2010-03-17 - MAJOR BOOST FOR TOWNSHIP SMME'S

Powering the economy through small and medium business

GEP together with the Department of Economic Development and the Gauteng Office of the Premier, last year launch a programme aimed at revitalising and revamping fledgling small, medium and micro enterprises (SMMEs) located in Gauteng Townships. This is in line with the Provincial Twenty Priority Townships Programme with the Gauteng Enterprise Propeller (GEP) – the provincial SMME support agency delivering on its mandate to provide a one-stop service to SMMEs, especially those located in the established townships around Gauteng.

An initial amount of R50 million was been allocated for the programme over the next three years to provide comprehensive business support to these disadvantaged SMMEs to enable much required sustainability and growth. The initial phase of the programme had commenced in August 2008 in Ekurhuleni Metro Townships, where several SMMEs have already received support through comprising revamp of business premises; marketing tools; and training in business management. It is envisaged that a following-on to this comprehensive support programme may see some SMMEs qualifying for the GEP micro finance support programme which caters for those SMMEs requiring between R10 000 and R250 000. This programme contributes to the broader provincial priorities, in particular:

• Enabling faster economic growth and job creation
• Fighting poverty and building safe, secure and sustainable communities
• Developing skilled and productive people

The challenge for GEP is to ensure that its programmes are geared towards addressing the challenges of the second economy, which is still characterised by high levels of unemployment, lack of skills and general underdevelopment. GEP’s goal is to enhance the provincial government’s efforts to create the necessary conditions to enable those businesses operating on the margins of the economy to become sustainable and play a meaningful role in the economic mainstream.

The townships targeted for Township Business Renewal include:

• Ekurhuleni : Daveyton, Duduza, Katlehong, Kwa Thema, Thembisa, Tsakane, and Wattvile
• Johannesburg : Orlando and Zola
• Sedibeng: Boipatong, Bophelong, Ratanda, Sebokeng, Sharpville,
• Tshwane: Atteridgeville/Saulsville, Mamelodi, Soshanguve, Refilwe, Rethabiseng.
• West rand: Kagiso, Mohlakeng, and Munsieville

It has long been appreciated that the main driving force propelling the economic engine of both developed and developing countries is the Small, Micro and Medium Enterprise sector. What is not so immediately apparent, however, is how to stimulate this sector, particularly where there are high levels of illiteracy and lack of skills.

Naturally, the success of GEP in meeting this enormous challenge will depend on the highest level of support from all spheres of government. Furthermore, GEP will also work closely with local government to realise the common vision and strategy agreed upon with mayors and municipal managers to make Gauteng an integrated, globally competitive city region. Our ultimate goal is to enable SMMEs to contribute to economic growth in a manner which makes it possible for us to fulfil our commitment to halve unemployment and poverty in the next decade.

Enabling SMMEs so that they are increasingly in a position to tender for government work is an integral part of the province’s broad-based black economic empowerment strategy for the province in line with national legislation and policy.

The CEO of GEP, David Morobe has always expressed his confidence in GEP’s ability to deliver on its mandate. “We are fortunate in that this initiative hinges on the broader Priority Townships programme which has been underway over the years. The service must reach entrepreneurs in townships across the province,” said Morobe.

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“Many entrepreneurs and budding businesspeople may have the desire and the innate ability to succeed, but lack the fundamental business skills, opportunity and support”

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