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Read MoreStarting a Business
Entrepreneurs starting a business today have ample opportunities to grow to become trailblazers in their industry. South Africa will not see its unemployment rate decrease if the unemployed merely hope for an economic upturn to deliver a flood of lucrative jobs. The path to economic growth is for people to evaluate their skills and talents, adopt a business mindset, and start-up a business – even if it’s at micro level at first, to “test the waters”. Even though South Africa is an emerging market with an abundant supply of natural resources and well-developed support sectors, unemployment remains high. What’s your tycoon potential? When starting a micro or small business you are faced at the very outset with a simple but crucial task: taking stock of your present situation. This means that you have to look at your personal situation, and your strengths and weaknesses. The ancient Greeks recorded a piece of good advice: Know thyself. While it is important to recognize your assets such as education, experience, technical skills, appearance, personality and degree of initiative, it is equally important to know your inabilities, so that you are aware of areas you need to develop. Self-employment carries huge responsibilities not only to yourself but also to your family, employees, suppliers, customers and even your community. Some Business Categories Agriculture Business Professional Services Construction Crafts Creative Cultural Fast Food Information Technology Manufacturing Green Business Media & Marketing Tourism Transport & Logistics Business Ideas Marketing tips and techniques Contact Theresa (ecottage@gmail.com) to create a Business Plan, Funding Proposal, Company Profile, Business Portfolio, Packaging or Training Manual. Biz Culture is aimed at encouraging emerging and aspiring entrepreneurs to explore the different business categories to find their niche or download any of our self-study tutorials from our e-book library. Businesses, in particular start-ups, recognize the importance of managing their costs like never before, but when it comes to IT expenditure, most businesses spend large sums on staffing, PC hardware and software, Internet Service, and networking components. While most of these things are deemed necessary, some new technologies can save the business owner serious cash in the process; a new buzz term is called “zero cost computing”. Here are some ideas your business can think differently about IT and save money: Use Google Apps Get freeware that works: Free solutions for word processing include photo editing, spreadsheet maker and presentation creator (Microsoft Word, Excel, PowerPoint) Take a look at the productivity suite from OpenOffice.org. Use Skype for VOIP, instant messaging and...
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Read MoreState of Entrepreneurship in South Africa
The state of entrepreneurship in South Africa is indicative of the country’s ongoing economic and social development drive, enabling South African entrepreneurs to connect with other entrepreneurs around the world to embrace innovation, imagination and creativity. Entrepreneurial growth in an emerging and culturally diverse South Africa still lags significantly behind many comparable countries like India, Brazil and Mexico. Growing unemployment and poverty in South Africa has reached boiling point and shows no sign of slowing down. These rising levels in the country can be effectively curbed through the advancement of entrepreneurship as a viable career choice within the formal and informal sectors; however, it requires a committed change in South Africa’s public perception and culture to accelerate the belief that the transition to self-employment is a sensible way to end long-term unemployment. Also read Employment Opportunities in South Africa Formal Sector Formal sector entrepreneurs have a very specific function in boosting the national economy and developing social capital; they create employment, stimulate productivity and commercialize high-quality innovations. Through innovation, entrepreneurs create new, competitive markets and the potential to compete in the global arena, which has a multiplying effect on the national economy. Business ownership not only empowers individuals but also uplifts struggling communities, encouraging the general public to successfully explore their capabilities, develop leadership traits and become self-reliant. Informal Sector In view of the high unemployment rate one would presume that more impoverished or low-income households would explore affordable and profitable micro business opportunities, yet South Africa has a relatively underdeveloped informal sector. While this sector does not need to adhere to legal requirements and strict procedures that the formal sector follows, it has the potential to advance large-scale job creation. Informal trade typically takes place in general dealer shops usually run from home, temporary fast-food stands on the street and informal micro businesses including hairdressing, carpentry, sewing, arts and crafts, pottery, bricklaying, bead-work, musicians and taxi services. Also read Entrepreneurship in South Africa. Business Culture The BIZculture Web site hopes to raise awareness on issues pertaining to new venture creation and also serve as a knowledge platform to inform aspiring entrepreneurs and established business owners alike about new technology, marketing ideas, and ways to grow their enterprise. As an online SMME business consultancy and service provider, BIZculture is committed to empowering and educating South African entrepreneurs to take advantage of business opportunities and novel challenges to place South Africa in the forefront of embracing a culture of entrepreneurship and youth development. The BIZculture...
