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Micro and small enterprises and employment creation: A case study of manufacturing micro and small enterprises in South Africa

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  • Christine Bischoff
  • Geoffrey Wood

Abstract

South Africa is characterised by extremely high unemployment, at a level that has the potential to derail its future political stability. This paper explores constraints on the job creation capabilities of micro and small enterprises, specifically focusing on the consequences of existing institutional and regulatory frameworks, looking at a panel of firms within the manufacturing sector. This study revealed that most of the small firms interviewed were locked into a ‘coping mode’, and were extremely reluctant to expand, which owners ascribed to inappropriate regulation, outright regulatory failures and/or poor labour relations. At the same time, many employers openly admitted to not adhering to at least some labour regulations. At a theoretical level, it is argued that there is much more to promoting enterprise than the formal protection of owner rights. The paper concludes with an assessment of the possibilities and challenges of the practicalities of reform.

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  • Christine Bischoff & Geoffrey Wood, 2013. "Micro and small enterprises and employment creation: A case study of manufacturing micro and small enterprises in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 30(4-5), pages 564-579, December.
    • Handle: RePEc:taf:deveza:v:30:y:2013:i:4-5:p:564-579
    DOI: 10.1080/0376835X.2013.817303
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    Cited by:

    1. M. Isabel Sánchez-Hernández & Dolores Gallardo-Vázquez & Agnieszka Barcik & Piotr Dziwiński, 2016. "The Effect of the Internal Side of Social Responsibility on Firm Competitive Success in the Business Services Industry," Sustainability, MDPI, vol. 8(2), pages 1-15, February.
    2. Fuzhong Chen & Haifeng Li & Huini Wei & Wani Nelson, 2022. "The Ownership, Innovation, and Sustainable Development of Micro and Small Enterprises: Evidence of China," SAGE Open, , vol. 12(4), pages 21582440221, November.

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