Appendix: Question List
Introduction
Hello. My name is Peter Haasjes. I am a Dutch researcher and my research is about entrepreneurship in the Cape Town Area. I am interviewing a number of entrepreneurs, like yourself, about the way they do business. First, I want to thank you for cooperating, the pleasure is all mine.
Like I said this interview is about entrepreneurship. That means that it is aimed at the way people start their businesses. The interesting thing about starting a business is that it is different in every country. Like you will probably know, in this country it is hard to start a business. At least for a big number of people.
Most people in more or less developing like South Africa face a number of problems that need to be solved in order to make a profitable business.
The interesting thing about yourself, and a number of other entrepreneurs in this research, is that you somehow overcame all these problems. You became successful. This study is especially about overcoming these problems. I, and a number of other people, am interested in how you solved the problems that all entrepreneurs face. So, I am mainly interested in the past of your business and how you came to this stage. The goal of this research is to reveal the way in which entrepreneurs, like yourself, solve their problems. Do you understand what I mean?
All right then. Entrepreneurs in developing countries mostly lack a number of resources. These resources can be all kind of things, like money, education or something else. I am going to ask you if you were facing a problem, like a shortage of money, when you started your business. If you had, I want to know especially how you overcame this problem. Where did you work on, who did you phone to, that kind of things. Do you understand what I am saying?
The first questions are about Finance. After this we are talking about more economical problems and the last bit of this interview is about education.
Research Summary
This research covers a number of subjects regarding entrepreneurship. In the
first place it is about basic resources. We follow Prahalad and Hamel (1991) that
not every entrepreneur can posses unique resources. Therefore they should
stretch them in order to achieve fit with their environment. In this case we are
interviewing a number of entrepreneurs that are from a developing country and nevertheless seem to become successful. In this research we view basic resources as financial, economical and educational resources. We have found a number of twelve basic resources in literature (paragraph 3.4.4). The special South African circumstances and policies required a description of the environment of Micro Entrepreneurs from a governmental point of view. In this case study we are going to find out how the entrepreneurs solved the problems of obtaining the basic resources.
General Personal Questions
1. What is you age?
2. Can you tell me something about your background?
3. In what kind of community did you grow up and where?
4. Are there many other entrepreneurs in your community?
General Business Questions
1. Can you please write down your full name, business address and phone number?
2. What is the main form of income of your business? (Can you describe the way you earn your money?)
3. What is your annual turnover at this moment?
4. Are you VAT registered?
5. Do you have any employees, if yes, how many? Are they registered as your employees?
Financial Questions
1. A: Did you have difficulties getting loans from banks when you started your business?
B: How did you get loans from external parties?
C: Who helped you solving this problem?
D: Did you use, or consider using, the services of government agencies like Khula, or Umsobomvu?
2. A: Did you have access to funding by NGO’s when you first started you company?
B: How did you get access to NGO funding?
C: Who helped you solve this problem?
D: Ever heard from the initiative of the Western Cape government called the Red Door Project or challenge or Umsobomvu that connects entrepreneurs and NGO’s?
3. A: Did you have any difficulties getting supplier credit when you founded you business?
B: How did you solve this problem?
C: Who helped you solve this problem?
D: Did you ask for supplier credit of a specific supplier? Perhaps suppliers that you knew from previous experiences in your business. Did somebody offer the supplier collateral on your behalf?
4. A: Did you have any money yourself when you started your business?
B: How did you get the money (or collateral) to start a business?
C: Who helped you solve this problem?
D: Did you get help from people in your community like your parents, or other relatives? Or some contacts that serve as silent business partners?
Economical Questions
1. A: When you first started your business did you have access to a:
Fixed business premise outside your own home?
A private or business vehicle like a car?
Land phone line?
Cell phone?
Computer with internet?
B: How did you get access to these facilities?
C: Who helped you getting access?
D: Ever made use of facilities that are offered in a library, internet café or the Business Place?
2. A: Did your business suffer from crime when you first started it?
B: How did you solve this problem?
C: Who helped you solve this problem?
D: Did you have access to security facilities such as armed response or a Shopping Mall?
