Too many South African women remain trapped in poverty and untenable situations, when there are a number of steps they could take to empower themselves and become financially independent.
For possibly hundreds of thousands of South African women, financial independence and their own small business seems like an unattainable dream. Trapped in poverty or untenable situations, many women with the potential to become small business owners fail to do so – mainly because of a lack of start-up funding.
But there are a number of ways to start a business without having to approach traditional lenders for large loans, says small business specialist Nokwazi Mzobe, Founder of Matoyana Business Solutions, author of the Small Business Handbook and driver of the Fearless Women campaign.
Speaking at the start of Women’s Month in South Africa, Mzobe says many would-be women entrepreneurs still believe the only way to become empowered and start their own businesses is to start big, with significant funding. “This is simply not the case,” she says.
Start saving now
Even with very limited money available, women can start setting aside small savings in a dedicated 32-day account or money market account, she says. “It’s important for women to have their own personal bank accounts – for a rainy day, or potentially to start a small business. All banks offer a variety of savings products, and women should not be afraid to go in and enquire about a savings product that suits their needs, and delivers good returns.”
While you may have big long-term goals, your business need not start out big, says Mzobe. “In most cases, you don’t need a whole lot of money to start a business. You may find that the support and tools you need to get you started are available through friends and family. You might use someone’s old laptop, borrow a car or take advantage of free WiFi hotspots to get started, as I did, for example. There are many free business tools available online; and you can look to your community for support and advice to get up and running.” Mzobe cites, for example, a woman who took the initiative to invent her own ice lolly recipe and started selling lollies to local children from her home. The lollies have proven so popular that spaza shops in her area are now approaching her to supply their stores too.
Get community funding
Stokvels and crowdfunding offer an excellent solution to start-up funding challenges, says Mzobe.
Stokvels are an effective traditional method of purpose-driven saving, delivering better returns for the members than they could achieve alone. “Many South African women belong to stokvels, and they could look to stokvels for more than school fees or grocery savings – they could actually use them as a means to save start-up funds for their own businesses. What comes with them is a sense of community – you are saving money with people you know and identify with in an environment of trust,” she says.
Taking stokvels and community saving and funding into the digital age, crowdfunding and novel digital investment forums offer new ways to tap into the community for startup support, she notes.
“You don’t have to find one big investor – there are other ways. New platforms are taking traditional ways of doing things and making funding more accessible via the internet. Platforms such as Thundafund or even smaller initiatives through platforms like BackaBuddy are proving very successful in raising funds to empower and help people,” she says. “While supporters often do like to see a prototype or solid business need behind the new business plan, sometimes they support crowdfunding campaigns just to become part of the journey, or for philanthropic reasons.”
Women dreaming of empowering themselves through small business ownership need not wait – there are tools, support and even ways to secure funding available to them right now, says Mzobe. And there’s no better time to start building a financially independent future than during Women’s Month.
Nokwazi Mzobe will speak at the upcoming Small Business Expo in partnership with the Eskom Development Foundation, from 6 – 8 September at the Ticketpro Dome, on free and low-cost business tools available to small businesses and entrepreneurs. Online registration by 2 September is free, or R70 at the door, and visitors will benefit from free training in the Standard Bank Women in Business theatre, the Nedbank Money Matters theatre, Business Services theatre and the Eskom Powering your World theatres. Register today at www.smallbizexpo.co.za
About the Small Business Expo
The Small Business Expo, running alongside #BuyaBusiness Expo, is devoted to the development of small and medium sized enterprises, providing an invaluable platform for small businesses to market their businesses and interact with business leaders and corporate companies. This expo exposes visitors to a wide range of business models, incubation programmes, business contacts, speakers and other entrepreneurs who will engage them on starting or growing their business.
The Small Business Expo features numerous highlights, including free workshops and talks in the Nedbank Money Matters Theatre, Standard Bank Women in Business Theatre, Eskom Powering Your World theatre and Business Services theatre. Explore exhibits, visit the #BuyaBusiness Expo alongside, and explore new business opportunities.
The Small Business Expo is presented by Reed Exhibitions in partnership with the Eskom Development Foundation and its Business Investment Competition, and will be held from 6 – 8 September 2018 at the Ticketpro Dome, Northgate. The expo is supported by the Randburg Chamber of Commerce and Industry and Minara Chamber of Commerce, and is endorsed by the Black Management Forum (BMF) and approved by AAXO.