By Noko Mashilo
Paul Jacobs, economic developer and city planner for his ward committee in Eden Park, Ekurhuleni, credits his recent training in local government and ward committee structures with expanding his perspective, including how to help SMMEs grow. After being elected to his position, Jacobs undertook the training, which he says has greatly assisted him in managing the economic portfolio of his ward. “I realised the importance of public participation during my training. Unfortunately, our community is not actively involved in decision-making processes that directly impact their lives.
Many people are unaware of their rights and the benefits available to them,” Jacobs, who is also the founder and CEO of the Business Forum Eden Khoza. The forum’s mission is to support SMMEs and promote long-term economic growth in the township. “Our area has been excluded from mainstream economic activities. We don’t even have an economic hub. Our people are left to operate like informal traders, without the necessary support,” Jacobs explained.
In partnership with Family Tree, an agency under the Gauteng Economic Development Department, the forum has signed a memorandum of understanding aimed at helping entrepreneurs comply with regulations and better understand their industries through various training initiatives. “We’re working together to provide training that enables our entrepreneurs to run profitable businesses in the community,” Jacobs said. The forum has already attracted over 200 members.
Although still in its early stages, it has made progress, including repainting several spaza shops to boost brand awareness. “We’re also preparing our entrepreneurs to apply for stock, machinery, and equipment, but accessing financial loan facilities remains challenging due to stringent requirements,” Jacobs noted.
He added that the forum was pushing for a combination of loans and grants to be made available for grassroots businesses. “You can’t expect local entrepreneurs to take out loans they can’t repay, especially with collateral requirements.
The government needs to revisit this legislation. We’ve submitted numerous applications for permits, but the response from the municipality and relevant departments has been slow,” Jacobs said. Commenting on the recent SMME compliance campaign Qondis Ishishini Lakho (Fix Your Business) in Tembisa, Jacobs criticised the process for being overly bureaucratic. “The act is not effectively supporting township businesses due to excessive red tape. You can’t expect compliance with trading permits when the process is so complicated. It needs to be amended,” Jacobs argued.
He further emphasised that the government should engage directly with local communities to understand their challenges and make it easier for people to start businesses. “Right now, it’s all about compliance. But compliance for what? We need a different approach that truly addresses the needs of our people,” he concluded.
