An idea to save spaza shops

As food bought at a spaza shop causes yet another death, Bulelani Balabala is throwing the clout of his organisation, the Township Entrepreneurs Alliance (TEA), behind efforts to address the problem.

Balabala, 37, established TEA nine years ago. It has grown from modest beginnings to boast about 80,000 members involved in the township economy, which, according to recent studies, has an annual national turnover of about R100bn.

Among other things, the alliance publishes booklets that offer advice on food handling and hygiene — issues that have been at the centre of the recent spate of deaths. To prevent more deaths, he says, “there should be a more empowering and proactive approach from the government”.

Balabala’s organisation, of which he is CEO, also focuses on mentoring, grant funding, soft skills and technical support for township entrepreneurs.

“There has been such an insatiable hunger to solve challenges and find solutions, share data and cement the township footprint that the organisation is constantly growing,” he says.

Balabala grew up in Thembisa, a sprawling suburb on Gauteng’s east rand. He left school in grade 9, did not finish trade school, and began selling sweets and magwenya (vetkoek).

In 2007, however, an idea sparked his business instincts. He noticed a trend among young people for having their names printed on T-shirts, so he took it further by selling personalised matric jackets.

The idea was a hit, and Balabala set up his business in the garage of his mother’s house, doing printing and offering an internet café service.

He says it “took a whole village” to get his business up and running. “Neighbours gave carpets and table stands, an aunt bought me inks and I was given a computer and printer,” he says. “To this day I am grateful for that.”

On the first day he made R5 and R2 on the second. “For the first seven years, I made about R380 a month. I still have those ledgers,” he says.

With returns like that he was on the verge of giving up, but then a friend took him under his wing and “taught me everything there is to know about the printing world”.

The printing operation grew into branding and he started getting business from high-end customers in Rosebank and Hyde Park. “Only 5% of our business came from the township and churches,” says Balabala.

With the experience of someone who has pulled himself up by his own bootstraps, he uses his story to encourage others. “There is a clear lack of information and there are huge disparities between township and conventional or corporate businesses.”

Balabala says corporates and other mainstream businesses don’t understand the township economy.

“They don’t know where sales in the township come from. They don’t know that it’s an economic driver.” He says the true value of the township economy is underestimated. “The data is collected in terms of sales. But what about cash sales?” he asks.

His advice to aspiring township entrepreneurs?

“Never start with a small mindset. Your limitations and resources should never reflect your mindset. Also, the best way to raise capital is through your customers — so sell, sell and sell again. Your customers are your sample pool when you start out. Take their feedback and refine how you do business.”