<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote"><i>Originally posted by bb_matt</i>
<br />I know what forced this to come into being - BEE - it has effectively created a thriving small business market from people sick of having no job security.
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I don't agree that BEE/AA is the major cause of this: The current lack of job security in 'traditional' salary jobs is a <b>global</b> phenomenon (and trend) in every other industrialised and/or Western nation in the world, in Asia, Europe, America etc., and would have happened here to a large degree even without BEE/AA. In previous generations it was generally the norm to work at only one or two companies your entire life (the most extreme case being Japan), but all this has turned around, for various reasons, and any bi-directional "loyalty" that may have existed between companies and their employees disappeared as managers have become increasingly profit/bonus-hungry (increasingly willing to eagerly let people go as "unnecessary costs" at any stage), and people have likewise responded by increasingly looking out for themselves only, trying to land the most lucrative job they can. This also created a cycle where companies have become decreasingly willing to spend R&D money training graduates because once they have "a year or two experience" they up and leave as soon as they can to another company. In the past companies could more comfortably spend time/money training graduates because that employee would likely stay, thus it was seen as an <i>investment</i>. (Perhaps related to this trend is that these days the biggest proportion of the unemployment burden in industrialized nations is on the youngest people in the workforce.)
All these trends have been happening world-wide during the past 30 or 40 years, and were well underway even before BEE+AA existed. Unemployment rates in all industrialised nations (except the US) have been steadily rising since the 60s, and the increased unemployment also leads to less job security. But yes, BEE+AA also help "push" people into becoming entrepreneurs rather. The positive business climate created by the current government, restructuring, as well as DTI efforts to encourage SMME growth, have also all contributed to an increase in new company registrations recently.
A friend of mine who is a financial manager lives in the UK and wants to start his own business precisely because there is "no job security these days". It's not just a SAn thing. And many people I know who are starting businesses (including myself) left very stable jobs to do so, not AA-threatened jobs. Often there are other reasons.
I have to agree that this country is really full of entrepreneurial opportunities for anyone with a bit of imagination and willing to work hard at an idea, especially with the economy growing increasingly rapidly. I can't stand graduates who lament that there are "no opportunities here", and then proceed to sit around living at their parents place for a year or so feeling sorry for themselves and spending most of their time ... socialising. Why not spend that time building something? Build a product and try to sell it? Even if it fails you've gained valuable experience which will help you find a job and be better at it. They say there are "no opportunities", but every time someone <i>else</i> has a business idea and makes it work (and it happens every day), that *was* an opportunity that they missed. Opportunity never "comes knocking", but if you are always looking for it you'll find it.
Part of the problem is South Africans do not really have an "entrepreneurial spirit". In the US, 1 in 12 people try to start a business at some point in their lives (most fail, but most keep trying, always on the look-out for new ideas). This is changing though .. more and more SAns are taking risks and starting businesses. I guess people weigh the perceived risk (i.e. lack of job security) vs gain of a salary job (which yes, includes BEE+AA) against the perceived risk vs potential gain of starting their own business, and the former is becoming a less attractive alternative to the latter.
Sorry for the long post :/