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It is obviously necessary to regulate the business sector but one must be very careful not to overregulate, which would in turn stifle entrepreneurship.
Unfortunately, in SA, we tend to overregulate and certainly have almost destroyed the ability of the informal sector to become eventually part of the formal sector.
Over and above this, regulations are good if they can properly be overseen. We don’t have the ability to do this as yet. We have about 2,000 inspectors in SA and hundreds and thousands of small businesses. In addition, the informal sector is invariably impossible to properly assess. It becomes a nightmare to find out who owns the business, who is employed by the business and where it is trading. Many of the informal retail shops can pop up and close down within hours.
Our inspectors find it a lot easier, safer and more productive to rather look at formal business. The bigger the business, the easier it is to inspect. There needs to be a new way of assessing the oversight ability.
Michael Bagraim DA MP and employment & labour spokesperson
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Don’t overregulate informal sector
The sector is impossible to properly assess
Your article, “Informal business sector needs to be regulated and soon” (October 30) refers.
It is obviously necessary to regulate the business sector but one must be very careful not to overregulate, which would in turn stifle entrepreneurship.
Unfortunately, in SA, we tend to overregulate and certainly have almost destroyed the ability of the informal sector to become eventually part of the formal sector.
Over and above this, regulations are good if they can properly be overseen. We don’t have the ability to do this as yet. We have about 2,000 inspectors in SA and hundreds and thousands of small businesses. In addition, the informal sector is invariably impossible to properly assess. It becomes a nightmare to find out who owns the business, who is employed by the business and where it is trading. Many of the informal retail shops can pop up and close down within hours.
Our inspectors find it a lot easier, safer and more productive to rather look at formal business. The bigger the business, the easier it is to inspect. There needs to be a new way of assessing the oversight ability.
Michael Bagraim
DA MP and employment & labour spokesperson
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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