SMEs need support to boost employment in SA

The spotlight has been placed on small and medium enterprises (SMEs) to help with South Africa’s high unemployment rate. However, it is difficult for these small businesses to provide employment if they do not receive adequate support.

David Morobe, Executive General Manager of Impact Investment at Business Partners Limited says considering the country’s tough economic conditions, entrepreneurs must be given support to overcome barriers to grow and create jobs.

Small businesses help with unemployment

Morobe adds that entrepreneurs stand a better chance of reducing the overall unemployment rates.

“Each new business venture can lead to the creation of multiple jobs, which is crucial in a context where the economy needs to generate approximately 23,014 jobs per day to accommodate the unemployed population.”

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He makes mention of how Theo Baloyi, Bathu Shoes founder and CEO employs over 400 people and has 37 retail stores across the country. Business Partners Limited awarded Baloyi the 2023 Entrepreneur of the Year and Job Creator of the Year awards for his contribution to the business world.

Baloyi said his aim in establishing his company was to reignite hope and create sustainable jobs. “While I was still in my corporate job, I would come back home to the Alexandra township and would see unemployed youth with no hope just sitting around.”

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Unemployment in the country

Baloyi added he built his business with the youth from his township to create an impact.

“Even if I had only managed to employ three people, I would have achieved my purpose. Even on days when I don’t feel like doing certain things, I always think about the responsibility that I carry for the business, for the community and for the country at large.”

Most unemployed people are the youth and women in the country. According to the latest data by Statistics South Africa (Stats SA), unemployment for women is sitting at 35.8% in the second quarter, from 35.2% in the first quarter.

Unemployment amongst those aged 15-24 years is at 60.8% and for those aged 25-34 years, is sist at 41.7%.

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Key is consistency

Metropolitan Head of Marketing: Product and Channel, Phumla Mavundla said the key to having a successful business is being consistent, amongst other things. Business owners who usually take small but steady steps towards achieving their respective goals, end up making it.

She said some businesses fail because owners were irresponsible with handling the funding they received and did not know ways in which they could grow it. She is of the view that many, if not all business owners, need good financial planning to successfully handle money well and to grow it.

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