Financial inclusion for micro entrepreneurs under the light of the new regulations for small enterprises

Luz Helena Hanauer ()
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Luz Helena Hanauer: Pay Capital

Development Finance Agenda, 2025, vol. 10, issue 1, 12

Abstract: The recent regulations introduced under the National Small Enterprise Amendment Act 21 of 2024 (NSEAA) have sparked significant concern among stakeholders. While the intention behind these regulations is to create a more structured and fairer environment for small enterprises, they hinder financial inclusion for vulnerable populations and introduce additional barriers to trade. This is due to the profound misunderstanding of the sector and the inability of the regulator to conceive a normative world outside of the “formal economy†framework that has traditionally been in place in South Africa. In a country where the informal economy employs more than 40% of the workforce in South Africa and we are battling with an unemployment rate of 32.1%, it is concerning that all the regulations point towards the aim of an aspirational formality instead of recognizing and solving towards optimizing the daily reality of millions of South Africans.

Date: 2025
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