By Kea Koffman – Communications and Language Services (FSCA)
The FSCA’s Consumer Education department recently hosted a business week webinar inclusive of panel discussions in which it highlighted the importance of financial literacy as a critical topic - one that would be particularly beneficial given South Africa's current financial situation. The webinar was a one-of-a-kind experience that was not only instructive but also incredibly beneficial for young company owners and entrepreneurs. The world of entrepreneurship can not only be difficult but also complicated, owing to the different aspects at play, such as financial and resource availability. Market instability has also been shown to have an impact on the beginning of the entrepreneurial process.
Many people are plagued by the unending anxiety of how they will fund their start-up business for the first few months to in fact, the first few years. It is sometimes those who have an idea but have no clue how to make that concept or dream a reality. This webinar provided people with useful information on not only how they might be able to receive funding from the National Employment Fund, but also on the processes that will allow business owners to stay in compliance with SARS and ensure that their certificates with the Companies and Intellectual Property Commission (CIPC) are up to date.
The webinar was also aimed at improving financial literacy. Special guest Kylie Adams, founder and owner of Shanti Natural Care shared her experiences and recommendations that can play a significant role in terms of operating a business. “The trick with small businesses is that founders and owners get caught up in the day-to-day items like cash flow statements and where the money comes from as well as where the money goes, such as rent and whether or not suppliers need to be paid. There is also the issue of, as a fledgling company, keeping personal and corporate funds separate. This is critical not just for the business's longevity, but also for the founder or owner in the event of a failure,” she said.
The audience listened to how Adams overcame various challenges in the early stages of her business, as well as the various workshops that taught her the principles of financial literacy and the importance of understanding the finances within your business, particularly while it is still in its early stages and even further along than others. These sessions aided businesses in establishing income statements, comprehending budgeting and savings, and learning how to apply for and get funding. Adams emphasised how the workshops helped them by providing mentorships and financial literacy guidelines.
What was also discussed during the webinar is the National Employment Fund (NEF), an entity within the Department of Trade, Industry, and Competition. The NEF is tasked with subsidising enterprises, launching new ventures, and instilling a saving culture in citizens. It essentially transforms it into a financial organisation that finances small expansion enterprises, startup businesses, medium businesses, and focuses on more than just money in terms of encouraging black entrepreneurs.
Amos Mashia from the South African Revenue Services (SARS) also addressed attendees. Mashia stated that the general public regards SARS as an enemy rather than a collaborator. “Since SARS’ aim is to establish a smart, contemporary organisation with unquenchable integrity, trust, and admiration from government, the public, and world-wide peers, we will focus on the following. Our plan with this strategic target, which we feel will communicate directly to our audience members - who run small businesses, is that we want to make SARS easier and simpler. The goal is for businesses to comply. You also want to create awareness, clarity, and assurance,” he said.
The Small Business Development Agency’s (SEDA) Florence Mathebula also spoke during webinar. She explained that SEDA's mandate is to provide small enterprises with nine types of financial assistance. “We provide businesses with support and promote them in order for them to expand and become sustainable. We generally accomplish this with a variety of partners, both private and public. For instance, when you come to us, we don't just help you and leave you.”
Also present was Elliot Modisa, Senior Manager: Consumer Education at the FSCA. Modisa underlined the importance of financial literacy and instruction on how to deal with money management concerns. The conversation also included how the various institutions, as well as their representatives, continue to educate entrepreneurs on the resources that are accessible to them. Organisations such as the FSCA, SARS, SEDA CIPC, and NEF collaborate to empower and promote not only black entrepreneurs but also all small starting firms.
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