20 October 2009

ECDC media release

Eastern Cape SMME Summit kicks off at Christian Centre tomorrow

Over 300 Small Medium and Micro Enterprises (SMMEs), existing businesses and associations from across the Eastern Cape will gather for the third annual SMME Summit and Business Unlimited Expo at the Christian Centre tomorrow.

The annual summit is organised by the Eastern Cape Development Corporation (ECDC), the Department of Economic Development and Environmental Affairs (DEDEEA), the University of Fort Hare (UFH) and the Small Enterprise Development Agency (SEDA).

The summit will bring together participants from all spheres of government, Non-Governmental Organisations (NGOs), entrepreneurs from big businesses, rural and urban SMMEs, academics and students to share experiences on best practices, engage and debate issues that affect the sector, as well as networking.

"The main objectives of the summit are to create a platform for dialogue and public debate on pertinent issues relating to SMME development, to highlight the role played by SMME in the economy, to provide a platform where SMME entrepreneurs, government, donors, academics and other experts in the SMME sector interact.

"It will also provide an opportunity to highlight and disseminate innovative and cutting edge information on best practices in the SMME sector and facilitate access to information," says ECDC enterprise development services manager Mpumi Fundam.

Fundam says the targeted economic sectors are agriculture, manufacturing, tourism, Information Communication Technology (ICT), forestry, services and the creative industry.

ECDC will ensure the implementation of the conference resolutions because it is well-positioned to drive enterprise development programmes geared towards meeting the government's goal of accelerated economic growth.

Fundam says the summit exists because the development of SMMEs offers potential for sustainable solutions to the poverty and unemployment problems in the province. The sector is believed to be the biggest contributor to employment creation and economic growth.

Fundam says one of the prerequisites for developing this sector is promoting entrepreneurship and support entrepreneurs that will take risks, break new ground, innovate and create new products. Statistics indicate that for every 100 adults in South Africa, only about five own or manage to start-up their own businesses.

"This low entrepreneurship activity rate is a cause for concern. Added to this low activity rate, only 20% of SMMEs in the country reach their fifth birthday. This low activity and high failure rate in the SMME sector poses a challenge to government, private sector, tertiary institutions to reach out to communities and develop entrepreneurs. The summit provides a platform to facilitate dialogue and robust debate on entrepreneurship and SMMEs in particular," explains Fundam.

ENDS

For more information contact:

Mpumi Fundam

ECDC

Tel. 043 704 5600

Email. mfundam@ecdc.co.za

For ECDC media relations:

Lunga Mtshizana

SMG Africa

Tel. 043 726 8833

Cell. 083 618 7557

Email. lunga@smgafrica.com