ENTREPRENEURSHIP NEWS

Campaign to help SMEs reach 1001 days

18 MAR 2016 | SAVE | EMAIL | PRINT |  PDF    

It is known that entrepreneurial businesses that make it to 1001 days (three years) are likely to succeed and thrive long term. To discover what makes a successful entrepreneur and to help many more South Africans reach this milestone, Santam has launched the next phase of its 1001 days initiative.

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The company conducted an independent research survey of 606 business owners in South Africa. The research findings will be released in a series of reports over the next six months and can be accessed – along with other useful expert insights – through the 1001 days website. 

This month’s findings

This month explores the question, “Can anyone be an entrepreneur?”

The research takes a closer look at the traits, motivators and industries of successful businesses and finds:

• The ability to cope under pressure, adaptability, self-confidence and people skills were viewed as essential traits to succeed. More than 90% of respondents cited these are vital traits to succeed.
• These were followed very closely by optimism, financial savvy, leadership and the ability to negotiate.
• Passion is the number one motivator for starting a business – ‘bags and bags and bags’ of passion motivated 47.6% of the survey group.
• The desire to ‘be your own boss’ was the second biggest motivator at 28.2% of those surveyed.
• Learning from your mistakes is vital – 57% of the business founders surveyed founded between two and six businesses, in addition to their successful operation.
• 60% of those surveyed are in service-orientated industries and 25.5% are engaged in selling products. 
• Females are somewhat more likely to run service-orientated businesses (62% of females surveyed are in service versus 58.1% of males) as well as sales-orientated businesses (28.5% of surveyed females versus 22.7% of males). On the other hand, males are more likely to be in licensing or using another company’s products (3.5% of males surveyed versus 0.6% of females) or services or e-commerce (7.6% of males surveyed versus 3.2% of females).

Nature vs nurture

To delve more deeply into what traits make for a successful entrepreneur, Santam also asked two successful entrepreneurs whether ‘nature or nurture’ brings entrepreneurial success.

Well-known entrepreneur and investor on the popular ‘Dragons Den’ show, Lebo Gunguluza, owns Gunguluza Enterprises and Media, a group that owns 12 print publications, has stakes in a number of hotels and a car-hire business. “Not everyone can be an entrepreneur. You have to be independent and willing to take risks. Although people do have the potential and can be groomed into entrepreneurship, someone who is highly risk averse is likely to struggle with the uncertainty that comes with being your own boss.”

Luvuyo Rani, a Khayelitsha entrepreneur whose company, Silulo Ulutho Technologies, started selling refurbished computers from a car boot and now operates 18 IT training centres around the Western Cape, also believes entrepreneurship is a particular talent, which not all people have. However, he believes all individuals can learn to be an entrepreneur. “However, one should remember that it is a lonely life and a journey one needs to prepare for psychologically. It also means compromises in terms of family time and finances, and not everyone is comfortable with this.”

Broad initiative to support SMEs

Santam’s Fareedah Benjamin says the ‘1001 days’ research forms part of a broader initiative, which includes a website with tools and real-life stories to inspire business owners. “We are hoping that by allowing entrepreneurs to learn through the experiences of others, more businesses will reach and pass this critical milestone. The initiative provides guidance for both the first three years and the years that follow.” 

Benjamin says entrepreneurship forms part of the DNA of the group. “Entrepreneurs represent one of the biggest future growth opportunities for a sustainable South African economy. As an insurer, we are committed to walking a path with our country’s entrepreneurs, ensuring that their financial stability on their journey is taken care of from an insurance perspective.

“Our aim is to help new businesses thrive, recognising that for any start-up business, the future is full of unknowns. Insurance then has broader implications for entrepreneurs, helping them get over unforeseen hurdles, but also freeing them from other constraints that would otherwise stop them in their tracks when they are most vulnerable." 

For more information, go to www.santam.co.za/1001-days.

ENTREPRENEURSHIP NEWS

TCC selects On Shelf and Beyond for incubator programme

4 MAY 2016 | SAVE | EMAIL | PRINT |  PDF    

On Shelf and Beyond, a marketing agency that offers strategy development, shopper marketing and brand activation services, is the first company to be selected by the Creative Counsel (TCC) to benefit from its incubator programme to support black businesses in the marketing and advertising industry.

Lindiwe Kangai

The 100% black female owned agency develops strategies and campaigns that trigger change in consumer behaviour. Lindiwe Kangai, who heads the company, said while the framework for transformation exists, the execution and support from bigger business, is sluggish.

