Where should government invest with small businesses?

Allon Raiz, CEO at Raiz Corp says it is better for government should be investing in ten-man bands rather than one-man bands. At the moment government is focusing on smaller businesses and start ups, but Raiz says there is more to gain from investing in bigger operations.
The one person band is not the right place, from a return point of view.
Allon Raiz, CEO at Raiz Corp
From a long term strategic point of view, it's important that some money goes there to maybe facilitate as they participate as entrepreneurs. But in terms of the real support, if funding is limited (which we know it is) then it is the wrong place to be focusing.
Allon Raiz, CEO at Raiz Corp
Ten person band, just as a number, be it 9 or 12, but around that number is the right place to be supporting small businesses.
Allon Raiz, CEO at Raiz Corp
Raiz says that there are many factors as to why the 10 person business is a better investment.
Once you reach the 10 person size - that generally takes time. And time is a wonderful thing to determine character, because if you are going to be supporting in small businesses, you want to know that the entrepreneur has the right character to scale that business.
Allon Raiz, CEO at Raiz Corp
Getting to a point where it is a is a 10 person operation means that there's tenacity and they have already overcome some challenges. So there is already some kind of proof that you are backing the right jockey.
Allon Raiz, CEO at Raiz Corp
For more detail; listen to the interview in the audio below.
Click here (then “like” the page) to follow Bruce on Facebook.
Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.
More from Business

Doom ad not racist says ARB. But why pair Doom and food in the first place?
After a complaint, Tiger Brands has added 'don't spray on food' to campaign showing man's meal interrupted by a flying insect.
Read More
Tough times for Spur, but new SA outlets in the pipeline
Spur's profits plummeted in the wake of lockdowns, but the loyalty of customers is 'quite amazing' says Group CEO Val Nichas.
Read More
Cashbuild doubles its profit as lockdowns boost desire for home improvement
Not all businesses suffered losses because of the pandemic. Bruce Whitfield interviews Cashbuild CEO Werner de Jager.
Read More
Molefe evasive, but maintains Ramaphosa integral to state capture at Eskom
Zondo Commission: Former Eskom CEO Brian Molefe repeated allegations about the capture of Eskom by Glencore and Ramaphosa.
Read More
No food to be served on domestic airlines, only water
Siyathemba Inflight Catering MD Sonette Joubert talks about the newly gazetted ruling saying she is still in shock.
Read More
SA e-commerce logistics specialist ParcelNinja give up 60% to Imperial
Bruce Whitfield chats to Justin Drennan, Co-Founder at Parcel Ninja about the astonishing growth path of the business.
Read More
Always wanted to own a piece of a wine farm? Here's how to make it a reality
Hemelzicht Vineyards, a new investment model that gives the public the opportunity to own a share in a luxury wine estate.
Read More
Sea Harvest buoyant with 17% annual profit hike despite choppy economic seas
Despite lockdowns and the global pandemic the fish supplier stayed afloat and was even able to do swimmingly during the past year.
Read More
Public sector trade unions demand CPI plus 4% as final wage demand submitted
The demands have been submitted to the general secretary of the Public Service Coordinating Bargaining Council (PSCBC).
Read More
'State-sponsored corruption should outrage South Africans' - Sars commissioner
'I'm infuriated!' Commissioner Edward Kieswetter says he feels the need to speak truth to power. Strong words on The Money Show.
Read More