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Davies looks to reduce SMME red tape

The minister says red tape hampers growth and makes it harder to start businesses.

Trade and Industry Minister Rob Davies. Picture: GCIS

JOHANNESBURG - Removing red tape for small businesses would make it easier for people to trade in municipalities, Trade and Industry Minister Rob Davies said on Wednesday.

The minister said red tape hampered growth and made it harder for people to start their own businesses.

Davies made the comments at the launch of the Guidelines to Reduce SMME (small, medium and micro enterprises) Red Tape in Municipalities.

He outlined the need for such a campaign.

"One of the reasons we want to cut and reduce red tape is because it is a burden on small business [and] is an impediment to effective regulation."

Davies said that in the past, there were long and difficult procedures for aspiring business owners.

The department has now taken necessary steps to change that.

He said there were various factors involved in registering a small business.

Many processes needed to be fixed, Davies added.