“There are many good black owned start-ups with potential but they do not have backing from the industry and have limited access to infrastructure and resources. While I am excited and grateful for the opportunity, it comes with great responsibility. I applied for this incubation, as I want to learn from the best and believe this will help me scale up my business,” says Kangai.

TCC’s group co-CEO, Ran Neu-Ner said On Shelf and Beyond had the right mix of talent, drive and potential, which would benefit from the mentorship, infrastructure, administrative and accounting processes offered by TCC’s management team under the programme.

“We believe this is a first step to fostering true empowerment in the industry. If we can successfully incubate these black owned companies and help them expand then we will have achieved our goal,” said Neu-Ner. “We have no interest in taking any equity in the businesses but are passionate about transferring knowledge and skills.”

TCC launched the project at the beginning of the year and plans to take on five start-up businesses under its wing, which will be supported and mentored by the agency’s management team. 

Applications are still open for black start-ups in media, marketing, digital, mobile and activations. Neu-Ner said to date a hundred applications had come in and the management team was still going through them.

ENTREPRENEURSHIP NEWS

Entering business competitions improves perspective, knowledge

5 MAY 2016 | SAVE | EMAIL | PRINT |  PDF    

Entering a business competition allows entrepreneurs to gain a different perspective of their businesses, which can often prove to be more valuable than funding. Taking this time to reflect on the business can assist in identifying problems and aid in developing growth strategies.

Gugu Mjadu

Gugu Mjadu, spokesperson for the 2016 Entrepreneur of the Year competition, sponsored by Sanlam and Business/Partners, says, “It is easy to get caught up in the day-to-day running of a business and get distracted with the various tasks and challenges. Presenting a business to a judging panel not only forces entrepreneurs to reflect on their businesses, but also exposes entrepreneurs to experts who can analyse the businesses and point out aspects that they may have overlooked during the rush of running and managing the businesses.

“Access to capital to grow a business is considered one of the top challenges for many entrepreneurs, taking part in a business competition is one of the most cost-effective measures to grow awareness of the business without dipping into the business’ resources.” 

Five reasons why business competitions are so valuable.

1. The cash prize money: While not the most important aspect in the greater scheme for the business, a cash lump sum offers entrepreneurs the potential to pay off existing business finance debt or use the capital to expand the current business or fund new avenues.

2. Expanded network of likeminded people: A business competition brings together a group of people with the same objective – to build and grow a successful business. Apart from the opportunity to learn from fellow entrepreneurial entrants, entrepreneurs are able to engage with credible business experts and mentors involved in the competition and have the opportunity to draw on their business knowledge and insight. Some business competitions also offer an alumni network that entrepreneurs can tap into for new ideas and wisdom. 

3. Access to business experts and independent analysis of your business: As part of an entry process, the competition judging panel is required to analyse the entrant’s business to gauge worthiness of being named a winner in the competition. Through this process, entrepreneurs can gain an independent and fresh perspective of the business, as well as learn valuable lessons about their business plan and model. 

For example, the 2016 Entrepreneur of the Year has three stages to its judging process. Consisting of five independent judges, who represent different areas of the business community, the evaluation process includes a preliminary screening of the entry forms, followed by a review of financial information, and lastly an interview with each finalist and on-site visit to the business. This in-depth process allows entrepreneurs to gain greater insight and awareness of opportunities and challenges that exist. Entrepreneurs should embrace the opportunity to have their businesses scrutinised by a group of experts. 

4. Acknowledging a business’ true value and capabilities: Entrepreneurial competitions offer the necessary push for entrepreneurs to analyse their own business’ worth. Entrepreneurs are often so involved in the operations of the business, that they do not realise the true success of the business and what it may be worth. This downplayed perception of success can hinder a business’s growth path and prevent it from capitalising on potential opportunities. 

5. Increase the profile of your business: Building a positive reputation is often a key challenge that business owners encounter on their entrepreneurial journey as smaller businesses can’t compete with larger market players’ marketing spend and advertising campaigns. Not only are entrepreneurial competitions cost-effective to enter, but if entrants are successful as finalists or winners, the awareness thereafter can have a significant knock-on effect on their business’ brand and bottom line.

The free competition is open to entrepreneurs from all industries and for businesses of any size. Entries close 16 June 2016. For more information, go to www.eoy.co.za.

