By Noluthando Mkhize and Ursula Graaff
Small Business Development Minister Lindiwe Zulu says she is ready to become the voice of small business in South Africa.
We caught up with her while she was visiting cooperatives in the village of Ga-Chuene, about 38km from Polokwane in Limpopo, with the aim of finding out about challenges that small businesses face and looking for solutions.
One of the enterprises she visited was the Baitapisi Bricklayer Cooperative.
After members of the cooperative told her about their lack of knowledge about running a brickmaking business, she advised them to visit a more established brickmaking business to learn the ropes.
She also expressed delight that the members of the cooperative had decided to start their own business, which was a positive example to the rest of the community.
Small business, huge potential
Minister Zulu believes that South Africa’s economy has huge growth potential and that through some skills development and education, small business could be made the backbone of the economy.
“The South African economy is very sophisticated and complicated, and it is up to every small business to align itself with the economy through education,” she says.
She maintains that small businesses have huge potential for economic development and to provide job opportunities for ordinary people.
Her list of priorities includes ensuring small businesses get the necessary support, education and training to start up and develop, as well as cutting the red tape that stops them from growing.
Minister Zulu says the Department of Trade and Industry (dti) has laid a strong foundation for the newly established Department of Small Business Development.
“Some of the work has been done. My job is to look at areas that need improvement and not ruin what already works.”
Regarding the model for registering a business, Minister Zulu says this process can be complicated for a person who lives in a rural area. She would like to see potential business owners having access to a one-stop shop where they can register a business on the spot.
“We will engage institutions that do registrations and look at studies already done on improving the registration process. I would like to see the registering of a business taking between five to six hours. I know the Gauteng province has a one-stop shop centre for small business owners. We would like to see how we can implement this across the country.
“South African infrastructure is in good standing and it would enable the department to build such one-stop shops.”
Business know-how needed
She says small businesses need support when it comes to knowing how to run a business. Her department would like to look at assisting small businesses with financial skills, human resources, marketing and the quality of their product.
“Small businesses also need to look at the environment that they sell their product in. Is it conducive for the consumer and how they can improve?”
She says government departments that do not pay small businesses on time for procured services limit their growth.
“Paying suppliers on time is still a huge challenge and it is not happening. The 30 days for payment put in place by National Treasury is still not being done. It will be our job to connect with provincial departments on how to ensure that payment happens on time and does not affect the small business negatively.”
Every business, big or small, must comply with labour regulations, she says.
“Compliance is very important. South Africa is a very orderly country and we work in a regulatory environment.
“Looking at the space in which small businesses operate, we see they do not have the same pockets that big business have,” says the Minister.
She also feels that small businesses should not be subjected to the same labour regulations as big businesses.
The Minister plans to engage with labour unions and the Department of Labour about the possibility of exempting small businesses from the same legislation that applies to big business and also explore effective legislation for small businesses.
“This will also allow small business to grow, bringing about more employment opportunities.”
According to the dti, five out of seven small businesses in South Africa fail within their first year. Internationally there is a 50 percent failure rate.
The Minister believes the reasons small businesses fail include a lack of information and research on the product that the small business owner wants to sell, if it will work, who the target market is and where it should be marketed.
“The overall research on the business module and if it will survive is also an element, the quality of the product produced, the skills to run a business and the commitment and resilience associated with running a business are factors that make businesses fail.”
Raising a nation of entrepreneurs
She says her department will be engaging the Department of Education on the possibility of teaching entrepreneurship at schools.
“People are afraid of venturing into something without security,” she says, adding that having one’s own business is not something that has been instilled in South Africans, they would rather work for someone else.
“If a person completes matric this is the first time they are confronted with the possibility of running their own business. They have spent 12 years at school and not been taught entrepreneurship. For example, there are tuck shops at schools. It would be a better idea to let pupils run it so they can learn practical entrepreneurship skills.
“We need to have the culture of appreciating money and learning how to use money when running a business.”
Big plans for small business
Commenting on starting a new government department, the Minister says while there have been challenges, she is enjoying the work.
“I have prepared myself for this role. I understand that to be Minister of Small Business Development you need to be patient, committed and be willing to work with people. Everybody comes to you with their idea and you need to listen to their ideas.”
She adds that she is aware of the big expectations that small businesses have of her department and is confident that these will be met as she has the backing of organisations such as the Black Business Forum and National African Federated Chamber of Commerce.
They were instrumental in the formation of her department and have expressed their willingness to assist it reach it’s goals.
The formation of the new department has been accompanied by the restructuring of other government departments involved in developing small, medium and micro enterprises, such as the dti, for example.
Minister Zulu says certain offices and agencies that were part of the dti, such as the Small Enterprise Development Agency and Small Enterprise Finance Agency, will now fall under her department.
“We have signed transversal agreements with government departments ensuring that small businesses have a voice in all departments.”
Some of her plans for the department include forming a network for sustainable trading between small businesses in South Africa and abroad, especially with her vast experience of international relations.
“I would like to see local women in rural areas being able to supply the international community with their beadwork. I would like to see them being able to market themselves to the international community,” she adds.
She would also like to see small businesses coming together and selling their products collectively. “When you go to downtown Johannesburg you find a string of ladies sitting next to one another selling the same thing. It would be a better idea for them to come together and sell in bulk.”
Career path
Minister Zulu is not new to government processes: In 1999 she became the special advisor to the Minister of Foreign Affairs, a position she held until 2001.
She was the Chief Director for Western and Central Africa from 2001 to 2003 and was appointed head of Government International Relations with the Vodacom group.
In 2004 she became the South African Ambassador to Brazil, a position she held until 2009. She was elected to the ANC national executive committee in 2007.
In 2009 she was elected to Parliament and appointed as President Jacob Zuma’s international relations advisor.
Minister Zulu holds a Master’s degree in Journalism from the Peoples’ Friendship University of Russia in Moscow. She speaks Russian and Portuguese fluently.
She hails from Nhlazatshe near Newcastle in KwaZulu-Natal. She was raised by her grandmother – a domestic worker who later became a businesswoman, making and selling clothes.
She says that seeing her grandmother run her business might have prepared her for the position of Small Business Development Minister.
Minister Zulu has four children and five grandchildren, and says she comes from a very close-knit family that drives her to do the best in her job.
This and that
What is your favourite food?
I love traditional food, even when I travel, I always ask for the local menu. My all-time favourite meal is uphuthu and inkomaas (crumbly porridge and sour milk).
How do you relax?
I read a great deal; I am currently reading 12 Years A Slave by Solomon Northup.
I am also a big fan of the late Brenda Fassie; there is something about a person who can sing and dance at the same time. I have all her live DVDs.
What are three words that describe you?
Energetic, vibrant and engaging.
What is your favourite holiday destination?
The Kruger National Park – I love the tranquillity – and Mozambique. – SAnews.gov.za
