In his first State of the Nation address, President Cyril Ramaphosa reiterated the importance of small and mediumsized busesses (SMEs) in growing the economy and creating jobs. He appealed to the private sector and big business to support SMEs through incubation and other initiatives that will be rewarded through tax incentives.

One such initiative is the Section 12J tax incentive, first introduced by government in 2009 as a way to stimulate the economy by helping SMEs access equity finance through SARS-approved venture capital companies (VCCs).