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Friday, April 06, 2007

THE RISE OF THE WORKING POOR

So it looks like, although SARS has come to the party on the issue of Small Businesses, Government Legislation hasn't. In simple terms SARS is making it easier for the "little guy" to grow and in so doing get to a point where the Small Business Owner actually may be in a position to employ a single person and thereby do his/her bit in attending to the unemployment issue. That's great news!

On the flip side however, legislation and the red tape that we all have to get through in terms of what needs to be registered and in particular the Labour Relations issue, is a huge deterrant in terms of getting us to a point where we actually employ someone to assist us.

Recent posts on the the Business Warrior site (www.businesswarriors.co.za) evidence the difficulties that Small Business Owners go through when wading through the muddy waters of staff and the requirements of the law.

The perception is that Staff and/or the employee seems to be able to get away with anything and everything, whilst the employer cannot put a toenail out of place without being hit by heavy fines and/or penalties. This places a huge burden on the sometimes already cash strapped individual. Legislation does not seem to take into account the loss of productivity due to staff members not working correctly and/or investigations on allegations of theft and fraud etc that is constantly perpetrated by the employee, not to mention the high costs of employing the services of people like Labour Attorneys and the like.

If Government want the SMME market to be the saving grace of the economy, then Government needs to "GIVE" in order to "get" and that giving must be in the form of more breaks in the Legislative requirements and the 'Red Tape' syndrome. SMME's on the other hand also have to play their part in changing their own mind sets - Red Tape requirements are not necessarily puddles of quicksand and as long as the processes and procedures are followed, although these can be time consuming, they can be accomplished with a minimum amount of fuss - even if the bother is still there.

See: The rise of the working poor : Mail & Guardian Online

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