SOUTH Africa needs to improve its policies and address barriers to
entry if more small businesses and black industrialists are to grow and
contribute to economic growth.
This is according to the University
of Johannesburg’s Centre for Competition, Regulation and Economic
Development (CCRED), which released new research on Tuesday.
"The
challenge for black industrialists is that they are getting finance but
there isn’t an environment which allows them to bring their products to
market," CCRED director Simon Roberts said.
While financing
remained a barrier to entry for many other small businesses, focusing on
this aspect alone without simultaneously tackling other barriers was
futile, Roberts said.
Barriers to entry were identified as
consumer behaviour, exclusionary conduct by incumbents, risk aversion in
financing entrants, and accessing markets and value chains.
The
centre proposed four solutions: changing regulations; amending the
Competition Act, especially the abuse of dominance by big companies;
establishing a fund for risk; and opening routes to markets
No comments:
Post a Comment