Thousands of small businesses use Standard Bank’s back-to-basics start-up tool

Just five months in, BizLaunch sees strong take up by SMEs wanting to start right

Over 20 000 small businesses have opened BizLaunch accounts in the since Standard Bank introduced the initiative in April, aimed at helping small businesses get started properly and reduce start-up failure rates in South Africa.

Clive Pintusewitz, head of Small Enterprise and Enterprise Development at Standard Bank, says it’s gratifying to see that entrepreneurs are taking advantage of and benefitting from the offering. “Too often, in spite of everyone agreeing that small business is essential to the health of the economy, people with good ideas are confronted with hurdles and bureaucracy,” says Mr Pintusewitz, “The take up of Bizlaunch shows that small business are keen for banking solutions that directly address their needs.” 

“Priorities for a new business are simple: register the business, keep track of cash in and cash out, pay suppliers, deposit funds into a business bank account, and get some basic advice when you ask for it. BizLaunch is designed to enable those things.”

Businesses in Gauteng accounted for the majority of accounts opened, followed by the Western Cape and KwaZulu-Natal. 

Mr Pintusewitz notes that this take-up pattern is consistent with the levels of economic activity in the respective provinces.

“It’s interesting, however, that the rate of take-up in the other provinces, although lower than that of South Africa’s big commercial centres, is similar. This reinforces our belief that whether you’re operating in the far reaches of, say, Limpopo or right in the heart of busy Johannesburg, the support you need to make your business sustainable is the same.”

Recent research has indicated that a high percentage of start-up businesses fail within the first three years. Another survey suggested that 440 000 small businesses had failed in the past five years. Mr Pintusewitz says these are among the key reasons for introducing BizLaunch and focusing on helping businesses avoid false starts.

BizLaunch is aimed particularly at any new business, including sole proprietors, with no existing business account, any business wanting to switch with an account younger than 12 months and any business currently trading from a personal account. 

“Twelve months is the typical period a business needs to get up and running and become aware of what banking transactions and other services the business will use,” Mr Pintusewitz says. “The entrepreneur is then correctly positioned to choose an account package that will appropriately match the needs of the business as it grows.” 

Over and above the core transactional banking package, BizLaunch also offers start-ups a merchant device (point of sale device) at a reduced rate, inclusive of telecommunication fees and insurance.

“We are pleased to see the take of by new account holders of this affordable merchant device offering,” Mr Pintusewitz says. “Point of sale devices are an ideal way of controlling and improving revenue streams and cash flow.”

He notes that new account holders are also taking advantage of the free online accounting software, provided by market-leaders Pastel, that is bundled into the offering.  

“These are all examples of the ways in which BizLaunch provides practical operational assistance with the day-to-day running of a start-up business, moving away from the traditional banking approach,” he says.

Note:
 
The total BizLaunch offering includes:
• A R90-per-month (R3 a day) business account which includes unlimited electronic transactions (electronic account payments, ATM deposits and inter-account transfers), unlimited debit orders, unlimited cheque card swipes, Internet banking, My Updates (SMS notifications); and eight ATM cash withdrawals. This excludes branch transactions;
• My Business Online, an accounting package from Pastel, the market leader in accounting software;
• Businesses also have access to a Business Banker to discuss and meet their needs; and
• Packaged content business support and tips, such as how to start and grow a business.
Over and above the core package BizLaunch offers:
• A merchant device (point of sale device) for R325 a month that includes telecommunication fees and insurance, at a commission rate of 3.25% irrespective of card type;
• Basic business insurance cover at R150 per month;
• Online business registration services and annual returns to help you get your business started; and
• A 20% discounted training voucher on the basics of how to start a business, such as finance for non-financial managers (normal course fee approximately R1 200).

Hilary Macaulay
Mgna Carta Public Relations