EXPLAINERNation Watch Explains
Vaal small business guide: the Small Business Act and Spaza Shop Support Fund explained
New size limits, a merged state agency, an Ombud still on paper, and a R500 million fund for township shops. Our nine explainers for Vaal SMMEs and spaza owners, in one place.
By Staff Reporter · Published
As at 3 November 2026.
The Small Business Act
The National Small Enterprise Act, 1996, which most people call the Small Business Act, decides who counts as a small business.1,2
- New SMME size limits explained: new turnover ceilings have applied since 27 May 2026. In most sectors, many businesses that were “small” may now count as “micro”.3,4,5
- Construction size limits cut: builders’ small and medium ceilings went down, from R75m to R40m and from R170m to R150m.5,6
- Sedfa explained: Seda, sefa and the Co-operative Banks Development Agency are now one agency. The nearest listed office is in Sasolburg.7,8
- Small Enterprise Ombud explained: the Ombud for unpaid invoices is still on paper. As at 3 November 2026, we found no announcement that an Ombud had been appointed.9,10
- How the law changed, 1996 to 2026: the full timeline and what took effect when.
The Spaza Shop Support Fund
The R500 million fund offers qualifying spaza owners up to R100,000 in stock, upgrades and training.11,12,13
- What you can get and who qualifies: the R100,000 breakdown, the grant and loan parts, the rules and how much room is left.
- How to apply, step by step: the documents, the portal, the checks and how to avoid fronting.
- Emfuleni’s licence checklist explained: why the municipal licence is the biggest hold-up, and Emfuleni’s 19-document checklist.14,15
- Spaza fund, TREP, TEPF or Township Enterprise Fund?: which fund suits which business.
Key dates
| Date | What happened |
|---|---|
| 1 October 2024 | Most of the 2024 amendments to the Small Business Act took effect, including Sedfa’s establishment16,17 |
| 15 November 2024 | President Cyril Ramaphosa announced a R500 million fund for township and rural businesses11 |
| 1 December 2024 | Seda, sefa and the Co-operative Banks Development Agency closed17,18 |
| 27 May 2026 | New SMME size limits took effect3,5 |
| 9 June 2026 | National Assembly adopted a report recommending four Ombud candidates9,19 |
| 31 July 2026 | About 38% of spaza fund applications still had no valid municipal licence or permit14 |
| 30 September 2026 | 1,822 spaza fund applications approved20 |
| 27 October 2026 | TREP relaunched, with funding of up to R3m per business21,22 |
Sources
- National Small Enterprise Act 102 of 1996 (consolidated text and amendment history), LawLibrary
- National Small Business Amendment Act 29 of 2004, gov.za
- Section 8 of National Small Enterprise Amendment Act in effect, GoLegal / Sabinet (29 May 2026)
- National Small Business Act: micro, small, medium enterprise classification criteria replaced, SA Legal Academy (27 May 2026)
- Final regulations setting the criteria determining the classification of micro, small and medium enterprises, Government Gazette 54750, pp 5–6 (27 May 2026; signed 11 April 2026; scan of the Gazette hosted by a law firm)
- Revised Schedule 1 of the National Definition of Small Enterprise (GN 399), Government Gazette 42304, gov.za (15 March 2019)
- Written reply NW5563, Minister of Small Business Development, Parliamentary Monitoring Group (26 Oct 2026)
- Sedfa offices, Small Enterprise Development and Finance Agency (checked 3 November 2026)
- Committee Chairperson welcomes NA’s adoption of committee report recommending candidates for Small Enterprise Ombud appointment, Parliament of South Africa (9 June 2026)
- Portfolio Committee on Small Business Development: BRRR meeting, Parliamentary Monitoring Group (14 Oct 2026)
- Spaza shops implicated in child deaths to be shut down, SAnews (15 Nov 2024)
- Spaza Shop Support Fund information sheet, National Empowerment Fund (May 2025)
- Spaza Shop Support Fund official website, Spaza Shop Support Fund
- Spaza Shops Support Fund update; DSBD & SEDFA Q1 2026/27 Performance, Parliamentary Monitoring Group (12 Aug 2026)
- Business Licence Checklist (19 items), Emfuleni Local Municipality
- National Small Enterprise Amendment Act: Changes afoot?, Cliffe Dekker Hofmeyr (16 Oct 2024)
- National Small Enterprise Amendment Act 21 of 2024 (commencement history, including Proclamation 190 of 2024 and Proclamation 314 of 2026), LawLibrary
- Small Enterprise Amendment Act in force soon – except for Ombud chapter, SA Legal Academy (27 Sept 2024)
- National Assembly approves reports on … appointment of Small Enterprise Ombud, Parliament of South Africa (10 June 2026)
- Written reply NW5160, Parliamentary Monitoring Group (26 Oct 2026)
- TREP – Township and Rural Entrepreneurship Programme, Small Enterprise Development and Finance Agency (enhanced programme; up to R3m; open to all sectors)
- TReP relaunch raises funding ceiling to R3 million…, Community Newsroom (28 Oct 2026; relaunch at Seshego Stadium, Polokwane, on 27 October 2026)
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