interest rates still relatively low, share prices continued to rally. on the jse, share prices reached record highs in the second quarter of 2015 but have subsequently receded as growth projections for china weakened which in turn contributed to the chinese share market correcting from the exuberant levels previously reached. further contributing factors included bis central bankers ’ speeches softer commodity prices and expectations of an imminent increase in us interest rates. despite the downward correction, south african price - earnings ratios still seem to be on the demanding side when compared to historical trends. south african house prices have continued to rise over the past year, but at a subdued single - digit rate. ever since the onset of the global financial crisis, south africa ’ s public finances have been growth - supportive. caution about the upward trend in government debt has prompted authorities to adopt a programme of gradual reduction in the deficit, both through capping expenditure and through raising additional revenue. this has been somewhat complicated by the weakening in international commodity prices and the subdued domestic and global economy, resulting in downward pressure on tax collections and the extension of the original fiscal consolidation timeframe. small business in the economy “ small business ” is difficult to define. in south africa ’ s national small business act, passed in 1996, the definitions provide for “ micro enterprises ” to have fewer than 5 employees, “ very small businesses ” to have 6 to 20, “ small businesses ” to have 21 to 50, and “ medium businesses ” to have fewer than 200 employees. 2 government has recently raised the status of its small business initiatives with the creation, in 2014, of a department dedicated to this cause : the department of small business development, under the political leadership of minister lindiwe zulu, with an annual budget of approximately r1 billion. previously, programmes dealing with small business development fell under the department of trade and industry and the economic development department. estimates of the contribution of small, medium and micro enterprises ( smmes ) to the economy vary. in terms of contribution to gdp, an estimate of 52 to 57 per cent has been quoted by the deputy minister of trade and industry, elizabeth thabethe, who put the number of smmes in south africa at 2, 8 million and their contribution to employment at 60 per cent. moreover, looking ahead, the national development plan projects that, by 2030, no less than 90 per cent of new jobs will be created in small and expanding firms. small business, furthermore forms part of the backbone of a thriving society.

be predicted, and although the likelihood of failure could be very small, proper planning always puts authorities in a better position to successfully manage an orderly resolution. being caught unawares – without the necessary information, resolution tools and / or cooperation agreements – may cause delays during which asset values and market confidence are eroded and possibly destroyed. v. it is not only banks whose failure can cause a financial crisis. the failure of nonbank financial institutions can have equally devastating effects on financial stability, as was clear from the failure of lehman brothers, aig and others. authorities therefore need tools to deal with the failure of various kinds of financial institutions, as well as of financial groups. vi. financial failures cause hardship for ordinary people. financial crises can result in job losses, financial losses, and an inability to conclude transactions. an effective resolution framework should contain safety net arrangements to protect the most vulnerable citizens from severe hardship as a result of a financial failure. vii. cooperation and coordination among regulators and other authorities is essential to achieving an orderly resolution, especially if a financial group operates in various jurisdictions. coordination arrangements should be supported by appropriate legislation. the international response various international standard - setting bodies, including the g - 20 and the financial stability board ( fsb ), have made significant progress in developing and promoting the implementation of enhanced regulatory standards to increase the resilience of the financial sector to shocks. bis central bankers ’ speeches south africa ’ s own regulatory framework is undergoing significant changes as a result of this response, with the introduction of basel iii, … ( sam ), over - the - counter ( otc ) derivatives market reforms and the twin peaks regulatory framework, to name but a few. however, even the most effective regulatory framework cannot completely rule out the possibility that financial institutions and financial groups may fail. therefore, significant attention has been given to the development of new standards for resolution. g - 20 member countries have committed themselves to the objective of implementing measures which will allow large financial institutions fail in a way that critical economic and financial functions continue uninterrupted and without taxpayer money while maintaining the financial stability of the sector. to achieve this objective, the fsb has developed a set of new international standards that g - 20 member countries have to implement in order to make it possible to resolve the failure of large, complex and interconnected financial institutions, which often operate in multiple jurisdictions, without having to provide public support and without interrupting the provision of critical functions. drawing on lessons learnt during the global financial crisis