Small Business Development Committee recommends regulation of small-scale businesses
The Portfolio Committee on Small Business Development has recommended for the regulation of small-scale businesses in townships, tuck shops, spaza shops, street vendors and general dealers.
“We feel strongly that the regulation will address issues of unfair business practice in this sector and ensure that owners also contribute to the tax revenue,” said Committee Chairperson Ms Ruth Bhengu.
The Committee undertook an oversight visit to KwaZulu-Natal, Eastern Cape and Gauteng to assess the state of small, medium and micro enterprises (SMMEs) and cooperatives. The focus was largely on tuck shops, spaza shops, street vendors and general dealers.
Ms Bhengu said it became clear during the visit that these businesses had initially operated in the township and village economy without any competition or assistance from government, but the entrance of foreign nationals in the space created unfair competition.
“The emergence of foreign nationals demanded that local business owners have a better way of organising themselves and the development of tailor-made support services from the Department. Wholesalers also compete in this space, making the playing field uneven,” she added.
As far as these small-scale businesses are concerned, the Committee has recommended that the Department pay attention to the felt needs of the sector and develop programmes aimed at responding to them.
The full oversight Committee report will now be published in Parliament’s Announcements, Tabling and Committee Reports (ATC) before being debated and adopted by the National Assembly.
Meanwhile, the Committee also deliberated on the findings and recommendations of the programme review of the Department of Small Business Development. Conducted by auditing firm SizweNtsalobaGobodo on behalf of the Department, the review was done at the behest of the Committee in order to ensure that services provided by the Department are responding to the felt needs of the SMMEs and cooperatives.
Enquiries:
Justice Molafo
Tel: 021 403 8444
Cell: 081 424 7481
E-mail: jmolafo@parliament.gov.za
