So, you want to start your own business in 2011? Entrepreneurs are often spurred into action by their New Year’s resolutions to establish their own businesses at the beginning of the new year. But this enterprising spirit and a good business idea are not enough to ensure small business success; entrepreneurs must do their homework properly if they’re to survive the first two critical years that traditionally claim most SMMEs.
This is according to the Small Enterprise Development Agency (Seda) which warns that necessity entrepreneurs, where entrepreneurial thinking is based solely on subsistence or survival and not opportunity, are most at risk of failure.
“A South African study conducted in 2004 showed that 40% of SMMEs fail within the first year and 60% within the first two years. We know the majority of these businesses are usually necessity enterprises. To succeed, entrepreneurs must become opportunity business owners – where ventures are based on positive business opportunities that have been properly identified and that will be harnessed through their business efforts going forward,” explains Seda CEO, Hlonela Lupuwana.
But how do entrepreneurs make this transition and turn those entrepreneurial dreams into successful, sustainable businesses? By seeking professional assistance from the outset and accessing the right business resources, training and mentorship.
“This is where Seda comes in. We understand small businesses, entrepreneurs and their needs. We know what challenges they face and how best to overcome these obstacles. As such we have a range of SMME products, services and solutions all designed to get small businesses off on the right footing,” Lupuwana adds.
These solutions include the Seda Business Talk and Business Start programmes, which are specifically geared towards meeting the needs of pre-start up and start up enterprises. Between them, they cover everything from testing the viability of business ideas and registering new businesses to how to approach financial institutions for funding.
They also include educational courses on start up training, offering practical steps to plan, prepare, start and manage a small business; basic business skills, to improve business management capabilities; and cooperatives and franchises, covering the basic principles of operating a cooperative or acquiring a franchise.
Entrepreneurs also have access to trained business advisors on a one-on-one basis, who offer relevant business assessment tools and provide guidance and advice on starting and running a small enterprise.
“We literally guide entrepreneurs step-by-step through the entire process, to ensure they have all the support they need. This approach really works, as we’ve seen with the host of successful SMMEs that have passed through these programmes over the years,” Lupuwana concludes.
So if starting your own business is a New Year priority, make sure one of your resolutions is to visit Seda, and get your new venture off to a flying start.
ISSUED BY The Small Enterprise Development Agency
CONTACT MEDIA: Lindokuhle Nkomonde – Manager: Corporate Communications and Media Relations
TEL 012 441 1210/ 0827906108
DATE Tuesday, 14th December 2010