CHAMSA (Chambers of Commerce and Industry of South Africa) is a Business Association that represents the united voice of business chambers in South Africa. It is an organization made up of four major South African business bodies, namely the Afrikaanse Handelsinstituut (AHI), the Foundation for African Business and Consumer Services (FABCOS), the National African Federated Chambers of Commerce (NAFCOC) and the South African Chamber of Business (SACOB). CHAMSA welcomes the opportunity given to make comment on the National Small Business Amendment Bill and to participate in the public hearings on the legislation.

Although it has not been possible in the time available to consult with the Chamber’s broad constituency, it is possible to express a broad consensus of agreement in respect of the overall intention of the legislation. From the memorandum accompanying the Bill it is apparent that there is a need to create a small business development agency that will co-ordinate the efforts of the various and disparate bodies that strive to promote and assist in the development of small business. Such a purpose is designed to reduce costs, rationalize the use of resources and generally to improve and extend access to such resources. Notably, the Bill focuses on the merging of Ntsika and NAMAC Trust. CHAMSA gives its support to the incorporation of these two bodies into a single agency.

CHAMSA notes that one of the implied problems (expectations) that feature in the background section of the memorandum (1.3.6) is the ‘more significant role in the support process’ required from business associations. Whilst CHAMSA would not wish to challenge that assertion, it must be pointed out that support efforts by business associations require resources in order to fulfill that role. Business associations rely on the subscription support of their members who in return demand services for such subscriptions. Given that constraint, business associations have extremely limited resources to assign to those non-member driven needs associated with business and/or entrepreneurial development. CHAMSA would hope that the new agency will endeavour to work with business associations in its small business development activities.

Notwithstanding the broad representivity requirements prescribed in clause 11(4), CHAMSA believes that a Board comprising as many as 15 persons – clause 11 (5) - could prove to be cumbersome and unwieldy, and we would urge that this provision be re-examined.

CHAMSA expresses it’s appreciation to the Portfolio Committee for the opportunity provided to offer comment on the Bill, and to appear before a public hearing.