http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.90Change: -0.10
R/$ = 12.68Change: -0.17
Au 1086.58 $/ozChange: -8.91
Pt 986.50 $/ozChange: 1.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Nov 22, 2011

Labour laws, BEE hamper small business

Back
Africa|Business Growth|Environment|Africa|Manufacturing|Product|Service|Services
Africa|Business Growth|Environment|Africa|Manufacturing|Service|Services
africa-company|business-growth|environment|africa|manufacturing|product|service|services



Inflexible labour legislation and black economic empowerment are frustrating small business growth, according to an index released on Tuesday.

"Major regulatory barriers identified by the index are inflexible labour laws, broad-based black economic empowerment (BBBEE) and Sars [SA Revenue Service] inefficiencies," said Chris Darroll, CEO of SBP, the research company which compiled the index.

However, this could be seen as positive as these barriers were influenced by government policy, which could be reformed.

"South Africa is squandering a critical economic asset and source of job creation by failing to create an environment for the small and medium enterprise sector to flourish," Darroll said in a statement.

"But the good news is that this can be remedied."

The 2011 SME Growth Index is the first annual study produced by SBP.

It surveyed 500 small and medium enterprises (SMEs) and would initially track their performance for the next three years.

The firms chosen survived the first two years of operation, employed between 10 and 50 employees, and operated in sectors that the government had prioritised for growth -- manufacturing, business services and tourism.

Respondents said inflexible labour legislation constrained their growth.

"SMEs also express anxiety about increased inflexibility if proposed amendments to labour legislation materialise."

Less than half the firms on the panel had grown their staff numbers over the past five years, while less than a third had created new positions in 2011.

"South Africa's SMEs are simply not growing at the pace needed for large-scale wealth and job creation."

Darroll said the economic climate was given as the main reason for the lack of job creation.

Respondents were also unhappy about BBBEE requirements.

"Widespread dissatisfaction among all the firms, including black-owned businesses, is very evident, despite some 57% having accreditation," said Darroll.

"Accreditation comes with annual costs, is administratively burdensome, and is not balanced by enhanced access to procurement opportunities."

Half of respondents planned to grow in the short term.

"SMEs in the business services sector in particular are confident of growth, but manufacturers and tourism firms are less so.

"Just over half of business services firms envisage expanding staff numbers, as do 35 percent of manufacturers and a fifth of tourism firms," she said.

Darroll said older firms tended to employ more people.

"This is in contrast to government's emphasis on supporting start-ups."

Small businesses contribute more than half of South Africa's gross domestic product and make up 77% of non-government jobs, she said.

Edited by: Sapa
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Macro and Micro News
Not only were new oil and gas (O&G) discoveries in East Africa a catalyst for investment into road, rail and pipeline infrastructure, but they also contributed to the region’s economic growth, with growth of 5.5% projected for this year and an estimated 6% to 7% for...
Transnet has won the 2014 Nkonki State-Owned Company (SOC) Integrated Reporting Award for the best performer. Assurance and advisory firm Nkonki on Wednesday released the findings of its 2015 review of integrated reporting by South African SOCs. The report, titled...
Escalating electricity costs, shortage of electricity and a lack of backup power during load-shedding are eating into South African farming profit margins and even threatening the survival of some sectors of the agriculture industry, says Nedbank. As such, the...
More
 
 
Latest News
Updated 9 minutes ago Dual-listed investment holding company Tiso Blackstar is looking to increase its interest in steel pipe supplier Robor to 51%. The company already held a 19.4% stake in Robor and would now buy an additional R29.6-million worth of shares, to be settled through the...
Updated 2 hours 4 minutes ago Retail group Edcon has appointed Bernard Brookes as CEO and a member of the board, effective September 30, to succeed departing group head Jurgen Schreiber, who would remain on the board as vice-chairperson to ensure a smooth transition. Offering an extensive 35-year...
Possible wreckage from missing Flight MH370
Updated 2 hours 35 minutes ago Malaysia is "almost certain" that plane debris found on Reunion Island in the Indian Ocean is from a Boeing 777, the deputy transport minister said on Thursday, heightening the possibility it could be wreckage from missing Flight MH370. Malaysia Airlines was...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Meyerton-based steel tank manufacturer Structa Technology is currently rolling out a water infrastructure build programme that supports local municipalities, water utilities, schools, hospitals and clinics.
Alternative funding models could be expected to begin coming to the fore in South Africa’s renewable-energy sector as the market becomes more competitive and domestic development finance institutions (DFIs) begin scaling back their direct involvement in projects....
DIMITRI MARKOULIDES An innovation champion must involve employees in innovation projects and keep them updated to enable them to support and drive innovation and create the future of the business
An innovation champion course that trains executives to manage innovation in their organisations aims to help companies grow revenue streams and tap new markets, says business change management consultancy BMGI South Africa innovation practice lead Dimitri...
Future digital workplaces will require employees to continuously learn new “literacies”, including new media, information and technical skills, to help their company thrive and spur personal growth. Information technology (IT) research firm Gartner, thus, suggests...
Only 25% of large construction projects surveyed in KPMG’s Global Construction Project Owner’s Survey, released in June, were concluded on time and within budget over the last three years. “Every project owner wants predictability when it comes to large projects, and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96