“It’s the economy, stupid”
The other day I got an SMS from a shop from which I bought a rug several years ago. They are going out of business. They have appealed to customers past and present to make “any offer” on their stock, and say they would rather give carpets away than store them. It made me really sad.
Another small business going bust. It makes you want to cry, then, when you hear that our Economic Development Minister Ebrahim Patel thinks you can’t shop your way out of a recession. How does he think we get out of it, then?
If people don’t buy things, from property, heavy machinery and minerals to wine, lipstick and golf clubs, then the economy doesn’t tick over. We are, then, where we now appear to be: on the brink of a recession.
Take a long drive sometime, go through the small towns that straddle the big routes across SA. It will break your heart. We did so recently, driving on holiday from Joburg to Port Nollath through towns like Ventersdorp. Vryburg and Delaryville, and – on our return - Griekwastad, Kimberley and Boshoff. Many are sad, dusty dorps where there appears to be little hope and almost no shopping at all. Outside these towns are large informal settlements.
Urbanisation is not a South African phenomenon. It is a global problem that some are trying to turn into a solution, especially regarding the scope it has for economies of scale that could save us ecologically, and help us (by “us” I mean all of us, the world) adapt to climate change. I am persuaded there is merit in this idea – it makes sense. What is sad, however, is the silent dusty choking of these tiny towns, many of which have a grander history.
It has long been said that the government is not doing enough to help along small- and medium-sized business. There is no doubt that this is at least in part true, and notions of labour flexibility, exemption from red tape and the exemption of vehicles listed to companies that earn, say, less than R2-million a year, from carbon taxes and (Gauteng) road tolls should be no-brainers.
Of course some people will find loopholes that allow them to take advantage of these rules, perhaps creating shelf companies that own their private bakkies. Many, however, will not go to that length, and wouldn’t the savings for small- and medium-sized business make it worthwhile? The same goes for labour flexibility.
Small businesses, small towns and the “little fish” out there need government’s help, and there is only one way to kickstart an economy – people and business must buy things.
Tags: carbon tax, economy, labour, Patel, small business
September 14th, 2011 at 11:54 am
isn’t that Port Nolloth?
October 2nd, 2011 at 6:12 pm
I agree with your thoughts on government helping small business BUT
I like all residents of these towns you call “sad and dusty” get annoyed when people judge us on a one minute take as they fly through . Have you been to Brakpan or Boksburg on a Monday morning a week before payday, thats scary quiet..
If you were to stop for a while instead of rushing by and have tea and cake at the local coffee shop you will meet friendly and upbeat South Africans. South Africans that choose to work the lands with its drought and floods, doctors and dentists who choose the local lifestyle, people that feel much happier and secure than our friends in Gauteng and one last comment if you were to do a quick calculation looking at the size of and number of shops, garages and farms every small town is home to at least 5 millionares who pay taxes employ staff and SPEND. Yours GPJ
November 22nd, 2011 at 10:20 am
We have travelled through the country all our lives, with friends and relatives who live (or lived) in the small towns your article is about. There is no doubt that your observations are accurate. The problems began years ago, when large companies bought out smaller ones. Wholesalers used to employ travelling salespeople to promote and distribute their wares. Every little town had its hotel (often The Masonic) which did steady business as these “smouse” made their visits. The local populations were large enough to support many community activities, like tennis and cricket clubs. Vestiges remain where the farms are productive enough to support families, such as the southern Free State or the KZN Midlands, but the consolidation of smaller units into larger ones exacerbated the difficulties. In many parts of the country such community activities are, sadly, no longer.