Banks, red tape throttle start-ups

I CAN only endorse what Bidvest founder Brian Joffe had to say in “Too many rules bad for wouldbe entrepreneurs” (March 9) about “a start-up”.

“Don’t start a start-up, buy it.” After a fairly successful corporate career, I left to start my own business as I, too, wanted to be my own boss and spend more time with my family.

I had realistic expectations, a business plan and sufficient capital to ensure I could get on the road to prosperity.

Three years later, my business is still here and still not yet on the road, but rather on the kerb. It has been a huge struggle to gain credibility and acceptance in the marketplace; a struggle to get assistance from the banking institutions; and a struggle to steer through all the legislative bureaucracy.

I hear all the talk about small businesses being the backbone of the economy, but there is little out there to encourage them. I have had to outsource my labour as it is too demanding to try and understand all the labour laws and nuances and other associated costs that come with a workforce (have created 22 new jobs).

I have brought in outside finance in the form of “angel” investors as the banks did not have the vision to extend finance, and my capital base eroded. And still I look to grow this business and create wealth with no outside incentive from local or national government.

I pay taxes in the form of rates, levies, VAT, SDL and UIF, to name a handful.

I will build this business and then sell it to Joffe so I can be my own boss and spend time with my family.

— Lionel Nieburg, Port Elizabeth