PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
NewAgeAfrican
 
Comments: 4
Article views: 495
 
 
Latest Badges:

 
View all NewAgeAfrican's badges.
 

Capitalism, Africa style

01 August 2013, 09:04

In recent years, in part due to the global economic downturn, a fundamental shift in perspective in the global investment and corporate community has raised a new awareness of the role of corporations and investors in the wellbeing of the global community.

As a result a new re-evaluation has emerged with regards to the fundamental guidelines of capitalism and especially the relationships between the social and profit drivers in an organisation. This new approach to social development has manifested in a large number of socially responsible businesses and social-purpose enterprises that balance scale with quality, financial sustainability with social impact and community requirements with rapid growth (Goldman Sachs Foundation, 2003).

In essence on a global scale capitalism is evolving and a number of new initiatives have been proposed as the new model for capitalism including the New Age Capitalism as presented in the Harvard Business Review, Virgin Unite’s Capitalism 24902 or Social Capitalism as presented by Forbes. All these new forms of capitalism have the common denominator where the focus is removed from the individual pursuing his/her own benefit at any cost to a new system where the needs of the greater community is brought into balance against the rights of the individual.

What I recently discover through our business and social ventures in the low-income areas of South Africa, in particular in Soshanguve where we base our operations, is that a similar social-orientated capitalistic view is already in place in these areas. This observation was further substantiated recently when I took part in Leaders Quest, a non-profit initiative that brings executives from the first-world to the third-world to improve their understanding of the challenges faced and to enable the exchange of ideas and knowledge. As one of the representatives of entrepreneurs in South Africa I spent an afternoon discussing these conditions with a big part of the executive team of the European Aeronautical, Defence and Space agency (the company that owns Airbus amongst others). The main feedback they provided is that these communities in South Africa were miles ahead with the implementation of the exact same capitalistic principles that combines social and business they are currently striving to implement in the first world. The most common paradigms of this low-income approach in my humble experience is firstly the fact that small business owners in these communities are aware that the community in which they operate is their biggest stakeholder and they go out of their way to accommodate the will and needs of their community and secondly that these small businessmen recognise that their success is directly as a result of the support from the community and they therefore are willing to allow the community to benefit directly from their success.

This approach has been proven on a micro-level and to some extend in larger corporations, especially in the agricultural industry with the Fair-trade coffee and Mauritian sugar industries as prime examples. With the world desperately looking for a new approach for the corporate environment to prevent a repeat of the effects of capitalism gone wrong such as the economic recession these humble micro economies might hold the answer.

I therefore think it is possible that the community based form of capitalism practiced in low-income areas of South Africa might hold the key to achieving the marriage between profit and social that the first-world is looking for. Our own attempt to learn from this approach resulted in an initiative that provides educational support to local learners free of charge every morning while operating as a profitable business during the afternoon and evenings. I believe this combination of solid business principles with commitment and cooperation with the community and increased ownership and buy-in from our staff members provides a great case study of what can be achieved when these different principles are combined.

Should we as South Africans then not take a moment to reconsider our frantic push towards a Western model that the West itself is busy abandoning and look towards our own African way of doing things and have the West follow us for a change?

@NewAgeAfrican

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.
 

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
4 comments
Add your comment
Comment 0 characters remaining

Read more from our Users

Submitted by
Mark Whelan
Down with Racism

I abhor racism. Always have, always will. Interestingly, in my recent past, I, too, have been accused of racism. Read more...

0 comments 619 views
Submitted by
Keita
The human face of christian spite

I can’t tell you how often I hear this, both here on News24 and elsewhere. Rational arguments have been made to indicate how wrong those statements are, but it seems they fall on deaf ears. Read more...

137 comments 1917 views
Submitted by
Greg Martino
Does God answer our prayers?

To supplement to our insufficient income, myself and my wife are occasionally given the opportunity to work various trade shows at which my wife's company exhibits at. Read more...

117 comments 1686 views
Submitted by
Ryan_Ruffgrain
Mario’s here. Nothing else matter...

The above title seems an apt proviso for this piece. Of course, there were other matters of some incident in the Premier League this weekend.  Read more...

0 comments 366 views
Submitted by
Tracy Gilpin
You're never too old to spy

So why is it easier to spot a Voortrekker bonnet at an EFF rally than a South African spy thriller on a shelf? Read more...

3 comments 441 views
Submitted by
Vusumuzi Shongwe
Sorry for you, Mr Basson

Mr Adriaan Basson could I say respectfully to you Sir, why are you interfering in the issues of the African National Congress. Read more...

61 comments 2955 views

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Up to 40% off fashion accessories

Save up to 40% on selected handbags, purses, watches, jewellery and more. Offer valid while stocks last. Shop now!

Save up to R2000 on top electronics

Get every day mind bowing savings on top electronics. Offer valid while stocks last. Shop now!

As seen on TV - New book releases at only R199 each

Get mind blowing book savings on new titles. Offer valid while stocks last. Shop now!

Save up to 50% on Women’s month treats!

Celebrate the awesome women in your life with awesome treats like beauty products, fashion accessories, bestselling books, electronics and more. Offer valid while stocks last. Shop now!

Up to 60% off - clearance sale!

Save up to 60% on appliances, books, electronics, toys, movies and more. Offer valid while stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on your iPhone Get News24 headlines on your iPhone.

SMS Alerts Get breaking news stories via SMS.

Blogs Your opinion on you, me and everyone.

Calais Website keywords automated by OpenCalais.

 
Interactive Advertising Bureau
 
© 2014 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.