[Question] What stops you from starting your own business?

[BusFact]

I'm curious as to what the reasons are for you not having started your own business. For those that have started one, what are your reasons for not having started another one?

Is it a lack of finance; a lack of a suitable business idea; not enough time; not knowing where to start; not understanding the bureaucracy and taxes required; too much work involved; the fear of failure or ..... what?

So often we hear talk about how important the entrepreneurs are for creating jobs, so why aren't there more of them? Everyone who reckons they stand a chance seems to want to look for a job. I can understand the perceived safety of that option, but why not both a job and a business on the side?

I look forward to some of your insights.

[HR Solutions]

Ask yourself - if one of your staff opened up a business similar to yours or not even similar - How would you feel and what would you question for example ?

[BusFact]

Opening a business similar to mine would obviously be a conflict of interest. That would be problematic. However if they fixed cars or built websites over the weekend, why would that be of any concern to me as a business owner?

In any event that's addressing the perspective of an employer. I'm wondering why the prospective business owner is not starting something up. How often do we hear of people wanting to start their own business, but so little seems to happen. Why is this so?

[HR Solutions]

I do think that a lot of business owners have interests in other businesses - a lot of it and how much you do depends on finance, but yes I agree if you are an entrepeneur why stop with one business We could all dream of all being "Dragons" whereby you invest money in business whereby they generate themselves with minimal input

[wynn]

If you have followed the links on the 'dragons den' thread Peter Carruthers recommends starting any business as a sole prop working from your garage, spare bedroom or lounge until you know that the business idea is working and going to grow before going the whole legal, banking account and registering pty's etc. because if it doesn't work to shut it down is a cinch unlike de-registration etc. so that may be why none of the thousands of start ups are not visible to a researcher.

The other point that may answer your question is that all of the tiny one or two man businesses, even those in the townships, we talking spazas, hairdressers. back yard mechanics etc here, are not interested in registering because they see the Government as just interfering and preventing them from carrying on making a living because of all the red tape and hoops to jump through.

Vat threshold R1.5Mil most of these small businesses can only dream of doing that kind of turnover in ten years never mind one (R100,000 PM turnover will take 15 months to reach threshold and how many do that PM)so why bother registering, just pay the effen VAT when you purchase any goods and don't worry about claiming the pittance input credit.

[BusFact]

@Wynn - Dead right. It makes perfect sense to be a sole prop and not jump through bureaucratic hoops that keep moving. The people you are referring to are the ones that have done it. I'm not really concerned with how they have done it or structured their business. I'm happy for them and proud of them for just doing it. I would like to know about all those people who have not done it.

I'd really like to hear from those that aren't running their own business, and would like to know: Why not? What holds them back from doing so?

[HR Solutions]

I'd really like to hear from those that aren't running their own business, and would like to know: Why not? What holds them back from doing so?

Good question

[adrianh]

I'm curious as to what the reasons are for you not having started your own business. For those that have started one, what are your reasons for not having started another one?

Is it a lack of finance; a lack of a suitable business idea; not enough time; not knowing where to start; not understanding the bureaucracy and taxes required; too much work involved; the fear of failure or ..... what?

So often we hear talk about how important the entrepreneurs are for creating jobs, so why aren't there more of them? Everyone who reckons they stand a chance seems to want to look for a job. I can understand the perceived safety of that option, but why not both a job and a business on the side?

I look forward to some of your insights.

I can think of numerous businesses that one could start. The reaon that I haven't started anything other that the one that I am trying to develop right now is that I do not have the administative / management / systems skills. I find it difficult enough to try and keep tabs on my own silly litle business let alone 3 more.

People are very strange. Everybody want to make lots of money but none want to work / struggle / learn / risk / or do anything too inconvenient to get that money. Many people see having their own business in the same way they see going on a diet to lose weight. You se, people want to lose weight by taking a pill or skipping a meal but it shoudn't be to inconvenient. 99% of people can lose weight by eatng properly and getting exercise and by the same token many people can run their own little businesses....they don't because the inconvenience isn't worth the bother.

[Justloadit]

People are very strange. Everybody want to make lots of money but none want to work / struggle / learn / risk / or do anything too inconvenient to get that money.

I can not agree more on this statement.
It is a difficult statement to tell customers, that the "buck stops here", I will fix the problem. It is so much easier to say "speak to my manager" and smile at the customer.

It takes great effort to make a successful business, it needs continuous sacrifice and attention, and never mind the many months that there is no income, because any money that does come in goes into keeping the business alive.

