statistics and they are also
the majority demographic
concentrated in the townships.
This is not a negative thing if
entrepreneurship is the main
agenda instead of the attempts
to mass-produce unskilled or
semi-skilled labourers, which
has clearly not worked as a
government policy.
Where government has
succeeded is with the National
Small Business Act, which aims
to protect small enterprises.
Simplistically, the Act classifies
businesses according to their
employment numbers and
annual turnovers. For example,
small businesses are ones
that employ under 50 people
and have an annual turnover
of between R150,000 and
R2 million. It is important
to establish the number of
potential SMMEs that could
flourish if given the guidance
and aid. In 2006, hawkers
(those who sell fruits etc on
the side of the road) had about
210,000 outlets and employed
about 415,000 workers. Small
shops had 127,000 outlets
and a total employment of over
320,000 people, roughly the
same amount as shebeens.
These statistics have increased
and within them lies the greatest
potential for entrepreneurship
and profit; and, thus, even
greater potential for large-scale
economic growth. It’s the kind
of growth that can only occur
through large-scale competition.
A competitive economy is
a healthy economy; a healthy
economy is a growing economy.
The structures that private
and public sectors should
create need to empower small
business owners with skills
and fresh approaches towards
enterprise. They also need to
create a platform for networking
and greater exposure for these
small business initiatives. We
need to build more channels
that enable loans to be
awarded to business owners
on the outskirts of Central
Business Districts: those in
rural areas and underdeveloped
townships. This will build the
economy from the bottom
up, a method that has proven
to work better than trickledown economics, especially
in African nations. So, for an
economy that is succulent and
rich, let’s start by giving Mzoli’s
some competition through
increasing the number of formal
meat vendors in Gugulethu.
More so, we ought to inject
competition into the chain
restaurant market and make
Mzoli’s a nation-wide franchise.
Watch an interview with Mzoli
http://youtu.be/HftJv-d7aIs
28
Photo by cape town tourism
Entrepreneurial Edge