Red Tape Hampers ation e r C b o J d n a s s e n i Bus Business
is one of Over-regulation r small the obstacles fo rive businesses to th e’s er and grow, and th e or m r fo a prospect ence and control, interfer siness restrictions on bu minent activities if the im ill is B Business License s te ri w d, promulgate . la fo Donald Makha
If Cabinet would pass the Business Licensing Bill, this would compel hawkers to register their businesses with local municipalities at a fee. Image By Courtesy of SA Tourism .
T
he Diagnostic Overview, produced as a prelude to the n National Development Pla ng (NDP) by the National Planni r iste Min by ded hea C) (NP Commission has l, nue Ma in the Presidency, Trevor s as the main identified small businesse economic drivers for job creation and . development
more red tape “All it will do is to create for people who and add another cost esses,” said Fred sin want to start new bu Cape Chamber Jacobs, president of the ent. tem of Commerce in a sta reported that In its vision 2030, the NPC s will be tem, which a large percentage of the job He said the current sys activities ted rien ic-o est dom in , had greatly d 91 create was introduced in 19 government the said n licensing dha ess Gor and in the services sector. sin n, bu itio In add simplified the to g rkin wo ly” ive businesses ess to has been “progr created in process, restricting it for small nts me “Some 90% of jobs will be issues were uire req ety tax saf d the y an h plif where healt The economy sim l wil ld sho thre r ove le reason to small and expanding firms. litt turn s business, and the iness entry involved and there wa the graduated legislation. and r will be more enabling of bus the yea by this sed sed po rea inc pro be scrap it as to credit and . ised rev and expansion with an eye be l ort. However, rate structure wil for the Bill market access,” read the rep “The only reasons given reform and tory ula of reg a set ed authorities pos the pro lp a he ly, the NDP calls for ent uld rec More were that it wo eurship ren rep ns ent ss atio ma Rel st our boo Lab cit to t illi practices suppor amendments to the deal with unspecified ployment Em of ons diti the government e Con ic giv in South Africa. Bas uld Act and and that it wo ant ific sign r the fur a d ess activities are Act have signalle arly a an idea of what busin s. The regulatory burden is cle country in all the sse ine the bus oss on acr burden taking place businesses. be achieved concern for South African uld of the SME municipalities. This wo E Index Report, SBP says C [Companies SM According to the first round CIP 2 if 201 rse its In cou as a matter of ed by the le, dab lau te qui are s mmission] aim Co Growth Index 2012, produc nt’s rty governme and Intellectual Prope P), a section simplify the establishment to Small Business Project (SB y. ally ntl cip cie prin effi dents was working e, it 21 company, 19% of respon obstacle of businesses. But in practic key the s as rou tion one y ula iall reg the impression identified would impose potent “It is difficult to avoid tion lica imp business by on and on to business expansion. nts ati requireme that the inform re controls and anyone seeking to mo on to – d s lea ion l itat wil lim s tie activi the ica. Afr th and we have Sou Government also concedes ess in ss sin ine bu h bus t conduc ister of interference wit to inadequacy of its efforts. Min “We n deal with ed: quite enough legislatio the recently approved to are selling Finance, Pravin Gordhan not le ard op reg h pe If Wit p the red illicit activities. uire req l wil t tha Bill rged with nse need to do a lot better to dro cha Business Lice fake goods they can be at removing il courts by be licensed with civ to tape ... we’ve been too slow s the sse in ine d bus fraud and be sue sses, and of er mb Cha e Cap g liquor the lin s, constraints on small busine sel municipalitie their victims. If they are be charged. s of helping and Industry voiced its we’ve been pathetic in term can rce y me the Com without a license e more the draft law is an small businesses to becom t to be looking for well.” concerns saying as t tex The government ough con uld n wo ow t tha our re hin dynamic wit e not add to it,” tap red unnecessary new measu ways to reduce w and gro s sse ine bus p hel to g do nothin year, Gordhan said Jacobs. In his Budget Speech this create jobs. role key a y pla s ME SM t reiterated tha economy in the development of the of tors era gen ant ific and are sign ng of employment. He said financi with the SMMEs has been simplified rise Finance creation of the Small Enterp r. yea last Agency (sefa)
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