MEDIA STATEMENT
Date: Tuesday, 23 July 2024
For Immediate Release
Institute of Chartered Entrepreneurs Welcomes the Signing of the National Small Enterprise Amendment Bill
The Institute of Chartered Entrepreneurs (IoCE) warmly welcomes the recent assent by President Cyril Ramaphosa to the National Small Enterprise Amendment Bill. This significant legislative development marks a pivotal step forward in the government’s ongoing efforts to bolster the support mechanisms available to small and medium enterprises (SMEs) and to foster a more inclusive and robust economy in South Africa.
The National Small Enterprise Amendment Act, which amends the National Small Enterprise Act of 1996, introduces the Small Enterprise Development Finance Agency (SEDAFA). This new entity will integrate the functions of the Small Enterprise Development Finance Agency (SEFA), the Small Enterprise Development Agency (SEDA), and the Cooperative Banks Development Agency (CBDA). By consolidating these agencies under one roof, the SEDAFA will serve as a comprehensive, one-stop shop for aspiring entrepreneurs, streamlining access to crucial resources, support, and financing.
Moreover, the establishment of the Office of the Small Enterprise Ombud Service (OSEOS) is a commendable initiative. This office will play a vital role in protecting the interests of small enterprises by addressing complaints and recommending the prohibition of unfair trading practices. The power vested in the Minister of Small Business Development to regulate and classify micro, small, and medium enterprises further ensures that the unique needs of these businesses are adequately recognised and addressed.
“Far too often, small businesses face mistreatment by larger corporations and government departments. This mistreatment can range from delayed payments beyond the required period to breaches of contract. In many cases, small businesses lack the financial and legal resources necessary to assert and protect their commercial rights.
For the Office of the Small Enterprise Ombud Service (OSEOS) to be effective, it must be empowered with the authority and resources needed to hold accountable those businesses and government departments that jeopardize the sustainability of SMEs. Such enforcement is crucial to safeguard the livelihoods of entrepreneurs and the communities that rely on their success. The OSEOS must be able to pursue and rectify these unfair practices to ensure a fair and supportive business environment for small enterprises. Like any piece of legislation, the devil is in the regulations,” says Tebogo Khaas, chief entrepreneur of the IoCE.
The IoCE acknowledges the potential of this Act to significantly enhance the SME ecosystem. We are committed to actively collaborating with the government, leveraging our expertise and resources to support the successful implementation of this legislation. Our goal is to create an enabling environment that encourages innovation, growth, and sustainability for small businesses across South Africa.
IoCE remains dedicated to advocating for the needs of small enterprises and ensuring that their voices are heard in the policymaking process. We believe that this legislative milestone will pave the way for a more dynamic and equitable economic landscape, ultimately contributing to the prosperity and well-being of all South Africans.
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About the Institute of Chartered Entrepreneurs
The Institute of Chartered Entrepreneurs is a leading professional organisation dedicated to supporting the growth and development of small and medium enterprises in South Africa. Through advocacy, education, and collaboration, we strive to create a thriving entrepreneurial ecosystem that drives economic growth and social progress.
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