Spaza shop business plan

spaza shop business plan

Exploring the management abilities of spaza shop

Articles, exploring the management abilities of spaza shop owners in the nelson Mandela metropolitan Municipality. S perks, department of Business Management, nelson Mandela metropolitan University. Abstract, south African entrepreneurs have a poor skills record, which often leads to business failure. To effectively manage a spaza shop requires applying management functions and some management skills. The implementation of simple systems can assist spaza shop owners to manage their businesses more successfully and even grow. A quantitative study was done, by interviewing sixty spaza shop owners in the township. The empirical results identified the gaps in the management abilities of spaza shop owners in terms of the eight management functions and show that the purchasing, financial and information management function are the most neglected.

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Several government strategy documents have identified small business activity writing as being central to growth, employment and black economic empowerment. Therefore, based on this argument and analysis, it is advisable that measures be implemented to protect small retailers from the threats represented by shopping mall developments. Written by: Shona kohler (1 notes: (1) Contact Shona kohler through Consultancy Africa Intelligences eyes on Africa Unit (2) Mathenjwa a, the impact of Jabulani shopping mall on small township businesses and their response, research report submitted to the gordon Institute of Business Science,. (3) Viruly consulting, retail supply analysis of Soweto, palmer development biography Group, (4) Ligthelm a, small business sustainability and entrepreneurship in a changed trade environment: The soweto case, bureau for Market Research. (5) Mabotja s, retail footprint: developers are making strides in the townships, Trade Invest south Africa, (6) Ibid. (7) Ligthelm a, the impact of shopping mall development in township areas on small township retailers, bureau for Market Research. (10) First National Bank. (11) Letsie t, a battle plan is being drawn up to turn Soweto and other gauteng townships into bustling economic powerhouses, The times, (12) Ibid. (13) Business day, soweto malls strangle smaller shops, 3 February 2010. (14) Ligthelm a, small business sustainability and entrepreneurship in a changed trade environment: The soweto case, bureau for Market Research.

For example, certain street vendors have been able to intercept the large concentration of shoppers generated by shopping centres through carefully positioning their operations. Small operators could also potentially benefit from the pull effect that shopping centres may have in attracting shoppers from outside dates the township area. It is possible that the effect of shopping centres on small township retailers has not been as significant as originally feared. Nevertheless, small businesses are struggling, and the small business stock in township areas is believed to be shrinking, despite certain new businesses having been established outside the shopping malls. André ligthelm, of the bureau for Market Research at the University of south Africa, estimates that Sowetos small business stock fell.7 in the period from 2007 to 2009.(12) he also said that almost 40 of small businesses in the township closed within. The future, the situation in which the establishment of shopping complexes is affecting the ability of small and medium-sized businesses to operate effectively in the retail environment is not one that is specific to south Africas township areas, but can be seen in wide swaths. Indeed, suburban south Africa abounds with shopping malls, and it is thought that suburban shopping centres are making it similarly difficult for small independent retailers to remain profitable. While shopping centres may offer price and convenience advantages to consumers, they are stifling much-needed entrepreneurship and, as a result, south Africas growth and employment ambitions.

spaza shop business plan

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National chain stores, for example, notably supermarket groups, typically pay low rents for the space they occupy in shopping centres. These rates are offered to such stores in an effort by the shopping malls to secure well-known anchor tenants. In order to make up for the low rents paid by large operators, the centres then charge inflated rentals to smaller tenants. Often the rental agreements of the smaller tenants also contain escalation clauses that hoist major rent increases, sometimes as high as 100, on them, when lease agreements are renewed. These practices impact heavily on the commercial viability of new small businesses attempting to operate within shopping centres.(10). Further, while shopping centres may lead to a higher proportion of household expenditure taking place within the township area, the benefits of such expenditure are unlikely to directly accrue to the local community, as the profits of the centres are fed back to the shareholders. Very few shops within the new township shopping centres are owned by township residents. For example, it is estimated that only about 10 of the tenants in Sowetos Maponya mall are locals.(11). Of course, the impact of shopping centre developments on small businesses has not been uniform, as there are those small operators that have managed to benefit from the presence of the new retail complexes in township areas.

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spaza shop business plan

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The benefits of township shopping prison malls. Retail developments can be seen as a catalyst and stimulator for the regeneration of physically, socially and economically neglected areas, contributing to new social networks and safer living environments.(6) In addition, township shopping centres could contribute to a larger proportion of the consumer expenditure. For example, a 2004 study commissioned by the city of Johannesburg showed that Soweto households only spent about 25 of their retail expenditure at outlets situated within the township.(7). Further, the presence of retail grocery chains, offering fresh produce and convenience food items, along with clothing, banking and fast-food outlets, among others, have meant higher levels of competition and, thus, in many cases, lower prices for township shoppers. In addition, the availability of greater retail choice could have health gains for township residents.

