Transformation remains far off target

2012-09-17 13:15

Cape Town - Nearly two decades after the advent of democracy, the South African environment is still not conducive to the entry of black businesses in terms of capital, skills and market place.

This is according to Kekeletso Khena, director of the annual Van Ryn's BBQ Awards, who said that while black business has transformed from largely informal to formal businesses over the last 17 years, South Africa is still falling short with black business transformation.

"While black economic empowerment (BEE) has assisted black businesses that may not have had the opportunity prior to the introduction of the broad-based black economic empowerment strategy, there is still only a handful of black businesses that are competing with former white businesses.

"This was confirmed in recent research published by WealthInsight which revealed that of South Africa's 543 ultra-high net worth individuals, only 75 are from previously disadvantaged groups.

"This figure highlights how far South Africa is from reaching its transformation goals."

The 2011-2012 Commission for Employment Equity annual report which reflects on the status of employment equity in the country recently showed how equity in the workplace is still skewed.

It stated that 47.9% and 44.6% of all senior management positions are held by white men in the Western Cape and Gauteng respectively, compared to 6.0% and 13.9% for Africans, 11.2% and 3.6% for coloureds and 3.9% and 6.8% for Indians. 

Khena said the platform for black business was not even close to being level and that without active government promotion, society and corporate South Africa is not doing enough to empower emerging black business.  

"The biggest challenge we are faced with is the lack of mentorship for black entrepreneurs and investment in skills development.

"There are a few young men and women that are doing amazing things without the benefits of BEE advantages and mentorships, but these businesses are largely limited to the creative and services industry."

She adds that corporates don't necessarily look at these business entities unless it will help their scorecards. "It is important we add value for BEE.

"The reality is BEE is not about ownership but more about doing certain things that say as a company you are adding value to the economic development of the country through skills development and corporate social responsibility, and not necessarily transforming the face of business."

Khena says society as a whole has a responsibility; there is a desperate need for the development of entrepreneurs and, more importantly, skills development.

"When you consider the Van Ryn's BBQ Awards nominations, one of the aspects we look for is that the company or individual has a level of integrity and that they have demonstrated exceptional ability and commitment to guiding and mentoring emerging entrepreneurs.

"If we don't encourage black business to start developing entrepreneurs by saying 'I am a role model, this is what I've achieved and this is how you can do it', we are not going to develop and grow entrepreneurs.

"Individuals are unable to look at a Pick n Pay for instance, and model themselves or their business around the company, but they can look at a role model, such as Richard Maponya and be inspired by the fact that he has also come from a disadvantage background, but was able to develop himself into one of South Africa's richest businessmen," Khena said.

 - Fin24

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  • hermann.hanekom - 2012-09-17 13:29

    BEE is not about transformation it is about racism, blatant racism.

      larry.piggott1 - 2012-09-17 14:03

      No, its mainly about Looting. The Race Card is just a weapon now (the only one they have).

      msendi - 2012-09-17 14:12

      No, in Biology it is like something they call DIFFUSION… (The passive movement of molecules or particles along a concentration gradient, or from regions of higher to regions of lower concentration.)

      Don.Tandy - 2012-09-17 14:19

      Get real trevor.

      trevor.myburgh.12 - 2012-09-17 14:23

      Everyone is hitting the down you button, is it your conscience or do anyone of you have one.

      trevor.myburgh.12 - 2012-09-17 14:30

      @Don it is a fact, and you know that too. When don't get our way we look for someone to blame. I can't get my foot in by the door. I can just look in from a distance.

      jeremy.forbes.1293 - 2012-09-17 15:26

      Trevor, keep going, your words and attitudes are the reason why people will keep voting for the ANC. You are doing a grand job. You may miss the old days but we certainly won't miss your presence when you days are over.

      trevor.myburgh.12 - 2012-09-17 16:34

      @jeremy I was sarcastic when I wrote the first statement, just shows you lot have a pea brain.

