http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.25Change: 0.12
R/$ = 11.60Change: 0.05
Au 1197.15 $/ozChange: 2.69
Pt 1199.50 $/ozChange: 2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 07, 2012

Regulatory environment killing small businesses

Back
Africa|Branson Centre|Business Growth|Education|Environment|Flow|Google|Africa|Mauritius|Rwanda|South Africa|Branson Centre|Flow|Tracey Webster
Africa|Business Growth|Education|Environment|Flow||Africa|||Flow|
africa-company|branson-centre|business-growth|education-company|environment|flow-company|google|africa|mauritius|rwanda|south-africa|branson-centre-facility|flow-industry-term|tracey-webster
© Reuse this



The biggest challenge for aspiring entre- preneurs in South Africa is access to capi- tal and compliance with rigorous business laws, says nonprofit entrepreneur support provider Branson Centre of Entrepreneurship.

Entrepreneurs often require extra capital to grow and expand their businesses but are unable to access it, owing to a lack of credit history and collateral.

“This is killing small businesses in South Africa,” asserts Branson Centre CEO Tracey Webster.

The regulatory environment in which businesses operate is also too rigorous for small businesses, she adds.

She points out that it takes about six months to register a business in South Africa with the Companies and Intellectual Property Commission, while the equivalent process can be done in a week in other African countries such as Mauritius and Rwanda.

“This limits an entrepreneur’s potential, slows business growth and discourages [the entrepreneur],” Webster stresses.

Financial and business laws are also too rigorous for small business to comply with and are more appropriate for big businesses, the Branson Centre states.

“A form of tax exemption should be put in place during the first few years of a small business’s existence, which will enable it to grow and make a profit.

There are many things in the regulatory environment that can be improved to help small businesses. Government should pay attention to aspects such as tax require- ments and business registration to ensure entrepreneurships are encouraged and nurtured,” Webster suggests.

Further, the Branson Centre, which has been 100% funded by nonprofit foundation Virgin Unite, now aims to raise 50% of its own budget this financial year.

“We are encouraging corporate businesses to choose us as an option for their enterprise development (ED) spending, and, in doing so, will receive broad-based black economic-empowerment points for their scorecard.

Investing in entrepreneurship is a great way for companies to help create employment and alleviate poverty in South Africa,” says Webster.

Branson Centre Developments

The Branson Centre of Entrepreneurship, launched in 2007, decided last year to reposition itself from being a school to focusing on supporting entrepreneurs who have already started a business but who need assistance in growing and expanding those businesses.

The centre focuses on practical hands-on training through a foundation course ensuring the entrepreneurs have all the basics in place, allowing for a follow-up advanced course which explores growth models. The centre accepts entrepreneurs who already have established businesses.

“We don’t incubate ideas,” Webster states.

The centre typically deals with people from disadvantaged communities who do not have a tertiary education.

“These people successfully started a business and realised they didn’t have the business skills, knowledge or network to expand it, she notes.

“If an application to the Branson Centre is successful, we help entrepreneurs nurture and support their businesses.”

Webster states that an entrepreneur’s business does not have to be profitable to receive assistance from the Branson Centre, but it must be operational.

The centre also opens up networks to financial institutions and organisations that fund entrepreneurial start-ups.

“We spend a lot of time ensuring our entrepreneurs are investment ready and that they have adequate business plans in place so that these institutions will consider funding them,” she explains.

She further adds that the Branson Centre’s training programmes are focused on the specific needs of entrepreneurs.

The centre conducted a research study, the results of which were published in its ‘The Young Upstarts’ report in 2011, and interviewed 800 aspiring entrepreneurs about their most pressing requirements to succeed in business.

“We found that entrepreneurs needed mentorship, access to business knowledge and finance, as well as skills training. Therefore, we decided to focus our training programmes on those skills,” the Branson Centre states.

Last year, the centre assisted 180 entrepreneurs and it aims to assist a further 320 entrepreneurs this year.

“We are about halfway to this target,” Webster states.

Matric Not a Necessity


Webster states that matric is not a prerequisite for being a successful entrepreneur.

“We are continuously surprised by entrepreneurs who have managed to get a business off the ground without a proper education.

“Richard Branson never finished high school or went to university and he created more than 100 operational businesses across five continents, which has created jobs for 50 000 people. That proves that entrepreneurship can alleviate the skills gap and job shortage in South Africa,” she points out.

However, she notes that financial management does prove to be problematic for aspiring entrepreneurs who have not completed matric.

“We are, therefore, very focused on the type of finance courses we provide for entrepreneurs so that they can easily understand cash flow, profits and losses.

As long as entrepreneurs have institutions, such as this one, to turn to for support, there is no reason why they can’t make a success of their businesses. We try to provide as much assistance as possible in ensuring entrepreneurs are able to succeed,” the centre notes.

Google Visit

Webster adds that Internet company Google visited the centre in June, as part of its yearly Make a Difference Day. The company not only assisted entrepreneurs in setting up their own websites and networking platforms but it also provided advertising advice and support.

“We were actually exploring the benefits of social media for business development at the time,” Webster notes.

Entrepreneurs also had the opportunity to have face-to-face meetings with the Google staff to ensure they are running their businesses efficiently, she concludes.

Edited by: Chanel de Bruyn
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other South African Business Schools News
OWEN SKAE Business and sustainability can work together harmoniously
Sustainability provides unparalleled opportunities for organisations; it helps them to become competitive, resilient, and able to grow and create long term value says Rhodes Business School director Owen Skae. He says the school has been focusing on sustainability...
DR COBUS OOSTHUIZEN Leaders must be honest, have foresight and should lead by example
This year, Belgium-headquartered worldwide partnership of companies and business schools and learning organisations the Globally Responsible Leadership Initiative reaffirmed the need for business schools to do more to influence students to make ethical decisions and...
YOGAVELLI NAMBIAR SMEs need to be supported to be sustainable, to grow and to thrive
Small business development received a boost with the launch of the Gordon Institute of Business Science’s (GIBS’) Enterprise Development Academy (EDA) at the business school’s campus in Illovo, Johannesburg, last month. “Government’s National Development Plan...
More
 
 
Latest News
Updated 1 hour 44 minutes ago China appears to have been routinely underestimating output from its sprawling steel sector, with official figures for last year alone 40-million tonnes below a key industry estimate - an amount equivalent to Germany's entire annual production. Beijing has vowed to...
Lumwana, Zambia
Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
The Labour Court in Johannesburg has set aside the 2011-2014 metal sector wage agreement, the National Employers' Association of SA (Neasa) said on Thursday. The 2011-2014 wage deal was the result of an agreement between the Steel and Engineering Industries...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks