Small businesses: labour conditions the primary impediment to growth
Skills shortages and overly stringent labour regulations are harming the development of the SME sector in South Africa, according to the 2013 SME Growth Index, published by research specialists SBP.
15% of business owners said that a lack of skills was the greatest impediment to the growth of their firm, ahead of 12% who were overburdened by excessive regulation.
Business services firms most acutely felt skills shortages - 38% of firms felt that this was their greatest barrier to hiring more staff.
Among manufacturing firms, labour law was cited as the greatest hindrance to increasing staff numbers, accounting for 43% of responses. This finding corresponds with those of the World Economic Forum's Global Competitiveness Report for 2013, which also identifies South Africa's labour regulations as a critical concern for the country's competitiveness.