  • aspruyt - 2012-09-17 13:30

    Education is the gateway to transformation not asset/wealth redistribution.

      priyal.pillay - 2012-09-17 13:42

      Agreed, education is and always will be our salvation. Regrettably our our education system is so fractured. Post 94 we had a huge challenge on our hands and not enough emphasis or commitment was given to build up those structures, especially given our 'unique' history and subsequent problems. The biggest crime though, and what really pisses me of is that the majority of kids in this country have to bear the brunt of this sub-standard system. That is the greatest injustice

      sandra.j.rennie - 2012-09-17 13:53

      Absolutely no other way aspruyt. Go to school and get at a matric pass at least, and not 33% Stop moaning about text books, etc. When I went to school I had to buy my books at Van Schaiks in Church Street. I worked Saturdays to earn this money. My mom had none and we were 7, yes 7 children. Get a life, you moaning minnies. You make me sick !

  • joseph.vanvuuren - 2012-09-17 13:31

    Because the whites don't toy-toy for a position and money.WE WORK for it..

      merven.halo - 2012-09-17 13:59

      True, looking at how violent blacks become when protesting there is no way that I will employ especially local blacks.

      jeremy.forbes.1293 - 2012-09-17 15:32

      You might not have toy-toyed but you never achieved anything on merit, you were the recipients of AA and W(hite)EE. So, don't complain unless you refused an offer of your AA and WEE.

  • gw.smit - 2012-09-17 13:33

    No more excuses.. The new south-africa has had 18 years to grow and develop a whole new generation of black youngster to take their place in the economy but what has happenend instead? Complete and utter degeneration of our education system resulting in the los of an entire generation only to deliver more and more poor people.

      jeremy.forbes.1293 - 2012-09-17 15:36

      Undeniable, the ANC has looted away the future of these children, they should be truly ashamed of themselves, but sadly they are not.

  • charl.reaper - 2012-09-17 13:40

    Transformation can and will take place as soon as the management of funds of the government go into education and infrastructure. There unfortunately is no other way of achieving this. In 18y the government could easily have had a population of young people with a decent education lvl. Unfortunately not living up to its promises the country is left with yet again a generation that has been disadvantaged. Which is absolutely unfair. The private sector as much as they want to unfortunately can not employ people without the correct skill set, forcing them to do so will also result in less investment in the country. If the government would like a certain group of people to excel then they need to create a firm base for these people to grow from. However, not educating people and not creating basic services for them makes the task at hand very difficult and unfortunately will result in greater division between the people. The nation is starting to see that the promises are not being backed up with strong will to better the nations underprivileged. It reflects poorly on the government, I hope this will change in the near future.

  • mark.haupt.31 - 2012-09-17 13:42

    Um, if the cadres stopped looting the place there might well be more than just 75 ultra-high, net worth, non-white individuals on your list. You may also ponder the point that of the existing 75 most are probably on the ANC executive. Makes one think, doesn't it? Would it help you if all the "previously disadvantaged", all 45 million of them, were wealthy as that seems to be the goal? Whilst we're on the subject, it may come as a surprise to the generators of all these useless stats that few people get ultra wealthy by being employed, thus your employment stats have exactly squat to do with the wealthy of the country.

  • boeretroos.redakteur - 2012-09-17 13:49

    B...Blatantly Black E...Exceptionally Egotistic E...Exclusive Ethnical

  • richard.zanner - 2012-09-17 13:51

    Get over yourselves. If you cannot compete after 20 years with BEE and AA in place then you are to blame. Stop blaming the less than 10% of the population because you cannot get it done. Maybe Government should pay more attention to schooling than blue light issues. If every so called white business had to now close down to make you happy then the void will still not be filled as you will need to get up and create your own business so nothing is really going to change. Every failure out their will find a 100 reasons why they could not make it and the guys who make a success are the ones who had the lucky breaks. Grow up.

