DA to make path easy for entrepreneurs

2012-08-13 15:29

Cape Town - The DA plans to make it easier for people to start their own businesses to grow employment, its leaders said on Monday.

"We believe that South Africa's failure to grow the economy and create jobs is, in part, a failure to cultivate a nation of entrepreneurs," Democratic Alliance parliamentary leader Lindiwe Mazibuko said in Cape Town.

Mazibuko and her fellow MPs blamed the ANC for strangling citizens' entrepreneurial spirit through red-tape.

The party was unveiling its plan "Building a Nation of Entrepreneurs" - part three of a five part strategy on jobs and growth.

It outlined how the party intended ensuring small, medium, and micro enterprises (SMMEs) get off the ground and thrive.

Mazibuko gave several examples of how small businesses could drive job creation.

"In the United States, SMMEs have created 80% of new jobs over the last 10 years, and form 98% of all employer firms," she said.

"In India, the figure is 90%. In Ghana, it is estimated that 92% of all the businesses in the country are small businesses, and they contribute about 70% to the national GDP."

Mazibuko said in South Africa, firms with fewer than 50 workers accounted for 68% of employment.

If the DA were in power, it would ensure less red-tape and reduce costs to start a business.

"The DA will do this by establishing business registration one-stop-shops; implementing regulatory impact assessments to gauge costs, benefits and risks of all new legislation," she said.

  • dimitri.tsafendas - 2012-08-13 15:45

    What is the Red Tape if i may ask Ms Mazibuko? i use to help small business people with registering businesses and for tax, it was very simple. what you need to open up and i know you won't because those are your handlers, is the system used by the banks that when you want to build your house, you need registered people when the actual work is done by poor labourers who take nothing home and the rest remais with the certificated individual. it happens with most services, roofing, tiling, panel beating etc, poor guys work they soks off and some cigar puffing punk pockets everything, now that what you need to get right for us to realise Economic freedom.

      mofstok - 2012-08-13 15:51

      "The misery of being exploited is no where near the misery of not being exploited." This country has an overabundance of unqualified labour. If it is so easy to start a business and take all the financial risks, please let the "poor hardworking" labourers start their own enterprises then. Why must one pay a lot of money for sand, when so much of it is available? Why must we pay so much for labour when we can have manufacturing done in China and import our products into SA for cheaper than it is to manufacture it here? Just watch the unemployment skyrocket unless serious labour amendments are made. We are part of a global economy, whether you like it or not.

      alan.gernet - 2012-08-13 15:51


      wo0two0t - 2012-08-13 15:52

      What’s stopping you from puffing the cigar - the thing is most people don’t realise the risk involved they just think it’s as easy as puffing a cig unfortunately business isn’t that easy.

      donthato - 2012-08-13 15:55

      Here's a can of RedTape for you: In order to open a Bank Merchant Profile (for processing online payments), one requires a normal business account with a 6 month history. So what this essentially says is that: Dimitri, we want you to go for gold but just remember, you will not be able to be paid, unless you have been in operation longer than 6 months. Rrrrrright. (This is just a minor glitch). To fire people in this country is a moerse process, irregardless of the fact that the person in question may be costing you R1000s in unproductivity. We do need some seriosu review surrounding our business macro environment. I read the DA BluePrint. Its all promises sadly, but truth be told ~ its better than nothing / contradicting plans from the governing party.

      dimitri.tsafendas - 2012-08-13 16:13

      I have personally assisted a young black business man (well after my assistance) and he now has a lucrative contract with Eskom, this is teh same guy who use to earn R2500 working for a cigar puffing guy who did nothing except secure contracts through his certificates. i'm proud to say the guy now has a lucrative contract that i can only dream off and works hard to keep it. some business do not require too much financial risk you talking about fortunately, it just requires, knowledge and skill, which most guys you see packeged behind Bakkies in morning traffic have but do not know how to use it. there's more i wanted to assist, but they did not want to compete with their former bosses and are still earning peanuts while those who took my advice are much well off than i can ever be now. but i did not make them succesful, the ymade tehmselves to be succesful, i only assisted in pointing into the right direction and glad i did it!!

      alan.jerrold - 2012-08-13 16:22

      Tsafendas, your very nom-de-plume, Verwoerd's assassin - shows the depth of hatred in your heart. And this guy you assisted to 'get a lucrative contract with Eskom' sound suspiciously like you using political connections. Whatever. But how can you even think of arguing against the fact that the ANC's labour laws are strangling business? People much smarter than you or me have analysed this and clearly stated it is true. Just try firing an incompetent or lazy worker for a start.

