‘SA Needs Real Black Entrepreneurs’

Ntsakisi Maswanganyi, Business Live, September 6, 2011

SA still needs to produce “authentic” black entrepreneurs who “truly” own the means of production, according to President Jacob Zuma during his address at the Black Business Summit on Tuesday.

SA still had “no visible” black industrialists, despite the many black people entering various sectors of the economy, Zuma said.

“You cannot have political power without economic power,” Zuma told the summit, adding “we do not see large factories that are owned by black people or women.”

Government would help through the provision of industrial funding as well as through its preferential procurement policies, the president noted.

Zuma urged the summit to produce pointers as to how business, both emerging and established, would contribute to building a new industrial sector.

The country’s economic empowerment tool, Broad Based Black Economic Empowerment, had not yet benefited a wide enough segment of society, Zuma conceded.

“We want to see a much stronger focus on the broad-based aspects of BEE,” he said.

Government expected the new procurement regulations, which would come into effect in December 2011, to contribute to improving the economic participation of black businesses.

While Zuma called for more black participation in the economy, he also noted problems within SA’s business space.

The summit came after the recent termination of membership by the Black Management Forum (BMF) from the country’s largest business advocacy group Business Unity SA (Busa).

Organisers of the summit, the Confederation of Black Business Organisations, said the event would map out a way forward regarding whether or not other black business would also follow the BMF and terminate their membership at Busa.

During its termination of the Busa membership, the BMF accused Busa of marginalising black business and not taking transformation seriously.

The summit was taking place during a period of uncertainty with regards to business unity, Zuma said.

Zuma told the summit that government needed a unified and united business voice to work with.

“We therefore urge you, in your deliberations, to discuss the matter thoroughly with a view to finding solutions,” Zuma said.

“As government our objective is to see unity in order to focus on the economic growth and development priorities that face the country.”

Zuma announced that he would also meet with Busa soon.

“You now know what needs to be done. Unity must prevail here first for it to prevail elsewhere,” he told the delegates.

A concern for government was that the social and economic aspects of transformation were still lagging behind in the country, Zuma said.

Government was also worried about ownership, he said. The ownership and management of the economy in particular, Zuma noted, had not changed considerably since the dawn of freedom.

The conference’s discussions were held behind closed doors. Resolutions would be made public at a briefing on Wednesday.

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  • Peejay in Frisco

    Blacks are by far the least capable of successfully operating buisnesses,just like they are the most capable athletes,entertainers, and musicians.This unfortunate fact was pointed out in the black journalist Tony Browns book Black Lies and White Lies.They actually boycott black run buisnesses.Why? because non black buisnesses have lower average prices, are open more of the time, and have better merchandise.

  • Laager

    “Zuma told the summit that government needed a unified and united business voice to work with.”

    Perhaps Pres Zuma could set an example by protecting the white farmers and establish a forum where they could transfer their skills to blacks.

    He could then hit the big time and assist blacks to set up factories manufacturing pins, paper clips and wire coat hangers.

  • AnalogMan

    #1 Peejay – I most vehemently disagree that blacks “are the most capable athletes,entertainers, and musicians.” There’s more to athletics than running and jumping; entertainment has an aesthetic component that is the antithesis of the ugliness that blacks bring; and so-called black music is not music at all, but crap.

    There is nothing that blacks have contributed to society that is positive. Nothing that we would not be better off without.

  • Anonymous

    “we do not see large factories that are owned by black people or women.”

    – Such places are not created out of thin air. Liberals and leftists and ‘social justice’ activists never understand this. It takes

    a) people with vision to inititate such a thing.

    b) Lots of negotiation and planning and investments

    c) a lot of egg-head analysis

    d) building alliances across many interested parties

    e) patience, because it could take years to get a big thing going

    f) forethought about how to solve problems

    And so many other intangibles. Most businesses started by WHITE people eventually fail. Why should blacks have a magical juju in this vein?

    What will happen in SA? Eventually they will nationalize the resouces industries and confiscate the farms, even though white claims to the land predate the arrival of the Zulus and so many others, who also migrated to the area. Then the place will fail, and the CHINESE will be brought in to run things, and the SA nation will really be cheated blind!

  • aj

    It is just a shakedown to make white businesses find some black skinned guy to put in a suit and give him a fancy title and a large paycheck to be a co-owner or executive.

  • Anonymous

    Just a matter of time before there will be a major famine in South Africa. Farms that used to export products will be lying fallow. Bush meat will only last until most of the wild animal population is wiped out and the world will have another African country asking for aid.

