The rise of the kasi business boom is a welcome solution to the plight of many South Africans plagued by economic challenges like unemployment. Not only is it indicative of the resilient spirit of South Africans but it also proves just how innovative we can be with limited resources at our disposal.
The Township Economy
The informal economy in townships is a significant source of employment and income for residents. Informal businesses also provide goods and services at lower prices than formal businesses, which can make them more affordable for low-income households.
However, running a business in a township can be challenging due to a lack of infrastructure and services such as reliable electricity and water supply, as well as limited access to credit and business training.
Did you know that approximately 17% of South Africa’s total employment is through the township economy?
Despite the challenges, many entrepreneurs based eKasi are seeing massive success by taking matters into their own hands and focusing on serving the needs of their community.
Let’s look at the nuances of a township business and how you can successfully start, run and grow one of your own!
Here’s a summary of what we will cover:
Why South Africa Needs More Kasi Businesses
Businesses eKasi fill a gap between traditional entrepreneurship and the high unemployment rate in South Africa. Traditional entrepreneurship is assumed to be unreachable for those without the means and resources readily available, and finding a job has never been more difficult.
Starting a kasi-based business that:
- Stimulates economic growth
- Creates job opportunities
- Development in townships
Still need convincing about the power of the kasi market in South Africa? Have a look at this blog to learn more about why we need more kasi businesses.
Finding a Kasi Business Idea
Finding a kasi business idea is not as difficult as it sounds. As long as you are aware of and understand the needs of your neighbourhood, you’ll be in a good position to figure out how to serve those needs.
Start with market research. This will help you identify potential business opportunities and gaps in the market. You can also talk to local residents to get a sense of their needs and what services or products are missing in the area.
If you need some inspiration, have a look at these 27 Innovative Kasi Business Ideas to get you started!
Discovering Business Funding Solutions
Businesses in the kasi don’t usually require a lot of funding or resources to get started but if you are able to get access to help, all the better for your business (and its bottom line).
With the rise in township-based businesses, there’s also been an influx of funding solutions designed to serve the needs of township entrepreneurs.
For example, iK Cash Advance is a fuss-free funding solution that gets business owners funding without the daunting paperwork and long waiting periods.
Thinking of getting funding but don’t know where to start looking? Have a look at this blog for 15 Business Funding Solutions available in South Africa.
How to Leverage Technology to Build a Kasi Business
In this day and age, technology is your best friend as an entrepreneur. No matter what type of business you run, there will always be a need for some sort of technological tool or resource to be leveraged to keep your business thriving.
Here are some ideas to get you started:
- Creating a website or social media presence to market your business and reach potential customers.
- Using e-commerce platforms to sell products or services online.
- Using mobile payment systems to make it easy for customers to pay for your products or services.
Remember, technology alone is not a guarantee for success, but it definitely is a powerful tool that can help you grow and scale your business.
Read our blog on Using Technology to Build a Kasi Business to learn more.
Bringing Delivery Services to the Kasi Market
With convenience and speedy turnaround times being in more demand than ever before, there’s never been a better time to bring delivery services to informal markets. Well-known delivery services like UberEats or MrD are often limited to CBDs and urbanised locations, leaving a massive gap in kasi areas.
Delivery services can bring convenience and accessibility to customers in the kasi market by allowing them to receive goods and services without having to leave their homes. This can be especially beneficial for those who may have limited mobility or transportation options.
Additionally, delivery services can also help to increase the reach and customer base of businesses operating in the kasi market, potentially leading to increased revenue.
Think you’ve got what it takes to launch a delivery service in your neighbourhood? Read this blog to learn more about how you can go about it!
Kickstart Your Entrepreneurship Journey with a Kasi Business
Building a kasi business makes entrepreneurship a little less daunting and a lot more doable for anyone with a relentless spirit for business and a passion for serving their community.