The National Small Enterprise Amendment Act (2023) aims to streamline the support services that government provides to small and medium businesses. The National Small Enterprise Amendment Act amends the National Small Enterprise Act of 1996 and provides for the establishment of the Small Enterprise Development Finance Agency (SEDFA) which will replace and merge the Small Enterprise Financing Agency (SEFA), the Co-operative Banks Development Agency (CBDA) and the Small Enterprise Development Agency (SEDA). The SEDFA will function as a one-stop-shop for entrepreneurs and promote the development of Co-operative Banking Institutions (CBIs). The SEDFA will be located in the Department of Small Business Development. It aims to integrate government support (both financial and non-financial) to small businesses and has the folowing objectives:

• Design and implement development support programmes for small businesses to:
  • Facilitate the building of sustainable and competitive small enterprises;
  • Facilitate the promotion of entrepreneurship;
  • Facilitate the creation of an enabling operating environment for small enterprises;
  • Facilitate access by small enterprises to financial resources, non-financial resources, capacity-building services, products and services;
  • Promote participation of historically disadvantaged people in small enterprises
  • Facilitate international and national market access for products and services of small enterprises
  • Build partnerships across all spheres of government, the private sector and relevant stakeholders to assist the Agency in achieving its objectives
  • Promote a service delivery network to facilitate access and outreach to development support for small enterprises
  • Facilitate and coordinate research relating to small enterprise support programmes;
• Promote a service delivery network that increases the contribution of small businesses to the South African economy, and enhances economic growth, job creation and equity in historically disadvantaged communities
• Support, promote and develop cooperative banks and cooperative financial institutions
• Strengthen the capacity of
  • Service providers to support small businesses
  • Small businesses to compete successfully domestically and internationally

The Act also establishes the Office of the Small Enterprise Ombud Services, which can deal with complaints and promote a more equal trading environment for small businesses. Information can be obtained from the SEDFA website: www.sedfa.org.za