Parliament unhappy with treatment of small, medium and micro-enterprise by privately owned companies

Small Business Committe unhappy with treatment of SMMEs

The Portfolio Committee on Small Business has expressed its deep dissatisfaction with the bullying behaviour of large, privately owned companies towards small, medium and micro-enterprises (SMMEs), which are mostly black-owned.

The Committee expressed this sentiment after a briefing yesterday from a number of SMMEs, which mentioned the ill-treatment and marginalisation they experienced at the hands of these companies, most of which have an international footprint.

The Committee views the behaviour as a worrying development that is rife throughout the country and which needs to be addressed.

In light of the fact that business practice in government departments and state-owned companies is legislated and regulated through a Cabinet resolution of 8 November 2007, the Committee may consider establishing legislation that will regulate business dealings between private companies, said Ms Ruth Bhengu, Chairperson of the Committee.

Ms Bhengu said the Committee is grateful that small businesses are beginning to use the Committee as a platform to air their challenges. The Committee has grouped all the complaints into categories of urgency, saying that some of the complaints cannot wait for Parliament to resume from recess in August.

Ms Bhengu reiterated that there was a greater need to protect and nurture small businesses and cooperatives, because they are expected to play a big role in the National Development Plan target of creating 9.9 million new jobs by 2030.

Source: Government of South Africa