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Chapter Eight

South African policy framework for startups

© Oxford University Press Southern Africa, 2008. All rights reserved.

All rights reserved. 2008. . © Oxford University Press Southern Africa.Theoretical learning outcomes: • Demonstrate a sound understanding of the policy framework pertaining to South African entrepreneurs • Be critically aware of the impact of the various elements of the framework on South African entrepreneurs and their businesses.

All rights reserved.Practical outcomes: • Interpret case studies based on a knowledge of the policy framework for entrepreneurs • Investigate the perceptual impact of policies on entrepreneurs in South Africa. © Oxford University Press Southern Africa. . 2008.

. © Oxford University Press Southern Africa. All rights reserved.1.8. 2008.South African entrepreneurs within a regulatory context. Introduction .

2008.) • Figure 1.8. Introduction (Cont.1: © Oxford University Press Southern Africa.1. All rights reserved. .

employment and redistribution (GEAR) – Accelerated and Shared Growth Initiative (ASGISA) © Oxford University Press Southern Africa. Macro-economic policy: GEAR & ASGISA • RDP replaced by GEAR in 1996 • ASGISA to supplement GEAR in 2004 – Reconstruction and Development Programme (RDP) – Growth. .8. 2008.2. All rights reserved.

neo-liberal • ASGISA: constraints & measure to overcome these • Links to RDP? © Oxford University Press Southern Africa. economic growth. .2 Macro-economic policy: GEAR & ASGISA (Cont.) • GEAR: limited fiscal deficit.8. All rights reserved. 2008.

3. .2 • Provincial government initiatives • Assessing South Africa’s SMME policy.8. 2008. All rights reserved. SMME policy • National Small Business Act (1996) – Classification & SEDA • dti initiatives – Refer students to Table 8. © Oxford University Press Southern Africa.

4. © Oxford University Press Southern Africa. . All rights reserved. 2008. Taxation policy • • • • • Income tax VAT Employee taxes and contributions Tax concessions Other forms of tax.8.

8. – Hours of work – Leave – Prohibition on employment – Variation of basic conditions of employment – Sectoral determinations . Labour policy • LRA (1995) • BCEA (1997) – Freedom of association & trade unions affiliation – Collective bargaining – Industrial action – Dispute resolution – Dismissal – Transfer of contract © Oxford University Press Southern Africa. 2008. All rights reserved.5.

All rights reserved. 2008.5. . – SDLA (1999). Labour policy (Cont.) • Occupational Health and Safety Act (1993) • • • • • • • • Application Advisory Council Employer’s duties Employee’s duties Representations Committees Inspectors COIDA (1997).8. • Unemployment Insurance Act (2001) • Employment Equity Act (1998) • Skills Development Act (1998) © Oxford University Press Southern Africa.

Competition policy • Competition Act (1999) • Prohibition on restrictive horizontal practices • Prohibition on restrictive vertical practices • Prohibition on the abuse of a dominant position • Regulation of mergers • Competition Commission. © Oxford University Press Southern Africa.6.8. All rights reserved. 2008. .

Trade policy • • • • • • GATT WTO GATS TRIPS Free Trade Agreement with the EU SADC.8. 2008.7. © Oxford University Press Southern Africa. . All rights reserved.

8. © Oxford University Press Southern Africa. 2008. All rights reserved.8. . Intellectual property policy • WIPO • TRIPS agreement • Intellectual copyright.

2008. All rights reserved.7.) • Refer students to Table 8. © Oxford University Press Southern Africa. . Intellectual property policy (Cont.8.8.

Black Economic Empowerment Policy • • • • • • • • Empowerment Transformation Strategy for the advancement of BBBEE BBBEE codes To whom do the codes apply? How do the codes work? How do the codes apply to small enterprise? Industry charters. 2008. . © Oxford University Press Southern Africa.8. All rights reserved.9.

National Credit Act • NCA (2005) • Regulates the provision of credit • Implications for entrepreneurs: – All entrepreneurs are subject to the Act – The provision of credit is more complex than the use of credit by the entrepreneur – The former requires entrepreneurs to grant credit – Consumer rights are protected. . All rights reserved.10.8. 2008. © Oxford University Press Southern Africa.

By-laws and municipal regulations • Attention should be paid to: – Licensing – Business zoning rights – Compliance with health regulations – Informal trading.8. All rights reserved.11. . 2008. © Oxford University Press Southern Africa.

Summary of main points: © Oxford University Press Southern Africa. All rights reserved. 2008. .