Cape Town - Responsible business to business (B2B) lending - based on reliable information - can go a long way in solving SA's economic challenge of job creation and consequently help to avoid a ratings downgrade, according to Jack Brownrigg, B2B executive at credit bureau Compuscan.
In this regard he emphasised the important role to be played by entrepreneurship and small and medium enterprises (SMEs). One of the big challenges of hopeful entrepreneurs and start-up companies - gaining access to credit - must be addressed.
"Credit is ultimately a resource that, when managed well, not only enables the start-up and growth of businesses, but aids the proper functioning of an economy. When someone becomes financially viable, he or she has the ability to employ others and that is the point at which a positive growth starts," explained Brownrigg.
In some lower-income communities, for instance, the average employed person is financially supporting at least about ten others. Therefore, by granting one person the means to start-up a business and to employ five others, an additional 50 people's lives would potentially be changed for the better.
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South Africa now needs to be seen to be doing something about economic growth in order to impress ratings agencies and avoid a downgrade, according to Brownrigg.
"Ratings are about a 'feel good'. Yes, the politics of the world affect us in SA, but if people think they can make money here - and get their money back of course - they will invest. It is all about perception regarding ratings agencies," he explained.
In his view, there certainly are solutions to SA's economic challenges - especially during what he regards as this "critical time to put our best foot forward".
"We need to put words into action and show an appetite to change, especially in the creation of employment," said Brownrigg.
He emphasised that an important factor in the creation of employment is education as it provides additional skills that support entrepreneurship, the running of a business and financial management.
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