DA seeks 'one-stop' business aid. Check it out:
(Business Day (South Africa) Via Thomson Dialog NewsEdge) DA seeks 'one-stop' business aid Political Correspondent CAPE TOWN A one-stop shop for enterprise development with a national branch network would go a long way to addressing the institutional duplication and confusion in government services among small businesses, Democratic Alliance (DA) deputy trade and industry spokesman Les Labuschagne said yesterday.
He was speaking on the release of the DA's Helping Small Business policy document which proposes the consolidation of the plethora of existing institutions and services into a single, focused entity.
Small business development is not on track in SA, Labuschagne said at a media briefing. There is a multitude of small business development agencies with limited geographical coverage and mandates that complicate small business development rather than promote it. Institutions operating in this field included the microfinance Apex Fund, Khula Enterprise, the National Empowerment Fund, the Industrial Development Corporation and the Small Enterprise Development Agency (Seda), the only one with an extensive, national footprint.
The problem with government's response is not the range of services it has sought to provide but its lack of success in implementing them, Labus-chagne said. The vast array of small business development institutions out there is daunting. There is no sense that government seeks to co-ordinate, or promote co-operation or proper communication among the various small business development agencies, he said. While the coverage in terms of product or service offerings seem to be fairly comprehensive, they often do not seem to be accessible to people living outside main metropolitan areas and people who do not have access to the internet.
There is room for simplification of the process, for co- ordination and integration, he said.
Government established Seda in an attempt to overcome problems of duplication but this was not the answer. Its offices were often not accessible and it did not appear to offer printed information pamphlets or walk-in services to potential entrepreneurs without an appointment.
Labuschagne said a one-stop shop for enterprise development with broad geographical representation could contribute to small business development and the fight against unemployment.
Small businesses were estimated to generate 40% of all new jobs compared with only 10% by the large, established businesses.
The aim of the one-stop shop would be to provide guidance and mentoring, he said. It would recruit potential entrepreneurs to establish small businesses and provide support to them; provide potential entrepreneurs with access to enterprise development services in an integrated manner; and broker access to, and facilitate surety for, enterprise development services, products, and assistance packages.
Labuschagne said the branches should be staffed by trained and qualified enterprise development consultants.
Copyright 2006 Times Media Ltd.. Source: Financial Times Information Limited - Europe Intelligence Wire.
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