When the rural community of QwaQwa in the Free State faced a serious challenge of electricity supply that disrupted its residents' daily lives, Danile Zoko identified a gap in the market.
In 2013, Zoko saw a business opportunity to provide a service for the refilling of gas cylinders and established Zolu Trading CC, which is trading as Lulu Gas. He later added paraffin and diesel.
“When I started my business, I approached banks for a loan, but I was unsuccessful. At the time, I was still employed at a university as a sports manager. I withdrew money from my pension to invest in the business,” he said.
In the process of growing his business, Zoko approached the Small Enterprise Development Agency (Seda) in 2014 for assistance and the agency conducted a business assessment.
The business was assisted with point of sales, which helped the business cut down on stock shrinkage, a new signage was installed on site and employees attended customer care training that included training on gas filling to ensure compliance and safety of the site.
The business was also referred to the Small Enterprise Finance Agency (Sefa) for funding.
“Sefa gave us a loan to expand the energy business by integrating it with a fitment tyre centre as well as provided assistance with the infrastructure for the centre.”
While the business has faced challenges with the accessibility of resources, reskilling of employees and access to the market, it currently employs 26 people.
“We have built a recognisable brand locally and we were also recognised by Seda when the portfolio committee for small business came to our area. Seda also nominated us for the National Presidential Awards. Being nominated as a small business in a rural area means that our work is recognised,” he added.
The National Presidential Micro, Small, and Medium Enterprises (MSME) Awards are aimed at coordinating all key role players in the ecosystem in support of small enterprise development.
They recognise and celebrate the best performing MSMEs, Cooperatives, Ecosystem Enablers and Corporates that are supporting MSME development.
“I have big plans for the future. One of them is to create a factory for manufacturing cylinders. I recently purchased cylinders from China for about R1 million, inclusive of the costs of customs duties and tax, but they have not generated profit for the business.
“Manufacturing the cylinders locally could be a big niche for us. If we have a factory with machinery and partner with the Chinese to reskill our people, we could create jobs. That is one of my dreams,” he concluded.
For more information about Lulu Gas call 058 713 0093 or follow on Facebook https://web.facebook.com/p/LULU-GAS-100032788077319/?_rdc=1&_rdr.
Information about Sefa can be found on www.sefa.org.za
Seda can be reached on www.seda.org.za
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