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National Small Enterprise Development Bill
- 18 July 2023
- Accounting
- South African Accounting Academy
Once operationalised, the recently tabled National Small Enterprise Development Bill will not only establish an ombud office and integrate the services of three existing small business support agencies. It will also empower the Minister to make regulations setting criteria for determining the classification of micro, small and medium enterprises.
According to the Bill’s explanatory summary, the intention is to reduce the number of small business categories and to simplify their classification using evidence-based data rather than asset value – in line with international best practice.
The Office of the Small Enterprise Ombud Service will be established to ‘consider and dispose of complaints’ related to:
- the terms of an agreement for procuring goods or services, and
- ‘the late or non-payment of amounts due and payable’.
A ‘Small Enterprise Development Finance Agency’ (SEFDA) will integrate services currently provided by the Small Enterprise Financing Agency, the Co-operative Banks Development Agency and the Small Enterprise Development Agency. These agencies will eventually be disbanded.
The Bill also:
- enables the Minister to declare certain practices in relation to small enterprises to be prohibited as unfair trading practices and to make regulations with regard thereto.
- proposes an amendment to section 20(2) of the Act to bring that section in line with a recent Constitutional Court judgment
The Explanatory Memorandum can be downloaded at https://www.gov.za/sites/default/files/gcis_document/202306/48776gon3534.pdf
Click here to download the gazetted notice:
https://www.gov.za/sites/default/files/gcis_document/202307/b16-2023nationalsmallenterprise-2.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
- The National Small Enterprise Amendment Bill is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an auditor, independent reviewer and accountant, you need to be aware of new legislation and how this could affect your clients.
- As a Small Enterprise, you might need to comply with the National Small Enterprise Amendment Bill in your workplace.
Relevance to Your clients:
- Any small entity (company or close corporation) has a duty to comply with the National Small Enterprise Amendment Bill.
To stay current with all the latest changes and updates subscribe to our Monthly Compliance and Legislative Update series for R 250.00 per month. This gives you access to a monthly 2-hour webinar and monthly newsletter:
https://accountingacademy.co.za/profession/monthly-legislation-update
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