Policy implementation crucial for SMEs

Though the latest National Budget has outlined numerous plans to stimulate the development of both the small and medium enterprise (SME) sector as well as entrepreneurs, there still remain significant challenges for job creation. The main challenge for government lies in implementing the policies over the next budget period. The implementation is crucial to allow for growth of SMEs.

Another precondition is a world class broadband infrastructure linked to a stable and consistent electricity supply grid. Unless these requirements are met, growth will remain subdued. The already implemented youth employment tax incentive also has its limitations on certain SMEs, and although it has during the first month benefitted 56 000 youths, it could have a far better reach if the incentive is adjusted somewhat. 

As the incentive is aimed towards lower salary brackets it is not particularly attractive to SMEs in knowledge industries, where the average wage for a young first time graduate is on average R10 000 per month. Employers in knowledge industries will, therefore, need to pay graduates more and could rather opt to employ fewer youths for a self-funded cadet or graduate internship programme. If a business’s turnover is below R335 000 no tax needs to be paid at all, and tax rates for businesses which generate turnover of between R335 000 and R1million has been reduced from 6% to 5%. Instead of two returns per year only one will now be required, which again supports the endeavours to reduce red tape.

Entrepreneur of the Year competition 2014

Entrepreneurs can now enter the 2014 Sanlam/Business Partners Entrepreneur of the Year competition, which aims to honour, benefit and uplift local entrepreneurs. Entries close on 16 June 2014.

But Entrepreneur of the Year® is not just about the competition. It is more than that. Entrepreneur of the Year® is about developing the standard of excellence in entrepreneurship all over South Africa. It is about promoting that excellence as the norm and not the exception.

By showcasing the winners and running the competition, as well as all the workshops with the grand SME conference, the organiser hopes to build the momentum of media activity that usually follows such events and through the media activity showcase the role models that Entrepreneur of the Year® has selected as pillars of the community.

The judges represent different areas of the business community and include a representative from the education environment. The evaluation process runs through three different filtering processes, which ensure that everything is checked to remove any human error or human preference which may creep in from time to time.

The data requested also gives the judges very important and critical information which they need in order to make a complete and holistic judgment on the candidate being reviewed. The judging process is then completed through an interview with each finalist to ensure that any questions or issues needing clarification are addressed. Furthermore, site visits are also conducted at times.

For more information click: www.eoy.co.za

Budget speech without surprises

The Minister of Finance presented his annual budget speech on 26 February 2014 but has not unveiled any surprises.

The budget promises that fiscal prudence remains an overriding consideration in the handling of SA’s public finances. Fiscal sustainability is crucial for South Africa. Positive is that the government focuses on  investment spending as opposed to consumption spending. This is key for growth and job creation.

The budget is R1.25 trillion. R1.1 trillion of that is non-interest spending and it will grow to R1.6 trillion in 2016/7 (by 2%).

The budget deficit (consolidated budget) of 4% of GDP expected for 2013/14 and 2014/15 (R153.1bn), narrowing to 2.8% in 2016/17 (medium term budget projections). The figures for the main budget (before extra-ordinary items) are higher. Real growth in non-interest spending will average 1.9% over next three years.

National Treasury is expecting a 2.7% growth rate this year, with consumer inflation sitting at at 6.2% in 2014.

Pravin Gordhan, Minister of Finance, South Africa (Photo credit: World Bank Photo Collection)

Some details:

• The balance of payments will stay in deficit (6.1% of GDP in 2013, 5.5% in 2016)
• Personal income tax will represent 33.8% of total tax, company tax 20%, fuel levies 4.8%, VAT 26.9%, customs and excise duties 8.2% and other 6.3%
• Measures announced to encourage small enterprise development
• Clarity on valuation of company cars for fringe-benefit tax purposes
• Reforms to tax treatment of the risk business of long term insurers
• The implementation of the carbon tax is postponed by a year to 2016 to allow for further consultation
• Excise duties on alcoholic beverages and cigarettes will increase by between 6.2% and 12%
• Increases in the general fuel levy (12c) and the Road Accident Fund levy (8c) by 2 April 2014. This will push up the general fuel levy on petrol to R2.25 per litre and R2.10 per litre of diesel.

Click here: [Budget Speech 2014]

Using social media for sales

The rise of social media brings a new dynamic to the sales environment of any organisation. It is all about connecting with people and building relationships.

Using popular social media networks such as Twitter, LinkedIn and Facebook makes businesses more accessible, more personable and enables them to maintain long term connections. Social corporate responsibility management is the process for monitoring, engaging in and managing conversations and relationships with existing or prospective customers and influencers across social media channels.

By integrating social media with your social corporate responsibility management software, you will be able to foster communities and engage in conversations that will build meaningful relationships. Existing customers keep coming back and new customers keep coming in.

Social Media Outposts (Photo credit: the tartanpodcast)

Top social media tips for sales people are :

• Establish a presence on Twitter: Doing keyword searches on Twitter helps you to find people talking about the issues your business is interested in and this could lead to a potential sale.
• Unlock sales opportunities within LinkedIn: By engaging with LinkedIn members, companies can achieve a wide range of sales and marketing objectives.
• Gain customer insights from Facebook: It allows for instant information about customers and possible sales opportunities.
• Establish a Yammer group for sales teams: This internal social network allows for structured business conversations among sales teams concerning opportunities and leads.

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