Yesterday i was part of the selection process for the Raymond Ackerman Academy for entrepeneurs. Seeing all these young faces come through the door is truly one of the highlights of my year. Soooo much potential oozing out of most of them. Young people all black giving business a go. Some had started businesses but had really struggled maintaining them. Some were still running small businesses and earning a small living while employing others. I am amazed that a country with so much potential sitting out there doesnt give these youngesters more support. We live in a country that is so buraucratic and rule bound when it comes to business. The authorities want to apply the same rules to a small start up as they do to large multinationals. This is ridiculous. In the NGP [ new growth plan] ( of which you can tell I am not a fan) this is mentioned as vital to create jobs. And I do agree. However the rules need to change.
Here are my 10 rules for small black business creation for South Africa.
1. Free courses like the RAA course funded by the state offered en masse to selected young business stars. These will be around 6 months.
2. Subsidised incubator services and costs by the state ( and state institutions such as telkom, eskom etc) once they have completed the course work. This will be for 3-5 years, and will provide the tracking of these small businesses
3. A new company structure for small start up businesses that will include a maximum time period to register of 24 hours.
4. For a start up company only a 5% tax rate should be paid for the first 10 years.
5. People should be able to hire and fire as they wish without any labour legislation
6. There should be a "special fund" funded by a state bank managed by high risk entrepreneurs ( not bureaucrats) to loan small businesses money.
7. Every company should still invest in ED ( enterprise development) and PD ( Procurement development) where larger companies are funding specific programs.
8. A massive state funded public campaign by the state to promote and guarantee work to these small businesses over a 5 year period.
9. Reward Innovation (teach innovation) at schools and teach and reward risk taking
10. Let people fail but dont punish them for that. In South Africa we punish people who have tried rather than rewarding them for their efforts.
This is what this blog is all about!