As South Africa gears up for the 2017 National Budget Speech in anticipation for Finance Minister Pravin Gordhan to deliver Government’s expenditure and focus areas for the year ahead, we sat down with a few of the 2016 Entrepreneur of the Year® competition winners to obtain their expectations for the upcoming speech.
Michael Roberts, MD of Khonology and 2016 Job Creator of the Year:
“The budget speech has a direct impact on small and medium enterprises (SMEs) as the outcomes and policy decisions will dictate yearly strategies and the ability to manage a business’ risks and position it for further growth. The policy outcomes will also determine the tax impact on payrolls and company liabilities.
“I hope that policies introduced this year will reward companies for taking on additional capital to accommodate the growth of businesses within South Africa.”
Meisie Nkosi, Small Business Entrepreneur of the Year and MD of Bella Bonni:
“I hope to see revolving funds for SMEs with less red tape, an improvement on infrastructure development in energy, roads and water, as well as a tax break for SMEs.
“The Budget Speech can assist a business with future planning and help predict whether the business can expand or not. For instance, key outcomes around issues such as tax and processes to minimise red tape, can have a direct impact on the bottom line of a small business, and in turn, its growth and survival.”
Johan Eksteen, MD of Agricon and overall Entrepreneur of the Year winner:
“I hope to see tax relief for small businesses, incentives and support to increase exports and plans to promote production in order to create more jobs in South Africa. But ultimately, local entrepreneurs need to focus on the positive outcomes of the speech in order to pin point where the opportunities lie.”
Budgeting 101: How should entrepreneurs prepare their 2017 budgets?
“Firstly, business owners should manage their cash flow effectively and address cost containment in line with cash flow ability. Secondly, business owners need to work with capital correctly as it is the growth enabler needed within a business.”
“Business owners should be aware of the risks within their business, as well as budget slightly above anticipated costs to cover unforeseen spending. Budget planning should also be revisited regularly.”
“Know your business’ figures as this will ultimately allow you to effectively measure its performance and set goals for the year ahead.”