Taking money matters to tavern owners, construction companies and informal traders
How business owners conduct their own personal finances, can make or break their businesses, tavern and small construction owners and informal traders heard at the KZNFLA Financial Education Summit in Hluhluwe today.
The Summit was hosted by the KwaZulu-Natal Financial Literacy Association (KZNFLA) in partnership with Provincial Treasury, the uMkhanyakude District Municipality and the five local municipalities, i.e. Jozini, Mtubatuba, Big Five False Bay, Umhlabuyalingana and Hlabisa in the far northern parts of KZN.
Provincial Treasury head, Mr Simiso Magagula, told the small business owners that one of the reasons why some entrepreneurs cannot borrow money from banks, is because of their poor credit records. “Banks take the stance that you will not succeed in business if you cannot manage your own money.”
This was confirmed by KZNFLA SMMEs and Co-operatives Focus Group leader, Ms Lynn Cocciante, who shared an experience of a brilliant business plan that was rejected by a bank because of the applicant’s own poor personal financial record.
Provincial Treasury, Ithala Development Finance Corporation, Standard Bank, the South African Revenue Service, the KZN Liquor Authority, Construction Industry Development Board and the International Labour Organisation congregated at the one day financial education training summit to guide the small businesses in maximising profit in their businesses.
Magagula said the entrepreneurial road can be lonely and scary and that government is placing great emphasis on mentorship programmes and micro and small business finance and non-financial support. He also shared Provincial Treasury’s “Pay within 30 Days” programme with the audience and officially released the preliminary results of the first ever pilot study on financial literacy household levels.
“We believe this KZNFLA survey, driven by the macro-analysis unit of Provincial Treasury, in partnership with the community development workers of the Department of Co-operative Governance and Traditional Affairs and the Durban University of Technology, can assist us to help people better if we know what their challenges are.”
He expressed concern about the low number (53,6%) of sampled households that seem to budget, more than half that don’t have an emergency fund, while 62,5% are not covered by a medical aid and close to 60% who don’t know where to look for financial advice.
The results are now being analysed and will be shared with relevant KZNFLA partners. A full provincial survey will also be considered.
Pointing out the similarities between government spending and business spending, he said government entities have to follow the same principles as ‘for profit’ companies:
“We must understand our finances; manage our finances; be diligent in cutting frivolous costs and we must boost productivity among employees. Financial education to empower individuals to manage their personal finances (debt and savings levels) is a crucial step in increasing entrepreneurship and decreasing new venture failures. In addition a proper understanding of revenue and turnover is vital when it comes to maximising profit.”
KZNFLA Chair, Mr Artwell Hlengwa thanked all the partners and sponsors, “ You are taking our Province and people forward when you enable them to make informed financial decisions,” he said.
uMkhanyakude Business Chamber chair, Mr Hebron Nxumalo, expressed his gratitude for bringing industry-specific business finance training to the area, and linking personal financial skills to business finance.
“A successful business makes profit. The skills that lead to this success are often not there,” he said, adding that knowledge is power and people are suffering because of a lack of knowledge.
“We cannot alleviate poverty without financial education. We are happy to embark on this Summit today and we urge business to take charge and see that the doors of learning be open to everybody.”
Enquiries:
Ntokozo Maphisa
Cell: 0827730937
Email: ntokozo.maphisa@kzntreasury.gov.za or ntokozo.maphisa@gmail.com or ntokozo.maphisa@gmail.com
Sipho Ntombela
Cell: 073 898 0636
Email: operations@finlitsa.co.za
Christi Naudé
Cell: 082 861 0114
Email: exec@finlitsa.co.za
