SMME NEWS 10 21 December 2017 Informal traders are contributors to the economy Marvellous Zondi On 13 November 2017, EThekwini Municipality came under fire on social media following a post showing members of the Metro Police Unit, Cleansing and Solid Waste, Area Based Management Unit Urban Improvement Precincts and other units removing street hawkers and vandalizing their properties in precinct of EThekwini Central Business District. According to the post accompanying the images of this operation, this was done ‘in a bid to ensure a clean, improved public realm in the city centre.’ Social media users lamented the move citing that it uncalled for and is killing the livelihood of those trying to make a living. According to the municipality’s bylaws on trading, employees of the municipality such as Metro police and all other aforementioned officials are specifically authorised by the Municipality to render the services they were doing on the day. Provided that for the purposes of search and seizure, where such person is not a peace officer, such person must be accompanied by a peace officer. The bylaws also include objections such as that the Municipality has to enable access to job and entrepreneurial opportunities within the informal trading sector, harmonises the relationship between the informal trading sector and the formal trading sector and ensures the health and safety of the public according to the city’s bylaws. Following the incident, SMME- News did some research to find out how much time is invested on capacitating informal traders about such bylaws, their rights and routes to follow before doing business within the precinct of EThekwini CBD. As of now, the municipality is rolling out the ‘Township Business Workshop’ which started on 07 November 2017 and will run until 05 December 2017. Areas which have been attended includes Nagina, Inanda Bester Hall and Inanda KwaNgoqokazi. The municipality will roll out the programme in the following areas next: Umlazi, Clermont, KwaDabeka, Durban Central, Cator Manor, Chatsworth, Umbumbulu, waterloo, Hammersdale, Newlands West and Mount view – Verulam. Informal traders are an integral part of the society, they provide convenience to consumers and they also create jobs for themselves; provide for their families and contribute in uplifting the economy. This incident highlights the need to capacitate them more frequently and ensure that they are also treated fairly even when being searched for permits. Informal traders and SMMEs are the only way South Africa can break away from being a nation of ‘handouts’. Informal Beachfront informal traders and rickshaw rides are situated in marine parade from 8h00 to 17h00. trades in beachfront are booming this festive season By: Nomcebo Mncube Do you live in Durban, close to the beach but you don’t know what business to start? Living in the beach presents numerous unique business ideas with which you can make money from this festive season. Informal trade is a rapidly growing feature of the South Durban Basin economy. As we all know that December is a tourism month in Durban. This is due to the fact that beachfront is always having a lot of tourist attraction and activity. This means there is money to be made from the needs of these tourists and fun seekers, when specialised products and services are offered. Beachfront has alot of small business where people showcase their work. They are making money by selling unique Items and local merchandise. Unique items includes: traditional outfits and beads jewellery, hats branded with I love Durban, and traditional sandals, commonly known as Izimbadada. Local merchandise consist of: swim wear, Sun glasses, caps, flip flops, towels and etc. The entrepreneurs in beachfront told the SMME News that most people that come in Durban they usually buy traditional sandals, hats and beads jewellery. Because they find them attractive and some of these items are not available in their cities and hometown. Beaches are usually more active during certain periods like summer. Therefore informal trades in the beachfront are currently making more money. Like any other business informal traders in beachfront face challenges, as they are street vendors. They are easily affected by the weather, because when it is raining they are not operating well and they do not get many customers as well. However, not all people in beachfront are selling. There is another creative and fun activity that people of Durban are making money from, which is Rickshaw ride. Rickshaw men are dressed in casual clothes, over which they wear brightly-coloured aprons, topped off with large leopard-print headdresses decorated with ox horns and hanging sashes. Each rickshaw men has his own rickshaw carts, which is normally painted to match the print of their costume with patterns that represents Zulu culture. Rickshaw puller, who asked not to be named told the SMME News that in summer the business is going well, because there are a lot of people coming from other provinces. They want to experience the rickshaw ride.
