Private individual being sued in the Small Claims Court

If you sue a company, it has to be represented by a lawyer. The company can't represent itself, as it is not a 'natural person'. And the Director or owner can't represent the company as they are (typically) not a lawyer.
If the respondent disputes the claim and fails to agree a settlement with the Registrar, the case will be sent to the District Court.
 
The concept of the Small Claims Court is good. It was set up to sort out arguments not expensive enough for the District Court thereby preventing delays at the courts. Unfortunately, many legal people think they're losing income by allowing people to settle arguments with a judge deciding on the matter. It's no big deal to defend yourself (I did, and learned quite a bit of human nature in other SCC disputes).