ENTREPRENEURSHIP NEWS

Women entrepreneurs can enter Fairlady Woman of the Future, Fairlady Rising Star

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Entries are now open for the Fairlady Woman of the Future and the Fairlady Rising Star for 2016. Fairlady, in partnership with Santam, is looking for South African female entrepreneurs who have started their own businesses - one who is established at least three years and one that has launched a new business.

“The tougher things get in South Africa, the more ingenuity and determination we show. It's in our nature,” says Fairlady editor Suzy Brokensha. “Last year, the quality of the entrants blew us away. These women are changing the economic landscape in this country. It is exciting to acknowledge and reward them. I am so looking forward to seeing this year's entrants.”

Woman of the Future Award

The Fairlady Woman of the Future 2016 award goes to an entrepreneur, 25 years or older, whose business has made it to 1001 days (basically, the first three years) and who is well on her way to creating an empire. The prize comprises R50,000 cash, a mentorship session with one of the judges, a R3,000 fashion voucher from Queenspark, a R12,500 online course from GetSmarter, a Sony Xperia Z5 Gold cellphone & Wi-Fi tablet, a wristwatch and a beauty hamper.

Donald Kau, head of corporate affairs at Santam, explains, “Entrepreneurs represent one of the biggest future growth opportunities for a sustainable South African economy and we are pleased to be partnering with Fairlady on this exciting project for a second year. We are committed to walking a path with our country's entrepreneurs because we understand that the first 1000 days in businesses are statistically the hardest, so if you have made it to day 1001, you've beaten the odds.”

Rising Star Award

The Fairlady Rising Star 2016 goes to an entrepreneur, between the ages of 16 and 25, whose business is older than six months but still within the first 1001 days of business.

“We want to award success but we also want to award potential, which is why we include the Rising Star award,” says Brokensha.

Judges

Judges include Public Protector Thuli Madonsela (also one of the key judges in 2015); media entrepreneur and international speaker Jo-Ann Strauss; TV presenter and radio host Leanne Manas; Santam executive head of brand Yegs Ramiah and Fairlady editor Suzy Brokensha.

Entries close on 17 June 2016. For more information, go to www.womenofthefuture.co.za.

Posted on 19 Apr 2016 10:46

SOCIAL MEDIA NEWS

Online entrepreneurial alliances

SAVE | EMAIL | PRINT |  PDF    BY: ANDREW REINHART, ISSUED BY: MORTIMER HARVEY

Boosting alliance creation by aligning entrepreneurs and social media

In today’s digital world, social media networks are a vital networking tool for any budding entrepreneur. 

It’s not just about having a Facebook page or a LinkedIn profile, but rather about creating and maintaining weak-tie alliances and networks that meet the specific needs of each entrepreneur.

So what is a weak-tie alliance? 

Very simply, it’s the interpersonal ‘bridge’ that exists between social networks and the individuals within them. The strength of the tie is dependent on factors such as time invested, emotional intensity and intimacy involved, and how well the parties complement one another. As an example, family members or friends usually share a strong tie, whereas acquaintances have a weak tie.

What kinds of alliances can be formed?

We can group alliances into four main groups, however, it’s likely that an entrepreneur will make use of a combination of these to meet his or her strategic objectives. 

Economic alliances

Economic alliances share cost and risk among all involved parties. By pooling resources they can reduce and diversify risk to everyone’s benefit, while taking advantage of the resultant economies of scale and co-specialisation. An example would be the Google and Luxottica alliance. Google has become synonymous with innovative technologies and the same can be said about Luxottica and fashion. This partnership was built on co-specialising in the production of an attractive pair of Google glasses that can be purchased purely for appearance sake, thereby providing Luxottica brands with the ability to showcase its techno-savviness and charge a premium price for its products.

Organisational alliances

This type of alliance is entered into specifically for one or both parties to gain knowledge and skills so as to address and improve operational areas of the business, such as, distribution, performance and management. For example, in the Apple and IBM collaboration, IBM was able to leverage off Apple’s hardware and software integration, and Apple was able to take advantage of IBM’s big data analytics, industry sales consultants and software developers to help Apple penetrate the global corporate enterprise market.

Strategic alliances

These alliances offer a number of advantages, including the ability to expand into new businesses, gain access to new technology, benefit from research and development, and reduce competitive risk. The Spotify and Uber partnership created exclusivity for Uber by allowing them to provide their customers with their own playlists every time they got into an Uber vehicle. It presented added incentives to Spotify users to upgrade to the premium level, and differentiated Spotify’s products from those of other mainstream streaming companies.

