National Small Business Amendment Act

26 November 2003 No. 25763 THE PRESIDENCY No. 1732 26 November 2003 It is hereby notified that the President has assented to the following Act, which is hereby published for general information:– No. 26 of 2003: National Small Business Amendment Act, 2003. AIDS HELPLINE: 0800-123-22 Prevention is the cure 2 No. 25163 GOVERNMENT G A E T E , 26 NOVEMBER 2003 - Act No. 26,2003 NATIONAL SMALL BUSINESS AMENDMENT ACT. 2003 GENERAL EXPLANATORY NOTE: ] Words in bold type in square brackets indicate omissions from existing enactments. Words underlined with a solid line indicate insertions existing enactments. in (English text signed by the President.) (Assented to 21 November 2003.) ACT 1996, so as to repeal all provisions To amend the National Small Business Act, pertaining to the National Small Business Council; to empower the Minister to facilitate and establish an Advisory Body to represent the interests business; to make the Public Finance Management Act, Agency; to make further provision in respect of the functions of the Agency; to do away with the requirement of calling for nominations for directors of the Board by notice in the Gazette; to repeal the provisions pertaining to alternate directors; and to substitute the Schedule to that Act, in order to reflect the current economic position; and to provide for matters connected therewith. of small 1999, applicable to the E IT ENACTED B fo11ows:- by the Parliament of the Republic of South Africa, as Amendment of section 1 of Act 102 of 1996

1. Section 1 of the National Small Business Act, 1996 (hereinafter referred to as the principal Act), is hereby amended by the deletion of the definitions of “constitution of the Council”, “Council”, “National Co-ordinator” and “provincial council”. 5 Substitution of Chapter 2 of Act 102 of 1996

2. The following Chapter is hereby substituted for Chapter 2 of the principal Act: “CHAPTER 2 Minister S power to facilitate and establish Advisoly Body 10 Minister’s power to facilitate and establish Advisory Body

2. The Minister must, within a reasonable time, facilitate a process aimed at the establishment of an Advisory Body to represent and promote the interests of small business as contemplated in the National Strategy for the Development and Promotion of Small Business in South Africa referred to in the definition of “National Small Business Support Strategy” in section 1. 15 Act No. 26,2003 NATIONAL SMALL BUSINESS MmMEhpT .4C:T, 2003 3. (1) The Minister must through an open and transparent process of consultation determine a constitution for the Advisory Body referred to in section 2. (2) The constitution of the Advisory Body must- (a) in general provide for- (i) (ii) (iii) (iv) the composition of the Advisory Body; the quorum and meetings of the Advisory Body; the procedure for the functioning of the Advisory Body; interaction with Parliament, the Department of Trade and Industry and statutory bodies; and (v) any other matter that may be necessary to facilitate the proceedings, activities or business of the Advisory Body; and 5 10 ( b ) specifically require the Advisory Body to advise the Minister on- (i) strategies to address identified market failures affecting the sector; 15 (ii) the impact of current and new legislation on small business; (iii) national standards pertaining to small business development and regulation; (iv) measures to ensure the creation of physical business infrastruc- 20 ture through viable business sites; (v) the development of skills in all aspects of running a business; (vi) steps to be taken to create access for small business into value chains; (vii) constraints affecting the viability of the small business 25 community; (viii) methods to liaise with the small business community to identify their needs; (ix) methods to monitor and influence the provision of support services to the small business sector; and any other matter that the Minister may deem appropriate.”. (x) 30 Amendment of section 9 of Act 102 of 1996

3. Section 9 of the principal Act is hereby amended by the addition of the following subsection, the existing section becoming subsection (1): “ ( 2 ) The Public Finance Management Act, 1999 (Act No. 1 of 1999), applies to 35 the Agency.”. Amendment of section 10 of Act 102 of 1996

4. Section 10 of the principal Act is hereby amended- (a) by the substitution in subsection (1) for paragraph (a) of the following paragraph: 40 “ ( a ) to expand, co-ordinate and monitor the provision of training, advice - and counselling [and any other non-financial services] to small business in accordance with the National Small Business Support Strategy;”; (b) by the substitution in subsection (1) (c) for the words preceding subparagraph 45 (i) of the following words: “to consult with any organ of government, the [Council] Advisory Body or a service provider in order to-”; (c) by the substitution in subsection (1) for paragraph (d) of the following paragraph: 50 “(d) to facilitate and co-ordinate research relating to support Pro- grammes by the Agency.”; and (d) by the addition in subsection (2) to paragraph (b) of the word “and” and the deletion of paragraph ( c ) 6 No. 25763 GOVERNMENT GAZETTE. 26 NOVEMBER 2003 -- - Act No. 26,2003 NATIONAL SMALL BUSINESS .AMENDMENT ACT. 2003 Amendment of section 11 of Act 102 of 1996

