Business Leadership South Africa (BLSA) CEO Busisiwe Mavuso says Broad-Based Black Economic Empowerment (B-BBEE) needs to create job opportunities.
Mavuso says there should be no way that even after 25 years of liberation we still cannot reap the rewards or see the fruits of B-BBEE. Instead, the economy is still in the hands of the few.
If we don’t change the programmes that aim to develop or uplift small businesses, we will have a huge problem in future as research and stats show that the economy is still controlled by only 10%, while 50% live in poverty. I won’t say those who are working are fine because if they are fired from their jobs they will join those unemployed, says Mavuso.
Mavuso decried that it is unfortunate that 57% of SA’s youth are unemployed, and if this situation is not fixed, the rate of economic inequality in this country will rocket until we reach a stage where people from Alexandria township will cross over the bridge to burn Sandton.
“It is imperative that when we talk about B-BEE, it must be clarified what it needs to do,” she said. “Show which small businesses have benefited and how many jobs have been created and see how much these SMMEs inject into the economy. If more people are hired, it means a decrease in unemployment, a boost in tax income from pay as you earn, and more goods are bought from the shops – all positively affecting economic growth.”
Mavuso said according to research, if one black person gets a job or is hired, he or she feeds 10 other people.
“Small business owners must not be incubated forever, they must be developed, they must progress and also get work opportunities. It must not be a tick box programme.”
This article first appeared in Isolezwe newspaper