Mfundisi Calvin Ncube (23), Business Development Director, Umlambo Water Distributions, originally from JHB now based in CT for business purposes.

1. What is the one word that describes you and why?


Vision as where there no Vision people perish



2. What did you study?

Marketing Management



3. Tell us about your business.

Umlambo Water Distributions seeks to foster brand communication through custom branded bottled natural spring water.



4. Why did you decide to be an entrepreneur?

I felt my skills and expertise we being abused by employers who are not grateful



5. How long did it take you to implement your idea and why?

It took me about 5 months as l had to make people buy into my idea



6. What are the steps you took to turn your idea into an actual business venture?

I had to secure start up capital so l could get the ball rolling though it has not been easy we slowly getting there.



6. Did you venture straight into the business world immediately after university or you worked in the corporate world first?

As said before with former employers abusing my skill and talent l worked for almost 3 years spending much time in sales making other people rich by day.



7. Is it important to first work for someone else then later open up your own business?

Personally l do not think so, reason being one would spend time making the next person rich instead focusing on building their own empires



9. What challenges do you face as a young entrepreneur?

There is not much financial backing considering that financial institutions need surety before any loan can be approved.



10. Do you have business partner/s and what are their roles?

Yes l do have 2 business partners, Asanda Maqabuka who is Head of Marketing and Thina Nodada who is head Supply Chain we also looking into corporating another youngster who will add value to our organisation soon as partnerships are a winning formula.



13. Who is your mentor and how does he/she help you?

Lebo Gunguluza he has offered sound advice from time to time on how we can formulate a winning formula for our organisation



14. What keeps you going especially during times of discouragement?

A positive mindset



13. Any advise you would like to give to upcoming young business people.

It’s worth the risk as the returns are sometimes high when the right structure is in place



14. Any advise on pitching an idea to potential clients?

Stick to the basics and rise with your project because the client will want to associate with something that the owner strongly believes in.



15. How do people get in contact with you?

We are busy developing our website as we speak but my contact details are 082 598 3231

63% of small businesses fail

Johannesburg - Small business failure rates are as high as 63% in the first two years of trading, Absa said on Thursday at its Small Business Roundtable in Johannesburg.


"The biggest challenge that the country faces is creating employment through building a culture of entrepreneurship, but this has been difficult.


"Entrepreneurs have a certain set of skills and don't have the funds to employ the other sets to run a successful business," Nico Jacobs, head of Absa Small Business said. Jacobs highlighted the importance of small business to the economy.


"Small businesses have moved from employing 18% of the South African employable population in 1998 to more than 60% today.


"Reasons why businesses fail included poor management as well as lack of structure and infrastructure. However, the lack of financial know-how was the biggest reason."But this has not stopped new entrepreneurs from entering the market," Jacobs said.


"Currently the new entrants mainly range from people who are unemployed, retrenched or retirees who realise they can't survive on their pension."They are then forced to start their own business, but are not equipped to handle the rigours, do not have the financial support or knowledge.


"Jacobs added that in order to tackle this issue, Absa Small Business had developed a classroom-based mentoring programme – the Enterprise Growth Programme (EGP).


"One of the key highlights of this programme is that it will help develop entrepreneurial skills, teach participants how to effectively implement their business plans, understand the various aspects of a business and how they all tie in together."


The EGP currently operates in KwaZulu Natal, the Western Cape, Limpopo and Gauteng. "The national roll-out is scheduled for February 2011.

Dear Ebrahim, meet Mosa

By: Clem Sunter

2010-12-01 13:05


Quitters never win and winners never quit. So says Ted Turner, the founder of CNN. I haven’t won yet but neither am I quitting. The only way the New Growth Path recommended by Economic Development Minister, Ebrahim Patel, is going to lead to the Promised Land is to replicate Mosa Moeketsi a million times.


She is an entrepreneur of note – or as I would say – a pocket of excellence. According to an article in The Star by Lana Jacobson, she holds the record as the youngest woman to own a construction company in South Africa. Her enterprise now employs 16 people to construct roads, dig manholes, build low-cost housing and supply plumbing systems.


She won the Alexandra Business Leader of the Year award in 2007 but was disqualified from possibly winning the prize for Influential Women in Business and Government because she was too young. Hats off to Lana for bringing this young lady to our attention.