What about no public holidays, or limited leave?
What about being the person plugging in the days that staff do not pitch up?
and many more that I can not think of right now

[tec0]

Capital... Don't have money then don't expect to make money. A start-up in this day and age is scary... Banks are not as forth coming as they tend to advertize and our economy is chewing on another fifty-five Billion Rand demand from Eskom not to mention basic infrastructures are failing. Yet there is money to be made but outside South Africa. Friends of mine are doing well in Botswana, Mozambique Madagascar and Mauritius. Others established themselves in Canada, United Kingdom America and Australia. America especially have a big demand for Electricians, Boiler makers and so on. So if you got the skill setting up a business abroad may well be a good next step

[adrianh]

Capital... Don't have money then don't expect to make money. A start-up in this day and age is scary... Banks are not as forth coming as they tend to advertize and our economy is chewing on another fifty-five Billion Rand demand from Eskom not to mention basic infrastructures are failing. Yet there is money to be made but outside South Africa. Friends of mine are doing well in Botswana, Mozambique Madagascar and Mauritius. Others established themselves in Canada, United Kingdom America and Australia. America especially have a big demand for Electricians, Boiler makers and so on. So if you got the skill setting up a business abroad may well be a good next step

Rubbish, it is the same as saying that you can't practice for the Argus because the bank won't give you R50k to buy a state of the art racing bicycle. Building a business is no different to practicing to run a race.....you simply get started and you keep on going, hell or high water.

[HR Solutions]

Capital... Don't have money then don't expect to make money. A start-up in this day and age is scary... Banks are not as forth coming as they tend to advertize and our economy is chewing on another fifty-five Billion Rand demand from Eskom not to mention basic infrastructures are failing. Yet there is money to be made but outside South Africa. Friends of mine are doing well in Botswana, Mozambique Madagascar and Mauritius. Others established themselves in Canada, United Kingdom America and Australia. America especially have a big demand for Electricians, Boiler makers and so on. So if you got the skill setting up a business abroad may well be a good next step

That is absolute rubbish.

[Houses4Rent]

Vat threshold R1.5Mil most of these small businesses can only dream of doing that kind of turnover.

Is VAT threshold now R1.5Mio? I just checked SARS and it says:
It is mandatory for a person to register for VAT if the taxable supplies made or to be made is, in excess of R1 million in any consecutive twelve month period.

Anyway, I see one of the major stumbling blocks is our labour law...

[adrianh]

I can not agree more on this statement.
It is a difficult statement to tell customers, that the "buck stops here", I will fix the problem. It is so much easier to say "speak to my manager" and smile at the customer.

It takes great effort to make a successful business, it needs continuous sacrifice and attention, and never mind the many months that there is no income, because any money that does come in goes into keeping the business alive.

What about no public holidays, or limited leave?
What about being the person plugging in the days that staff do not pitch up?
and many more that I can not think of right now

I was at work last night till 19:30. Got home, ate and continued reading up on solving a particular problem. Up at 8 this morning, off to work, then to a client, then to a supplier, then to deliver a order, home, sleep for 3 hours. I am now (Saturday 18:30) back at work casting parts for a Wednesday morning deadline. I will probably leave here in an hour or two only to return tomorrow and spend the day here as well.

The staff on the other hand left at 16:30 on Friday. Some are taking Monday off. The rest will be here on Monday then Wednesday.....They don't care whether the Wednesday morning deadline is met because the buck doesn't stop with them.

Like we said; everybody wants lots of money provided that getting it isn't too inconvenient.

[BusFact]

I can think of numerous businesses that one could start. The reaon that I haven't started anything other that the one that I am trying to develop right now is that I do not have the administative / management / systems skills. I find it difficult enough to try and keep tabs on my own silly litle business let alone 3 more.

I'm surprised you say that. Based on reading your posts over the years, you seem to have a reasonable grasp of the admin and management side of things. Are you perhaps referring to the time required to sort out all the random stuff that goes wrong each day, or are you referring to the weekly/monthly grind of payrolls, tax returns, accounts, etc?

Do the other numerous business ideas have less profit potential than your existing business?

People are very strange. Everybody want to make lots of money but none want to work / struggle / learn / risk / or do anything too inconvenient to get that money. Many people see having their own business in the same way they see going on a diet to lose weight. You se, people want to lose weight by taking a pill or skipping a meal but it shoudn't be to inconvenient. 99% of people can lose weight by eatng properly and getting exercise and by the same token many people can run their own little businesses....they don't because the inconvenience isn't worth the bother.

Now this one I like: "Its too inconvenient". They like the idea, but not the reality. Thanks for the insight.