Reward Utete

Small and medium companies (SMCs) are needed for the successful and meaningful development of the South African economy. These companies bring a significant reduction in unemployment levels. Apart from lowering unemployment levels, SMCs play a pivotal role in transforming the South African economy. However, there is a high failure rate of small and medium companies. Although the labor laws of South Africa are believed to be the major obstacle that is significantly affecting the growth of SMCs, there is no prior empirical study conducted to investigate this subject. The scourge of failure of these companies has gripped the growth of the economy. Hence, the aim of the study is to examine the perceptions of small and medium companies toward employment equity amendments in South Africa. The study uses a qualitative research method and purposive sampling to select the data. An open-ended questionnaire collected usable data from 73 employees of small and medium companies. The findings of the study revealed that the employment equity amendments were viewed as too harsh for small and medium companies. SMCs perceived that these amendments bring more harm than good. Therefore, they should engage the government to enforce amendments to the legislation that stimulate business performance rather than those that hinder it.