Favorable shift for small business owners in the home loan market

Since the global recession that hit both the developed and developing world in 2008, most people have been quite conservative when it comes to getting into any long term financial commitments. 

 

It is estimated that around 24% of applications for home loans in 2007 were submitted by individuals who generated income independently through their own businesses.

 

Even though that percentage dropped to around 12% since then, the average loan granted to these individuals - small business owners and entrepreneurs - is significantly higher than those granted to their counterparts who rely on a salaried income. 

 

According to the head of First National Bank’s Home Loans department, Ewald Kellerman, this increase is likely due to the fact that entrepreneurship comes with increased risk/reward return factors. 

 

However, banks and financial service providers must surely still be wary of all the risks that come with loaning money to individuals with small businesses.

 

Apart from the fact that the global financial situation is still not stable enough to make owning a business stable, no matter the size, there are a lot of factors that could influence the success of a business, and with that, the owners ability to pay off a home loan. 

 

Many businesses fail within the first year, and those that survive may not be financially viable for a year or two more, so home loan providers must be sure that any applicant has a stable enough income to cover their expenses during that period. 

 

On the other hand, if an applicant is successful enough, the loan will likely be paid successfully and in some cases even early.

 

While it is still a huge risk for banks and other providers to provide home loans to self-employed individuals, this trend that sees these business owners being rewarded for hard work and risk taking shows that there is more confidence on the part of the banks, as well as willingness to inject capital into a growing market.

 

Written by: Wesley Geyer

Why your business needs a website

Many businesses were established before the technological era and are still running a successful company without the additions that the technological age brought us. 

 

Online marketing is still a foreign idea to many small to medium business owners and others simply feel it is too complicated. 

 

Today we’ll look at probably the most important aspect of online marketing – websites – and why it has become crucial for your business to have one.

 

The first reason for your business to have a website is the fact that your competitors have already positioned themselves online. And no, “everyone else is doing it” is not a reason to do something, yet it is important to note that the reason why most businesses are online today is because that is where everyone is looking nowadays. 

 

The fact that some other company is getting business that you could be getting should be a great motivator.

 

When you look at all the different information you can place on a website, it’s probable that the same information is repeated by your staff to customers on a daily basis. Imagine what your staff could be doing if they weren’t busy on the phone to inform customers of trading hours, locations, products on offer and their price or whether your stock a specific item. 

 

The time you save could mean more to you than you think. It also means that your customers have unlimited access to your information without you having to put in the time for it.

 

You might think your business does not have an online presence, but with social networking expanding on a daily basis, there is a fantastic chance that your business has been discussed and reviewed somewhere online.

 

It might be an unfortunate truth, but a customer who may have had a bad experience at your business is more likely to rant about it online than he is to approach you. Being online gives you the chance to defend yourself or make sure you address the customer’s bad experience.

 

The internet has taken over in so many different areas of our lives. It has redefined how we do things and makes an impact on everyday decisions like where to eat or which shop to visit. 

 

Having a website ensures that your business can be located and that the customers from the store not far from yours, may become your customers.

 

Written by: Marleen Theunissen 

Shopping mall’s in the West Rand get a facelift!

The West Rand of Johannesburg has seen a number of changes over the last five years, not the least of which has been the construction of a slew of new apartment and townhouse complexes along the outskirts of major areas, as well as an initiative that has allowed for the areas entertainment complexes to be revitalized.

 

Three of these complexes, two existing and one brand new, have been under construction from early 2012, and the developments are all nearing completion at a fantastic rate.

 

Key West Shopping Centre in Krugersdorp has recently been part of upgrades by Aucacap Investments, who have allocated around R105 million to a three-part project at the mall. The Waterfront section of the Key West Shopping Centre will be upgraded and modernized, hosting a number of new family restaurants, activity areas for children and a brand new amphitheater for live events. 

 

The waterfront area will also be accessible directly from the brand new ‘Entrance 7’, which, along with Entrance 4, will get elevators that will allow visitors to access the second floor. The mall itself will also be revamped, inside and out, with new signage, more rest facilities and a host of new retail tenants.

 

The developments are expected to be completed by the end of 2013.