My point, Ebrahim, is this. It is all very well setting targets for the numbers of new engineers and artisans required to get South Africa on a growth footing, but they are the workers. You need the businesses to employ them and who creates the businesses – the Mosas of this world. It would have been far more inspirational (and revolutionary) to set as a target the creation of a supportive environment in which one million new small businesses will be established by 2020, rather than five million new jobs. Guess what: if the goal of one million new small businesses was achieved and they were like Mosa’s one, that would be 16 million extra jobs. Many will fail prematurely, but many will grow beyond 16 employees.


One of the problems is that you as Minister never get to talk to the real entrepreneurs (who don’t make money through connections or exploiting one or other system of entitlement). I am talking about the people who have nothing but drive and a dream to begin with and turn them into a fortune. There are plenty of these stars in South Africa like Mosa and Raymond Ackerman.


Nor do the business people with whom you rub shoulders on august bodies – like the National Planning Commission – have any clue of what it takes to be an entrepreneur, assuming all the risks, personally solving individual employee problems and collecting the money. Most business representatives on these bodies have spent their entire careers in big corporations where everything is sorted out by specialist staff, it is shareholders’ money – not their own – on the line and they never have to worry about next month’s salary cheque.


I know about the two worlds because I spent about 42 years at Anglo American and now I run my own consultancy business. It is as different as chalk and cheese. Nothing prepares one for being an entrepreneur other than going through the experience oneself.


So do yourself a favour, Ebrahim. Set up a meeting with Mosa and ask her what she needs to grow her business and get it listed on the Johannesburg Stock Exchange. After all, you as government are her principal service provider. South Africa will only take a new growth path if you back the winners like Mosa so that they improve their talent for wealth creation.


For, it is an indisputable fact that wealth creation and job creation go hand in hand; but it is the first that leads to the second – not the other way round. She is paying for your salary (through taxes): you are not paying for hers.


Freedom fighters fought the war to give champions like Mosa the freedom and opportunity to become world class. Others will follow in her footsteps. Thus our hideous unemployment rate will become a thing of the past.

Sheila Afari, 24 years old, Born in Ghana, Grew up in Eastern Cape

            

1.What is the one word that describes you and why?

I’m ambitious. I believe the sky is the limit. I don’t limit myself to what I know or what I’m comfortable with. I go the extra mile & strive to achieve all I set my mind to and beyond. I’m a pusher. I break boundaries. I don’t want to be in the same “space” I was six months ago. I work hard to grow & learn all the time.

2.What did you study?

Psychology Honours.

3. Tell us about your business.

I own two businesses, Lavish Industries & Design For Style (DFS).
Lavish Industries is a two year old lifestyle company operating in four divisions namely events, décor, artists & stylists. We offer personalized packages from conceptualization to implementation to suit our clients’ needs & budgets.
http://www.lavishindustries.blogspot.com/
http://www.lavishindustries.co.za/
Twitter:@lavishind

Design For Style (DFS) is a fashion platform that showcases emerging designers through fashion shows. We currently have fashion shows in Cape Town, but as of 2011, this fashion platform will extend to shows in Johannesburg as well. DFS’s mission is to create opportunities for young designers. Apart from the fashion shows, we have intermediatory events such as workshops that are designed to educate young designers or people interested in the design industry in how to “make it” and be sustainable in the fashion industry. We also stock the designers we showcase in various stores. Our home base currently being Collage in Long Street.
http://www.designforstyle.co.za/
Twitter: @designforstyle



4. What motivated you to start your own business?

I’m a family oriented person, and that’s where the idea of being an entrepreneur came from. When I have kids one day I want to be able to attend their school plays and sports matches and so forth. I want to be able to use my time the way I want to instead of being on someone else’s schedule.
Funny enough I never thought I’d start my own businesses whilst at varsity. I thought I’d work for someone else for a couple of years first, but both my businesses came about spontaneously. The core reason of going through with them & working hard to make them work was because I value the essence of what being an entrepreneur is and what benefits come with it long term.

5. How long did it take you to implement your idea and why?

Almost immediately for both businesses. Literally the ideas came and I started implementing them. As mentioned earlier I’m ambitious. I don’t see challenges as a reason to slow down, more of a reason to work harder to achieve the set targets.

6. What are the steps you took to turn your idea into an actual business venture?

With Lavish Industries it was very text book from day one. As soon as I got the name I registered the business before operating. I did my homework on how to write a business plan, marketing of a business and so forth. But once I started operating I put the “text book” things aside and went with my gut feelings and resources. It came with its pros and cons.



7. Did you venture straight into the business world immediately after university or you worked in the corporate world first?

I started my businesses at varsity and continued with them after university. I felt I needed to see where I could get with my businesses before venturing to work for someone else.

