ENTREPRENEURSHIP NEWS

Survey provides glimpse into the world of young entrepreneurs in Africa

29 MAR 2016 | SAVE | EMAIL | PRINT |  PDF    

The Entrepreneurship Survey is based on an emailed questionnaire answered by a selection of young entrepreneurs within the 15 to 25 age group, and located across the African continent. The survey focused on five areas of operating a business, namely growth, sales and marketing, human resources, funding and support.

It is hoped that stakeholders, such as policy makers, support organisations, and entrepreneurs will benefit from these insights. Survey respondents overwhelmingly stated that access to finance is their main barrier to growth, with 48% highlighting it as the biggest obstacle to expanding their companies. Only 27% of young entrepreneurs received any form of outside investment, with family members (59%) and grants (52%) being the major sources of funding accessible. Despite challenges faced, 84 of entrepreneurs reported employing others, underscoring the employment creation potential of youth businesses. However, a large proportion of respondents (41%), described the level of support available to enable and scale young entrepreneurs in their countries as “poor” and “very poor”. This suggests that significant work remains to make it easier for young business people to succeed.

Anzisha Prize (www.AnzishaPrize.org) applications are currently open for young entrepreneurs between the ages of 15 and 22 to compete for a share of $100,000 in prize money and receive access to support and networks to scale their businesses. Applications will close on 15 April 2016. The Anzisha Prize is offered in partnership between The MasterCard Foundation and African Leadership Academy.

“African Leadership Academy is excited to be investing in research such as this,” says Josh Adler, vice president, Global Programmes at African Leadership Academy. “It is our hope that this and future reports will guide the work of teachers, policy makers and other stakeholders in the youth development sector.”

The youth surveyed overwhelmingly reported pursuing entrepreneurship primarily to make a difference in the world (57% of respondents). They largely have a focus on communities and use face-to-face client visits as the primary sales channel (56%) and word of mouth as the primary marketing tool (83%). In terms of human resources, 84% of ventures reported having employees. Young CEOs reward and incentivise their employees in a variety of ways, with training programmes (51%) and bonuses (47%) being the most popular. A large percentage also allow their employees to participate in the success of the business through profit sharing (37%). Young entrepreneurs are in a position to impact others through employment and skill building. However, they reported that the level of support available for entrepreneurs in their countries is inadequate.

“There is a large deficiency of knowledge and insights on young African entrepreneurs,” says Koffi Assouan, program manager at The MasterCard Foundation. “This report provides critical data that can drive programs and strategies to support youth entrepreneurship and spark a much needed conversation among practitioners and stakeholders in this space.”

The full survey report is available for download at http://www.AnzishaPrize.org/resources. Country level insights may be requested from the Anzisha Prize team.

For more information on the Anzisha Prize and to nominate an entrepreneur or apply, please visit the Anzisha Prize website: www.AnzishaPrize.org.

FINANCIAL SERVICES NEWS

Global crowdfunding portal launched to fund African entrepreneurs

9 FEB 2016 | SAVE | EMAIL | PRINT |  PDF    

Small and medium sized enterprises (SMEs) are the primary job creation engine in Africa, accounting for over 95% of firms and 60%-70% of employment.

Neku Atawodi - founder and CEO of Malaik

However, SMEs on the continent report access to finance as the biggest obstacle to growth. There is no lack of good ideas. Yet, young African entrepreneurs struggle to access the funds needed to bring their ideas and businesses to scale. Malaik, a global portal for high impact investing in African businesses, launched a call for applications to African entrepreneurs with impact focused businesses. The portal offers opportunities for the global crowd to invest in Africa's growth story.

"Africa is brimming with entrepreneurs with growing high impact businesses that could not only positively impact Africa, but the world," said Neku Atawodi, founder and CEO of Malaik. "Access to finance has always been a tough challenge to overcome and people have typically not wanted to invest in African businesses as they have historically been considered too risky. 

"However, the African narrative is changing for the better and the continent's exponential growth in the last decade shows that an investment in impact focused African businesses can yield high returns."

Funding first company

Since the launch of the portal, Malaik has fully funded its first company - i-Drop water - to the tune of over $250,000 and has been chosen to demo its unique innovation on stage at one of Europe's largest technology in finance conferences, FinovateEurope 2016 in London from 9-10 February. FinovateEurope is one of the biggest financial conferences in Europe and attracts the most notable players in financial services technology from across the world. 

