Crisis 'calls for creativity'

Johannesburg - Sir Richard Branson, founder and president of the Virgin Group, stressed the importance of entrepreneurship and innovation in the recession.

Branson addressed about 1 600 delegates at the Discovery Invest Leadership Summit in Johannesburg on Wednesday.

"It can be daunting to think of expansion when there are businesses that are closing down - but out of every crisis comes opportunities." Branson said. "The need for innovation and entrepreneurship has never been greater."

Branson said that three of the Virgin Group's biggest businesses had been founded in challenging econonomic times and were forced to operate against the odds.

Record label Virgin Records was founded in 1972, Virgin Atlantic Airways in 1984 and cellphone brand Virgin Mobile shortly after the dot-com bubble crash in 1999.

Branson is an English entrepreneur who founded his first business at 16, launched the Virgin brand in his early 20s and grew the company to over 200 business units, across a range of industries and spanning 29 countries.

He said that the tumult in financial markets and real economies over the past year has shaken many people's faith in the fundamental principles of the free market and capitalism. "If monitored properly, capitalism can work," said Branson.

"I believe the way we do business and access risk should not change. Capitalism brings extreme wealth to a few individuals and businesses," he said.

"With great wealth comes responsibility," he added, referring to a need to create opportunities in markets previously occupied by monopoly, giving new entrepreneurs a chance and new greener innovations.

Branson also met with President Jacob Zuma while in South Africa. The pair shook hands on an initiative to open a centre for disease control in the country.

"We hope this venture will help South Africa's ability to respond to health crises."

- Fin24.com