“Small, Medium and Micro Enterprises (SMMEs), also referred to as small business, play an important role in an economy. They can be key drivers of economic growth, innovation and job creation. In South Africa, government recognises the importance of this segment of business activity, so much so that a new Ministry of Small Business Development was established in early 2014."
South Africa struggles with an alarmingly high national unemployment rate of 25% (Statistics South Africa, Quarter 2: 2015), which is partly exacerbated by a chronic
shortage of skilled labour.
Against this backdrop government is aiming to put policies, strategies and programmes in place which aim to create an enabling environment for small business.
The range in size is very wide. The definition for SMMEs encompasses a very broad range of firms, some of which includes formally registered, informal and non-VAT registered Organisations (The DTI, 2008)” SEDA 2016
The National Small Business Act divides SMMEs into the following categories:
|Category of SMME||Description|
Operates in the informal sector of the economy.
Mainly undertaken by unemployed persons. Income generated below the poverty line, providing minimum means to keep the unemployed and their families alive. Little capital invested, not much assets. Not much training. Opportunities for growing the business very small.
Between one to five employees, usually the owner and family.
Informal - no license, formal business premises, labour legislation Turnover below the VAT registration level of R300 000 per year. Basic business skills and training Potential to make the transition to a viable formal small business.
|Very small enterprise||
Part of the formal economy, use technology
Less than 10 paid employees Include self-employed artisans (electricians, plumbers) and professionals.
Less than 100 employees
More established than very small enterprises, formal and registered, fixed business premises. Owner managed, but more complex management structure
Up to 200 employees
Still mainly owner managed, but decentralised management structure with division of labour Operates from fixed premises with all formal requirements.
Note: Women represent approximately 56 percent of the survivalist company category, 38 percent of micro-enterprises with no employees, and 15 percent of micro-enterprises with 1-4 employees.
Small Businesses are an essential part of the South African economy. Across the country, people place their hopes for their families’ future in these enterprises succeeding and growing. Whether you have six or 200 employees, as the owner of the business, you are challenged with a host of issues that take you from your core key skill. Small business owners want growth, they want to provide a fair living for their staff, make a profit and deliver excellent services and products to their customers.
But as the business grows, so do the challenges you have to face. For example, if you are a plumber and your service is excellent, you decide to get another vehicle or two, and add two workers to each bakkie.
You probably have also had to hire someone who is computer literate, can do the books, pay the wages and take customers’ calls. Your teams are dispatched and within another hour the customer is back on the phone asking where they are. You have now interrupted your own job to try and solve the issue. In the meantime this is an old customer and for the first time they are complaining.
By the end of the week or month, you don’t know why the fuel costs are so high, one of your vans has received a speeding fine, and the timesheets are impossible. Did they work overtime? Were they at the right customer? Was the job done to the your satisfaction and that of your customer?
The bigger your company gets, the more headaches come your way. Econz Wireless has a solution you can afford, will solve many of these problems and increase worker productivity, your reputation and lower wage and fuel costs.
- Timecard GPS gives you instant access to:
- Tracking your mobile workers
- Track the routes they take
- See how long they spend at the customer
- Photograph the job before and after completion
- Have instant access to your workers time and attendance, including breaks
- Eliminate paper timesheets