"Young companies all over Africa face a scarcity of funds to fuel their growth," said Atawodi. "Apart from banks and occasional angel investors, there is often nowhere to turn. Malaik is turning this crisis into an opportunity for startups and investors alike by offering stakes in young African companies to the crowd. Our unique impact tracker means that investors can track their investments' impact on the platform."

Entrepreneurs across Africa are encouraged to submit their applications to join the Malaik platform as an opportunity to raise funds for their businesses. Open to startups with high impact, innovative, original and diverse ideas ready for potential investment. On passing Malaik's due diligence, startups now have the opportunity to attract a diverse crowd of investors and supporters via equity finance.

ENTREPRENEURSHIP NEWS

South Africa proudly takes over the torch for GEC 2017 in Medellin, Colombia

18 MAR 2016 | SAVE | EMAIL | PRINT |  PDF    ISSUED BY: SEA AFRICA

More than 160 countries are represented at the Global Entrepreneurship Congress in Colombia, and with South Africa hosting the GEC in 2017 for the very first time on the African continent, it is signaling to the global investment community that South Africa is open for business and ready to lead the entrepreneurial revolution on the African continent.

The annual Global Entrepreneurship Congress (GEC 2016) kicked-off in Medellin, Colombia on 14 March 2017. The GEC is the largest gathering of entrepreneurs, investors, policy makers, innovators and government ministers from around the world. The congress brings together more than 6500 delegates from 160 countries. The theme for this year’s congress was ‘The Business of Next’, and the theme speaks to improving the entrepreneurial ecosystem towards adapting to changes in the business environment, innovative solutions and investments.

Ambassador to Venezuela, Her Excellency Ambassador Thaninga Shope-Linney, who is representing Minister Lindiwe Zulu, as well as the Member of Mayoral Committee: Department of Economic Development Councillor Ruby Mathang from the City of Johannesburg (CoJ) received the GEC torch and flag from Jonathan Ortmans, president of the Global Entrepreneurship Network (GEN).

MMC Mathang articulated that “The globalisation of entrepreneurship has brought an explosion of programs, startup communities and investment opportunities into a new field. We are here in Colombia, as South Africa, to inform the global entrepreneurship network that Johannesburg is here to collaborate and share world class best practices.”

The GEC will grace the African continent for the first time at the Sandton Convention Centre in Johannesburg, from the 13-17 March 2017.

The business sector, education and government leaders have been eager champions, but they need more sophisticated tools, programs and research to help them direct their attention and funds to areas with the greatest impact on future economic growth and trends. The GEC helps address these needs by identifying effective initiatives – in all types of economies, across the macro or micro level; advanced or emerging – that positively impact entrepreneurial eco-systems around the world.

Speaking during the transition ceremony, Ortmans, said: “GEC 2017 is just one example of the Global Entrepreneurship Network’s commitment to helping the next generation of African entrepreneurs start and scale - rebranding the continent and permanently shifting perceptions around the world. We look forward to coming to South Africa.”

The successful GEC bid has been a collaborative partnership between SEA Africa, the Department of Small Business Development, City of Johannesburg, Gauteng Province, ABSA and Transnet. The South African delegation in Colombia have hosted 50 key global stakeholders in Medellin to present the roadmap to the GEC 2017 South Africa.

South Africa’s Minister for Small Business Development, Lindiwe Zulu, speaking from Pretoria stated that “Participating in global community strengthens the SME sector through understanding how different entrepreneurial ecosystems operate, learn best practices and how tools may be used to improve domestic markets. Given the constraints faced by the South African economy a significant boost in SME sector is required to address the current low growth projections and high unemployment especially amongst the youth. The GEC will provide insight on best practices, which we will localise, for the South African market. I am further encouraged that South Africa’s delegation will also use the opportunity to spark networks and create strategic conversations with global investors in preparation for Africa’s GEC in 2017.”

The Local Organising Committee will lead efforts to engage other entrepreneurial organisations across the continent including the different provinces in South Africa to establish avenues for collaboration.

The Executive Head of SEA Africa Kizito Okechukwu added that: “The GEC will help sustain the momentum of the entrepreneurial revolution currently underway globally and is accelerating in South Africa and the rest of the African continent. Together, with our partners, we emphasise the importance of private-public sector involvement and civil society for social investments, skills transfer, access to markets and collaboration with smaller businesses to achieve the expected economic development impact that is desired by all Africans.

A range of programmes and activities will be held leading up to GEC 2017. Entrepreneurs are encouraged to explore the opportunities within the various platforms.

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.

123RF

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

SAVE | EMAIL | PRINT |  PDF    

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