The Compensation For Occupational Injuries And Diseases Business Essay
There are too many rules and regulations currently restricting the growth of new businesses, which either makes it more difficult to start a business or constrains entrepreneurs who have managed to do so.
South African labour laws are far too rigid. The labour laws do not favour a meritocracy, where those who add more value are recognised. Instead, the laws have created an administratively intensive process, which costs time and money when dealing with problem employees. As a result, the law tends to entrench those who are employed and does not favour the creation of new jobs
For a services-based business in particular, such as a retailer or food operator, where staffing costs result in high initial overheads, it is important to provide appropriate incentives, as these businesses have the potential to add real value to the local economy through the creation of new jobs.
Entrepreneurs have to deal with multiple tax structures including VAT, PAYE, SDL, UIF, income tax and workmen’s compensation. These are all important but it can be hugely cumbersome and complex for a new business. A simplified tax regime for SMEs or for start-ups would help to nurture a business in the first few years of its existence.
Tackling unemployment is arguably South Africa’s most important priority, while realising that the country will only attract in investment in labour-absorptive sectors if it is competitive in terms of labour unit costs. Government has committed it to an employment strategy framework, while at same time challenging business and labour to participate. There is a need for capable individuals who are prepared to accept the brunt of risk, to assist in job creation and assist in positive growth of the economy.
Entrepreneurship is the total solution that can use opportunities that increase the GEM rating. It places no risk on government or the employee, while having the ability to assist in in the creation of jobs and with the alleviation of poverty.Entrepreneurship needs to be positively influenced and encouraged so as to fill the void emanating from high unemployment, and help the country further.
Potential entreprenuers find themselves lost in the maze of legalities and tax laws, coupled with the unavailabibility of capital and heavy taxes on positive returns, creating a barrier to entry for the entrepreneurs .Labour is a very real necessity in the need for progress and actual implementation of opportunities the essence of labour laws is to ensure no exploitation of workers , create fair working conditions and reward for the worker.
South Africa has a very turbulent labour history. The characteristics of the labour market are the commitment to the social contract; removal of obstacles in the way of international trade and production ; reduction in unemployment. There are three players in the labour market, being employers, employees and government, who all have to contribute their shares before successful production can take place.
Applicable labour laws that are in question are:
The Labour Relations Act, No. 12 of 2002 as amended
Basic Conditions of Employment act, No.11 of 2002 as amended.
The Compensation for Occupational Injuries and Diseases Act, No.130 of 1993
Unemployment Insurance Act No.63 of 2001 as amended
The Compensation for Occupational Injuries and Diseases Act, No.130 of 1993
The Employment Equity Act No.55 of 1998
Skills Development and Skills Levies Act No.85 of 1996
Protected Disclosures Act No.26 of 2000
It is accepted that every society and therefore every organisation needs to be regulated, yet, the person who is prepared to bear the brunt of risk needs to enjoy the benefit theof.
Special provision needs to be made for the growing enterprise, while creating opportunities for improving the workforce, allowing the industry to dictate its needs and requirements. The absolute divide between capital and labour needs to remain, while flexibility within the system is necessary.
In conclusion, flexibility within the system of labour law, making provision for special needs of small, entrepreneurial businesses is what is really necessary. Labour legislation that will make all responsibility of seizing a business opportunity worthwhile – no stringent, inflexible, confusing legislation, but user-friendly, easy to understand procedures, providing for the unique needs of small enterprise will provide the path for creation of opportunities, growth and financial viability of the potential enterprises and thereby improve the GEM rating.
2.2 Making this happen takes people with drive, motivation and acceptance of risk, who have vision and determination to succeed; this is realizable by the enhancement of opportunities for entrepreneurship within the country, i.e. by removing barriers to the entry into an industry for the person who is prepared to be responsible for initiating, developing and controlling business opportunity, while combining the other factors of production, supplying products and services to the market, at the same time bearing the brunt and responsibility of risk and uncertainty. Naturally, such a person is not capable of doing this all by himself, but needs to take cognisance of other players too – i.e. there will be legislation (or the role of Government) to contend with, the role of employees and with that the obvious role of the employer to be fulfilled, and honoured.
Furthermore, no venture is capable of implementation without capital funding. This is normally the go-no-go situation. Unfortunately, here, in our country, finding such capital is mostly up to an individual who want to implement a viable business opportunity. Should this stumbling block be overcome, the next step is to deal effectively with the legislation that governs, of necessity, the employer/employee relationship.
