The impact of labour laws on small firms : a study of employer perceptions of the Labour Relations Act (66 of 1995) and the Basic Conditions of Employment Act (75 of 1997) in Grahamstown, Port Alfred and Port Elizabeth
- Authors: Mfecane, Asanda
- Date: 2014 , 2014-07-10
- Subjects: Industrial relations -- South Africa -- Eastern Cape , Labor laws and legislation -- South Africa -- Eastern Cape , Industrial laws and legislation -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSocSc
- Identifier: vital:3371 , http://hdl.handle.net/10962/d1012953
- Description: This study sought to explore and explain the impact of labour laws on small firms, focusing on employer perceptions of the Labour Relations Act of 1995 and the Basic Conditions of Employment Act of 1997 in three towns of the Eastern Cape. It is important to focus on this impact of labour laws on these firms because of the high unemployment that faces the country. In this regard, it must be emphasised, firstly, that small firms are central to job creation; therefore, they contribute to a reduction in the unemployment rate; hence, the strategies created by the government to reduce any burdens (including regulatory burdens) on small firms. It is therefore important to study the impact of labour law on small businesses in order to assess the regulatory burden on small firms. The theoretical framework which underpins this study on the impact of labour law on small firms arises from the neo-corporatist critique of neo-liberalism. The two frameworks maintain the extent to which the government should intervene in the industrial relations system. Liberalism maintains that there should be a minimum role of the government, which involves only the facilitation of a framework for negotiations between employers and employees. Corporatism, however, maintains a social democratic approach, and holds that there should be an active role of the government in the industrial relations system with business, labour and the state working co-operatively (Klerck, 2009). This theoretical framework therefore shapes the extent to which employers perceive labour laws or state’s regulatory role impacts small businesses. The data was collected through the qualitative inquiry; using face-to-face, semi-structured interviews. The findings in this study included negative employer perceptions of labour laws. More specifically, many of the employers that were interviewed claimed that labour laws were burdensome on their businesses. They claimed that labour laws imposed financial and administrative costs to their firms, negatively affected the employer-employee relationships in these firms as well as the employing decisions of the employers. As a result, the employers saw labour laws as undermining flexibility and imposing unfair rigidities on small firms. Furthermore, employers perceived South African labour laws as not addressing the unique iii circumstances of small firms. They maintained that labour laws treated small firms similarly to large firms. Even though the employers held these perceptions of labour laws, it was evident that these subjective perceptions did not reflect the objective impact of labour laws on small firms. This was firstly related to the fact that many of the employers that were interviewed had negative views of labour laws but these views were not substantiated by particular events in their firms. Secondly, it was revealed that the employers’ perceptions of labour laws were based on their misconception or misunderstanding of labour law. Thirdly, it was revealed in this thesis that small firms were not affected in the same way to big firms by labour regulation. This was related to the fact that many of the small firms’ employers that were interviewed tended to be less concerned by regulation. Specifically, although many employers that were interviewed claimed that labour laws were burdensome on their firms it was evident that regulation was avoided because of the informality that characterised these firms. Consequently informality mediated the impact of labour laws on these firms, and labour laws imposed less ‘costs’ on these firms. However, it cannot be argued that small firms are isolated from the sphere of labour laws. Rather, although these firms were governed by regulation it was found that the extent to which employers complied with regulation depended on the extent to which organisational practice already reflected similarity with the legislative objective. , Acrobat PDFMaker 10.1 for Word , Adobe PDF Library 10.0
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An investigation into causes of success and failure in small businesses within the Department of Social Development in the Eastern Cape
- Authors: Petrus, Henry George
- Date: 2009
- Subjects: South Africa -- Dept. of Social Development , South Africa -- Dept. of Trade and Industry , Small business -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape -- Growth , Business enterprises -- Economic aspects -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape , Job creation -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:791 , http://hdl.handle.net/10962/d1003942
- Description: The failure rate of small business initiatives in South Africa is phenomenal, and much is needed to unravel the causes contributing to such failures. Yet small businesses are playing a vital part in our global economy and in particular in terms of job creation and poverty eradication. There are internal as well as external factors that play a significant role in determining the success of these small businesses. In South Africa much emphasis is placed by national, provincial and local governments on small and medium enterprises (SMEs) to drive wealth creation and black economic empowerment. Therefore, an investigation into the factors contributing to the success and failure of SMEs is of vital importance. The South African government’s poverty eradication strategy, which is driven by the Department of Trade and Industry (DTI), allocated funds for job creation programmes as a method to combat poverty and more importantly, to develop young entrepreneurs. Among the seven departments mandated by DTI was the Department of Social Development. Since the birth of the new democracy, this department has transformed from offering a traditional remedial method of service delivery to an integrated developmental approach. This approach included extensive community work, which includes job creation and economic empowerment through the establishment of small businesses. Given the availability of funding, the inability to spend fiscal budgets as per allocation as well as the charity element of receiving involved, it is important to explore whether factors contributing to the success of these SMEs are any different to the traditional business strategies. In this study, the researcher gave special consideration to the social capital element and its contribution in the context of community support as well as the ability of SMEs to become sustainable business ventures over time. The research study aims to highlight unique factors contributing to the success and failures of SMEs established by the Department of Social Development and in doing so hopes to manifest an improved understanding of the management of these SMEs. In chapter one, the researcher gives a brief description of the activities of the Department of Social Development and its mandate to establish SMEs for job creation. A brief explanation regarding the context of the problem that was investigated is also given. Chapter two provides a detailed theoretical overview of the study, focusing in particular on factors contributing to the success and failure of small businesses. In chapter three, the research design and the various instruments used are discussed. Here, emphasis is placed on procedural issues and ethical considerations. The validity and reliability of the research is strongly motivated. In chapter four the research results are discussed. Chapter five aims to discuss the findings of the research with reference to the theoretical overview outlined in chapter two. Lastly, chapter six makes recommendations to the various stakeholders who may benefit from this research. These recommendations are the most important objectives of the research and should add value with regards to the management of SMEs in future, with special reference to the Department of Social Development in the Eastern Cape.
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An investigation into problems facing small-to-medium sized enterprises in achieving growth in the Eastern Cape : enhancing the strategy for developing small 'growth potential' firms in the Eastern Cape
- Authors: Sha, Shafeek
- Date: 2006
- Subjects: Small business -- Management , Small business -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape -- Growth , Business enterprises -- Economic aspects -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1173 , http://hdl.handle.net/10962/d1002789 , Small business -- Management , Small business -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape -- Growth , Business enterprises -- Economic aspects -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape
- Description: As the world economy continues to move towards increased integration, some of the greatest opportunities for Small-to-Medium Sized Enterprises (SMEs) will derive from their ability to participate in the global marketplace. It is generally accepted that SMEs are becoming increasingly important in terms of employment, wealth creation, and the development of innovation. However, there are considerable doubts about the quality of management in this sector with policy-makers suggesting that there are particular weaknesses in innovation, a lack of financial acumen, marketing, entrepreneurial flair, practical knowledge, and human resource management. As a result, many firms do not reach their full potential and fail to grow. According to organisational life cycle models, the introductory phase is particularly important since it is generally known and accepted that there is a high mortality rate of SMEs within the first two years. Given this high failure rate, it becomes vital to research the factors/characteristics/management abilities that are required to enable the SME to survive and indeed progress to the growth phase of the organizational life cycle. This research seeks to investigate the internal and external factors that are consistent in the success of SMEs who have reached the growth phase. A significant contribution to the enhancement of the growth potential of a firm will be made through the understanding of these factors.
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