President Cyril Ramaphosa has assented to the National Small Enterprise Amendment Bill, which streamlines the support services government provided to small and medium businesses as part of broadening participation in the economy by a greater number of South Africans.

"The National Small Enterprise Amendment Act signed by the President amends the National Small Enterprise Act of 1996 to establish a new entity, the Small Enterprise Development Finance Agency, which will incorporate the Small Enterprise Development Finance Agency (SEFA), the Small Enterprise Development Agency (SEDA) and the Cooperative Banks Development Agency (SEDFA)," the Presidency said on Tuesday.

The SEDA and SEFA are currently located within the Department of Small Business Development.

The new Small Enterprise Development Finance Agency will function as a one-stop-shop for aspiring entrepreneurs and promote the development of the Co-operative Banking Institutions (CBIs).

"The Act also establishes the Office of the Small Enterprise Ombud Service, which may, as part of dealing with complaints, recommend that the Minister of Small Business Development declare certain practices in relation to small enterprises to be prohibited unfair trading.

"Under the new law, the Minister may make regulations setting the criteria to determine the classification of micro, small and medium enterprises as well as any legislation affecting small enterprises," the Presidency said.