Many people have made New Year’s resolutions – to lose weight, to be healthier, to spend more time with friends and family.
But how many South Africans have set goals for themselves to let 2022 be the year that marks the start of their journey towards financial independence?
Perhaps this seems like an unrealistic goal for many in an economy that has been battered by Covid-19.
Unemployment figures paint a grim picture.
Statistics South Africa states that the country’s official unemployment rate was 34,9% in the third quarter of 2021, with the number of employed persons decreasing by 660 000 in that quarter, to 14.3 million.
However, this does not mean that South Africans should resign themselves to a life of financial hardship.
Practical and proven avenues do exist for people to attain financial independence by unlocking additional income streams, says Direct Selling Association (DSA) of South Africa Chairperson Rajesh Parshotam.
“There are many different definitions of financial independence, but I look at it as having enough passive income to cover your living expenses,” says Parshotam.
“I urge people to make it a goal for this year to flex their entrepreneurial muscles and start a venture that will bolster their earnings, or that can even be their primary source of income.”
Passive income can be earned through investing sufficiently in stocks, bonds, and shares, or by establishing a business.
Parshotam notes that despite the devastation wrought by the Covid-19 pandemic, the world has become more connected than ever.
“Direct selling is strongly emerging as an option for people to unlock multiple income streams,” he says.
“What’s even better is that the direct selling model can be coupled with a permanent job and allows people to be their own boss.”
Direct selling is a professional distribution channel that offers entrepreneurial and income-generating opportunities.
Income is earned from direct sellers’ sales to their customers, as well as from sales made by members of direct sellers’ teams.
Parshotam encourages people to be practical in their approach by starting a small venture and slowly growing it until it can start supplementing their income.
This would enable people to secure their financial future, instead of just being dependent on a salary that barely covers their expenses in many cases.
Direct selling is gaining a considerable amount of traction in South Africa, with the DSA recently reporting that direct sellers in the country currently number 870 382, collectively earning R2.1 billion a year, while sales generated by DSA member companies totalled R7.7 billion.
A large proportion of these direct sellers run their direct selling ventures on a part-time basis while maintaining other full-time employment.
“At a time when many people are struggling financially, direct selling empowers entrepreneurs by giving them access to a low-cost business model that offers independence and flexibility, as well as an opportunity to grow at their own pace,” says Parshotam.
“As many households’ incomes continue to come under pressure due to loss of employment and reduced income, we have seen a significant increase in interest in direct selling.”
He adds that social media and technology have become an integral tool for millennials to grow their direct selling businesses, as it exposes their products to new markets in the digital space.
The advancement of technology and social media has enabled direct sellers to have digital conversations with their customers.
They do so without the need to physically invade their customers’ personal spaces, while effortlessly growing wide professional networks.
“We cannot deny the urgency that is needed to boost the entrepreneurial activities of young South Africans, especially in the face of dwindling employment opportunities in the formal sector and a troubled economy,” says Parshotam.
“As a country, we need to promote entrepreneurship as a viable career path, rather than as a last resort.
“This will not only bolster young people’s intentions to become entrepreneurs but also encourage greater participation in entrepreneurial activities.”
Direct selling, says Parshotam, as a model has been driving success in developing ordinary people, irrespective of their backgrounds, qualifications, and/or race into micro-enterprises.
As a collective, it is also making a meaningful contribution to the country’s economy.
“Why not then make it your goal for 2022 to establish a direct selling business and take your first steps toward financial independence?”