  • phumi.ntlabati - 2012-08-13 15:57

    The only red tape the entrepreneurs have in the Wester Cape is the DA and its neoliberal hogwash policies. Our people including the entrepreneurs Mazibuko is talking about need access to electricity, water and proper sanitation. That is why they are braving the cold in Lansdown road! Our people also want to be over weight and well fed with shiny chicks like Mazibuko and her fat-cats all white male cabinet! The DA must get with the programme by coming down to the people and stop watching our peoples struggles from CCVTV's in stuffy air-condition offices!

      heinrich.spreeth - 2012-08-13 16:03

      Yes ,Give free electricity and water to all. Give land to all. Then all problems will be gone. Come one!!? By the time everyone has power and electricity for free you will be paying 110% of you salary on tax. Education and creating work opportunities should be priority number one!!! Doesn't matter who is in charge of the country.

      richard.hipkin - 2012-08-13 16:12

      Hahahaha!!! Phumi, the WC stands the highest in terms of service delivery. The ANC has failed in every other province and you have the ANCYL mentality to try come here with your ignorant and brainwashed commentary like we all so stupid to actually believe what you been bamboozled with? HAHAHAHA!! Move over little one, there is work to be done.

      dorian.rossouw - 2012-08-13 16:13

      well your people are well fed and overweight from all the corruption and fraud.u 4get bout that?

      Zahir - 2012-08-13 18:46

      They throwing petrol bombs causing chaos bunch of fools think they can make country go forward by destroying

      hein.huyser - 2012-08-13 21:03

      @phumi, your ignorance shows through your ancyl rhetoric, and it is clear from your post that you never tried to open a business to create a job. The word leech comes to mind

      ndlovuvincent - 2012-08-14 09:27

      U are absolutely right Phumi.This all crap that the DA is promising.Let them implement it in the WC.We are tired of empty promises from the politicians.The very same mistake done by ANC of making too much promises and then fail to meet expectations of the masses.

  • Andre - 2012-08-13 15:58

    The function of any good government is to initiate legislation to assist the establishment and proper functioning of businesses and not to mingle in with the businesses itself like the ANC!

  • ivan.faught - 2012-08-13 16:33

    So where are the detail in this announcement? This announcement actually say nothing. Nice for creating expectations.

  • bongani.khumalo.967422 - 2012-08-13 16:39

    it is ridiculous to start a business in this country. one should be able to get a fully registered company with all tax numbers in place and a bank account in half a day. in sa if u are lucky you can get it done in 3 months. the government is killing entrepreneurship and doing the opposite of what they say. labour laws and red tape must change but never will with the muppets in charge

      hartmut.gneiting - 2012-08-13 18:23

      We doing registration for a lot of small businesses, and it is difficult to start fully legally! We even cut or abandoned to charge fees for that. Bu did you know that you have to show a turnover of Rand 50.000 before you get a VAT number, besides all the other drama, like proof of residence etc. and then registering for UIF and Workmen's Ccomp, just try to do it.

  • pieter.pretorius.106 - 2012-08-14 07:59

    Good idea, just hope that the DA will apply this to everybody in the country and that they do not discriminate like the ANC to only help the so called "previously disadvantaged" are are still disadvantaged even after 18 years of ANC leadership. So please put a plan together that will also help the presently disadvantaged masses.

  • letlhogonolo.mareme - 2012-08-14 08:20

    At least DA is initiating some postive move and i hope ANC is paying attension and i know that they will try to sabotash the DA concept , the rulling party should make access to business loan funding more easier to the applicants and should focus more on employing regulator whom wil be the watch dogs of the usage of the capital(business loan) they have lend to the loanees instead of munching our taxes on Zumaville and ada undelivered service

  • leonardo.hendricks.1 - 2012-08-14 08:35

    Having my own company I know that moves like this will be positive to our economy. Saying this I also know that the market is almost closed for non whites to buy and get finance. The grip that white businesses have in the private sector have to be broken first to enable everyone on a fare chance to business.