 

 

 

Silverstar casino investors Tsogo Sun have allocated an estimated R480 million to construction and refurbishment at the relatively young casino complex. Expected to be completed by August 2014, Silverstar Casino will become an entertainment hub for the West Rand with six cinemas boasting the latest technology 3D screens, a 12-lane bowling alley and four new restaurants surrounding a central square that can also be used for outdoor events. 

 

There will also be an outdoor screen in the central square with two restaurants inside the property, bringing the total number of restaurants to six. A beer garden, laser games, a refurbished casino and a large outdoor domed events arena as well as an upmarket indoor multipurpose events venue and additional parking will feature in the development. Most of the facilities will remain operational throughout the period, though many of them are also undergoing refurbishment behind the scenes.

 

The West Rand’s newest addition, Cradlestone Mall, is said to be on track with its construction, and has set an official opening date for October 24th, 2013. The mall, located ideally between the West Rand hub of entertainment that holds its sister malls like Clearwater and Silverstar Casino, and the World Heritage Site in the Cradle of Humankind. Cradlestone will be a testament to the evolutionary heritage of the area, and will show off the importance of the area in Human history. 

 

It will host 240 retail stores, entertainment areas and restaurants, as well as a state of the art IMAX theatre, free Wi-Fi in the food court, fiber optics and a brand new tubing system that will make the handling of cash on the premises safer for all parties involved.

The mall is planned to have as low a carbon footprint as possible, in order to promote ‘green entertainment’ and to foster in a new way of conducting business. 

 

 

Written by Wesley Geyer

Creative writer at ATKA SA

Remember the Black Eagle Conservation Project

 

The Black Eagle is a fairly common resident of South Africa and is said to be one of the most thoroughly researched eagles in the country. 

 

They are found at sea level from the Cape Province to the Drakensberg in Natal, in the North West Province and up into Africa. Mountain terrains with cliffs, rock ledges and caves are preferred as habitat by the black eagle, with the ledges providing nesting sites and abundant prey.

 

When the Watler Sisulu National Botanical Garden was established in 1982, the black eagles were already nesting on the cliffs next to the Witpoortjie Falls. Despite increasing urbanisation and development within their immediate hunting area, the pair breeding at the Gardens has stayed, regardless of their existence being challenged by influx of visitors, noise and lack of prey. The interference within and around the territory escalated with stray and domestic dogs and vagrans, who feed on the eagles’ principal prey, the dassie. The pair have had to adapt their prey base to include guinea fowl, francolin, red rock rabbit and in very desperate cases, chickens.

 

The Black Eagle Monitoring Project was initiated in 1992 with its aims being the following: educate and inform the public on black eagles, conserve and secure the black eagle pair in the Walter Sisulu Botanical Gardens and to monitor and obtain vital information on their breeding cycle.

 

In 1998, the Black Eagle Monitoring Group became affiliated to the Gardens and subsequently the project was renamed the Black Eagle Project Roodekrans and was registered as a non-profit organisation that consists of a 7-member committee and approximately 30 dedicated volunteer members. For the next three years since 2006, the project placed a ring on the juvenile eagle’s tarsus and took blood samples for correct sexing and DNA.

 

This project proves how much can be learned and achieved by the voluntary efforts of a passionate amateur team. The importance of preserving the ‘Black Eagles of Roodekrans’ will remain the top priority of the project. Monitoring will continue as it is only through a thorough knowledge of these raptors that any arising problems can be rectified.

 

A live camera was installed on the cliff watching over the nests of the black eagle pair. To view the feed from this camera, go to: http://www.ustream.tv/channel/africam-black-eagle.

 

The Black Eagles are a part of our South African heritage and we should all give our support to this project to ensure the survival of these spectacular birds!

 

 

Written by Marleen Theunissen

Creative writer at ATKA SA

How the rising petrol price affects business

Fuel price hikes is one thing that a business cannot avoid. Petrol is made from crude oil, which is extracted from the ground and then refined and exported from the main oil-producing nations to the rest of the world.

