Gauteng Business 2016 edition

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
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