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WP 06/113 - The Regulatory Environment and SMMEs. Evidence from South African Firm Level Data

Author: 

Neil Rankin

Date of Publication: 
September 2006

Abstract: 
The paper specifically examines: labour regulations and their relationship with employment and investment; trade regulations; permits and licences for businesses; visa regulations; the predictability of regulatory application; and the costs of regulation. It also investigates the ways firms respond to regulations. There is evidence that these regulations constrain firm growth, particularly among smaller firms. Labour regulations are not the only type of regulations that have a disproportional effect on smaller firms. Government regulation comes in many forms, such as tax regulation, labour regulation and regulations concerning the import and export of goods. This paper uses data gathered from a number of South African firm-level surveys to investigate how government regulations impact on firms. In many cases firms are asked about the perceived impact of regulations. This places regulation in context.

Download Working Paper: DPRU WP 06/113