The Minister of Small and Medium Enterprises and Cooperative Development Sithembiso Nyoni yesterday announced plans to formalise the informal sector which she said generates about US$7.4 billion.
She said a study in 2012 had established that small and medium enterprises had created 5.7 million jobs. There were 2.8 million small business owners of 3.5million of small businesses.
Seventy-two percent of the owners did not employ anyone and only 28 percent, representing 800 000 owners, employed 2.9 million.
Nyoni said formalisation entailed registering and licensing the enterprises and involved:
- Registering a form of business as a private limited company, private business corporation, co-operative, sole trader or partnership;
- Registering with tax authorities;
- Have local authorities' licences; and
- Registering with NSSA and Manpower Development Fund, et cetera.
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