The protection of small enterprises in South Africa : a comparison with jurisdictions in the USA, India and the UK

Abstract

Small enterprises form the backbone of many economies. However, despite their contribution to sustained economic growth, most small enterprises fail within five years. The Consumer Protection Act 68 of 2008 (CPA) in South Africa encompasses a mechanism that provides protection to small enterprises as consumers. This article assesses the extent of protection that is provided to small enterprises as consumers in terms of the CPA and seeks to establish whether this protection is warranted. Desktop research was conducted to draw a comparative analysis with three other jurisdictions, namely Michigan in the United States of America, India and the United Kingdom. The article posits that protecting small enterprises as consumers under the CPA is warranted. However, the article recommends revisiting the threshold applicable to juristic persons under the CPA and also applying it to franchisees that operate as juristic persons.