National Small Business Amendment Act [No. 26 of 2003]


Government Gazette
REPUBLIC OF SOUTH AFRICA

Vol. 461 Cape Town 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.

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 in existing enactments.
(English text signed by the President.) (Assented to 21 November 2003.)
ACT To amend the National Small Business Act, 1996, so as to repeal all provisions pertaining to the National Small Business Council; to empower the Minister to facilitate and establish an Advisory Body to represent the interests of small business; to make the Public Finance Management Act, 1999, applicable to the 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.
E IT ENACTED by the Parliament of the Republic of South Africa, as B fo11ows:- 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 5 the Council”, “Council”, “National Co-ordinator” and “provincial council”.
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
15
Strategy” in section 1.
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.
(a) in general provide for- (2) The constitution of the Advisory Body must-
(i) the composition of the Advisory Body; (ii) the quorum and meetings of the Advisory Body;
(iii) the procedure for the functioning of the Advisory Body; (iv) 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
(i) strategies to address identified market failures affecting the
(ii) the impact of current and new legislation on small business; (iii) national standards pertaining to small business development
(iv) measures to ensure the creation of physical business infrastruc-
(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
(vii) constraints affecting the viability of the small business
(viii) methods to liaise with the small business community to
(ix) methods to monitor and influence the provision of support
(b) specifically require the Advisory Body to advise the Minister on-
sector;
and regulation;
ture through viable business sites;
chains;
community;
identify their needs;
services to the small business sector; and (x) any other matter that the Minister may deem appropriate.”.
Amendment of section 9 of Act 102 of 1996
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10
15
20
25
30
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-
(d) by the addition in subsection (2) to paragraph (b) of the word “and” and the grammes by the Agency.”; and
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 to the Board referred to in subsection (l)(a) and (b).”;
(b) by the deletion of subsection (4): and (c) by the substitution in subsection (6) for paragraph (a) of the following 10
paragraph: “(a) The Minister, with the concurrence of the Minister of Finance,
determines the remuneration and allowances of directors [, alternate directors and co-opted directors of the Board] who are not in the full-time service of the State.”. 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 20
[Council] Advisory Body and the Agency must each compile a report on their respective activities during that year.”;
(b) by the substitution for subsection (2) of the following subsection: “(2) The [Council] Advisory Body and the Agency must furnish the
(c) by the substitution in subsection (3j for paragraph (a ) of the following
“(a) particulars of the work performed by the Agency and [Council] Advisory Body and of progress achieved in furtherance of the objects of the National Small Business Support Strategy;”; and 30
(d) by the substitution for the second subsection (3) of the following subsection: “[(3)] (4J The Director-General must submit the Annual Review of
Small Business to the Minister before the end of [February] June of each year and the Minister must table it in Parliament.”.
Minister with any such other reports as the Minister may request.”: 25
subsection:
__.
Substitution of Schedule to Act 102 of 1996 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 the Ntsika Enterprise Promotion Agency; [and] to 40 provide guidelines for organs of state in order to promote small business in the Republic; and to provide for matters incidental thereto.”.
Short title
9. This Act is called the National Small Business Amendment Act, 2003.
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Act NO. 26,2003 NATIONAL SMALL BUSINESS AMENDMENT ACT 2003 --r
SCHEDULE
“SCHEDULE
L
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
(See definition of ‘small business’ in sectio,, 1)
Column 2 Column 3 Total turn-
full-time equivalent of paid employ- ‘ ees 1
Column 5 Total gross asset value (fixed prop- erty ex- cluded)
Medium 100 R5m R5m Small 50 R3m R3m Very Small 10 R0.50m R0.50m Micro 5 R0.20m RO. 10m Medium 200 R39m R23m
Small 50 RlOm R6m Very Small 20 R4m R2m Micro 5 R0.20m RO. 1 Om Medium 200 R51m - R19m Small 50 R13m - R5m Very Small 20 R5m R2m Micro 5 R0.20m- Medium 200 RS lm +- RO. 1 Om Small so R13m R5m Very Small 20 R5.10m R1.90m blicro 5 R0.20m RO. 1 Om VIedium 200 R26m - R5m Small 50 R6m - Rlm v‘ery Small 20 R3m R0.50m vlicro 5 R0.20m RO. 1 Om vledium 200 R39m R6m
;mall 50 Jery Small 20 R0.60m vlicro 5 R0.20m RO. 10m vledium 200 R64m
-
Services Small 50 Very Small 20 R0.60m Micro 5 R0.20m- RO. 1 Om
:atering, Medium 200 R13m 4ccommoda- ion and other rrade
Small 50 R6m Very Small 20 R5.10m Micro S 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
full-time equivalent of paid employ-
I ees I
Medium I 200
Small I 50 Very Small 1 20 * Micro Small
Micro
Column 4 Total turn- over
R26m
R13m R3m R0.20m R26m -
R13m __ R3m - R0.20m - R13m
-
Rlm - R0.20m
Column 5 Total gross asset value (fixed prop- erty ex- cluded)
R6m
R3m R0.60m RO. 1 Om R5m
R3m R0.50m RO. 1 Om R6m
R3m R0.60m RO. 1 Om".