Chairperson, Cope is concerned about studies that point to a significant decline in the number of successful small businesses in the country - a sector which, according to the Minister of Finance, employs 68% of South African workers. These are businesses that employ fewer than 50 people. This makes the small business sector clearly the most important originator of jobs in South Africa.
If we take that as a structural reality of our economy, we need to be very concerned about some of the worrying trends that have emerged in recent times. We also have to determine what the root causes of these trends are and how we can reverse them.
Studies reveal that between 2001 and 2011 there was a consistent number of small businesses - about 2 million - although there was a relevant stagnation in this sector. It was only during the economic boom of 2004 to 2006 that the number of small businesses increased slightly to about 2,4 million. However, since 2006 there has been a sharp decline, by 18,2%. This means that approximately 100 000 small businesses have closed their doors each year, bringing the total number of small business closures over the past five years to 440 000.
If you assume that the typical small business employs 12 people in addition to the owner-manager of the business, it means that the revival of this sector could potentially create 5,3 million jobs.
Cope believes that one of the root causes of this worrying trend is a lack of entrepreneurial skill, which needs to be a key priority in our human development strategy. Cope calls for the Minister ... [Time expired.]