Category: Small enterprises

Black economic empowerment (BEE), Business incubation, Cooperatives, Crime against business, Home-based businesses, Municipal efficiency, Preferential procurement, Public service delivery, Small enterprises, Sole proprietors, State Owned Enterprises (SOEs)

Government’s attempts to promote business formation as effective as a rain dance…

it would help more to combat crime effectively

Is the blind leading the blind when it comes to the promotion of black businesses? This question in my previous blog apparently ruffled a few feathers. Let us therefore compare the positive impact of Government strategies to stimulate business formation and the negative impact on business formation by Government’s failures in core governmental functions. Continue reading “Government’s attempts to promote business formation as effective as a rain dance…” →

Black economic empowerment (BEE), Credit risk ratings, Investment/Divestment, Small enterprises

If you thought the S&P and Fitch downgrades scare investors away… Government’s security & protection deficit prevents a million local would-be entrepreneurs from investing

Whilst the downgrading of investor status by Standard & Poor and Fitch already drives foreign investment away from South Africa with capital flight from the JSE, at the local front ineffective crime prevention by the Government is one of the largest disincentives for enterprise investment:  a million people would have considered home-based businesses were it not for criminality. Continue reading “If you thought the S&P and Fitch downgrades scare investors away… Government’s security & protection deficit prevents a million local would-be entrepreneurs from investing” →

ENTERPRISE TYPES, Informal businesses, Large enterprises, Medium sized enterprises, Small enterprises

Managing the interface between the formal & informal sectors

Increasing the number of micro and informal businesses (in particular survivalists, street vendors, hawkers and spaza shops) is a yard stick by which the progress of the Department of Small Business Development is measured. That is clear from the 2016 report of the Parliamentary Committee on Small Business Development (See https://pmg.org.za/committee-meeting/22352/ ). Whilst supporting the poor is laudable, any strategy that wants to regenerate economic growth has to seriously reconsider this approach. Continue reading “Managing the interface between the formal & informal sectors” →