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Read MoreSowing the Seeds for Youth Development
Sowing the seeds for youth development not only involves a commitment to lifelong learning to enhance business knowledge, it also focuses on understanding the dynamics of self employment and relevant responsibilities to employees, customers, and suppliers. Most young people today are ready and willing to dive into employment of any sort or explore promising self-employment opportunities to build livelihood resilience, yet many lack basic personal, social and life skills that will allow them to become knowledgeable and responsible adults with the capacity to make a difference in uplifting their communities and contributing to the economy. Many young entrepreneurs fail to develop highly potential ideas to start a business because they lack adequate funding. Industry leaders advise that young entrepreneurs need to build their own support network to expand their business knowledge, skills and experience. Nobody is going to hand it to you on a silver platter. Besides, you don’t need a million rand to start a business. Starting a business is a do-it-yourself project, and young entrepreneurs must not expect individuals and institutions to fall over themselves to offer support. Knowledgeable For young people to become knowledgeable, they must be self-motivated to pursue purposeful learning and forego an entitlement mentality of believing the world owes them something. A common catchphrase today seems to be “government or the private sector must do something” when instead the responsibility lies with the individual. Young people must acquire both inter-personal and employability skills – by their own volition – that would give them a reasonable chance of making their way through life as parents, workers, entrepreneurs and active citizens within their community. Responsibility While literacy and numeracy are key life skills that impact all aspects of life, the most important life skill is the ability to learn. For young people to become responsible, they need to recognize the difference between strengths and weaknesses, threats and opportunities, and be capable of consequential thinking and problem recognition to facilitate choosing actions and behaviors that will serve not only their own interests but also those of others. Failed Expectations Important lessons include how to think and act with confidence in themselves and respect for other people. However, there is wide recognition that many young people today fail to understand the significance of integrity, self-control and self-respect. Many are enticed by illicit activities as a quick and easy way to make money. These involvements are strongly motivated by rebellion against society that has failed to meet their normal expectations of...
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Read MoreHow to Prepare for the Next Economic Upturn
The economic environment in which a business operates significantly affects its performance. One central responsibility of a business owner or manager is to manage the business in a way that makes the most of prevailing circumstances. You might need to trim your non-core expenses and replace fixed costs with a higher variable cost component; this could mean hiring temporary as opposed to full-time staff, or leasing equipment on a pay-per-use basis. Cash flow crunches have ruined many a good business; when business is slow look for unmoved inventory and slow selling products to put up for sale at discounted prices. Replenish merchandise in controlled quantities only as needed. It is also important to maintain price stability; be mindful of how consumers are experiencing the downturn and its impact not only in terms of their buying decisions but also their ability to pay their debts if you sell to them on credit. What has caused the current economic slump in South Africa? Besides unemployment, inequality, poverty, crime, and HIV/AIDS that continue to plague the country, sectors like agriculture, mining and manufacturing are in decline while the trade and current account deficit (CAD) has widened. Household indebtedness has reached worrying levels in a low-interest rate environment parallel to mounting inflationary pressures. Overall growth has slowed down, which is a risky proposition for South Africa. Luckily, the sound fiscal position has cushioned the economic slowdown somewhat. Consider how your business can help improve the lives of people struggling to survive. Such families have either limited or no resources, such as money, education, and reliable contacts. If your business is a bakery or grocery store you could incorporate a mobile food truck service to your business and sell goods in low-income areas at discounted prices. As long as you research the feasibility of this kind of venture you can let your creativity soar. You will need to comply with relevant regulations (consult the Department of Health) and obtain the necessary permits. Other worthwhile ideas to help poor communities include sponsoring an amateur sports team (uniform, equipment, coaching); or upgrade a public recreation park (liaise with the local municipality to plant trees and lawn, install children’s playground equipment). These projects will not only contribute to the well being of the community, but will also attract media attention and gain publicity for your business. There exists a common belief that the development of small-scale industry could become a prime mode of economic growth that will impact positively on poverty...
