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'SMMEs hit by late payment'

LATE or non-payment for services by government departments and agencies is adversely affecting the sustainability of entrepreneurs and small businesses.

LATE or non-payment for services by government departments and agencies is adversely affecting the sustainability of entrepreneurs and small businesses.

Speaking at the launch of the small, micro and medium enterprises hotline in Pretoria yesterday Trade and Industry Minister Rob Davies said many companies were forced to wait more than 90 days for payment by public entities. This despite the Public Finance Management Act requiring that public entities pay in 30 days.

"The impact of the crisis on small business is not known but we know it's profound," he said.

While access to government procurements was competitive, experience had shown that dealing with the state came hand in hand with late or non-payments.

The reasons included contracts not being properly signed and companies not receiving their tax clearance certificates.

The hotline number is 0860-766-3729. - Sapa

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