  • Ed - 2012-08-14 10:44

    Guys, do yourselves a favour and take a trip to east Africa. Once there you will notice how different their culture of 'can do and will do' is to our 'i demand and must be given' culture. drive through a squatter camp in nairobi, kampala or dar es salam and you will see 99% of people are either making furniture (cots, chairs, 4-poster beds) to growing plants/flowers etc to sell in front of their houeses. you do not see much begging and there are very few demands for land and housing as the people know that the only way to improve their lives, is to take control of it on their own. then come back here to SA and realise how fast we are going down. we have unions and a general feeling of entitlement. none of it will help us to grow as a nation. then compare growth of the 3 east African nations of over 7%, to ours of about 2.5%. even their unemployment of around 15% is 10% less than ours. dimitri and phumi, people like you are one of the reason why our nation is suffering. change the attitude and WE may have a chance...

      Ed - 2012-08-14 10:47

      ps: most of the people also have no electricity, yet still do their best with their own craft work, improve their lives by buying a bicyle, then a bike and then a takes time, but in another 20 years, their economies will be FAR ahead of SA's.

  • andrew.dollenberg - 2012-08-14 14:52

    The process of opening a business is already easy. The process of registering with SARS, opening a bank account, getting support and finance, and most importantly training and education is where action is needed.

      denny.cray - 2012-08-15 11:21

      If by opening a business you mean registering a company - then I'd have to strongly disagree. I've got a bewildering amount of correspondence relating to the couple of companies I've opened up. The CIPRO->CIPC transition was (and still is) an absolute disaster. I'm still having trouble filing a (now overdue) annual return because their system keeps crashing out. I've phoned and sent emails - still no joy. CIPC is an utter disgrace. SARS is merely bad. The FSB appears overwhelmed. The SETAS are ... confused. I cannot think of any step in the process which isn't a time sapping burden. Frequently the staff have little idea of the requirements and no idea of the rationale for the requirements. (You must fill out the form because you must fill out the form)

  • mlu.khan - 2012-08-14 18:45

    I would like to see these plans initiated on a micro scale, like the Western Cape, where the DA governs, if it not happening already. Because alternatives to employment creation are needed in country to drive the increase in the labour force. Manufacturing, innovation (technological and engineering) are essential in every country. The basis of that is education, regardless of who gets the bigger pie. Skilled labourers make good business owner/leaders. You can be the best bricklayer or carpenter, but if you cannot compose a business plan/financials on paper, someone who can will end up taking most of the money, selling the idea. and Rightfully so. We need a government that is passionate about education, not one that throws money at education and think that will solve everything or takes an uneducated man and makes him president. The current government has failed in this regard, because of fundamental issues, taking the example of Limpopo textbooks. No house can be built on a shaky foundation

  • rob.powell.1969 - 2012-08-21 13:29

    Oh what crap. One side poitning at the other - divide and conquer! blah blah fish paste!

  • murray.campbell.980 - 2012-08-22 14:28

    The reality is that starting a business is not easy. Anyone who says it is does not know what they are talking about. it is one thing to register a business, but it is quite another to successfully run a business and get to the point where you can actively make a difference in job creation. Once you have the business idea and you have actually managed to put together some sort of business plan you need a premises, apply for telkom & Eskom, then get in all the business furniture, create signage, get the vehicles up and running and registered, get a website up and running, create systems, organise supply chains, create distribution channels.. so Dimitri, where would you like me to start on red tape, at the beginning where you need to find funding or at the end where you have to sit in a meeting with a union official as you try to fire incompetent and lazy staff who have a sence of BEE eititlement created by our shortsighted government who make unrealistec election promises. I have my goods manufactured in China and I bring them in. I don't have labour issues, tax issues, strikes etc and I get to smoke my cigar, however if the DA makes it easier to do business here I am all for it. The problem with the DA and the ANC is that they are full of bright ideas that have very little impact on the ground.

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