  • Anonymous

    1 — Peejay in Frisco wrote at 7:37 PM on September 8:

    Blacks are by far the least capable of successfully operating buisnesses,just like they are the most capable athletes,entertainers, and musicians…”

    As a lifelong musician, I have to tell you that statement is not merely vastly overblown, but dead wrong.

    If I even began to cite the history of music, and it’s relevance to your statement, this website would crash.

  • Rebelcelt

    AMAZING THING THOUGH,this ignorant African knows that the key to wealth is to produce it yourself……… THAT IS BEING A LOT SMARTER THAN OUR OWN WHITE CONSERVATIVE FREETRADERS.

  • Commando

    Ayn Rand at her most brilliant would not have been able to forsee what is currently happening in SA. See if you can grasp this :

    You are an 18y/o white male leaving school. You have a huge disadvantage getting into university ( which was built with the sweat of your own race’s forefathers – but that’s a topic for another day ). Whereas non-whites get a lot of breaks, you have to pay for absolutely everything, as your money helps keep the already advantaged non-white students. If/when you graduate, your chances of a job are minimal, as most jobs come with the whites-need-not-apply tag.

    So you decide to start your own enterprise. Even while you are registering the new-born company, the registrar wants to know from you what you will be doing with regards to Black Empowerment ( i.e. you kick off as a slave ). Let’s assume that you overcome the obstacles, and you successfully get your company off the ground, you are told who to employ – based on skin colour, with absolutely no regard for competence or qualification.

    Now that you’ve managed to get the company up and running, the law determines that you MUST share the company with blacks – that pretty much entails that you are forced to donate a share of your company to a black/s. Once you’ve overcome that little obstacle, you will be told that because you were advantaged by Apartheid, you will be taxed at a higher rate than a black entrepeneur ( not that there are any, but you get the gist ).

    Now let’s assume that despite all of the above you still make it big, and you manage to become wealthy, the unions will tell your employees that you are only rich because you have been exploiting them – i.e you become one of the hated “rich”, and thus will be forced to pay outrageous “living wages” – again irrespective of productivity. If you should want to get rid of any problem employee, the CCMA will be on your back, and you’ll be forced to pay a settlement amount to this dead duck.

    And then on top of all this, Whites still rule the boardrooms, are still the vast majority of business owners, and still pay approx 70% of the country’s taxes, even though we make up around 9% of the population.

    Need seriously tough mo’fo’s to work for you ?? Come look among the Afrikaners of South Africa. The irony is that this very same situation exists in nearly all of the neighbouring “independant” countries as well.

    If the Whites of SA had to go on strike or withhold their taxes for just one month, the entire ANC house of cards would come crumbling down. In in spite of that we are being killed, raped, robbed, despised, vilified, demonised and blamed for everything that is wrong in country.

    White America and Europe – take heed. You’re next.

  • Anonymous

    Yeah, good luck with that Mr Zuma!

  • Laager

    True Story

    A friend in Johannesburg was senior management (white) in a company that manufacture electrical components for buildings/the construction industry

    The works committee (shop floor – black) requested a meeting with management to discuss an increase in wages.

    Management agreed and stated that wages could only be increased with a corresponding increase in production and sales.

    A bonus scheme was agreed where the more a worker produced the more he would earn. The scheme was implemented

    3 months into the scheme the works committee requested another meeting.

    At the meeting they complained that some workers were earning more than others.

    How could this be?

    Management checked the time/production sheets and stated that the extra incomes were directly related to increased production by the workers in accordance with the previously agreed bonus scheme.

    The committee stated that this was unfair and proposed a new scheme.

    They wanted management to accept an attendance bonus scheme.

    In other words – you earned a bonus for just showing up at work regardless of how much you produced.

    Management said no-way.

    The committee then demanded that the agreed bonus scheme be scrapped

    Management obliged and the workers went back to where they were 3 months previously – without a bonus scheme.

    Remember the African Fable about the The Legend of the Ant and the Grasshopper?

    Some time later my friend came home to find that a gang of robbers had taken an axe to his front door and cleaned him out of all his electrical appliances.

    A year later later he was starting a new life in Australia.

    Another well qualified electrical engineer with an MBA lost to South Africa and gained by Australia.

  • Anonymous

    they say not to look at race when the person in question is nonwhite. but when a company is owned by whites, race is the only thing the beurocrats look at. they say a business is racist because it employs too many whites but they would never say that about a black owned business that was staffed entirely by blacks. for some, a business isn`t good enough if it is staffed by whites. so much for “colourblindness”.

