Following a recent forum discussion on the bigger questions facing both the South African government and small businesses with a B2B strategy, it has now been revealed that further research into the need and demands of sme's will now be done.

Personally I have always been in favour of research based decision making on all levels and this move by the government should be seen as a step in the right direction as long as the decisions made and subsequent actions and strategies that lead from the government takes into account the many failures and shortfalls of previous small business support and funding initiatives at government level.

Your comments welcome.

Ben
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This report by Thapelo Sakoana from BuaNews:
A council established to advise government on issues affecting small businesses is currently conducting research to unearth the real challenges facing the sector.

Members of the Small Business Advisory Council were appointed by the Trade and Industry Minister Mandisi Mphahlwa in August last year.

Council convenor and publisher Thami Mazwai told the media in Pretoria on Wednesday that their research would be done annually to reveal the analysis of factors constraining small business development.

"Of importance is the fact that the council will be working closely with national research institutions, public and private, and with universities to ensure that Small, Medium and Micro Enterprise (SMME) development is knowledge driven," he said.

Mr Mazwai said this research would be carried out annually to monitor issues affecting entrepreneurship and business development in the sector.

The council, he said, comprised experts from various fields in the sector, which positioned it to advise the government broadly given the diverse skills.

Coordinator for the research sub-committee, Dr Evelyn Rabaji said the study would assess the impact of institutions established to help small businesses.

"We need to find out to what extent these institutions are able to effectively provide services to ordinary people. Citizens also need to make an input in terms of their needs," she said.

Dr Rabaji said the research would be completed as soon as possible.

Council member and Vice Chancellor for the University of Venda, Professor Gessler Nkondo said they would also advise the minister on issues of enterprise training.

This, he explained, to strike a balance between the skills in the first and second economies.

Advocate Sipho Mseleku, who is also the chief executive for the Chamber of Commerce and Industry South Africa, said the council would engage extensively with stakeholders in the SMME sector.

This included enterprises led by women and youth as well as chambers of commerce.

"In advising the minister and government, we need to formulate an input based on what they [stakeholders] say.

"In advocating their issues, we must know what they want, so these engagements will help us," he said.

Challenges facing small businesses in the country include access to funding, business opportunities and markets, among other, he said.

He added that there was a need to unearth factors hampering access to finance in a country with funding institutions established under the Department of Trade and Industry.

Adv Mseleku said they would also look at models used in other countries for the development of small businesses.

Since its inception, the council met in December last year and early this year to map out a way forward in implementing its mandate.

The council would submit quarterly reports to the minister about the implementation of it mandate which will culminate with the annual report towards the end of the year. - BuaNews
By Thapelo Sakoana, tel: (012) 314-2287