Calling on entrepreneurs; what can be done with a R1000?
With unemployment in South Africa running close to 40%, the only way that jobs will be created is through micro enterprises. These small entrepreneurs though need help and that’s where Business Beat comes in. The project was started in 1996 in as an empowerment initiative by Deloitte and Touché, a leading accounting firm in South Africa. Essentially it is a small business support advisory centre. Deloitte and Touché cover the basic overheads of the office but consultants are paid according to the business they get.

Start a business with only R1000
Thabo Zwane who works as a consultant in the Cape Town office of Business Beat says their R1000 challenge started as an idea from one of the consultants Gavin Chait. “The idea to show potential small business owners that they did not need a lot of money to start their operations.
“Small entrepreneurs were complaining that they had no capital when starting out their ventures,” says Zwane.
That challenge entailed giving a R1000 to members of the public who submitted a business proposal approved by a team of consultants at Business Beat.

Getting off the ground
He says: “An unemployed mother can start a small business, selling vetkoek to school kids, quite easily; she can make a profit from the first week because there is a captive market.”
“Our criteria on judging the winners were how quickly the business could be set-up, the viability, and that the idea be a simple one that does not require a lot of resources.”

We’re off
The eventual winners get a full business plan from the consultants at Business Beat and continued support with materials and information on things like opening banking accounts and setting up a debtor’s book. The only obligation on winners though is that they bring back invoices. The programme lasts for three months after which it is expected that businesses will be self-sufficient.

Giving support
Business Beat also runs another programme whereby they approach 10 small enterprises, giving them free consulting on whatever problems they may encounter in their operations.
“This is done in partnership with the University of Cape Town’s Business Science faculty whereby students from their school get hands-on experience in coaching, thus getting a feel for the ‘real world’. This is all done for a small fee.
“The students also help them with marketing strategies, small entrepreneurs need resources,” says Zwane. He adds that because Business Beat is run as a business they have to go out there to small businesses to convince them of the services they offer.

Changing a mindset
Zwane says that what they’re trying to do is change the mindset of people to start their own businesses rather than seeking employment. “Starting your own business need not be a complicated affair, says Zwane.
“I’ve seen people supporting themselves through selling food at taxi ranks; the simplest idea can sustain the unemployed all they need is a bit of help and motivation”

Service sector
Many of the small enterprises in South Africa choose to go into the service sector, seeing a gap in the market and being the first to fill it or competing with an existing player. Zwane though says that most businesses in the service sector take longer to become profitable because initially a lot of work goes into finding the markets and doing research.
The boom in tourism to South Africa has also increased the number of enterprises that provided services in this sector like taxi shuttles and Bed and Breakfast establishments.

Funding
The competition was a success because Business Beat also got funding from the Cape Town City Council’s Economic Directorate, initially Chait funded it out of his own pocket because he was passionate about the idea.