So many concerned organisations have related a possible solution to South Africa’s Massive Unemployment which has remained high at 27.7% but Frank Lenisa, director at credit bureau, Compuscan believes there’s still more t be done.
Lenisa believes that whilst the unemployment rate remains incredibly high, a number of opportunities to generate an income still exist, particularly in the informal sector.
In its quarter-on-quarter statistics, Compuscan revealed that there is still a negative outlook for consumers as they struggle to manage their debt and stay afloat financially during current challenging economic times.
With South Africa’s Massive Unemployment high on the private and public agenda, education seems to be repetitively presented as a band-aid solution, said Lenisa.
“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).”
Citing Compuscan’s latest commercial credit information, Lenisa said that 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.
There was an 8% increase in the opening of this type of account from Q1 2016 to Q2 2017 and a significant 31.6% increase year-on-year, according to a report.
“Rather positively, this points to the fact that more individuals might have been exploring alternative means of generating an income,” said Lenisa, adding that the commercial loans, if managed well, may offer sole proprietors an opportunity to satisfy basic economic needs within their immediate communities, conjointly creating jobs that will enable further collaborations and partnerships.
“As it stands, plenty of entrepreneurs are in need of more than developmental funding. Further to accessing the necessary funds to establish a business, the success of an entrepreneur is heavily reliant on professional guidance (mentorship) and access to basic business management tools.
“After all, it is widely recognised that a high number of entrepreneurs and their startups fail within the first five years following initiation.”
Skills That Can Fetch You A High Paying Job In South Africa
While government looks into ways to cut down the rate of South Africa’s Massive Unemployment, citizens are urged to take up skill that attracts high pays.
The information technology recruitment company released this information, saying there was a dire shortage of all specialised ICT skills in the country.
“Highly skilled and experienced big data analysts, data science experts, data modellers, machine learning boffins as well as artificial intelligence professionals are becoming as hard to find as hen’s teeth,” said Barrick the divisional managing director of Insource ICT.
“We all know that there is a dearth of skills in data analytics but there seems little that can be done about the situation in the short term because the majority of students entering universities don’t have the foundational skills in mathematics and science to enter this field,” she said.
Speaking further on the South Africa’s Massive Unemployment, the recruitment expert also said that the primary reason for the shortage was that those with these skills are rushed by the big five banks, consulting firms, and JSE listed companies as fast as they were graduating.
“Big data has become a panacea for many of the systemic ills that are besetting the South African economy because it is seen as a cure-all. Because – if correctly applied – big data can assist companies to maximise their resources more than any other discipline, these men and women are in huge demand not just in the business world but also in the scientific field which includes medical research and big pharma,” Barrick said
“The highly skilled specialists are also demanding large salaries because of the scarcity,” she added.