La bête noire l'esprit d'entreprise
I recently read an article in the Financial Mail on Tito Mboweni and his take on black economic empowerment as it stands today.
To a large extent, I fully agree with Mr Mboweni's stance on how BEE has come to be conducted, both bad black and white partners have made a noble concept very disingenuous.
Having read this article, I find myself feeling quite distraught.
 |
| Common Stock Certificate |
Having read this article, I find myself feeling quite distraught.
According to the article - Tito Mboweni, the ex central banker of South Africa was declined a number of funding requirements to start various businesses.
This was unfortunately not the part that distressed me - his assertion that giving security or collateral for a business loan, where you put up personal wealth is a fools errand.
"I said you can’t pledge private wealth for business. They are two separate things. What we have here is a radio licence; if it does not work, you take the business."No-one will seize my private wealth. They think I am a fool," says Mboweni
Well, as I have stated before - entrepreneurial activities require you to be a fool. Having that innate belief in your idea, that you are willing to stake the proverbial family farm on it, is what defines an entrepreneur.
As the popular English axiom states - "nothing ventured, nothing gained"
Having being a political mover and shaker, Mr Mboweni may be forgiven for forgetting the fundamental need of ensuring that an entrepreneur is in it with the funder - staking more than just his reputation to achieve success in a venture.
Collateral is the only viable means of ensuring and avoiding moral hazard for the funder.
The fundamental of capitalism is the requirement of capital to get started, the same thing that keeps the rich getting richer, as their capital keeps on working for them. And the poor getting more marginalised, as lack of capital keeps them under.
Capital and enterprise do not always sit on the same side of the fire, the key trait of an entrepreneur is to convince those with capital to part with it, in order that (s)he grows it for them, making the capitalist wealthy and in the same instance ensuring that (s)he becomes rich.
Funders fund the jockey not the horse, no matter the lineage of the beast, it is not as important as the ability and proven track record of the jockey.
Therefore, fundable business plans are nothing without a jockey that is reliable and proven.
In my experience, I have noticed that due to our lack of opportunities over the previous generations, us black entrepreneurs are easily seduced into thinking that we should build another Old Mutual - starting our New Mutual at equal footing to the Old.
Small successes repeated over the years, makes one a viable entrepreneur to fund, with a clear track record in business. This is what any funder is looking for. Someone to work with, someone who also will win when they win, someone who has a great incentive to win, as they also have their collateral tied into the success of the business.
I am sorry, I am a black entrepreneur, proud of it, besides my credit card and overdraft facilities, I have never been funded by a bank, and actually think it will not happen. Consequently, I was also declined by the National Youth Development Fund and the National Empowerment Fund, all for different opportunities and at different times in my 10 years in business.
Collateral is the only viable means of ensuring and avoiding moral hazard for the funder.
The fundamental of capitalism is the requirement of capital to get started, the same thing that keeps the rich getting richer, as their capital keeps on working for them. And the poor getting more marginalised, as lack of capital keeps them under.
Capital and enterprise do not always sit on the same side of the fire, the key trait of an entrepreneur is to convince those with capital to part with it, in order that (s)he grows it for them, making the capitalist wealthy and in the same instance ensuring that (s)he becomes rich.
Funders fund the jockey not the horse, no matter the lineage of the beast, it is not as important as the ability and proven track record of the jockey.
Therefore, fundable business plans are nothing without a jockey that is reliable and proven.
In my experience, I have noticed that due to our lack of opportunities over the previous generations, us black entrepreneurs are easily seduced into thinking that we should build another Old Mutual - starting our New Mutual at equal footing to the Old.
Small successes repeated over the years, makes one a viable entrepreneur to fund, with a clear track record in business. This is what any funder is looking for. Someone to work with, someone who also will win when they win, someone who has a great incentive to win, as they also have their collateral tied into the success of the business.
I am sorry, I am a black entrepreneur, proud of it, besides my credit card and overdraft facilities, I have never been funded by a bank, and actually think it will not happen. Consequently, I was also declined by the National Youth Development Fund and the National Empowerment Fund, all for different opportunities and at different times in my 10 years in business.
On another note - my French lessons are progressing. Hopefully the titel makes sense.
Comments
Post a Comment