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On a day to day basis, there are thousands of new entrepreneurs starting up a business around the world. Whether you are in the United States, South African or anywhere around the globe, entrepreneurship is a business universal language; it contains so many ‘ingredients’, but the outcome has to be profitable. Across the globe, there are millions of new entrepreneurs every month. In the United States alone, it was reported in 2016 that over 555 000 people take on the entrepreneurial journey every month, today the number has massively grown beyond a possible measure; there are over 400 million entrepreneurs worldwide.
According to statistics, as much as 20 percent of new companies fail whereas 50% of those with patience survive through their 5th year.
Take into account all the entrepreneurial characteristics and all the business-stress that comes with running a company.
In 2016 a survey was conducted in South Africa by Seed Academy, gauging almost 1500 start-up entrepreneurs, and the findings were presented by Donna Rachelson, chief executive officer of Seed Academy.
Findings were as follows:
- 50% created a business out of an idea that came from the environment they lived
- 4% started a business due to lack of income (a job)
- 38% were not hiring
- 4% hired more than 10 people
“Our entrepreneurs are resilient. They are primarily working from home and they fund themselves with small amounts of capital while facing the well-known challenges of finding customers and raising finance.
“The majority of entrepreneurs (59%) are the sole founders of their business. But they are optimistic, especially women business owners,” said Rachelson.
According to James Coetzee who’s a co-founder of software development firm Empire State told Fin24 that many start-ups in South Africa are business-minded but lack the technical skills thereof.
“Maybe start-ups in SA have great ‘business’ minded founders, but far too few have solid technical skills to handle the many components that make up a software company,”
Starting a Business in South Africa
New start-ups in South Africa are due to the high unemployment rate and there are often main questions set up as a guideline to help you get you started. South Africans are goaded by unemployment to start their own businesses.
Individuals have no idea how daunting it is to start a business anywhere and not just in South Africa. There are also necessary procedures to undergo; you need to have characteristics of an entrepreneur to be able to run a successful business.
Riki Marais, who is a manager at accountancy firm Hobbs Sinclair spoke to Business Insider South Africa, that:
“If a company is legally registered, others can’t claim your business name as their own, which is not the case if unregistered”.
You can register a company through CPIC (Companies and Intellectual Property Commission), it cost between R125 to 475. (Learn more about VAT Registration) – In a period of a year, if your income amounts to or exceed R50 000, you may register for VAT voluntarily, it only becomes compulsory when your income amounts to or exceed R1 million in a period of a year (12 months).
Quick employment facts
- Hiring people can be very beneficial, and you will be making a difference in the community and contributing to the economy.
- You don’t have to submit PAYE to SARS if you employ contractors
Taxes and Returns to consider as a start-up entrepreneur
In 2016 Mike Herrington, executive director of GEM, said: “In South Africa, there seems to be a growing optimism around entrepreneurship, but we are not seeing this translate into numbers of new and established businesses. It is critical that we get the enabling framework for entrepreneurship right in that country to allow the untapped entrepreneurial potential to emerge,”iBusiness on COVID-19