JOHANNESBURG - As South Africa prepares for the 2025 National Budget Speech, the focus on small and medium enterprises (SMEs) remains more critical than ever.
This is according to Shawn Theunissen, Founder of Property Point and Entrepreneurship To The Point (eTTP).
He has called for an urgent need for clear, actionable policies that will create a more enabling environment for SMEs.
Shawn believes the 2025 Budget must prioritise practical measures that directly address the challenges facing small businesses, including tax relief, funding accessibility, infrastructure investment, and streamlined regulatory processes.
"We can all agree that the suggested 2-percentage point on VAT will have an astronomical impact not just on the poor but also on small businesses specifically. This is because small businesses make sure that they drive their cash flow and injuring them with additional tax will not be positive for them," Theunissen said.
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On Wednesday, Finance Minister Enoch Godongwana planned to announce an increase of 2 percentage points in VAT during the 2025 budget speech.
However, objections within the Government of National Unity forced the minister to delay his speech.
Critics argue that increasing VAT would come at a dire human cost, especially for the poor.
Small businesses are among the drivers of the economy, but many are experiencing reduced cash flow.
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During the 2025 State of the Nation Address President Cyril Ramaphosa threw his support for the R20-billion transformative fund to be used to assist black-owned and small-business enterprises over the next five years.
Ramaphosa the fund would ‘transform our economy and make it more inclusive’ by empowering black people, women and persons with disabilities, who have been ‘deliberately’ excluded.
Theunissen said there should be a clear indication of how SMEs in such opportunities including public procurement and making it accessible to them