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Development of Entrepreneurs:
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Cedric Offline
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Development of Entrepreneurs:
Development of Entrepreneurs:

Restrictions and Red Tape make it difficult to get started as an Entrepreneur.

The aim of this movement is to gather enough support from the informal sector, off which will will draft a charter, outlining the various proposals that will remove restrictions and free the economy.

The removal of restrictions will contribute towards the development of entrepreneurs.

An obstacle that we are faced with in our country, is that historically we are not Entrepreneurs, the restrictive ‘red tape’ is only part of the reason, the job reservations system which restricted our black community from participating, ensured no shortage of jobs for a white, contributing to the lack of an entrepreneur tradition.
Our white population was born into a job, if his father was a farmer, he became a farmer, if his father was a lawyer, he became a lawyer, a doctor, a police-man, a fire-man, a train-driver, work was guaranteed.

Employment is only possible through the creation of a life-style that is based on the concept of becoming an entrepreneur.
Many white South Africans, disadvantaged by Employment Equity, have taken generous packages to get out of their jobs, switched to becoming entrepreneurs, and failed dismally.

Let us have a look at how we are going to establish this life-style.

BEE & EE; accepted as necessary, but abused by many:

For years, I like many accepted the BEE and EE principles and plodded along.
The Tender process has become so divorced from many sections of the business community, from the outside, it appears that only those who would be prepared to close eyes, or add to the corruption, play in this circus.

Employment opportunities:

Most young blacks that talk to me, believe that it is impossible to find employment if you do not have, a family member of friend in the corporate or government sector.
I agree, employment is impossible if you do not have a friend or family member in the system, you are excluded.

Why???

I attribute this directly to the damage done to our communities pre-1994, where, as a result of the conflict, we have large portions of the community who lived through our greatest conflict period, who did not receive the social skills transfer from one generation to another, skills that are normally transferred subconsciously from one generation to another.
These children were involved in the conflict with the security forces pre-1994, they did not live normal lives with their parents.
Many of them know they are unable to manage their anger, a small trigger can be fatal, yet they do not understand the reason or implication.

The lack of social skills are identified as follows:

Attitude;
Responsibility;
Communication;
Decision Making;
Problem Solving;

The lack of these life-skills condemn you to poverty, no matter what your skills or academic qualifications are, you do not get through the interview process without these skills.
For this reason the Employer, having successfully appointed one person with these social skills. is inclined to use that person in their employ, to bring family and friends into the system, as they are also more inclined to have these social skills.

How do I, as an South African ‘Unemployed’ access the economy??
In this area we need extreme honesty in our approach.
We need to break all preconceive opinions, this is not only targeted at the white employer sector, but as importantly, our black unemployed sector should free their minds from preconceived opinions around this employment issue.

To my black brothers who will say, ‘stuff you’, I understand.
To my white brothers who do not believe that their views and judgement are formed about something, not necessarily based on fact or knowledge, I do not understand.

What is a living wage? or more importantly, what should I pay or receive?

In my many discussions around this topic, we get lost in aggressive debate, and never seem to get to the wage in relationship to the ‘add on value’ the potential employee brings, or the income generated by the employer, or what skills / experience / value the job seeker is offering in relationship to the job seekers competing for the same position.

And how do we relate this living wage to the money available?

I am of the opinion that we need to put ourselves in the position of an entrepreneur, assess the situation, and respond accordingly. This will be your first step towards becoming an entrepreneur.
As an entrepreneur you are faced with selling your product at a price that your market can handle, and in competition with the other entrepreneurs marketing the same product.
Our Informal Hawkers and Shebeen Owners are skilled in this concept, they understand what they can afford to charge to survive in the market place. The principle is that your product will sell at the price, then, you need to provide a service and develop a relationship with your customer, and the more customers you recruit to your outlet, the more profit you will make.
This principle is exactly how you should approach your provision of services, look at what the market can afford, and look at what opposition suppliers you are competing with.

In the domestic market for example, a Sandton or Houghton resident will be earning ten times the amount that the poor Westdene resident is earning, how will you pitch for the Gardening and Cleaning services in these two very differing economic sectors???

How do I become an Entrepreneur!!!

As part of the process, we need to create a system where South Africans are no longer afraid of the Labour Legislation.
The Western Labour legislation and human-rights organizations will not address this problem as it is a subject that exposes their political agendas, and thus, the unemployed will need to give consideration to this option and take the initiative to create your own economic freedom through becoming an entrepreneur.
Our black elders will tell you that survival required you to assess the employer, understand who he/she was, what they wanted, and in your approach satisfy their needs.
Bheki, Jabu, Ali, Sithole and others use the term “pretend” for the approach that is used.

The Draft Agreement and annexure attached topic, uses a Garden Service as an example, but the principle will allow us to access all areas of the economic sector by encouraging the South African, afraid of the labour laws, to use you as an contractor, and will allow us to target the labour broker sector, dominant in the security, cleaning, retail, restaurant sector, you name it.

Identify where labour brokers are presently operating, many of you will have worked for labour brokers in various industries, security, cleaning, cashiers, stock packers, waiters, the opportunity is unlimited. Find a user of these services, and prepare yourself and your contractor group to offer the service directly to the client.

The world economy is going to force all businesses to reduce costs, you could replace the portion of costs presently part of the labour broker industry, and start you business as a contractor.

Remember, ATTITUDE, RESPONSIBILITY, and more importantly, sacrifice for the first seven years.

On the domestic front, you will be in the position to target a community, ensuring that you fill your five days per week, and as you succeed, you can employ a sub-contractor and extend your area, allowing the more productive use of your equipment.

In a few years, you could invest in a bakkie and extend your operation.

CONSTITUTIONAL RIGHT:

There will be structures that will tell us that it is illegal to enter into an agreement that conflict with our legislation, even though some restrictive legislation makes it impossible to earn a living.
I believe that we have a constitutional right that allows us to enter in an agreement that will allow us to earn a living, at a rate that we are prepared to work at in order to get the business.

As we develop a reputation for good quality work, efficient productive work, our value will increase proportionally.
We already have hundreds of thousands of South Africans operating in the informal sector where they are entirely depended on their productive skills to achieve any income.

An informal trader selling tomatoes on the street side, would he/she earn more than R 50 per day?
A seamstress, buying materials, producing garments and failing to sell the garments?
If the informal sector needed to be guaranteed a minimum wage related to the industry in which they operated, they would no survive.

The successful Entrepreneur build his/her business off the base of ‘sacrifice’, that is why the Asian culture is successful, add to that the Portuguese, the Greeks, the Pakistanie, The Somalie.

We, as South Africans need to make sacrifices, if we wish to compete.

Cedric de la Harpe

(This post was last modified: 11-05-2012 10:08 AM by Cedric.)
10-30-2012 10:34 AM
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