KZN's help centres offer support for small firms
August 7, 2008
By SLINDILE KHANYILE
Durban - The KwaZulu-Natal (KZN) government has established one-stop help centres across the province to help reduce the number of small businesses that fail in the first two years.
"The mortality rate for small businesses is pretty high," said Zweli Mkhize, the province's MEC for finance and economic development.
"It's a serious matter because [each business] goes down with someone's money.
"According to the Ithala loan book, 75 percent of the mortality rate is in the first two years. That is a serious challenge and we need something drastic to change that."
The centres, aimed at co-operatives and small, medium and micro enterprises (SMMEs), will offer general business advice as well as guidance on issues related to business planning and accessing finance.
The province plans to spend R13.1 million on these centres in the 2008/09 financial year. Another R14.2 million has been allocated for the following year.
Nine one-stop business support centres for SMMEs and co-operatives have already been opened in several municipal districts.
These centres house the offices of various small business support agencies, such as the Small Enterprise Development Agency, Ithala and Khula.
In some centres, representatives from the major retail banks advise potential and existing entrepreneurs.
Mkhize said that the province planned to have one of these shops in each of its municipal districts. The shops would minimise costs for entrepreneurs and simplify the administration process.
"The idea is to create centres that would have all the services that entrepreneurs need," he said. "All you have to do is go to that one place, instead of moving from one area to the next.
"This will save people transport costs and it will align the services. Ideally, there should be an Ithala bank branch in each and every one."
Support centres have been opened in Amajuba, eThekwini, Sisonke, Ugu, uMgungundlovu, uMzinyathi, uThukela, uThungulu and Zululand.
Mkhize said that although financial assistance was important for SMMEs, there was a greater need for continuous training and support.
At the same time, small business owners had to understand that the funds provided by the government were not free. They were loans that had to be paid back.
Mkhize added that there was a need to work on the attitude of employees at the centres, because "sometimes people are discouraged to go there because of the way they are treated".
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