Klue wants a small business ministry

Australia and the UK had such a ministry, the institute's chief executive, Stiaan Klue, told MPs during a public hearing on on this year's fiscal framework. In the Australian model, a small business commissioner supported the work of the minister.

In SA, at present, three ministers - finance, economic development, and trade and industry - shared the responsibility for small business support. He said the system could be more effective if it was centralised.

While welcoming the measures announced in the budget to promote small business, such as raising the corporate tax turnover threshold from R14m to R20m, revising the tax structure and reducing the compliance burden, the association was disappointed that the Treasury did not offer further relief and incentives for the sector.

"As the National Development Plan points out, the small business sector is a key sector in the economy that makes the greatest proportional contribution to job creation," Klue said. "It is disappointing that the budget did not contain any further relief mechanism/s or incentives aimed at these businesses," he added.

Klue said government should invest more readily in incentives and infrastructure to support small businesses and make tax policy reforms that are in line with the ever-changing business landscape.

"Red tape and costs that allow small businesses to become, and remain, tax compliant hamper entrepreneurship. This doesn't help the economy because it cripples the job-creation (potential) of small businesses," he said.

Source: Business Day via I-Net Bridge