SA needs entrepreneurs more than ever, says restaurant chain boss

Through African News Agency Post publication time February 25, 2020

Share this article:

CAPE TOWN – South Africa needed more entrepreneurs than ever before, said Manny Nichas, managing director of the group of Mozambican restaurant chains.

With a persistent weakness in the economy, continued pressure on consumers and an increasing number of job cuts, relying on the usual notion of traditional employment is worth nothing, he said.

“Small and medium-sized enterprises are the absolute key to restarting growth in South Africa,” Nichas said, calling on the government and the private sector to refocus their attention. “Hype and slogans don’t create opportunities and action speaks louder than politics. ”

He added that the barrier to entry when it comes to funding startups or working capital for growth remains high.

“I really hope the next budget will focus on driving the economy from the bottom up. While the attraction of foreign direct investment remains essential, the development of our national economy also requires special attention, if not more.

The Mozambik brand started with a single store in 2005 and has grown to 17 outlets, with plans to double that number by 2023. In 2019, the group experienced 29% revenue growth .

“During this process, we created 450 direct employment opportunities with an additional catalytic impact of around 1,000 jobs. It might sound insignificant in isolation, but imagine 10,000 entrepreneurs each creating 100 jobs in each city. Government, financial institutions and development agencies should have this notion in their sights, ”Nichas said.

South Africa no longer has the luxury of creating barriers for entrepreneurs, he said, and institutions – financial or otherwise – shouldn’t drag their feet when considering applications either.

“For entrepreneurs, time is money, and financing is everyone’s biggest challenge. So while many advertising slogans promise a helping hand, the truth is that skinless in the game ( own financing), an entrepreneur has a near zero chance of financing a startup. Franchising could present itself as one of the solutions given existing support structures, proven business models and feedback.

Also, he said, a solid business plan that supports a good idea is a very real contribution, has monetary value, and should be a key criterion for lending.

“While not all startups are successful, perhaps the government should consider SMME guarantees to financial institutions. After all, imagine if the billions of guarantees for SAA alone were redirected and helped support startups. Imagine the economic benefit we would have already tasted, ”he said.

– African News Agency (ANA)

Source link

About Vivian J. Smith

Check Also

Taco Restaurant Chain Opens First Missouri Location

Tacos 4 Life’s offerings include a variety of a la carte and in-meal tacos, salads, …

Leave a Reply

Your email address will not be published. Required fields are marked *