REPORT ON THE SMALL BUSINESS BILL
1. BACKGROUND
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The Draft National Small Business Enabling Bill ("the bill") was
published for public comment by the Centre for Small Business
Promotion at the Department of Trade and Industry on 15 December
1995. The bill was tabled at the Trade and Industry Chamber of
Nedlac on 8 February 1996.
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The bill addresses the institutional and regulatory framework
required for the promotion of small, medium and micro enterprises
(SMMEs) and specifically provides for:
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The setting of standards to define small, medium and
micro-enterprises.
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The establishment of the National Small Business Council, to
represent and promote the interests of SMMEs at national,
provincial and local levels, and to advise organs of the state on
economic policy affecting SMMEs.
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The establishment of the Ntsika Enterprise Promotion Agency to
expand and coordinate the provision of non-financial support to
SMMEs through intermediaries.
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An overall regulatory framework to provide guidelines on
assessing the impact of laws and policy on SMMEs to the executive
organs of state at the national, provincial and local levels.
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In addition to the Nedlac process, the Centre for Small Business
Promotion disseminated the draft bill widely for comment and
conducted a series of workshops at provincial level to discuss the
bill. Members of the constituencies represented at Nedlac also
participated in this process.
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The Trade and Industry Chamber of Nedlac recognised the great
importance and practical significance in creating an enabling
environment for SMMEs and noted the inclusiveness of the policy
process in drafting the bill. Nedlac accordingly agreed on a
special procedure to expedite its consideration of the bill with
the Executive Council mandating the Trade and Industry Chamber to
finalise an agreement.
2. THE PROCESS IN NEDLAC
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On 8 February 1996, the Trade and Industry Chamber commented on
the bill and agreed on a process to finalise its consideration of
the bill with the view to forwarding its report to the Executive
Council meeting on 25 April 1996. Constituencies were invited to a
workshop on 16 February 1996 to consider wider stakeholder inputs
for incorporation into a revised draft of the bill.
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The revised draft bill, incorporating the chamber's input and
public submissions, was tabled at the Trade and Industry Chamber
meeting held on 11 April 1996. The chamber recognised the urgency
to implement the bill and agreed that the Executive Council meeting
on 25 April 1996 be asked to mandate the Trade and Industry Chamber
meeting on 2 May 1996 to conclude an agreement on the bill.
Business and labour also undertook to consult within their
constituencies on the revised bill.
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The Executive Council meeting on 25 April 1996 mandated the
Trade and Industry Chamber to conclude an agreement on the
bill.
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On 2 May 1996, the Trade and Industry Chamber endorsed the
general policy direction taken by the bill and agreed that
constituencies, or their members, would relate specific concerns or
reservations on points of detail directly to the Centre for Small
Business Promotion. In the interests of securing maximum consensus
on the Bill, the Nedlac secretariat convened a meeting of
representatives of business, labour and government and a legal
expert who provided technical assistance. Following this a series
of technical amendments to the draft bill were proposed, in order
to address the concerns of the parties.
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A revised draft of the bill, incorporating the proposed
technical changes, was circulated to the parties, and the Trade and
Industry Chamber meeting on 30 May 1996 agreed that business and
labour would further consult on the additional technical changes
made to the bill and submit their responses to the Nedlac
secretariat by 10 June 1996.
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The Trade and Industry Chamber on 13 June 1996 reached agreement
on the revised bill (attached as "annexure A"). Submissions from
business and labour (attached as annexures "B" and "C"
respectively) reaffirmed their endorsement of the bill and outlined
the concerns and reservations within their constituencies. The
chamber acknowledged the right of the constituencies, or their
members, to speak to these concerns in the Parliamentary
process.
3. CONCLUSION
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This report, therefore, completes consideration of the issue
within Nedlac, and the report, and agreed draft bill, is hereby
submitted to leaders of business and labour and to the Minister of
Trade and Industry in terms of section 8 of the Nedlac Act, No. 35
of 1994.