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Ladies and Gentlemen, Distinguished Guests.

It is an honour for me to address you this evening. When I first caught sight of the request to launch EDGE, I had visions of a nightclub or a trendy new magazine. As I read further, I realised that we were talking of something else entirely. Although I must quickly add, I do not wish to rule out the possibility that EDGE could lead to the opening of the of a nightclub or the launch of a trendy new magazine.

Tonight, I would like to share with you a few of the reasons why I welcome the launch of the EDGE initiative in KwaZulu-Natal.

As an initiative that co-ordinates entrepreneurial resources, EDGE has a very important role to play in KwaZulu-Natal's development and transformation. Firstly, EDGE will inject into the SMME sector, a creativity and a vibrancy that transforms what SMMEs are and how they do what they do. I am sure that this will not be an easy task. We are all, after all, too familiar with the rhetoric about the role of the SMME sector in developing economies. Unfortunately, in many of developing economies - especially those in sub-Saharan Africa - SMME development has proceeded conservatively and slowly. It is particularly crucial therefore that the EDGE initiative eradicate the conservative mindset that equates 'small business' with 'street trader' or 'taxi fleet'. Changing this conservative mindset is a very important step towards the economic development and transformation of KwaZulu-Natal. If we are serious about development in KwaZulu-Natal, then we must commit ourselves to creative transformation at all levels. By this I mean not only changing the way we think about SMMEs. But the SMME sector itself must drive this transformation process.

The opportunities and potential of the SMME sector has for too long been constrained by factors such as limited access to markets or insufficient information about SMME resources. But there are other constrains too which are often not given serious consideration. The existence of stereotypes about who is an entrepreneur and what that person can and should do is a case in point. For example, there are many negative stereotypes about women entrepreneurs in the SMME sector. All too often it is assumed that women entrepreneurs will always want to establish a sewing business. While I am sure that there are women who own successful small businesses which sell or mend clothes. I believe that we need to challenge and change the stereotype that this is the only type of business for the female entrepreneur. EDGE must encourage access and opportunities for women in the SMME sector so that these women can push back the frontiers of local economic development and community transformation.

The same can also be said of the stereotypes that exist about SMMEs in rural areas. Small businesses in rural areas do not have to be about selling handicrafts and vegetables on the side of a road. There is much more diversity and potential within rural communities than this perception allows. Thinking creatively about small businesses in rural areas is vital. EDGE must ensure that at all levels stereotypes such as these are challenged and changed. By unleashing these unrecognised and untapped entrepreneurial opportunities, we are in fact unleashing real human potential within rural communities. Only if we succeed in doing this can we claim that the SMME sector is a catalyst of transformation in KwaZulu-Natal.

A second reason why EDGE is important is that it emphasises the inter relatedness of local community and SMME development. These two processes must occur together. The EDGE initiative aims to establish creative partnerships between local communities and local government. By identifying and developing the SMME sector within a local community, the EDGE initiative implies that local economic development is truly a community-driven process. By locating the local community at the centre of this process, there is by definition a radical shift away from a view that only the few are successful. And when the community drives this process, it is the whole community which is successful. Local economic development therefore is unquestionably tied to community participation and responsive local government. And that, in my opinion, means real transformation.

The launch of EDGE within this Province is also important because it emphasises the involvement and participation of the youth in local economic development strategies. It is a very real fact that as a Province, KwaZulu-Natal is home to approximately 21% of all South Africans. It is also a very real fact that many of those who reside in this Province are young children and teenagers. What this means is that as a Province, KwaZulu will enter 21st century with a significant number of young school-leavers who are not guaranteed employment within the formal sector. The development of the SMME sector in KwaZulu-Natal must therefore be linked to the fact that we will need to provide real job opportunities for these youngsters. And we will need to provide our young men and women with the opportunity to start their own businesses. It is of vital importance that initiatives such as EDGE ensure that the SMME sector is responsive to the social and economic realities that will not only face our Province now but also in the 21st century.

In my opinion, the emergence of a truly vibrant and creative SMME sector in KwaZulu-Natal will be measured by its ability to develop local economies that are socially responsive. To do this, the SMME sector must be outward-looking. SMMEs must be our centres of excellence and innovation. They must transform local potential to international opportunity.

By embracing these challenges, I am sure that the KwaZulu-Natal's SMME sector will be assured of widespread support and limitless potential. It is therefore with enthusiasm and support that I welcome the launch of the Competitive EDGE initiative in KwaZulu-Natal.

Thank you.

Dr BS Ngubane
Premier: KwaZulu-Natal.

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