Political alliances

Political alliances allow for the bypassing of legal and regulatory barriers and the development of market or technical standards. The Volvo and Dongfeng Motor Group alliance made Volvo the world’s largest heavy-duty truck manufacturer, and it also assisted it to take advantage of Dongfeng’s access to the Chinese market. This allowed Volvo to circumvent political and legal barriers that could probably have delayed operations for months or even years.

So, why isn’t contact being made?

Forging an alliance is a key strategy to consider for any business or entrepreneur that aspires to be bigger and better. And social media has become an acceptable way to meet and communicate with people. Therefore, it would make sense for social media to be a major contributor to alliance-creation. But it doesn’t seem to be working out that way.

There are several possible factors that could be influencing this, the first of which is trust. Entrepreneurs tend to favour using social media to maintain weak ties, rather than to create them. In other words, they’ll use social media to keep in touch with someone they’ve already met elsewhere, rather than to meet people. The reason for this could be that people are understandably hesitant to trust someone they’ve met on social media, recognising that their ability to really ‘know’ them is limited.

Another influencing factor is education. People are generally just not adequately informed about social media best practices and its enormous potential (both positive and negative) to shape their fledgling business.

Grab those reigns

For profitable alliance-creation between entrepreneurs and social media platforms to increase and flourish, entrepreneurs, business owners and anyone involved in business activities need to be educated – about which social media platforms are best suited to their business, about how to make best use of those social media platforms, and about the tremendous impact that social media can have on their business and how to harness it. Educational institutions (schools, universities and colleges) could undertake this task for both students and adults, but the logical choice to provide this service would be the social media platforms themselves. They’re obviously familiar with the best practices for their platforms, they’re in the unique position of being able to access all of the users on their sites easily and, most importantly, their incentive would be the expansion of their user base, through acquisition of new online entrepreneurs as well as their customers.

Posted on 8 Apr 2016 10:43

TECH STARTUPS NEWS

African tech hubs looking for sustainable models - Google

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Tech hubs in Africa are increasingly looking for diversified and sustainable models, echoing similar efforts by hubs in the US and Europe, according to Google.

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Speaking to Disrupt Africa, David Grunwald, head of Europe, Middle East and Africa (EMEA) partnerships at Google for Entrepreneurs, said the co-working spaces and hubs Google works with in Africa show similarities, rather than differences, to spaces in the US and Europe, particularly in the way they are seeking to achieve sustainability and revenues.

More similarities than differences

Importantly, Grunwald said African hubs are early-on in their formation looking for sustainability models suited to local markets. “I think there are more similarities than differences in the way they operate and revenue generation to some extent,” Grunwald said.

“Many of the co-working spots we see in the US and Europe no longer have sponsorship and desk rental as the core of their revenues. Some have diversified into incubation or acceleration, taking a small proportion of equity in member startups. Others generate revenue through corporate innovation programmes – which in turn provide their member startups with sales and partnership opportunities, whilst some also run paid education programmes in coding, data science,” he said.

“Most of the hubs in sub-Saharan Africa already start thinking about diversified models even before launch. Some rent out their space for events, also taking opportunities to run paid workshops. I think Africa is slowly discovering what is right for the market and innovating as needed.”

Vibrant tech communities

Google currently supports 25 tech hub partners worldwide, five of these are based in Africa – in Kenya, Ghana, Nigeria, Uganda and South Africa. According to Grunwald, these African hubs play home to some of the “most innovative and vibrant tech communities anywhere on the planet”.

Grunwald says Google derives its commitment to supporting startups worldwide from its own beginnings as a small tech startup; and says the company hopes its partnerships with global tech hubs will serve to create a connected community of entrepreneurs capable of solving world challenges.

“As a company, we began life as a startup in a garage and remain a startup at heart. Entrepreneurship is firmly in our DNA. We’re committed to helping enable the next generation of entrepreneurs to be successful, wherever in the world they might be,” Grunwald said.

“Google for Entrepreneurs builds spaces for entrepreneurs and strengthens startup communities. Since 2011, we’ve launched our own campuses and formed partnerships that support entrepreneurs across 125 countries. Our mission is to connect global startup communities to resources and each other so that – together – we can work on the world’s biggest challenges.”

Posted on 24 Mar 2016 10:55

ENTREPRENEURSHIP NEWS

Finalists announced in the MTN Entrepreneurship Challenge powered by Jumia

SAVE | EMAIL | PRINT |  PDF    ISSUED BY: UCT GRADUATE SCHOOL OF BUSINESS

Following a rigorous selection process, involving more than 700 applicants from 26 countries across Africa, the top three finalists in the MTN Entrepreneurship Challenge powered by Jumia have been revealed.

