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Draconian Labour Laws Threaten Entrepreneurship

South Africa has reached the end of entrepreneurial development because of the government's "draconian" labour legislation, founder of Black like Me Herman Mashaba has said.

Small businesses are said to be important drivers of job creation but Herman Mashaba said South Africa had reached the end of entrepreneurial development because of the government's "draconian" labour legislation.

Mashaba, also executive chair of Lephatsi Investments, was the main speaker at the 2014 Sanlam/Business Partners Entrepreneur of the Year competition, which was launched today.

He said the minister of labour should calculate the impact of the labour laws on society because the legislation on minimum wages was infringing on the rights of South Africans.

"Small businesses are the biggest employers and they are suffering the most. As long as you have this piece of legislation in place, small businesses will not flourish," he said.

Mashaba added that poor and unskilled South Africans were not being given the opportunity to work because small business employers could not afford to pay them high wages.

Read the full article in City Press