South African entrepreneur Heather Malcomess plans to approach the Department of Trade and Industry (DTI) in an attempt to alter newly proposed legislation in favour of supporting Small, Medium and Micro Enterprises (SMMEs).
The DTI hosted a Law Symposium in Johannesburg last week to discuss further possibilities for export-orientated industries and the building of industrial capabilities and other foreign related developments as part of a recently drafted Bill on Special Economic Zones (SEZ).
HumanIPO reported on Malcomess’ plans to challenge the DTI at the Law Symposium last week, regarding the lack of support for SMMEs.
Unsatisfied with the way issues were dealt with, she has resolved to approach symposium speakers Astrid Ludin and Farouk Cassim with a request to address a gathered group of SMMEs so interaction can take place and the authorities can provide answers.
“The collapse of the economy in South Africa and fleeing of more big companies is imminent,” Malcomess posted on SM(M)E network blog Traderz.
She continued: “The reliance on SM(M)E to carry on is not encouraging but the only method left.”
She went on to explain the lack of advantages taken from SMMEs with the omission of partnership possibilities, which previously made up for inefficiencies in other areas.
One of the speakers at the symposium Phil Mindin, a legal expert from the United States, mentioned the shortcomings in his speech.
However, Malcomess was unhappy there were no opportunities for questions or clarification.
Furthermore, she “felt as if you had been in a drilling hall with your mind at the end of it” as speakers were rushed to adhere to the allocated time schedule.
SMME regulations, as addressed by Cassim, from the University of Witwatersrand, did not fully portray the status quo.
The entrepreneur’s greatest concern is the affordability of SMME registration, the cost of which has increased from ZAR2,500 (US$275) to ZAR20,000 (US$2,200), according to Malcomess.
“It needs to be taken into consideration that a lot of SM(M)E(s) are poor in both website registration (due to lack of trust) and in the physical process due to not understanding the requirements. Some SME battle to read or don’t understand English very well,” Malcomess stated.
Other notable announcements made include the replacement of laws guarding against infringement of copyright regarding company’s trading names, with a number allocation system as by the Commissioner for the Company Law Administration.
