Pestle Analysis Coffee Shops in South Africa

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PESTLE ANALYSIS: Political/ LEGAL: Small business development in South Africa is an important vehicle to address the challenges of job creation, and generating sustainable and equitable growth. The South African government believes that the real engine of sustainable and equitable growth in SA is the private sector. Trevor Manuel’s quotation in the Foreword of the White Paper on Small business development, “We are committed to doing all we can to help create an environment in which businesses can get on the with their job. We believe in the principle of working together with our partners in the private sector – big and small businesses – in realizing our hopes and aspirations for this economy.” (Manuel 1995). After 1994, the South African government had restructured ministries within the Economic cluster prioritizing on the National Youth policy and the second economy and continues to do so in the current situation, an example of this is the revised BBBEE policies and Industrial policy action plan (IPAP). (IPAP 2011) In the Strategic business plan (SBP) occasional paper, the statistics show that 45% of all employed people in South Africa work in firms with less than 10 employees. It is clear that the South African government had identified the need to change legislation and restructure government departments to meet the needs of the Small business sector. The government also acknowledges that small businesses help to drive economic growth, create employment and are sources of innovation and new ideas. However it is imperative for government to create conducive environments for the success of small business development. And this can be deduced by the sound legislative framework Small Business Act, the establishment of Small Enterprise Development Agencies (SEDA) to support small businesses, through marketing, access to finance, market access and business
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