The impact of local economic development on economic sustainability of Buffalo City Metro Municipality
- Authors: Mahlanza, Zanele
- Date: 2013
- Subjects: Economic development , Local government -- South Africa -- East London , Sustainable development -- South Africa -- East London
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9172 , http://hdl.handle.net/10948/d1020110
- Description: The national framework of local economic development (LED) in South Africa (2006 – 2011) has the goal to support the growth of sustainable local economies through integrated government action. Municipalities as custodians of integrated development programs and local economic development strategies work with different stakeholders such as private industry, other government departments, non-government organizations and relevant community sectors in attaining envisioned developmental goals; thus are avoiding wasteful duplication of effort and resources. LED in the context of this study is defined as development of infrastructure within the BCMM for sustainability of small medium and micro enterprises in alleviating poverty in the area. This report presents an evaluation of the impact of local economic development in terms of basic infrastructure availability on the sustainability of small medium and micro enterprise development in the Buffalo City Metro Municipality (BCMM). This refers to amongst others accessibility of electricity and telecommunication in the operations of a business. The overall approach followed by the researcher throughout this research is the mixed methods or pragmatic approach. The research method followed is that one of a descriptive approach. The results of this study indicate that local economic development is still a new notion which is still unclear. There is evidence that there is a lack of basic services in some areas in the Buffalo City Metropolitan Municipal, this including access to electricity. The respondents also saw the local municipality as not doing much in support of new and small business and creating job opportunities for them. The study recommends that factors such as skills development, accessibility to basic service, development and promotion of SMMEs, are also major contributors to the effective impact of LED in BCMM.
- Full Text:
- Date Issued: 2013
- Authors: Mahlanza, Zanele
- Date: 2013
- Subjects: Economic development , Local government -- South Africa -- East London , Sustainable development -- South Africa -- East London
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9172 , http://hdl.handle.net/10948/d1020110
- Description: The national framework of local economic development (LED) in South Africa (2006 – 2011) has the goal to support the growth of sustainable local economies through integrated government action. Municipalities as custodians of integrated development programs and local economic development strategies work with different stakeholders such as private industry, other government departments, non-government organizations and relevant community sectors in attaining envisioned developmental goals; thus are avoiding wasteful duplication of effort and resources. LED in the context of this study is defined as development of infrastructure within the BCMM for sustainability of small medium and micro enterprises in alleviating poverty in the area. This report presents an evaluation of the impact of local economic development in terms of basic infrastructure availability on the sustainability of small medium and micro enterprise development in the Buffalo City Metro Municipality (BCMM). This refers to amongst others accessibility of electricity and telecommunication in the operations of a business. The overall approach followed by the researcher throughout this research is the mixed methods or pragmatic approach. The research method followed is that one of a descriptive approach. The results of this study indicate that local economic development is still a new notion which is still unclear. There is evidence that there is a lack of basic services in some areas in the Buffalo City Metropolitan Municipal, this including access to electricity. The respondents also saw the local municipality as not doing much in support of new and small business and creating job opportunities for them. The study recommends that factors such as skills development, accessibility to basic service, development and promotion of SMMEs, are also major contributors to the effective impact of LED in BCMM.