  • mantothieve.missingman - 2012-09-17 13:51

    "The biggest challenge we are faced with is the lack of mentorship for black entrepreneurs and investment in skills development" Thanks to the anc , I doubt whites will rush over to assist with the above , I certainly dont anymore and wont in future sorry , You can use my tax money to develop these skills.

      larry.piggott1 - 2012-09-17 14:01

      Nobody gave me "Mentorship" or anything else for that matter. I stood on my own feet and took my knocks. Unless you do the same, its a fact that anything you get, you will lose. The old saying, easy come, easy go.

  • peter.retief - 2012-09-17 13:54

    This is a pointless debate, the stats are probably wrong and is a idiotic attempt to stir up racist anger against white citizens

  • leigh.mos - 2012-09-17 13:56

    Why don't we just give all our businesses to the black population. Our Farms too..... Why work for anything, we will just hand it over to you. It worked really well for Zimbabwe didn't it? We will pay our Domestics and gardeners the new minimum wage of R12500-00 too. So sick of this

      dnxumalo2 - 2012-09-17 16:02

      Please DO!!! can I have my bank account handy?

  • Andre Kapp - 2012-09-17 13:56

    Transformation...... A word open for interpretation. As are most words used by governments, lawyers, places of worship, ect. Words like this are being used so the individuals using them can jump the fence whenever it suits them and always reminding everyone else,if the shoe fits. Trying to remind the white man that the jobs he creates is not as valuable for the economy as other ethnic groups. Should white businessman feel guilty about actions of his ancestors, deceased grandparents? Or does the shoe not fit me? I think it is sad that a person of any race with enough brain power to gather all of the statistics in the article about transformation is wasting time and energy on crap like this. If you want transformation, open your eyes, it been almost 20 years!! Oppertunities are all around you. It will not be easy..... Ever. So if anyone think they will become a

  • merven.halo - 2012-09-17 13:57

    "The reality is BEE is not about ownership but more about doing certain things that say as a company you are adding value to the economic development" Shouldn't government lead by example? If ministers line their own pockets, screwing the public over, how can they expect companies to 'add value'?

  • itcrackpot - 2012-09-17 13:57

    Which business would you rather deal with, one with forty percent knowledge or one with eighty percent knowledge? Makes you think doesn't it? Also it explains why BEE transformation remains slow.

  • larry.piggott1 - 2012-09-17 13:59

    WHy should I take in a partner that I don't want. Particularly if this partner has dubious skills, no Capital and most of all, is connected to Influence which I try to stay away from?

  • charl.reaper - 2012-09-17 14:00

    Oh and lastly, I don't think this article should've been published as it does not bring about anything positive. It in fact reflects poorly on the news team and the government. Feel free to smash my comment If you disagree.

  • wilhelm.grobbelaar - 2012-09-17 14:01

    So now its a competition between black business owners and white business owners. If a person is competent enough to work towards opening a successful business, then so be it. Many people open businesses but because of lack of resources and knowledge and the necessary skills, it is not successfull. The BEEE has nothing to do with how smart a person is. So please stop with the race game again.

  • julius.hond - 2012-09-17 14:03

    and it will remain far off target...... for ever....

  • rofras.rassie - 2012-09-17 14:03

    if i was a white capitalist, i'll sell all my shares/stake and move out of SA. Marikana erruption is the begining of war, soon it will move to farms.

      darren.raath.5 - 2012-09-17 14:20

      its been at the farms for years already.

      trevor.myburgh.12 - 2012-09-17 14:38

      @rofras.rassie You don't have to do that, just treat your fellow South African with respect and dignity he deserve no matter his ethnicity you will find good favor. What are you going to do where you are going, there's going to be the same problems there. heeee haaaa Oranje hier kom ek, no my brother, that's not the answer. We need you

  • denny.cray - 2012-09-17 14:10

    "Khena says society as a whole has a responsibility" Yeah, well if it does how are you going to hold it responsible? How do you ever hold collective groups responsible or accountable? Who gets to decide how these collectives are grouped? Can I opt out from one group into another? Didn't think so. Far too many previously (and currently) disadvantaged fail to recognise that the worst legacy of Apartheid which remains is its terrible mindset. Forced equality breeds inequality.

