6 minute read
BUsInEss
from Spotong Issue 5
by 3S Media
Over-regulation is one of the obstacles for small businesses to thrive and grow, and there’s a prospect for more control, interference and restrictions on business activities if the imminent Business License Bill is promulgated, writes Donald Makhafola.
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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 .
The Diagnostic Overview, produced as a prelude to the National Development Plan (NDP) by the National Planning Commission (NPC) headed by Minister in the Presidency, Trevor Manuel, has identified small businesses as the main drivers for job creation and economic development. In its vision 2030, the NPC reported that a large percentage of the jobs will be created in domestic-oriented activities and in the services sector. “Some 90% of jobs will be created in small and expanding firms. The economy will be more enabling of business entry and expansion with an eye to credit and market access,” read the report. However, the NDP calls for a regulatory reform and support to boost mass entrepreneurship in South Africa. The regulatory burden is clearly a concern for South African businesses. According to the first round of the SME Growth Index 2012, produced by the Small Business Project (SBP), a section 21 company, 19% of respondents identified regulation as the key obstacle to business expansion. Government also concedes the inadequacy of its efforts. Minister of Finance, Pravin Gordhan noted: “We need to do a lot better to drop the red tape ... we’ve been too slow at removing constraints on small businesses, and we’ve been pathetic in terms of helping small businesses to become more dynamic within our own context as well.” In his Budget Speech this year, Gordhan reiterated that SMMEs play a key role in the development of the economy and are significant generators of employment. He said financing of SMMEs has been simplified with the creation of the Small Enterprise Finance Agency (sefa) last year. In addition, Gordhan said the government has been “progressively” working to simplify the tax requirements for small business, and the turnover threshold will be increased this year and the graduated rate structure will be revised. More recently, a proposed set of amendments to the Labour Relations Act and Basic Conditions of Employment Act have signalled a further significant burden on businesses. In its 2012 SME Index Report, SBP says government’s aims are quite laudable, principally to simplify the establishment of businesses. But in practice, it would impose potentially onerous requirements and by implication limitations – on anyone seeking to conduct business in South Africa. With regard to the recently approved Business License Bill that will require businesses to be licensed with municipalities, the Cape Chamber of Commerce and Industry voiced its concerns saying the draft law is an unnecessary new measure that would do nothing to help businesses grow and create jobs. “All it will do is to create more red tape and add another cost for people who want to start new businesses,” said Fred Jacobs, president of the Cape Chamber of Commerce in a statement. He said the current system, which was introduced in 1991, had greatly simplified the business licensing process, restricting it to businesses where health and safety issues were involved and there was little reason to scrap it as proposed by the legislation. “The only reasons given for the Bill were that it would help the authorities deal with unspecified illicit practices and that it would give the government an idea of what business activities are taking place across the country in all the municipalities. This would be achieved as a matter of course if CIPC [Companies and Intellectual Property Commission] was working efficiently. “It is difficult to avoid the impression that the information on business activities will lead to more controls and interference with business and we have quite enough legislation to deal with illicit activities. If people are selling fake goods they can be charged with fraud and be sued in the civil courts by their victims. If they are selling liquor without a license they can be charged. The government ought to be looking for ways to reduce red tape not add to it,” said Jacobs.
More than 950 000 tons of used metal cans have been recovered in Southern Africa since Collect-a-Can’s inception in 1993, saving a huge amount of landfill space and improving the environment. Metal can recycling company, Collecta-Can is a recovery, as opposed to a profit driven, company and has proven that it is self-sustainable by managing its operations and cost structures at optimum levels for the past 20 years. Collect-a-Can’s shareholders, Arcelor Mittal South Africa and Nampak, established the company to proactively address the steel beverage can industry’s share of responsibility pertaining to the environmental needs of the region, subsequently recovering all scrap tinplate generated in the tinplate and can-making processes, including sludge, cut-offs, misprints, substandard fills, and most importantly used metal cans. Over the past 20 years, Southern Africa’s used can recovery rate has improved from 18% to 72%, putting South Africa on track to reach the United Nations’ target of 75% by 2015. “Our aim for the next 20 years is to reach 100% recovery”, says Public Relations and Marketing Manager of Collect-a-Can, Zimasa Velaphi, “This is definitely achievable, with countries like Brazil already reaching recovery rates of of recycling and protecting the environment by not littering. Nearly 250 000 children in schools throughout Gauteng, KwaZulu-Natal, Western Cape and the North West Province participate in the schools competitions annually. “Collect-a-Can is passionate about the education of our youth. We recognise that when individuals are educated and informed about the importance of preserving their environment, they become more environmentally responsible citizens. “Prizes are awarded to the schools that collect the most cans per month as well as the most cans per year. There is also a category awarding the most cans collected per learner, giving smaller schools an equal opportunity to stand a chance of winning prizes for their schools. “Another school competition that we run annually is the CAN Craze Competition, which encourages learners to build creative structures out of 300 or more used cans”, says Velaphi. Collect-a-Can has exciting initiatives planned for 2013, such as the 20 Drop Corporate CAN Drive that encourages corporates to get involved in can recovery by donating their collection to schools or charities of their choice. The Collect-a-Can 20 TINS game, Collect-aCan’s take on the indigenous children’s ‘3-tin-game’ and 20km community fun runs where participants are encouraged to bring cans for recycling. Recovery and recycling facilitates job creation in many communities, therefore Collect-a-Can’s ‘Cash for cans’ initiative encourages cans to be collected and sold to Collect-a-Can for recycling. There are currently 100 000 entrepreneurs, in turn employing some 160 000 informal collectors earning a living or supplementing their income by collecting cans, with more than R20 million paid to informal collectors annually. The CAN Craze Competition teaches learners that what may seem like trash, can be a valuable resource that can be re-used in their artwork and then recycled, prolonging the lifespan of the raw materials and preserving natural resources as well as energy. Collect-a-Can encourages all South Africans to join Collect-a-Can in celebrating its 20th anniversary by getting involved with their recycling initiatives and community drives for the next 20 years to come. To find out more about how you can get involved visit Collect-a-Can’s website www.collectacan.co.za or contact the Collect-a-Can head office on 011 466 2939. 98.3% in 2011.”
With an understanding of the recycling industry and a commitment to actively work within communities to support recycling initiatives and nurture a commitment to socio economic empowerment, Collect-a-Can focuses on a number of key national priorities and is a prominent figure in uplifting the community through art, education and entrepreneurial initiatives. Collect-a-Can also has an extensive environmental programme and exciting schools competitions that run annually to create enthusiasm among the youth and create awareness of the importance
