SMALL ENTERPRISE AMENDMENT BILL HEADS TO PARLIAMENT

SMALL ENTERPRISE AMENDMENT BILL HEADS TO PARLIAMENT

• 12 June 2023
• Small Business Development
• SA Legal Academy

An explanatory summary of the National Small Enterprise Amendment Bill has been gazetted in anticipation of its imminent introduction in Parliament. This follows Cabinet’s approval of the Bill during last week’s meeting.

A media statement issued at the time focused on provisions in the Bill for establishing an Office of Small Enterprise Ombud Service’. According to the explanatory summary, this office will be responsible for considering and disposing of business-to-business disputes in a cost-effective, efficient manner – among other things mitigating the need for lengthy, expensive court proceedings. This is noting that most complaints by small enterprises involve interpreting the terms of agreements for procuring goods or services and the late or non-payment of amounts due.

Against that backdrop, once operational the office will be empowered to make recommendations to the Minister on protecting the rights of small enterprises by issuing guidelines on and regulating unfair trading practices, some of which may be prohibited.

In addition, the Bill provides for the establishment and registration of a Small Enterprise Development Finance Agency with the aim of integrating financial and non-financial government support for small enterprises, including co-operatives. The Small Enterprise Financing Agency, the Co-operative Banks Development Agency and Small Enterprise Development Agency will then be disbanded.

• explanatory summary
• Cabinet media statement

Published by SA Legal Academy Policy Watch

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