ZF Mgcawu Residents Endorse National Small Enterprise Amendment Bill in Public Hearings

City — During a public hearing conducted by the Portfolio Committee on Small Business Development, residents of ZF Mgcawu District Municipality expressed their full support for the National Small Enterprise Amendment Bill. The hearing took place at Piet Thole Hall in Upington, Northern Cape Province, yesterday.

According to a new release by Parliament of South Africa, participants in the hearing lauded the proposed establishment of the Small Enterprise Ombud Service. They indicated that this service would protect their interests and promote fair trading practices. Calls were also made to prioritize individuals living with disabilities, as well as youth and women entrepreneurs.

Residents welcomed the Bill’s proposition to consolidate the Small Enterprise Development Agency, the Co-operative Banks Development Agency, and the Small Enterprise Financing Agency into a single entity known as the Small Enterprise Development Finance Agency (SEDFA). They said that this merger would reduce the tendency to work in isolated pockets and would address challenges such as fund collection from multiple entities and the lack of control over funding disbursement.

The concept of a “one-stop-shop” for services was also endorsed by the residents. They argued that this would expand the new entity’s reach and allow the government to provide financial support to a greater number of small and medium-sized enterprises (SMMEs) and cooperatives.

However, attendees also expressed concern over the current state of funding for small businesses. They noted that issues like corruption and nepotism have led many business owners to abandon their search for funding. In addition, participants found the requirement for small businesses to repay loans problematic, suggesting that small grants would be a more practical solution.

Residents further recommended that interactions regarding SEDFA should occur directly with those in authority, bypassing local municipalities which they viewed as a source of challenges, especially in funding applications. Questions were also raised about the timeline for the promised funding to reach small businesses under the proposed Bill.

SEDFA aims to support development programs for small enterprises, increase their contribution to the South African economy, and generally strengthen the capacity of service providers to support such enterprises domestically and internationally.

During the hearing, a 16-year-old, grade 11 entrepreneur took the opportunity to appeal for the Bill to include provisions for supporting young entrepreneurs, particularly teenagers.

Mr. Faiez Jacobs, the leader of the delegation, expressed gratitude for the valuable input received during the hearing. He stated that the committee would deliberate on all submissions once hearings have been conducted in all provinces.