Chapter 13 - Small Business Law
Small business means a separate business entity, including profit-making and non-profit making enterprises (such as a cooperative), which is managed by one or more owners and which can be classified as a micro, very small, small, or medium enterprises (also referred to as SMMEs). Micro is the smallest type of business and has no more than 5 people working for the business; a ‘very small’ business has no more than 20 people working for it, a ‘small’ business can employ up to 50 people, and a medium business can employ up to 200 people, depending on the industry.
Categories of SMMEs
The National Small Business Act divides SMMEs into the following categories:
The government has passed the National Small Business Amendment Act (No 29 of 2004) which provides for the establishment of the Small Enterprise Development Agency (SEDA) and the incorporation of organisations such as Ntsika Enterprise Promotion Agency, the National Manufacturing Advisory Centre and any other designated institutions into SEDA. This will be dealt with in more detail in the chapter.
This chapter looks at the laws that promote small business development, what the laws say a person who runs his or her own business must do and the support available from the government in order to do this.
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