  • morena.tsolo - 2012-09-17 14:12

    Hopefully the above Commentators who are Apartheid Sympathysers and direct/indirect beneficiaries of this crime against humanity will no longer cry about Crime, Corruption,fraud as they themselves were once involved or else benefitted as I explained above. As the Constitution of SA acknowledge these past injustices and even goes further in addressing them; can we now have the Apartheid Criminal benefactors shut-up as the Majority sees it fit on how to emancipate themselves and have the laws of this Country allow them to do so even if it means not spending a night in Jail like Shabir Shaik and others. Shall the perfect White race say Amen!

      mantothieve.missingman - 2012-09-17 14:17

      Why is your uselessness always someone else fault ?

  • Don.Tandy - 2012-09-17 14:17

    In a free enterprise system, success is based on how efficiently and well run any business operates, not on some imposed advantage that idiotic policies (BEE, EE, AA) may provide, which in reality succeed in putting misplaced hopefuls in positions where they just cannot cope, and businesses fail. Let the ANCorruption carry on with their insane objectives, and before too much longer there won't be much of an economy.

  • ajgreis - 2012-09-17 14:29

    Well I was unemployed and I am building my company with a lot of courage and without help of BEE or any kind of help.

  • fedix.makwala - 2012-09-17 14:38

    The country will transform in all spheres be it in business, EE and AA, land redistribution and all. To make noise on news24 will not change anything. To undo the damage apartheid created you have to exclude the beneficiaries of apartheid. THERE IS NO OTHER WAY.

      Ze Don - 2012-09-17 14:51

      So you're saying racial discrimination is fine, as long as you're not on the receiving end?

      fedix.makwala - 2012-09-17 15:06

      Racial discrimination is 100% fine as long as it will fix the inequality amongst the races.

      Ze Don - 2012-09-17 15:23

      The problem is that it won't fix anything, all it's achieving is more discord. Anyway racism is still racism, so effectively this government is no better than the old NP was.

      nick.athinodorou - 2012-09-17 15:39

      The taxi industry was a direct beneficiary of apartheid. What do you suggest we do with it?

      warwick.bristow - 2012-09-17 16:02

      Creating advantage for one group at the expense of another does not create unity or forward momentum, it only creates mistrust and resentment. Look at apartheid, with how much hate and distrust it created. You cannot correct the past by reversing the same or similar exclusion policies, it will just never work! My father taught me something very important - nobody owes you anything no matter what your life has been like. The only way to improve your life is to pick yourself up and dust yourself down and work hard - nothing ever comes for free. My concern is that BBBEE is creating the impression that there are freebies around the corner. I will employ the best man for the job, not some guy who feels society owes him something - I want winning attitudes on my team.

  • crystal.core.5 - 2012-09-17 14:46

    Real wealth takes generations to build, but rich productive, hardworking citizens can take as little as a few decades & education is the key. After nearly 20 years of ANC rule we are 30 years behind in achieving that. Trying to address the inequality of the past by creating an inequality in the present is ridicules notion that puts the Zuma in the same shameful place as Verwoerd. Job reservation based on race is evil. Doing it twice in one country is in comprehendible. The ANC seem more concerned with stuffing the pockets of their fat politicians and taking wealth away from whites than they are about building a bigger, better economy that all South Africans can participate in and benefit from. One is sustainable, the other is not. Will they in future have to implement policies to address the racist wrongs of the present? Due to the formalisation of these racist BEE policies, South Africa is now officially the most racist country in the world, and the shameful ANC is the most racist government in the world. These racist policies have already directly led to a massive flight in foreign capital, skills and employers and will continue to do so as capable South Africans continue to leave or be murdered. The double standards of the ANC also allow for the publishing of granular statistics on how exactly many white males occupy management positions, yet murder / genocide statistics mentioning the race of the perpetrators and of victims are banned because they are 'racist'.

