The impact of regulatory compliance on small, medium and micro-enterprises in the Buffalo City Metropolitan Municipality
- Authors: Mahlanza, Zanele
- Date: 2011
- Subjects: Small business -- Government policy -- South Africa , Small business -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:9006 , http://hdl.handle.net/10948/d1011840 , Small business -- Government policy -- South Africa , Small business -- Law and legislation -- South Africa
- Description: The small, medium and micro-enterprise sector is recognised as being favourable to socioeconomic growth since SMMEs have capacity to generate jobs. SMMEs are particularly beneficial for previously disadvantaged communities, and it is particularly clear that SMMEs play a critical role in economic development. It is therefore important to encourage growth of this sector by introducing a favourable and a conducive environment for the sustainability of the SMMEs. The purpose of this study was to investigate the impact of regulatory compliance on SMMEs in the Buffalo City municipal area in South Africa’s Eastern Cape Province. In other words, this study seeks to find out how SMMEs in the Buffalo City experience regulatory compliance. Exploratory quantitative and qualitative research methodologies were used in this study. In this instance structured questionnaires were used to collect data. In order to provide a precise presentation of information, face-to-face interviews with the SMME owners were conducted. The results of this study indicate that the regulatory environment within which the SMMEs operate is not a constraining one. Although the manual registering process is reported to take long, the electronic or online business registration is much quicker. Notwithstanding, the business registration agencies were reported not be too easily and readily available and accessible. In terms of labour regulations SMME owners and managers indicated that compliance with labour legislation in terms of health and safety was benefiting to their businesses as they learnt how to develop polices and plans. Although the regulatory environment of the SMMEs is not a constraining one, there are costs involved. For example the respondents indicated that the labour laws increased their operating costs. In accordance with labour legislation, employees are entitled to all kinds of paid leave such as annual leave, maternity leave and sometimes study leave; needless to say a right to strike. The labour law regulations were seen to be time consuming and presented an administrative burden for managers. With regards to tax regulations compliance, there was an indication that due to the extra efforts taken by SARS, it was easy to comply. The SMMEs were exposed to what is required in order to comply fully with tax laws. Some respondents mentioned that they lacked the facilities to deal with VAT issues. The study recommends that government should ensure that the registration costs of small businesses remain low and that the turnaround time for registration is shortened. The support structures which are to assist small businesses need to be mentioned in all the media for everyone to be aware of them including the rural areas. The government needs to educate SMME owners and managers on how labour laws can benefit small businesses. Also the business registration process should be streamlined and linked with the South African Revenue Services in order for a ‘one shop stop’, so to shorten the time during formalisation and registration processes. It is also recommended that the South African Revenue Services together with the government simplify the tax issues applying to SMMEs further more especially Value Added Tax which seems not to be easily understood. This will in turn assist SMME owners as they will know more about tax issues, they will also know more how to handle them which should in turn lower the costs of doing business.
- Full Text:
- Date Issued: 2011
- Authors: Mahlanza, Zanele
- Date: 2011
- Subjects: Small business -- Government policy -- South Africa , Small business -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:9006 , http://hdl.handle.net/10948/d1011840 , Small business -- Government policy -- South Africa , Small business -- Law and legislation -- South Africa
- Description: The small, medium and micro-enterprise sector is recognised as being favourable to socioeconomic growth since SMMEs have capacity to generate jobs. SMMEs are particularly beneficial for previously disadvantaged communities, and it is particularly clear that SMMEs play a critical role in economic development. It is therefore important to encourage growth of this sector by introducing a favourable and a conducive environment for the sustainability of the SMMEs. The purpose of this study was to investigate the impact of regulatory compliance on SMMEs in the Buffalo City municipal area in South Africa’s Eastern Cape Province. In other words, this study seeks to find out how SMMEs in the Buffalo City experience regulatory compliance. Exploratory quantitative and qualitative research methodologies were used in this study. In this instance structured questionnaires were used to collect data. In order to provide a precise presentation of information, face-to-face interviews with the SMME owners were conducted. The results of this study indicate that the regulatory environment within which the SMMEs operate is not a constraining one. Although the manual registering process is reported to take long, the electronic or online business registration is much quicker. Notwithstanding, the business registration agencies were reported not be too easily and readily available and accessible. In terms of labour regulations