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ON FRIDAY the Manufacturing Circle - a grouping that represents local manufacturers - released their Manufacturing Bulletin for the first quarter of the year.

The bulletin contains scary observations about the future of the economy and its ability to create much-needed jobs - especially for newcomers to the labour market.

"South Africa is in very real danger of losing its small manufacturing base as a result of adverse economic conditions and ageing entrepreneurs, with few new ones emerging to replace them," the bulletin reads.

It says many entrepreneurs running small plants were "bluntly pessimistic" about their long-term prospects and those of new entrepreneurs.

About 35% of the manufacturers canvassed said they would not be involved in their businesses in 10 to 20 years' time.

A sense emerges from the bulletin that many of these enterprises will in future face closure rather than sale or succession.

The fact that ageing entrepreneurs are not being replaced by younger ones is problematic, given the fact that our universities can barely cope with student numbers.

It raises the urgent question: what are the students training for?

If they are not training to be entrepreneurs who will create jobs it means they are training to be job seekers. There can be no worse form of economic regression than that.

The country needs job creators more than it does job seekers. We have enough of the latter, roaming the streets and relying on unsustainable government hand-outs.

Churning out seekers would be less of a problem if those emerging from the universities were equal to the requirements of the few jobs available.

Unfortunately, that's not the case.

On the eligibility of graduates for highly skilled jobs, the bulletin says 15% of small manufacturers say literacy and numeracy is poor and doing on-the-job training is doubly burdensome.

It says there will be a silver lining to a dark cloud if the government pursues the correct policies.

We hope the government, particularly Minister of Higher Education Blade Nzimande, is listening.

More importantly, the message should be made clear to the youth, most of whom are black, that their future is tied up with entrepreneurship, not to be confused with tenderpreneurship.

Comments

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Tue May 21 19:45:03 SAST 2013 ::

May 21, 2012

Ms-B

Agreed but it is not that simple unfortunately.
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May 21, 2012

swona

at the moment I am employed and run a business, I employed 3people, I want to employ 6-15 in 5yrs, and as I am thinking, maybe we need to reproduce less kids per house hold, people are giving birth like pigs! do you think before making that baby if he or she's going to get work?
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May 21, 2012

Sebata's

good stuff Swona, we need to meet our Government half way in creating an Employment, like me I’m hoping to empower three young stars from my Church in opening a car wash, hair cut and selling some sweets its small but it something if all we can start doing something about unemployment.
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May 21, 2012

MorenaWaPolelo

Blade will not lestin to any one as he is drunk with power !!!!
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May 21, 2012

Rebathobamoya

@Swona & Sebata's
Keep it up guys, very impressed. I have employed one but planning to employ 6 - 10 in the coming 4 months or so.

If interested we can share ideas, mail me on blacklyk@gmail.com
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May 21, 2012

AfricansUniteAgainst_

swona
at the moment I am employed and run a business, I employed 3people, I want to employ 6-15 in 5yrs, and as I am thinking, maybe we need to reproduce less kids per house hold, people are giving birth like pigs! do you think before making that baby if he or she's going to get work?
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your comment doesnt make sense,did your parents think before making you if you are going to get work?
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May 21, 2012

dulas6

Mina if I can be funded i culd create more then 10 jobs every week,our weakness tina blacks is "
"CAPITAL"
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May 21, 2012

BonakeleN

@Sowetan Editorial
You wrote: "It says there will be a silver lining to a dark cloud if the government pursues the correct policies."

What 'correct policies' are you referring to?
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May 22, 2012

TheNewFreedomFighter

If anyone is surprised that "business is in trouble" look no further than to blame COSATU and the anti-business labour laws that the ANC and communists have put in place. I mean, have you ever hear of Communists running businesses for profit and yet who do we have in power? Here is Craven's comment after the DA invited Vavi to come and see a youth subsidy scheme working: (source iafrica.com)

"Cosatu spokesman Patrick Craven said it was not policy to engage with the DA.

"Our differences are fundamental. It is not just the wage subsidy.... their policies are all pro-business," Mr Craven said."

So with a powerful trade union that is anti-business how in heaven's name will we ever create jobs. The unions are like parasites to business. The more successful the unions become the more they k i l l the host, and by all accounts business is dying fast in SA.

Go on, vote ANC for a more prosperous SA.
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May 28, 2012

mambaaai

@TheNewFreedomFighter
If anyone is surprised that "business is in trouble" look no further than to blame COSATU and the anti-business labour laws that the ANC and communists have put in place. I mean, have you ever hear of Communists running businesses for profit and yet who do we have in power? Here is Craven's comment after the DA invited Vavi to come and see a youth subsidy scheme working: (source iafrica.com)

"Cosatu spokesman Patrick Craven said it was not policy to engage with the DA.

"Our differences are fundamental. It is not just the wage subsidy.... their policies are all pro-business," Mr Craven said."

So with a powerful trade union that is anti-business how in heaven's name will we ever create jobs. The unions are like parasites to business. The more successful the unions become the more they k i l l the host, and by all accounts business is dying fast in SA.

Go on, vote ANC for a more prosperous SA.

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Sadly what you say is correct. this has all been seen bfore in the world. one example is Britain and their unions, did exactly what you describe in some sectors such as car manufactuing and mines




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