Back
Blog | News

Key takeaways from the President’s State of the Nation Address for SMEs

By Shephard Dube

|

February 14, 2020

Capetown – President Cyril Ramaphosa used his State of the Nation address on Thursday to demonstrate the government’s success in promoting the commercial sector, SMEs in particular. There are three key takeaways from his speech for business owners.

Rapid increase in power generation

The ongoing power outages are an issue affecting everyone in the country. The President noted this problem and announced that the government will allow private power generation to assist Eskom in meeting the demand for electricity in the country. This is a welcome development for businesses, especially SMEs. In this era of digital economy it can prove impossible to operate without power.

Six pronged plan to tackle unemployment

The President went on to announce a six-pronged plan to deal with the issue of youth unemployment. The plan includes focusing on skills development, expansion of the existing Youth Employment Service, and reallocation of 1% of the national budget to a youth employment initiative.

The implementation of this plan will be a big win for SMEs. Many are struggling to find skilled and affordable talent locally, sometimes resorting to employing foreigners which can be costly. See the full plan here

Digitizing compliance

The main highlight of the state of the nation address was the announcement of the full digitization of company incorporation and corporate tax system. The Companies Intellectual Property Commission (CIPC) and the South African Revenue Services (SARS) are now fully digital. They have been made fully accessible through online platforms and company incorporation is now achievable within one day. This is a big win for SMEs who may not have the capital to hire professionals to handle their basic compliance needs.

At Bridgement we Improve your cash flow in under 24 hours. Access between R10,000 and R5,000,000 in finance with a Bridgement facility.

Apply in 2 minutes, funds in your account within hours. No paperwork or documents required. You’ll get on with your business in no time.

Recommended

Corona virus (COVID-19) social display picture
Industry News | Blog | Business Advice
Make your .ZA site compliant with Covid-19 regulations for free, in seconds April 03, 2020

If your business’s website domain is registered in the .ZA namespace – which, considering over 1.3-million domains currently are, is highly likely – you’ll know about the recent government regulations issued in terms of the Disaster Management Act. Namely, that all South African website owners must provide a link to the Department of Health’s Covid-19…

State of the Nation address Revolving Credit good credit score to get small business loans
Financing | Business Loans | Blog
What is a good credit score to get small business loans? January 27, 2020

Credit scores are an important factor for lenders in determining to offer a small business loan to an applicant. To lenders, your credit score reflects how well you handle money. They may interpret a low credit score as an applicant not possessing the proper skills to manage finances.  Can I get a business loan with…