The challenge, which aims to boost entrepreneurship and innovation, as well as build a stronger and more sustainable business environment on the continent, kicked off in February, and is a joint initiative between MTN, Jumia and the MTN Solution Space based at the University of Cape Town Graduate School of Business.

Through the entrepreneurship challenge, students were invited to develop a unique digital application or smart solution to address a problem faced in Africa. Applicants heeded the call and hundreds of original ideas covering the areas of E-Commerce Marketplaces, Education Technology, Smart Cities and Solutions, and Health Technology were received. 

Over the past few weeks, the ideas were narrowed down, with 11 Live Pitch events taking place from Cameroon to South Africa, to shortlist the top candidates who will eventually pitch their business ideas at the Entrepreneurship Festival in Cape Town in May 2016.

The three finalists are:

Pass.ng (Nigeria)
Pass.ng is a web, desktop and mobile-based CBT examination preparatory and testing platform, with a vision to help candidates excel in all the major Nigerian Examinations and tests.

MedRX (Ghana)
MedRx app is an interactive health platform for all users who have health needs. The app connects users to health personnel from various fields of practice including hospital, pharmacy, laboratory and academia.

Vicoba (Tanzania)
Village Community Banks (Vicoba) are an important instrument of development work, allowing people who do not have access to conventional bank accounts, to access informal investment groups. Vicoba app creates a collaborative platform that includes existing tools for financial and task management in a way that is adapted for the African market.

MTN Solution Space Manager, Sarah-Anne Arnold, congratulated the winners and commented: “Universities are resource-rich, highly networked and create opportunities for students to find like-minded co-founders and explore and develop new opportunities together, and are therefore the ideal environments to encourage entrepreneurs. This was shown by the amazing talent that emerged during the incredible week of Live Pitches which took place across campuses in 11 countries, in collaboration with partner universities and sponsors. Congratulations and best of luck to the finalists”.

The top two applications from each region were selected for the semi-finals and awarded the opportunity to undertake a short course from GetSmarter in order to build new capabilities in areas such as Search Engine Optimisation or digital marketing.

The finalists will face a panel of experienced business leaders at the Entrepreneurship Festival, where the winning team will be named. The panel includes Jeremy Hodara, co-CEO Africa Internet Group, Professor Walter Baets, Director of the University of Cape Town Graduate School of Business, and Herman Singh, MTN Group Chief Digital Officer. 

“We are incredibly impressed with the calibre of applicants and the level of innovation shown. We are looking forward to the finals and wish our contenders the best of luck. We are certain that whichever team emerges victorious, it is the continent that will be the biggest winner, as entrepreneurship and locally developed solutions are what will enable the growth and development of this continent,” says Singh. 

Bankole Cardoso, the Head of Communications at Africa Internet Group added, “From the application phase, we were very impressed with the high quality business models and it was not at all easy for the judges to select from so many promising businesses. Over the last week, we have held over 100 live pitches and given young entrepreneurs across the continent a platform to showcase their business ideas and even more importantly, to receive critical feedback from experienced professionals on our judging panels. The gaps in the African entrepreneurship ecosystem are in capital and mentorship so it was great to undergo an exercise like this that will no doubt force them to improve. I now look forward to working closely with these three finalist teams to prepare them for what’s to come in Cape Town. It is an incredible opportunity for all of them to propel themselves to the next level.

The winners will be announced at the Entrepreneurship Festival with the top team being awarded the opportunity for incubation at the premises of either MTN Solution Space at the University of Cape Town Graduate School of Business, or at one of nine Jumia offices across the continent. The winner will also win a cash prize of $25,000 towards their start-up and have access to a Facebook Start Programme to the value of $15 000, which includes tools and services needed to build mobile applications. 

MTN EC by Jumia in numbers

• Collaborated with more than 60 universities in 13 countries in Africa
• Received over 700 applications, including 345 videos, from 26 countries in 3 languages - English, French and Arabic
• More than 1,000 students applied to the competition
• Top categories are E-Commerce Marketplaces, Education Technology, Smart Cities and Health Technology
• Organised 11 Live Pitch events from Cameroon to South Africa, in partner universities or Jumia offices
• Met more than 250 young entrepreneurs during Live Pitch events all over Africa
• Top three countries in number of applications: Nigeria, Ghana and Cameroon

Posted on 22 Apr 2016 12:19