Sacci, CIPC join forces to support SME growth

Recognising the challenging business environment in South Africa and committed to driving positive change, the South African Chamber of Commerce and Industry (Sacci) has partnered with the Companies and Intellectual Property Commission (CIPC), along with key stakeholders such as the Chartered Institute for Business Accountants (Ciba) and the University of South Africa’s (Unisa’s) affiliate company, Inhlanyelo Hub, to launch a small and medium-sized enterprise (SME) initiative, the SME Launch.

In a November 7 media release, Ciba points out that, while the CIPC registers about 50 000 companies a month, research indicates that about 70% will likely fail within two years.

“The aim is to lower the failure rate by 6% then we can save 3 000 companies a month. If each of these companies employs two people we will create 6 000 jobs a month, 72 000 a year and 720 000 in ten years.

“Starting a business is no easy task, and for the 600 000 new companies registered annually in South Africa, challenges like cash flow management, regulatory compliance, and limited market access can become overwhelming. Nearly 70% of these businesses may close within their first two years,” says Ciba.

SME Launch directly addresses these barriers, creating a stable foundation for SMEs to grow, create jobs, and strengthen South Africa’s economy.

By combining the expertise of each partner, Ciba says SME Launch creates a comprehensive support structure that follows SMEs through every stage of their journey.

It notes that the CIPC registers new companies and ensures they are well governed, transparent and accountable, while Sacci – South Africa's national business chamber – connects SMEs with 20 000 other businesses, reduces government red tape, and amplifies the SME voice with key decision-makers, offering access to events and global business opportunities.

It explains that Ciba is a statutorily recognised professional body for accountants and supports SMEs by delivering competent accountants and providing free accounting and tax training to SMEs, helping them run their businesses better.

Moreover, Unisa’s Inhlanyelo Hub delivers tailored business development support, helping businesses turn initial ideas into sustainable, growing companies.

Ciba notes that SME Launch’s collaborative approach has the potential to create lasting economic benefits.

This includes job creation, whereby a 6% improvement in SME success rates could mean an additional 3 000 businesses remaining open each month, potentially creating 6 000 new jobs monthly; as well as GDP growth.

SME Launch will kick off with a free webinar on November 12, introducing SMEs to the resources and programmes available. Register today to be part of this initiative at www.smelaunch.co.za.

“SME Launch is our way of ‘adopting’ South Africa’s new businesses, helping them grow into sustainable, thriving contributors to the economy. This partnership ensures new businesses have the guidance they need to succeed, creating long-term value for both SMEs and the nation,” says Sacci president Mtho Xulu.

“CIPC’s mission goes beyond registering companies; we’re committed to helping them thrive. With SME Launch, we’re creating a supportive foundation for new businesses, ensuring they start with the tools and guidance they need to succeed and stay compliant.

“This initiative aligns with our commitment to building a stronger, more resilient SME sector that can drive job creation and economic growth in South Africa,” says CIPC commissioner Rory Voller.

“At Ciba, we see accountants as vital partners in the success of SMEs. Through SME Launch, our goal is to equip new businesses with essential financial skills and connect them with competent, trained accountants who can guide them through challenges and support their growth. By supporting SMEs with solid financial practices, we’re strengthening not only these businesses but the broader economy,” says Ciba CEO Nicolaas van Wyk.

“Inhlanyelo Hub is excited to be part of SME Launch, where we can turn entrepreneurs’ ideas into sustainable business realities. Our tailored mentorship and development programmes are focused on nurturing these businesses from their earliest stages, so they’re ready to grow, contribute to GDP, and become long-term job creators in South Africa,” adds Inhlanyelo Hub CEO Professor Raphael Mpofu.