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EDITION 14
October 2014
HELPING YOU RUN A BETTER BUSINESSwww.SmallBusinessConnect.co.za
New rules
for temp
contracts
BY DANIEL BUGAN
SMALL businesses have won
a small reprieve from new
provisions in the Labour Relations
Amendment Act that will make
it obligatory for employers to
convert temporary employees into
permanent workers after three
consecutive months of service.
Businesses that have been
operating for less than two years
with under 50 employees and
employers with fewer than 10
employees, regardless of how
long they have been operating,
have been exempted from the
new provisions, contained in the
act which President Jacob Zuma
signed into law on 18 August.
The
amended
legislation
aims to protect contract and lowincome employees. However, it is
likely to have an impact on current
employment practices.
Ian
Macun,
director
of
collective bargaining at the
Department of Labour, says the act
will come into effect in November.
The provisions will make it
obligatory for employers to
provide all contract employees
that are employed in the business
for longer than three consecutive
months with equal benefits
and conditions as enjoyed by
permanently employed workers,
says Macun.
Jan Truter, director and
founder
of
www.labourwise.
co.za, however stresses that this
provision does not apply to those
firms with employees one takes
on who earn below the current
earnings threshold in the Basic
Condition of Employment which
is currently R205 433 per annum.
Furthermore, the act also
makes provision for a number
of justifiable reasons which an
employer can use to justify why
an employee cannot be presumed
to be permanent after three
months.
Among the 10 justifiable
reasons listed in the act are: the
temporary replacement of an
absent employee, project work
which runs for a stipulated period
and work for projects that are
dependent on funding for a limited
period.
However, Truter cautions
that employers will need to
stipulate these conditions in the
initial contract of employment or
they won’t be able to rely on the
justifiable reasons.
However, those who own
more than one business will not
benefit from the exemption. Those
business owners that divide up
their businesses to gain from the
exemption will also not benefit.
Further implications of the
act will also see Temporary
'Shearing' success for sheep farmer
The Sanlam/Landbouweekblad Agricultural Woman of the Year 2014 finalist Adele Rossouw, has big dreams.
She is the owner of sheap-shearing business, Il Paradiso. Read the full story on page 6 on how she has made
her dreams come true. ANSIE RABIE
Employment
Services
(TES)
operators or labour brokers be
held jointly and severally liable
for cases of unfair dismissal of
temporary workers who have been
in their employ for longer than
three months.
This means that the employee
can cite both the TES and the
business owner when it brings
New R1m incentive
threshold for filmmakers Page 2
www.facebook.com/SASBconnect
www.twitter.com/SASBconnect
CIPC 'revolutionises'
registration process
Page 3
Are there any African
angels to the rescue?
Page 5
info@SmallBusinessConnect.co.za
Small Business Connect is published for the Department of Trade and Industry by SA Business Owner and
Co cc of 10 Dreyer Street, Claremont, Cape Town and
printed by Paarl Media of 5 Lynx Roads, Paarden Island,
Cape Town. Use of information is at own risk. Neither
the dti nor the publisher may be held liable for any loss
or damage that may occur as a result thereof.
a dispute before the Labour
Court and the Commission for
Conciliation,
Mediation
and
Arbitration (CCMA).
Neren Rau, chief executive
officer of the South African
Chamber of Commerce and
Industry, says the chamber
applauds the fact that government
has exempted firms with less than
10 employees and new businesses
with less than 50 employees from
the provisions.
“But we do feel that
government needs to revisit the
exemption thresholds for small
businesses to accommodate small
labour-intensive businesses who
fall outside those thresholds.”
Continued on page 3
Soap-maker
wins top
overall spot
at Eskom
Business
Awards
Page 7
page 2 - October 2014
SMALL BUSINESS CONNECT
NEWS
Fund benefits youth biz
BY AMUKELANI CHAUKE
YOUTH-OWNED
businesses
stand to benefit to the tune of
R200 million a year in funding
from the Small Enterprise Finance
Agency (Sefa).
Already, 10 000 youthowned businesses have been
assisted with loan funding worth
R157 million over the last year.
The funds were disbursed as
part of the government’s Youth
Fund, established in partnership
with
the
National
Youth
Development Agency (NYDA)
and the Industrial Development
Corporation (IDC) in October last
year.
Jason
Trout's,
Kolourful
Empowerments, an 18 month-old
goods transport company based
in Durbanville, Cape Town, is one
of the 10 000 businesses to have
benefitted.
The business, owned by
four
university
graduates
with
equal
shareholding,
was
awarded
funding
of
R1.25 million to buy a truck to enable
it to fulfil the requirements of a
R2.2-million contract.
“The loan facility Sefa has
provided my company (with) has
allowed the business to grow to
the next level,” says Trout, the
company’s managing director.
Last year the business recorded
a turnover of R600 000, but upon
completion of the contract, Trout is
expecting the business’s turnover
to hit the R3-million mark.
Speaking to Small Business
Connect, Sefa chief executive
Thakhani Makhuvha said the
agency aims to disburse at least
R200 million in funding annually.
Makhuvha says he is still not
completely satisfied with the
Jason Trout received R1.25 million from the Youth Fund.
amount of funding that the agency
has disbursed so far and he would
like to see more young people
applying for funding.
Unlike commercial banks,
the agency is a developmental
institution that does not require
the same amount of collateral to
grant an applicant finance as a
bank.
He said those youth who still
had debt from study loans were
welcome to apply for funding
from Sefa, adding that the agency
never shut its doors on high-risk
customers
However, business owners
with
adverse
and
reckless
credit records would have their
applications carefully scrutinised.
