SA's new era demands risk-takers

28 June 2015 - 02:00 By Jabu Mabuza

The government has talked big in recent weeks about the need to create 100 black industrialists. It's a noble sentiment, but the truth is, you can't go and sit in some policy room and by decree design these industrialists, print them in 3D and ship them out. Entrepreneurs are born, not made. So while the government can create the environment conducive to entrepreneurship - and it must do that if we are to have a hope of addressing unemployment - it also requires individual flair. Entrepreneurs, I should say, make themselves.Of course, it isn't always easy. You need luck, courage, incredible resilience, discipline and hard work.mini_story_image_vleft1Many people see me as simply the chairman of Telkom, but I know something about the long road between entrepreneurship and the chairman's corner office.I had to pay pretty big school fees. I traded in the years when I could have been studying to get a driver's licence so I could go and drive a taxi.We needed the money. From there, I bought my own taxis, and co-founded the South African Black Taxi Association.Next thing, the association's leadership was travelling to Japan to design a better taxi with Nissan and Toyota - which was fit for purpose, safer, with a bigger capacity.Since then, I've worked at South African Breweries, Tsogo Sun, Sphere Holdings and Telkom - so I have a sense of how difficult it is to start and run a business.This doesn't suggest I know all the answers, but I do know what does not work.People today bemoan how difficult it is for entrepreneurs to get a foothold.There are certainly still obstacles, but the fact is, the environment in South Africa has never been more conducive for new ideas and new innovations - provided you are willing to take the risk.Real entrepreneurs need a certain level of hunger.Real entrepreneurs don't think they're entitled to something just because of where they are.A lot of people seem to expect that because the government is now black, somehow all black people are guaranteed or entitled to a certain degree of success in business and certain positions.But real entrepreneurs don't think like that; they pull themselves up by their bootstraps.What I have learnt over the past few decades in business is that our choices have consequences, and we must take responsibility for those consequences.In my business, telecommunications, we have made certain technology choices that have had an impact on jobs.Industry is becoming more automated - which might be good for the bottom line, but it doesn't necessarily create jobs.The only way we can truly confront the major challenges of unemployment, poverty and inequality is to get growth in the economy. Now, we've had growth in the past, but it's been jobless growth, so today we're sitting at the low end.block_quotes_start We must invest in skills and in our infrastructure. And we must guide policy and investment at all levels to support young African business block_quotes_endAt this point, we need entrepreneurs who see a gap, are willing to take a risk, and see where it works out.Don't get me wrong: I'm not saying staff are not valuable. Every business needs accountants, for example, but what South Africa really needs are entrepreneurs who will take risks.Sure, many of them will lose money, but many more will also make money. And, crucially, they will create businesses, which create jobs, which pay taxes, and so on.Frankly, I don't see how else we are going to do it.But at the same time, we need to recognise that every business must evolve.If you look at Telkom, 20 years ago it was the dominant communications company in this country, and people often mocked it for being too dominant.But we struggled to evolve.And the tough part comes when you as a business leader have to make a call that affects people's lives, and their jobs.Unfortunately, this is necessary if we are to be productive in a competitive way.At Telkom, we see that customers want more cheap data, they want free Wi-Fi, and they're not really willing to pay for voice any more. Our voice business today is a declining fraction of what it was decades ago. So, like every telecoms company, we have to change our business model, and that means tough choices.A business person wakes up thinking: "How can I make a sale; how can I be more efficient?"mini_story_image_vright2If sales go up, you have to increase capacity. And that's when you start investing in new facilities and hiring and training more people. More jobs, more skills and more taxes flow from businesses that work.So where exactly are the opportunities?Well consider this: in Africa we have the youngest population in the world. In 2040, the African workforce may be larger than in China and India, and it will be concentrated in the cities.This presents an upward consumption trajectory with immense entrepreneurial opportunities. Hundreds of millions of young people will need food, shelter, energy, information and communication technology and software, education (especially online education), health, financial services, transport and entertainment.I see an increase in young entrepreneurs from other continents meeting these needs. Do they face the same challenges as young local entrepreneurs?We need more young African entrepreneurs to create businesses that cater for this market. We need African entrepreneurs to be more visible - as role models and to attract funding. We must invest in skills and in our infrastructure. And we must guide policy and investment at all levels to support young African business.The trick is to make sure that we make the right choices for the right reasons, building our economy by encouraging people to start their own businesses, and giving them the rope to try, and fail, and try again.Mabuza is executive chairman of Sphere Holdings, chairman of Telkom and president of Business Unity South Africa..

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