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)
Tuesday, November 25, 2008
Thursday, November 20, 2008
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.
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.
Rather Jobless than Low-Paid
Rather jobless than low-paid
By Carol Paton
Most SA youths believe it is government's responsibility to provide them with work and a good many of them say they would rather not be employed than accept a low-paying job.
These are the findings of a survey on entrepreneurship among the youth, which is part of the University of Cape Town's (UCT) Global Entrepreneurship Monitor study, conducted annually.
The director of UCT's Centre for Innovation & Entrepreneurship, Mike Herrington, describes the trends as "worrying" for the future of SA.
"Reading into the results, one gets the distinct impression that young people think entrepreneurship is for somebody else and that government will supply them with a job."
The study included interviews with 2 000 youths in Gauteng, KwaZulu Natal and the Western Cape. When asked whether they agreed that government should provide them with employment, 52% of Gautengers and 60% of those in the Western Cape said yes.
Between 22% and 27% of respondents also said they would definitely not accept a low-paying job and would rather be unemployed.
Herrington says these trends do not bode well for entrepreneurship or for the SA labour market. Though there are some indications that the allure of entrepreneurship is growing among the youth, this seems confined to certain race groups. One of the positive signals that has emerged in recent years of the survey is that among those who do get involved in entrepreneurial activity, a growing proportion do so because they want to, not because they have to. But this is only 5% of the population, which is low in international terms.
Given SA's extremely high unemployment rate - 23% on the narrow definition - one would expect more people to get involved in "necessity entrepreneurship". The fact that they don't implies that within a large proportion of the youth population - particularly among Africans and coloureds - faith in entrepreneurship is low. Many of them who did get involved in businesses made or sold the same things as others and there was a low level of innovation.
The usual factors that inhibit business start-ups - for instance, limited access to capital - played a large part in making it difficult to start a business, said respondents. Social factors such as crime also prevented youth from starting their own businesses: 76% in the Western Cape and 68% in Gauteng felt that starting a business "was just too risky; that they would get robbed or mugged and their efforts would be wasted", says Herrington.
Another drawback was drug abuse.
The report urges government to establish an integrated model to help youth entrepreneurship in SA. "SA can ill-afford the youth to become disillusioned about entrepreneurial development. Other countries have shown that the result is normally of a negative nature, such as unrest," it concludes.
By Carol Paton
Most SA youths believe it is government's responsibility to provide them with work and a good many of them say they would rather not be employed than accept a low-paying job.
These are the findings of a survey on entrepreneurship among the youth, which is part of the University of Cape Town's (UCT) Global Entrepreneurship Monitor study, conducted annually.
The director of UCT's Centre for Innovation & Entrepreneurship, Mike Herrington, describes the trends as "worrying" for the future of SA.
"Reading into the results, one gets the distinct impression that young people think entrepreneurship is for somebody else and that government will supply them with a job."
The study included interviews with 2 000 youths in Gauteng, KwaZulu Natal and the Western Cape. When asked whether they agreed that government should provide them with employment, 52% of Gautengers and 60% of those in the Western Cape said yes.
Between 22% and 27% of respondents also said they would definitely not accept a low-paying job and would rather be unemployed.
Herrington says these trends do not bode well for entrepreneurship or for the SA labour market. Though there are some indications that the allure of entrepreneurship is growing among the youth, this seems confined to certain race groups. One of the positive signals that has emerged in recent years of the survey is that among those who do get involved in entrepreneurial activity, a growing proportion do so because they want to, not because they have to. But this is only 5% of the population, which is low in international terms.
Given SA's extremely high unemployment rate - 23% on the narrow definition - one would expect more people to get involved in "necessity entrepreneurship". The fact that they don't implies that within a large proportion of the youth population - particularly among Africans and coloureds - faith in entrepreneurship is low. Many of them who did get involved in businesses made or sold the same things as others and there was a low level of innovation.
The usual factors that inhibit business start-ups - for instance, limited access to capital - played a large part in making it difficult to start a business, said respondents. Social factors such as crime also prevented youth from starting their own businesses: 76% in the Western Cape and 68% in Gauteng felt that starting a business "was just too risky; that they would get robbed or mugged and their efforts would be wasted", says Herrington.
Another drawback was drug abuse.
The report urges government to establish an integrated model to help youth entrepreneurship in SA. "SA can ill-afford the youth to become disillusioned about entrepreneurial development. Other countries have shown that the result is normally of a negative nature, such as unrest," it concludes.
Hard to Start
Hard to start
By Larry Claasen and Sibonelo Radebe
Why is it easier to get a credit card out of a bank than to get a loan to start up a business ?
This question puzzles researchers into small businesses. "Though there seem to be sufficient funds available, it remains difficult to access these funds, especially for start-ups," says the 2006 SA Global Entrepreneurship Monitor (GEM).
GEM found that banks and financial institutions fund only 25% of all start-up businesses. It comes down to understanding cashflow, says Sean Temlett, an entrepreneurship & marketing lecturer at Wits Business School. Temlett says banks are good at making judg ments on past and present cashflow but do not have the skills to assess future cashflow.
WHAT IT MEANSBanks struggle to profitably lend to small businessGovernment considering retail lending to fill the gaps
This inability to assess the profitability of a start-up company is the main reason Temlett says banks should not be funding entrepreneurs. "They should not be there. They don't understand," he says.
Temlett says venture capitalists are the only people with the skills to make judgments on future cashflow, but they look only at companies where millions of rand are to be invested.
Realising the gap left by the banks, government has established a number of state-administered small business development & finance institutions.
These include the National Empowerment Fund, Umsobomvu Youth Fund, Khula Micro Finance Apex Fund, Small Enterprise Development Agency (Seda) and to a lesser extent the Industrial Development Corporation.
Introduced with much fanfare, these entities have also not lived up to their promise. They have been subjected to endless restructuring. G overnment appears to be seeking to extend the focus of some from a wholesale base to a mass retail base.
Following i n the footsteps of Seda and Khula, Umsobomvu announced at a conference last week it plans to expand its retail network to 121 offices spread across the country and with a particular focus on the rural areas. It represents a shift in emphasis from providing support to private-sector institutions to service small business to one of direct small business servicing.
Umsobomvu CEO Malose Kekana says the entity will not splash out its funds on setting up infrastructure and on overheads but will rely on the support of local government. Some of its existing offices are already housed for free in local government offices, he says.
For businesses that don't succeed through state and bank channels, Temlett recommends that entrepreneurs go and knock on the door of large corporations to obtain funding and support.
Under the black economic empowerment codes of good practice and the various empowerment charters, companies are recognised for supporting the development of small businesses.
Temlett points out that this kind of support often ties in to a company's strategy of outsourcing noncore business functions. He gives the example of some companies' decision to treat their truck-drivers as subcontractors.
The banks may not have the necessary skills but they are under pressure to fund black entrepreneurs. The financial sector charter commits banks to spend R5bn on black-owned small businesses by 2008.
So how do banks go about funding small businesses when they do not have the expertise to do so? So far, banks have attempted to address the risks through mentorships. First National Bank (FNB) insists that entrepreneurs have mentors - usually retired businessmen - to provide them with guidance in running the business, says FNB CE Michael Jordaan.
Absa, Nedbank and Standard Bank are offering specialist financial packages that come with an advisory service.
The banks, however, are even more reluctant in the case of smaller loans. It's not economically viable for them to grant loans of between R10 000 and R250 000, says Jo Schwenke, MD of Business Partners, a venture capital firm. He says this funding "gap" is because any loan over R10 000 requires a lengthy and costly due-diligence study that makes it too expensive to grant a loan for less than R250 000.
This gap is one of the reasons the DTI wants to turn its wholesale loan scheme, Khula Enterprise Finance, into a retail bank that will grant loans directly to the public. Khula currently provides guarantees for the loans made by banks to small businesses.
Schwenke says Business Partners is trying to deal with the gap by developing, in partnership with Harvard University, an automated due-diligence system that assesses businesses in a matter of days.
There are no short cuts in tackling the difficulties of funding small businesses, says Melt van der Spuy, director of business support at Standard Bank.
It requires constant monitoring of cashflow and activities inside the business. Factors like the health of the business owner and whether the company has lost a major contract must be monitored. For banks, funding small businesses is "onerous and expensive", he says.
The banks don't expect to make money out of small businesses anytime soon. "We see our involvement with them as the beginning of a long-term relationship," says Donovan Steenkamp, Absa's GM of customer value proposition for small business.
But entrepreneurs are a sneaky lot. Jordaan thinks they are somehow getting round the formal process of getting funding from banks: "I would not be surprised if some credit card debt is going into small businesses."
By Larry Claasen and Sibonelo Radebe
Why is it easier to get a credit card out of a bank than to get a loan to start up a business ?
This question puzzles researchers into small businesses. "Though there seem to be sufficient funds available, it remains difficult to access these funds, especially for start-ups," says the 2006 SA Global Entrepreneurship Monitor (GEM).
GEM found that banks and financial institutions fund only 25% of all start-up businesses. It comes down to understanding cashflow, says Sean Temlett, an entrepreneurship & marketing lecturer at Wits Business School. Temlett says banks are good at making judg ments on past and present cashflow but do not have the skills to assess future cashflow.
WHAT IT MEANSBanks struggle to profitably lend to small businessGovernment considering retail lending to fill the gaps
This inability to assess the profitability of a start-up company is the main reason Temlett says banks should not be funding entrepreneurs. "They should not be there. They don't understand," he says.
Temlett says venture capitalists are the only people with the skills to make judgments on future cashflow, but they look only at companies where millions of rand are to be invested.
Realising the gap left by the banks, government has established a number of state-administered small business development & finance institutions.
These include the National Empowerment Fund, Umsobomvu Youth Fund, Khula Micro Finance Apex Fund, Small Enterprise Development Agency (Seda) and to a lesser extent the Industrial Development Corporation.
Introduced with much fanfare, these entities have also not lived up to their promise. They have been subjected to endless restructuring. G overnment appears to be seeking to extend the focus of some from a wholesale base to a mass retail base.
Following i n the footsteps of Seda and Khula, Umsobomvu announced at a conference last week it plans to expand its retail network to 121 offices spread across the country and with a particular focus on the rural areas. It represents a shift in emphasis from providing support to private-sector institutions to service small business to one of direct small business servicing.
