http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.44Change: 0.04
R/$ = 12.06Change: -0.01
Au 1187.60 $/ozChange: -1.82
Pt 1147.50 $/ozChange: -3.00
 
 
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
To meet the National Development Plan (NDP) target of creating 11-million jobs by 2030, South Africa needs over 49 000 SMEs growing at a rate of 20% per annum. In comparison, the country would need no less than 8.2-million small and micro-enterprises to create the...
With just hours to go before the Broad Based Black Economic Empowerment (B-BBEE) Amended Codes of Good Practice come into law on 1 May‚ the Department of Trade and Industry (DTI) had still not clarified several important points - including the draft Qualifying Small...
Despite 84.5% of South African workers receiving a regular wage or salary – which is high in world terms and even better than some developed countries – the subject of minimum wages remains one of the most heatedly discussed economic topics. And it’s often...
More
 
 
Latest News
Alaris CEO Jürgen Dresel
Defence and specialist antenna company Alaris has recorded improved sales in many of the regions where it operates and has made good progress towards concluding an acquisition that will provide it a footprint in the US, CEO Jürgen Dresel has told Engineering News...
Marc Granger
The technology gap between South Africa’s rail industry and the global industry is “very significant”, with “very few” existing black companies active in the local rail environment, says Gibela CEO Marc Granger. Gibela has been appointed to deliver 600 new...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Mercedes-Benz will launch ten plug-in hybrid models by 2017, says the German automaker’s parent company, Daimler. Following the launch of the S 500 plug-in hybrid, March saw the introduction of the C 350 e, the second model to feature the drive-train concept. Under...
Energy Minister Tina Joemat-Pettersson's recent unveiling of something of a road map for an upscaled and accelerated deployment of independent power producer (IPP) capacity has been widely welcomed. Besides plans to accelerate and expand the hitherto successful...
South African Airways (SAA) acting CEO Nico Bezuidenhout has firmly denied reports that a stake in the airline was going to be sold to Air China. “Categorically, SAA is not in any talks with any airline to sell itself at the moment,” he stated at a media briefing at...
Russian State-owned nuclear group Rosatom has confirmed that it is in talks with Nigeria about the construction of nuclear power plants (NPPs) in that country, but has denied that any agreement has been signed. This follows a recent report in the Nigerian media that...
HANDIGAS LPG LPG users can order products at the Afrox website or through the Afrox call centre and receive next-day delivery
Gas products and services company Afrox has launched a pilot programme to deliver its range of Handigas liquefied petroleum gas (LPG) to domestic consumers to fill a gap in the market, thereby expanding its direct contact with end-users.
 
 
 
 
 
 
 
 
 
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