Spaza's worth R7bn

Spaza Shop

JOHANNESBURG – In an industry that turns over more than R7bn annually, spaza shop township micro-entrepreneurs have a potential which cannot be ignored. Emerging as micro-convenience stores during apartheid there are now an estimated 10 000 spaza-shops spread across South Africa according to the South African Cities Studies conference paper published in 2011.

The Absa SME Index indicates that business ownership is on the rise but a majority of businesses in South Africa, two thirds, employ only one person. On average spaza shops employ between one and four people. The potential for sustainable job creation is evident. However, spaza shops exist in the informal economy meaning they exist outside of the institutional and regulatory frameworks.

Spaza shops range from survivalist endeavours to complete mini-supermarkets. Christo Botes, executive director at Business Partners says that the challenge with survivalist entrepreneurs is that they have no vision and often do not have the skills or training to move their business to the next level.

This is the current challenge being faced by local spaza shop owners in townships who are being forced to close down or are bought out by foreign spaza shop owners. The different approach to business adopted by foreign spaza shop owners has allowed them to compete against local spaza shops.

via R7bn worth of untapped township potential – MyBusiness | Moneyweb.

SAICA extends tax offering to public

Institute of Chartered Accountants Australia -...

Johannesburg, Wednesday, 25 April 2012 – As tax legislation continues to be more complex and turbulent, the South African Institute of Chartered Accountants Saica has launched the Tax Suite, a tax knowledge-based platform aimed at keeping local practitioners, advisers and just about anyone that has anything to do with tax abreast of international and local best practice.Offered to both Saica members and non-members alike, the subscription-based web product is a comprehensive and broad tax resource offering on the South African market, backed by the countrys authoritative chartered accounting body.

Chartered Accountants already have access to Saicas normal tax resources, but the Tax Suite goes beyond this. It provides a great opportunity for all participants in the tax space, not affiliated with the institute, to receive a range of services at CA-quality levels not yet seen in the marketplace,” explains Saicas Standards Senior Executive Muneer Hassan pictured.According to Hassan, no other tax resource on the market delivers the same value-add that the Tax Suite does. Not only is there value inherent in court case analyses, Tax Suite newsletters and journals, and in the business matching feature, but the Tax Suite is staffed by a uniquely qualified team.There are, according to SARS, more than 34,000 tax practitioners in South Africa. Hassan believes that the Tax Suite service will find wide appeal from both members who practice in tax, and from a much wider audience of tax practitioners. “We have already received positive feedback from the legal fraternity, and the broad tax advisory industry. There are competitive offerings,” says Hassan. “but none that have the depth of staff, or value that our Tax Suite provides. We are confident that this service will become South Africas premier tax reference site in a short space of time.”

via Moneywebtax – Saica extends tax offering to public – Integritax.

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Big chance for small business

Small Businesses Girvan still has many small i...

BizLaunch was unveiled yesterday in Johannesburg by Clive Pintusewitz, Standard Banks director of small enterprise development.

The new package, aimed at businesses within their first year, will enable small businesses to keep track of their cash, pay suppliers, deposit funds into a business bank account and get basic advice – all for just R90 a month.

Businesses that have been operating informally can also get BizLaunch, even if they have been in existence for over a year.

Other impediments that lead to closure include access to funding and markets, and cash flow management.

“We know that there is a big issue with small businesses and we want to see them grow. What we have done is to look at the needs of those businesses and packaged a solution that brings a lot of support to those businesses,” Pintusewitz said.BizLaunch offers unlimited transactional banking. They are targeting 80000 businesses in the current financial year.

“We have partnered with Softline Pastel, who are the leading accounting software to offer MyBusiness Online, which is a solution built specially for start-up businesses. What we have seen is that one of the reasons businesses fail is because they cannot track their finances and cannot manage invoices and payments,” he said.

“In our interaction with our clients we have learnt that small businesses fail because they do not get revenue. The second is managing your cost and stock. Also, when they have ordered the stock and the customers take time to pay, it creates a cash-flow problem.”

BizLaunch will be available at all Standard Bank branches.

Pintusewitz said for those who do not have access to a computer there was a mobile version if they have a smartphone, and soon an offline version will be available.

via Big chance for small business – Sowetan LIVE.

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SA business growth choked by rules and red tape

Singapore Chinese Chamber of Commerce & Indust...

OVERREGULATION and red tape are the biggest constraints to business expansion in SA, according to a survey by accounting, audit and advisory firm Grant Thornton.

The survey was based on the views of CEOs, chairmen and business owners in the fourth quarter of last year.Red tape was now as pervasive a problem in SA as in other Brics Brazil, Russia, India, China and SA countries, Grant Thornton Durban managing partner Deepak Nagar said yesterday.

The survey found 37% of privately held business owners in SA cited red tape as their chief constraint, followed by a lack of a skilled workforce, at 36%.

Durban Chamber of Commerce and Industry CEO Andrew Layman said the results were “spot on” and SA’s regulatory environment, for small businesses in particular, needed to be reviewed.

The increasing complexity of regulations such as additional tax or governance requirements, labour issues, black economic empowerment, the time taken to register companies or change directors’ names was stunting the growth of business, Mr Layman said.

The second-biggest constraint to business globally was reduced demand for products — the effect of economic problems in the US and Europe. In SA, the second-biggest constraint to business was a shortage of skilled staff, said Mr Nagar.

Keith Brebnor, CE of the Johannesburg Chamber of Commerce and Industry, said it had become “very intimidating” for young people to start a small business in SA because of the onerous regulatory environment. Dealing with crime and a lack of skills also added significantly to the cost of doing business in SA, he said.

via BusinessDay – SA business growth ‘choked by rules and red tape’

SA to host 2012 business congress

Image from the Central Business district of Jo...

Small business in South Africa will get a boost next year when the country hosts one of the biggest international business congresses in Johannesburg.

Representatives from the US, Europe and the rest of the world will gather at the Sandton Convention Centre between 15 and 18 September 2012 for what will be Africa‘s first International Small Business Congress (ISBC).

The congress, which is hosted in partnership with The City of Johannesburg, Foundation for African Business and Consumer Services, Khula Enterprises and Finance and the Small Enterprise Development Agency, will showcase activities surrounding small business development in South Africa and around the world.

According to 2012 congress director Septi Bukula, the focus of the conference is to expose small and medium enterprises (SMEs) to business opportunities in South Africa and in different parts of the world.

via SA to host 2012 business congress – MediaClubSouthAfrica.com