The economic crisis has caused many people to lose their jobs, prompting some to venture into the daunting arena of entrepreneurship in an attempt to start their own business.
The economic crisis has caused many people to lose their jobs, prompting some to venture into the daunting arena of entrepreneurship in an attempt to start their own business.
This may seem like a clever solution to unemployment, but in reality, it is no easy feat. Firstly, a feasible business plan has to be made, which is then presented to a bank in the hopes of warranting a loan.
Then, depending on the type of business, various documents need to be gathered and signed, fees need to be paid to several government departments, and permits need to be granted. After all this, the business still relies on other people the public to remain afloat.
In November 2005, Grahamstown resident Wally Human started JC Shuttles, a service providing transport for people to and from Port Elizabeth, East London, as well as many other towns in the province.
“My son was working for another shuttle service in Grahamstown, but he did not get paid, so I decided to start the business for him,” said Human.
“It was quite hectic in the beginning. Lots of people were messing it up, and the pricing wasn’t right. But eventually we managed to build up the business.”
Human initially did not need funding for the business as he was using his own car and money. But when the business grew, more vehicles were needed, and he eventually received funding from Toyota.
Another success story is that of Pirates Pizza, the student business which took off in 2007 with two students making and selling pizza from their university residence.
In August 2008, they opened shop at 38 Somerset Street and in April last year, relocated to a larger venue at 49 African Street. “We originally used our own money, but later got funding from institutions.
This was very difficult. It took about six months for the funding to come through because it took time to convince the investors.
This was the most difficult part of the process,” said manager Chris Marshall. Some businesses struggle more than others in starting up.
Grahamstown resident John Falconer started John’s Shuttle Service after struggling to get a job with JC Shuttles. “I started using my own car, but this was not easy.
I had to pay a fee to the Department of Transport and get insurance for the passengers,” he said. Falconer hasn’t applied for funding as he uses only one vehicle.
He is still waiting to receive an official permit to run the business. Some people make a business out of helping others to start a business.
SMME (Small, Medium and Micro-sized Enterprises) Incentives, started by small business owner Kumaran Poonan, is a website (www.smmeincentives. co.za) aimed at assisting those who wish to start their own business.
The website points to the fact that there is R4-billion worth of funding and assistance available to small businesses, but that many people do not know this.
Poonan aims to supply entrepreneurs with valuable information about various business opportunities in the country and to suggest funding options and sources.
Because of the challenging process of starting a small business, it seems as if the easier option is to actually continue looking for jobs at existing companies, despite the current economic climate.
But with the right amount of determination and organisation, it has been proven that starting a small business and successfully, is possible.
