The proposed ombud for small business will level the playing field for these enterprises as it could help SMEs to resolve conflicts faster and without the need to incur hefty legal fees.
provide for the establishment and registration of the Small Enterprise Development Finance Agency and the subsequent disestablishment of the Small Enterprise Financing Agency , the Co-operative Banks Development Agency and the Small Enterprise Development Agency in terms of the Companies Act;enable the minister to declare certain practices related to small enterprises to be prohibited as unfair trading practices and make regulations about...
According to the summary, the bill aims to remedy the lack of effective and affordable access to a justice mechanism for small businesses as disputes between businesses and late or non-payment of amounts due are a significant reality for these enterprises across the world, with very adverse implications for their growth. Therefore, small businesses need effective mechanisms to resolve their disputes in an efficient and cost-effective manner.
“Small business owners often feel powerless when a larger customer delays payments beyond 30 or 60 days, or even does not pay at all. The knock-on effects of late or non-payment may include SMEs not being able to pay their suppliers and employees or needing to take out loans to make their payments. This bill, if enacted, could help SMEs to improve their cash flow and financial health.”
The SEDFA will ensure that the small enterprise and co-operative ecosystem offers the most efficient business advice, business development services, investment support, business facilitation and incubator support as a leading business development entity that will drive economic transformation and inclusive growth in the economy by ensuring the provision of customised financial and non-financial support and greater access to finance for small enterprises and co-operatives.