Young entrepreneurs across South Africa are discovering that registering a business is not simply a step toward funding or market access – but it brings with it challenges including legal, financial, and administrative responsibilities that many first-time business owners are unprepared for.
For 27-year-old Thabang Shinners, founder of Bloemfontein-based ThaPlanka, entrepreneurship began with a simple moment during lockdown.
At the time, he was a self-taught carpenter learning through online videos. With limited tools and no formal training, he focused on solving a practical problem. His motto, “no risk, no story,” reflects the mindset that drove him to start the business.
But registering ThaPlanka brought challenges he had not anticipated.
“The biggest surprise was the weight of administrative work,” he says. “Running a business means managing compliance, finances, and paperwork just as much as production.”
Compliance demands weigh heavily on start-ups
According to SEDA’s 2024/2025 report, many small businesses fail to comply with tax obligations or maintain proper records, which contributes to the high rate of start-up failure in the country. Despite these resources, new business owners often struggle to keep up with regulations.
Statistics show that SMEs contribute about 34% of South Africa’s GDP and employ over 60% of the workforce, yet most fail within the first five years of operation.
Shinners admits he learned compliance the hard way, through research, workshops, and advice from mentors. “No one hands you a manual when you start a business,” he explains. “You have to actively seek information and learn through experience.” In the north of Pretoria, Thabiso Nong, who runs a small perfume business, says her experience mirrors Shinners’ struggles.
“You carry everything yourself, stock, finances, customers, and decisions,” she says. “Being your own boss is exciting, but compliance and paperwork can be overwhelming, especially when cash flow is tight.”
Both entrepreneurs caution against registering a business purely to access funding or tenders.
“A business must exist because you are already generating consistent income from your own resources,” Shinners says. “Funding should support growth, not be the reason you exist.”
The daily reality of entrepreneurship
Managing cash flow, supply chains, pricing, and production all at once is a constant challenge. Shinners sources materials locally from suppliers such as Builders Warehouse, HDS, and Plaza-board, but fluctuations in cost and availability force him to adjust designs and timelines regularly.
“As a founder, you are responsible for everything, from finances to marketing and team management,” he says. “There are tough decisions and financial pressure, but that is what builds resilience.”
Shinners believes becoming an entrepreneur is not about registering a business. It is about readiness. “You need clarity of purpose, resilience, and a willingness to learn,” he says. “You may never feel fully ready, but you must understand the responsibility you are taking on.”
basetsana@vutivibusiness.co.za
