The Great South

African Small

Business Symphony

Compiled by Christo vd Rheede

No one can whistle a symphony. It takes a whole orchestra to play it.

Luccock

Joining the Orchestra!

An international perspective on the ease of

establishing a small business!

Starting up a company in Singapore (Ranked 1st)

Starting up a company in Hong Kong (Ranked 2nd)

Starting up a company in Rwanda (Ranked 32nd)

Starting up a company in South Africa (Ranked 41st)

Starting up a company in Zimbabwe (Ranked 170th)

The sound of the orchestra is one of the most magnificent musical sounds that has ever existed

.Chick Corea

What does the South African orchestral sound like!

What the National Development Plan is

saying about the Small Business Sector!

What the National Development Plan is saying about the Small Business Symphony

• In most developing countries SMME’s contribute significantly to job creation and overall GDP. • South African SMME’s contribute more than 40 % of total GDP and

account for more than 60 percent of all employment. • The 2013 Global Entrepreneurship Monitor (Gem) report shows that

South Africa continues to fare dismally in creating new entrepreneurs.• Less that 14% of South Africans plan to start a business in the following

three years.• Total early-stage entrepreneurial activity rates in South Africa are about

half of what they are in other developing countries.• The FinScope Small Business Survey shows that there are 5.9 million

small businesses in South Africa, 17 percent ( 1 mil) of which are registered.

What the National Development Plan expects from the SMME sector

• Some 90 percent of jobs will be created in small and expanding firms.

• By 2030, the share of small and medium-sized firms in output will grow substantially.

• Regulatory reform and support will boost mass entrepreneurship.

• Export growth will play a major role in boosting growth and employment, with small- and medium-sized firms being the main employment creators.

• Private and public-sector procurement will improve access to opportunities for small and medium enterprises.

• Human settlements and services will need to be conducive to small- and medium enterprise expansion.

What the National Development Plan promises the SMME sector

• Small businesses operate in different environments and are owned and managed by people with a wide range of motivations and aspirations.

• Support measures should be segmented, based on whether small firms are• start-ups or multiple startups; • survivalist businesses; • so called “dassies” or lifestyle businesses; • “gazelles” or high-growth businesses; • franchises; • very high potential or high impact businesses; • and/or new industries or new technology businesses.

What the National Development Plan promises the SMME sector

• Key proposals to support small business development:• Simplify the regulatory environment.• Implement commitments to 30-day payments to smaller suppliers.• Make government procurement opportunities more accessible to small businesses.• Streamline tender processes.• Improve transparency and get rid of corruption.• Simplify the regulatory environment. • Access to debt and equity finance.• Address the skills gaps:• Provide skills development for students currently in school with a focus on grooming an

entrepreneurial attitude.• The government should incentivise the private sector through tax breaks to set up mentoring

programmes;• Established small enterprises should be offered wage subsidies to take on apprentices and to offer

youth placements.

Steps to fine tune the orchestra!

Steps introduced to make things easier for the small business

sector

Business Reforms in South Africa

2014:•Paying Taxes: South Africa made paying taxes easier for companies by replacing the secondary tax on companies with a dividend tax borne by shareholders. 2013:•Trading Across Borders: South Africa reduced the time and documents required to export and import through its ongoing customs modernization program. 2012:•Starting a Business: South Africa made starting a business easier by implementing its new company law, which eliminated the requirement to reserve a company name and simplified the incorporation documents. •Registering Property: South Africa made transferring property less costly and more efficient by reducing the transfer duty and introducing electronic filing. •Resolving Insolvency: South Africa introduced a new reorganization process to facilitate the rehabilitation of financially distressed companies.

However, the challenge remains!!

According to the Headline Report of SBP’s SME Growth Index…

• The regulatory burden continues to distract SME’s from their business activites!

• Lack of opportunities and assistance for SME’s!

• SME’s struggle with the administrative demands imposed by South Africa’s labour legislation!

• The efficiency and effectivenice of governance overall should be improved!

• Improving the skills of the workforce is imperative!

• The work ethic of young people is a grave concern!

• On time payment of suppliers still a challenge!

• Lack of synergy between local suppliers and those who source supplies from them!

• Corruption and arrogance of officialdom!

• Price-fixing has a detrimental impact on SME’s and the local supply chain!

You can't play a symphony alone, it takes an orchestra

to play it.Navjot Singh Sidhu

BUSA CHAMBER’S ENTREPRENEURSHIP TRAINING & DEVELOPMENT PROGRAMME

BUSINESS VISION AND MISSION(NERVOUS SYSTEM)

BUSINESS VALUES(IMMUNE SYSTEM)

EMPLOYEES(ARM)

BUSINESS STRATEGY(RESPIRATORY SYSTEM)

EMPLOYER(ARM)

BUSINESS OFFERING(CARDIOVASCULAR SYSTEM)

EMPLOYEE TASKS ALLOCATION(HAND AND FINGERS)

EMPLOYEE DEVELOPMENT(SENSES)

EMPLOYER TASKS ALLOCATION(HAND AND FINGERS)

EMPLOYER DEVELOPMENT(SENSES)

BUSINESS ADMINISTRATION(MUSCULAR SYSTEM)

BUSINESS RESOURCES(DIGESTIVE SYSTEM)

BUSINESS ENVIRONMENT(SKELETAL SYSTEM)

BUSINESS SAFETY & SECURITY (LYMPHATIC SYSTEM)

BUSINESS NETWORKING(REPRODUCTIVE SYSTEM)

BUSINESS MONITORING(LEG AND FOOT)

BUSINESS EVALUATION(LEG AND FOOT)

CURRENT PROGRAM

TRAINING DONE SO FAR

• Eersterust• Hammanskraal• Mossel Bay• George • Robertson• Bonnievale• Bethelsdorp• Vanderbijl Park• Oudtshoorn• Tsitsikamma• Gansbay

• Kwattu San Cultural Centre near Atlantis • Potchefstroom/Tlokwe• Modimolle• Olievenhoutbosch• Bothaville• Malmesbury• Bredasdorp • QwaQwa• Bellville • Lydenburg

IMPORTANT STATISTICS

• Main funders:• Trias a Belgium based Business Chamber• Toyota SA• ABSA• Local chambers

• Participants:• 70% black • 30% white• 70% female

• 60% of participants continue to actively engage in local chamber activities• Local chamber provides greater access to value chain• Bigger business provides contracting and other business opportunities

AWARDING START-UP ENTREPRENEURS

BOTHAVILLE START-UPS IN ACTION

ROBERTSON START-UPS RECEIVE CERTIFICATES

A man who wants to lead the orchestra must turn his back on

the crowd.Max Lucado