Going public is the road to riches for many

THE age-old saying that you will never create much wealth by working for someone else is only partially true, if you look at the Rich List.

The top 20 list is dominated by people who have founded businesses that transformed industries and in the process created life-changing wealth for themselves and their families.

Several of them have done so in less than 20 years — and they make more money than almost everyone else combined.

But the top 100 positions and beyond show that getting in with the right company, buying a significant stake in a group at ground level, or being seconded to work some business magic in a company can result in the accumulation of more than a small fortune.

A few company names appear multiple times, which shows the power of new wealth creation through listing.

Famous Brands has created more positions in the top 100 than any other company, having made millions for the founding Halamandaris and Halamandres families in positions 32, 36, 42 and 60, as well as the nonexecutive director Hymie Levin in 95th position.

Invicta Holdings sees Christo Wiese (in first position) along with Lance Sherrell in 33rd position, Arnold Goldstone in 73rd and David Samuels in 78th.

Exxaro Resources features four times in the top 100 positions: Sipho Nkosi (24), Vincent Mntambo (34), Leonard Sowazi (59) and Rain Zihlangu (71).

Transaction Capital, a newcomer to the bourse that listed only in June last year, has four

Entrepreneurs can be significant job creators

positions in the top 100: Jonathan Jawno (54), Michael Mendelowitz (55), Roberto Rossi (56), and Shaun Zagnoev (88).

Getting a stock exchange listing is one of the best ways to make big money for en- trepreneurs who have forged a fresh path, although this is sadly not common in South Africa.

Compared with other emerging countries, South Africa still fares poorly in terms of creating new entrepreneurs.

The 2012 Global Entrepreneurship Monitor report shows that fewer adults started a business last year than in 2011, and the country’s early-stage entrepreneurial activity rate fell from 9.1% in 2011 to 7.3% last year.

This positions South Africa below the average for “efficiency-driven” economies — in which 14.3% of adults are involved in starting their own businesses.

South Africa ranks worst among its sub-Saharan African peers — Uganda, Ghana, Malawi, Nigeria, Zambia, Namibia, Ethiopia and Botswana — in terms of how young people rate their entrepreneurial capabilities.

Successful entrepreneurs not only stand to make much wealth for the senior members in their team, but they can also be significant job creators.

Shoprite, one of the country’s biggest employers, employs 112 000 people.

Old or family money is still prevalent, as demonstrated by the Ruperts of Rembrandt and Pick n Pay’s founding family, the Ackermans.

But even in these cases it is family money that was created by an older generation and built upon by their descendants.