Entrepreneursip-The Key To Poverty Reduction In Africa?

[wealth2012]

Doing this recession many people lost their jobs, savings and investments as a results the poverty level in the World went to a higher percentage yet those who have their own businesses still manage to live high life.
Politicians are preaching about jobs creation but they don't even know how most jobs are created.

Ok poverty reduction. Africa don't need aid and free money but partners and business opportunity. To actually create jobs and reduce unemployment, the government and private investors must encourage entrepreneurship. Entrepreneurs build businesses which in term provides jobs, and once people have jobs they can have the income needed to provide for their families. This can help the country as well because the money is going back into the economy. Guys hope this will be a good reading and educational post for the wonderful people on Forum SA.

[adrianh]

No, they need to make less babies and learn to live off the land. People are much better off being able to provide food for themselves than working to buy MacDonalds.

[Elijah Nunga]

Good day. I’m 31 years old youth who started an IT company and the company has been registered this year on the 02 February 2012 and got telecommunication projects from four companies : FNI, Protrench,SPE project Management and Hezeki Contracting company. Currently we are with Hezeki Contracting doing Ericsson network in fibre optic telecommunication

Our problem is that we are running short of capital to buy tools, PPE and for salary and wages for that project . would you please advise us on how to get fund or investors so that we can expand our company.

[Dave A]

Post 3 illustrates what I saw as the fundamental flaw in the OP - a lack of understanding of the real problems of Africa.

We've got enough people with the will to be entrepreneurial - it's our capital market capacity that is underdeveloped compared to Western economies.

[Justloadit]

Every single entrepreneur experiences capital problems at the onset, it is no different here in Africa.
What may be different in first world countries, is that family members or friends, who are usually the first line in making capital available may have more disposable capital available to loan, as opposed to Africa where the vast majority is living below the poverty line. This of course has given rise to "stokvels", unfortunately lack of business education on the recipient, usually loses the capital received very quickly.

Basic business education is also a priority, and may be easier to grasp that traditional education curriculum than the population is currently exposed to. I actually wrote a very basic book, showing all the basic requirements to have a small business, written in very simple English, with many pictures and examples.

I have always insisted that the education must be leveled at the opportunity the community will be exposed to, not this academic education that is currently forced on the learners. A typical example is the the teaching of accounting, history and some other academic subjects to a rural group of learners, in which the majority of the learners will probably land up in the agricultural sector.

Why not change the curriculum, to teach all the basics in agricultural subjects, in which maintenance in electrical, mechanical subjects are brought in as part of the fundamental understanding of farming, equipment, chemicals and other important subjects to make them successful farmers.

[Dave A]

One of the weaknesses I was considering adding was the inability to transition "from street vendor to supermarket owner", essentially moving from a survivalist micro business to a formal business with a structured growth plan. But on reflection it does happen.

Lots fail to make the transition, of course - but I'm not convinced that's unique to Africa.

[Justloadit]

A point to consider as well, many land up in a micro business because of survival, as they can not find a job, so the fact that they do not have the knowledge to jump into a small business, or if they do and fail is not surprising.

[wealth2012]

Well I don't really agreed with the less babies. Too many people have died in Africa in due civil wars tribal conflicts so we need more people to rebuild Africa through education, entrepreneurship and leadership development. But I agree with on the living off land instead of building MacDonalds. eating these fast foods meals hasn't help us in the West so African must be very care about eating from fast foods restaurants.

[wealth2012]

Thanks for asking. Well in the U.S there are many ways you can apply for loans, grants, family and friends contributions and funds raising but I don't about the particular Country of yours. If I find any investment method I will definitely let you know.

[wealth2012]

Well I believe you that Africa can competes and has the entrepreneurs available but the capital market capacity is underdeveloped but it's more than that though. To have a thriving capital market the government must create an environment of trust and safety where outside investors can contribute to the development of the capital market.

[wealth2012]

This is so true. The in the West many outsiders think that our government the one who provides the money or investments to start businesses, but usually most businesses in the U.S especially are family and friends owned. Usually as long your family believe in your vision they are the one who always back you. Don't get me wrong now the U.S government has grants and loans for small business start ups but it's very difficult getting these loans or grants. There long list of requirements to get your hands on these loans. I believe for Africa to fully compete in the Business World it's everybody on the continent outside must help because Africa needs help from all people around the World. Africa help the World to rise so it's time that the rest of the World Africa.

[roryf]

I don't usually comment on subjects like this one.I spend a lot of time in the rural parts of KZN and the Eastern Cape and have spent some time in Zimbabwe.There are some people out there that make a go at starting businesses and when I say businesses, they create micro business which is just there to keep them fed and to have a roof over their heads.I take my hat off to the people out there that try.Rural Zimbabweans are FAR more enterprising than rural South Africans because they don't have a grant system!!

Now on the other side there are the freeloaders that get the government grants,please don't get me wrong here but there is the mindset out there that the more babies I have the more grant money I get. I do agree that some grants do need to be payed but not as much as is currently.The grant system is not sustainable the way that it is growing.

I also think that the Health system in SA needs a bit of a wake up call.We have calls from the Health Dept. to reduce our salt intake but people are dying because there are not enough ARV's or TB treatment.We seriously need to cut out all the nonsense and look at the serious issues first.

I think honestly that there needs to be more family planning done in Africa if not the world.We cannot sustain the growth and the pressure on all resources.

Employment wise,I am not sure what the answer is but I try and create employment where I can and as I grow my business by WORKING HARD!!

Rant over,enjoy the rest of the week and remember have less babies!

[Blurock]

Prince, I totally agree with you.

I have just finished reading a book on Richard Branson. If we all had his entrepreneurial spirit and work ethic I am sure the world would be a better place.

Yes, Africa does not need aid. It needs partnerships. Buy our products. Agricultural as well as mining and industrial. I am sure that $1 in investment will go further than $1 in aid. I have two clients who are currently benefiting from partnering with US firms, but we need US companies to buy more of our products and services for us to grow.

[Blurock]

Agreed roryf. The current population growth is not sustainable and is putting strain on already scare resources.

This is exacerbated by a child grant system which is encouraging population growth where we should actually be applying birth control. As in the UK, there are people exploiting the system to get grant money. It may have been well intended, but the consequences was obviously not considered. The population explosion is just creating more unemployed people.

Unfortunately it is the same all over the world; from Chile to China, from India to Africa. The poorest people, who can least afford it, always have the most children.

[cyppok]

Was wondering why aren't CO-OPs more prevalent in SA or I just didn't search for any before I said that to be honest.
I mean like in Switzerland etc... and credit unions etc...

Blurock not everyone can be like Branson and work ethic takes practice and application most including myself don't have or do not want to have because its' possible not to have it.

Government is an enabler of those whom it considers its' constituency it usually makes their problem stretch out because all effort spent in "helping" is actually preventing sustainable change.