The 2016 edition of the Gauteng Business and Investment Guide is the premier business and investment guide for the Gauteng province and the Gauteng Growth and Development Agency (GGDA). In addition to detailed profiles of key provincial organisations, including the GGDA, the Automotive Industry Development Corporation Centre (AIDC), the Gauteng Investment Centre, the Gauteng IDZ, the Gauteng ICT Park SEZ and Constitution Hill, this edition includes well-researched economic and demographic data on the province, as well as insights into the province’s five development corridors and the new industries and development nodes in these corridors; a focus on Gauteng as a global city region; and key growth sectors for the province.
INTERVIEW Supporting
INTERVIEW Supporting small enterprise development Friedl Claassen and Wilhelm Pienaar of Standard Bank Gauteng’s Small Enterprise Development division provide some insight into what’s happening in the world of small business. What is your division’s target market? We look after the Small and Medium Enterprises segment for the Gauteng Province. This market segments consist of businesses from the start-up phase up to businesses with an annual turnover of R20-million. What is the core value proposition that your division offers? We have two value propositions, the first being for start-ups with an annual turnover of up to R5-million and the second is for businesses with an annual turnover of between R5-million and R20-million. Have you seen any change in the rate of success of small businesses in the last few years, given the increasing support from government and numerous agencies to support them? The assistance to new businesses by government and agencies certainly makes a difference, but it is not the main contributing factor. The management of each business or small enterprise remains without doubt the single most important factor that determines the success or failure of a business. From your experience of helping clients, what are the signs of a customer who is likely to succeed… and what are the signs of a customer who is more likely to face struggles to keep their business going? Success is definitely determined by the management team’s ability to actively manage the business’ cash flow cycle. Cash flow is the key driver for business sustainability and, as a consequence, not Wilhelm Pienaar Friedl Claassen pro-actively managing this component for start-up businesses is generally detrimental to the future profitability and even survival of the business. What are the main reasons that more small businesses are starting in Gauteng? It would have to be because of the unemployment factor, coupled with a bigger emphasis on entrepreneurial thinking. Another element to remember in terms of the current financial climate is that there is a large portion of the “working class” that now operate side-line businesses. What are the small business areas that are proving successful on a broad scale? The key sector at this point in time is franchising, and the success of these ventures is largely due to the fact that there is serious due diligence conducted before there franchisees are able to start up their branch of the franchise. It’s important for any business that the business environment, location and the competitive advantage is analysed with great care before embarking on a financial venture, and when it comes to franchising this is done by the franchisors. Because the franchisors have the overall GAUTENG BUSINESS 2016 98
PROFILE success and reputation of their brand at stake, this ensures that the due diligence does its job. This is such an important lesson for any business person entrepreneur to learn from. Another factor which is helping franchising to offer franchisees a competitive advantage is the fact that franchisors also negotiate preferred prices in terms of raw materials and or stock. THE ASSISTANCE TO NEW BUSINESSES BY GOVERNMENT AND AGENCIES CERTAINLY MAKES A DIFFERENCE, BUT IT IS NOT THE MAIN CONTRIBUTING FACTOR What are the areas of opportunity you believe offer the greatest opportunities for small business success in the next two to three years? Timing is really the key in business - it’s about starting the right business at the right time. Businesses that seek to investigate and address a specific niche will also always be successful if they have done their homework right and have been guided by their head and not their heart. Management will, however, always remain a key component in the success of any business of any size. Have there been any recent developments or innovations that your division has introduced? Well, we’ve recently introduced industry specific solutions for, example, tradesmen and the School CVP, along with our technological innovations such as Blue MObi. How has your division helped to open doors for your clients to do business in the rest of Africa? Standard Bank is well represented across Africa and forex transactions are still governed by Exchange Control. It is, therefore, difficult to have a one-sizefits-all approach. We do, however, have a team of experts that can address any and every Forex requirement that could arise for our clients. Any specific success stories that your division is proud to have played a part in bringing to fruition? We have created the Innovation Hub where we assist young and upcoming entrepreneurs by providing guidance and coaching in terms of critical focus areas. We also get involved with certain college campuses in identifying and supporting up and coming young entrepreneurs. CONTACT INFO Janice Noble Gauteng Province | Marketing Coordinator Tel: 011 601 4311 | Mobile: 076 157 3019 Fax: 011 622 9858 Email: Janice.noble@standardbank.co.za Website: www.standardbank.co.za 99 GAUTENG BUSINESS 2016
