Benefits of a licensed small business
Sthembiso Garane from Ekurhuleni Department of Economic Development, said operating a formal small business enables entrepreneurs to gain access to funding and protection under the law.
He revealed this during the business registration and licensing workshop held at the Civic Centre in Vosloorus on August 29.
Garane said the City of Ekurhuleni invited all informal traders to a workshop to enlighten them about the importance of registering their businesses.
“Industry leaders and experts in the business registration fraternity are invited to educate hawkers and people running spaza shops, retail shops, restaurants or tuck-shops from their homes, about the benefits of registering their companies,” said Garane.
Officials from the Ekurhuleni Metro Police Department (EMPD), Economic Development, City Planning and BEE Commission were on hand to answer any questions businesses owners had about the enforcement of by-laws and business registration processes.
Garane said they would do anything to assist small and informal business owners.
“We are here to assist small business owners and stress the importance of being formally registered. We can assist those who would like to register their businesses. EMPD will assist by teaching them about compliance while BEE Commission will teach them about Broad Based Black Economic Empowerment (BBBEE),” said Garane.
Speaking on behalf of EMPD, Noah Khoza informed vendors about what is expected and not expected from them.
“Vendors must not run their businesses on the road if it will result in the obstruction of traffic. Those who are selling liquor must renew their licences on time. For health reasons, those who are selling food must make sure that they sell food that is fresh and edible,” said Khoza.
He said those who fail to meet the above mentioned requirements will have their business shut down.
Lindiwe Madonsela from BEE Commission, said vendors can buy shares from big companies by applying for vendor loans.
“Buying shares from big companies is not a difficult thing to do if you are a vendor. You just need to apply for a vendor loan. However, an agreement between vendor and that particular company must be reached. it must stipulate how you would repay the money. Normally some of the vendors use their dividends to repay the money,” said Madonsela.
Madonsela addressed owners of companies who employ black people in order to get BBBEE status.
“There are companies who use black people and deceive them by calling them directors of the companies. Often those people are nothing close to being directors but are cleaners or doing jobs that are not important within those companies,” Madonsela said.
She said those companies will be fined a lot of money for doing that. Madonsela said if people are aware that their names are used wrongly, they must call her office for help. She can be reached on 0126490910.
Even those who would like to know more about the BEE Commission are welcome to call her.
Norman Shongwe, one of the small business owners who attended the workshop, said this is helpful but not what black business people need.
“It does not guarantee that black-owned businesses will benefit from this,” said Shongwe.
