The challenges of running a business in a poor community

René Baron (36) from Hanover Park had started a small business to feed her family when her house was burnt down and she lost everything.

Baron explained, “I started in 2009, but on a small scale. I had a huge setback as I had no business plan but wanted to do something I was passionate about. I restarted in late 2012 and I registered as Jewellery by René. I’ve always had a passion for jewellery - I like blingy stuff. I then restarted selling costume jewellery pieces from Mr Price and Identity. I added handmade beaded jewellery to my line. In my business my daughter and I make the jewellery. I started selling jewellery to people in my area and would market it by word of mouth but it didn’t always help. Especially in winter, getting resources from the workshop and travelling by public transport is an effort. The crime rate in my community is high and when I get orders people often turn me down because they wouldn’t want to collect it in the area. Many times I have felt like giving up but I just kept on going. A miracle doesn’t happen overnight.”

Baron had to figure out how to keep her business going. She visited a company in Cape Town that provides support for small business owners, to get ideas about to jumpstart her business. Levandra Naidoo, co-founder of the Business Place, explains that it is a non-profit company funded by the city. “The business primarily provides support that struggling businesses need to grow. For example, many businesses close down due to lack of skills, so we offer workshops on online marketing and process procedures of supply chain management with the City of Cape Town, along with various other workshops.”

Baron said, “I started attending workshops at The Business Place, like accounting classes on how to manage my books, marketing strategies and the process of strategic planning. It’s difficult running a business from home. When clients order [jewellery] via social media it is difficult as I have to consider charges for travelling. Because clients often don’t want to come to a dangerous area, I meet them at the Business Place.”

The Business Place is one of several businesses that offer this kind of support to small business owners. GroundUp also spoke to Meli Gqobo from Hubspace Khayelitsha, a “business incubator” for entrepreneurs that opened at the beginning of the month.

According to Gqobo, the purpose of places like Hubspace Khayelitsha is to show people from poor communities that they can make a difference in their community while supporting themselves by running a small business. Hubspace Khayelitsha also works closely with a Khayelitsha-based technology company called Silulu Uluto technologies, which has around 16 computer centres based in and around Khayelitsha.

Among other things, Hubspace offers a “hot-desking” service, where people who cannot afford to rent premises for a business can come to work. They then have a desk of their own, access to telephones, boardrooms, and the internet. Gqobo says, “I think there is a whole lot being done for entrepreneurs, but now it is up to them to go out there and see what is [available].”

Baron employs two members of staff to sell her pieces. With employment rates so high, it is difficult for many to find jobs, so she helps others in her community by providing this opportunity for extra income. It is not easy having a business in the community but a positive attitude is key. She has started selling her jewellery at flea markets in Hanover Park and Khayelitsha which is helping her business to grow.

GroundUp asked Baron what message she would like to give to others wanting to start a business like hers in the community. “I would motivate others. Because you are your own boss and you can determine your success.”