8. Is it important to first work for someone else then later open up your own business?

I think this is a personal choice that will be different for everyone. For me I felt I was in the right “space” to take the risk of self employment immediately after university. That isn’t the case for everyone. It’s not a decision one can make lightly. There’s a lot one can learn from being an employee, so I wouldn’t rule working for someone else out.

9. Did you have the support of your family with regards to your decision to become an entrepreneur? If not, how did you deal with that?

Um… because I’m furthering my studies with some direction of being employable, that’s their main concern. What I do with my time otherwise they have no objections. The support is there indirectly, and it has made this journey somewhat easier.

10. What challenges did you face as a young business person?

I think the challenges are endless. Every day poses a different challenge. The beauty of it however is that with every challenge comes a learning lesson and growth to be a stronger, wiser entrepreneur. The challenge I am currently trying to overcome is how to work smarter and not harder… I’m slowly but surely getting there.


11.How important is working with a team?

Team work is essential. Great team work is invaluable. There are lots of challenges in working with a team, but once you’ve got it right, the pro’s definitely out way the cons. As a person who likes to do everything herself, I’ve realized that it’s impossible and also not effective for one person to do everything. I’m learning to delegate and it’s making things easier.

12. What are the qualities that one should consider in assembling a team.

Know what expertise you have and where your short comings are. Your team should be complementary and not conflicting. I think the mistake people often make is assembling a team of people that are similar to themselves with the idea that the team will get along better. The team should be a reflection of what you need to “sell” your product most effectively. It is also important however to remember certain expertise can be outsourced. You don’t need a large team to be effective.

13. Is it important to have a mentor?

I think it’s important to keep learning and growing and how that happens isn’t really the importance. Having a mentor for the sake of it isn’t beneficial unless you believe you can learn and grow from that person. I would highly recommend that people do try find a mentor. Yes experience is the best teacher, but sometimes you can save yourself a lot of time, money, pain etc by learning from someone else’s experiences and guidance.

14. Who is your mentor and how does he/she help you?

I recently got two mentors. I’d rather not mention who they are. In the short period that I’ve known them I’ve grown considerably as a business woman. Sometimes just having someone more experienced share their experiences with you can be quite phenomenal.

15. How do you achieve a work-life balance?

I love people so lucky for me personal interaction is very important for me. I think it is important to take time out to be with my friends, family and loved ones. I have a hectic work schedule, but to prevent burn out I make sure to take time off. I plan my leisure time outings like dinners and movie nights, but when I just need to de-stress or I realise I can afford to take time off, I often rent a dvd or go for a walk.

16. Any advise you would like to give to upcoming young business people.

Give it all you’ve got! You are the solution to unemployment in the world. We need more people going out there and doing their own thing. Entrepreneurship is scary if you’re facing it on your own. Join entrepreneurship networks and surround yourself with other entrepreneurs.

17. How do people get in contact with you?

Email: sheilaafari@gmail.com
Cell: 0795569023

To learn more about Sheila's journey as an entrepreneur check out her blog on http://www.sheilaafari.blogspot.com/

Funding for South African Startups

Finding funding in South Africa for startups and new business ventures is no easy feat. In fact, it must be one of the most difficult tasks faced by any entrepreneur here.

Seed and venture capital is inherently very risky, meaning that it will always be relatively scarce.

Below is a short list of some South African finance providers that I’ve come across. I have not included many traditional venture capital firms here, but there should be several near you that you can contact in this regard [see the end of this article for a link to a longer list].

Venture capital and seed capital

• Business Partners – debt and equity investments in SME’s.
• Business Partners/Khula startup fund – funding for young black-owned businesses.
• HBD Venture Capital – invest in early stage SA companies with high growth potential [technology focus], minimum of R10 million funding requirement.
• Industrial Development Corporation [IDC] Venture Capital – invest in companies in seed or startup phase of developement [technology focus].
• Innovation Fund – focus on young businesses with patentable technology, have a seed fund which considers businesses that traditionally do not meet venture capital requirements but are important from a socio-economic standpoint.
• InVenFin – this is an early stage venture capital fund, focusing on businesses with protectable intellectual property. They claim that no investment is too small, and if it is too big they may refer it to big brother VenFin.
• Khula – offer Enablis-Khula loan fund offer guarantee for loan through FNB Enterprise Solutions from R100,000 to R2.5 million.
• National Empowerment Fund – provides entrepreneurship finance to young BEE businesses.
• Raizcorp – via their business “prosperator”, provide “soft finance” [absorb expenses to ease cash flow] for startups and developing businesses. Also offer business support services.
• Support Programme for Industrial Innovation [SPII] – offer various schemes providing finance for qualifying businesses.
• Umsobomvu Youth Fund – invest in viable businesses with BEE representation [youth and women], investments from R100,000 to R5 million.

