The South African government is increasingly being asked to do more in support of small businesses when it comes to business investment and start-up capital. Although the government is already investing substantially into the small business sector more still need to be done.The benefits to the government are obvious and difficult to ignore. Small firms provide job opportunities, much needed competition in the key areas as well as of course tax revenue for the government. Investing in new and growing firms is almost a no-brainer for the government and can only help the economy going forward.Investment is small firms does not necessarily need to be in the form of cash only.

Great examples of how this is done in countries such as the US, the UK and Europe where the sme sector is healthy and thriving includes, tax breaks for new firms, popular loan guarantee schemes where the government under writes a large percentage of loans giving out by banks and a reduction in regulations in certain key areas specifically relating to micro businesses.

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