Dear Portfolio Committee on Small Business Development,

I hope the message finds everyone well. Thank you for taking the time to read my message.

INTRODUCTION
My interest in the MSME Ecosystem is due to two facts: first, I operate a micro enterprise. Secondly, my Business provides Commercial Capability Development and Commercial Capacity Building services to MSMEs, see my website for details - www.uniqaxxess.co.za More recently, I've developed a value proposition aimed at the MSME support service providers regarding the Commercial Capability and Commercial Capacity topic. I've reached out to engage SEDFA about my proposition, without a response.

WHAT
Our secondary research provides evidence that despite a large number of Enterprise and Supplier Development Programmes (ESDs) and non-Financial Business Support Programmes (NFBSPs), South Africa's MSME failure rate remains stubbornly high.


SO WHAT
This indicates that many programmes do address the core causes of MSME failure effectively. In fact, our finding is that, for the most part, ESDs and NFBSPs, tend to provide support related to business operations, what Uniq Axxess refers to as "Running the Business."


NOW WHAT
I believe the market gap is limited support related to the commercial agenda of MSMEs, what Uniq Axxess refers to as "Growing the Business." I believe that one of the factors causing MSMEs to fail at such high rates in South Africa is limited focus on MSME Commercial Capability Development and Commercial Capacity Building in general, as well as on non-financial support services provided to MSMEs. I argue that South Africa must fundamentally change the MSME support regime in three ways:
1. carry out primary research to look into the current value propositions offered to MSMEs by various MSME Ecosystem Stakeholders, especially the ESDs and NFBSPs;

2. The Minister and the Portfolio Committee to call for a review of the NISED 2022/2032 to determine the extent to which commercial capability development and commercial capacity building are addressed;

3. call for a National Lekgotla, inviting all MSME Ecosystem Stakeholders (Public and Private) under the topic of "MSME Commercial Capability Development and Commercial Capacity Building: an integrated national effort to transform MSME performance to facilitate sustainability."

I look forward to hearing from you.

Yours sincerely,
Mr. Victor RAKHALE.