View article on the Fin24 website.
Johannesburg - Recently published statistics on South Africa’s consumer price index (CPI) reveal that input costs are stabilising for businesses, while creating an encouraging environment for start-ups.
Economists are upbeat that the latest stats predict better times ahead.
Dieter von Fintel, a senior economics lecturer at the University of Stellenbosch, believes this environment presents new hope for the South African economy.
In the last year, South Africa's annual CPI average for all urban areas dropped from 6.6% in January 2017 to 4.4% in January this year, according to Statistics South Africa's latest data released on Wednesday morning.
"That means input costs are not growing by as much as in the previous year, and consumers are seeing lower increases in prices of the goods they buy. This includes the prices of goods that firms buy to produce their own goods," said Von Fintel.
"Importantly, the lower figure from one year ago moves the inflation rate back into the target band, emphasising that the South African Reserve Bank (SARB) is achieving credibility in its mandate."
He explained that the ideal CPI is one that indicates price stability and this, according to SARB's mandate, is the maintenance of an inflation rate of 3% to 6%, which describes last year’s CPI.
"This favourable inflation rate assists businesses in making cost predictions more reliable - a situation which the South African Reserve Bank does predict for the next year," he said.
Reliable predictions allow businesses to rely on their cost planning for the year ahead.
"Especially emerging and small businesses must operate in a predictable environment to find their feet without the shock of unforeseen costs," Von Fintel said.
André Rossouw, a sales manager at Company Partners, a business that specialises in fast-tracking company registration, has also seen a significant increase in newly registered companies over the last year.
"It's vital, now more than ever, that South Africa's economy provides a stable environment for these South African entrepreneurs to grow and stabilise in," he said.
"We've also seen a large increase in entrepreneurs who want to grow their businesses this year by venturing into tenders, RFQ's (request for quotes) and contracts. We truly hope the stabilising prices allow these entrepreneurs the chance to reach their full potential."
The prediction of stable prices throughout 2018 will also make loans and capital more accessible to start-ups, Von Fintel added.
"CPI inflation that is in control means a number of things: interest rates are unlikely to rise, which also keeps the costs of loans and start-up capital under control."
However, there are a few things which pose a risk to start-ups in the coming year, he warned.
"The national minimum wage is likely to be introduced in the coming year; this will raise the payroll costs of firms that employ many low paid workers. Research shows that this will likely affect small firms most severely," he explained.
Entrepreneur Magazine 2015
It is no secret that entrepreneurial activity in South Africa has been oppressed by numerous large economic factors in South Africa such as poverty and the lack of business education. Some entrepreneurs rise up through these circumstances and launch their business anyway, just to realise, that now they have new hurdles which are obstructing them to enter the formal marketplace in South Africa.
CIPC, SARS, Branding, Trademarks and numerous compliance requirements can take months to sort out and costs some entrepreneurs up to R50 000 before they have even sold a single product / service.
Business Care (trading as PtyCompanyRegistration.co.za) recognised that the first roadblock is the Company Registration process at CIPC.
They decided that it would create value to assist entrepreneurs with this process and therefore started to do these registrations on behalf of entrepreneurs (online) in 2006.
Through an application process on their website they started to register CC’s (now Pty’s) at CIPC.
Over the past year, this company has become the strongest “Company Services Platform” in South Africa, shifting their focus to ‘Start-Up Packages for Entrepreneurs’ instead of Company Registrations only.
To compete in a competitive marketplace, a new company needs at least the ‘basics’ in place before launching.
This team of 18 people, of which 7 are entrepreneurs themselves, are currently serving over 500 local and international clients monthly – and everything is done online from their offices in Cape Town and Johannesburg.
They have made it a priority to tackle all the roadblocks which stand in the way of entrepreneurs when they’re starting out in South Africa.
Serving the client:
Business Care believes that:
- Understanding the entrepreneur’s business;
- Taking the start-up budget in consideration;
- Prioritising services;
are key to serving their clients in the best way possible. For this reason they have put a ‘Licensee Structure’ in place.
According to Liam Stander, the Director in charge of Business Care’s business growth, the reason for this structure is simple:
“You need to be an entrepreneur to serve an entrepreneur”. Both the licensees have business experience, and more than that: “start-up experience”.
Norman Swanepoel and Brend Badenhorst both own a License which entitles them to build their own business operating from PtyCompanyRegistration.co.za.
It also encourages them to take ownership of each client and his / her needs, as their company’s performance and future depends on it.
The average entrepreneur tends to either underspend or overspend on Start-up Services.
On the PtyCompanyRegistration.co.za website, entrepreneurs can find extensive, information on a massive amount of services (BEE, Tax, Logos, etc.) and types of companies (Construction, Cleaning, Transport, Security etc.).
They can then get a free consultation on the services they need to start-up, by dialling a toll free number (0800 007 269) and speaking to an experienced, well-informed consultant.
As an entrepreneur needs to use their limited start-up capital wisely, the consultant will then advise the client on the necessities required to start-up or ‘launch’ their business as per the Start-Up Diagram below illustrates:
There are ‘necessities’ and ‘investments’ when it comes to business services.
As soon as the necessities are covered which enables a company to launch, the business can start trading and generate an income before investing any more capital into the business’ formalisation / potential growth.
For a typical business we would advise to get the basic services at the lowest possible cost:
- Pty Company
- Business bank account & potential funding
- Tax Registration & Verification
After the company has launched and starts to generate an income, it would be a good idea to ‘upgrade’ by initiating the ‘Formalise’ and ‘Grow’ phase as per the diagram below:
Our Cape Town based team follows:
View article on the BizCommunity website.
The CIPC system has recently been overloaded with company registrations.
This left many entrepreneurs waiting for a month or longer to receive their much needed start-up documentation, especially if they want to register their company with a name.
PtyCompanyRegistration.co.za has streamlined and personalized this process online, enabling an aspiring new company owner to have all his/her required documentation in as little as 48 hours.
Backlogs, due to technical problems at the Companies and Intellectual Property Commission (CIPC, previously CIPRO), have been an on-going problem over the last decade.
These backlogs - which have delayed new company registrations for up to one month or longer in the past - caused much frustration for South Africans looking to start-up their new business concepts quickly, while the window of opportunity is still lurking.
PtyCompanyRegistration.co.za has created an online system which has been a breakthrough in the company registration services industry.
Their system, which streamlines the necessary processes online, enables a successful company registration (with a new company name) in as little as 48 hours.
Each client receives a dedicated consultant who takes care of their specific company registration, and who they can contact toll free if they have any questions.
The easy online process involves minimum hassles and paperwork.
PtyCompanyRegistration.co.za is owned by Business Care, who also started the website branded under SA Close Corporations in 2006.
SA Close Corporations assisted entrepreneurs and business people to register Close Corporations in the quickest possible timeframe.
The website had much success in doing so by serving each client personally and completing the entire company registration process for its clients within a few days only.
Recently, SA Close Corporations had a 'facelift' to adapt to the latest Companies Act and is now branded as PtyCompanyRegistration.co.za.
The new online company registration system allows clients to receive their full company registration documentation within 48 hours or six working days, depending on which package they apply for. Both packages include a company name.
They assist clients from all over South Africa as well as internationally. Everything is done online.
A professional service-fee is charged, which results in a total once-off cost of between R695 and R895 (depending on the selected package).
Each package includes the complete registration of a South African company, including a company name, CIPC fees, dedicated client support and peace of mind.
To register a new South African Company visit www.ptycompanyregistration.co.za