Small enterprises key to unlocking local economy but stifled by policy
Certain policies, such as those governing wage-bargaining practices, are hampering South Africa’s economic growth, as they often exclude smaller businesses and keep the “economic pie” from growing, says International Monetary Fund deputy MD David Lipton.
Speaking at a public lecture hosted by the University of the Witwatersrand’s Wits Business School on Tuesday, Lipton noted that the current approach to wage bargaining involving big business and labour, served the interests of established business and employed workers.
Wage agreements that use the process of extension to bind entire sectors to what has been agreed, present significant obstacles to small and medium-enterprises (SMEs).
“SMEs commonly produce with less machinery and equipment, which justifies lower pay and wages, [but] have no place at the negotiating table – yet, they have to live with the deals that are struck,” he pointed out.
Lipton added that the process in South Africa not only suppressed competition to established businesses, but also kept low-skilled workers out of the workforce, with the unemployed rendered voiceless.
He also noted that corruption was an “extremely important aspect of the governance issue” that needed to be eradicated as it reinforced the dynamics of economic exclusion.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation