State must pay attention to emerging, small black entrepreneurs
AFTER 21 years of democracy the majority of black-owned small, medium and micro enterprises are still regarded as emerging because of the number of challenges they face.
These include late payments, access to markets, funding, annual fees payable to regulatory bodies and insufficient support.
On the other hand service delivery protests are on the rise and frustration is reaching boiling point. The Daily Dispatch reported on June 19: “A young mother is fighting for her life after standing on an electricity cable brought down by protesters outside a hospital where she had just given birth”.
Looking at the current situation, I want to agree with Mabuti Mpafa (“Urgent strategies needed to aid black entrepreneurs” DD, June 19) there is an urgent need for strategies to aid black entrepreneurs. In fact, it is more than urgent if we want to move from emerging to emerged and successful entrepreneurs further realising the black industrialists our government seeks to create.
How do we achieve this if entrepreneurs are not provided with meaningful support?
The SMME sector is key to accelerating economic growth and reducing unemployment. This sector also has a huge number of young people. Young people are energetic and have big business ideas.
The problems start when they forward business plans to financiers only to be told to bring financially audited statements from registered accounting firms. Young people simply can’t afford this.
For some their companies are new and have never worked, all they have is a strong belief in their big business ideas.
Here is an example from the construction industry: A black young entrepreneur is awarded a construction project, but financial institutions refuse him project finance because the previous loan has not been fully serviced. The reason for this is his only source of work (the government) has not paid invoices due for over six months.
The awarded contract is terminated by the same government citing incapacity and time delays.
That young black entrepreneur is destroyed emotionally and otherwise by the same government who promised opportunities to previously disadvantaged individuals. This means young and black entrepreneurs are empowered to be destroyed.
Recently in Buffalo City Metro, Mdantsane in particular, internal streets were surfaced with tar for the first time and the Construction Industry Development Board (CIDB) grading required was way too high for entrepreneurs born here. This meant these entrepreneurs could only be employed as labour or, if they were lucky, as small sub-contractors.
BCM had an option to cluster the work to accommodate these entrepreneurs, for example, one grade 3 and four grade 1s per one to two kilometres thereby creating employers not employees.
Was BCM correct to appoint companies belonging to previously advantaged individuals with few or no PDIs as shareholders? Was BCM correct to appoint companies that already have more than three to five construction contracts with BCM or other organs of state?
Justifying this, perhaps they would mention things such as capacity issues and quick delivery periods thus further preventing any further dissatisfaction and service delivery protests. But if capacity and quick delivery interprets to financial muscle then young black entrepreneurs don’t have the capacity to undertake such or any contract.
We need government’s support organisations to give us meaningful support in the shortest possible turnaround time.
So the big question here is to empower or to deliver? Forever emerging entrepreneurs or happy, peaceful and serviced communities? Should we create fully emerged entrepreneurs who will be the future black industrialists, the ones creating sustainable jobs – or do we focus on quick service delivery coupled with unsustainable jobs? — Tamsanqa Mbambo, Mdantsane
Negative attitudes
I FOUND the article on the Charleston massacre in Saturday’s Dispatch (June 28) by Xolela Mangcu very disturbing. A university lecturer should not sow discord by pushing negative feelings, but should rather have a positive attitude.
Intelligent, hardworking students have wonderful opportunities ahead of them.
If one keeps looking back, one is sure to trip over and miss out on reaching one’s full potential in life. Always seeking vengeance is destructive to the individual as well as to a group.
Follow the example which Nelson Mandela set for the new South Africa. Throw out the unforgiving, hateful spirit and aim to be a peacemaker. Only then will our country progress.
The role of colonialists was not all negative. They developed the country, built hospitals, and educated people.
Would the writer have enjoyed living in pre-colonial times?
Has he considered how difficult it was to have African languages written and then to begin educating people from scratch – how to read, write and count?
If we have a revolution in our country now, it will be because the ANC leadership is corrupt. We are constantly learning of their bribery, corruption and fraud.
Many white people are involved in helping black people today. Let us remember that together we can do more – if we build, rather than break down. — Pat, East London
NOTE TO WRITERS