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Keeping Bureaucrats Busy

Does SA have the money and manpower for this new Bill?

Alison Job

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Business Bill

The Licensing of Businesses Bill of 2013 (the Bill), recently gazetted by the Department of Trade and Industry (DTI), will need an army of bureaucrats to implement, says the South African Institute of Race Relations.

The Bill obliges every business in the country, no matter how large or small, to register with and obtain a licence to operate from its local municipality, acting as a ‘licensing authority’. Inability to produce a licence on demand will be punishable by fines and/or prison terms of up to ten years.

“If the Bill becomes law, millions of businesses will be affected,” says Dr Anthea Jeffery, head of Special Research at the Institute.

SA has over 6m unregistered businesses

“Though exact numbers are hard to obtain, there are more than 1.3m businesses that are already registered under the Companies Act of 2008. In addition, there are around 3.8m one – person survivalist enterprises, another 759 000 micro businesses that employ one other person, and roughly 472 000 firms with two employees each.

This suggests that at least 6.3m businesses will have to apply for licences to continue operating.”

Applications will go to local authorities, which will have to evaluate them, ask for more information if necessary, and decide them within 30 days. Each municipality will also have to maintain ‘an up-to‐date central registry of all licensed businesses’.

In addition, every municipality will have to report to the provincial MEC for local government ‘at least twice a year’ and possibly more often. This report must include ‘a business registry of all licensed businesses and any other prescribed information’.

The MEC, in turn, must report – also at least twice a year and perhaps more often – to both the minister of trade and industry and the minister responsible for local government. The MEC must provide ‘a consolidated report’ covering ‘all the licensed businesses’ within his province.

“This means,” says Dr Jeffery, “that he will have to start by collating all the information submitted by all local, district, and metropolitan authorities within his area – in itself a major task.”

More officials will have to be employed

Notes Dr Jeffery: “The DTI claims that the Bill will not create ‘any additional bureaucracy’. But if many more officials are not employed to issue licences, maintain registries, and write reports, the many other tasks already resting on often inept municipalities – the need to keep accurate financial records, for one – are even more likely to remain undone.

Is the Bill affordable?

“The Bill will also add to the costs of the public service. Yet this has risen so fast in recent years that it is already crowding out essential infrastructure spending. It’s also adding to the budget deficit and the Government’s interest bill.

“This year alone, the State plans to spend R99.7bn on servicing its debt. Thereafter, its interest bill will rise to R108.7bn in 2014 and then to R118.2bn in 2015. Even without this Bill and the extra bureaucracy it will require, interest payments are expected to increase by 18.6% in three years.

“Why add to the debt burden via a Bill the DTI says is needed to ‘promote the right to freedom of trade’ but will, of course, have the opposite effect – especially for small and micro enterprises?”

Alison Job holds a BA English, Communications and has extensive experience in writing that spans news broadcasting, public relations and corporate and consumer publishing. Find her at Google+.

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Entrepreneur Today

How SMEs Could Cash-In On Black Friday And Cyber Monday

Provided that SMEs prepare ahead of Black Friday and Cyber Monday, there is an opportunity to leverage off the global hype, where some simple alignment to the theme can result in big benefit without much investment into promotion.

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Jesse Weinberg

Provided that SMEs prepare ahead of Black Friday and Cyber Monday, there is an opportunity to leverage off the global hype, where some simple alignment to the theme can result in big benefit without much investment into promotion.

In the midst of low consumer and business confidence, tapping into the opportunities presented by these two days could contribute significantly to boosting the cashflow of SMEs.

“To benefit from Black Friday and Cyber Monday, the two big focus points would be the thinking around what the business will offer to customers and how it will promote the offerings ahead of the days. This allows customers to plan their purchases ahead of time, which also ensures traffic for the SME,” says Jesse Weinberg, Head of the SME Customer Segment at FNB Business.

Related: How To Prepare Your Business To Win Big On Black Friday

Weinberg provides useful tips for small businesses to help SMEs take full advantage of Black Friday and Cyber Monday:

  • Use social media – Businesses should make full use of social media as a tool to support their offers on these days. A powerful tactic seen recently is for businesses to actually ask customers what they might like to see as a special offering by the businesses to assess the potential demand from the market.
  • Gauge customer appetite – A simple poll survey offers great insights into what customers want. The real trick for business on these two days is to ensure that the special deals on offer will actually be desired by customers, especially if the business plans on taking-on extra stock in for these specials.
  • Pre-promotion of specials – Another powerful example of using social media would be to communicate the specials that you plan on running on these days to create sufficient awareness and demand by persuading customers to plan their wish lists, with the idea that the special the business wants to run will be on their list.
  • Stock management – Businesses should avoid over-buying with the hopes of profiting from the additional demand. Getting in touch with customers may help the business buy the most desirable stock to ensure it sells.

SME’s should take full advantage of special global trade days like Black Friday and Cyber Monday – it’s like being able to plug your specials into someone else’s marketing campaign for no extra charge,” concludes Weinberg.

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Leading South Africans Inspire Guests At The Standard Bank Business Breakfast In Association With Jacaranda FM

A full house of business owners, professionals and entrepreneurs emerged inspired from today’s Standard Bank Business Breakfast, in association with Jacaranda FM, held at the Montecasino Ballroom in Johannesburg.

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Standard Bank Business Breakfast

A full house of business owners, professionals and entrepreneurs emerged inspired from today’s Standard Bank Business Breakfast, in association with Jacaranda FM, held at the Montecasino Ballroom in Johannesburg.