Further, these shoppers are able to choose from a plethora of options, where previously their choices were more restricted. The detractions of shopping centres on small business activities. However, while shopping centres may offer a variety of choice and lower prices to consumers, the competition that generates such choice and price flexibility could be the very thing that forces smaller businesses out of operation, displacing expenditure away from small operators to national chains. Businesses facing particular challenges in this new retail environment are those operating in informal environments, those offering daily household necessities, and those that are situated close to the newly developed shopping malls.(8) Studies indicate that 75 of businesses located less than 1 km from. Businesses situated further from the centre are less affected.(9). In addition, smaller businesses find themselves disadvantaged owing to rental practices that favour large operators.

In the townships adjacent to cape town, residents are able to shop at the nyanga junction, westgate, towncentre, vantage and Khayelitsha malls, and in Durban, township residents can visit the Umlazi and Dube malls. Even in the townships of smaller south African cities, such as Port Elizabeth and Polokwane, shopping centre developments have sprung up, changing the face of commercial transactions for many of those residing in these areas. Advertisement, frequently, shopping centre developments in township areas are lauded for the benefits of choice and urban regeneration that they offer to the residents of such areas. What is less prominently highlighted, however, is the potential for shopping centre developments to hamper small business. In a country where small business is seen as central to growth, employment and black economic empowerment ambitions, shopping centre developments represent a threat. Advertisement, the changing dynamics of township shopping culture.


Up until about the late 1990s, retail activities in township areas were dominated by informal businesses serving a relatively low-income consumer market.(2) Many of these businesses were spaza shops unlicensed tuck shops and mini-retailers. The businesses offered an array of products and services ranging from fresh fruit to hairstyling from informal premises that included containers, makeshift stalls, private homes and street corners.(3). Since the end of the 1990s, capitalising on rising household income and swelling numbers of township dwellers, as well as indications that most middle-income township residents intend to stay for the foreseeable future, property developers and large retail outlets moved in to exploit the substantial. Consequently, the dynamics of township business have changed to include shopping malls and other formal outlets.(4). Retailers represented in township shopping malls include major operators such as Pick n pay, edgars, woolworths, Shoprite, pep Stores and Mr Price. Further, branded franchise groups such as News Cafe, debonairs, Steers, nandos and Primi piatti are keen to make their mark on township shopping centres.(5) These operators are complemented by the expansion of banking services: south Africas top four banking groups are to be found.

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How to deliver care for people living with hiv/aids and their families. How to care for children affected by hiv/aids. How to coordinate work around hiv/aids. How to develop a municipal aids strategy. Important things to understand about hiv/aids. In recent years, the south African press has told countless stories of the mushrooming of shopping centres in the countrys township areas. In Soweto, for example, arguably south Africas best-known township, at least six shopping centres have opened their doors since 2005, and the township now hosts several well-known retail complexes including the maponya, dobsonville, protea gardens, jabulani and Bara malls.

spaza shop business plan

People from health, welfare and municipal services should be drawn in to work together with community, religious, business and service organisations. People living with hiv/aids should be part of any coordinating structure. Aids councils should be broken into working groups or task teams that concentrate on one area henry of work for example: prevention, care for people with hiv/aids and care for children. A cross-referral system should be set up between services. The aids council should monitor projects and make sure there is a coherent plan that is implemented. Aids councils should also develop links to government structures, resources and funds at district, provincial or national level. For more information on any of the above topics click on: How to run prevention and education campaigns.

they respect that hiv/aids projects will succeed. It is also vital that everyone who works on hiv/aids cooperate to ensure that those in need are properly identified and catered for. This is especially important for health, welfare and other service organisations or ngos. Referral systems have to be set up so that families in need can access support. For example, if a child drops out of school and teachers find out that parents are ill, the child should be referred to projects for support and the parents should also be referred to the support and treatment programs that exist. It is essential that all organisations that provide services or can recruit and mobilise volunteers, work together. Here are some of the things that should be done: coordinating mechanisms like local aids councils should be used to make sure that there is a coherent and coordinated response from everyone involved.

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Spaza shop business plan
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  3. Up until about the late 1990s, retail activities in township areas were dominated by informal businesses serving a relatively low-income consumer market.(2) Many of these businesses were spaza shops unlicensed tuck shops and mini-retailers. The businesses offered an array.

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  6. South African entrepreneurs have a poor skills record, which often leads to business failure. To effectively manage a spaza shop requires applying management functions and some management skills. The implementation of simple systems can assist spaza shop owners to manage their businesses more. Business manufacturing Chocolates under your own brand name in any language for resale to cafes,Supermarkets,Garage Shops, Spaza, shops,Home Shops,Farm Shops,School Tuck Shops,Hotels, guest houses and Businesses.12 Different types of Lollipops, peanut in Shell type Chocolates,4 sizes Slabs, Mini bars,12 different types of Clusters. Find 6m containers in Eastern Cape!

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