Red tape hampers small business growth
The Small Business Project revealed in 2004 that billions of rands were wasted on regulations.
JOHANNESBURG - The Small Business Project says its research has shown that more than half of small companies believe the biggest hurdle to growth is red tape.
The project revealed in 2004 that billions of rands were wasted on regulations, and it says the state is still not consulting with business owners about the impact of new laws.
Today it was joined by the South African Chamber of Commerce, as well as the Black Business and Tourism Councils which are all calling for better consultation.
Together the business forums say theres a failure to carry out adequate studies before regulatory changes are published for public comment.
Small Business Project CEO Chris Darroll says, Last year, 75 percent of our small business reported that the regulatory burden was the top most constraint on their business growth.
Darrol adds that a large number of small businesses are not well informed.
More worryingly 65 percent of these firms were unclear or unsure of the regulations.