Call for more support for SMEs
Pauline Dikuelo | Friday February 10, 2017 12:11
Government has proposed budget allocation of P570 million for community development projects during the 2017/18 budget presentation.
These projects which are a government initiative to empower local communities will be implemented along Parliamentary Constituency lines with each of the 57 constituencies allocated P10 million each. It is intended that such annual budget provisions be maintained for the rest of NDP11.
Speaking during the First National Bank Botswana’s (FNBB) 23rd budget review seminar, Mampane said SMEs have been proven to be the largest contributors when it comes to job creation thus boost the economy.
“We expected the Budget Speech to inspire us as SMEs, to show us that by the end of NDP11, this is what we should expect so that we can position ourselves to participate in the economy,” he said.
In the past it has been evident that half of the SMEs fail in the first three to five years of establishment while the remaining half that survive continue to operate in conditions of uncertainty that is laden with a highly volatile market, intense competitive rivalry, shortage of serviced land, lack of marketing skills, low technology uptake and inherent biases against SMEs.
According to Mampane, as government has stated that they are not responsible for creating jobs, the SMEs sector might be the solution to this suggesting that government needs to loosen regulations, promote the ease of doing business by reviewing the turnaround times of getting licences, permits, requirements when getting funds as well as reduce red tape, amongst others.
“Most of us expected the speech to address these issues and capitalise on the SMEs to curb the high unemployment rate. Government should use already existing structures like CEDA and LEA rather than pumping money into new projects which also might not be beneficial in the long run,” he said.
He further urged the government to change the procurement system as well as unbundle mega projects so that SMEs can be able to participate.
He noted that industries like manufacturing and services can help boost the economy and curb the high unemployment rate.