Dear Portfolio Committee on Small Business Development,

Three years ago, the President made a commitment to reduce red tape for entrepreneurs to enable small businesses to thrive and contribute meaningfully to South Africa’s economic growth. However, little has changed, and entrepreneurs continue to struggle with excessive bureaucracy that stifles their ability to operate and expand.

According to the National Small Business Chamber (NSBC), 1,500 entrepreneurs were forced to shut down their businesses last year alone—a devastating blow not only to business owners but to the broader economy, which is in desperate need of job creation and inclusive growth. This is a crisis that demands urgent intervention.

Entrepreneurship is the Only Viable Solution to Unemployment
South Africa faces one of the highest unemployment rates in the world, and corporate and government job creation efforts have fallen short. The only sustainable path to employment creation is through entrepreneurship. Small businesses and startups have the potential to absorb thousands of job seekers—particularly the youth—but without decisive action to eliminate red tape, they will continue to fail before they even have a chance to grow.

The Ongoing Barriers That Are Killing Small Businesses
Cumbersome regulatory requirements – Entrepreneurs face excessive compliance burdens in registering businesses, obtaining licenses, tax clearances, and accessing state funding. The processes are slow, fragmented, and discouraging for new and existing businesses.
Delayed access to funding – Government funding programs remain difficult to access, with long waiting periods, bureaucratic inefficiencies, and restrictive eligibility criteria that exclude many viable businesses.
Lack of coordination among government departments – Entrepreneurs must engage multiple institutions, often receiving conflicting information and experiencing unnecessary delays that waste valuable time and financial resources.
High cost of compliance – Small businesses are forced to spend a disproportionate amount of their capital on regulatory compliance, rather than on growth, innovation, and job creation.
Entrepreneurs Have Solutions—Let Us Be Part of the Process
The issue is not a lack of solutions but a lack of implementation and engagement with those who understand the realities on the ground. Entrepreneurs are not just victims of red tape—we are solution bearers. We call on the Committee to actively engage entrepreneurs in crafting practical, workable solutions to remove the barriers strangling small businesses.

I strongly propose the following:

Establish a permanent Entrepreneurial Task Force within the Department of Small Business Development, comprised of experienced entrepreneurs to work alongside government in streamlining policies, funding processes, and compliance regulations.
Create a single digital platform for all business compliance and funding applications, eliminating the need for multiple, manual submissions across different government entities.
Fast-track funding approval processes and introduce a 30-day turnaround commitment for all funding applications, modeled on international best practices.
Launch a Red Tape Reduction Act for Small Businesses, ensuring that all new regulations are entrepreneur-friendly, simple, and cost-effective to implement.
My Commitment to Being Part of the Solution
As the founder of Winsome Africa, I have built a business focused on helping companies automate financial processes, improve compliance, and optimize efficiency. I have worked extensively with entrepreneurs, witnessing both the potential of small businesses and the unnecessary hurdles they face daily.

I volunteer to be part of any advisory group, task force, or working committee that is focused on tackling these issues. It is time we move beyond discussions and take real, measurable action to create an environment where entrepreneurship can thrive.

A Call for Immediate Engagement
I urge the Committee to convene a formal engagement with entrepreneurs, where we can present clear, actionable strategies to reduce red tape, improve access to funding, and create a business-friendly regulatory environment. The survival of our businesses—and the future of job creation in this country—depends on it.

I look forward to your response and to working together to transform South Africa into a nation where entrepreneurs can succeed, drive innovation, and create jobs at scale.

Yours sincerely,

Tumuge Lutic Mosoane
Founder & President, Winsome Africa