Will Businesses Owned By Whites Survive In The Future Of South Africa? This is a very emotive question that brings up many different opinions and that is a good thing because we will then look at things from many different perspectives. If we listen and think, we might just come p with a solution.
I am not a financial professional so don’t expect any technical info here. This is written from what I have found with my interactions with many businesses and former businesspeople, some of whom have lost it all during this COVID19 pandemic.
COVID ASSISTANCE FROM THE STATE
If you were watching the news during this pandemic, you would have heard that only certain racial groups in certain industries were going to qualify for any COVID assistance packages from the State! So what do the rest of these businesses do, those owned by whites that did not qualify for assistance? There are a number of options:
- Give 51% of your business away to a black person, just so that you can qualify for that State assistance. The question here is, Will the assistance be equal to the value of the shares that you must give away?
- Mortgage your house and hope that it is sufficient to carry your business through the pandemic.
- Close your business and try to find employment. Good luck with that one in these times of ever increasing unemployment numbers and ever decreasing tax paying businesses.
- Find someone with lots of cash that is invest in your business via equity loans or straight buy in.
Chances Of Businesses Succeeding In Todays South Africa
Unless the business is lucky enough to have a strong bank balance, the chances are that it will have negative growth and probably even shut down if it is a white-owned business. Finding finance during these times is extremely difficult for these businesses and they will have to become creative if they are to survive. Marketing is going to be paramount and curtailing costs is just as important.
Supporting Our Own Community
If we want to play any part in the economy as a white community, we are going to have to support each other, buy from our businesses and offer employment to our people. With so many unemployed, there are many people who are prepared to do menial work, just so that they can feed their families.
I am also not one that supports giving donations at intersections etc. Far too often I have seen these people throw food away or sell it, and if they receive money, many of them buy drink or drugs and not much, if any, goes home. I am far more supportive of supporting Groups and Churches that provide support to our people, wherever they are. Help these institutions feed, cloth, provide shelter and education to our people.
Too Many Groups
Have you ever tried to find jobs on WhatsApp, telegram or Facebook? There are hundreds of groups advertising places to add employment adverts and to cap it all, you find that most of these sites are advertising the same posts. To get the benefit from these sites, you have to “join/subscribe” to them and then you are inundated with messages. It gets so bad that you end up silencing them because you cannot keep up with all the messages. Even worse, you leave the groups because they have so many of the same adverts and often the adverts expired weeks ago.
That is exactly why ESSELL was born. One place for all your services and they are only published ONCE!
Cost Of Following All These Groups
Sure, they don’t charge you for these services but, they do use data and using data to read the same message on 3 or 4 messages boards does add up, especially when you are buying small data packages that last 1 day or 1 week. Not all of us have uncapped data.
Financing Your Enterprise Or Business Idea
Many of us do not want to start up a business that requires a shop, workshop or formal business premises. We have an idea to produce something at home that people will be interested in but the problem is, banks will not finance you. Why:
- You have no assetts to secure the loan
- Your business is not registered
- You have insufficient experience/skills (but they will not tell you that)
Let’s face it, when you have little or no prospects of getting finance, many people just give up. A lot of people are already in a bad space after losing their work or business that it does not take much to make them despondent. We need a way to motivate our people and to create entrepreneurs of them. How else will our people survive? If we do not grow our businesses so that they can employ our people, where will we find work? Affirmative action excludes most of us from finding employment.
This being said, How do we finance our businesses? Maybe, just maybe we should consider crowdfunding. It is a way in which our people can invest in our businesses and grow our community and businesses. If we don’t do it, who will?
Watch this space.
We at ESSELL, are currently in the process of developing a Crowdfunding system for our community. It might be one of many ways forward for our people. If we don’t help each other, who is going to help us?