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Ebrahim-Khalil Hassen
5 August 2015
http://zapreneur.com
ekhassen@gmail.com
Presented at: Understanding and Engaging with ...
2
One million new small business? Five million jobs by 2020?
More Employers = More Jobs
National Development Plan Takes a ...
3
South Africa’s
Established
Ownership Rate for
2014 is 2,68%. Out
of a sample of 69
countries, we rank
at 67.
So how do we create many
small businesses, in an
economy with such low survival
rates for businesses?
4
Venture capital role through
DFI’s
Intermediary role in linking
markets
Deeper tax relief for small
businesses
Procurement...
6
Is an initial redistributive efforts needed before markets become enablers of
mobility?
Who benefits from current govern...
 A case can be made for a wider and bigger structural reforms focussed on small
business
 Will it create a million new s...
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Small business, poverty and inequality in south africa uct

Presentation delivered at Understanding and Engaging with Poverty and Inequality in South Africa 3—7 August 2015, Cape Milner Hotel Cape Town. Hosted by PSPPD and UCT.

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Small business, poverty and inequality in south africa uct

  1. 1. Ebrahim-Khalil Hassen 5 August 2015 http://zapreneur.com ekhassen@gmail.com Presented at: Understanding and Engaging with Poverty and Inequality in South Africa 3—7 August 2015, Cape Milner Hotel Cape Town 1
  2. 2. 2 One million new small business? Five million jobs by 2020? More Employers = More Jobs National Development Plan Takes a Similar Approach
  3. 3. 3 South Africa’s Established Ownership Rate for 2014 is 2,68%. Out of a sample of 69 countries, we rank at 67.
  4. 4. So how do we create many small businesses, in an economy with such low survival rates for businesses? 4
  5. 5. Venture capital role through DFI’s Intermediary role in linking markets Deeper tax relief for small businesses Procurement set asides Shift Resources Introduce land holding agreements for small holder farmers Deeply contested intervention, but holds big potential to reduce poverty and extend markets Markets in Traditional Authority Areas Possible routes through tax systems – incentivise big companies Procurement system, but will have smaller impacts Address value chains Supporting the ‘integration economy’ – build new value chains in the knowledge economy. Creating and allocating funds to franchising and other systems. Change Market Relations 5
  6. 6. 6 Is an initial redistributive efforts needed before markets become enablers of mobility? Who benefits from current government programmes? National Development Plan does not have a plan for small business development, although it is seen as crucial to reducing employment. Agency vs. structure- Small Business ministry (so far) focussed vey much on agency Understanding the distinction between earned and inherited wealth(Pikkety) People want secure employment, not insecure ownership (Banerjee and Duflo
  7. 7.  A case can be made for a wider and bigger structural reforms focussed on small business  Will it create a million new small businesses?  Unclear if the unofficial target will be reached  However, the reform process increases participation and widens ownership  Potentially offers route for employment growth in a low-growth economy  Small business interventions important, but need to be conceived as part of a wider developmental plan. 7

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