commitments to provide entrepreneurs with tools and resources in their native languages and to create platforms that ensure inclusivity in the digital economy. Ndabeni-Abrahams also highlighted the need for South Africa to lead in emerging technologies like artificial intelligence (AI), ensuring the country is not a mere spectator in the global digital revolution.

A key takeaway from the summit was the reaffirmation of the importance of strategic partnerships. The NISED Framework mandates biennial summits to track progress and engage stakeholders on collective goals. Attendees were encouraged to consider actionable steps, posing the questions: “What quick wins and impactful interventions should we prioritise, and what actions must each of us take to bring them to fruition?”

The summit also marked progress on policies that prioritise inclusivity, such as support for spaza shops and informal traders to upgrade their infrastructure and comply with regulations. Additionally, the government is committed to maximising the opportunities presented by the African Continental Free Trade Area (AfCFTA) to open global markets for South African entrepreneurs.

Despite the challenges, the summit showcased a united front in the quest to empower SMMEs as engines of economic growth. The Minister’s address was a rallying call for all stakeholders to work together in creating a thriving entrepreneurial ecosystem that leaves no one behind.

South Africa’s journey to creating one million startups and SMMEs by 2030 is ambitious but achievable. With strategic interventions, strong partnerships, and a relentless focus on inclusivity, the nation is poised to unlock the full potential of its entrepreneurial spirit and pave the way for sustainable growth and prosperity.

Boitumelo Kodisang is the PR & Marketing Coordinator of 22 On Sloane