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03 August 2021 | Story Prof Brownhilder Neneh | Photo Supplied
Prof Brownhilder Neneh is an Associate Professor and Academic Head (HOD) of the Department of Business Management, University of the Free State.

Opinion article by Prof Brownhilder Neneh, Associate Professor and Academic Head (HOD) of the Department of Business Management, University of the Free State.


South Africa was recently rocked by the worst violence, riots, and chaos that has devastated the business community. An estimated 40 000 businesses were affected, costing the country about R50 billion in lost output and endangering around 150 000 jobs. It is important to stress that the situation regarding riots and looting in South Africa is not a once-off phenomenon, because in the past few years, South Africa has witnessed rioting and looting as one of the reoccurring events happening in the country, which often left big and small businesses to bear the burden as they pay the price for the actions of angry citizens. The aftermath of the Zuma imprisonment has once again put immense pressure on small and big businesses that were already disproportionately struggling with decreasing revenue and dismal forecasts of earnings due to the continuing COVID-19 pandemic and lockdowns. The losses have had a devastating effect on particularly small businesses, which are typically not insured against damage during protests, and do not have much cash reserves at their disposal. Some small business owners’ years of hard work and entire life savings were completely wiped out overnight, putting the reopening plans of some on hold and completely shutting down others. 

Given that riots and protests are not unusual in South Africa, some people on social media have argued that South Africa is a volatile country when it comes to riots and protests, and that small businesses should have anticipated such risks and should have made an effort to obtain business insurance. A critical question to ask is whether all small businesses can afford insurance? In most cases we expect the answer to be ‘no’. This is because small businesses operate under various difficult circumstances, such as liabilities of newness, smallness, poorness, and lack of access to external financing. Nonetheless, it is important to educate small businesses about the importance of getting insurance, especially any form of insurance that covers their core assets.  But more importantly, what needs more insight within the South African context, is a critical discussion on how small businesses can minimise losses incurred during riots and bounce back from external shocks.

Many uninsured small businesses might not reopen unless government helps them

Depending on the extent of the damage across the different businesses affected during the recent protests, it could take up to 18 months to reconstruct the malls and for businesses to become fully operational again. This means that many of the small businesses might have to temporarily change their business location or relocate completely. The major problem with this strategy is the risk of paying double rent, both to the damaged mall as well as at the new location. The law does not provide for these SMEs to stop paying rent to the damaged mall, regardless of whether they want to relocate.  In addition, most of the assets that these businesses had, such as furniture, equipment, inventory, and debtors, were destroyed. This is a double negative, which implies that they have lost almost all of the assets they could use as collateral to obtain loans from financial institutions, as well as having to replace these assets.

Many of these small businesses that were not insured and have very little or no cash reserves may not be able to reopen their businesses, unless they receive assistance from the government. The South Africa government and the entire civil society have come out to condemn these barbaric actions, and have put in place some measures to redress the situation and bring stability to the country. As part of the recovery strategies, the government funds allocated to small businesses through its different departments, such as provincial development corporations, the IDC, and national youth funds, should be used to provide interest-free loans to those small businesses that were profitable before the looting crisis. Government should also consider paying business rentals to the damaged malls until these malls reopen.  Tax incentives for some of these businesses for a certain period of time is another option to be explored. Likewise, unemployment funds should be made available to pay their employees until they are fully operational again.

Within the context of entrepreneurship, resilience – which is viewed as the capacity of the business to recover, survive, or grow quickly following a crisis – is one of the capabilities that small businesses can deploy. While small businesses are often regarded as less resilient because of their limited resources, this liability makes them more flexible and adaptable in the face of adversity. Small businesses can become more resilient and less vulnerable to crises by developing an anticipated and containment mindset. An anticipated mindset entails continuous identification of all possible problems and emergencies, while a containment mindset is about embracing flexibility and adapting when responding to crises (conceptual slack), developing capabilities to deal with losses, and making a commitment to resilience. Small businesses can achieve these mindsets by undertaking training in metacognitive awareness, which entails developing coping strategies to respond to uncertain events, developing adaptive thinking to identify and recognise opportunities in an uncertain and dynamic context, and changing responses and strategies according to changes in the environment. Small businesses can also develop resilience by investing in and building resources. These resources can range from social resources (e.g., support from networks of family and friends, business partners); economic resources (e.g., personal savings, stokvels, and financial institutions); and personal resources (e.g., self-determination, inner strength, adopting a problem-solving mentality, emotion regulation, and self-confidence). As a short- to medium-term strategy, the South African government – through its Ministry of Small Business Development – should partner with higher education institutions and private organisations to create nationwide workshops and seminars on how to develop resilience and overcome liabilities of newness, smallness, and poorness.

