Thousands of small firms received a welcome shot in the arm today with the news that BEE laws may be relaxed in order to support and encourage small businesses in South Africa.


The SABC said:
Hundreds of thousands more small South African businesses, both black and white, may not have to qualify for Black Economic Empowerment (BEE) codes of good practice. This was raised at the annual Small Business Summit in Cape Town today.

The aim of the codes is to make it easier for small businesses to operate and to grow the sector.

There are about two million small and micro businesses in South Africa. It has doubled over the last decade, but there is room for far more.

Mandisi Mpahlwa, the minister of trade and industry, says: "It is enterprise and entrepreneurs rather than sound macro-economic policies alone that will be the catalyst for sustainable growth."

Companies to qualify for government procurement
Up until now, small companies with turnovers of under R100 000 have been exempt from BEE requirements. The threshold will likely be raised to turnovers of between R3 million and R5 million.

These companies will qualify for government procurement regardless of ownership or status. They will also be exempt from employment equity and skills development requirements. The proposal will be taken to Cabinet later this month.

Meanwhile, the Small Business Advisory Council has been set up to help boost the sector.

SABC News