Johannesburg, 08 Oct 2015
A new study published by IQ Business, finds that South African businesses are positive about their own ability to grow the economy despite political and economic conditions in the country.
Key finding:
* Poll: 42% of South African businesses believe businesses themselves can play a much greater role in driving economic growth.
The respondents to the study included CEOs and Managing Directors of large business as well as a survey with small and medium sized enterprises.
President Jacob Zuma recently declared that while South Africa's economy was struggling to recover from the 2008 global financial crisis, it was wrong to assume that everything was "doom and gloom". Conversely, some commentators have severely criticised government policy decisions, corruption and service delivery as key reasons for undermining South Africa's economic growth.
IQ Business was intrigued to get beyond the political posturing, to properly understand what South African businesses and business leaders felt about generating economic growth. And, importantly, what the respective responsibilities of business and the government would be to achieve that growth.
Forty percent of respondents maintained that businesses themselves could only contribute towards generating growth if certain things like specific legislation changes first.
A notable 42% were adamant that businesses could play a much greater role in driving economic growth - irrespective of the prevailing economic and political conditions.
These positive sentiments, however, did not blind them to the very real problems and challenges we face: skills shortages and labour law constraints were cited most often as factors that limit growth.
Five specific actions emerged from the research for both government and business to deliver on in order to achieve economic growth:
1. Implementation of the National Development Plan:
Government must be held accountable for implementation of the NDP and Business must accept that it requires their commitment and input.
2. Accelerate enterprise development:
Government must set up processes that identify and systematically remove red tape that impedes growth. While business invest in SMEs, procure from them and mentor them.
3. Customer-centred innovation:
Government must incentivise innovators with tax breaks while also providing support and protection for new intellectual property. This must be complemented by a new open mindset by business towards innovations.
4. Commercialise state-owned enterprises:
This requires government acknowledgement that Business is better at the commercial aspects of any undertaking and that these skills and services can be leveraged to deliver government's services better and more cost effectively.
Business, in turn, must be available to work as a strategic partner with government - and to actively transfer knowledge and skills.
5. Declare a state of emergency in education:
Government needs improve education, prioritise literacy and numeracy is and actively attract non-South African skilled talent into the country.
Business must go upstream and contribute towards ensuring better outcomes such as supporting school-to-work transition and a commitment to high-quality work-based learning.
These five actions require a new partnership between business and government with a shared imperative to drive growth. Each of the actions is explored further in this report. To download the report visit: www.growth.co.za
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