GARY MOORE: Small business minister’s subsidies would promote corruption, inefficiency

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The removal of undue legislative restrictions on small enterprise will enable them to grow more freely

The small business development minister Stella Ndabeni-Abrahams intends to gazette a Small Enterprise Development Masterplan as policy for small-enterprise support, as envisaged in the 1996 National Small Enterprise Act.

Thus, the masterplan observes that the Income Tax Act, the Co-operatives Act and the Broad-Based Black Economic Empowerment Act all use differing definitions. It notes that the SA Revenue Service, department of trade, industry & competition and Statistics SA use varying definitions to track and monitor SMMEs.

It is beyond her powers to urge other ministers to apply the Act’s SMME definition in statutes they administer, which though they might touch on small businesses are for the most part aimed at objects other than promoting small businesses. The Act authorises the minister, by notice in the Government Gazette, to identify types of legislation that may have an effect on small enterprise, and to publish guidelines about assessment and review of the effect of existing legislation on small enterprise.

 

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