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Nicolene Schoeman-Louw,
from PockerAdvisor.co.za, and Andile Yengeni,
SEDA District Manager in Nelson Mandela Bay

Small businesses lose their customers because they often do not have the processes in place to manage their relationships and they have not based their transactions on legally sound contracts.

This is according to Nicolene Schoeman-Louw, from pocketadvisor.co.za, who will share her insights during the upcoming episode of the SEDA, IBASA & EPI Webinar Series.

“Businesses that do not take legal requirements and compliance seriously often end up with unhappy clients who go to social media to shame the business. Another consequence of poor compliance is often that these businesses never stand a chance to get funding or big business contracts,” says Schoeman-Louw. “This leads to the business’ public reputation taking a dive, no-one wanting to work with them, and eventually it leads to failure.”

For many businesses the traditional way of appointing lawyers to formalise the business processes and put all the legal structures in place may be too costly, so they avoid doing so.  Schoeman-Louw says: “Most small businesses think they cannot have access to consultants or lawyers because of the costs involved, but there are ways to make legal services affordable.”

By using accessible resources, covering information on their legal considerations, business owners can be prepared to ask better questions by the time they make use of individual legal support.  

“We offer Pocketadvisor as a way to help small business owners to prepare so that they have a much higher level conversation and get more value for money by the time they engage a lawyer. In this way, they can afford to put in place legally sound processes, which will help the business to grow, become more profitable and create more jobs,” says Schoeman-Louw.


UPCOMING WEBINAR

Join the upcoming episode of the SEDA, IBASA & EPI Webinar Series, with Nicolene Schoeman, is a practising lawyer at SchoemanLaw Inc and the owner of pocketadvisor.co.za, and Andile Yengeni, SEDA District Manager in Nelson Mandela Bay

WHAT: CPD Webinar

TOPIC: Supporting very small businesses to grow by formalising
their operations and addressing legal requirements

WHEN: Thursday 24 March 2022

TIME: 11h30 to 13h00

WHERE: << BOOK YOUR PLACE HERE >>

 

Recently, a lot of emphases is placed on the formalisation of informal businesses in South Africa. Agencies such as SEDA are supporting these businesses to register, collect and process financial information and introduce better business processes.

Andile Yengeni, SEDA District Manager in Nelson Mandela Bay, will join Schoeman-Louw as the second guest on the webinar. He will explain how informal traders, small spaza shops, home-based hairdressers and other very small businesses that are operating informally may benefit from formalisation.

The need is great, says Yengeni: “We’ve seen with the Covid-relief support that more than half of the businesses did not qualify because they were operating informally.”

Yengeni explains that there is international recognition that to grow the economy one needs to grow small enterprises and for them to grow there needs to be supported.

“Currently the instruments to support small businesses are not sharp enough,” he says. “For instance, requirements for participation in programmes may need a number of employees or having been in business for a number of years, and to meet these requirements they need to have been operating formally.”

Yengeni is not in agreement with the long-held belief that informal businesses will not be able to become formal. “Not having formalised most small businesses before Covid-19 was costing the country as the government could not support the informal businesses. Lots of potential Covid-19 relief beneficiaries could for instance not get help because they did not have a bank account. And SARS and labour compliance are other areas where formalising will offer benefits,” Yengenis says.

During the webinar, Yengeni will explain how business advisors and support practitioners may help their small business clients with formalisation. He will share what SEDA learned over the past two years through the business formaliation it is implementing.

 

  • To join the upcoming CPD webinar you can << REGISTER HERE >>.

  • By attending this episode of the SEDA, IBASA and EPI Small Business Development Practitioner Webinar Series, you will earn credits to count towards your CPD requirements. 
  • Christoff Oosthuysen is the webinar host, Founding CEO of the Entrepreneurial Planning Institute (EPI) and General Partner at Seed South Capital.

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