New SMME department under fire

MPs came down hard on the Small Business Department for not meeting with major retailers to establish how the state can help SMMEs in the sector.

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Johannesburg - A tussle is brewing between the new national department formed to serve small business, and the parliamentary committee that oversees it.

This week the Parliamentary Portfolio Committee on Small Business came down hard on the Small Business Department for not meeting with major retailers to establish how the state can help SMMEs in the sector.

The department is meant to help build the sector, which has been identified by the ruling ANC as one where the country could create jobs in large numbers.

“It is unbelievable that since its inception, the department has not consulted with the sector in order to determine what was required in order for Small, Medium and Micro Enterprise (SMMEs) companies as well as cooperatives to enter the retail market in a sustainable manner,” said committee chairperson Ruth Bhengu.

The sentiments followed the parliamentarians’ meeting with head of Ackerman Pick ‘n Pay Foundation, Ms Suzanne Ackerman-Berman and Pick ‘n Pay buyer, Mr Paulo Peereboom on Wednesday.

They told the committee that while there was a “sustainable” market for SMMEs and cooperatives, they were not able to utilise their businesses because they lacked capacity.

Ackerman-Berman told parliament that instead the small to medium enterprises did not have financial resources to increase their production volumes.

Their submission was however met with contempt by the department which said in its year of existence it had managed to reach out to SMMEs and establish several programmes to assist them.

The department’s minister, Lindiwe Zulu, told Independent Media that big business shouldn't be pointing the finger at the government because they also had a crucial role to play in the growth of SMMEs, while also denying that they had not consulted with the retail sector.

“The bottom line is that these retail sector has been met in different ways. Sefa and Seda have met with them, even long before the department was formed.

“However, the fact that we have not met Pick n Pay does not necessarily stop them from doing what is right. As we sit, they know exactly what they are supposed to do in order to help SMMEs, so they can’t turn around and say they are not able to do 1-2-3 because they have not had consultation with our department,” she said.

It is likely that Zulu’s reply to the portfolio committee would carry the same tone.

The committee which said it was “unimpressed” with her department, the Small Enterprise Development Agency and Small Enterprise Finance Agency, and wanted the entities to coordinate consultations with stakeholders in the retail sector and report back to parliament.

Bhengu said this would enable parties to “coordinate consultations between (the department's) entities and the sector”.

Zulu maintained that they were doing enough for the sector which has the responsibility of changing the grim unemployment figures.

“The department is a year old and it’s been expected to support at the level and scale which they expect is a bit unfair. Also, they must understand as Pick n Pay, they cannot depend on government on how much SMMEs are supported, everybody has a role to play, there is no us and them.

“They need to open up the market in order for SMMEs to grow. Our responsibility is to create a conducive environment for those businesses to grow,” she said.

In its discussion documents ahead of the NGC, the ANC reiterated its commitment to SMMEs, drafting a number of interventions. These include a recommendation for the NEC to endorse 30 percent of public sector procurement from SMMEs and co-operatives.

It also said more financial resources would be earmarked to develop infrastructure in neglected areas for the benefit of community-based enterprises.

Labour Bureau