The Role in Doing Business
Nanda FikriK2212055Noviana K.K2212056Novita DewiK2212057Nur Amalina M.K2212058Prayogik ArgaK2212059Puspa Kurnia D.K2212060DOING BUSINESS INSOUTH AFRICA
Before starting Knowing your reasons to start a business there Knowing your reasons not to start a business there After you know what the result is, you can decide the business structure to use in order to run your business Sole Proprietor Close Corporation Private Company Make a business plan
How to start business inSouth Africa?SOLE PROPRIETOR: this structure means you are the business and no new entity is created. The new Act allows you to trade in your personal name, but if you start the business now and want to have a trading name like A plus plumbers or ABC Consulting, then this name will have to be registered with the CIPC atwww.cipc.co.za.CLOSE CORPORATION: Also known as a cc. This form of business has been discontinued and is no longer an option if you are only starting now. CCs that existed before 2011 can continue to exist, but nor more are being registered.PRIVATE COMPANY: This entity is separate from you personally. It will have the owners (shareholders) which may be one or more persons who own the company and the managers (directors) who run the company. Sometimes these are the same people, but not necessarily.
2Lets get started Step 1 is to create and register your company Step 2 is to open a bank account Step 3 is to start trading Develop your own businessThere are many free and low cost services out there that can greatly assist the small business owner in becoming more productive and profitable; you can advertise your own business by giving newsletter, creating a good website, or advertisement on TV.Knowing your problem you may find thereRisk and the impact in South Africa you have to know
Political RiskOne Party dominates politics Insufficient transparancy State as Stake holder
Regional Instability Weak Undermines investor confidence Capacity to enforce law
Corruption due to Conflict Liability and reputation, of Interest uncertainty in procurement practices
EconomicSlow economic growth weaker competitive advantage
Critical unemployment strenghten populism, weakerlevels free market
Inadequate liberalization over regulated sector
Black Economic uncertainty re-current and Empowerment future government intervention and regulation
Infrastructure Supply chain concernOperationalLabor market rigidity Increased cost, lower productivity Over-regulation
HIV/AIDS pandemic Increase cost, HR concern, liability exposure, societal instabilityDangerously high crime level Increased cost, compromise safety of personnelFinancialHigh inflation, high interest high in operational cost and cost rates of capital
Vulnerability to systemic crises Unanticipated losses, undermines investor confidenceThe simplest part of a meeting should be the introduction, but in reality this can be the most complex in South Africa. In African and Afrikaans culture a man is introduced first. Knowing who fits into which box may be indicated by the name .During recent years, business has become increasingly casual in South Africa, addressing people by the first name being more of the norm. Many of the surnames in Africa are almost unpronounceable, so this saves one from tongue-tied and potentially embarrassing moments.In most countries religion and politics are taboo topics, and this has been very true in South Africas chequered history. A majority of South Africans are only too happy to discuss the changes that have taken place
CONVERSATION ETIQUETTEGenerally speaking the South Africans are direct (and often loud) communicators but they are also very aware of what, how and to whom something is being said. People will be conscious of what may or may not make someone uncomfortable. The communication style is very much dependent on the level of a relationship; the closer people are the more comfortable they will be with speaking openly and honestly. Relationships in their infancy require more tact and diplomacy.Although the majority of businesses work in English, there may be occasions where having materials translated into Afrikaans could make a good impression, especially if you are working with an Afrikaans company in areas like Bloemfontein or Pretoria.
You must avoid:Thumbs up (sexual harassment): if you stretch your thumbs up to someone, it means you want to insert your thumb into that persons anus.V-Sign (Mocking Code): if you make V-Sign in South Africa it has similar meaning with putting up your middle finger in America, because V-Sign is a very rude gesture in South Africa.Moutza: this is one of the rude gestures that exist in South Africa, all of this began from the Eastern Roman times where people throw dirt into the faces of criminals. This hand gesture has a meaning like that or your face like a shit or other disgusting thing.Dont touch someone arms or stand too close to someone.Dont put your hands in your pockets, on your hips, or cross your arms in front of you.
GESTURES AND MIMICFORMAL BUSINESS DRESS CODE FOR MENOUTFIT AND PERFORMANCE
Light shirtTieDark SuitPolished Shoes
FORMAL BUSINESS DRESS CODE FOR WOMEN
BLAZERSKIRTHIGH HEELSTROUSERS
CASUAL
MAY-AUGUST
LIKE AND DISLIKE MANNERDO maintain eye-contact at all timesUse formal titles when addressing individuals Bring the host/hostess a gift, when you are invited to come their home.
Arrive on timeAppointments are necessary and should be made as far in advance as possible.Handshake is the most common greeting
DONT raise your voice or interrupt whilst your South African counterparts are speaking. DONT show impatience towards decision-making. DONT point at someone with your index finger
DONT arrange the meeting from mid December to mid January or the two weeks surrounding EasterDONT keep hesitation during the conversationDONT rush deals
South Africa is a sophisticated and promising market. It has a well developed economic infrastructure and opportunities in its emerging markets.Strengths of the South African market include: large supply of natural resources well established and modern infrastructure well developed financial and legal services fast growing black middle classEXPORT AND IMPORT The sophisticated and mature nature of the South African economy is reflected in the mix of economic sectors: primary (including agriculture, fishing and mining): 13%; secondary (manufacturing, construction and utilities): 20%; and tertiary (trade, transport and services): 67%.While South Africa produces many products of world-class quality for export, it is also a major importer of diverse products from most countries.
South Africas primary export commodities include: Gold Diamonds Platinum Other metals and minerals Machinery and equipment foods like fresh and frozen fish
South Africas primary import commodities include: machinery and equipment Chemicals Petroleum products Scientific instruments Food materials