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Read MoreNew Economic Realities
The number of South Africans out of work has risen above seven million. Even though the economy is creating jobs the number of jobseekers continues to rise at a disturbing rate. This phenomenon could be ascribed to long-term unemployed citizens resuming their job hunt, as well as thousands of recent school leavers and new graduates seeking employment. Unemployment, poverty, inequality While unemployment is rife there is also an increasing polarization between rich and poor, an insidious pattern of inflation and high interest rates. All these factors have given rise to incomes of poor households being eroded by rising food prices, a break-down in economic and community efficiency due to strikes and a growing menace of corruption. Large numbers of South Africa’s young, educated and skilled workforce continue to emigrate while there is a massive and largely illegal inflow of destitute people from the rest of Africa, which further exacerbates the country’s existing social challenges. As history has repeatedly taught us, poverty, unemployment and diminished food security are the stuff of which civil unrest and revolutions are made. Crime, corruption, price hikes The country’s new economic realities drive social challenges like poverty, strikes, violence, crime, corruption, political instability and social inequality. Recurring price hikes also impinge on consumer spending, consequently limiting the number of new business start-ups and closing down of established firms. Those in the lower-income brackets are hit the hardest, making life a constant struggle. The gravity of the new economic realities is that over 68 percent of all South African workers are employed by small business; if businesses are forced to retrench staff to keep their doors open these individuals may have to join the ranks of the unemployed. In the 1950/60’s the South African economy and employment opportunities grew rapidly; close on 80 percent economically active citizens were absorbed in agriculture or a viable subsistence lifestyle. However, economic growth rates have since declined incrementally so that today a major sector of the economically active population employed in the formal sector survive by the unsustainable exploitation of the natural environment. In some ways South Africa is like all other countries caught up in the realities of a competitive global economy, subject to the same universal environmental and ecological threats, yet in other ways it is unique and incomparable to any other country. South Africa continues to grapple with social ills due to an under-educated and under-skilled population ill-equipped to drive a developing economy; large-scale unemployment; poverty; corruption;...
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Read MoreIdeas to promote your business
Promotion is an important element of the marketing mix of any business. There are thousands of ideas to promote your business, whether it is a new start-up or an established concern. Revise your marketing plan; Revisit your research and development strategy; Refine your target audience and unique selling proposition (USP); Expand your product and service offerings; Update your business cards, website, brochure; Write an elevator pitch; Rent a booth at a trade show; Launch a direct mail campaign; Expand your social media management; Set up Google Analytics on your website and blog; Start a customer relationship program; Write a book; Design an innovative logo that compliments your business and builds your brand; Design branded letterheads, envelopes, business cards and office stationery; Design an illustrated brochure or pamphlet that looks professional to explain the benefits of your product or service. Ensure that the print quality is superior Register a domain name and create a Web site that draws attention. If possible, include e-commerce capability; Get listed on all major search engines; include carefully selected words in your Meta tags that prospective customers might enter during a search when looking for the type of goods or service you provide; Advertise in the type of magazines or newspapers your target customers are likely to read; Print handbills (leaflets printed on size A6 sheets) and place on car windshields and in mailboxes; or hand out at traffic lights; Customize your marketing to niche customers. Talk to potential customers to find out what their needs are, their likes and dislikes, and what they are prepared to pay for a product or service like yours; Build a client database to collect information about clients, such as their comments about the product or service, regularity of orders, complaints, etc.; Design branded promotional items such as t-shirts, mugs, pens, balloons, calendars, fridge magnets, etc. that can be distributed to customers in your area, at a trade show, etc.; Run a special offer on your Web site and mail a complimentary (branded of course) promotional item with each order; Sponsor a community event, which will give your business exposure in your immediate community and is a great opportunity for word-of-mouth advertising; Consider donating branded t-shirts and caps to an underprivileged sports team; contact the editor of your local community newspaper to request media coverage; Build solid relationships with suppliers. Being on friendly terms with them will encourage them to promote your business to other clients; Send out...
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