JOHANNESBURG. — While South Africa’s unemployment rates remain high at 27,7 percent, a number of opportunities to generate an income may exist, particularly in the informal sector.
Frank Lenisa, director of credit bureau Compuscan, offers insight as to why entrepreneurship and job creation within the bottom end of the market may present a viable solution to the crisis that the country currently faces.
Quarter-on-quarter, Compuscan’s statistics continue to reveal a negative outlook for consumers as they struggle to manage their debt and stay afloat financially during these challenging economic times.
In addition to high levels of unemployment, a subpar schooling system and weakened economy, our country is faced with an array of socio-economic problems that make it difficult to identify the way out of this predicament.
With unemployment high on the private and public agenda, education seems to be repetitively presented as a Band-Aid solution.
Compounding the slow progress which has been made to educate our youth, we are in need of rapid intervention by means of mobilising entrepreneurs to build sustainable businesses and create jobs on a macro-level.
By depending less on the education system as a lifeboat — without neglecting its importance — and shifting our focus to empowering entrepreneurs, these individuals could improve their disposable income and, in turn, empower others. To do so, we need to realise that the developmental aspect of credit is critical to the survival of small, medium and micro enterprises (SMMEs).
According to our bureau’s latest commercial credit information, approximately 404 000 sole proprietor/commercial loans are currently listed as open on the bureau. The total value of these loans is recorded at approximately R17,6-billion. We noted an 8 percent increase in the opening of this type of account from Q1 2016 to Q2 2017 and a significant 31,6 percent increase year-on-year.
Rather positively, this points to the fact that more…