11 Nov 2026

Government recognises small and medium enterprises (SMMEs) as key drivers of economic growth, diversification and job creation and is committed to improving the business environment to support their growth.

Answering a parliamentary question, Minister of Trade and Entrepreneurship, Mr Tiroeaone Ntsima, said the main challenges facing SMMEs included limited access to finance, business management skills, limited market access and technology adoption.

He said improving the business environment remained a priority, adding that the ministry was implementing the Doing Business Reforms Roadmap and developing a one-stop service system that would enable entrepreneurs to access key services online.

These include company registration, licensing, tax registration and other business services.

Through the Wealth Creation Programme, government provides grants to qualifying enterprises, with particular focus on youth, women, persons living with disabilities and other marginalised groups.

In addition, Mr Ntsima said the Citizen Entrepreneurial Development Agency (CEDA) provided concessionary loans, while the Local Enterprise Authority (LEA) offered training, mentorship and product certification support.

“Together, these interventions are strengthening the entrepreneurial ecosystem and expanding opportunities for wealth creation,” he said.

On concerns about Companies and Intellectual Property Authority (CIPA) fees, Mr Ntsima said the authority last reviewed its fees in 2019 and currently had no plans to either increase or reduce them.

He explained that the existing fees were set below the actual cost of service delivery to balance support for small businesses with the sustainability of CIPA’s operations.

He further explained that entrepreneurs could register either a business name or a company name with CIPA, noting that many SMMEs overlooked the distinction between the two.

A business name, he said, was simply the name under which a person conducted business, while a company was a separate legal entity capable of owning property, entering into contracts and suing or being sued in its own name.

Mr Ntsima advised entrepreneurs to choose the registration option that best suited the size and stage of their businesses.

He said a business name was often suitable for sole proprietors and micro-enterprises because it had simpler compliance requirements.

A company, however, was more suitable for enterprises with growth ambitions, multiple owners or more complex operations, although it carried additional obligations, including the filing of annual returns.

Entrepreneurs not yet ready to meet those obligations could opt for a business name, which required returns only once every three years.

He added that CIPA had digitised its services, making business registration and compliance easier and more accessible.

The minister said the ministry was also working with relevant ministries, departments, agencies, local authorities and the private sector to review regulations, licensing requirements and administrative processes.

“Our objective is to create a practical, business-friendly environment that reduces unnecessary compliance costs while supporting enterprise growth. Government also recognises that many citizens now operate informal home-based, mobile and digital businesses that do not fit neatly within traditional regulatory frameworks,” he said.

To address these challenges, Mr Ntsima said government was reviewing the Small Business Act of 2002, the Industrial Development Act of 2020 and the Cooperative Societies Act of 2013, while also developing a dedicated informal sector programme.

He said the reforms would ensure that policies remained relevant, responsive and aligned with evolving business realities and international best practices.

Government, he added, remained committed to fostering entrepreneurship and supporting start-ups and small businesses across the country.

The reforms were intended to ensure that regulatory requirements were affordable, proportionate and supportive of enterprise development, thereby encouraging formalisation, growth and job creation rather than creating barriers to entry.

The question was raised by Member of Parliament for Kgatleng West, Dr Unity Dow, who sought to know steps the ministry was taking to promote the success of SMMEs and whether government would consider reviewing licensing processes to reduce bureaucratic red tape and provide grants and subsidies for start-ups.

She also asked whether government would consider reviewing CIPA fees and removing unnecessary and burdensome requirements relating to parking bays, the number of toilets and classroom sizes for pre-schools , among other regulatory provisions.

Dr Dow further sought to know whether regulations and requirements could be realigned to reflect the changing realities of businesses on the ground. ENDS