The Small Business Act of the Republic of South Africa Essay

Introduction

• The National Small Business Act 102 of 1996 addresses the lack of resources in South Africa
• It was amended in 2003 and 2004 to offer more support to businesses
• The 2003 amendment was meant to promote the interest of small business (Madzimure 7)
• The 2004 amendment facilitated the establishment of the Small Enterprise Development Agency

Roles of the Policy

1. It is focused on empowering and addressing issues affecting small businesses.
2. Priority issues are business development and job creation.
3. The Department of Small Business Development (DSBD) is mandated to support high impact initiatives.
4. The policy provides a strategy for the promotion and development of small businesses including training and financing (Mokoena 450).
5. It offers an integrated approach to enhance the development of small enterprises.

How Government Policies Influence Entrepreneurship in South Africa

• Reduced taxation lowers the cost of doing business
• Reduced cost of production improves profitability
• The provision of a favorable business environment enhances growth and expansion (Bushe 26).
• Policies eliminate unfair competition giving room for small business to advance
• Promote innovation and creativity that is necessary for supporting the success
• Provide guidelines to promote small businesses (Ngota et al. 4).
• Support the establishment of the Small Enterprise Development Agency (SEDA) and the National Small Business Advisory Council (NSBAC)

Infrastructure and Capital in South Africa

1. Infrastructure is important in promoting prosperity and economic development
2. The government has taken measures to improve its infrastructure and promote entrepreneurship
3. It is determined to upgrade the existing and build new infrastructure
4. The government has shown a commitment to connecting supply chains to move goods and services efficiently (Higgs and Hill 28).
5. It also provides capital to support entrepreneurship and the development of small businesses

Positive Impact on Entrepreneurship in the Country

• Capital provides the necessary resources to start and expand businesses
• Policies provide a conducive operating environment that promotes the growth of businesses
• They promote healthy competition through the elimination of unfair competition from rival companies (Fatoki 2527).
• They support effective utilization of the available resources
• Infrastructure promotes business communication and interaction with customers

Works Cited

Bushe, Bernard. “The Causes and Impact of Business Failure among Small to Micro and Medium Enterprises in South Africa.” Africa’s Public Service Delivery & Performance Review vol 7, no.1, 2019, pp. 26.

Fatoki, Olawale. “The Impact of Entrepreneurial Resilience on the Success of Small and Medium Enterprises in South Africa.” Sustainability vol 10, no. 7, 2018, pp. 2527.

Higgs, Carla Jane, and Trevor Hill. “The Role That Small and Medium‐Sized Enterprises Play In Sustainable Development and the Green Economy in the Waste Sector, South Africa.” Business Strategy & Development vol 2, no.1, 2019, pp. 25-31.

Madzimure, Jeremiah. “The Influence of Strategic Networks and Logistics Integration on Firm Performance among Small and Medium Enterprises.” The Southern African Journal of Entrepreneurship and Small Business Management vol 11, no.1, 2019, pp. 7.

Mokoena, Sipho K. “The Role of Local Economic Development (LED): Some Empirical Findings on the Small, Medium and Micro Enterprises (SMMEs).” Journal of Public Administration vol 52, no. 2, 2017, pp. 466-479.

Ngota, Bernard L., Eric E. Mang’unyi, and Sookdhev Rajkaran. “Factors Impeding African Immigrant Entrepreneurs’ Progression In Selected Small and Medium Enterprises: Evidence from a Local Municipality in South Africa.” South African Journal of Business Management vol 49, no.1, 2018, pp. 1-9.