  • Anonymous

    9. Commando, You are overestimating the white population in South Africa. You are approximately 4% of the total population. Or has there been an enormous inflow of whites in the last few years.

  • Reformed

    How is it that a race that never invented so many crucial things such as the wheel, boats, written languages, mathematics or anything even remotely approaching a money exchange economy produces so many so-called entrepreneurs? Every single Black I’ve ever known of or met, no matter how dim witted and ill-educated, felt he was an “entrepreneur.”

    85 IQs, at best, at best, a higher than 50 percent high school drop out rate, and every single last one of ’em thinks they are the next Bill Gates.

    The hear the word entrepreneur and think and act the word hustler. Everything is a hustle and a scam to these morons.

  • Anonymous

    Re: 9 — Commando

    That is already happening here in the United States. I’m sure SA is much worse, but everything you said is going on here. Government affirmative action thugs constantly bully small and medium sized businesses. If you want to be a preferred vendor for the U.S. government, you have to have give a minorty 50% ownership. Payroll taxes are increasing, workman’s comp insurance has skyrocketed, unemployment benefits (payed for by us) are endless. Most people of any race are useless, lazy clock watchers. I refuse to put myself through this hell.

    I am a small business owner. I survive by keeping it small and not hiring anyone. I am constantly looking for escape routes. I make that part of my daily routine. Instead of going on vacation solely for relaxation, I check out other countries to where I could locate. I refuse to be bullied by anyone. I survive by working around the government thugs and staying small. When that is no longer possible, I will outsource and relocate, like large companies have. My liberal, marxist, state and country are lucky to have me. I pay my taxes and don’t break the law. I hope they enjoy that and spend wisely. Eventually people like me will be gone. We’re being replaced by a hordes of people who have no intention of paying taxes or producing. When you kill the white middle class, there is no one left to pay for entitlements and AA jobs. In the future, you will have Zimbabwe.

    I would like to play by the rules and support my country…but my country hates me.

  • Commando

    @ Anon 5h32

    I am a small business owner as well, and do projects in nearly all of the countries in Southern Africa. Same thing – I’d love to be able to employ people. I’d love to have the means to make a difference in the lives of so many – noy only as source of income but also on a ‘parental’ level. ( Excuse the Oprah-speak ).

    My business plan is perfect and I don’t need finance. I am ready to go.

    But whereas you have the teamsters, we have the labour unions. And kindly bear in mind that a labour union strike in South Africa usually coincides with a hell of a lot of burning, destruction, looting, singing songs blaming the Whites etc etc.

    They have in fact made their own people unemployable, BECAUSE they have made them an unfirable protected species, with the entrepeneur/employer as the enemy.

    Another irony is that people like myself (as well as our farmers) are welcomed in these countries – it’s only in SA where the natives haven’t been hungry yet where we are not welcome.

  • Laager

    @ 14 Reformed

    There is however one shining example of what you write about.

    He has degrees in economics and has re-written the international text book on national economics

    That is Robert Mugabe of Zimbabwe

    He has turned his people into a nation of millionaires

    yet

    with all this wealth they can barely afford to buy a loaf of bread.

    When he retires as Pres of Zim expect to see him pop up on the boards of the IMF and World Bank.

  • South African

    A letter that I received today by mail by an employment agency. APSO is an umbrella body for employment agencies in South Africa. There are some terms you Americans are not familiar with, but the essence is that the red trade unions want to enforce permanent jobs, and scrap temporary jobs, including contract work. And this in a labor market where since 2009 (start of global crisis) over 1 million jobs have been lost and it is predicted in the next eighteen month another half a million jobs. And our labor market is small (about 5 million taxpayers and a total population of 50 million).

    “Dear Client

    We recently received the following communication from APSO:

    COSATU has officially announced their intention to embark on mass action/stay away on Wednesday 5 October 2011. Despite some media coverage focusing on the issue of labour brokers, COSATU intends to use this platform to voice their unhappiness over a number of issues including toll fees, tainted water supplies, etc.

    Please be advised that the NEDLAC negotiations continue and that despite this public display by COSATU, progress is being made within the official negotiation forum. Members and Client Companies are thereby advised to remain steadfast and positive and to stay informed. Companies must resist any pressure to do away with forms of flexibility. Express Employment Professionals will provide you with correct and relevant information on the negotiations at NEDLAC via APSO and CAPES.

    We reassure you of the progress being made through official negotiation channels and encourage you not to be intimidated by this public action. Rather, clients should remain firm and retain as much flexibility in these trying economic times.

    Regards”

    http://www.apso.co.za/