SA Signs National Small Enterprise Bill to Boost Support for Small Businesses

"Under the new law, the Minister may make regulations setting criteria to classify micro, small, and medium enterprises, as well as any legislation impacting small enterprises," the Presidency explained.

President Cyril Ramaphosa has approved the National Small Enterprise Amendment Bill, which aims to enhance government support services for small and medium businesses, thereby broadening economic participation for more South Africans.

"The National Small Enterprise Amendment Act, signed by the President, amends the National Small Enterprise Act of 1996 to create a new entity, the Small Enterprise Development Finance Agency," the Presidency announced on Tuesday. This new agency will consolidate the Small Enterprise Development Finance Agency (SEFA), the Small Enterprise Development Agency (SEDA), and the Cooperative Banks Development Agency (CBDA).

Currently, SEDA and SEFA operate under the Department of Small Business Development. The newly formed Small Enterprise Development Finance Agency will serve as a one-stop shop for aspiring entrepreneurs and support the development of Cooperative Banking Institutions (CBIs).

The Act also establishes the Office of the Small Enterprise Ombud Service. This office will handle complaints and can recommend that the Minister of Small Business Development prohibit certain unfair trading practices affecting small enterprises.

"Under the new law, the Minister may make regulations setting criteria to classify micro, small, and medium enterprises, as well as any legislation impacting small enterprises," the Presidency explained.

The consolidation of these agencies into a single entity is expected to streamline support services, making it easier for small and medium businesses to access the resources they need to thrive. This legislative change reflects the government's commitment to fostering a more inclusive and supportive environment for small enterprises in South Africa.