3. A: Did you have any difficulties finding customers when you started?
B: How did you solve this problem?
C: Who helped you solve this problem?
D: Ever heard from programs from Ntsika, the Red Door Project or Capemac that are aimed at SMME’s and getting more market share? Did you use them?
4. A: Did you have any struggles with your administration when you started your business?
B: How did you overcome this problem?
C: Who helped you overcome this problem?
D: Ever considered using help from for instance The Business Place or Ntsika? Did relative or business contacts help you with solving administrative problems?
Educational Questions
1. A: Did you have any discussions with people in your community when you started to make money?
B: How did you solve these discussions?
C: Did somebody help you to solve the problem with your community?
D: Did for instance some relatives support your business and convincing other that this is a good plan?
2. A: Did you receive any entrepreneurial training before you started a business?
B: How did you get entrepreneurial skills?
C: Who helped you to obtain entrepreneurial skills?
D: Did you do any courses previous to you business start up or did any organisation give you advice like Capemac or Red Door Project?
3. A: Did you receive less than five years of formal secondary education?
B: Where did you get your knowledge from?
C: Who helped you getting this knowledge?
D: Did you receive any education at places that weren’t related to a
school?
4. A: Did you always feel like starting a business before you started it?
B: How did you become willing to start a business?
C: Did anyone help you become more self esteemed?
D: Did you get any help or ideas from entrepreneurial relatives or lectures about entrepreneurship?
Check Questions
1. A: Are there any problems I didn’t address that were prevalent before you started a business
B: How did you solve these problems?
C: Did anyone give you help to solve these problems?
D: Was there any government agency or NGO involved in solving these problems?
I think your story is really interesting and I am going to use it most definitely for
my research. Do you have any questions yourself? It’s been quite a long talk, I
must say I enjoyed it. Thank you for your time. I can send you the report if you
note your contact details.
Appendix: Black Economic Empowerment Act
The Black Economic Empowerment (BEE) act is installed to involve white owned companies in empowering the Previously Disadvantaged Individuals. In the nineties, the law was directed at ownership. This called narrow based BEE. More recent, the law was changed in order to direct it at a lot of business processes like training, procurement and ownership. This is called broad based BEE. Unlike some laws that have more or less the same goal, this law works in a very subtle way. It is aimed at government contracts. In South Africa, you are obligated to support a certain amount of black people to do business with the government.
Many businesses are dependent on doing business with government and even more businesses are dependent on doing business with companies that do business with government. It is in fact working through market relations and therefore voluntary. This is considered by many as a very positive development.
Even more when we consider the recent practice of forced land acquisition in the neighbouring country Zimbabwe, which is opposed by many western free enterprise advocates (Akwabi-Ameyaw, 1991).
Many South African fear BEE, but according to Mr. Zeelie fear sterns from a lack of understanding (Zeelie, 2005). In the definition of BEE blacks are African, Coloured and Indian. In order to get a contract with the government, companies have to get a BEE status. The following table gives an overview:
Status Score
Excellent contributor to BEE Total score of 80% and above Good contributor to BEE Total score of 65% to 79,9%
Satisfactory contributor to BEE Total score of 40% to 64,9%
Limited contributor to BEE Total score of below 40%
Table 32: Broad bases BEE status (Source: Mr. M.Zeelie)
The follow items are considered when measuring the total BEE Score:
Item Percentage Ownership 20%
Management 10%
Employment Equity 10%
Skills Development 20%
Preferential procurement 20%
Enterprise development 10%
Residual (social responsibility) 10%
Total 100%
Table 33: BEE scorecard pillars (Source: Mr. N. Zeelie)
Especially because of the preferential procurement, this law will mean a shift in doing business in South Africa. When companies are discovering the impact of this law, they will soon send each other letters in which they ask for a BEE status. Procurement accounts for 20% of the score. There are target scores for different industries. The score will be determined by DTI accredited agencies.
They will only issue a status classification, like Good Contributor. According to
Mr. Zeelie, “to BEE or not to BEE” is becoming a very important question for
South African businesses in the near future.
Appendix: Business Profile Active Chicks
Figure 19: Fax Active Chicks
