I honestly don’t understand why people have an issue with Khanyi’s loan. I think people lack fundamental understanding of what makes an entrepreneur. There is nothing sentimental and social conscious about entrepreneurship. Entrepreneurs exist to serve the need and in that process make money, supper profits if possible, not just profits. The primary focus of developmental finance institution is to make sure these super profits are now enjoyed by black people in the main. If Khanyi didn’t open that shop, someone white would have opened it and would still make a killing out of extravagant black consumers. NEF made an informed investment decision in my opinion for both risk and their core mandate of expanding business opportunities to black entrepreneurs. For haven sake, Khanyi made a significant contribution towards that loan. There are obviously exclusions on businesses NEF funds, but Khanyi’s business is not one of them. Perhaps, people were expecting a black person to open a bakery business, or a fish and chips shop, so as to be social conscious, or open a brothel and a sheebeen as those are amongst the most thriving business in the black communities. Business opportunities that are financial viable have no bounds in SA, and people must not expect entrepreneurs to be confided to operating, Security, cleaning, stationary supply, and consulting services, as the only businesses black people must operate. Any business loan, with clear terms of payment, with acceptable risk profile, from a legal entity, operating within the mandate of NEF, should be funded.
Posted on: Mon, 29 Jul 2013 21:50:35 +0000
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