SMME owners and managers indicated that compliance with labour legislation in terms of health and safety was benefiting to their businesses as they learnt how to develop polices and plans. Although the regulatory environment of the SMMEs is not a constraining one, there are costs involved. For example the respondents indicated that the labour laws increased their operating costs. In accordance with labour legislation, employees are entitled to all kinds of paid leave such as annual leave, maternity leave and sometimes study leave; needless to say a right to strike. The labour law regulations were seen to be time consuming and presented an administrative burden for managers. With regards to tax regulations compliance, there was an indication that due to the extra efforts taken by SARS, it was easy to comply. The SMMEs were exposed to what is required in order to comply fully with tax laws. Some respondents mentioned that they lacked the facilities to deal with VAT issues. The study recommends that government should ensure that the registration costs of small businesses remain low and that the turnaround time for registration is shortened. The support structures which are to assist small businesses need to be mentioned in all the media for everyone to be aware of them including the rural areas. The government needs to educate SMME owners and managers on how labour laws can benefit small businesses. Also the business registration process should be streamlined and linked with the South African Revenue Services in order for a ‘one shop stop’, so to shorten the time during formalisation and registration processes. It is also recommended that the South African Revenue Services together with the government simplify the tax issues applying to SMMEs further more especially Value Added Tax which seems not to be easily understood. This will in turn assist SMME owners as they will know more about tax issues, they will also know more how to handle them which should in turn lower the costs of doing business.
- Full Text:
- Date Issued: 2011
Implications of current labour legislation for small, medium and micro-enterprises with regard to procuring government contracts
- Authors: Long, Hylton Ernest
- Date: 2000
- Subjects: Small business -- Law and legislation -- South Africa , Small business -- South Africa -- Management
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10836 , http://hdl.handle.net/10948/29 , Small business -- Law and legislation -- South Africa , Small business -- South Africa -- Management
- Description: The research problem addressed in this study is to determine what affect current labour legislation has on small, medium and micro-enterprises (SMME’s), in particular with regard to the procuring of Government contracts. To achieve this objective a literature study was undertaken to ascertain what knowledgeable people believed was the affects of labour legislation on SMME’s. The literature study included all relevant labour legislation promulgated by the Government since 1994 The literature study was then used to develop a questionnaire to test the degree to which SMME’s, operating in the Municipal areas of East London and King Williams Town, abided by the relevant labour legislation. The empirical results, in general, indicated a strong adherence to labour legislation. Those organisations that had not strictly adhered to labour legislation were, in most instances, not successful in securing contracts offered by Government or parastatals. The results indicated that all the role-players, namely businesses, trade unions and knowledgeable people have valid arguments both for and against labour legislation. Each group, is however, still concerned and suspicious that in one way or another, they will be placed at a disadvantage with respect to the others positions, and this places a serious strain on the South African economy.
- Full Text:
- Date Issued: 2000
- Authors: Long, Hylton Ernest
- Date: 2000
- Subjects: Small business -- Law and legislation -- South Africa , Small business -- South Africa -- Management
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10836 , http://hdl.handle.net/10948/29 , Small business -- Law and legislation -- South Africa , Small business -- South Africa -- Management
- Description: The research problem addressed in this study is to determine what affect current labour legislation has on small, medium and micro-enterprises (SMME’s), in particular with regard to the procuring of Government contracts. To achieve this objective a literature study was undertaken to ascertain what knowledgeable people believed was the affects of labour legislation on SMME’s. The literature study included all relevant labour legislation promulgated by the Government since 1994 The literature study was then used to develop a questionnaire to test the degree to which SMME’s, operating in the Municipal areas of East London and King Williams Town, abided by the relevant labour legislation. The empirical results, in general, indicated a strong adherence to labour legislation. Those organisations that had not strictly adhered to labour legislation were, in most instances, not successful in securing contracts offered by Government or parastatals. The results indicated that all the role-players, namely businesses, trade unions and knowledgeable people have valid arguments both for and against labour legislation. Each group, is however, still concerned and suspicious that in one way or another, they will be placed at a disadvantage with respect to the others positions, and this places a serious strain on the South African economy.
- Full Text:
- Date Issued: 2000
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