Why Black Businesses struggle to grow...

South Africa. The great liberated country with the second largest economy in Africa before Nigeria. Firstly South Africa is one of the best, if not the best destinations to come to while visiting the continent of Africa. With a great history of racial division and transformation the black race still struggles a great deal to grow their businesses. Only a few elite are eating the precious rewards of being self employed while employing others to further the vision and objectives.

Lets look at common reasons why Black South African businesses struggle to make ends meet within the 21st Century.

Business Administration

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In South africa many businesses are not registered. You cant pick them up in the legal registration system of South Africa called CIPC (Companies and Intellectual Property Commission). Many of the South African Black businesses operate from hand to mouth. There is no appreciation for culture, admin, structure and even the vision is not a vision that brings a solution to humanity but rather "How quick can i make millions".

Business Administration is a vital need to grow a business. I have came across businesses that don't even have proper admin, workers are paid late, suppliers are paid late and professionalism is not valued. I once had customers that i would spend more money chasing them to pay for the services rendered than what they paid. I had to let them go. You even see this culture within the government of South when it comes to entrepreneurs. I have literally seen companies close down because the government could spend over six months without even paying its suppliers. And they would sometimes have to be legally obligated through court procedures in order to pay what has been rendered.

A lot of black business I have come across don't honour debtors and suppliers. And unfortunately the country we live in looks at progress from a racial perspective. How do you change this? Start valuing proper admin, pay workers on time and look at the fact that they have bills too. Create healthy working environments. Treat workers like workers and not family members. Avoid stagnation and procrastination. Register your company. Start offering professional services, leave your friends out of your business. And finally live up to the vision and values of the business.

Service Delivery

We hear this word almost everyday. Have you ever come across a company that delivers services late and not at the promised time. They lie to almost every customer about their services. You always have to be running after them in order for them to deliver a service as they promised.

I had to make a choice in business on whether i would continue with certain black businesses or not. I certainly did not continue with them, i was loosing clients because of them. One business i partnered with, once said to me when they struggled to deliver a service, "you know how we do mos". I almost lost a contract because of that attitude. Professional services are a need to make it into the business demands of this age. Being truthful and honest about what you deliver is a need rather than a game. You must deliver professional great services on time without dishonesty to anyone.

Black businesses undermine other black businesses.

This is a hard truth to swallow. Most black business owners undermine other owners. And even though you provide high quality services they will avoid you. There is this pull down syndrome that exists among black entrepreneurs. This is why we cant work together. There is always a negotiation for discount, neglect-ion of paying on time and even fighting to the point of no transactions at all because of simply undermining the black business.

I remember this one time i had to embroider my uniform for my workers. I remember walking into this one shop owned by a black man. The place looked like a mess but the quality of embroidery was better than anything I had ever seen. So I ran out of the offices and went to some fancy white owned embroidery business. I paid them and they did the work. It was nowhere near what the black business owner was doing. I was in so much regret.

Since that day I support professional black businesses with a passion, only for those who provide a great service. Before I go for a service, I first look for a black business I can support and if I find one and I am happy with what the end-results are, I get Into business with them. Just because there are so many failing black business does not mean that there is no black businesses out there that actually provide real time quality services.

I hope you learnt some snippets on how you can add value to your business. My name is Rick Netshiozwi the founder of RNM Media and Sound. We empower business to become professional and outstanding out there. We help build businesses from scratch. Visit us at to get more of what we do or simply call us at 012 546 1716, you can also email us at


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