Umsobomvu CEO Malose Kekana says the entity will not splash out its funds on setting up infrastructure and on overheads but will rely on the support of local government. Some of its existing offices are already housed for free in local government offices, he says.
For businesses that don't succeed through state and bank channels, Temlett recommends that entrepreneurs go and knock on the door of large corporations to obtain funding and support.
Under the black economic empowerment codes of good practice and the various empowerment charters, companies are recognised for supporting the development of small businesses.
Temlett points out that this kind of support often ties in to a company's strategy of outsourcing noncore business functions. He gives the example of some companies' decision to treat their truck-drivers as subcontractors.
The banks may not have the necessary skills but they are under pressure to fund black entrepreneurs. The financial sector charter commits banks to spend R5bn on black-owned small businesses by 2008.
So how do banks go about funding small businesses when they do not have the expertise to do so? So far, banks have attempted to address the risks through mentorships. First National Bank (FNB) insists that entrepreneurs have mentors - usually retired businessmen - to provide them with guidance in running the business, says FNB CE Michael Jordaan.
Absa, Nedbank and Standard Bank are offering specialist financial packages that come with an advisory service.
The banks, however, are even more reluctant in the case of smaller loans. It's not economically viable for them to grant loans of between R10 000 and R250 000, says Jo Schwenke, MD of Business Partners, a venture capital firm. He says this funding "gap" is because any loan over R10 000 requires a lengthy and costly due-diligence study that makes it too expensive to grant a loan for less than R250 000.
This gap is one of the reasons the DTI wants to turn its wholesale loan scheme, Khula Enterprise Finance, into a retail bank that will grant loans directly to the public. Khula currently provides guarantees for the loans made by banks to small businesses.
Schwenke says Business Partners is trying to deal with the gap by developing, in partnership with Harvard University, an automated due-diligence system that assesses businesses in a matter of days.
There are no short cuts in tackling the difficulties of funding small businesses, says Melt van der Spuy, director of business support at Standard Bank.
It requires constant monitoring of cashflow and activities inside the business. Factors like the health of the business owner and whether the company has lost a major contract must be monitored. For banks, funding small businesses is "onerous and expensive", he says.
The banks don't expect to make money out of small businesses anytime soon. "We see our involvement with them as the beginning of a long-term relationship," says Donovan Steenkamp, Absa's GM of customer value proposition for small business.
But entrepreneurs are a sneaky lot. Jordaan thinks they are somehow getting round the formal process of getting funding from banks: "I would not be surprised if some credit card debt is going into small businesses."
Thursday, November 13, 2008
SA’s lending sector ‘lacks appetite for risk’
Potential entrepreneurs are being denied start-up capital, which hinders the goal of reducing poverty
SA’s venture capital sector is too timid, says acting director of the University of the Witwatersrand Business School’s (WBS’s) Centre for Entrepreneurship, Fredell Jacobs. This means too many potential entrepreneurs do not get the funding they need to start a business or expand the one they started on their own.
The government has bought into the United Nations Conference on Trade and Development’s observation that development of the private sector and entrepreneurship are as essential to emerging economies and eradicating poverty as are sound macroeconomic policies and market access. It often implores society to “do more” to help small businesses, but Jacobs says the substance is not there.
“Look at the American capitalist system. It’s got its problems right now, but its safety net for start-up business is far bigger. Here if you fail in business it’s a quick road to getting blacklisted and then it’s very difficult to (get the funding) to start up again. Venture capitalists in the US have a bigger appetite for risk and they don’t have a punitive system (that kicks in) if you fail,” says Jacobs.
This in turn means too many South African youngsters do not see others around them starting up businesses, fail or succeed, and that translates into a general feeling of apathy, says Jacobs, a businessman and final-year Master of Business Administration (MBA) candidate at WBS.
“We have to get rid of the ‘I can’t’ attitude,” says Jacobs, who is also programme leader for the Massachusetts Institute of Technology Global Start-Up Workshop the WBS is hosting in Cape Town next March.
The business school is making a point of getting SA’s youth to the conference — 35 of the 60 seats available to the WBS will be sponsored so that higher education institutions and entrepreneur-supporting youth groups can send budding business leaders to the conference, says Jacobs.
While many young urban South African do have entrepreneurial confidence and zest, the closer to rural areas one gets, the less this is so, says Business Partners MD Jo’ Schwenke.
During 2007-08, Business Partners managed a R1672,1m investment portfolio and made 682 investments, 304 of which were approved for black entrepreneurs and 254 for businesses owned and run by women.
Umsobomvu Youth Fund (UYF) CEO Malose Kekana says SA’s youth are growing in entrepreneurial spirit, but that SA’s lending sector is wary of providing youngsters with start-up cash, and this is their biggest hurdle. The UYF is a statutory body which promotes entrepreneurship, job creation, skills development and skills transfer among South Africans aged 18-35. It helped set about 50000 businesses on their feet from 2003 to 2007.
Jacobs notes that banks are not the best vehicle for securing start-up business finance, though they are probably good entities to underwrite this.
“Venture capital needs to come from people who are open to taking a knock from time to time and we need also to provide a lot of support and not draw back funding (from a newly established business) immediately things start to go wrong ... the Business Partners model is a good one,” he says.
This is a brave statement in the current financial situation, but Jacobs says business people must draw lessons from business moguls such as US investor Warren Buffet and SA’s Brian Joffe (Bidvest’s CEO), both of whom have said that it is when markets are running scared that investors need to go in.
Jacobs says it is heartening that SA’s financial sector has been buffered from the crisis and that money for start-ups in institutions such as the trade and industry department’s National Empowerment Fund is reasonably safe because most of their assets are locally sourced.
Schwenke believes what differentiates Business Partners’ funding model from most others is the type of deal it secures with a prospective business, and the lengths to which it goes to monitor businesses it finances.
Jacobs lists a final problem as being that business leaders such as Patrice Motsepe and Tokyo Sexwale only make the news once they are already successful. So young people don’t get to see the “sweat and slog” of developing a successful business.
SA’s venture capital sector is too timid, says acting director of the University of the Witwatersrand Business School’s (WBS’s) Centre for Entrepreneurship, Fredell Jacobs. This means too many potential entrepreneurs do not get the funding they need to start a business or expand the one they started on their own.
The government has bought into the United Nations Conference on Trade and Development’s observation that development of the private sector and entrepreneurship are as essential to emerging economies and eradicating poverty as are sound macroeconomic policies and market access. It often implores society to “do more” to help small businesses, but Jacobs says the substance is not there.
“Look at the American capitalist system. It’s got its problems right now, but its safety net for start-up business is far bigger. Here if you fail in business it’s a quick road to getting blacklisted and then it’s very difficult to (get the funding) to start up again. Venture capitalists in the US have a bigger appetite for risk and they don’t have a punitive system (that kicks in) if you fail,” says Jacobs.
This in turn means too many South African youngsters do not see others around them starting up businesses, fail or succeed, and that translates into a general feeling of apathy, says Jacobs, a businessman and final-year Master of Business Administration (MBA) candidate at WBS.
“We have to get rid of the ‘I can’t’ attitude,” says Jacobs, who is also programme leader for the Massachusetts Institute of Technology Global Start-Up Workshop the WBS is hosting in Cape Town next March.
The business school is making a point of getting SA’s youth to the conference — 35 of the 60 seats available to the WBS will be sponsored so that higher education institutions and entrepreneur-supporting youth groups can send budding business leaders to the conference, says Jacobs.
While many young urban South African do have entrepreneurial confidence and zest, the closer to rural areas one gets, the less this is so, says Business Partners MD Jo’ Schwenke.
During 2007-08, Business Partners managed a R1672,1m investment portfolio and made 682 investments, 304 of which were approved for black entrepreneurs and 254 for businesses owned and run by women.
Umsobomvu Youth Fund (UYF) CEO Malose Kekana says SA’s youth are growing in entrepreneurial spirit, but that SA’s lending sector is wary of providing youngsters with start-up cash, and this is their biggest hurdle. The UYF is a statutory body which promotes entrepreneurship, job creation, skills development and skills transfer among South Africans aged 18-35. It helped set about 50000 businesses on their feet from 2003 to 2007.
Jacobs notes that banks are not the best vehicle for securing start-up business finance, though they are probably good entities to underwrite this.
“Venture capital needs to come from people who are open to taking a knock from time to time and we need also to provide a lot of support and not draw back funding (from a newly established business) immediately things start to go wrong ... the Business Partners model is a good one,” he says.
This is a brave statement in the current financial situation, but Jacobs says business people must draw lessons from business moguls such as US investor Warren Buffet and SA’s Brian Joffe (Bidvest’s CEO), both of whom have said that it is when markets are running scared that investors need to go in.
Jacobs says it is heartening that SA’s financial sector has been buffered from the crisis and that money for start-ups in institutions such as the trade and industry department’s National Empowerment Fund is reasonably safe because most of their assets are locally sourced.
Schwenke believes what differentiates Business Partners’ funding model from most others is the type of deal it secures with a prospective business, and the lengths to which it goes to monitor businesses it finances.
Jacobs lists a final problem as being that business leaders such as Patrice Motsepe and Tokyo Sexwale only make the news once they are already successful. So young people don’t get to see the “sweat and slog” of developing a successful business.
Wednesday, November 12, 2008
My opinion of government funding programmes
My opinion of government funding programmes
Anyone who has read through my profile will know that I am passionate about creating opportunity and growth for young entrepreneurs.
I am also of the opinion that our government funding programmes do not support intelligent entrepreneurs. In many developing countries around the world, namely India and Malaysia, the government has support programmes that provide support (in the form of grants, loans and incubators) to university graduates looking to start new businesses fresh out of college or university. In first world countries like the UK, there are various public/private partnership that exist for the sole purpose of developing new business concepts developed by people under 30.
South Africa has an abundance of ideas and an equal abundance of talented young people looking to succeed in life. Then why is it that we still suffer from a massive exodus of young graduates leaving our shores looking for opportunities elsewhere, why is it we have a massive void created by unemployed graduates?
My experience has taught me that government funding programmes exist primarily to service the unskilled, uneducated and under development sections of the youth. Not enough focus is placed on the educated, intelligent and inexperienced young people in our country. Imagine for a second if more funding what focussed on supporting entrepreneurial projects that were developed by young graduates, who are not interested in entering the formal job market. I am willing to bet that the outlook of unemployment will change in South Africa, I am willing to bet that the skills shortage will be reversed, I am willing to bet that matric pass rates will improve, I am willing to bet that poverty will decrease, I am willing to bet that skilled people will remain in this country to pursue opportunities.
