Khoza calls for visionary leaders
AN ABSENCE of visionary leadership is a major stumbling block for entrepreneurs in South Africa, Nedbank chairman Reuel Khoza says
"Leadership at all levels should demonstrate a commitment to creative freedom," he told delegates to a micro-finance conference in Sandton yesterday.
Small, medium and micro enterprises (SMMES) should form the backbone of South Africa's economy.
"Big business and the state cannot provide enough jobs," he said.
Entrepreneurs in the informal sector experienced police harassment. Within 18 months of existence, many SMMES "fall off a cliff into an abyss".
"Some struggle on as subsistence businesses. They do not grow beyond that."
A lack of finance was not necessarily the key obstacle. Finance was in fact more available in South Africa than in many other countries. The bigger problem was the lack of an enabling environment.
According to the World Bank, South Africa was one of the most difficult countries in which to do business.
In Singapore the state required three simple procedures, which took three days, and cost 0.01% of per capita income, to start a business.
In South Africa, five complicated procedures were needed. These took 19 days and cost 0.3% of income, said Khoza.