Minister hints at legislation review for small businesses

Posted on July 21st, 2014

sMinister hints at legislation review for small busines

Small Business Development Minister Lindiwe Zulu has hinted at reviewing legislation and regulations that make it difficult for small businesses to survive.

The minister says her department will, over the next few months, put a microscope over these regulations to see how they can be improved.

She said this when she briefed journalists in Pretoria ahead of delivering her department’s budget vote tomorrow.

“We will do this in consultation with all stakeholders. We will focus on creating an enabling environment for small businesses to grow and thrive,” she said.

Her Ministry was among a few of those that were introduced by President Jacob Zuma in May when he announced his new Cabinet tasked with running his administration over the next five years.

The creation of this ministry is aimed at setting in motion the journey to transforming the economy to ensure that entrepreneurship, especially small businesses, is the main source of job creation.

According to the National Development Plan (NDP), about 90% of jobs will be created through small and expanding companies by the year 2030.

Minister Zulu said it was unfortunate that South Africa had a low rate of entrepreneurship.

“We have a collective responsibility to inculcate a culture of entrepreneurship in our country. We will lead a massive entrepreneurship drive to create a nation of entrepreneurs,” she said.

She said her department will work with partners from the business sector to address, among other challenges, the lack of access to finance and credit, low skill levels and a lack of access to information.

“We will also make it easier and faster to register businesses by ensuring that all services are provided under one roof,” she said.

Minister Zulu said part of her department’s priorities will be to:

– Increase the supply of non-financial support services to cooperatives;

– Creating a demand for co-operative enterprises products and services;

– Improving the sustainability of co-operatives; and

– Increasing the supply of financial support services to co-operatives.

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She said her department’s strategy for small enterprise development will also hinge on reducing regulatory constraints on small enterprises.