Date: 21 December 2020
As government introduces new legislation to further support small, medium and micro-sized enterprises (SMMEs), recently released data from the 2019 Annual Financial Statistics (AFS) survey shows the growing role that small businesses play in the formal business sector. The National Small Enterprise Amendment Bill 2020, gazetted recently, outlines the establishment of an ombud service that will provide legal support to SMMEs. The Small Enterprise Ombud Service will handle complaints, resolve disputes and enforce contracts in the sector.
The support of SMMEs recognises the sector as an important driver of economic growth. Data on turnover from the AFS survey show that small businesses in particular have made inroads in South Africa’s formal businesses sector.
Below are three facts from the survey on small business turnover:
- Small businesses generate just over one-fifth of total turnover
- Small business has been flexing its muscles
- Small business has increased its influence in construction and business services.
Note: Read the full release from Statistics South Africa (17 December 2020) here