Promoting a business revival

Sibongiseni Khumalo has been appointed
to assist local emerging manufacturers at the ESC.

The Cato Manor Entrepreneurial Support Centre (ESC) is now open for business at the Intuthuko Junction. The ESC has been established to promote the culture of establishing manufacturing ventures in Cato Manor. The ESC is under the guidance of Sibongiseni Khumalo with the help of Robin Winter, who has made a name for himself countrywide as an expert in the business incubation system.

The ESC is an initiative of the CMDA, the European Union, Unicity Durban and CSIR. There are 15 factory outlets that will be made available to residents of Cato Manor who wish to pursue manufacturing. The idea behind the factory space is to initiate contact with big manufacturers and convince them to outsource some of the work to Cato Manor industries, such as the manufacturing of car exhausts, burglar guards or furniture.

There will also be space for entrepreneurs who want to manufacture products such as detergents.

As part of its community outreach programme, the ESC has submitted the following tips on how to start a successful business

BUSINESS TIPS

• Establish your customer profile:
  If you need to start a business it is important that you study your customers first. Know their age. Do a needs analysis study. Determine their spending power. This will help you to provide a service or a product that has a market.
  You also need to identify a perfect location or site for your business.
• Tailoring your product according to your clients affordability:
  The needs analysis study will help to advise you on the product or service that you will offer, the price of the product, the marketing tool you will need to promote your business, and the location or site of your business.

Always endeavour to offer a unique product e.g if you want to sell fruit and vegetables always try to sell the biggest and the freshest in your neighbourhood, and most importantly make sure your products are the most affordable. This will eliminate the competition and increase your client base.

Pricing of your product is very important. For example in an informal settlement you do not need to sell expensive electric appliances, but rather sell paraffin lanterns. In formal residential areas with electricity connections it might be proper to sell expensive electrical appliances.

• Finding the perfect marketing mix.
  In marketing circles product, price, place and promotion are the key to a successful business. They are all important. Some products do not need to be promoted, but this does not mean you rest on your laurels.
  How you present and package your product is also relevant. Remember if you want to make a profit, be unique, be diligent! Satisfy your clients. A happy customer is a paying customer.

For further details contact Sibongiseni Christopher Khumalo on 261 5585 or 083 484 2028 at the ESC at Intuthuko Junction, 750 Francois Road, Cato Manor.

Business Audit and
Business Survey

The results of the business audit that was conducted in Cato Manor have been released. Although they do not paint the final picture, they indicate that women are becoming more involved in income generating ventures.

A total number of 9 788 households were visited during the survey and only 1 383 businesses were discovered.The survey indicates that 59% of the businesses that operate in Wiggins and Cato Crest are owned by women. But one worrying factor is that most people are engaged in retail business. The survey indicates that 64% of the businesses in Cato Manor are spazas, taverns, selling goods, or general dealers. This is heavily over-traded. While 18% of businesses are in the service industry.

Manufacturing is very limited. The number of businesses in the manufacturing industry is very small. It is only 4%.

Kokela Silimela of the Local Economic Development Department at CMDA said:"This is not healthy as the level of unemployment in Cato Manor is very high. Many of these businesses rely on the locals supporting them. We need more businesses that will attract outside investment to boost the economy. In this way we can create more jobs and reduce unemployment."

Information gathered from this study will guide the CMDA and other service providers in the identification of needs of local businesses and enhance the general understanding of the local economic environment.

"This data will enable service providers to design needs-driven intervention strategies. We think this information will guide people wishing to enter into business. They will be better informed about the economic environment, enabling them to take advantage of the opportunities that are available in Cato Manor," said Kokela.

Cato Manor Small Business Fair

The week-end of 27\28 July has been chosen as the date for staging the last Small Business Fair under the banner of CMDA. Lynx Consulting has been selected to spearhead this year’s fair. This fair promises to be the best and biggest ever.

Emerging entrepreneurs participating in this year’s event will receive professional assistance and guidance through on-going support and guidance and where necessary, finance will be arranged for them and business opportunities will be identified.. This is one element that has been lacking in the previous Business Fairs. The positive spin-offs of this year’s event will be felt long after the fair.

The Business Fair benefits both exhibitors and other members of the community as jobs are created. Local service providers stand to benefit as most services will be sourced locally. Local business people are already bracing themselves for this and some of the services that will be sourced locally are cleaning, catering, security, making of promotional material like banners, caps etc.

The Business Fair has got both financial and non-financial advantages as this year’s event organiser will be working with two local events organiser for skills transfer purposes. This is a means of building local capacity so that in future, events of this nature are managed by local people.

For more information about the Business Fair please contact Mabusi Ndlovu at CMDA.