{"id":265202,"date":"2025-11-10T08:36:06","date_gmt":"2025-11-10T09:36:06","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=265202"},"modified":"2025-11-10T16:05:52","modified_gmt":"2025-11-10T16:05:52","slug":"mini-budget-must-prioritise-small-business-growth-and-fiscal-discipline-urges-lula","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/mini-budget-must-prioritise-small-business-growth-and-fiscal-discipline-urges-lula\/","title":{"rendered":"Mini budget must prioritise small business growth and fiscal discipline, urges Lula"},"content":{"rendered":"<p>This <a target='_blank' rel=\"nofollow\" href=\"https:\/\/www.iol.co.za\/business-report\/economy\/mini-budget-must-prioritise-small-business-growth-and-fiscal-discipline-urges-lula-69ea79c2-2e8a-4c9f-a87a-9bf0e8f5d936\">post<\/a> was originally published on <a target='_blank' rel=\"nofollow\" href=\"https:\/\/www.iol.co.za\/\">this site<\/a><\/p><p><img decoding=\"async\" src=\"https:\/\/image-prod.iol.co.za\/16x9\/800?source=https:\/\/iol-prod.appspot.com\/image\/37260b519690760f2b723da2b7edd577392a5a31\/2000&amp;operation=CROP&amp;offset=0x161&amp;resize=2000x1125\" class=\"type:primaryImage\" \/><\/p>\n<p>As South Africa prepares for the Medium Term Budget Policy Statement (MTBPS) on 12 November, the call for robust fiscal discipline alongside targeted relief for small businesses is echoing louder.<\/p>\n<p>SME services provider Lula has taken a firm stance, urging Finance Minister Enoch Godongwana to deliver on the much-anticipated mini budget with clear timelines for essential structural reforms that directly benefit the small and medium enterprise (SME) sector.<\/p>\n<p>SMEs play a crucial role in South Africa&#8217;s economy, generating approximately 40% of the nation&#8217;s GDP.<\/p>\n<p>As the country grapples with persistent structural issues, soaring national debt, and bleak growth projections, the CEO of Lula, Garth Rossiter, argued that without certainty, small businesses cannot commit to investing in the future or hiring new staff.<\/p>\n<p>\u201cThe greatest threat to SME growth right now is not a lack of resilience, but fiscal paralysis. Our businesses cannot commit capital for expansion and hiring when the government remains unable to offer a guaranteed, clear trajectory for electricity, logistics costs, and the national debt path. The Minister\u2019s main job is to remove this uncertainty,\u201d Rossiter said, highlighting the critical importance of a predictable economic environment.<\/p>\n<p>Rossiter maintained that small businesses have exhibited remarkable resilience, but they require clarity and assurance regarding three key cost drivers: electricity supply, logistics costs, and the management of national debt.<\/p>\n<p>\u201cWhat we really need from the Minister is not another promise, but a genuinely credible and binding fiscal framework,\u201d he added.<\/p>\n<p>His comments reflect a broader concern within the SME community that without clear indications of cost management, long-term planning and investment remain precarious.<\/p>\n<h2>Key Areas of Focus for the Mini Budget<\/h2>\n<p><strong>Lula has outlined three pivotal areas where the mini budget must provide clarity and support:<\/strong><\/p>\n<ul>\n<li><strong>Infrastructure reform and timelines:<\/strong><span>&nbsp;<\/span>Public infrastructure spending is essential, but the Minister must establish measurable, time-bound targets for reforms particularly in energy generation and transportation efficiency. Delays in operational efficiency are a direct financial burden on small businesses.<\/li>\n<li><strong>Structural tax relief to drive growth:<\/strong><span>&nbsp;<\/span>Lula urges the Minister to avoid broad-based tax increases that could hinder small businesses. Specifically, a revision of the stagnant Value-Added Tax (VAT) registration threshold, currently set at R1 million, is essential to alleviate administrative and financial hurdles affecting growth.<\/li>\n<li><strong>Digital-focused procurement and compliance:<\/strong><span>&nbsp;<\/span>Plans to streamline government tender and payment processes must be outlined, especially for SMEs. Prioritising spending that enhances digital inclusion and cybersecurity is vital for the long-term sustainability of small businesses.<\/li>\n<\/ul>\n<p>\u201cRaising the VAT threshold from R1 million to a more contemporary level, such as R3 million, is a critical step for government to lighten the burden on small businesses. By easing administrative requirements, small businesses could reinvest more resources into their core operations, which is vital for stimulating economic growth and creating jobs,\u201d Rossiter said.<\/p>\n<p>Ultimately, the outcome of the mini budget has broader implications for the South African economy.