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Revised SMME Classification in SA

The document announces the revised Schedule 1 of the National Definition of Small Enterprise in South Africa, as proclaimed by Minister Lindiwe D Zulu. Key changes include new turnover thresholds, the use of two proxies for defining small enterprises, and the removal of the Total Gross Asset Value proxy. Additionally, the 'very small enterprise' category has been merged into the 'micro enterprise' category for consistency with international practices.

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24 views2 pages

Revised SMME Classification in SA

The document announces the revised Schedule 1 of the National Definition of Small Enterprise in South Africa, as proclaimed by Minister Lindiwe D Zulu. Key changes include new turnover thresholds, the use of two proxies for defining small enterprises, and the removal of the Total Gross Asset Value proxy. Additionally, the 'very small enterprise' category has been merged into the 'micro enterprise' category for consistency with international practices.

Uploaded by

masondombongenisfundo
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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110   No.

42304 GOVERNMENT GAZETTE, 15 MARCH 2019

Small Business Development, Department of/ Kleinsake-ontwikkeling, Departement van

DEPARTMENT OF SMALL BUSINESS DEVELOPMENT


NO. 399Notice
399
 ...
National Small Enterprise Act (102/1996): Revised Schedule 1 of the National Definition of Small Enterprise in South Africa
of 2019
42304
15 MARCH 2019

Revised Shedule 1 of the National Definition of Small Enterprise


in South Africa
I, Lindiwe D Zulu, Minister of Small Business Development, acting in terms of
section 20 (2) of the National Small Enterprise Act, 1996 (Act No. 102 of 1996),
hereby proclaim as follows, in matters pertaining to the Definition of Small
Enterprise in South Africa-

Amend the Schedule of the Small Enterprise Definition as contained in the


National Small Enterprise Act, 1996 (Act No. 102 of 1996), read with the
National Enterprise Amendment Act, 2003 (Act No. 26 of 2003) and the National
Small Enterprises Act, 2004 (Act No. 29 of 2004) to:

1) New turnover threshold values to account for inflation, since the


Schedule was last revised in 2003.
2) Two proxies instead of three. The new schedule defines small enterprise
using two proxies - `total full -time equivalent of paid employees' and
`total annual turnover'.
3) Removal of the third proxy of Total Gross Asset Value in the current
definition as the proxy is often inappropriate and difficult to measure.
4) The size or class category `very small enterprise' collapsed into the
`micro enterprise' category. Many users found this size or class category
unhelpful and inconsistent with international practice.

In this proposed proclamation:

Definition of Small Enterprise

"Small enterprise" means a separate and distinct business entity, together


with its branches or subsidiaries, if any, including cooperative enterprises,
managed by one owner or more predominantly carried on in any sector or
subsector of the economy mentioned in column 1 of the Schedule and classified
as a micro, a small or a medium enterprise by satisfying the criteria mentioned
in columns 3 and 4 of the Schedule.

1 Initial

This gazette is also available free online at [Link]


STAATSKOERANT, 15 MAART 2019 No. 42304   111

SCHEDULE 1
P rise Act thresholdsf or def inin4 enterPrise size classesYb sector usin
The new National Small Enter 4 twoProxies

Sectors or sub -sectors in Size or class of enterprise Total full -time equivalent of Total annual turnover
accordance with the Standard paid employees
Industrial Classification
Agriculture Medium 51- 250 <_ 35,0 million

<_ 17,0 million

51- 250 <_ 210,0 million

<_ 15,0 million

5 50,0 million
5 10,0 million

5 60,0 million

<_ 75,0 million

Retail, motor trade and repair Medium 51- 250 < 80,0 million
services.

Micro

5_ 80,0 million

Catering, Accommodation and Medium 51- 250 540,0 million


other Trade

Micro 555,0 million

<_ 35,0 million

Community, Social and Personal Medium 51- 250 5 70,0 million


Services

....on ----, Micro

Lindiwe D Zulu,
Minister of Small Business Development
Date: 24fotfca,c
2

This gazette is also available free online at [Link]

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