Government is not unaware of the situations mentioned above, and is desirous of creating an environment which is susceptible to economic growth, job creation and alleviation of poverty while also attempting to assist in identifying the needs, problems and opportunities for job creation. As, politically, this is a democracy, the entire burden may not be placed at Government’s doorstep; yet assistance, cutting the red tape making it easier to create job opportunities for individuals who are prepared to take risk, would assist in turning the tables and empowering the individuals to create more job opportunities.
Mechanisation is able to curtail the need for labour, yet not to alleviate it totally. Therefore any industry is reliant, of necessity, to employ labour, and accordingly to live with the legal requirements therefore.
2.3 If we are to create jobs, the policy framework is to take the special cognisance of the needs of new and small enterprises. Small businesses have special needs, and in particular, flexibility in the operation of their businesses to ensure survival. Small businesses depend heavily on the productivity of their workers, and are therefore hardest hit by rigidities in labour market.
Locally, these concerns particularly refer to emerging Black businesses, and the ability to spread the benefits of wealth creation more equitably. This also refers to the informal sector, which, despite negative comment, provides a livelihood to millions of people, and is a breeding ground for small, medium and large-scale enterprises.
Therefore, it is important to encourage an entrepreneurial culture, which is capable of cutting across all the segments of business.
2.4 To create a healthy economy, every potential entrepreneur who has a viable idea, must be given every opportunity and then all possible assistance to turn this entrepreneurial idea into an economically viable proposition – not only for personal gain, and to ensure continued interest and progress, but also for prospective participants in the venture – all of which in the longterm benefit the country’s economy as the whole –by way of salaries, taxes, utilisation of resources, imports or exports.
We need to bear in mind that only voluntary labour offers an alternative to the rule of capital which is capable of meeting the needs of the entire global community, and doing so in a way which actually transcends what capital is able to achieve, consequently offering the possibility of going beyond the stage of managing capital by means of regulation or state repression to a world of genuinely free and voluntary association.
2.5 The entrepreneurship process is a complex endeavour that is affected by many factors including the prevailing attitudes within a society, the rate of activity and the kind of opportunities available, and the growth aspirations of entrepreneurs.
The entrepreneurship process is a complex endeavour carried out by people living in specific cultural and social conditions. For this reason, the positive or negative perceptions that society has about entrepreneurship can strongly influence the motivations of people to enter entrepreneurship. Societies benefit from people who are able to recognise valuable business opportunities and who perceive they have the required skills to exploit them.
If the economy in general has a positive attitude towards entrepreneurship, this can generate cultural and social support, financial and business assistance, and networking benefits that will encourage and facilitate potential and existing entrepreneurs.
The first step in the entrepreneurship process occurs when people perceive favourable business opportunities in their area. These individuals may or may not have considered becoming an entrepreneur before identifying an opportunity. People may also be encouraged by the belief they have the necessary capabilities to successfully start a venture. Yet even if they perceive pportunities and believe they have the skills necessary for entrepreneurship, fear of failure may prevent them from actually starting a business.
Awareness about good opportunities for starting a
business in one’s area
Belief in one’s skills and experience to start a business
Attitude towards failure
Whether starting a business is considered a good career choice
Opinion about the association of entrepreneurship with high status
Awareness of positive media attention for entrepreneurship
Risk-taking can pose considerable challenges for potential entrepreneurs. Universities and business schools around the world can generally teach the basics of entrepreneurship, boosting peoples’ abilities to perceive opportunities and their skills for starting businesses. A keystumbling block, however, is one’s inherent fear of failure. This can counteract the drive to start a business, even when the expected returns from entrepreneurship have better prospects than the next best alternative. People may have differing levels of fear of failure and conditions in the institutional environment, such as bankruptcy legislation, which could deter would-be entrepreneurs. The level of fear of failure, in general, increases as one move from early-stage to advanced development levels.
The next stage in the entrepreneurship process takes place when a potential entrepreneur expresses the intention to start a new business in the foreseeable future.
It is important to recognise that, even though individuals have favourable perceptions with respect to business opportunities, they may not have the intentions to start a business.
The rate of business discontinuance generally declines as economic development increases. There are a number of reasons for discontinuing a business; the most prevalent relate to problems obtaining financing and the business not being profitable.