Small businesses are the panacea for addressing poverty, unemployment, and inequality

Small businesses should also foster cooperative relationships, as these have proven to help entrepreneurs overcome the lack of resources by sharing business resources (equipment, business space, and funds). This ultimately transforms competitive differences into potential growth opportunities for businesses. This is one of the most important business practices adopted by many immigrant businesses for survival. Those who need to start from scratch are encouraged to develop their businesses, using what they can create with the set of resources (computer, land, skills, money, car) at their disposal, no matter how small. Given that the future is unpredictable, instead of defining a specific plan to reach a goal/objective, such entrepreneurs should focus on what means are available to them now. Most successful entrepreneurs around the world – and particularly in Africa, where entrepreneurs are usually constrained by limited resources and support structures – will tell you that they started their businesses with very limited or only one resource that they had at their disposal. It might be quite difficult and painful to undergo the cycle again, so entrepreneurs should tap into their inner grit and remember that although they are starting from scratch, this time around they are wiser and more experienced, which will ultimately translate to higher achievements. 

In conclusion, small businesses are the panacea for unleashing and addressing the triple problem of poverty, unemployment, and inequality that South Africa is currently facing. So, if the government is intentional about enhancing the creation, survival, and sustainability of small businesses, it becomes critical that they create an enabling environment that significantly minimises external shocks. The South Africa government should also put in place clear short- and long-term goals to address the causes and issues that give rise to riots and provide practical solutions to transform the country. The South Africa government should also partner with civil society and the media to spread awareness about the negative impact of destructions during riots and protests.

News Archive

Volksblad: Moshoeshoe Memorial Lecture
2006-05-27

27 Mei 2006

Moshoeshoe het mense saamgebind
KONING MOSHOESHOE kon bewys dat verskeidenheid ’n bindende eienskap kan wees. Dit blyk ’n sleutelbeginsel van sy leierskap te wees – en dit is nie ’n maklike een om te begryp nie.

Jy bereik die grootste eenheid tussen onderskeidende entiteite waar jy relatief vrye ruimte aan hulle gee om hul eiesoortige kenmerke na vore te bring.

Dít blyk uit prof. Njabulo Ndebele se gedenklesing oor koning Moshoeshoe.
Lesotho; het; onder Moshoeshoe se leierskap mense van verskeie dele van die subkontinent gelok.
Dié mense het hierheen gevlug van die verwoesting wat as lifaqane bekend geword het toe Shaka sy koninkryk met militêre onderwerping verstewig het.

Ndebele het gesê daar is algemene ooreenkoms dat die oorloë wat hieruit gespruit het, die maatskaplike grondslae van talle samelewings in Suider-Afrika geskud het.

“Dit was in dié konteks dat Moshoeshoe leierskap getoon het.”
Prof. Frederick Fourie, rektor en visekanselier van die Universiteit van die Vrystaat (UV), het gesê die lesing vorm deel van ’n groter debat oor leierskapmodelle, veral die konsep van Afrika-leierskap, en die voortgesette diskoers oor nasiebou en versoening.

Die Moshoeshoe-projek is in 2004 aan die UV begin om met Suid-Afrika se eerste dekade van demokrasie saam te val.
Die projek was deel van die UV se eeufeesvieringe in 2004.
Met dié projek word geprobeer om ’n groot Afrika-leier te vereer en die UV se verbintenis tot transformasie te toon sodat ’n ware inklusiewe en nie-rassige universiteit geskep kan word.

“As die stigter van die Basoeto-nasie, word daar wyd erkenning aan koning Moshoeshoe vir sy buitengewone leierskapstyl gegee.

“Diplomasie, versoening en vreedsame naasbestaan is van die kenmerke van sy leierskap, soos getoon in sy pogings om verskillende groepe in een nasie te verenig,” sê Fourie.