- Full Text:
- Date Issued: 2013
The impact of regulatory compliance on small, medium and micro-enterprises in the Buffalo City Metropolitan Municipality
- Authors: Mahlanza, Zanele
- Date: 2011
- Subjects: Small business -- Government policy -- South Africa , Small business -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:9006 , http://hdl.handle.net/10948/d1011840 , Small business -- Government policy -- South Africa , Small business -- Law and legislation -- South Africa
- Description: The small, medium and micro-enterprise sector is recognised as being favourable to socioeconomic growth since SMMEs have capacity to generate jobs. SMMEs are particularly beneficial for previously disadvantaged communities, and it is particularly clear that SMMEs play a critical role in economic development. It is therefore important to encourage growth of this sector by introducing a favourable and a conducive environment for the sustainability of the SMMEs. The purpose of this study was to investigate the impact of regulatory compliance on SMMEs in the Buffalo City municipal area in South Africa’s Eastern Cape Province. In other words, this study seeks to find out how SMMEs in the Buffalo City experience regulatory compliance. Exploratory quantitative and qualitative research methodologies were used in this study. In this instance structured questionnaires were used to collect data. In order to provide a precise presentation of information, face-to-face interviews with the SMME owners were conducted. The results of this study indicate that the regulatory environment within which the SMMEs operate is not a constraining one. Although the manual registering process is reported to take long, the electronic or online business registration is much quicker. Notwithstanding, the business registration agencies were reported not be too easily and readily available and accessible. In terms of labour regulations SMME owners and managers indicated that compliance with labour legislation in terms of health and safety was benefiting to their businesses as they learnt how to develop polices and plans. Although the regulatory environment of the SMMEs is not a constraining one, there are costs involved. For example the respondents indicated that the labour laws increased their operating costs. In accordance with labour legislation, employees are entitled to all kinds of paid leave such as annual leave, maternity leave and sometimes study leave; needless to say a right to strike. The labour law regulations were seen to be time consuming and presented an administrative burden for managers. With regards to tax regulations compliance, there was an indication that due to the extra efforts taken by SARS, it was easy to comply. The SMMEs were exposed to what is required in order to comply fully with tax laws. Some respondents mentioned that they lacked the facilities to deal with VAT issues. The study recommends that government should ensure that the registration costs of small businesses remain low and that the turnaround time for registration is shortened. The support structures which are to assist small businesses need to be mentioned in all the media for everyone to be aware of them including the rural areas. The government needs to educate SMME owners and managers on how labour laws can benefit small businesses. Also the business registration process should be streamlined and linked with the South African Revenue Services in order for a ‘one shop stop’, so to shorten the time during formalisation and registration processes. It is also recommended that the South African Revenue Services together with the government simplify the tax issues applying to SMMEs further more especially Value Added Tax which seems not to be easily understood. This will in turn assist SMME owners as they will know more about tax issues, they will also know more how to handle them which should in turn lower the costs of doing business.
- Full Text:
- Date Issued: 2011
- Authors: Mahlanza, Zanele
- Date: 2011
- Subjects: Small business -- Government policy -- South Africa , Small business -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:9006 , http://hdl.handle.net/10948/d1011840 , Small business -- Government policy -- South Africa , Small business -- Law and legislation -- South Africa
- Description: The small, medium and micro-enterprise sector is recognised as being favourable to socioeconomic growth since SMMEs have capacity to generate jobs. SMMEs are particularly beneficial for previously disadvantaged communities, and it is particularly clear that SMMEs play a critical role in economic development. It is therefore important to encourage growth of this sector by introducing a favourable and a conducive environment for the sustainability of the SMMEs. The purpose of this study was to investigate the impact of regulatory compliance on SMMEs in the Buffalo City municipal area in South Africa’s Eastern Cape Province. In other words, this study seeks to find out how SMMEs in the Buffalo City experience regulatory compliance. Exploratory quantitative and qualitative research methodologies were used in this study. In this instance structured questionnaires were used to collect data. In order to provide a precise presentation of information, face-to-face interviews with the SMME owners were conducted. The results of this study indicate that the regulatory environment within which the SMMEs operate is not a constraining one. Although the manual registering process is reported to take long, the electronic or online business registration is much quicker. Notwithstanding, the business registration agencies were reported not be too easily and readily available and accessible. In terms of labour regulations SMME owners and managers indicated that compliance with labour legislation in terms of health and safety was benefiting to their businesses as they learnt how to develop polices and plans. Although the regulatory environment of the SMMEs is not a constraining one, there are costs involved. For example the respondents indicated that the labour laws increased their operating costs. In accordance with labour legislation, employees are entitled to all kinds of paid leave such as annual leave, maternity leave and sometimes study leave; needless to say a right to strike. The labour law regulations were seen to be time consuming and presented an administrative burden for managers. With regards to tax regulations compliance, there was an indication that due to the extra efforts taken by SARS, it was easy to comply. The SMMEs were exposed to what is required in order to comply fully with tax laws. Some respondents mentioned that they lacked the facilities to deal with VAT issues. The study recommends that government should ensure that the registration costs of small businesses remain low and that the turnaround time for registration is shortened. The support structures which are to assist small businesses need to be mentioned in all the media for everyone to be aware of them including the rural areas. The government needs to educate SMME owners and managers on how labour laws can benefit small businesses. Also the business registration process should be streamlined and linked with the South African Revenue Services in order for a ‘one shop stop’, so to shorten the time during formalisation and registration processes. It is also recommended that the South African Revenue Services together with the government simplify the tax issues applying to SMMEs further more especially Value Added Tax which seems not to be easily understood. This will in turn assist SMME owners as they will know more about tax issues, they will also know more how to handle them which should in turn lower the costs of doing business.
- Full Text:
- Date Issued: 2011
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