Whenever we talk of unemployment, we tend to miss what primarily runs economies and employs people: commercial products by those people called entrepreneurs.
These products then employ human skills. So therefore, for more unemployed human capital to be utilized in the economy, we need more and new entrepreneurs to introduce their product ideas. Economic products lead in controlling the employment of human skills.
The two major problems in South Africa in terms of creating employment (creating employment also should be known as creating economics products) are:
- We do not own most of the products we consume. Foreign investment enjoys our consumption. Not us. We need local owners of various consumable brands, which then will secure employment.
- Our funding models are holding us back. A case where government should come in. It’s understandable that banks require collateral.
Given our history where only a minority was the only one allowed to acquire and create economic products. When freedom opened up, that small concentrated economy had to fit the previously suppressed majority.
We find ourselves at a point where the majority of citizens (now including white and black) don’t have any collateral to secure funding in creating economic products.
Such a situation makes sure we do not move anywhere in creating jobs.
Collateral funding only = no creation of new products = no creation of jobs.
The “proven-concept” requirement for funding guarantees there are no new products, therefore no jobs.
This is where government must come in and introduce no collateral funding models. And stop favouring only labour intensive projects.
In closing, employment is informed by creation and innovation of economic products.