Networks matching investors and entrepreneurs

• Angel Moola – African online social lending exchange to match lenders and borrowers.
• Blue Catalyst – an initiative from Gauteng’s Blue IQ that attempts to match entrepreneurs and their business ideas with potential investors.
• Kiva – kive.org is a global success story that has made online matching of lenders and borrowers a reality. Although it doesn’t provide specific financing for South African ventures, it is a leader in the online matching sphere and is worthwhile having a look at – you never know, it may stimulate creative funding solutions in your own business.
• Investment Network- investmentnetwork.co.za
• Fundman-fundman.org.za
  

Non-profit organisations

• The Funding Site – lists resources for non-profit organisations
  

This article is not intended to provide a comprehensive listing, but I hope it will give an idea of what is available and nudge you in the right direction if you’re looking for specific funding.

If there are others that should be included here, or you have stories about your experiences with these funders, please feel free to leave a comment below.

The SAVCA list of members provides contact details and some other potential funders for those interested, and those looking for consultants can have a look at the SAVCA associate members listing.

Concept behind Student Enterprises

Student Enterprises is an information portal targetting students (in tertiary institutions) and young entrepreneurs.

The purpose of the project is to create an interactive web portal that gives students access to information on all entrepreneurship related opportunities, business funding providers (both public an private), access to information on starting a business, templates and business models, economic information for possible opportunities that could change society.

The idea behind Student Enterprises is to encourage young people to be the difference in the world and to give them a platform to interact and get mentorship at their own pace. Part of the portal will include the ability to submit application forms for existing business development programmes, business plan competitions and business funding channels (for more advanced people who have a written business plan).

The platform is ideal for people looking to start, expand, network and grow their student business. It also offers an opportunity for other practical things, such a directories for independent service providers (marketing, PR, Mentorship, etc) , driving schools and even profiles of successful entrepreneurs.

The web portal would be self sustaining, because of the potential advertising revenue that could drawn from banks etc. Promoting the portal could be done through a poster campaign that would be spread at all university campuses throughout South Africa. The funding required will be used to develop the site and to market the URL. The potential for expansion includes extending the site into a social network for young entrepreneurs aged 16 - 35, where you automatically fall off the grid when you are over 35 and the prerequisite for entry is submitting an application accompanied by some form of identification.

* This idea has been submitted by Vuyisa Qabaka in Cape Town, South Africa (+27 72 955 4167)

Government Programmes in General

This is an FM Editorial for 6 June 2008- see my thoughts in the comments link:

Developing entrepreneurship is part of the answer to SA's unemployment problem. Since 1994 government has consistently said that small business development is one of its foremost priorities.

But attempts to establish the institutions to develop small business have been disastrous. The latest is the long, unresolved leadership crisis at the Small Enterprise Development Agency (Seda), set up in 2004 in a belated attempt to get a meaningful small business support programme going. Three and a half years later, Seda is not yet out of the starting blocks.

As in many government institutions, the problem is leadership. Weak top management has failed to provide the vision and leadership required to get things moving. Neither top management, nor many of the staff appointed at the expensive network of offices that have been established, knows much about business or entrepreneurship. And though Seda has a board on which several business people serve, it does not have the power to hire or fire the top executive - a responsibility that rests only with minister of trade & industry Mandisi Mpahlwa.

That he hasn't acted on the situation after the organisation has f oundered for more than two years is yet another example of the drift that is occurring in government. Cabinet ministers and top state officials - just like President Thabo Mbeki himself - are more concerned about managing the difficult political dynamics brought on by factionalism in the ANC than they are at making sure that government works.

The results can be seen in UCT's new annual entrepreneurship survey - the Global Entrepreneurship Monitor - published last week. As previous surveys have shown, in SA only a small proportion of the population participate in entrepreneurial activities. This is unusual for a developing country with high unemployment where, typically, greater numbers of people start their own enterprises.

The survey found that an alarming proportion of people aged between 18 and 35 believe it is government's responsibility to provide them with a job. Most people interviewed had never heard of Seda and only a tiny proportion had made use of its services.

If this isn't a wake-up call for Mpahlwa then nothing is ever likely to be. Roll on the next cabinet.