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  • Great experience working with you to gain clarity of what needs changing in my business. Stephen Jordan Access to Africa - 25 August 2011, Marketing Module

Small firms harmed

While recent price-fixing articles in the local media have been about overseas companies engaged in anti-competitive behaviour, it would be pertinent once again to revisit the issue of price-fixing in this country.

While most media coverage of the Competition Commission’s battles with local cartels predictably focuses on the detrimental effect price-fixing has on the consumer, I’d like to look at the issue from the perspective of small and medium enterprises (SMEs).

In a country where at least a quarter of the economically active population is unemployed, it is sinfully unpatriotic for large corporations to be engaging in practices that prevent job-creating SMEs from participating in profitable economic activity.

Price-fixing locks out SMEs from distribution chains, keeping prices higher than they should be and employment lower than it could be. Large firms should be using their industry dominance and substantial corporate coffers to develop enterprise development programmes that include SMEs in the supply chain.

Experience elsewhere shows that sharing the pie does not shrink it but in fact increases everyone’s slices in the long term.

Let’s forgo excessive profits and an ailing SA in favour of reasonable profits and a healthy country with high employment and low crime.

Published in BusinessDay: 2011/03/14 07:12:31 AM

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  • Great experience working with you to gain clarity of what needs changing in my business. Stephen Jordan Access to Africa - 25 August 2011, Marketing Module

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