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 ?

[SilverNodashi]

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 ?

Good for him! Hopefully I have thought him well enough to carry through with it.

[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.

[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...

[BusFact]

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

I agree its one of the stumbling blocks to increasing the size of a business, but is it really stopping someone starting a small business? Often the small business would be just the business owner - no labour law involved.

[wynn]

Often the small business would be just the business owner - no labour law involved.

Aah! now we reach the kernel of truth behind what you are asking, AdrianH has said it as well

As a solopreneur you have to do everything yourself even if it is inconvenient at the time (Big order to get out, Vat returns to be calculated, public holidays in between)

Then the majority of tentative small business people ask the wrong people the wrong questions, their accountant and lawyer says they must register this and that and do that, then they look at the labour law because they fancy employing someone to do the grind, then provisional tax before they have broken even etc., so there you have it, people are not prepared to take a chance with the threat of big brother looming like a big ogre over their heads.

[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?