KONING MOSHOESHOE, een van Afrika se eertydse groot leiers. Hy is meer as 130 jaar gelede dood. Foto: verskaf

Waarde van openbare spraak ‘nou bedreig’
AANDUIDINGS bestaan dat die waarde van openbare spraak wat hoog deur koning Moshoeshoe van Lesotho op prys gestel is, nou onder ernstige bedreiging kan wees.

Om dié rede dra hy die koning Moshoeshoe-gedenklesing op aan al dié mense in Suid-Afrika en elders wat die moed het om hul oorwoë mening uit te druk oor belangrike sake wat die samelewing in die gesig staar, het prof. Njabulo Ndebele, visekanselier van die Universiteit van Kaapstad, gesê.

Ndebele, wêreldbekende skrywer, het gesê dié lesing kom op ’n kritieke punt in Suid-Afrika se nuwe demokrasie.
Dié lesing, om die buitengewone nalatenskap van een van Afrika se groot leiers te eer, is eergisteraand op die kampus van die Universiteit van die Vrystaat (UV) gelewer en het ’n staande toejuiging deur ’n groot gehoor uitgelok.

Ndebele het gesê die mense wat hul menings uitdruk oor belangrike sake, kan rubriekskrywers, redakteurs, kommentators, alle soorte kunstenaars, akademici, koerantbriefskrywers, nie-gewelddadige optoggangers met plakkate en strokiesprentkunstenaars wees “wat ’n spieël voor ons oë sit”.

“Selfs wanneer hulle dit waag op heilige gebied, soos sommige strokiesprentkunstenaars onlangs gedoen het, herinner hulle ons net dat selfs die heilige misbruik kan word vir doeleindes wat min met heiligheid te doen het.

“Dit is hul manier om ons te help, dalk meer diepsinnig as wat ons besef, om daardie einste ruimte van heiligheid in ons lewe te bewaar.

“Hulle verdiep ons insigte deur ons begrip te verdiep.
“Dit is gepas om hul dapperheid te vier,” het Ndebele gesê.
“Hulle herinner ons dat leierskap nie al is wat ons doen wanneer ons in ’n sekere magsposisie geplaas is om ’n organisasie of ’n sekere instelling te stuur nie.”

Hy het gesê onder die mense wat gevier moet word, sluit hy nie dié in wat deur haatspraak ander aanhits om geweld te pleeg; teen; mense; wat hul andersdenkende menings lug nie.

“Dit is nie met dapperheid dat hulle aanhits nie, maar weens hul toevlug tot die narkotiese beskerming van die skare.”

Mense voel glo ál kwesbaarder
Vise-kanselier lewer Moshoeshoe-gedenklesing
’n TOENEMENDE aantal hoogs intelligente, sensitiewe en toegewyde Suid-Afrikaners oor die klas-, ras- en kulturele spektrum heen bely dat hulle – soos nog nooit tevore nie – onseker en kwesbaar voel sedert 1994.

Só het prof. Njabulo Ndebele, vise-kanselier van die Universiteit van Kaapstad, gesê in die Universiteit van die Vrystaat (UV) se eerste koning Moshoeshoe-gedenklesing.

Die onderwerp was Reflections on the leadership challenges in South Africa.
Wanneer ontembare optimiste beken hulle voel dinge is van stryk, versprei die naarheid van angs. “Dit moet iets te doen hê met ’n ophoping van gebeure wat die gevoel van dreigende inploffing oordra.”

’n Gevoel heers dat Suid-Afrika ’n baie komplekse samelewing het wat liewer eenvoudige, gesentraliseerde beheer voortbring in die hoop dat dienslewering dan beter en vinniger gedryf kan word. Die kompleksiteit van beheer word dan in ’n enkele struktuur van gesag gevestig, eerder as in die afgewentelde strukture soos wat in die Grondwet beoog word.

Dat die afgewentelde strukture nie hul grondwetlik-gedefinieerde rolle verwerklik nie, moenie toegeskryf word aan die mislukking van die beheermeganisme nie.

