The UDM aims to unleash the creative spirit inherent in all South Africans by building a world-class economy for sustainable employment for all South Africans through Small Business Development.
The UDM proposes that government must be focussed on job creation and stimulating small business growth, but equally aware, and willing, to responsibly intervene with the economy to open up business and employment opportunities for marginalised people.
The core of this policy is Small Business Development. The UDM’s vision is to vigorously pursue policies that encourage and open up opportunities for individuals, single households, or groups of people to start and sustain their own small businesses. Through these activities they will empower and enrich themselves materially and spiritually, provide employment to others in their communities and enhance the general well being of society. The role of government is to promote and encourage policies that will kick-start business opportunity and enable small businesses to grow and prosper.
This will be achieved with the strong use of supply-side support while carefully opening up to international trade.
The success of the department of Trade and Industry will be determined by the calibre of its officials, and therefore a strong emphasis will be placed on recruiting officials with established business and industrial expertise and competence.
2. Aims and objectives
Firstly, the policy on Trade and Industry aims to fulfil its aim of job creation with a vigorous programme to encourage Small Business Development.
Secondly, the aim is to create opportunities for all South Africans, especially the economically marginalised and disadvantaged, through Equal Economic Empowerment.
Thirdly, this policy aims to create a Global Economic Strategy that is beneficial to all South Africans and serves as a stimulant for the growth of the South African economy and the creation of jobs.
Fourthly, this policy aims to create a coherent Foreign Direct Investment Strategy for South Africa.
Lastly, this policy aims to address the issue of managing the gambling, liquor and lottery industries, in such a way that the negative socio-economic impact of these industries are controlled and reduced.
3. Specific strategies
3.1. Small business development (SMMEs)
The current government is not giving proper attention to Small Business Development as an engine for job creation. The lack of services, or poor quality of service, combined with no access to capital, and a huge regulatory and licensing burden, prevent the growth of small business.
The UDM recognises the key role of international and domestic tourism in job creation. It is estimated that tourism currently contributes approximately only 5% of our GDP, whilst it is possible to double it over the medium term. It is estimated that such growth could create as many as 750 000 jobs. The UDM will therefore actively pursue policies and actions to promote tourism. Greater government resources will be dedicated to develop and market tourism in South Africa and to stimulate the local and international market. The concept of Transfrontier Conservation Areas (TFCAs) or “peace parks”, spanning the borders of countries in the Southern African region should be endorsed by SADC as a regional priority where governments will become the drivers of this concept. The South African government should play a leading role in this process and thereby contribute to increasing tourism to South Africa and the region. Tourist infrastructure will have to be modernised.
3.1.1. UDM Proposals
The UDM proposes that co-operation between institutions and DTI must be strengthened through meaningful public-private partnerships.
In addition the coordination between national, provincial and local departments dealing with Small Business support and financing must be improved through clear, unambiguous management.
The Department will establish a visibility in rural and disadvantaged areas by opening Small Business advice and support centres in all municipalities throughout South Africa, based on the following principles:
220.127.116.11. Firstly, Small Business advice and support centres will be a “One Stop Shop” for all the needs of local small businesses.
18.104.22.168. Secondly, Small Business advice and support centres will focus on six key areas:
• Business Planning.
• Research and development.
• Production and operations.
• Human Resource development.
• Finance for growth.
22.214.171.124. Thirdly, each small business seeking assistance from Small Business advice centres will be assigned to a development adviser.
The Department will possess a strong capacity to monitor and evaluate support systems and to measure the success of Small Business Development.
The Department will investigate and implement measures to reduce the risk profile of emerging small businesses by unlocking “dead capital”.
The Department will actively promote small business to domestic and foreign consumers.
Small businesses will be given preferential access to government tenders, as a further means to assist them to secure contracts and financing.
The current financing agencies, Khula and Ntsika, will be dissolved. These agencies will be replaced by a new small business financing agency, operating according to corporate principles with a commitment from government and the private sector.
The Department will immediately appoint a task team to review all regulatory and licensing obstacles for Small Business Development. These obstacles will be removed, and legislation amended, quickly and responsibly.
The international manufacturing environment is characterised by declining importance in cheap raw materials, cheap unskilled labour, market access and proprietary knowledge, but with increasing importance in gaining and exploiting knowledge. International trade trends indicate declining terms of trade for primary commodities and commodity manufacturers but rising terms of trade for knowledge-intensive manufacturers and services. Therefore, the Department will seek to encourage Small Business Development in urban and rural areas in labour intensive (manufacturing and production), as well as knowledge-based and service orientated, industries and sectors. In rural areas, where the immediate need for job creation is es