The Department of Small Business Development has gazetted its intentions to introduce a new bill to parliament, which would see a new state-owned company established in the country to support small businesses.
The bill will also deal with changes to definitions of small businesses in South Africa by getting rid of the “very small” category and moving away from using asset value as a criterion.The new bill would allow the department to establish a new state company in the form of the Small Enterprise Development Finance Agency .
“The vision of the SEDFA is to be a leading business development entity that will drive economic transformation and inclusive growth in the economy through ensuring the provision of customised financial and non-financial support and greater access to finance for small enterprises and co-operatives.” Through consultation with the ombud, the minister responsible for small business development, by notice in the Gazette, can declare certain practices in relation to small enterprises to be prohibited unfair trading practices.
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