It's no use moaning and complaining about about a situation without offering solutions to it. So, I have taken up the gauntlet and gone out of my way to begin a process which I hope one day will benefit the youth of this country:With the support of the founders of Bizwave.com, we are looking to grow a strong network of entrepreneurs and eventually looking to start a unique project which will lobby government and private sector funders to support young graduates.
Support comes in many forms, and is not only limited to finance. An excellent example already exists in the Eastern Cape, where the Buffalo City municipality supports young people through subsidised driving lessons. This has a dual impact in the lives of those that benefit from programme, for one it immediately gives them the opportunity to travel freely without the stress of relying on an "unreliable" public transport system...hooray for that! Furthermore, it opens up opportunities for employment in the formal sector. Such a project will combine experienced mentorship, business assessment and business training. This benefits both the entrepreneur and the funder, as you are able to improve the chances for business success.
The annual GEM survey on global entrepreneurship has consistantly shown South Africa to be a land of opportunities with a thriving informal and SMME sectors. At the same time, it has pointed a disapproving finger at the lack of proper government support and ease of doing business in South Africa.
Governments exist in modern society for a number of important reasons, but in modern economies, government entities are better served as support mechanisms (and watchdogs). Our government could do a better job of eradicating youth unemployment by supporting intelligent, graduate development and youth entrepreneurship.
Anyone who has read through my profile will know that I am passionate about creating opportunity and growth for young entrepreneurs.
I am also of the opinion that our government funding programmes do not support intelligent entrepreneurs. In many developing countries around the world, namely India and Malaysia, the government has support programmes that provide support (in the form of grants, loans and incubators) to university graduates looking to start new businesses fresh out of college or university. In first world countries like the UK, there are various public/private partnership that exist for the sole purpose of developing new business concepts developed by people under 30.
South Africa has an abundance of ideas and an equal abundance of talented young people looking to succeed in life. Then why is it that we still suffer from a massive exodus of young graduates leaving our shores looking for opportunities elsewhere, why is it we have a massive void created by unemployed graduates?
My experience has taught me that government funding programmes exist primarily to service the unskilled, uneducated and under development sections of the youth. Not enough focus is placed on the educated, intelligent and inexperienced young people in our country. Imagine for a second if more funding what focussed on supporting entrepreneurial projects that were developed by young graduates, who are not interested in entering the formal job market. I am willing to bet that the outlook of unemployment will change in South Africa, I am willing to bet that the skills shortage will be reversed, I am willing to bet that matric pass rates will improve, I am willing to bet that poverty will decrease, I am willing to bet that skilled people will remain in this country to pursue opportunities.
It's no use moaning and complaining about about a situation without offering solutions to it. So, I have taken up the gauntlet and gone out of my way to begin a process which I hope one day will benefit the youth of this country:With the support of the founders of Bizwave.com, we are looking to grow a strong network of entrepreneurs and eventually looking to start a unique project which will lobby government and private sector funders to support young graduates.
Support comes in many forms, and is not only limited to finance. An excellent example already exists in the Eastern Cape, where the Buffalo City municipality supports young people through subsidised driving lessons. This has a dual impact in the lives of those that benefit from programme, for one it immediately gives them the opportunity to travel freely without the stress of relying on an "unreliable" public transport system...hooray for that! Furthermore, it opens up opportunities for employment in the formal sector. Such a project will combine experienced mentorship, business assessment and business training. This benefits both the entrepreneur and the funder, as you are able to improve the chances for business success.
The annual GEM survey on global entrepreneurship has consistantly shown South Africa to be a land of opportunities with a thriving informal and SMME sectors. At the same time, it has pointed a disapproving finger at the lack of proper government support and ease of doing business in South Africa.
Governments exist in modern society for a number of important reasons, but in modern economies, government entities are better served as support mechanisms (and watchdogs). Our government could do a better job of eradicating youth unemployment by supporting intelligent, graduate development and youth entrepreneurship.
Thursday, November 6, 2008
Cape Venture Partners- 7 Stages of Angel Investment
7 Stages of Angel Investment
1. Sourcing
We use our extensive network to find investment opportunities in the technology sector. Many of these are early stage.
2. Screening and Evaluation
We filter the many opportunities against our investment criteria, carefully selecting those with the most potential. We are seeking businesses with significant potential i.e.:
meet an unmet customer need
dramatically reduce the cost of meeting a customer need
have potential to open new or gain significant market share in an existing market
appropriate timing (not too early or too late, hit the market when customers are ready to buy) resulting in a profitable business with the potential to generate an above average ROI for its investors.
Approximately 10% of opportunities that approach us make it to stage 3. Part of the screening out includes entrepreneurs with unrealistic expectations. The screening process also could consider pre-defined conditions such as BEE compliance, geographical preference, minimum turnover, etc. We also manage the rejection process for those that do not make it, attempting to encourage the entrepreneurs to feel motivated to try again having remedied the reasons for their rejection and hopefully wanting to deal with us in the future.
3. Grooming
We work with the entrepreneur for a period of time, overcoming early obstacles, and getting the business to a fundable state (investment readiness). We ensure the opportunity is real, quantify the risk and ensure a realistic expectation of returns for the investors. We also ensure adequate financial management and management accounting.
4. Valuation
We would apply a variety of valuation methods, and propose a valuation range. We also set exit strategy objectives, including exit valuation and timescale to exit to be attractive to VCs.
5. Matching and structuring of deal
We match the opportunity with appropriate investors, arranging syndication if required. We propose deal structure, ensuring investors have protection. For example, we would consider:-
most appropriate stock selection:
common or preferred
which rights are attached, e.g. tag-along, pre-emptive, board seats, information, liquidation, redemption, first refusal, anti- dilution, royalty, dividend, warranties),
convertibility (from one type to another, compensating investors with equity for under performance and entrepreneurs for exceeding targets)
level of involvement of investor (hands on or sleeping)
matching funds
setting of goals and growth targets
A typical Angel investment would be
6. Nurturing
We mentor and coach the entrepreneur and management team, occasionally taking interim management roles, with a view to ensuring goals and growth targets are achieved. As co-shareholders, we seek to protect and maximise the value of our investment. During this phase we would supply regular progress feedback to investors (monthly progress report).
7. Exit (harvesting)
Lining up appropriate second round funding sources. We target returns of at least 50% per annum. At each stage we seek to identify, quantify, manage and reduce risk, adding value to all stakeholders involved in the process
1. Sourcing
We use our extensive network to find investment opportunities in the technology sector. Many of these are early stage.
2. Screening and Evaluation
We filter the many opportunities against our investment criteria, carefully selecting those with the most potential. We are seeking businesses with significant potential i.e.:
meet an unmet customer need
dramatically reduce the cost of meeting a customer need
have potential to open new or gain significant market share in an existing market
appropriate timing (not too early or too late, hit the market when customers are ready to buy) resulting in a profitable business with the potential to generate an above average ROI for its investors.
Approximately 10% of opportunities that approach us make it to stage 3. Part of the screening out includes entrepreneurs with unrealistic expectations. The screening process also could consider pre-defined conditions such as BEE compliance, geographical preference, minimum turnover, etc. We also manage the rejection process for those that do not make it, attempting to encourage the entrepreneurs to feel motivated to try again having remedied the reasons for their rejection and hopefully wanting to deal with us in the future.
3. Grooming
We work with the entrepreneur for a period of time, overcoming early obstacles, and getting the business to a fundable state (investment readiness). We ensure the opportunity is real, quantify the risk and ensure a realistic expectation of returns for the investors. We also ensure adequate financial management and management accounting.
4. Valuation
We would apply a variety of valuation methods, and propose a valuation range. We also set exit strategy objectives, including exit valuation and timescale to exit to be attractive to VCs.
5. Matching and structuring of deal
We match the opportunity with appropriate investors, arranging syndication if required. We propose deal structure, ensuring investors have protection. For example, we would consider:-
most appropriate stock selection:
common or preferred
which rights are attached, e.g. tag-along, pre-emptive, board seats, information, liquidation, redemption, first refusal, anti- dilution, royalty, dividend, warranties),
convertibility (from one type to another, compensating investors with equity for under performance and entrepreneurs for exceeding targets)
level of involvement of investor (hands on or sleeping)
matching funds
setting of goals and growth targets
A typical Angel investment would be
6. Nurturing
We mentor and coach the entrepreneur and management team, occasionally taking interim management roles, with a view to ensuring goals and growth targets are achieved. As co-shareholders, we seek to protect and maximise the value of our investment. During this phase we would supply regular progress feedback to investors (monthly progress report).
7. Exit (harvesting)
Lining up appropriate second round funding sources. We target returns of at least 50% per annum. At each stage we seek to identify, quantify, manage and reduce risk, adding value to all stakeholders involved in the process
Useful Resource for ICT entrepreneurs
Putting a Value on a New Venture
Read the following article from BusinessWeek of 8 August 2008 before you decide to propose a deal to investors.
http://www.businessweek.com/smallbiz/content/aug2008/sb2008088_243611.htm?chan=smallbiz_smallbiz+index+page_top+small+business+
Department of Trade and Industry (DTI) (www.dti.gov.za)
The government agency responsible for the development of business in South Africa. Good general information about starting or expanding a business in SA, export advice and good links to other resources and agencies.
Cape Town IT Initiative (CITI) (www.citi.org.za)
The Cape IT Initiative (CITI) is a not-for-profit organisation focused on developing the ICT cluster in the Western Cape. CITI has assisted local business development through entrepreneurial support programmes and continues to play an important role in enabling ICT in the region, creating necessary linkages both nationally and internationally.
(http://www.citi.org.za/transform/velociti-blog/velocitiblog)
BandWidth Barn (BWB) (www.bandwidthbarn.org)
The objectives of the Barn are to serve as a focus point for IT entrepreneurship in the Western Cape, to provide affordable always-on internet connectivity to small IT start-ups, and a supportive cross-pollinating community to create synergies. The Bandwidth Barn is an incubator that provides a dynamic environment where entrepreneurs are equipped with the necessary tools to overcome the challenges of the Knowledge economy.
