The Black Business Federation( BBF) has welcomed the signing of the National Small Enterprise Amendment Bill into law by President Cyril Ramaphosa.
This comes after Ramaphosa ratified a set of bills into law following the election of his seventh administration under the Government of National Unity (GNU).
In a statement, the federation said this will have a positive effect on government’s efforts to create a conducive environment for job creation: “BBF has noted the signing of the National Small Enterprise Amendment Bill into law by President Cyril Ramaphosa in the quest to create an inclusive economy.
“We applaud the streamlining of agencies meant to assist SMMEs by the formation of the Small Enterprise Development Finance Agency,” the federation said.
The BBF said the latest developments will strengthen the work of various agencies including (SEFA), the Small Enterprise Development Agency (SEDA) and the Cooperative Banks Development Agency (SEDFA).
“This saves entrepreneurs and businesses from having to interact with two agencies for assistance. We call on the Minister of Small Business Development, Stella Ndabeni-Abrahams to put a special focus on revitalising the township economy, by providing support that will ensure that spaza shops, salons and taverns are predominantly owned by South Africans.
“We urge the Minister to expedite programmes for the informal sector as a joint study by the Department of Small Business Development and the United Nations Development Programme (UNDP) which showed that ths sector contributed 8% of the country’s annual GDP and employs 27% of the workforce.”
The federation said it hoped that the new Small Business Act will be partnered with Operation Vulindlela to further deal with barriers and the red tape that have kept the economy untransformed.
“We believe that more agile systems and processes said will enhance access to opportunities for SMMEs and lead to sustainable businesses. The stability of SMMEs will lead to better job creation and diversity in profitable sectors.
“We have noted the formation of the office of the Small Business Ombudsman for conflict resolution, we look forward to seeing what can be achieved by this office for aggrieved SMMEs,“ the BBF said.
Last week, the DA commended Ramaphosa for signing the bill into law saying it would rationalise conflicting entities in the Department and provide a “one-stop-shop” for SMMEs.
“Thriving small businesses are key to our long-term economic growth. By encouraging and supporting entrepreneurship and providing business owners with the necessary support to thrive, we can better combat the rampant unemployment and poverty faced by millions of South Africans,” the DA said.
The Star