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Take the plunge in 2017 with a new business

Make the new year a fresh start - buy a business in one of South Africa’s top sectors

New Year’s resolutions are always difficult to keep - but if yours is to own your own business, don't delay - there are plenty of opportunities to be had.

Small and medium businesses (SMEs) have long been considered drivers of economic growth, not only in South Africa but throughout the world.

According to the banking association of south Africa ‘small and medium-sized enterprises make up 91% of formalised businesses, provide employment to about 60% of the labor force and their total economic output accounts for approximately  34% of GDP.

BusinessesForSale.com takes a look at the top sectors in South Africa for investment potential

Restaurant

As demand for South African cuisine becomes a worldwide phenomenon, the restaurant industry at home in South Africa shouldn’t be neglected.

Whether you’re looking for a braii restaurant, a high-class gastro or even a combined deli bistro and bakery, you’ll find it here.

Make no mistake - running a restaurant is incredibly demanding and time-consuming. Yet if you have the drive and energy, it could prove to be a very worthwhile venture.

Café

The South African café industry, like almost everywhere else in the world, is thriving. We are a globe obsessed with caffeine - from the plain old cappuccino to your grande, iced, sugar-free vanilla latte with soy milk.

It’s been noted that the rise of the café and coffee shop industry has not only been due to the ever growing menu options – it has become largely about the experience.

Wandering down to the local café is often initiated by wanting a break from the office or to meet up with friends. It also happens to be a much cheaper alternative than going down to the pub.

Finding the right café premises can be tricky – Cape Town, in general, is a safe bet, with the appointed title of the ‘trendy capital’ you’ll find a wealth of businesspeople with an affinity for Styrofoam cups.

However, almost everywhere wants a café of its own; a social hub that’s simply a part of the community. Finding the right product and building for the location is what you have to think about: how would your café enhance the area it’s in?  

Hotel

The tourism industry is currently firmly on top. South African hotel occupancy rates are expected to increase by an estimated 58.3% by 2018 according to a report released by PricewaterhouseCooper (PWC). The total room revenue is expected to be at R28.7 billion by the same year.

Yet what sort of property should you invest in?

If you’re fortunate enough to have a relatively large amount of money to spend, you could buy a hotel, inn or resort straight-up. Alternatively, in a more suburban area, you could invest in a guest house or lodge.

At the other end of the spectrum, you could buy a B&B and live in one of the rooms yourself. 

You could also invest in self-catering accommodation in the form of holiday homes, apartments or luxury villas. 

Professional Services

(Consultancy, Estate Agents, Business brokers)

If you’ve gained the professional qualifications, why not buy a related business to make the most of them? This could include fields like accounting & finance, engineering, legal, consulting, and more.

According to a study conducted by the World Bank, ‘South Africa has a large and well-developed market for professional services in general’ in comparison to most developing countries. Furthermore, it was found that professionals’ contribution to GDP was incredibly significant factor in South Africa’s economy.

The recent launch of the SA Professional Services Awards (SAPSA) shows how South Africa has come to value the industry.

Farm

Fed by its abundance of agricultural produce and traditional industries, South Africa is predominantly an agrarian country.

And the agricultural industry is a large part of South African heritage and culture – with many wanting entrepreneurs to jump on the bandwagon.

According to SouthAfrica.info, sectors within the farming industry are primarily field crops & horticulture and livestock farming.

Within the horticultural sector, sub-sectors include: grain and oilseeds, fruit (mainly citrus and subtropical crops such as bananas and guavas), sugar, wine (SA is the 9th largest producer in the world), tea (mainly Honeybush and Rooibos), tobacco, cotton and flowers.

Livestock farming sub-sectors include: beef (only 15% of SA’s meat is imported), dairy, game (South Africa has a large variety of game species), poultry, pig (main breeds are the Duroc, the South African Landrace, the Pietrain and the Large White), sheep, goat and aquaculture (main species include trout, tilapia, oysters, catfish, waterblommetjies and mussels).

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Rose Hill

About the author

Rose Hill is an in-house journalist and writes for all titles in the Dynamis stable including BusinessesForSale.com, FranchiseSales.com and PropertySales.com as well as other industry publications.

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