Small businesses and the South African Companies Act: does one size really fit all?

Abstract

This dissertation will provide a critical analysis on whether the South African Companies Act adequately serves the needs and interests of small formal businesses in South Africa. In this regard, the thesis will determine whether the Companies Act creates a more enabling environment for small business than the Close Corporations Act which was well known as being the ideal business legislation for small businesses. This will be done by determining whether it is indeed easy for an ordinary South African to open and run a small business in terms of the Companies Act or the Close Corporation Act (which no longer allows for new close corporations to be formed). Furthermore, the dissertation will also look into how other foreign jurisdictions have governed small businesses and what constitutes an appropriate means for such jurisdictions in terms of regulating small businesses. Lastly, the dissertation will conclude by providing recommendations on the Companies Act and the Close Corporations Act, and by providing a proposed solution to the issue which pertains to regulating small businesses.