Current Edition >> Archives Section >> Leading Stories >> October 2002

Organized business in SA changing dramatically

WITH the signing of a co-operation agreement by Nafcoc with SACOB, the AHI and Fabcos on 21 September 2002, seen together with other imminent changes concerning organized business, it is a foregone conclusion that organized business in SA will never be the same again. The co-operation agreement constituted an historic accord whereby the principals in organized business positioned into a relationship situation which is the closest to unity they have ever been.

Aspects of organized business which are evidently dramatically affected by the new scenario, include amongst others:

• For the first time in history not only mainly Afrikaans and English business people are to co-operate within the same organized business structure, but also business people across the racial divide. It looks as if for the first time business in SA could really speak with one voice. This could have reverberating effects from the top business echelons in the country down to membership grassroots level.
• Secondly, the numerical membership situation could increase dramatically. Currently only some 100 000 businesses in SA are members of the principals to the co-operation agreement, with SACOB having the largest following - 40 000 members. It is reliably estimated that there are at present some 1,1 million active, registered and tax-paying businesses in SA. Of these only some 1 000 could be classified as corporates listed on the JSE. Over and above these 1,1 million businesses, it is calculated that there are a further 2,5 million non-registered, non-taxpaying businesses in SA. So the expansion potential is tremendous.
• The functions/duties/activities of chambers of business (or commerce, as the internationally recognised term is) is of necessity to change dramatically from basically discussion fora or plain talk shops to developmental agencies. The huge unemployment in SA, the vast need for business developmental information, skills and opportunities and the sweeping drive towards entrepreneurship, simply demand that organized business in SA should henceforth don a developmental cloak.
• As far as it's developmental function is concerned, the proven basic formula for chambers of business/commerce nowadays is to identify in it's region a flagship project and drives that to success, creating in the process a spin-off that benefits all economic sectors in the region. Practical examples of such success stories are the Coega port project near Port Elizabeth and the brick highway project from Barberton to Mozambique.
• Another paradigm shift for chambers is to restructure themselves from basic networking stations into business brokering houses. Here the thinking and the trend is that a business pays an entry membership fee to become a member of a chamber and is then presented by an array of services, like consultancy, trade info, e-commerce, etc., for which the business then pays individually as it selects. This just about touches upon privatisation of chambers. In this respect, the Wesvaal Chamber at Klerksdorp, which is expected to be restructured into the Klerksdorp Chamber of Commerce, is likely to serve as a pilot project.
• Be as it may, what is for sure, is that organized business will have to address the question of SMME development in SA squarely. All over the world but especially in developed countries, it has been proved that the SMME sector makes up more than half of current GNP. So if SA is to get its economy going in a way that would make a notable difference to the present vast unemployment and poverty, the SMME sector simply has to be ignited.

For sure there are high hurdles on the new road waiting to be overcome, but that organized business in South Africa is set on a new course of no return, is equally sure.