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Picture: 123RF/SOFIIASHUNKINA
Picture: 123RF/SOFIIASHUNKINA

Jabulani Sikhakhane’s column refers (“Efficient labour market key to political stability”, July 3).

In the formal political, organised labour and big business structures such as parliament and the National Economic Development and Labour Council (Nedlac), there is no understanding of the requirements of small, medium and micro enterprises (SMMEs) to start, survive and grow.

Nor do our financial institutions support these businesses due to their fixation with collateral and risk aversion, to the exclusion of everything else. We also have an extremely aggressive tax regime, which offers little incentive for SMMEs to operate at full throttle.

It is a competitive sector that is hobbled by a host of socioeconomic legislation (never mind the physical infrastructural problems besetting all SA businesses), formulated to pursue a different agenda to what is required.

An efficient labour market is a result of an efficient SMME business environment. Such enterprises currently have no formal space or power to influence any legislation to promote their requirements. Those with the political power don’t understand their needs, or if they do, they do not meet their political agenda.

We therefore have this collective “hand wringing” around unemployment and the labour market, as the real reasons for the lack of SMME business growth are not understood or addressed.

In theory and in practice it would not take long to identify the legislative restrictions. Just get a bunch of SMME owners together and in a few hours the offending restrictions and legislation will be identified. The issues are well known and documented and would not come as a surprise to anybody involved in this business sector.

In this political environment the required changes will not be well received, and nothing would change due to the conflict of interests of the politically powerful. I don’t think there is anyone in power who is brave or ethical enough to actually change what needs to change, which I’m sure is no comfort to SA’s 16-million unemployed citizens.

Ian Ferguson
via BusinessLIVE

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