The latest event in the ongoing Business Breakfast series featured a star-studded line-up of South African leaders and achievers in various fields sharing insights and motivational learnings. Attendees from the corporate world and the Jacaranda FM audience drew inspiration and shared networking opportunities as the speakers talked about their respective journeys to success and what kept them motivated.

“This morning’s speakers are all examples of South African excellence,” said Jacaranda FM General Manager Kevin Fine.

“They showed grit and dedication in overcoming hurdles to succeed in their fields and inspire others to do the same. We’re glad to join forces with Standard Bank to help them connect with our audience and to give our listeners insight into Standard Bank’s business offerings.”

The audience remained glued to their seats throughout the morning, as the speakers gave their views on life, what motivates them and lessons that can help business people excel in their respective sectors.

Speakers at the breakfast were principled political leader Dr Makhosi Khoza, Springbok rugby captain, Warren Whiteley, Astrophysicist and Mars One candidate, Adriana Marais and philanthropist and businesswoman Basetsana Kumalo.

dr-makhozi-khoza

Dr Makhozi Khoza speaks at the Standard Bank Business Breakfast in association with Jacaranda FM

Dr Khoza spoke on her political and business life path, and the importance of speaking truth to power. She encouraged South Africans to accept that “none but ourselves – the good men and women of this country – can save SA”. She ended her talk with an enigmatic reference to the need for “a new vehicle to take us to a prosperous society”.

Related: 10 Successful SA Women Entrepreneurs’ Top Advice On Balancing Work And Family

martin-bester

Martin Bester, Jacaranda FM breakfast show host interviews Warren Whiteley at the Standard Bank Business Breakfast in association with Jacaranda FM

In conversation with Jacaranda FM morning drive show host Martin Bester, Whiteley spoke about the need for cohesion, commitment, continuity and morale in sport and in life. He explained how the successful Super Rugby team saw purpose as more important than winning.

“Our purpose is to inspire people through what we do on the field and off it,” he said.

dr-adriana-marais

Dr Adriana Marais speaks at the Standard Bank Business Breakfast in association with Jacaranda FM

Dr Marais is one of the 100 finalists to be part of Mars One, the first manned space expedition to the red planet. She emphasised the power of inspiration, reminding the audience how the Apollo moon-landings had inspired a generation of young people to embark on science careers, which led to advances in technology and communications. She explained how the innovations that solved resource scarcity in space could be used on earth to improve inefficiency and to resolve resource disputes.

Related: 13 Female Entrepreneurs Rising To The Top

basetsana-khumalo

Basetsana Khumalo speaks at the Standard Bank Business Breakfast in association with Jacaranda FM

In her address, Basetsana Kumalo reflected on her journey from Soweto schoolkid to Miss South Africa 1994, to trail-blazing businesswoman and serial entrepreneur. Having founded TV production companies, resources ventures, travel and property firms, she said her guiding wisdom was to “show up and raise your hand”.

“Challenge the status quo”, she said. “Resist gender stereotypes and help others. Your success can create a generational legacy for those that come after you.”

Jacaranda FM Marketing Manager, Minisha Patel, said the breakfast was a great success, “We offer a full spectrum of informative and entertaining content, and sharing business knowledge is part of that. It was great to see a packed house and so much passionate engagement during and after the event. Clearly our speakers’ messages resonate with the Jacaranda FM audience.”

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SEDA Launches A Centre For Entrepreneurship And Rapid Incubator In Upington

The Centres for Entrepreneurship (CfE) and Rapid Incubators form a strong link between institutions of higher learning and enterprise development.

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The Centres for Entrepreneurship (CfE) and Rapid Incubators form a strong link between institutions of higher learning and enterprise development. It is in this spirit that Deputy Minister of Small Business Development, Ms Nomathemba November will be launching the Vaal University of Technology (VUT) CfE/Rapid Incubator in Upington.

This centre will service graduates from the university and broadly young entrepreneurs from Upington and neighbouring towns such as Keimoes, Kakamas and Groblershoop.

Related: Small Enterprise Development Agency (Seda)

The VUT CfE and Rapid Incubator centre strategically located to focus on predominant economic sectors within the area they are located. The VUT centre will focus on renewable energy, agriculture and tourism sectors.

These sectors are key the local economic activities within the Upington area with a potential of accommodating new entrants in particular graduates with innovative ideas who would like to take advantage of opportunities within the area. These are young people who are going to be developed into entrepreneurs through CfE/Rapid Incubator programme.

The programme is designed to develop viable innovative ideas into small enterprises after 18 months.

The CfE/Rapid Incubator is divided into two parts, the first part is CfE which is six months theoretical training programme focusing on business entrepreneurship training, innovation and idea generation training and product conceptualisation.

Related: Funding And Financial Assistance For SA Women Entrepreneurs

The second part of the programme is the 12 month rapid incubation open only to qualifying selected candidates. It is during this period that actual product development and refinement takes place.

During this period the commercialisation of the product entails advanced sector specific technical training, seed funding and other business support also takes place. After the 18 months the SMME is expected to be ready for the open market and will graduate from the programme.

The CfE is able to accommodate up to 60 clients but only around 20 graduates are selected at enterprise start-up week for rapid incubation by the incubation team and Seda. This is the eighth rapid incubator to be launched out of the nine planned across the country.

Related: Tender Process For The Tough-Minded

Other provinces which have launched are: KwaZulu Natal (Esayidi TVET College); Northern Cape (Northern Cape Rural TVET College); Limpopo (Vhembe TVET College); Western Cape (False Bay TVET College); Free State (Motheo TVET); Free State (Goldfields TVET) and North West (Orbit TVET College).

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