 

 

As with other goods, if the supply of oil increases, price will decrease and vice versa. The recent increases in the fuel price have much to do with political conflicts in the large oil-producing nations of the Middle East. Uprisings like these can change the fuel price in two ways – it may lead to a decrease in supply or the anticipation of future drops in supply will lead to other countries stockpiling oil and therefore raising the demand and price of oil.

 

The consistent rise of the fuel price has forced business to re-evaluate logistics costs. The rise in the price will lead to increased road and delivery costs, which have seen businesses streamline delivery processes in order to stabilize costs. Another strategy considered by businesses is to reduce petrol-related costs by planning smarter travel routes and shipments. Business owners have also started to actively outsource logistics to external partners in order to reduce costs and simplify delivery structures.

 

The increasing pressure in the current economic climate is on business to become and remain competitive, both locally and globally. A problem experienced by South Africa is also that foreign investors find our country less attractive. Many companies use South Africa as a gateway into Africa, but fuel costs are piling up on existing logistical costs leading to foreign businesses to look for alternative entry points into Africa.

To top this off, the average rand/US Dollar exchange rate had weakened in the last couple of months, causing fuel prices to rise even more.

 

In the long run, the upward petrol price trajectory will have a negative impact on all industries, especially the logistics industry, as firms with low revenues will most likely be unable to compete with the bigger market players who find themselves in a much better position to absorb these cost increases.

 

Smart logistics strategies could help to improve customer services and reduce product costs and unnecessary pressure on business owners. However, this needs to be done with much diligence and care, as failure of these systems could have far reaching negative effects. As far as the foreseeable future is concerned, petrol prices will keep on rising. It is therefore becoming imperative for businesses to create alternatives regarding transportation in order to reduce overhead costs effectively.

 

 

Written By Marleen Theunissen 

Creative Writer for ATKA SA

Job prospects for South African youth

 

 

South Africa’s recent fall in the global markets to over R10 to the US Dollar and a national growth rate of just 0.9% has caused an increase in the official national unemployment rate, which has gone from 24.9% to 25.2%, as well as an increase in the percentage of the unemployed that have given up on looking for a job (now at just under 38%).

 

These factors have all weighed down on the youth job market and the number and range of opportunities available to both high school and university graduates.

 

The blame for the increase cannot necessarily be placed on one part of the economic process, whether its unions and wage increase disputes or profit margins and cuts higher up in the chain. 

 

 

Each part of the process is responsible for a part of the blame, and in order to fix it, the entire system, as well as the capitalization and unfair profit distribution should be addressed. 

 

While workers unions like COSATU are disputing wage increases, looking for rates much higher than the national inflation rate, causes difficulty for new employees looking to get into the industries at an entry level with a fair wage, profit margins and exploitation of agriculture and high product price markups create an imbalance at a higher level.

 

However, the use of apprenticeship and internship programs may help drive the youth employment rate up while developing much needed skills and workforce competency in the long run. 

 

The apprentice system, much like the one used in Germany (a country where the unemployment rate is the lowest in the destabilized European Union at around 7.6%) provides young employees with skills development and career options after they have left school and are looking at specializing in a certain field. 

 

Apprenticeships are typically used in manual labor-intensive industries such as automotive, mechanics, etc., whereas internships provide skills development and career opportunities in other areas. 

 

These systems are most successful when interns and apprentices are utilized for more than just grunt work, allowing them to get used to practical work systems and pressures while learning from more experienced employees.

 

This kind of employment system is not necessarily an answer to all of our economic problems, as the jobs typically given to young people in these positions are not very high-paying, it provides a some alleviation to the increasing unemployment rate and promotes career growth for the foreseeable future.

 

 

Written by: Wesley Geyer

Creative writer at ATKA SA

Prominent Female Entrepreneurs In South Africa

Over the last ten years, South Africa has seen a major rise in the development and continued success of some of its most prominent female entrepreneur’s.

 

Many of these promising developments have come in fields such as medicine, social work, business, economics and cultural development.Furthermore, many of these entrepreneurs have been given recognition not only for their excellent work in their respective fields, but also because they have managed to break down some social barriers that face women in many societies around the world.

