Small businesses are commonly hyped as engines for economic growth. But for the engine to ‘rev’ perfectly it has to be well-oiled.
Oddly, South Africa expects its small businesses to blossom into real engines for economic growth yet overlooks the spanners thrown in their works. Plainly, there is one accreditation too many for small businesses – some with weird acronyms.
Transform SA discovered that small businesses regarded dealing with paperwork a big distraction, in a telephone survey involving 50 small entrepreneurs. Asked about their perception of the effect various forms of accreditations that they had to undergo on their operations, 70% revealed that they were a hindrance, 30% did not find a problem.
Every small business has to undergo a maze of accreditation formalities before it can be deemed legally fit to function. If the cost of this was affordable, this procedure would have been rational. However, it is way out of pocket for entities constrained of operating capital to manage even basic necessities. What about reducing the cost of some procedures for small businesses?