http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.69Change: -0.02
R/$ = 10.97Change: -0.01
Au 1194.40 $/ozChange: -4.05
Pt 1219.20 $/ozChange: -10.30
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Nov 22, 2011

Labour laws, BEE hamper small business

Back
Africa|Business Growth|Environment|SBP|Africa|South Africa|Manufacturing|Product|Service|Services|Chris Darroll
Africa|Business Growth|Environment||Africa||Manufacturing|Service|Services|
africa-company|business-growth|environment|sbp|africa|south-africa|manufacturing|product|service|services|chris-darroll



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)
 
 
 
 
 
 
 
 
 
Latest News
Updated 16 minutes ago The South African Chamber of Commerce and Industry’s (Sacci’s) Copper Theft Barometer increased to R13.2-million in October – 43% higher than in October 2013. The barometer had increased from R13-million in September and R12-million in August and recorded its fifth...
Updated 42 minutes ago SABMiller Plc, The Coca-Cola Company and Gutsche Family Investments (GFI) are combining their soft drinks bottling operations in South and East Africa to create a group with $2.9-billion in revenue across 12 fast-growing markets. The new company, which will be...
Updated 47 minutes ago Petrochemicals giant Sasol’s industrial sludge bioremediation project will move into full commercial scale over the next two years to treat its 200 000 t/y of industrial sludge. The project made use of aerobic composting to convert sludges from Sasol’s Bioworks water...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
JAMES ROBERTS The MOM incubator was designed to help babies in developing nations who were dying in conflict-struck nations or who do not receive hospital care
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.
 
 
 
 
 
 
 
 
 
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