South African Venture Capital Association (SAVCA) (www.savca.co.za)
The main objectives of the Association are to promote the venture capital and private equity profession in South Africa. Comprehensive list of members incl description and contact details. Should be the first point of contact when looking for a suitable source of finance.
CVP partner, David Murray is co-convenor for SAVCA in the Western Cape.
Enablis (www.enablis.co.za)
Enablis is a new and innovative global non-profit organisation of entrepreneurs dedicated to help bridge the digital divide by helping other entrepreneurs develop sustainable businesses. The digital divide is the gap between those with access to, and knowledge of, information and communication technology (ICT) and those without. The Enablis team aims to achieve these objectives by supporting small and medium sized enterprises (SME's) that use, or are intending to use, the power of ICT in their businesses. Operating on commercial principles, they provide intensive business guidance and support combined with critical early-stage business financing. Enablis entrepreneurs become part of a close-knit business network with access to wider local and global business expertise, opportunities and funding.
CVP partners participate on Enablis judging panels
Endeavor (www.endeavor.co.za)
Endeavor is a non-profit organization that identifies and supports innovative, high-growth entrepreneurs in emerging markets around the world. It helps visionary entrepreneurs, with daring ideas, who are transforming their communities, their industries, and even their countries. It helps create jobs, propel economies, and cultivate rising leaders and role models. Endeavor is not a fund. They are part talent scouts, part business accelerators, part real-time business school.
Nicci Ferguson Inc. (www.nicciferguson.com)
“Cape Town based law firm who specialize in assisting early stage entrepreneurs, especially those in the technology arena. Their expertise includes Intellectual Property, Telecommunications, E-Commerce and Online Media. Their services are also affordable for early stage businesses.
Spoor & Fisher (www.spoorandfisher.co.za)
Patent, Trade Mark and Copyright attorneys
Design and Patent Protection Toolkits (www.MyPatent.co.za)
How to go about protecting your intellectual property.
Top Technology Award 100 (www.tt100.co.za)
Top Technology 100 (TT100) is South Africa’s foremost business excellence awards programme. TT100 recognises the way in which organisations use technology to achieve, more effectively, their own objectives. TT100 is therefore less about technology itself, than fundamentally about the way technology is used innovatively.
Read the following article from BusinessWeek of 8 August 2008 before you decide to propose a deal to investors.
http://www.businessweek.com/smallbiz/content/aug2008/sb2008088_243611.htm?chan=smallbiz_smallbiz+index+page_top+small+business+
Department of Trade and Industry (DTI) (www.dti.gov.za)
The government agency responsible for the development of business in South Africa. Good general information about starting or expanding a business in SA, export advice and good links to other resources and agencies.
Cape Town IT Initiative (CITI) (www.citi.org.za)
The Cape IT Initiative (CITI) is a not-for-profit organisation focused on developing the ICT cluster in the Western Cape. CITI has assisted local business development through entrepreneurial support programmes and continues to play an important role in enabling ICT in the region, creating necessary linkages both nationally and internationally.
(http://www.citi.org.za/transform/velociti-blog/velocitiblog)
BandWidth Barn (BWB) (www.bandwidthbarn.org)
The objectives of the Barn are to serve as a focus point for IT entrepreneurship in the Western Cape, to provide affordable always-on internet connectivity to small IT start-ups, and a supportive cross-pollinating community to create synergies. The Bandwidth Barn is an incubator that provides a dynamic environment where entrepreneurs are equipped with the necessary tools to overcome the challenges of the Knowledge economy.
South African Venture Capital Association (SAVCA) (www.savca.co.za)
The main objectives of the Association are to promote the venture capital and private equity profession in South Africa. Comprehensive list of members incl description and contact details. Should be the first point of contact when looking for a suitable source of finance.
CVP partner, David Murray is co-convenor for SAVCA in the Western Cape.
Enablis (www.enablis.co.za)
Enablis is a new and innovative global non-profit organisation of entrepreneurs dedicated to help bridge the digital divide by helping other entrepreneurs develop sustainable businesses. The digital divide is the gap between those with access to, and knowledge of, information and communication technology (ICT) and those without. The Enablis team aims to achieve these objectives by supporting small and medium sized enterprises (SME's) that use, or are intending to use, the power of ICT in their businesses. Operating on commercial principles, they provide intensive business guidance and support combined with critical early-stage business financing. Enablis entrepreneurs become part of a close-knit business network with access to wider local and global business expertise, opportunities and funding.
CVP partners participate on Enablis judging panels
Endeavor (www.endeavor.co.za)
Endeavor is a non-profit organization that identifies and supports innovative, high-growth entrepreneurs in emerging markets around the world. It helps visionary entrepreneurs, with daring ideas, who are transforming their communities, their industries, and even their countries. It helps create jobs, propel economies, and cultivate rising leaders and role models. Endeavor is not a fund. They are part talent scouts, part business accelerators, part real-time business school.
Nicci Ferguson Inc. (www.nicciferguson.com)
“Cape Town based law firm who specialize in assisting early stage entrepreneurs, especially those in the technology arena. Their expertise includes Intellectual Property, Telecommunications, E-Commerce and Online Media. Their services are also affordable for early stage businesses.
Spoor & Fisher (www.spoorandfisher.co.za)
Patent, Trade Mark and Copyright attorneys
Design and Patent Protection Toolkits (www.MyPatent.co.za)
How to go about protecting your intellectual property.
Top Technology Award 100 (www.tt100.co.za)
Top Technology 100 (TT100) is South Africa’s foremost business excellence awards programme. TT100 recognises the way in which organisations use technology to achieve, more effectively, their own objectives. TT100 is therefore less about technology itself, than fundamentally about the way technology is used innovatively.
Cape town business finance and support directory
Cape town business finance and support directory
© BusinessOwner 1997-2005
General business support
The Business Place: Network and information centre for existing and emerging entrepreneurs. Functions as a centre where business owners receive help in starting or improving their businesses. Contact: Denise Dookoo. (021) 422 2797.
Business Beat: Provides mentoring, counselling, bookkeeping, company registration and a host of other support services. Contact 086 1100 447.
Business Establishment Sustainability Programme (BESP): BESP, formerly known as the Centre for Opportunity Development (COD), has a highly-rated group of business advisors. They offer services from start-up training to business information and analysis. Contact (021) 448 7501.
Enterprise Development Unit (EDU): Based at UWC, they provide management training, entrepreneurship research, training and other business development programmes. Contact(021) 959 2240.
Isibane Resource Centre: They offer training, mentoring and consulting and arrange finance for businesses in Cape Town and outlying areas as far as Paarl. Contact (021) 633 1883.
Lingelethu Business Support: Based in Somerset West, they provide general support to businesses. Contact (021) 852 4180.
Support Emerging Entrepreneurs (SEE): A UCT MBA programme where students use the training received from the course to consult with businesses. Business Partners dedicate a team of their specialists to assist the students in working with an emerging enterprise for two months. Contact (021) 406 1329.
Matchmakers: A City of Cape Town sponsored programme that links businesses with financiers and other service providers. Run a database to link up black and white businesses wishing to join forces. Offer tender mentoring, one-on-one consultations for expanding businesses and start-ups. They are introducing a new sms alert venture on tender opportunities and procurement together with Dreamworld Film Studio. Contact (021) 852 4402.
Business referral and informationCity of Cape Town Economic Development and Tourism Directorate: Their core function is to advise and guide the Council on how to pursue economic development and to provide specialised economic development services. These support strategies include developing and promoting entrepreneurial skills and creating opportunities for people who live and work in the city. Contact Zolile Siswana at (021) 483 9011.
Business Associations
Cape Town Regional Chamber of Commerce and Industry: Is a business association with over 4 500 members. Their role includes being brokers, facilitators, advocates and catalysts for development of businesses. The Chamber arranges seminars on a wide range of topics of interest and importance to business. Membership costs R1 016 minimum, and increases depending on the number of employees. Contact (021) 418 4300.
Finance
Khethani Business Finance: A non-profit organisation that assists businesses whose loan applications would normally be turned down by the banks. They are probably one of the most successful Khula-backed business lenders still operating. Contact (021) 683 7656.
New Business Finance (NBF): Provides business finance from R1 000 up to R250 000 to start-up businesses and expanding businesses that do not meet standard banking criteria. Asset finance, working capital, tender or contract finance and bridging finance are provided. Contact (021) 671 6263
© BusinessOwner 1997-2005
General business support
The Business Place: Network and information centre for existing and emerging entrepreneurs. Functions as a centre where business owners receive help in starting or improving their businesses. Contact: Denise Dookoo. (021) 422 2797.
Business Beat: Provides mentoring, counselling, bookkeeping, company registration and a host of other support services. Contact 086 1100 447.
Business Establishment Sustainability Programme (BESP): BESP, formerly known as the Centre for Opportunity Development (COD), has a highly-rated group of business advisors. They offer services from start-up training to business information and analysis. Contact (021) 448 7501.
Enterprise Development Unit (EDU): Based at UWC, they provide management training, entrepreneurship research, training and other business development programmes. Contact(021) 959 2240.
Isibane Resource Centre: They offer training, mentoring and consulting and arrange finance for businesses in Cape Town and outlying areas as far as Paarl. Contact (021) 633 1883.
Lingelethu Business Support: Based in Somerset West, they provide general support to businesses. Contact (021) 852 4180.
Support Emerging Entrepreneurs (SEE): A UCT MBA programme where students use the training received from the course to consult with businesses. Business Partners dedicate a team of their specialists to assist the students in working with an emerging enterprise for two months. Contact (021) 406 1329.
Matchmakers: A City of Cape Town sponsored programme that links businesses with financiers and other service providers. Run a database to link up black and white businesses wishing to join forces. Offer tender mentoring, one-on-one consultations for expanding businesses and start-ups. They are introducing a new sms alert venture on tender opportunities and procurement together with Dreamworld Film Studio. Contact (021) 852 4402.
Business referral and informationCity of Cape Town Economic Development and Tourism Directorate: Their core function is to advise and guide the Council on how to pursue economic development and to provide specialised economic development services. These support strategies include developing and promoting entrepreneurial skills and creating opportunities for people who live and work in the city. Contact Zolile Siswana at (021) 483 9011.