      Ze Don - 2012-09-17 15:25

      The tragedy of this whole situation is that we, as a country have learnt nothing from our past. We'll keep playing tit for tat until there is nothing left :-(

  • rontheogre - 2012-09-17 15:25

    If my maths is correct, based on the stats provided in the article, then 31% and 31.1% of senior management positions in the Western Cape and Gauteng are held by people that are not white, black, coloured or Indian men, so I must assume they are women of all races. This does put a different spin on things as this shows that women have narrowed the divide a lot.

  • nick.athinodorou - 2012-09-17 15:31

    'Transformation' is a moving target that will never be attained. The sooner South African's realise the better for everyone involved. Our population is not static. The number of businesses out there is not fixed. To apply this fixed quota to a ever changing demographic and business environment is merely a discrimatory measure against the new generation of minorities. it wont work and will continue to be a thorn in race relations long after its initiators have passed on. This is merely apartheid by another name.

      gerasimos.komnenus - 2012-09-17 22:55

      I agree Nick. This vague term "transformation" can mean so many things. What does it actually mean in the minds of those who call for it. It is as you say a very undefined target and is fundamentally a call of those who want something for nothing. Unfortunately it is like chasing the pot of gold at the end of the rainbow. It is an illusion that will/can never be attained and it will destroy our country unless we all realise that its only goal is to enrich the criminals that head up our state.

  • dnxumalo2 - 2012-09-17 16:07

    But I wonder if you call it transformation when every road or RDP house you build is falling apart behind you as you go along.By the time you finish everything needs a fresh start.

  • linds.ronhouse - 2012-09-17 16:53

    Who remembers AEE (Afrikaner Economic Empowerment)? It was intended to empower Afrikaners as the corporate world was controlled by the English for a long time. Many Afrikanner people benefitted immensely from this policy, to the detriment of non-whites, especially Africans. Women also suffered from this policy. It is important to remedy this and reaffirm all previously disadvantaged groups, including white women. White women has also benefited from BEE and EE.

  • morne.marais.752 - 2012-09-17 20:16

    Anybody wondered why there is a lack of "Mentorship" for black entrepeneurs?? The first thing they did when they came into power was kick all the whites out of their positions!! These were people that could've mentored them and this could've resulted in a smoother transition. My question to you is: 'Would you want to teach and help the very people who kicked you out of your job and taken the food out of your family's mouth?' - I wouldn't!! The bottom line is and I don't care how educated the people who support BEE and the 'new' system of government are.....THE POLICIES EMPLOYED, RULES AND LAWS OF SOUTH AFRICA ARE FLAWED AND IN MANY ASPECTS CONTRADICT!! My message is: WAKE UP BLACK MAN, STICK YOUR PRIDE IN YOUR POCKET AND LEARN (IF POSSIBLE) TO WORK WITH YOUR FELLOW WHITE MAN!! We have demonstrated a willingness to work with you, but you do not want to work with us!! Stop using BEE as a card to play the colour game and do what your ex-president, Mr Mandela, preached. Work together and not against each other, you could achieve so much more!!

  • Johnson - 2012-09-17 21:05

    Transformation led to corruption, it led to public sector that does not have the capacity to deliver (round no 1). (Round no 2) - transformation in the private sector - where will this lead too ? then we have land reform and nationalization of mines - it clear that the mandate it get whites to please leave as there is nothing for them in the future of this country (Simple read between the lines)

  • hugh.robinson.56 - 2012-09-17 23:20

    Transformation is a failure at every level. If we use government as an example and employed the same reasoning and logic to private enterprise the tax base would have died by now.

  • rajiv.ishwar - 2012-09-18 11:25

    The stats should also compare the % black ownership ownership on the JSE which is quite an eye opener. Secondly, owing to the /experience/talent/educational disparity in SA, another useful stat would the % representation vs the % of talent of each race in the market.

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