Entrepreneurial aspirations? No thanks!

The recently released Global Entrepreneurship Monitor (GEM) 2013 South African report, which revealed that only a quarter of South Africa’s youth is interested in becoming a potential entrepreneur, believe that they possess the skills and knowledge to start a business, and believe there are opportunities to exploit, while only 13% possess an intention to start a business in the next three years.

The report also revealed that 65% of youth-started businesses offered employment to more than one employee, and 7% offered jobs to 6 – 19 employees. This illustrates the substance of young individuals starting their businesses.

Entrepreneurship (Photo credit: Michael Lewkowitz)

It is crucial that South Africa bridges the gap between the youth’s entrepreneurial aspirations and reality of establishing a business. Intentional entrepreneurs are an important stage in the entrepreneurial pipeline as a strong association exists between entrepreneurial intentions and actual entrepreneurial behaviour, and highlights why it is necessary to equip the youth with the right tools and knowledge to embark on an entrepreneurial venture.

There are a few key areas for young intentional entrepreneurs to contemplate in the next three years before starting a business:

• Deciding on the type of business is key,
• Determining the capital required to start the business and
• The experience needed to build the business.

It is also important that the youth have a realistic understanding of the amount of work required to start a business. This will not only prepare young entrepreneurs for their future business, but also lessen the chance of failure.

[Read full article]

[GEM 2013 South Africa report]

Small business gets own ministry

South Africa’s highly-anticipated first small business development minister Lindiwe Zulu carries the hopes of millions of small business owners on her shoulders. The Minister stressed that she would draw on the experience of her deputy minister Elizabeth Thabethe as well as programmes, policies and studies conducted by the Department of Trade and Industry (DTI) and the Department of economic development, which were the previous custodians of small business.

According to the minister, the government recognised that small businesses play an important role in the economy and job creation.

Lindiwe Zulu, minister of small business development. (Photo: File, City Press)

A statement released by South African Chambers of Commerce and Industry (Sacci) advised that it would engage a department that serves the development interests of small business and the economy. This would include simplifying the regulatory environment, reviewing and expanding incentives and championing the cause of small businesses with other government departments and the Presidency vice versa policy development.

Media reports and social media comments were full of requests from business owners and business organisations appealing to her for assistance in reducing regulatory burdens that they believe are hindering growth in the sector. However, Congress of SA Trade Unions (Cosatu) is opposing her first suggestion, to exempt small businesses from labour laws and underlines that current laws would already allow for flexibility. One should not forget that Cosatu’s members are those with jobs…

[Read interview with minister]

Tax registration: Easier than ever?

In an effort to combat cyber crime and reduce red tape, the South African Revenue Service (Sars) introduced a single tax registration system for individual taxpayers and companies this month. The single tax registration system has been in the pipeline for some time. It is also aimed at reducing red tape for small business.

Once in full force, the system will allow new taxpayers to submit a tax registration application (at a Sars branch) only once. Any additional tax registrations for income tax, value-added tax (VAT), pay-as-you-earn (PAYE) or customs and excise will be available through the eFiling platform.

Tax registration: Easier than ever? (‘Taxes Ahead’, photo credit: efile989)

The introduction will only affect new registrations – taxpayers who are already registered do not need to reregister. They will only be affected in cases where an additional registration – for example for VAT – has to be added to their profile.

The initial introduction has not been without its teething problems. Although the new system is essentially aimed at new registrations snags generally related to existing ones. Especially tax practitioners experienced some challenges.

It will also enhance security, as it will verify which parties are allowed access to the taxpayer’s records. This could potentially include the taxpayer and his tax practitioner and in the case of a company the public officer (the representative taxpayer).

[Full article]

Slogan creates high value for business

Slogans for nothing (Photo credit: mugley)

Never underestimate the power of a well-thought out slogan because it will define the core of your unique selling proposition (USP). A USP is defined as the factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition. It positions the value proposition and helps your clients remember what you do and what you stand for. A slogan speaks in your absence.

A few examples of slogans:

• Sanlam: We think ahead
• First National Bank: How can we help you?
• Checkers: Better and Better
• Allan Gray: Independent minded
• Yellow Pages: Let your fingers do the walking
• KFC: Finger lickin’ good
• Interflora: Say it with flowers

As is evident from the above examples, the slogan sometimes speaks to values and at other times to what the business does. Sometimes the name of one’s business is not descriptive enough to inform prospective clients about what the business stands for, or does.  

Thus, use a slogan together with the logo of your business and/or on all marketing material and literature, at the bottom of all correspondence, in advertisements and on the website of your business.

[Full article]