Business Associations
Cape Town Regional Chamber of Commerce and Industry: Is a business association with over 4 500 members. Their role includes being brokers, facilitators, advocates and catalysts for development of businesses. The Chamber arranges seminars on a wide range of topics of interest and importance to business. Membership costs R1 016 minimum, and increases depending on the number of employees. Contact (021) 418 4300.
Finance
Khethani Business Finance: A non-profit organisation that assists businesses whose loan applications would normally be turned down by the banks. They are probably one of the most successful Khula-backed business lenders still operating. Contact (021) 683 7656.
New Business Finance (NBF): Provides business finance from R1 000 up to R250 000 to start-up businesses and expanding businesses that do not meet standard banking criteria. Asset finance, working capital, tender or contract finance and bridging finance are provided. Contact (021) 671 6263
MY THOUGHTS ON MR RUPERTS SPEECH
In many ways I agree with Mr Rupert's commentary on the state of the economy and what needs to be done for the country going forward...in many way...in some ways I tend to disagree! Besides doubting Mr Rupert's "reality" of the type of South Africa we live, and also doubting his motives and the timing of his speech (his family having built an enormous amount of wealth on the back of this country's resources, one can say that he is a major industrialist or player and a great capitalist). The main resource for my doubts, is the very same reason I have started this blog. It is my sincere belief that government and big business in our country does not invest enough resources into educated, intelleigent, young people in our country.
This is but one reason that our economy continues to be essentially reliant on foreign direct investment. One can also count the ever expanding "brain drain" that affects our nation. South Africans all over the world are finding success and entrepreneurial support for their ideas in other markets.
Investing in educated, intelligent young (student) entrepreneurs will have a long lasting effect on the state of the economy going forward:
- minimising graduate unemployment
- minimising skills exodus to foreign nations
- re-igniting entrepreneurship
- creating opportunities in industries with skills shortages
- building wealth and extending savings amongst citizens
- creating role models for the youth (thus a better outlook on success and education)
As mentioned earlier, I agree to the majority of the points made by Mr Rupert, I disagree as far as seeing solutions through the eyes of government, politics and foreign policy.
- creating a globally competative economy
This is but one reason that our economy continues to be essentially reliant on foreign direct investment. One can also count the ever expanding "brain drain" that affects our nation. South Africans all over the world are finding success and entrepreneurial support for their ideas in other markets.
Investing in educated, intelligent young (student) entrepreneurs will have a long lasting effect on the state of the economy going forward:
- minimising graduate unemployment
- minimising skills exodus to foreign nations
- re-igniting entrepreneurship
- creating opportunities in industries with skills shortages
- building wealth and extending savings amongst citizens
- creating role models for the youth (thus a better outlook on success and education)
As mentioned earlier, I agree to the majority of the points made by Mr Rupert, I disagree as far as seeing solutions through the eyes of government, politics and foreign policy.
- creating a globally competative economy
Article by Anton Rupert
This is an article by Anton Rupert (Chairman: Remgro) as it appeared in The Times newspaper on the 29 October 2008:
WE ALL HAVE A JOB TO DO TO MAKE SOUTH AFRICA WORK
Respect for the rule of law, food security and crime reduction are paramount.
Until about 150 years ago, standards of living were roughly the same all over the world. It didn’t really matter whether you lived in New York, London, Paris, Mexico City, Johannesburg, Cairo, Nairobi, Beijing, Tokyo or Manila — the standard of living was roughly the same.
In the past century, however, the standard of living in various countries has changed dramatically so that today we have developed nations and undeveloped nations.
Africa has gone backwards. It’s got nothing to do with us being African or black — forget this old racist line. The truth seems to be found in the choices made by societies as to the economic and social political systems under which they choose to live.
Winning nations have sound economic policies which encourage open-market systems and socio- political policies that include democracy, free speech, honesty and transparency in government actions and a strict adherence to, and respect for, the rule of law. In this regard it is important to note that free-market economics is a precondition to democracy: there are no democracies that do not have free-market economies.
Conversely, there are still free- market systems that are not true democracies. The Chinese have totally open market policies but they do not have a democracy. They understand that democracy will follow.
It’s clear that the majority of sub- Saharan nations have made the wrong choices. So have we, for many centuries, and the results speak for themselves.
However, since the end of apartheid, we’ve had a miraculously peaceful transition to a democracy. We’ve further experienced successes such as the remarkable improvement at the Revenue Service, the turnaround at the national Treasury and the excellent management of the currency by the governor of the Reserve Bank and his staff. Our economic policies have generally been sound.
I am a proponent for the abolition of exchange controls but I must agree with finance minister Trevor Manuel that we were saved by foreign exchange controls. Certainly some of my banker friends and fund managers would also have been seduced by the higher yields available in the sub-prime and other markets.
So for once, thank God for foreign exchange controls.
Our labour markets have not been as flexible as those of our competitors and this will become an issue.
We have a democracy but some of our fellow South Africans continuously threaten to resort to violence if they do not get their way. Freedom of speech is guaranteed under the constitution but any criticism of government policy is viewed as counter revolutionary, racist and is stifled by a hypersensitive leadership.
Honesty and transparency in government have been sadly lacking, very sadly. The perception is that corruption is not deliberately and efficiently combated.
The law of unintended consequences has also been at work in a number of areas.
Black economic empowerment is a good idea. In South Africa, there has been a real shift of economic power towards black South Africans and that is continuing apace. Too often, however, empowerment has resulted in the enrichment of the few rather than the many, leaving behind a vast army of uneducated unemployed.
This can only be addressed by a far more effective nationwide programme of skills training. There are no unemployed carpenters, stonemasons, electricians or plumbers in South Africa, or anywhere else for that matter.
The apprentice system needs to be reinstated and the basic educational system orientated towards economically useful skills. The Sectoral Education and Training Authorities are totally mismanaged and simply do not work. Anybody who has ever asked for a grant can vouch for this.
South Africa can only succeed economically and politically on the basis of a genuine partnership between black, white and brown, and not on the basis of white privilege or black advancement at the expense of any form of competence.
We all want employment equity to work. It’s not only the right thing and the moral thing, it’s also the smart thing. Between 1994 and 2007 the numbers of black graduates has increased dramatically. I think by 2008 well in excess of 60% of all graduates will be black. The situation will resolve itself.
Now we’ve all seen and experienced the disasters of this policy of advancement at the expense of competence. Look at the institutions where experienced managers were “encouraged” to leave — Eskom, the Land Bank, South African Airways.
The senior leadership of various parastatals and parts of the civil service has been empowered to a point at which, in some cases, they can no longer deliver the basic services required of them. There has to be a successful mixture of old and new management for any of these enterprises to prosper.
Land reform is another area in which policy so far has resulted mainly in confusion as the plethora of unresolved — and sometimes completely unfounded — land claims has resulted in new black as well as white commercial farmers being reluctant to reinvest in their farms. There has to be an effective programme of land transfer, subject to proper compensation and support for those acquiring the land.
But the department administering this programme is notoriously incompetent. This is a dangerous thing to do on a continent and in a country that’s facing food self-sufficiency problems.
The agricultural minister has to realise that she is for all practical purposes “the minister of food security and self-sufficiency”. When this realisation finally dawns upon her, she will hopefully change her attitude towards the already beleaguered agricultural sector.
If we want our children to escape another cycle of hunger we need the farming sector to be safe, happy and profitable.
The head of the World Bank, Bob Zoellick, said recently that the most fundamental prerequisite for sustainable development is an effective rule of law. Yet this is exactly what the head of the ANC Youth League and some others have been challenging, spooking overseas investors and undermining years of work to improve South Africa’s sovereign rating. Without foreign capital we will not be able to provide a better future for our children, for the children of this country.
Luckily the (Youth League leader) was slapped down and the rule of law was defended by President Kgalema Motlanthe, who’ll hopefully continue to do so.
The new leadership seems to be genuinely concerned with stamping out violent crime. They will be judged by results — what additional resources are directed to policing and how effectively they’re utilised.
All the evidence from every other country is that crime can be rolled back on the basis of a more active and visible police patrolling and not by any other means. We have to remove these criminals from our society.
Also, in our violent society, it does not help when members of the executive committee of the ANC say “we shall kill”. And others keep on singing Umshini Wam. Who exactly do they want to shoot with these machine guns?
The worst feature of the Mbeki regime was probably the paranoid reaction to any form of criticism, even from people like Nelson Mandela, Bishop Desmond Tutu and Helen Suzman, who can scarcely be regarded as enemies of the state, or of not wanting South Africa to succeed.
Like their predecessors, the nationalists, the ANC seems to mix the concept of a political party, the government and the state.
We live in a democracy, we’re guaranteed freedom of speech. If some of us disagree with some policies, it’s our right to do so. I believe it’s even an obligation to do so. Who speaks for the children?
A major test for the new regime will therefore be whether it’s prepared to listen to other points of view and accept some criticism as intended to be constructive.
We have so many problems that if the Treasury, the Revenue Service and the Reserve Bank had not been managed so well, I actually think we would have been another failed state.
And a note of caution to the politicians, it’s not only the position of the minister of finance or governor that are important to the markets. The integrity and reputation of these individuals matter more.
Treasury, I hear, is blamed for withholding disbursements, leading to “lack of delivery”.
You cannot blame Treasury and SARS for the lack of delivery. I wouldn’t allow any of the funds to go, knowing the levels of incompetence and corruption that exist in so many of these departments.
We all share, all of us, regardless of colour and beliefs, the dream of a country where we can live safely, be well educated, have houses, jobs, water and electricity and access to proper health services. Only this will give us and our children hope.
I believe if we work together we can solve these problems. There are decidedly new things on the horizon in Africa.
Many African economies actually appear to have turned the corner and moved into far steadier and faster growth. For the first time in 30 years we’re growing in line with the rest of the world. The average growth for sub-Saharan Africa was about 5.4% in 2005 and 2006.
Some of this was due to luck, but a lot of this positive outcome was due to the adoption of some of the ways of winning nations.
For us to succeed we really have to study and adopt these ways.
We need open and fearless debates about the issues at hand, without risking or being sneered at as being racist or counter- revolutionaries.
I’ve kept my word to Mamphela Ramphele, who said that whites should start speaking out a little bit without having the fear of being branded racists.
We can easily reach consensus on our goals. The methods and the priorities will need more debating.
No poverty alleviation, provision of adequate housing and so on can ever be achieved without a healthy, growing, private sector.
Without growth, it’s not going to happen, it’s never happened anywhere else on Earth.