“Dit is te vroeg om te sê dat wat ons sedert 1994 bereik het, nie gewerk het nie,” het Ndebele gesê.
Dit lyk of ’n kombinasie van omstandighede tot die “gevoel van ontknoping” lei.
“Ek wil dit vermy om te sê: ‘Kyk na Khutsong’, asof u sal verstaan wat ek bedoel wanneer ek sê u moet na Khutsong kyk.”
Sulke kennis lei tot wanhoop, want dit roep ’n werklikheid op wat só oorweldigend is dat dit fatalisties kan wees.
Ndebele het gesê niks kon meer vreesaanjaend wees as toe ’n komplot van die Boeremag oopgevlek en sekere Boeremaglede aangekeer is nie.

Sekere Boeremaglede het van ’n maksimum-sekuriteit-tronk ontsnap. “Sover ek weet, is hulle nie weer gevang nie.
“Wat is gedoen om die gaping te oorbrug?” was een van sy vrae hieroor.
“Van só ’n belangrike saak weet die publiek nie baie nie. Die karige kommunikasie kan die gevaarlike boodskap uitdra dat óf niks gedoen word nie, óf die staat in dié saak misluk.”

Hy het gevra: “Hoekom het die kwessie van munisipale afbakening tot die situasie in Khutsong gelei? Dit lyk of die probleem voortgaan, sonder ’n oplossing in sig.”

’n Aantal soortgelyke, oënskynlik plaaslike rebellies het oor die land heen plaasgevind. “Is hier ’n patroon?”
Ndebele het na die onlangse verhoor van oud-adj.pres. Jacob Zuma, wat van verkragting aangekla was, verwys.
Dié drama blyk ver van oor te wees. Dit beloof “om ons almal sonder verligting te hou, in ’n toestand van angs”.
Die gemene draad van dié gebeure is die gevoel van ’n oneindige spiraal van probleme wat vertroue tap. Daar kan ’n sterk suggestie in al dié gebeure wees “dat ons dalk nooit sosiale samehang in Suid-Afrika gehad het nie...”

“Wat ons sekerlik oor dekades gehad het, is ’n mobiliserende visie. Kan dit wees dat die mobiliserende visie onder die gewig van die werklikheid en omvang van maatskaplike heropbouing kraak en dat die legitieme raamwerk om oor dié probleme te debatteer ineenstort?”

‘Swart mense staar hulself in die gesig’
DIE swart meerderheid staar homself nou in die gesig: dalk werklik vir die eerste keer sedert 1994.
Só het prof. Njabulo Ndebele gesê toe hy die koning Moshoeshoe-gedenklesing by die Universiteit van die Vrystaat in Bloemfontein gelewer het.

Hy het gesê dit lyk of Suid-Afrika ’n meganisme nodig het om selfvertroue te bou.
Deur dié meganisme “kan ons die situasie waarin ons is, erken, wat dit ook al is”.
“Ons het ’n meganisme nodig wat die verskillende posisies van die mededingers sal bevestig en hul eerlikheid sal bekragtig op ’n manier wat die publiek vertroue sal gee dat werklike oplossings moontlik is.”

Dit is dié soort “openheid wat nooit maklik kom nie”, wat lei tot deurbraak-oplossings.
Ndebele het gesê ’n komplekse demokrasie soos Suid-Afrika s’n kan nie oorleef met ’n enkele gesag nie.
Net veelvuldige owerhede binne ’n grondwetlike raamwerk “het ’n ware kans”.
“Kan ’n deel van die probleem wees dat ons nie in staat is om die idee van ‘opposisie’ te hanteer nie?
“Ons is verskrik dat enige van ons ‘die opposisie’ kan word.
“Dit is tyd dat ons die koms voorsien van ’n oomblik wanneer daar nie meer ’n enkele, oorweldigende, dominante politieke mag is soos wat nou die geval is nie.”

Ndebele het gesê: “Ek glo ons het dalk ’n oomblik bereik wat nie fundamenteel verskillend is nie van die ontnugterende, tóg hartversterkende nasiebourealiteite wat gelei het tot Kemptonpark in die vroeë jare negentig.”

“Die verskil tussen toe en nou is dat die swart meerderheid nie nou na wit landgenote oor die onderhandelingstafel kyk nie.

“Die swart meerderheid staar homself in die gesig: dalk werklik vir die eerste keer sedert 1994.”
Dit is weer “tyd vir visie”, het Ndebele gesê.

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