SA’s skills development framework needs to be overhauled because it places a financial and administrative burden on the small business sector, while large enterprises enjoy an advantage.The Davis Tax Committee has come to this conclusion in its final report on the small and medium enterprise (SME) sector, recommending that the government institute reform.The system must be changed so that small enterprises can obtain funding without having to implement costly skills and training plans, and table annual training reports."The current sector education and training authority (Seta) refund system has resulted in a high degree of impoverishment of the SME sector for the benefit of funding training in larger businesses," states the report."Given the objectives of the National Development Plan towards growth in the SME sector, this is unacceptable."Under the current system, small enterprises that have employment costs exceeding R500,000 a year are required to pay a skills-development levy o...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.