National Small Enterprise Amendment Bill welcomed by business
SEDA and SEFA are currently located within the Department of Small Business Development.
The Black Business Federation (BBF) has welcomed the amendment of the National Small Enterprise Amendment Bill into law by President Cyril Ramaphosa on July 23, to establish an inclusive economy.
Ntsikelelo Dlulane, CEO of BBF said the organisation applauds the streamlining of agencies meant to assist SMMEs by the formation of the Small Enterprise Development Finance Agency, which will incorporate the Small Enterprise Development Finance Agency (SEFA), the Small Enterprise Development Agency (SEDA) and the Cooperative Banks Development Agency (SEDFA).
He said this saves entrepreneurs and businesses from having to interact with two agencies for assistance.
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“We call on the Minister of Small Business Development, Stella Ndabeni-Abrahams to put a special focus on revitalising the township economy, by providing support that will ensure that spaza shops, salons and taverns are predominantly owned by South Africans,” stated Dlulane in a statement.
“We urge the Minister to expedite programmes for the informal sector as a joint study by the Department of Small Business Development and the United Nations Development Programme (UNDP) which showed that this sector contributed 8% of the country’s annual GDP and employs 27% of the workforce.”
He noted that the BBF hopes that the new Small Business Act will be partnered with Operation Vulindlela to further deal with barriers and the red tape that have kept the economy untransformed.
“We believe that more agile systems and processes will enhance access to opportunities for SMMEs and lead to sustainable businesses. The stability of SMMEs will lead to better job creation and diversity in profitable sectors.”
Dlulane further noted the formation of the office of the Small Business Ombudsman for conflict resolution, and that they look forward to seeing what can be achieved by this office for aggrieved SMMEs.
“As the BBF we look forward to engaging Minister Ndabeni-Abrahams concerning the act to create a progressive economy which recognises the need to foster rural and township economies and integrate the informal sector,” he said.
“The BBF is dedicated to safeguarding the interests of the black business community, by ensuring that economic structural reforms are implemented, timeously.”
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According to the Office of the Presidency, the new Small Enterprise Development Finance Agency will function as a one-stop-shop for aspiring entrepreneurs and promote the development of the Co-operative Banking Institutions (CBIs).
SEDA and SEFA are currently located within the Department of Small Business Development.
“The Act also establishes the Office of the Small Enterprise Ombud Service, which may, as part of dealing with complaints, recommend that the Minister of Small Business Development declare certain practices concerning small enterprises to be prohibited unfair trading.
“Under the new law, the Minister may make regulations setting the criteria to determine the classification of micro, small and medium enterprises as well as any legislation affecting small enterprises,” the Presidency said.
