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Thread: Jobs Fund

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    Platinum Member Chatmaster's Avatar
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    Jobs Fund

    A lot of emphasis have been placed on the current jobs crisis in SA. Yesterday government finally launched their Jobs Fund and allocated a full R2Bil for this financial year.

    In total R9 Bil was allocated to create 150,000 jobs over the next three years, that boils down to R60k per job.

    What is your opinion about it and how should the funds be utilized in your opinion?

    Also read this.

    http://www.sundaytribune.co.za/gordh...jobs-1.1080299

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    Diamond Member Justloadit's Avatar
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    A number of issues needs to still be addressed which I have not been able to pick up.

    1. Does the subsidization come in one pay out, or do they subsidize the monthly wage on a monthly basis?
    2. Do they transfer the money into your account on a monthly basis, or after a year or two or when ever they feel like it?
    3. What happens after a year or two or three you have to retrench the individual, must you now return the received subsidized wages?
    4. For how long are you subsidized for?
    5. If you never get your subsidy pay out, what recourse do have to collect it?



    Some of the things I have picked up.

    1. You only qualify if you create a completely new position for a youngster coming out of school.
    2. Employing some one as part of your normal operation or a vacant position by an employee resigning does not qualify for subsidization. Please confirm!
    3. The subsidized employee become permanent employees in your firm, and after the subsidized period, you are on your own as a normal employee.
    4. They will subsidize to a maximum of 50%, so you need to really escalate the reason for this much subsidy


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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Justloadit View Post
    5. If you never get your subsidy pay out, what recourse do have to collect it?
    As a taxpayer, I'm quite interested in what recourse gov is going to have if the subsidised enterprise doesn't produce on their deliverables.

    Pardon me if this seems sceptical, but there's been a heck of a lot of wastage on non-starters when it comes to enterprise development - and in truth the recipients had no intention of starting an enterprise in the first place. Many viewed it as a payout for filling out the application form. I've had a few in this category knocking on my door for the info they need to claim for starting a pest control business. And they were pretty upfront about it too.
    The trouble with opportunity is it normally comes dressed up as work.

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    Diamond Member Blurock's Avatar
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    Angry

    I am glad to see that Government is now following up on their promises to create jobs. A news article yesterday confirms that Govt. will now have to consider local content in procurement for new tenders. This will be in addition to BEE and will be of great help to the manufacturing sector.

    Pity that the different finance bodies does not know about this yet. I went to see the IDC on Monday on behalf of a BEE client to seek assistance for manufacturing that will replace current imports and thus create local jobs. They were not concerned about the import replacement at all as it did not fit their lending criteria.

    Almost like the banks that announce at the beginning of each year and with great fanfare, how they are setting funds aside to help small business. Never happens!

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    Diamond Member wynn's Avatar
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    Remind me again how many million in a billion so I can work out how many people are going to benefit by how many million?
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    Platinum Member Chatmaster's Avatar
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    We are currently busy with a project that is in line with what government wants to do with these funds. But I have a few concerns.

    1. Do they have the capacity to even understand what we are doing?
    2. Will they want us to follow the BEE path, which I am absolutely not willing to do.
    3. How long, if successful, will it take for us to get the funds?
    4. How much will they interfere from their side to align the concept to their own agenda?
    5. With whom does the intellectual property stay after our concept have been sent to them?


    From their criteria it is obvious that the government have no idea what to do with the allocated money, and their criteria also makes it very restrictive to choose an appropriate way to utilize the funds. I am affraid that they had very bad, few or maybe poor consultation in terms what the funds will be used for.

    A further issue I have is the fact that the number of jobs they wish to create is far to little if you look at the frequency at which job losses are happening atm. I believe they are not using a "design without constraints" approach here which is actually what is nessasary to make the right choices. They have far to many constraints in their criteria and absolutely the wrong approach to make this working for them. I would have thought they would much rather involve a couple of successful small business owners or consultants within the SMME industry to assist them in utlizing these funds. Academics and government employees are the last ones that should be involved in this as they have no understanding of what it takes to start a successful business.

    I certainly hope that the money will not be given to people to start their own businesses as the success ratio will be very tiny.

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