Governments do not, and should not, create jobs. Trade unions protect existing jobs and when too powerful and rigid, actually destroy jobs. It’s the private sector that has to create the wealth and tax base that will create jobs and prosperity.
I sincerely believe there is enough goodwill and talent in this wonderful country to solve these problems.
We’ve been fortunate in having three good presidents in a row — president FW de Klerk, president Nelson Mandela and president Thabo Mbeki. I feel particularly sad for the latter, whom I like and respect.
It was, however, becoming very clear that he was not well served by those close to him. He was never told the unpalatable truth and sadly lost touch with his constituents. Even “Big Business with Government” meetings were orchestrated “powerpoint exchanges”. It was not frank dialogue. And whenever any of us wanted to speak out our fellow businessmen made sure that we were kept quiet.
So even the business leaders were very reluctant to criticise, preferring the lobbying route.
To President Motlanthe, Jacob Zuma, Zwelinzima Vavi and even ANC Youth League leader Julius Malema — we all have similar goals.
We want to eradicate injustice, poverty, crime and hunger while improving health and education services. And, by the way, we are going to have to do it on our own because the rest of the world’s got its own problems.
The ANC does not have sufficient resources to run this country [on its own]. Look at the sub-prime quality of many politicians, local councillors and executives at either government or semi-state institutions.
Let us rather join hands and create the society that we all dream about. The alternative is far too ghastly to contemplate.
We’re in the same boat, and, if somebody shoots a hole in the boat, especially with a machine gun, we will all drown.
We must really act today to secure a better future for tomorrow.
Rupert is Richemont and Remgro chairman. This is an edited version of an address given at the University of Pretoria this month
WE ALL HAVE A JOB TO DO TO MAKE SOUTH AFRICA WORK
Respect for the rule of law, food security and crime reduction are paramount.
Until about 150 years ago, standards of living were roughly the same all over the world. It didn’t really matter whether you lived in New York, London, Paris, Mexico City, Johannesburg, Cairo, Nairobi, Beijing, Tokyo or Manila — the standard of living was roughly the same.
In the past century, however, the standard of living in various countries has changed dramatically so that today we have developed nations and undeveloped nations.
Africa has gone backwards. It’s got nothing to do with us being African or black — forget this old racist line. The truth seems to be found in the choices made by societies as to the economic and social political systems under which they choose to live.
Winning nations have sound economic policies which encourage open-market systems and socio- political policies that include democracy, free speech, honesty and transparency in government actions and a strict adherence to, and respect for, the rule of law. In this regard it is important to note that free-market economics is a precondition to democracy: there are no democracies that do not have free-market economies.
Conversely, there are still free- market systems that are not true democracies. The Chinese have totally open market policies but they do not have a democracy. They understand that democracy will follow.
It’s clear that the majority of sub- Saharan nations have made the wrong choices. So have we, for many centuries, and the results speak for themselves.
However, since the end of apartheid, we’ve had a miraculously peaceful transition to a democracy. We’ve further experienced successes such as the remarkable improvement at the Revenue Service, the turnaround at the national Treasury and the excellent management of the currency by the governor of the Reserve Bank and his staff. Our economic policies have generally been sound.
I am a proponent for the abolition of exchange controls but I must agree with finance minister Trevor Manuel that we were saved by foreign exchange controls. Certainly some of my banker friends and fund managers would also have been seduced by the higher yields available in the sub-prime and other markets.
So for once, thank God for foreign exchange controls.
Our labour markets have not been as flexible as those of our competitors and this will become an issue.
We have a democracy but some of our fellow South Africans continuously threaten to resort to violence if they do not get their way. Freedom of speech is guaranteed under the constitution but any criticism of government policy is viewed as counter revolutionary, racist and is stifled by a hypersensitive leadership.
Honesty and transparency in government have been sadly lacking, very sadly. The perception is that corruption is not deliberately and efficiently combated.
The law of unintended consequences has also been at work in a number of areas.
Black economic empowerment is a good idea. In South Africa, there has been a real shift of economic power towards black South Africans and that is continuing apace. Too often, however, empowerment has resulted in the enrichment of the few rather than the many, leaving behind a vast army of uneducated unemployed.
This can only be addressed by a far more effective nationwide programme of skills training. There are no unemployed carpenters, stonemasons, electricians or plumbers in South Africa, or anywhere else for that matter.
The apprentice system needs to be reinstated and the basic educational system orientated towards economically useful skills. The Sectoral Education and Training Authorities are totally mismanaged and simply do not work. Anybody who has ever asked for a grant can vouch for this.
South Africa can only succeed economically and politically on the basis of a genuine partnership between black, white and brown, and not on the basis of white privilege or black advancement at the expense of any form of competence.
We all want employment equity to work. It’s not only the right thing and the moral thing, it’s also the smart thing. Between 1994 and 2007 the numbers of black graduates has increased dramatically. I think by 2008 well in excess of 60% of all graduates will be black. The situation will resolve itself.
Now we’ve all seen and experienced the disasters of this policy of advancement at the expense of competence. Look at the institutions where experienced managers were “encouraged” to leave — Eskom, the Land Bank, South African Airways.
The senior leadership of various parastatals and parts of the civil service has been empowered to a point at which, in some cases, they can no longer deliver the basic services required of them. There has to be a successful mixture of old and new management for any of these enterprises to prosper.
Land reform is another area in which policy so far has resulted mainly in confusion as the plethora of unresolved — and sometimes completely unfounded — land claims has resulted in new black as well as white commercial farmers being reluctant to reinvest in their farms. There has to be an effective programme of land transfer, subject to proper compensation and support for those acquiring the land.
But the department administering this programme is notoriously incompetent. This is a dangerous thing to do on a continent and in a country that’s facing food self-sufficiency problems.
The agricultural minister has to realise that she is for all practical purposes “the minister of food security and self-sufficiency”. When this realisation finally dawns upon her, she will hopefully change her attitude towards the already beleaguered agricultural sector.
If we want our children to escape another cycle of hunger we need the farming sector to be safe, happy and profitable.
The head of the World Bank, Bob Zoellick, said recently that the most fundamental prerequisite for sustainable development is an effective rule of law. Yet this is exactly what the head of the ANC Youth League and some others have been challenging, spooking overseas investors and undermining years of work to improve South Africa’s sovereign rating. Without foreign capital we will not be able to provide a better future for our children, for the children of this country.
Luckily the (Youth League leader) was slapped down and the rule of law was defended by President Kgalema Motlanthe, who’ll hopefully continue to do so.
The new leadership seems to be genuinely concerned with stamping out violent crime. They will be judged by results — what additional resources are directed to policing and how effectively they’re utilised.
All the evidence from every other country is that crime can be rolled back on the basis of a more active and visible police patrolling and not by any other means. We have to remove these criminals from our society.
Also, in our violent society, it does not help when members of the executive committee of the ANC say “we shall kill”. And others keep on singing Umshini Wam. Who exactly do they want to shoot with these machine guns?
The worst feature of the Mbeki regime was probably the paranoid reaction to any form of criticism, even from people like Nelson Mandela, Bishop Desmond Tutu and Helen Suzman, who can scarcely be regarded as enemies of the state, or of not wanting South Africa to succeed.
Like their predecessors, the nationalists, the ANC seems to mix the concept of a political party, the government and the state.
We live in a democracy, we’re guaranteed freedom of speech. If some of us disagree with some policies, it’s our right to do so. I believe it’s even an obligation to do so. Who speaks for the children?
A major test for the new regime will therefore be whether it’s prepared to listen to other points of view and accept some criticism as intended to be constructive.
We have so many problems that if the Treasury, the Revenue Service and the Reserve Bank had not been managed so well, I actually think we would have been another failed state.
And a note of caution to the politicians, it’s not only the position of the minister of finance or governor that are important to the markets. The integrity and reputation of these individuals matter more.
Treasury, I hear, is blamed for withholding disbursements, leading to “lack of delivery”.
You cannot blame Treasury and SARS for the lack of delivery. I wouldn’t allow any of the funds to go, knowing the levels of incompetence and corruption that exist in so many of these departments.
We all share, all of us, regardless of colour and beliefs, the dream of a country where we can live safely, be well educated, have houses, jobs, water and electricity and access to proper health services. Only this will give us and our children hope.
I believe if we work together we can solve these problems. There are decidedly new things on the horizon in Africa.
Many African economies actually appear to have turned the corner and moved into far steadier and faster growth. For the first time in 30 years we’re growing in line with the rest of the world. The average growth for sub-Saharan Africa was about 5.4% in 2005 and 2006.
Some of this was due to luck, but a lot of this positive outcome was due to the adoption of some of the ways of winning nations.
For us to succeed we really have to study and adopt these ways.
We need open and fearless debates about the issues at hand, without risking or being sneered at as being racist or counter- revolutionaries.
I’ve kept my word to Mamphela Ramphele, who said that whites should start speaking out a little bit without having the fear of being branded racists.
We can easily reach consensus on our goals. The methods and the priorities will need more debating.
No poverty alleviation, provision of adequate housing and so on can ever be achieved without a healthy, growing, private sector.
Without growth, it’s not going to happen, it’s never happened anywhere else on Earth.
Governments do not, and should not, create jobs. Trade unions protect existing jobs and when too powerful and rigid, actually destroy jobs. It’s the private sector that has to create the wealth and tax base that will create jobs and prosperity.
I sincerely believe there is enough goodwill and talent in this wonderful country to solve these problems.
We’ve been fortunate in having three good presidents in a row — president FW de Klerk, president Nelson Mandela and president Thabo Mbeki. I feel particularly sad for the latter, whom I like and respect.
It was, however, becoming very clear that he was not well served by those close to him. He was never told the unpalatable truth and sadly lost touch with his constituents. Even “Big Business with Government” meetings were orchestrated “powerpoint exchanges”. It was not frank dialogue. And whenever any of us wanted to speak out our fellow businessmen made sure that we were kept quiet.
So even the business leaders were very reluctant to criticise, preferring the lobbying route.
To President Motlanthe, Jacob Zuma, Zwelinzima Vavi and even ANC Youth League leader Julius Malema — we all have similar goals.
We want to eradicate injustice, poverty, crime and hunger while improving health and education services. And, by the way, we are going to have to do it on our own because the rest of the world’s got its own problems.
