President Cyril Ramaphosa on Tuesday signed the National Small Enterprise Amendment Bill into law.
Minister of Small Business Development, Stella Ndabeni-Abrahams has welcomed the National Small Enterprise Act, following the signing of the Bill into law.
In a media statement, Ndabeni highlighted the significance of the amended legislation, describing it as transformative milestone for the small business sector.
‘’We are confident that the National Small Enterprise Act as amended will turn the tide in favour of small business,’’ she said.
Moreover, Ndabeni said the amended National Small Enterprise Act will enhance support for small businesses, aiming to level the playing field and provide more integrated financial and non-financial assistance to Micro, Small, and Medium Enterprises (MSMEs) and cooperatives.
According to spokesperson of the department, Cornelius Monama, the Act establishes the Office of the Small Enterprise Ombud Service. It may recommend that the Minister declare certain practices prohibited unfair trading.
In addition, the Act redefines and simplifies the term “small enterprises” and grants the Minister the authority to declare certain trading practices as unfair.
Monama said the Office of the Enterprise Ombud Service will offer impartial mediation in disputes involving small enterprises by avoiding costly litigation processes.
‘’The lack of effective and affordable access to justice mechanism for small enterprises has been a significant concern.
“Business-to-business disputes and the late and non-payment of legitimate invoices remain a significant reality,” he said, adding that these disputes have very real implications for small businesses.
‘’It sets the parameters and procedures. In terms of which the Minister, by notice in the Gazette, may declare certain practices to be prohibited unfair trading practices.
‘’The unfair trading practices relate to exclusionary compliance requirements for small enterprises. Also retrospective changes to contracts, ambiguous contracts, sudden and unjustified termination of a commercial relationship. Or termination without reasonable notice to SMMEs and cooperatives,” said Monama.
‘’We are confident that the amended National Small Enterprise Act will level the playing field for small enterprises,’’ he said.
The Act underscores a pivotal step towards inclusive growth transformation, aligning with the commitment to place SMMEs at the forefront of the nation’s economic recovery, concluded Monama.
IOL