<\/p>\n<p>\u201cThe mini budget must signal to the private sector that the government is serious about eliminating obstacles to economic activity. Our risk calculation is directly linked to the stability of the operating environment. Any commitments made must translate into tangible improvements, including reliable power supply, efficient movement of goods, and reduced compliance burdens,\u201d Rossiter said.<\/p>\n<p><strong>BUSINESS REPORT&nbsp;<\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>As South Africa prepares for the Medium Term Budget Policy Statement (MTBPS) on 12 November, the call for robust fiscal discipline alongside targeted relief for small businesses is echoing louder.SME services provider Lula has taken a firm stance, urging Finance Minister Enoch Godongwana to deliver on the much-anticipated mini budget with clear timelines for essential structural reforms that directly benefit the small and medium enterprise (SME) sector.SMEs play a crucial role in South Africa&#8217;s economy, generating approximately 40% of the nation&#8217;s GDP.As the country grapples with persistent structural issues, soaring national debt, and bleak growth projections, the CEO of Lula, Garth Rossiter, argued that without certainty, small businesses cannot commit to investing in the future or hiring new staff.\u201cThe greatest threat to SME growth right now is not a lack of resilience, but fiscal paralysis. Our businesses cannot commit capital for expansion and hiring when the government remains unable to offer a guaranteed, clear trajectory for electricity, logistics costs, and the national debt path. The Minister\u2019s main job is to remove this uncertainty,\u201d Rossiter said, highlighting the critical importance of a predictable economic environment.Rossiter maintained that small businesses have exhibited remarkable resilience, but they require clarity and assurance regarding three key cost drivers: electricity supply, logistics costs, and the management of national debt.\u201cWhat we really need from the Minister is not another promise, but a genuinely credible and binding fiscal framework,\u201d he added.His comments reflect a broader concern within the SME community that without clear indications of cost management, long-term planning and investment remain precarious.Key Areas of Focus for the Mini BudgetLula has outlined three pivotal areas where the mini budget must provide clarity and support:Infrastructure reform and timelines:\u00a0Public infrastructure spending is essential, but the Minister must establish measurable, time-bound targets for reforms particularly in energy generation and transportation efficiency. Delays in operational efficiency are a direct financial burden on small businesses.Structural tax relief to drive growth:\u00a0Lula urges the Minister to avoid broad-based tax increases that could hinder small businesses. Specifically, a revision of the stagnant Value-Added Tax (VAT) registration threshold, currently set at R1 million, is essential to alleviate administrative and financial hurdles affecting growth.Digital-focused procurement and compliance:\u00a0Plans to streamline government tender and payment processes must be outlined, especially for SMEs. Prioritising spending that enhances digital inclusion and cybersecurity is vital for the long-term sustainability of small businesses.\u201cRaising the VAT threshold from R1 million to a more contemporary level, such as R3 million, is a critical step for government to lighten the burden on small businesses. By easing administrative requirements, small businesses could reinvest more resources into their core operations, which is vital for stimulating economic growth and creating jobs,\u201d Rossiter said.Ultimately, the outcome of the mini budget has broader implications for the South African economy.\u201cThe mini budget must signal to the private sector that the government is serious about eliminating obstacles to economic activity. Our risk calculation is directly linked to the stability of the operating environment. Any commitments made must translate into tangible improvements, including reliable power supply, efficient movement of goods, and reduced compliance burdens,\u201d Rossiter said.BUSINESS REPORT\u00a0<\/p>","protected":false},"author":1,"featured_media":265204,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-265202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/265202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=265202"}],"version-history":[{"count":1,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/265202\/revisions"}],"predecessor-version":[{"id":265203,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/265202\/revisions\/265203"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/265204"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=265202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=265202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=265202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}