The ANC does not have sufficient resources to run this country [on its own]. Look at the sub-prime quality of many politicians, local councillors and executives at either government or semi-state institutions.
Let us rather join hands and create the society that we all dream about. The alternative is far too ghastly to contemplate.
We’re in the same boat, and, if somebody shoots a hole in the boat, especially with a machine gun, we will all drown.
We must really act today to secure a better future for tomorrow.
Rupert is Richemont and Remgro chairman. This is an edited version of an address given at the University of Pretoria this month
Tuesday, November 4, 2008
8 Keys to successful business startup
1. Brainstorming the idea
2. Composition of a founding project team (min. 3 people max. 6 people)
3. Business Plan
4. Market penetration strategy
5. Professional support: legal and accounting
6. Mentorship
7. Sales...sales...sales...
8. Action plan...doing! action!
2. Composition of a founding project team (min. 3 people max. 6 people)
3. Business Plan
4. Market penetration strategy
5. Professional support: legal and accounting
6. Mentorship
7. Sales...sales...sales...
8. Action plan...doing! action!
Monday, October 20, 2008
Business Start Up
Business Registration:
For as little as R150, you can reserve a company name, register a CC or Pty, and register a trademark via the CIPRO website:
http://www.cipro.gov.za/
Cipro is part of the Department of Trade and Industry
Business Tax:
Through the South African Revenue service website, you can register for VAT etc. This is a free service and you can read up on all tax related information that could save you even more money:
http://www.sars.gov.za/
Business Marketing:
- Labour (staff, freelancers, legistlation and contracts):
- Office rentals: tshepo@pact.co.za
- Sales and sales leads: vuyisaq@gmail.com
Business Finance:
Institutions providing finances to SMMEs National :
Contractors Finance Corporation
Business Partners (formerly the SBDC)
Commercial Banks
DTI- Apex Fund, Centre for Small Business Promotion
UYF
Old Mutual Masisizane
Community Projects Funds - CPF-SP
Development Bank of South Africa
Industrial Development Corporation - (IDC)
International Tourism Marketing Assistance Scheme - (ITMAS)
Khula Credit Guarantee Scheme
Khula Micro Credit Outlets
Khula Retail Financial Intermediaries (RFIs)
Khula Thuso Mentorship Scheme
Land Bank
Sizanani Scheme
Ntsika
Zimele
Eastern Cape
Business Finance Promotion Agency (Khula RFI)
Community Entrepreneurial and Business Initiative
Eastern Cape Development Corporation
FNB Momentum Umsobomvu Progress Fund
Marang Financial Services
Free State
Free State Development Corporation
Remmogo Business Finance
Gauteng
African Contractors
Anglo Platinum Corporation
Artpac Lending Services
Basani Business Development Services
FNB Momentum UYF Progress Fund
Khethani Business Finance
Land Bank Marketing Department
http://www.brain.org.za/FINANCING/financingprovgaut.html%20-%20landbank#landbank
Marang Financial Services
Sankofa Financial Services
The Nations Trust
Tusk Construction Support
KZN
FINCA
FNB Momentum UYF Progress Fund
Ithala Development Finance Corporation
Khethani Business Finance (Khula RFI)
KwaZulu-Natal Development Foundation
Marang Financial Services
Limpopo
African Contractors
Anglo Platinum Corporation
Artpac Lending Services
Basani Business Development Services
FNB Momentum UYF Progress Fund
Khethani Business Finance
Land Bank Marketing Department
http://www.brain.org.za/FINANCING/financingprovgaut.html%20-%20landbank#landbank
Marang Financial Services
Sankofa Financial ServicesThe Nations TrustTusk Construction Support
Mpumalanga
Beehive Entrepreneurial Development Centre
Ekukhanyeni Finance Facility (Khula Micro Credit Outlet)
Emerging Entrepreneurs Finance Service Centre
Marang Financial Services Middleburg Micro Credit Outlet
Mpumalanga Economic Empowerment Corporation - (M.E.E.C)
Siyakhula Micro Business Finance (Khula Micro Credit Outlet)
Northern Cape
Remmogo Business Finance (Khula RFI)
Western Cape
FNB Momentum UYF Progress Fund
Khethani Business Finance (Khula RFI)
Landelike Ontwikkelings Maatskapy
Nations Trust (Khula RFI)
New Business Finance
Business Planning:
Business Mentorship:
For as little as R150, you can reserve a company name, register a CC or Pty, and register a trademark via the CIPRO website:
http://www.cipro.gov.za/
Cipro is part of the Department of Trade and Industry
Business Tax:
Through the South African Revenue service website, you can register for VAT etc. This is a free service and you can read up on all tax related information that could save you even more money:
http://www.sars.gov.za/
Business Marketing:
I find that marketing is a broad and varied discipline, here are some areas of marketing that any entrepreneur can focus on-
web strategy
blogging http://www.blogspot.com/
social networks
networking strategy
branding and advertising
Business Resources:
- Labour (staff, freelancers, legistlation and contracts):
- Office rentals: tshepo@pact.co.za
- Sales and sales leads: vuyisaq@gmail.com
Business Finance:
Institutions providing finances to SMMEs National :
Contractors Finance Corporation
Business Partners (formerly the SBDC)
Commercial Banks
DTI- Apex Fund, Centre for Small Business Promotion
UYF
Old Mutual Masisizane
Community Projects Funds - CPF-SP
Development Bank of South Africa
Industrial Development Corporation - (IDC)
International Tourism Marketing Assistance Scheme - (ITMAS)
Khula Credit Guarantee Scheme
Khula Micro Credit Outlets
Khula Retail Financial Intermediaries (RFIs)
Khula Thuso Mentorship Scheme
Land Bank
Sizanani Scheme
Ntsika
Zimele
Eastern Cape
Business Finance Promotion Agency (Khula RFI)
Community Entrepreneurial and Business Initiative
Eastern Cape Development Corporation
FNB Momentum Umsobomvu Progress Fund
Marang Financial Services
Free State
Free State Development Corporation
Remmogo Business Finance
Gauteng
African Contractors
Anglo Platinum Corporation
Artpac Lending Services
Basani Business Development Services
FNB Momentum UYF Progress Fund
Khethani Business Finance
Land Bank Marketing Department
http://www.brain.org.za/FINANCING/financingprovgaut.html%20-%20landbank#landbank
Marang Financial Services
Sankofa Financial Services
The Nations Trust
Tusk Construction Support
KZN
FINCA
FNB Momentum UYF Progress Fund
Ithala Development Finance Corporation
Khethani Business Finance (Khula RFI)
KwaZulu-Natal Development Foundation
Marang Financial Services
Limpopo
African Contractors
Anglo Platinum Corporation
Artpac Lending Services
Basani Business Development Services
FNB Momentum UYF Progress Fund
Khethani Business Finance
Land Bank Marketing Department
http://www.brain.org.za/FINANCING/financingprovgaut.html%20-%20landbank#landbank
Marang Financial Services
Sankofa Financial ServicesThe Nations TrustTusk Construction Support
Mpumalanga
Beehive Entrepreneurial Development Centre
Ekukhanyeni Finance Facility (Khula Micro Credit Outlet)
Emerging Entrepreneurs Finance Service Centre
Marang Financial Services Middleburg Micro Credit Outlet
Mpumalanga Economic Empowerment Corporation - (M.E.E.C)
Siyakhula Micro Business Finance (Khula Micro Credit Outlet)
Northern Cape
Remmogo Business Finance (Khula RFI)
Western Cape
FNB Momentum UYF Progress Fund
Khethani Business Finance (Khula RFI)
Landelike Ontwikkelings Maatskapy
Nations Trust (Khula RFI)
New Business Finance
Business Planning:
Business Mentorship:
Links
Entrepreneurship:
- http://www.entrepreneurship.co.za/
- http://www.sabusinesshub.co.za/
- http://www.entrepreneur.co.za/
- http://www.youthportal.co.za/
Entrepreneurship Media:
- http://www.entrepreneurmag.co.za/
- http://www.succeed.co.za/
- http://www.businessowner.co.za/
- http://www.cbn.co.za/
Business Networks:
- http://www.bizjam.co.za/ (local)
- http://www.mygenius.com/
- http://www.majesticway.net/
- http://www.businesswarriors.co.za/
- http://www.businessnetwork.co.za/
- http://www.bluecatalyst.co.za/
- http://www.linkedin.com/ (international)
- http://www.ysn.com/
Business Funds:
Anglo Zimele
Old Mutual Masisizane Business Finance:
- http://www.nbf.co.za/
- http://www.sasfin.co.za/
- http://www.khula.org.za/
- http://www.nefcorp.co.za/
- www.blue.co.za
- www.fundman.org.za
Business Resources:
- SA Business Toolkit: http://southafrica.smetoolkit.org/sa/en/
- http://www.smmeportal.com/
- http://www.biznetwork.co.za/
- www.itsmybusiness.co.za
- http://www.raizcorp.co.za/
- http://www.endeavor.co.za/
- http://www.entrepreneurship.co.za/
- http://www.platinumblack.co.za/
- http://www.enablis.org/
- http://www.bizassist.co.za/
Business Mentorship:
- http://www.comensa.org.za/
Business Opportunities (Tried & Tested):
- http://www.treoc.com/
Business Chambers (National):
- www.capetownaccelerate.co.za
- http://www.bcci.co.za/ - Bloemfontein Chamber of Commerce and Industry
- http://www.busa.org.za/ - Business Unity South Africa (represents all chambers in South Africa)
- http://www.capechamber.co.za/ - Cape Town Regional Chamber of Commerce and Industry
- http://www.chamberlink.co.za/ - Chamber of Commerce and Industry East Rand
- http://www.csmb.co.za/ - Chamber for Small Medium Business
- http://www.durbanchamber.co.za/- Durban Chamber of Commerce and Industry
- http://www.nafcoc.org.za/- National African Federated Chamber of Commerce and Industry
- http://www.nafcocjcci.co.za/ - Johannesburg Chamber of Commerce and Industry
- http://www.percci.co.za/ - Port Elizabeth Regional Chamber of Commerce and Industry
- http://www.sacob.co.za/- South African Chamber of Business
Franchising:
- http://www.fasa.org.za/
Franchise Opportunities (Tried & Tested):
- Call Centres: Acceler8
Direct Marketing Opportunities (Tried & Tested):
- Telecoms: VOX Telecom http://www.vox.co.za/
Venture Capital:
- http://www.vconline.co.za/
- http://www.hbd.com/
- http://www.savca.co.za/
- http://www.investmentnetwork.co.za/
Government Resources:
- http://www.dti.gov.za/
- http://www.uyf.org.za/
- http://www.seda.org.za/
- http://www.nefcorp.co.za/
- http://www.khula.org.za/
- http://www.proudlysa.co.za/
Funding Resources:
- http://www.businesspartners.co.za/
BEE Resources:
- http://www.beeonline.co.za/
- http://www.empowermentsa.co.za/
Trade and Investments:
- http://www.tradeinvestsa.com/ (local)
- www.tradepoint.net
- http://www.tourismroi.com/ (international)
Trade & Investment Marketing:
- http://www.wesgro.co.za/
http://www.astpm.co.za/ - Welded carbon steel tube and pipe manufacturers
http://www.fpef.co.za/ - Fresh Produce Exporters' Forum
http://www.naamsa.co.za/ - Automotive industry association
http://www.saceec.com/ -South African Capital Equipment Council
http://www.saflower.co.za/ - Flower export council
http://www.satiec.co.za/ - South African Textile Industry Export Council
http://www.sawa.co.za/ - South African Wire Association
http://www.southafricanboatbuilders.co.za/ - Boat builders association
http://www.wosa.co.za/ - Wine export council
Associations:
- http://www.nafcoc.org.za/
- http://www.bmf.co.za/
Business Courses (free or sponsored):
- http://www.ka-chingworld.com/
- SAB Kickstart
- FNB Enablis
- Nedbank Small Business Seminars
- Louis Group Business Academy
Business Education/ Programmes:
- WITS: Centre for Entrepreneurship
- UCT GSB: Centre for Innovation and Entrepreneurship http://www.gsb.uct.ac.za/cie
Business Networking (in Cape Town)
Business Network
Old Mutual
Social/ Charity Programmes:
Tsiba: http://www.tsiba.org.za/ (Local)
Ackerman Foundation:
SA Social Investment Exchange: http://www.sasix.co.za/
Greater Good SA: http://www.myggsa.co.za/
Global Social Investment Exchange: http://www.gsix.co.za/ (International)
Business Incubators/ Support Centres:
The Business Place
The Bandwidth Barn
http://www.csir.co.za/- Innovative business owners can get research funding and support.
