Small business is key to solving job crisis

AS a society, South Africa faces many challenges, but it is not rocket science to deduce that the elimination of two of them would go a long way to eradicating the others.

If we could solve the unemployment problem and eliminate corruption we would be on the road to a happier, functioning society. Of these two evils, the most serious is unemployment because no job means no money and no money means no food.

Being hungry, really hungry, must be the most terrible feeling. Mothers without food to fill hungry tummies must suffer the worst kind of despair. The most destructive and the most dangerous aspect of unemployment are the thousands of young people, many of them educated, who have no prospect of a productive future. Our appalling crime figures can, to a certain extent, be laid at the door of the lack of self esteem and dignity among our youth. That is what being jobless creates. When you have nothing to lose, crime becomes an attractive alternative.

You would think that the institutions which drive our economy would take cognisance of the fact that they hold the key to the country’s well being.

However it appears that even the banks make getting ahead as difficult as possible for young people trying to make a living.

If this is not so, then it is difficult to find the logic in an incident which tied the hands of a young man running his own successful landscaping business in the Mother City. The truck he uses for this had exceeded the 500 000km mark and it was obvious the a new vehicle was becoming essential. He found one, a 6-year-old bakkie in good condition and costing R104 000. A fair price, and affordable. Before the deal could be signed there was a credit check, which proved to be excellent. Then came the bombshell – the bank would lend him the money but they required a R40 000 deposit and the loan would carry a 17.5 per cent interest rate. Why? Because he was self employed. This young person was creating jobs and enabling a handful of employees to put food on the table every night. For this he was penalized. He may not employ thousands, but he is one small business among many businesses which should be nurtured and supported instead of being punished.

The future prosperity of South Africa lies in the ability of small business to create pockets of employment. Employment will not come from empty promises and grandiose schemes. It will come at one small step at a time, driven by people who have the knowledge and a dream. For this to succeed though we need the people who hold the purse strings to have the courage to back the little man.