Chapter Eight

South African policy framework for startups

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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.
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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.

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8.1. Introduction
- South African entrepreneurs within a
regulatory context.

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8.1. Introduction (Cont.)

Figure 1.1:

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8.2. Macro-economic policy:

GEAR & ASGISA
RDP replaced by GEAR in 1996
ASGISA to supplement GEAR in
2004
Reconstruction and Development
Programme (RDP)
Growth, employment and redistribution
(GEAR)
Accelerated and Shared Growth
Initiative (ASGISA)
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8.2 Macro-economic policy:

GEAR & ASGISA (Cont.)
GEAR: limited fiscal deficit,
economic growth, neo-liberal
ASGISA: constraints & measure to
overcome these
Links to RDP?

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8.3. SMME policy

National Small Business Act (1996)
Classification & SEDA

dti initiatives
Refer students to Table 8.2

Provincial government initiatives

Assessing South Africas SMME
policy.
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8.4. Taxation policy

Income tax
VAT
Employee taxes and contributions
Tax concessions
Other forms of tax.

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8.5. Labour policy

LRA (1995)

BCEA (1997)

Freedom of
association & trade
unions affiliation
Collective bargaining
Industrial action
Dispute resolution
Dismissal
Transfer of contract

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Hours of work
Leave
Prohibition on
employment
Variation of basic
conditions of
employment
Sectoral
determinations

8.5. Labour policy (Cont.)

Occupational
Health and Safety
Act (1993)

Application
Advisory Council
Employers duties
Employees duties
Representations
Committees
Inspectors
COIDA (1997).

Unemployment
Insurance Act
(2001)
Employment
Equity Act (1998)
Skills
Development Act
(1998)

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SDLA (1999).

8.6. 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.
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8.7. Trade policy

GATT
WTO
GATS
TRIPS
Free Trade Agreement with the EU
SADC.

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8.8. Intellectual property policy

WIPO
TRIPS agreement
Intellectual copyright.

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8.8. Intellectual property policy

(Cont.)
Refer students to Table 8.7.

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8.9. 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.

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8.10. 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.
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8.11. By-laws and municipal

regulations
Attention should be paid to:
Licensing
Business zoning rights
Compliance with health regulations
Informal trading.

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Summary of main points:

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