Sunday, September 27, 2009

ENTREPRENEURSHIP AND THE AFRICAN EXPERIENCE PART 3

Entrepreneurship in South Africa is tinged with the ideology of classifying the ability of individuals with the pigmentation of one's skin color. Blacks have for centuries been regarded as drawers of water and hewer of wood and only to occupy designated occupations. And, white supremacist propaganda stated that blacks were not attuned to understanding the complexities of business. The spread of the apartheid gospel in 1948 to discourage entrepreneurship in the black community was further aggravated by the introduction of a myriad of legal barriers, which confined blacks in designated areas which were lacking basic social amenities like shopping centers and skills training facilities (Smollen, et al, 1986).



The consequent of the previous policies encouraged and promoted a culture of dependency in the black community throughout South Africa. By implication job creation was viewed as a government's (read white man) burden. As the political views of the previous government spread its tentacles to every fibre of the society of South Africa, they then manifested themselves as impediments that were to prevent blacks from starting businesses, or even thinking of starting employment and wealth creating ventures for themselves. On one hand, the financial institutions and white businesses went along with the policies of the government and failed to assist blacks that demonstrated talent of entrepreneurship.

On the other hand, the white academicians reinforced the notion that blacks are cultural not inclined to business by advancing nefarious theories that ignored particularly the history of black people in South Africa, and Africa in general. This manifestation of the lack of strong business inclination and the culture of enterprise need and entrepreneurship cannot be addressed by the markets because they lack the capacity and the drive to foster such ideals to the black population, only the state can intervene directly.

The 1945 Bantu Urban Consolidation Act recommended that there was no need to encourage the emergence of a Black capitalist class in the urban areas. Black urban entrepreneurs were only restricted to supplying only the daily essential requirements of their community (Smuts, 1986: 25). In spite of that, there were exceptions. The Business Report (2000: 2) reporting on the success of a pioneering Black cane furniture manufacturer Mr. Shikwane, who triumphed against adversity and apartheid humiliation states that: ''During the heights of apartheid blacks were not allowed to own manufacturing businesses in Soweto and other ''White areas''. But Shikwane defied the authorities and started a manufacturing concern in Orlando. However, during the forceful removals and relocation of blacks in early 1970's Mr Shikwane and Mr Kgabo, leather product manufacturers, were forced out of the urban areas. They became the only two successful black pioneer manufacturers operating in the homelands of Bophuthatswana and Venda respectively (Potgieter 1979: 13).

However, the plight of black entrepreneurs has not changed for the better since 1976, when the then Nationalist Party government lifted the ban on the type and the number of businesses that may be operated by blacks. The SA Development Monitor (1998: 9) is of the opinion that the current policies have not yet adequately addressed the demise of the true black entrepreneurs in the township because most township entrepreneurs are long on energy and enthusiasm but short on credentials. They also lack the universal perspective of exploiting the niche markets and the comprehension of markets beyond their neighbourhood. Therefore, the starting point for any policy would be to address the fundamental problems of entrepreneur education before offering added solutions.

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