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.

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
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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
South Africa’s
Established
Ownership Rate for
2014 is 2,68%. Out
of a sample of 69
countries, we rank
at 67.

4. So how do we create many
small businesses, in an
economy with such low survival
rates for businesses?
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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
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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.  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.
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