PLEASE NOTE:

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

 
ab64
 
Comments: 9
Article views: 1356
 
 
Latest Badges:

 
View all ab64's badges.
 

Unemployment and factors of production

12 November 2012, 20:25

Unemployment and the Missing Key Factor of Production

Why does the Government keep promising more jobs for the jobless in South Africa when they know deep in their heart that there will be no improvement of employment in the formal and to a lesser extent in the informal sector until such time they understand and address the 4 factors of production?

Politicians promise that they will create jobs – how? Where will these jobs come from?

The 4 factors of production, Labour, Capital, Natural Resources, and Entrepreneurship are key to the improvement and sustainability of any economy. Although all factors are as important as the other, it must be stressed that entrepreneurship is the vital and most important key to South Africa’s future growth and prosperity.

South Africa is blessed with natural resources and labour, capital is abundant. The only element missing in South Africa is entrepreneurship.

Just try and approach 1 of the big 4 for money to start or expand your own business – impossible.

I have a business which I am trying to expand. I also have 3 employees. The business proposal is thorough, cash flow predictions are conservative, I have a customer base, I am listed as a supplier with 1 of South Africa’s major retail chains but still the banks won’t budge until you have 50% collateral before they extend cash.

How bizarre, so in order to obtain R 500,000 you need to lodge R 250,000 as collateral. Now why would you ask for cash in the first place? I still say that in order to obtain a loan from any bank, you need to give them 20 reasons why you don’t need the loan until they grant you a loan. Please bear in mind that the big 4 annually post inflation beating profits.

Banks are on a self fulfilling mission to tell the public at large that they are there to assist small business – they are not!!

Whilst millions is poured into advertising and sport, banks are missing the point. Why not plough this money into small business.

I approached the DTI for funding, just as frustrating. When I called, the dear lady promised me she would send an email with all the avenues to funding. What a joke? – I received an email with 5 entities which provide funding. It looked like the document was compiled at the last minute and none of them can help anyway.

Now I ask you, how does the small business expand with no access to finance from the formal sector.

Until the South African Government as well as the big banks understand that the only way to grow an economy is through promoting and financing small business thereby creating employment, the jobs problem in this country will only worsen.

Stop promising jobs when you don’t know where they are going to come from for cheap electioneering.

You need to assist small business
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.

 

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
9 comments
Comments have been closed for this article.

Read more from our Users

Submitted by
Lucille Davids
Despicable behaviour from our lea...

The way the so called leaders of our country has been conducting themselves in parliament and rallies is appalling. Read more...

0 comments 479 views
Submitted by
Shona24
Fantastic freaking technology

Breathing in the sea air. Consciously slowing down. Nonchalantly putting my mobile aside to embrace rest entirely.  Read more...

0 comments 298 views
Submitted by
Tman Mjaji
China-Africa relations growing st...

The debate around China-Africa cooperation is not new, it has been widely debated. There are many views around the topic.  Read more...

0 comments 81 views
Submitted by
Victor VanHeerden
What do Malema and the EFF really...

One can learn a lot about organisations’ main policies just by looking at its founding name. For instance a party with the name “Economic Freedom Fighters” leaves no room for confusion, or so you would think?  Read more...

0 comments 466 views
Submitted by
Jerry Rodrigues
The war on Phylloxera in South Af...

At the height of the phylloxera crisis in South Africa, a recommendation was made to the South African government that it should import some phylloxera-resistant American grapevine rootstocks. Read more...

0 comments 95 views
Submitted by
FrancoisFMarais
The big lie called Jacob Zupta In...

The story of Jacob Zupta Inc or the lie of Jacob Zuma, our president is so big it is hard to believe it to be true yet it smacks all ordinary South African citizens in the face. Read more...

0 comments 4704 views
 

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 Android Get the latest from News24 on your Android device.

SMS Alerts Get breaking news stories via SMS.

TV Get us in your home, on your television.

 
Interactive Advertising Bureau
 
© 2016 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.