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Business asks for more BEE recognition

Feb 27 2014 16:45

(Shutterstock)

Johannesburg - A big frustration for business is the disregard for the role that it plays in terms of black economic empowerment, according to the Afrikaanse Handelsinstituut (AHi).

"Young people who are appointed, trained and exposed to the tactical inner circle of a particular business are often lured away by state entities and municipalities or they become the direct competitors through starting their own ventures to the business which moulded them," said the business organisation in a statement.

"Such real broad based empowerment evidence often gets lost due to the fixation with score sheets, race-based formulas and penalties."

The barriers which inhibit business establishment and expansion in South Africa are focused on in a new AHi campaign entitled "What it takes for Business to thrive".

The campaign takes a look at the promise of ease of doing business and job creation as set out in the National Development Plan (NDP).

There is a very strong correlation between ease of doing business in South Africa, rising unemployment and the increase in incidences of unrest and criminality, said Christo van der Rheede, CEO of the AHi.

Great concern

"Of great concern, however, is the disjuncture between what the NDP expects from business and what is currently happening in practice."

The World Bank assessed business regulations in 189 countries in terms of ease of doing business, starting a business, resolving insolvency and trading across borders.

South Africa is currently ranked 64th in terms of  starting a business, 150th due to the lengthy period of getting electricity for one’s business, 99th  for the number of days required to register a property and 110th for trading across borders.

The ease of trading accross borders is determined by the number of documents needed to export, time and cost associated with all procedures required to export and import goods and customs clearance and handling of goods at ports.

All in all South Africa is ranked 41st in terms of ease of doing business, while Singapore is rated first, Hong Kong second and Rwanda 32nd.

Research shows the regulatory burden continues to distract SMEs from their business activities and that opportunities and assistance for SMEs are lacking.

Lack of skills and labour unrest are also not conducive for business expansion and for investment.

A big frustration for business is the disregard for the role that it plays in terms of black economic empowerment, according to the Afrikaanse Handelsinstituut (AHi).

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