Twenty-one years into democracy and the majority of black South Africans continue to be confronted by high levels of poverty, crime and the pandemic of unemployment.
The fact is black people continue to be disproportionately affected by socio-economic ills.
The country has developed into one of the most unequal societies in the world. Frustration is reaching boiling point. The country is sitting on a ticking time bomb that is likely to explode one day, with very violent outcomes.
Although black people are increasingly present in the economy through state- driven economic empowerment programmes, the question is whether our presence is sufficiently meaningful?
Do black people have control of the economy?
Judging from the level of joblessness and inequality, the Black Management Forum of the Eastern Cape says the answer is a big NO. There is still a lot to be done.
For starters, the progress of socio-economic transformation must be evaluated and imbalances must be addressed.
Both economic and social transformation has been a central goal for the democratic regime, but broad empowerment of the majority of black South Africans has yet to take place.
The small, medium and micro enterprise (SMME) sector has been recognised as central to accelerating economic growth, reducing unemployment and bridging the gap between the first and second economies.
But I am of the view the state should do more to create an environment that promotes entrepreneurship and small business.
Although government has created multiple support organisations such the Small Enterprise Development Agency, the National Youth Development Agency, the Small Enterprise Finance Agency and the ministry dedicated to create a vibrant small business sector, I do not think enough has been done to create a platform that supports black-owned start-ups, provides access to business linkages and thereby promotes an entrepreneurship culture.
Too many small businesses are destroyed by a lack of access to markets (business linkages), the failure by government to pay on time or to procure more services from black-owned businesses.
Furthermore, empowerment in the form of mentorship is essential to any business owner and as such should be a requisite.
The SMMEs should be provided with meaningful support and provided with mentorship that will take them to another level.
By doing this, the economy will provide many economic opportunities, particularly the state supporting and empowering black-owned enterprises.
Given that SMME growth can result in increased employment, skills development is essential to address socio- economic transformation.
We need to ensure skills development programmes continue to produce scarce skills.
This is in line with the government’s strategy towards creating black industrialists to create jobs and growing an entrepreneurship culture.
Finally, corporate social investment (CSI) initiatives should be encouraged to provide support and opportunities to disadvantaged communities and individuals who are not usually the beneficiaries of developments in the formal economy.
Once all these items have been addressed, I strongly believed the rate of our socio-economic transformation will improve for the better.
It is clear we have come a long way in transforming the South African economy. But the state, working with the private sector, has an obligation to make sure the battle for economic freedom is realised through various pieces of legislation and policies such as Broad-Based Black Economic Empowerment, affirmative action, employment equity and much more.
Any investment that may come to the country will mean nothing if the working poor and unemployed do not benefit.
The challenge is to give people the opportunity to be actors in the economic value chain.
The first challenge is for everyone to be involved in some form of employment while improving their access to skills development programmes, to education and to finance for start-up businesses.
By achieving this, more people will be empowered to be creators of employment opportunities through entrepreneurship. These may be through small or even micro-businesses.
Mabuti Mpafa is deputy chair of the Black Management Forum in the Eastern Cape
Join the BMF Eastern Cape debate on “the state of socio-economic transformation within a context of sustainable development” at 8.30am today at the Regent Hotel, East London. Panelists will include Koko Khumalo, BMF deputy president, as a keynote speaker, Xola Phakathi, deputy mayor Buffalo City Metro, and Andrew Murray, executive director of the Eastern Cape Socio-economic Consultative Council
Urgent strategies needed to aid black entrepreneurs
The fact is black people continue to be disproportionately affected by socio-economic ills.
The country has developed into one of the most unequal societies in the world. Frustration is reaching boiling point. The country is sitting on a ticking time bomb that is likely to explode one day, with very violent outcomes.
Although black people are increasingly present in the economy through state- driven economic empowerment programmes, the question is whether our presence is sufficiently meaningful?
Do black people have control of the economy?
Judging from the level of joblessness and inequality, the Black Management Forum of the Eastern Cape says the answer is a big NO. There is still a lot to be done.
For starters, the progress of socio-economic transformation must be evaluated and imbalances must be addressed.
Both economic and social transformation has been a central goal for the democratic regime, but broad empowerment of the majority of black South Africans has yet to take place.
The small, medium and micro enterprise (SMME) sector has been recognised as central to accelerating economic growth, reducing unemployment and bridging the gap between the first and second economies.
But I am of the view the state should do more to create an environment that promotes entrepreneurship and small business.
Although government has created multiple support organisations such the Small Enterprise Development Agency, the National Youth Development Agency, the Small Enterprise Finance Agency and the ministry dedicated to create a vibrant small business sector, I do not think enough has been done to create a platform that supports black-owned start-ups, provides access to business linkages and thereby promotes an entrepreneurship culture.
Too many small businesses are destroyed by a lack of access to markets (business linkages), the failure by government to pay on time or to procure more services from black-owned businesses.
Furthermore, empowerment in the form of mentorship is essential to any business owner and as such should be a requisite.
The SMMEs should be provided with meaningful support and provided with mentorship that will take them to another level.
By doing this, the economy will provide many economic opportunities, particularly the state supporting and empowering black-owned enterprises.
Given that SMME growth can result in increased employment, skills development is essential to address socio- economic transformation.
We need to ensure skills development programmes continue to produce scarce skills.
This is in line with the government’s strategy towards creating black industrialists to create jobs and growing an entrepreneurship culture.
Finally, corporate social investment (CSI) initiatives should be encouraged to provide support and opportunities to disadvantaged communities and individuals who are not usually the beneficiaries of developments in the formal economy.
Once all these items have been addressed, I strongly believed the rate of our socio-economic transformation will improve for the better.
It is clear we have come a long way in transforming the South African economy. But the state, working with the private sector, has an obligation to make sure the battle for economic freedom is realised through various pieces of legislation and policies such as Broad-Based Black Economic Empowerment, affirmative action, employment equity and much more.
Any investment that may come to the country will mean nothing if the working poor and unemployed do not benefit.
The challenge is to give people the opportunity to be actors in the economic value chain.
The first challenge is for everyone to be involved in some form of employment while improving their access to skills development programmes, to education and to finance for start-up businesses.
By achieving this, more people will be empowered to be creators of employment opportunities through entrepreneurship. These may be through small or even micro-businesses.
Mabuti Mpafa is deputy chair of the Black Management Forum in the Eastern Cape
Join the BMF Eastern Cape debate on “the state of socio-economic transformation within a context of sustainable development” at 8.30am today at the Regent Hotel, East London. Panelists will include Koko Khumalo, BMF deputy president, as a keynote speaker, Xola Phakathi, deputy mayor Buffalo City Metro, and Andrew Murray, executive director of the Eastern Cape Socio-economic Consultative Council
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