http://www.godisa.net/ - Business incubator network
http://www.innovationhub.co.za/ - Tshwane-based business incubator
http://www.npi.co.za/ - Business owners looking to improve productivity can approach the NPI for funding and support.
http://www.sabs.co.za/- Fund and support standards systems for businesses.
http://www.seda.org.za/ - One-stop business advice and information portal for entrepreneurs.
http://www.softstart.co.za/ - Incubator for software entrepreneurs.
http://www.twib.co.za/ - Technology fund for business women.
http://www.uyf.org.za/ - The Umsobomvu Youth Fund - disperse vouchers which subsidise access to business support.
Online Social Networks:
- http://www.blueworld.co.za/ (local)
- http://www.facebook.com/ (international)
Online Social Networks (Groups to join):
- Youth Entrepreneurs in SA Unite
- Next Generation of Billionaires
Tenders:
http://www.dailytenders.co.za/ - Tenders aimed at the construction, civil and electrical engineering sector
http://www.databuild.co.za/ - Tender database aimed at the construction.
www.gov.za/tenders - See what government tenders are
http://www.tenderscan.co.za/ - Public tenders and assistance with tendering.
http://www.tradeworld.net/- Comprehensive procurement portal, allows you to hone in on particular regions and industry sectors.
Careers:
- http://www.careerplanet.co.za/
Driving Schools:
- http://www.entrepreneurship.co.za/
- http://www.sabusinesshub.co.za/
- http://www.entrepreneur.co.za/
- http://www.youthportal.co.za/
Entrepreneurship Media:
- http://www.entrepreneurmag.co.za/
- http://www.succeed.co.za/
- http://www.businessowner.co.za/
- http://www.cbn.co.za/
Business Networks:
- http://www.bizjam.co.za/ (local)
- http://www.mygenius.com/
- http://www.majesticway.net/
- http://www.businesswarriors.co.za/
- http://www.businessnetwork.co.za/
- http://www.bluecatalyst.co.za/
- http://www.linkedin.com/ (international)
- http://www.ysn.com/
Business Funds:
Anglo Zimele
Old Mutual Masisizane
- http://www.nbf.co.za/
- http://www.sasfin.co.za/
- http://www.khula.org.za/
- http://www.nefcorp.co.za/
- www.blue.co.za
- www.fundman.org.za
Business Resources:
- SA Business Toolkit: http://southafrica.smetoolkit.org/sa/en/
- http://www.smmeportal.com/
- http://www.biznetwork.co.za/
- www.itsmybusiness.co.za
- http://www.raizcorp.co.za/
- http://www.endeavor.co.za/
- http://www.entrepreneurship.co.za/
- http://www.platinumblack.co.za/
- http://www.enablis.org/
- http://www.bizassist.co.za/
Business Mentorship:
- http://www.comensa.org.za/
Business Opportunities (Tried & Tested):
- http://www.treoc.com/
Business Chambers (National):
- www.capetownaccelerate.co.za
- http://www.bcci.co.za/ - Bloemfontein Chamber of Commerce and Industry
- http://www.busa.org.za/ - Business Unity South Africa (represents all chambers in South Africa)
- http://www.capechamber.co.za/ - Cape Town Regional Chamber of Commerce and Industry
- http://www.chamberlink.co.za/ - Chamber of Commerce and Industry East Rand
- http://www.csmb.co.za/ - Chamber for Small Medium Business
- http://www.durbanchamber.co.za/- Durban Chamber of Commerce and Industry
- http://www.nafcoc.org.za/- National African Federated Chamber of Commerce and Industry
- http://www.nafcocjcci.co.za/ - Johannesburg Chamber of Commerce and Industry
- http://www.percci.co.za/ - Port Elizabeth Regional Chamber of Commerce and Industry
- http://www.sacob.co.za/- South African Chamber of Business
Franchising:
- http://www.fasa.org.za/
Franchise Opportunities (Tried & Tested):
- Call Centres: Acceler8
Direct Marketing Opportunities (Tried & Tested):
- Telecoms: VOX Telecom http://www.vox.co.za/
Venture Capital:
- http://www.vconline.co.za/
- http://www.hbd.com/
- http://www.savca.co.za/
- http://www.investmentnetwork.co.za/
Government Resources:
- http://www.dti.gov.za/
- http://www.uyf.org.za/
- http://www.seda.org.za/
- http://www.nefcorp.co.za/
- http://www.khula.org.za/
- http://www.proudlysa.co.za/
Funding Resources:
- http://www.businesspartners.co.za/
BEE Resources:
- http://www.beeonline.co.za/
- http://www.empowermentsa.co.za/
Trade and Investments:
- http://www.tradeinvestsa.com/ (local)
- www.tradepoint.net
- http://www.tourismroi.com/ (international)
Trade & Investment Marketing:
- http://www.wesgro.co.za/
http://www.astpm.co.za/ - Welded carbon steel tube and pipe manufacturers
http://www.fpef.co.za/ - Fresh Produce Exporters' Forum
http://www.naamsa.co.za/ - Automotive industry association
http://www.saceec.com/ -South African Capital Equipment Council
http://www.saflower.co.za/ - Flower export council
http://www.satiec.co.za/ - South African Textile Industry Export Council
http://www.sawa.co.za/ - South African Wire Association
http://www.southafricanboatbuilders.co.za/ - Boat builders association
http://www.wosa.co.za/ - Wine export council
Associations:
- http://www.nafcoc.org.za/
- http://www.bmf.co.za/
Business Courses (free or sponsored):
- http://www.ka-chingworld.com/
- SAB Kickstart
- FNB Enablis
- Nedbank Small Business Seminars
- Louis Group Business Academy
Business Education/ Programmes:
- WITS: Centre for Entrepreneurship
- UCT GSB: Centre for Innovation and Entrepreneurship http://www.gsb.uct.ac.za/cie
Business Networking (in Cape Town)
Business Network
Old Mutual
Social/ Charity Programmes:
Tsiba: http://www.tsiba.org.za/ (Local)
Ackerman Foundation:
SA Social Investment Exchange: http://www.sasix.co.za/
Greater Good SA: http://www.myggsa.co.za/
Global Social Investment Exchange: http://www.gsix.co.za/ (International)
Business Incubators/ Support Centres:
The Business Place
The Bandwidth Barn
http://www.csir.co.za/- Innovative business owners can get research funding and support.
http://www.godisa.net/ - Business incubator network
http://www.innovationhub.co.za/ - Tshwane-based business incubator
http://www.npi.co.za/ - Business owners looking to improve productivity can approach the NPI for funding and support.
http://www.sabs.co.za/- Fund and support standards systems for businesses.
http://www.seda.org.za/ - One-stop business advice and information portal for entrepreneurs.
http://www.softstart.co.za/ - Incubator for software entrepreneurs.
http://www.twib.co.za/ - Technology fund for business women.
http://www.uyf.org.za/ - The Umsobomvu Youth Fund - disperse vouchers which subsidise access to business support.
Online Social Networks:
- http://www.blueworld.co.za/ (local)
- http://www.facebook.com/ (international)
Online Social Networks (Groups to join):
- Youth Entrepreneurs in SA Unite
- Next Generation of Billionaires
Tenders:
http://www.dailytenders.co.za/ - Tenders aimed at the construction, civil and electrical engineering sector
http://www.databuild.co.za/ - Tender database aimed at the construction.
www.gov.za/tenders - See what government tenders are
http://www.tenderscan.co.za/ - Public tenders and assistance with tendering.
http://www.tradeworld.net/- Comprehensive procurement portal, allows you to hone in on particular regions and industry sectors.
Careers:
- http://www.careerplanet.co.za/
Driving Schools:
About Me
Vuyisa Qabaka is a 28 year old serial entrepreneur and has over 10 years of business experience. I have qualifications in a variety of fields from Business Management, Sales & Marketing, Property Sales, Property Development & Investment, Sectional Title Management, Customer Services, Food & Beverage Management and Wine. I am currently completing a bachelor of commerce specialising in Entrepreneurship through Unisa.
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