Cronograma de Actividades

The National Small Business (“NSB”) Act of 1996 was promulgated as a replacement to the (now-repealed) Small Business Act of 1981. It provides a guideline for organs of State to promote small businesses, and for measures on related matters.

This Act provides for the establishment of :

-The core business of NSBAC is to represent and promote the interests of small business in South Africa, as envisaged in the National Strategy for the Development and Promotion of small, medium and micro enterprises (SMMEs).

● Small Enterprise Development Agency (“SEDA”).

SEDA is responsible for advancing the policies in support of small business to sustain and enhance competitiveness, and for designing and implementing

development support projects that enhanced job creation, entrepreneurship and economic growth.

A particularly salient feature of this Act is that it provides a definition of a small enterprise organisation, as follows: “Small enterprise organisation means any entity, whether or not incorporated or registered under any law, consisting mainly of persons carrying on small enterprise concerns in any economic sector and established for the purpose of promoting the interests of or representing the small enterprise concerns and includes any federation consisting wholly or partly of such associations and any branch of such organisation”

Another definition is provided for a small enterprise, reading: “Small enterprise means a separate and distinct business entity, together with its branches or subsidiaries, if any, including cooperative enterprises managed by the owner or more predominantly carried on in any sector or sub-sector of the economy (as per schedule) classified as a micro, a very small or a medium enterprise by satisfying the criteria as per the schedule”. In terms of administration and oversight, the Board ensures the implementation of the functions of SEDA, through the Public Finance Management Act (PFMA).

2.4.2 Cooperatives Act No 6 of 2013

The Cooperatives Act allowed for the establishment of:

● A Primary Cooperative, which is aimed at providing employment and services to enhance community development.

● A Secondary Cooperative, which is formed by two or more primary cooperatives to provide sectoral services.

● A Tertiary Cooperative, which is formed by multi-sectoral cooperatives whose members are secondary cooperatives, and which is aimed at policy advocacy with government and the private sector.

● Worker Cooperatives consist of primary cooperatives in pursuit of the collective objectives of labour with regard to self-managed enterprises. The Cooperatives.

Amendment Act, No. 6 of 2013, called for the establishment of a single National Apex Cooperative to lobby government and the private sector on policy recommendations that may improve and grow cooperatives in the economy. The National Apex Body could be formed by a minimum of three operational tertiary cooperatives at national level, and a minimum of five operational multi-sectoral cooperatives at the provincial or district or local level. With regard to administration and oversight, it is envisaged that a Cooperatives Development Agency and Tribunal would be established in the financial period of 2015/2016.

2.4.3 The Financial Advisory and Intermediary Services Act (No 37 of 2002)

The Financial Advisory and Intermediary Services Act (No 37 of 2002), in tandem with the National Credit Act, regulates financial advisory and intermediary providers of services offered by any means or medium to a group or client. It also regulates the

conduct of a Financial Service Provider (FSP) and provides guidance to consumers in their daily dealings with the considered product provider. The Act provides for remedies such as the Ombudsman and “Hellopeter’ an informal platform for resolving disputes. Primary administration is handled through the Registrar and Deputy Registrar, on the basis of written practice notes and codes of conduct. Secondary administration is done through the Advisory Committee which can advise, investigate and report on matters relating to financial service providers. The Board will grant final approval for implementation by the Registrar.

2.4.4 South African Micro-Finance Apex Fund (SAMAF)

The South African Micro-Finance Apex Fund (SAMAF) was a wholesale funding institution formally established in April 2006. Its primary purpose was to reduce poverty and unemployment and to extend financial services to reach people in rural and peri- urban areas. One of the mandates of SAMAF was to build capacity amongst its clients and to train intermediaries who were considered as partners for the success of the SAMAF model, because they were close to communities where micro and survivalist businesses were located.

2.4.5 Small Enterprise Finance Agency (Sefa)

The Small Enterprise Finance Agency (Sefa) provides financial support using both wholesale and direct lending as channels. The utilisation of intermediaries by Sefa such as the Micro Financial Institutions started during the time when Khula was still operating, before the merger between SAMAF and Khula, and this principle was then carried over.

2.4.6 Companies Act

The revised Companies Act provides a new legislative framework for the incorporation, registration and management of companies. It established the Companies and Intellectual Property Commission (CIPC) and Companies Tribunal. The current legislation treats all businesses as companies.

2.4.7 Industrial Development Corporation Act

The Industrial Development Corporation (IDC) aims, through its overarching legislation, to promote the establishment of new industries and industrial undertakings, and to develop existing industries and industrial undertakings. This Act allowed for the establishment of Sefa to advance the objectives of SMMEs and cooperatives.

2.4.8 Small Enterprise Development Agency (SEDA)

As indicated above, the mandate of the Small Enterprise Development Agency is to provide non-financial support services. It currently provides these services through a number of delivery points across the country and is supported by the national office located in Tshwane. At the moment, SEDA offered a network of 43 branches, 18 mobile units, 48 electronic information kiosks (self-service information points) 3 enterprise information centres (EICs), 42 incubation centres and 47 access points where SEDA had co-located with other institutions.

SEDA also provides services through strategic partnerships, for instance with State Owned Companies (SOCs) such as Transnet, and with private sector organisations such as Vodacom. The utilisation of other business associations over time would be able to provide for an extension of support services.

2.4.9 The Municipal Bylaws

The municipal bylaws further increase the red-tape that SMMEs must adhere to. The municipal bylaws could be restrictive in nature and not necessary having the goal of advancing SMME development. A case in point is that residential homes cannot be used for business purposes unless zoned as such. Many of the SMMEs are operating from their homes which is in contravention of the municipal rezoning bylaw. Another example is the adherence to the Health and Safety regulations. SMMEs are required to ensure that their business premises adhere to these regulations. The residential home does not comply with these regulations and are then subjected to fines and so forth. The municipality enforces the local bylaws very strictly and many SMMEs are issued with fines or closed if the transgression continues. The SMMEs, on the other hand are of view that they are being subjected unnecessarily to a very restrictive and punitive regulatory framework.