Small businesses prove resilience in troubled times
With “special” days to commemorate everything from parenthood to cycling, World Entrepreneurs Day, which fell on Saturday, would have been an easy one to miss. Not this year, after what has been the most turbulent period that any small business will have experienced. Unfortunately, many will not have survived the shocks from the Covid-19 outbreak and severe lockdowns that left them unable to trade. And as they were recovering from that, they were dealt another blow with widescale rioting and looting. SA’s business people are nothing if not resilient, and today we bring you some of those stories that give hope amid the gloom, including that of nanny-turnedentrepreneur Carren Chakanetsa, who was forced to pick up the pieces and start over again after the July violence.
Flexible and shared office space was all the rage years before the world was crippled by the Covid-19 pandemic. However, even providers of these services saw their businesses derailed by the Covid-19 pandemic.
The Business Exchange, founded by David Seinker, is one flexible working space business standing out from this situation.
The company owns six office sites where it rents out space and services to tenants using flexible leases. They may use the space for anything from a few hours a day, to once a week, for a six-month period, or permanently. Tenants also have access to funding and networks.
Seinker has been working in commercial property for all of his working career.
“My background is property, and I worked at a property group in the inner city for seven years, redeveloping old dilapidated buildings,” he says.
He managed a team of 200 people, and the entire property management operation. After deciding to embark on an entrepreneurial journey, he set up his own business, focusing on property and private equity deals.
“I’m not sure I was born an entrepreneur, but I went on my own path at the age of 29 as I figured I needed to learn first.”
The Business Exchange was founded in 2014. “I needed an office and I rented at a business centre. My company connected businesses and investors, through a website portal, which allowed entrepreneurs to present their opportunities through video pitching. But while meeting my clients, I learnt that the business centre was full and they had a waiting list,” he says.
“Suddenly, my passion for property pushed me into the idea of creating a workplace to connect people, conclude deals and provide them with office space and the resources they needed to succeed.”
The Business Exchange now owns six sites in core nodes including Rosebank, Sandton and Morningside and expects to own 25 in five years.
It services growing and established startups, but it has enjoyed far greater demand from larger companies seeking to reduce risk, cut costs and adopt hybrid working solutions.
“By 2022, I expect our portfolio to be weighted 50-50 between these markets.”
The management uses a special tool to find office sites for the Business Exchange. “We have built a tool that is used to assess new sites. It is complex and detailed and it takes many factors into account such as proximity to landmarks, retail [and] deal structures,” says Seinker.
“It allows us to assess new locations through a scoring methodology that has been built over seven years. We are a business brand, so [central business district] nodes across cities are important for our growth, but we are looking to expand across other areas as demand for flexible working increases.”
The Business Exchange is looking to expand to other African countries too. “I have travelled many times to Accra and Nairobi and we would look at other growing economies too.”
Only three new sites will open in SA this year as Covid-19 has caused delays with travelling and conducting business. “Next year we will aim for double this. I’m just happy that we have come through Covid-19,” says Seinker.