5. Section 11 of the principal Act is hereby amended- (a) by the substitution in subsection (3) for paragraph ( a ) of the following paragraph: “ ( a ) The Minister must, by notice in [the Gazette and in] two 5 newspapers which have general circulation throughout the national territory of the Republic, invite nominations for directors referred to in subsection (l)(a) and (b).”; to the Board (b) by the deletion of subsection (4): and (c) by the substitution paragraph: in subsection (6) for paragraph (a) of the following “(a) The Minister, with the concurrence of the Minister of Finance, of directors [, alternate determines the remuneration and allowances directors and co-opted directors of the Board] who are not in the full-time of the State.”. service 10 15 Amendment of section 19 of Act 102 of 1996

6. Section 19 of the principal Act is hereby amended- (a) by the substitution in subsection (1) for paragraph ( a ) of the following paragraph: “ ( a ) As soon as practicable after the end of every financial year the [Council] Advisory Body and the Agency must each compile a report on their respective activities during that year.”; 20 ( b ) by the substitution for subsection (2) of the following subsection: “(2) The [Council] Advisory Body and the Agency must furnish the Minister with any such other reports as the Minister may request.”: 25 (c) by the substitution subsection: in subsection (3j for paragraph ( a ) of the following “ ( a ) particulars of the work performed by the Agency and [Council] of the Advisory Body and objects of the National Small Business Support Strategy;”; and of progress achieved in furtherance (d) by the substitution for the second subsection (3) of the following subsection: of of [February] June of “[(3)] (4J The Director-General must submit the Annual Review Small Business to the Minister before the end each year and the Minister must table it in Parliament.”. __. Substitution of Schedule to Act 102 of 1996 30 35

7. The Schedule to this Act is hereby substituted for the Schedule to the principal Act. Substitution of long title of Act 102 of 1996

8. The following long title is hereby substituted for the long title to the principal Act: “To provide for the establishment of the [National Small Business Council] Advisory Body and provide guidelines for organs of state in order to promote small business in the Republic; and to provide for matters incidental thereto.”. the Ntsika Enterprise Promotion Agency; [and] to 40 Short title

9. This Act is called the National Small Business Amendment Act, 2003. 8 No. 25763 GOVERNMENT G e m , 26 NOVEMBER 200 3 Act NO. 26,2003 NATIONAL SMALL BUSINESS AMENDMENT ACT 2003 --r SCHEDULE “SCHEDULE (See definition of ‘small business’ in sectio,, 1) Column 3 full-time equivalent of paid employ- Column 2 Medium Small Very Small Micro Medium Small Very Small Micro Medium Small Very Small Micro Medium Small Very Small blicro VIedium Small v‘ery Small vlicro vledium ;mall Jery Small vlicro vledium Column 1 Sector or subsector in accordance with the Standard Industrial Classification Agriculture Mining and Quarrying Manufacturing Electricity, Gas and Water Construction Retail and Motor Trade and Repair Services rrade, Com- nercial Agents md Allied Services 200 :atering, 4ccommoda- ion and other rrade R6m L Small Very Small Micro Medium Small Very Small Micro ‘ ees 100 50 10 5 200 50 20 5 200 50 20 5 200 so 20 5 200 50 20 5 200 50 20 5 200 50 20 5 50 20 S Total turn- 1 R5m R3m R0.50m R0.20m R39m Column 5 Total gross asset value (fixed prop- erty ex- cluded) R5m R3m R0.50m RO. 10m R23m RlOm R4m R0.20m R51m - R13m - R5m R0.20m- R6m R2m RO. 1 Om R19m R5m R2m RS lm +- RO. 1 Om R13m R5.10m R0.20m R26m - R6m - R3m R0.20m R39m R5m R1.90m RO. 1 Om R5m Rlm R0.50m RO. 1 Om R6m - R0.20m R64m R0.60m RO. 10m R0.20m- R13m R0.60m RO. 1 Om R5.10m R0.20m 10 No. 25763 GOVERNMENT GAZE.lTE, 26 NOVEMBER 2003 Act No. 26,2003 NATIONAL SMALL BUSINESS AMENDMENT ACT, 2003 Column 1 Sector or subsector in accordance with the Standard Industrial Classification Transport, Storage and Communica- tions Finance and Business Services Community, Social and Personal Services Column 4 Total turn- over full-time equivalent of paid employ- Column 5 Total gross asset value (fixed prop- erty ex- cluded) R26m R6m I ees I 200 I Medium R13m R3m R0.20m R26m R3m R0.60m - RO. 1 Om R5m 1 20 * Micro - R13m __ R3m R3m - R0.50m R0.20m - RO. 1 Om R13m R6m Small Very Small I 50 Small Micro R3m R l m - R0.60m RO. 1 Om". R0.20m