Head of enterprise development at FNB Business, Heather Lowe, said that the Budget Speech will not only contain important information for individuals, but for small medium enterprises (SMEs) as well, as in the past regulatory amendments have been made during the speech, which can have far reaching consequences for small businesses.
There are five areas where the SME owners should pay attention during the Budget Speech this week, according to FNB.
1. Tax Policy: There have been several reforms to tax policy over the years which have sought to minimise the effect of tax on small businesses. Lowe said that it will be interesting to note whether or not the process for acquiring a tax certificate could be simplified.
2. Funding for Ministry of Small Business Development: The Ministry of Small Business Development assists small businesses, one of the important things to look out for in the Budget Speech is how this will be funded.
3. National Development Plan (NDP) updates: The NDP forms a vital part of South Africa’s economic development, and any decisions made with regards to the NDP could have a direct impact on SMEs.
4. Infrastructure investment: SME’s depend on sub-contracting deals as part of their business, and therefore it will be important to take note of what infrastructure programmes the government has on its agenda, as this can have a direct and indirect impact.
5. Procurement: In past years there has been a move towards an inclusive procurement environment, according to Lowe, which has “given SMEs access to the supply chain of major industries.”