Dice loaded against black women in business

A dentist by profession, she started her business supplying medical equipment to state hospitals nine years ago.

In spite of her impressive professional qualifications – a Medical University of SA dentistry degree, an honours degree from Stellenbosch University and a masters from the University of Pretoria – she battled to find a bank or institution willing to consider her business plan, never mind give her a loan.

Even state funding entities set up to advise and finance small and medium enterprise start-ups were not interested, she says.

“Culturally, you’ve got problems.

“In Africa, the woman is regarded as someone who has to take care of her family full time and nothing else.

“And banks do not believe in funding entrepreneurs who are female.

“When you go to the banks, they do not believe you are capable of doing it.

“Men are the only people who can succeed in running a business.

“We are supposed to be employed or in the kitchen.

“When you come with a business plan to a bank they resist, they don’t believe it will succeed.”

Eventually a bank agreed to give her a R30000 overdraft.

“They were better than other banks which rejected me altogether. They didn’t even want to hear my story.”

Mzizana is outraged that institutions the government started with the express purpose of financing small businesses, and which are forever trumpeting their achievements in this area, showed her the door as quickly as any of the commercial banks.

“These are organisations that claim to be helping women’s businesses. They are actually not doing that at all.

“That’s why there are no women businesses that are successful. They open and within one year they’ve closed down.

“If you keep going for five years you’ve done very well as a woman.”

via Dice loaded against black women in business – Business LIVE.

Jobless rate hits 25,7% – labour recession

SA’s unemployment rate climbed to 25,7% in the second quarter — its highest in seven years — as an influx of job seekers into the labour market surpassed job creation.

Analysts were shocked at the news from Statistics SA yesterday, which showed the jobless rate leaping sharply from 25% in the first quarter.

Overall, the number of employed people rose by 7000 in the second quarter — a far cry from the number needed to reach the government’s goal of creating 5-million new jobs by 2020.

“We are still in a labour recession,” T-Sec economist Mike Schussler said yesterday. “The economy might be growing but it’s not creating jobs.”

via BusinessDay – Jobless rate hits 25,7% as ‘labour recession’ grips SA

Employment in South Africa

According to the report only 41% of South Africans aged 16 to 64 have any kind of a job, while in China the figure is 70% and in high-growth developing nations like Indonesia and Brazil is around 65%.

The research behind the report found that South Africa’s stringent labour market regulations made it expensive to employ people and that mostly skilled and experienced people were employed. Thus the country is sinking deeper into unemployment. The report calls for allowing young, unskilled and inexperienced people to be employed at lower wages, something current labour legislation prohibits, while labour costs were driving up unemployment.

And, Richard Pike, CEO of one of South Africa’s biggest employment services groups, Adcorp, says militant trade union activism is one of the major contributing factors to South Africa’s high unemployment rates. He also defended the contract employment of 3.9 million workers, saying rising contract employment was not unique to South Africa.

via Labour watch

New earnings threshold to come into effect on 1 July 2011

The Department of Labour has during May 2011 increased the earnings threshold for employees, which exists in terms of the Basic Conditions of Employment Act (“the BCEA”). The threshold has since 2008 been an annual remuneration of R149,736.00 (one hundred and forty-nine thousand, seven hundred and thirty-six rands), which has now been increased to R172,000.00 (one hundred and seventy-two thousand rands).

An employee’s “earnings” means his or her “regular annual remuneration before deductions”, i.e. the employee’s own contributions to income tax, pension, medical insurance and similar payments, but expressly excludes similar contributions made by the employer in respect of the employee. Such remuneration does not include subsistence and transport allowances received, achievement awards and payments for overtime worked.

For employers, the effect of this amendment is that any employee earning more than R172,000.00 per year will now fall outside the scope of certain basic conditions of employment which would ordinarily apply in terms of the BCEA. These affected conditions of employment would accordingly not apply to such employees, unless otherwise agreed to between the employer and the employee.

via New earnings threshold to come into effect on 1 July 2011: a practical reminder – Lexology