 

Lesley-Ann van Selm

Lesley-Ann van Selm is a highly successful social entrepreneur, who is the founder and managing director of Khulisa Crime Prevention Initiatives. She has won a number of awards, including the Pinnacle Award at last year’s Southern Africa Social Entrepreneurship (SASE) Awards, which focuses on social developments that have potential to thrive financially, as well as the MIB Group Majuba Forest Entrepreneur of the Year Award.

Khulisa Crime Prevention is a Section 21 - non-profit company, which was launched at Leeuwkop Prison in 1997. It is a crime prevention initiative that involves ex-offenders in starting rehabilitation and reintegration processes for juvenile offenders while they are still in prison. In 2001 she was elected as an Ashoka Fellow. 

 

Linda Olga Nghatsane

 

 

The winner of the 2007 Shoprite/Checkers Business Entrepreneur Woman of the Year award, Linda Olga Nghatsane is an ex-public health practitioner who famously built up a successful career in not only health services, education and rural development, but also a highly successful farmer - having built a farm with her husband which eventually went on to turn over around R2 million a year. 

In addition to the farm itself, Linda Nghatsane also launched a business called Abundant Life Skills (ALS) that offers training and consultancy services related not only to farming, but also educating people about issues such as HIV/AIDS; managing childhood illnesses; health and sanitation and public health.As chairperson of the Nelspruit Agricultural Development Committee she also does all she can to motivate women to get involved in agricultural projects as a means to fighting poverty and providing healthy food. 

 

Dr. Thabang Molefe

A category winner of the 2008 Shoprite/Checkers Business Entrepreneur Woman of the Year award, Dr. Thabang Molefe is an outstanding example of successful South African female entrepreneurs.

A qualified medical practitioner and professional beauty therapist, Thabang opened Soweto’s very first health spa eight years ago.At the time, all she had was a small amount of money she had saved and the determination to succeed. 

 

At the time of her award, she had already created more than 40 jobs for women in communities where she established Roots Healthcare Centre businesses in Gauteng, KwaZulu-Natal and the Free State.

 

Brenda Roopai

 

Brenda’s luxury travel and tourism business has gone from strength to       strength and has notably won the Emerging Tourism Entrepreneur of the Year Award last year.The competition is open specifically to South African black entrepreneurs operating small, micro and medium level hospitality or tourism related businesses. 

Founder of City of Choice Travel & Tours, Brenda had won a business plan competition in the tourism sector two years before she clinched the ETEYA award. Describing herself as ambitious and passionate, she was head girl of both her primary and high schools.

 

After completing a nursing degree, she worked as a pharmaceutical rep and did a postgraduate diploma course in business management. It was only in 2007 that she decided to make a change to the tourism industry, largely inspired by the annual tourism industry Indaba held in KZN. Interestingly, ETEYA has identified more than 300 small, medium and micro enterprises (SMMEs) in the past eight years, and of these, about 60 percent are businesses that are owned and run by women.

 

Shona McDonald

Cape Town-based Shona McDonald is a highly successful woman who has clinched several prestigious awards for entrepreneurship over the past couple of years.

In 2008 her company, Shonaquip, won the Western Cape Productivity Award based on the growth and continuing success of her business since 2004. She also won the Social Entrepreneur Regional Business Achiever’s Award from the Business Woman’s Association (BWA) of South Africa.Shona has also won the Ernst and Young Social Entrepreneur of South Africa Award and the Top Woman Entrepreneur in Business Award, as well as the Schwab Foundation for Social Entrepreneurship’s South African award.

A business that grew out of the pain of having a child with cerebral palsy, Shona founded Shonaquip as a close corporation in 1992, selling wheelchair buggies and support devices for disabled children. These were devices that she had designed and built to cater for her own disabled child, Shelley, simply because there weren't any locally made wheelchairs that fitted her needs.In the early days Shona had two people working for her, and they operated out of her garage.

Today Shonaquip is a well-established and highly regarded business that builds more than 6 000 wheelchairs a year, and generates more than US$4-million in revenue. The company employs more than 65 people who help to improve the lives of some of the many disabled people in this country. 

 

Written By:  Wesley Geyer

Creative Writer at ATKA SA