SABusinesswarrior has been in business in South Africa for the last 21 years. Our commitment towards the South African business society has moved us to start this website in an effort to provide you with free accurate business information on a variety of business issues. We want to share information, identify small business opportunities and provide links to reputable business consultants in South Africa, entrepreneurs, property investments and South African financial institutions.
We hope that you will share our business philosophy of allowing everyone a place in the sun and share your own business ideas, business links and business opportunities with us. South Africa remains a land of opportunity for the entrepreneur that is prepared to do his homework and take a few calculated risks.
Small Business South Africa is being hampered by adequate access to the internet and the problems with broadband availability in South Africa. Hopefully we will see an improvement in the situation by 2010. Of concern is the lack of adequate good quality business information and business resources available to Business South Africa on the internet. We hope to improve that situation by entering this niche market and becoming a trusted source of business information and business resources to Business South Africa.
Small, Medium and Micro Enterprises (SMMEs) contribute around 40% of South Africa’s gross domestic profit and employ more than half of the private sector work- force. It is estimated that as much as 80% of new jobs in world economies are being created by SMMEs, making Small Business South Africa a key player in the future growth of our country.
SABusinesswarrior plans to offer clear explanations, logical suggestions and expert advice for Small Business South Africa owners.
The South African government recognises the need for Business South Africa to grow and aims for a 6% annual economic growth rate. As a result government has implemented several business incentives in South Africa to curb the high unemployment rate. The main goals of these incentives are to promote export, spatial improvement, industrial growth, enterprise development, and decrease unemployment. The incentives are geared toward foreigners who want to invest in or open a new business in South Africa.
Certain zones have been identified as prime priority and Johannesburg as part of the Gauteng province, is one of them.
The Department of Trade and Industry (DTI), and the Industrial Development Corporation (IDC), oversee the business incentives schemes in the form of non-tax grants. The incentive grants are limited to three years for any project. Ventures from the following segments qualify: manufacturing; agriculture; aquamarine; biotechnology; tourism; IT; communications; agro-processing; cultural enhancement; business development; motor industry; textiles; engineering, and science development. The allowances can be grouped under the following categories:
Broad-spectrum incentives
The general assistance takes the form of electricity allowances for larger companies, assistance programs for industrial originality and joint ventures, expertise support programs with concessions for instruction of new employees, as well as the skill and workforce program to encourage the transferring of knowledge. This applies to businesses that endeavor to expand their operations. Compensation is limited to half the cost for training the new workforce.
Economic incentives
The IDC offers below average interest rates on business loans for sizeable endeavors based on the feasibility of the projects. They also provide incentives for small enterprises through awards and compensation in the third year of operation. The allowances are based on the ratio of worker salaries to development expenditures.
Foreign venture incentives
DTI provide allowances to foreign companies to a maximum of $150 000 for each project where capital goods, equipment, and machinery are brought into the country for the purpose of establishing a business in South Africa. This decreases the initial setup or relocation costs of businesses by covering a portion of the shipment expenses of the equipment.
Industrial zones
A number of industrial development areas have been identified for capital investment and government assistance. The aim is to provide facilities for export related industries. Under the scheme, businesses that fall in one of the zones can apply for tax-free imports of capital products.
Assistance for small and medium enterprises
The small and medium business assistance program is aimed at employment creation, investment promotion for tourism, manufacturing, IT, agricultural developments, and sustainable business projects. Compensation for a maximum of 10% of the original investment cost is provided to these businesses.
Manufacturing incentives
Companies with manufacturing as their exclusive operation can apply at the Regional Development Offices for a tax break for up to six years. They must apply for project approval before they start with the venture.
Urban development areas
Several urban zones have been identified for renewal and development. The aim is to promote inner city regeneration across South Africa over the next 10 years. Johannesburg and Cape Town are two of the sixteen cities. The incentives are in the form of accelerated reduction grants. A tax deduction of 20% is provided in the first year of renovation or development.
Companies that own commercial or industrial property in the city zones can apply at the city councils for compensation when they refurbish property in the areas. The program also includes residential property and the construction of new buildings.
Tactical investment assistance
A division of the DTI, called the Enterprise Organization provides and investment incentive scheme for industrial endeavors that exceed R50 million ($8 million) in eligible industrial resources. The purpose of the program is to draw foreign private entity investment. Businesses involved in manufacturing, IT, and research qualify.
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The opinions, views, information, articles, references, competitions or offers mentioned on this website are published without any responsibility whatsoever on the part of Business South Africa. The material provided is based on the best available information at the time of publishing. Business South Africa hereby disclaim responsibility for any material published on this website which may be incorrect, unacceptable or inaccurate, and shall therefore not be held liable under any circumstances, for any loss, damage, costs, expense or injury (including without limitation direct, indirect, incidental, special) that results from a user or other third party, using any material herein.
The Secret of Staying in Business
1. Have a Business Plan that is well researched and updated frequently. The plan is based on what the market wants, not what the entrepreneur needs and is grounded in reality, not fantasy.
2. Maintain an efficient budget. Keep overheads under control and office infrastructure to the minimum.
3. Manage your business. As entrepreneur-owner, be present and take a hands-on approach to management.
4. Stay in touch with you customers. Through surveys, phone calls, and follow-up, ensure that clients keep coming back and that they are satisfied
5. Have a balanced life. The successful entrepreneur does not spend excessive time at the office and is able to recharge his batteries frequently providing the staff a fresh outlook
6. Train staff well. Document procedures an have written roles and responsibilities that are known by all
7. Fund the business is well. Ensure that there is plenty of working capital to fund the day-to-day business operations and accounts payable.
8. Be committed to the business. As an entrepreneur your personality must be well suited to manage the business. Win the the support and respect of family and friends.
Business South Africa, Small Business South Africa, Business solutions for Entrepreneurs, Business opportunities, business plans, business
