Not only improvement is IT but also the dramatic improvement in IT infrastructure in first world countries is making it possible for entrepreneurs to start up with less capital then ever before. Surely the improvement and afford-ability of the internet and faster connections speeds should now be an priority for the SA government if they really want to be seen to support for small business and entrepreneurship in South Africa.

Ben
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Robert Jaques from vnunet.com reports

Improvements in IT make it possible for UK individuals to start their own businesses with less capital than ever before, research published today has claimed.

A Microsoft-sponsored nationwide survey carried out by YouGov revealed that nearly a third of entrepreneurs have less than £10,000 to get their companies off the ground, while another eight per cent have less than £20,000.

Almost one in five respondents claimed that they started their businesses with no capital funding at all.

Over half of respondents who needed capital used personal savings to start their own businesses, while 18 per cent of this group turned to their bank manager for assistance.

Some 14 per cent said they depended on family and friends for loans, while five per cent re-mortgaged their homes. Only six per cent took up grant funding.

Technology, communications and physical infrastructure (i.e. office space including rent and furniture) were identified as the top three major purchases for the majority of firms.

The average spend on physical infrastructure was £17,624 while the average spend on communications (telephone costs including mobile and landline) was over £700.

Almost 70 per cent of respondents who invested in hardware and software have spent up to £2,500.

Overall technology was identified as the purchase which demonstrates greatest return on investment.

Almost two thirds of small business managers who said that technology has had a positive effect on the company believe that it increases productivity, while 47 per cent of this group believe that technology has had a direct impact on profitability.

Clare Barclay, head of small business at Microsoft, said: "Small companies are the heart of this economy so it is great to see that it is becoming po ssible to start your own business with limited capital.

"However, lack of funds is also one of the biggest reasons why small firms fail, so careful financial planning is vital to success."

http://www.vnunet.com/vnunet/news/21586 ... fuel-small
Robert Jaques, vnunet.com 20 Jun 2006