Black Business Unity (BBU) representative Mike Molloyi told Channel Africa on Wednesday that the department was originally backed by organised business structures to strengthen support for cooperatives and community-based enterprises. According to Molloyi, early grant-driven support appeared briefly, but momentum later stalled, and engagement with stakeholders became difficult.

BBU argues that the department’s direction has shifted away from practical, on-the-ground support and toward processes that do not translate into jobs, payments to small suppliers, or reliable access to funding. Molloyi cited stalled plans for a small business ombud and said repeated attempts to secure a meeting with the department’s political leadership for partnership discussions had not succeeded.

Molloyi said consolidation of functions back into an existing economic ministry could save public funds and improve delivery, describing current structures as costly and duplicative. BBU also called for major restructuring of small business support agencies and boards, arguing that governance should include representatives rooted in township and rural enterprise realities.

The debate comes as small businesses face persistent constraints, including limited finance, bureaucratic hurdles, late payments in procurement chains, and tighter compliance expectations in the informal economy. Molloyi argued that regulation should distinguish between survivalist trading and larger informal retail operations, calling for local permits and regular inspections rather than blanket licensing requirements that could restrict livelihoods.

–ChannelAfrica–