Business angels in South Africa received a much welcomed boost in the form of a great article published in the business report this month. Carien Engelbrecht argues that business angel groups in South Africa should be given tax breaks on money invested into new and growing business.
The report and recommendations make an enormous amount of sense. The small business sector created both jobs and income for the country, in many cases also ensuring an inflow of foreign currency. As the government has always been clear on their support of the small business sector through making available numerous grants and funding initiatives as well as creating bodies like SEDA and the IDC amongst others to support entrepreneurs, this will be a step in the right direction. If cash rich individuals or groups are prepared to risk their money to create jobs, income opportunities and revenue for the country as a whole then surely they are in part supporting what the government is setting out to do. Its a real win-win!!
SA Angel Investors: Tax breaks for angel investors