SMD

Annual Report 2023/2024

8.

LEGISLATIVE AND OTHER MANDATES

8.1 Constitutional Mandate The Constitution is the supreme law of the Republic of South Africa. Along with the Bill of Rights, it forms the legal foundation of a democratic South Africa and sets out the rights and duties of its citizens and defines the structure of government. All laws of the country must be consistent with the Constitution, and it further requires that all spheres of government to work together to address poverty, underdevelopment, marginalisation of individuals and communities and other legacies of apartheid and discrimination. In this light, all government institutions, entities and municipalities ultimately derive their mandate from the Constitution. The Department of Small Business Development (DSBD) and its public entities derive its primary mandate from the Constitution of the Republic of South Africa, Act 108 of 1996, and in particular 8 : 1. Section 22 – enshrines freedom of trade, occupation and profession: “Every citizen has the right to choose their trade, occupation or profession freely. The practice of a trade, occupation or profession may be regulated by law”. 2. Section 217 – which requires that: a) When an organ of state contracts for goods and services, it must do so in accordance with a system which is fair equitable, transparent, competitive and cost-effective; b) It does not prevent the organs of state from implementing a procurement policy providing for the protection or advancement or persons or categories of persons disadvantaged by unfair discrimination. Fully aligned to and arising from the Constitution, the 1995 White Paper 9 identified the need for a systematic national framework within which the different policies and programmes at national, regional and local level could be coordinated towards the creation of an enabling environment for small enterprises. Given such an enabling environment, it was expected that the millions of Small, Micro and Medium Enterprises (SMMEs) and Co-operatives would willingly accept responsibility for the operation, growth and progress of their enterprise. Therefore, policies need to be in turn informed by the evidence-based research approach with national, regional as well as sectoral developments, considering differences between sectors like manufacturing, tourism or construction, as well as differences between the categories of SMMEs and Co-operatives.

8 Republic of South Africa. (1996). The Constitution of the Republic of South Africa, 1996 (Act 108 of 1996). Pretoria. Government Printer. 9 Republic of South Africa. (1995). White Paper on a National Strategy for the Development and Promotion of Small Business in South Africa; Parliament, 20 March 1995

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Department of Small Business Development • GENERAL INFORMATION • Part A