21 December 2017 Migrant Entrepreneurship key SMME NEWS 11 for SMME development strategies Tinky Ogle The unemployment rate in South Africa has sadly hit its highest rate ever since 2003; as a result government’s emphasis on SMME development has also taken the right of way. The urgency lies in the fact that the current availability of jobs is not corresponding with the rising number of job seekers flooding the market, hence many job seekers are considering entrepreneurship for their livelihood. Entrepreneurial growth and development is promoted due to its capacity to create jobs, enhance economic development and support conditions for a prosperous society. It creates and presents opportunities for people to participate in the growth of the economy and take responsibility for their own financial well-being. It is playing a critical role in absorbing labour, penetrating new markets and generally expanding economies in resourceful and innovative ways. SMMEs encompass a very broad range of firms, from established traditional family businesses employing over a hundred people (medium-sized enterprises), down to the self-employed survivalist from the poorest layers of the population (informal microenterprises). Whilst the upper end of the range is akin to the SME population of developed countries, statistics reveal that an immense majority of SMMEs are concentrated on the lowest end. Meanwhile, the success of migrant entrepreneurs creates rather curious and interesting observations as many studies and statistics illustrate that migrant entrepreneurial activity SMME activity in a Cape Town township. Picture Henk Kruger in local communities contribute significantly to the South African economy. It contributes to job creation - as migrants are 90% more likely to employ South Africans. Furthermore, they rent spaces from South African landlords, thereby generating income for them; service the needs of the communities that they operate in, and contribute towards the overall GDP growth of the country. Sicel’mpilo Shange- Buthane, from the Consortium of Refugees and Migrants in South Africa (CORMSA) concurs that, “migrant entrepreneurs contribute to our economy when they pay taxes, and when they buy stock as they have to add VAT to their products”. Moreover, statistics reveal that a whopping 75% of the SMMEs in South Africa are failing dismally, but migrant businesses generally tend to demonstrate trends of success and stability. This is despite challenges such as the lack of access to financial services, hostile municipal regulators and the reactions of some locals to migrants. This presents a number of lessons from migrant entrepreneurship that can be directed towards enhancing SMME development strategies for South Africans. Sicel’mpilo explains that CORMSA, “...see(s) this as an opportunity for core learning between South Africans and migrants in terms of how to run a business and ensure sustainability, that some of our brothers and sisters have actually been struggling with.” When asked about the response of the government to these migrant entrepreneurial activities, Sicel’mpilo explained that the response “has been mixed, especially because of the xenophobic attacks in townships... there is a believe that they are taking away opportunities that South Africans could be using. But the fact of the matter is that some of these spaza shops are actually owned by South Africans, and they rent them out to foreigners. Some locals have admitted that they have been struggling to maintain their own businesses within the community and rather have a secure income as opposed to running the business. So it is a shame really that some officials do not support these activities because if they could invest in building collaborative work, it will create even more opportunities for both the locals and migrants to succeed.” Voice your opinion Dear SMME News, I would like to raise my concern with the service from Standard Bank, where I hold my business account. My account is held at the Musgrave branch and I visited the one on West Street to request a letter confirming the signatories to the account. They refused to assist me and asked me to visit my branch to access that letter. So my concern is, what if I was a visiting person from another province? I appeal to SMME News to establish a complaints desk where we as entrepreneurs and small businesses can lodge issues of dissatisfaction. Anonymous Dear Team, I have been reading SMME Newspaper from the first Issue and I make sure that I always read it. You are doing a great job and always keep us informed about the issues that affects Small business. In Ndwedwe area, if you do not work for the municipality, you have to travel a long distance to your working place. My Problem with that is, why there is no organisation out there to assist the SMMEs and lead them in the right direction. Ensure that every project that is being implemented in Ndwedwe area benefits the unemployed youth, Ndwedwe SMMEs and with the, the Ndwedwe economy will grow and there will be job opportunities. With an organisation like that, we can submit proposals to the municipality to give us first preference and create our own database for them to choose from.There is an opportunity in the agriculture sector where by the farmers within Ndwedwe can supply the shops such as Boxer and there is a proposed Spar next to the Taxi tank with Vegetables. There is plenty of land and support from the department of agriculture but Ndwedwe residents can only realise this through this organisation that we do not have. In the Construction sector, there is a lot of construction projects in Ndwedwe where contractors can gain a lot of assistant. In addition, if you walk around Ndwedwe road, you will notice that the roads needs a lot of maintenance with damaged kerbs, Manhole cover, blocked manhole, maintenance in the municipality buildings, all those can create and sustain employments within Ndwedwe area. SMME News please advise and assist us. Avid Reader