“We can give you a maximum
of 12 months to start paying
the loan back. You don’t have to
have collateral, you just have to
demonstrate that your business
can project sustainability,” he
says.
He pointed out that applications
from those wanting to start up or
sustain a business in sectors like
manufacturing, mining and others
would be favoured as these were
in keeping with the government’s
vision of creating industrialists to
drive massive job creation.
Since the national launch of the
fund, Sefa, the NYDA and the IDC
have embarked on a road show
and have held regional launches of
the fund in the Eastern Cape, Free
State, Mpumalanga, Limpopo,
North West and Western Cape.
As part of its commitment
to the R2.7 billion Youth Fund,
Sefa has set aside R1.7 billion to
fund youth-owned entities over
the next five years with loans of
between R500 and R5 million.
The IDC will, over the same
period, contribute R1 billion
towards the fund for those seeking
loans of between R5 million and
R50 million.
Funding is available at prime
minus three percent to businesses
that plan to create jobs. The
agency – which was established
in 2012 following the merger of
South African Micro Apex Fund,
Khula Enterprise Finance and
the IDC’s small business lending
portfolio – continues to fund other
small business too, not just those
owned by youth.
Makhuvha says that while
R1.7 billion had been set aside
for youth entrepreneurs, a further
R6.5 billion will be available
over the next five years for those
business owners over 35 years old.
Overall, the agency has funded
over 40 000 small businesses over
the past year.
This amounts to a total of
R822-million in funding.
•Visit www.sefa.org.za for more
information.
New R1m threshold incentive for small black filmmakers
BY NABELAH FREDERICKS
BLACK filmmakers have been
given a boost with the launch
of a new incentive programme
by the Department of Trade and
Industry (DTI).
The
South
African
Emerging Filmmakers Incentive
programme,
launched
last
month, will assist those who plan
to make low-budget productions
up to R1 million in funding. The
incentive is essentially a rebate in
which those filmmakers can claim
back 50% of their expenditure
on the first R1 million to R6
million spent on a production,
and 25% on any amount spent
above the R6 million. Previously,
filmmakers who shot low-budget
productions were unable to apply
Minister Rob Davies
for assistance from the Television
Production and Co-Production
Incentive Programme because
they did not meet the criteria.
At the launch of the scheme,
the Minister of Trade and
Industry Rob Davies, said the
DTI had therefore reduced
the threshold and upped the
incentive in an effort to create
more
opportunities.
The
department’s
spokesperson
Mamosa Dikeledi says the scheme
is open to all black-owned
production companies that have
at least 65% black ownership
and 75% ownership in the
company applying to the scheme.
In order to qualify for the
incentive, production companies
will also need to have operated
for six months or longer and
should have already produced
at least one short film. The
department has budgeted to
spend R100 million over three
years through the scheme from
the 1 September this year to 31
March 2017, but adds that the
scheme will continue to operate
until such time as its funds are
exhausted. There is no cost
involved to apply. The following
are required:
•Production companies need to
register a separate company
with its own bank account and
this company should not have
existed before the application
is made.
•A valid BEE certificate at Level
3 for both the company making
the application and holding
company.
•A distribution or presale letter
from a broadcaster.
•Proof that the business has
raised at least 10% of their
production budget.
•Visit www.thedti.gov.za.
Five readers stand to win a free Open Maboneng one-month membership plus 10GB internet data.
Write a 300-word motivation on what kind of value you would bring to a co-working space and
email it to westleigh@theopen.co.za by 15 October.
OPINION
Co-space
way to go
Westleigh Wilkinson
AS entrepreneurs many of
us operate as free agents, in
networks, or as a part of small
companies.
Worldwide thousands of
people work from home and
meet at coffee bars or lunch
cafés to share and collaborate in
a shared space. In South Africa
this trend is catching on too.
But, these spaces all have
limitations: privacy, services
and equipment. The kind of
work entrepreneurs do does
not fit into a traditional work
environment – with individual
offices and cubicles.
We need flexible, open
and fluid space for working,
connecting,
learning
and
creating.
Why
not
then
share resources and ideas by
connecting with others who
share our curiosity and drive
and who can inspire and also
challenge us? There are now
more than 700 co-working
spaces worldwide. The most
successful co-working spaces
around the world are inspiring
spaces to work, meet, network,
collaborate, refuel, re-energise
and get stuff done.
These
spaces
offer
members all they need to work
productively and pleasantly.
The office, boardroom, coffee
bar and printer are shared
resources, designed to stimulate
collaboration and free thinking.
Through joining, members
immediately become a part
of a community where much
is possible, but nothing is
compulsory. Members meet
others, share ideas, learn from
each other, build new work
together, innovate together, and
have fun. The best things often
happen by accident, and these
co-working offices provide a
space for those accidents to
happen. This worldwide trend
towards co-working has slowly
but surely reached the shores
of South Africa. It will take time
for many to adapt to this.
Those of us lucky enough to
have moved into these spaces
already, are not only excited
about the work we do, but
where we work as well.
•Westleigh Wilkinson is the
managing director of Open
Collaborative Workspaces.
www.SmallBusinessConnect.co.za
NEWS
October 2014 - page 3
CIPC 'revolutionises' registration process
BY DANIEL BUGAN
IN a move termed “revolutionary”
by the Companies and Intellectual
Property Commission, business
owners can now register their
businesses online within three
days thanks to the commission’s
new website which was launched
last month.
This is significantly faster than
the present 25 working days it
takes the commission to complete
manual applications.
The CIPC entity handles
registration of businesses, patents,
designs, copyright and intellectual
property rights.
The commission was formed
following the merger of the Office
of Companies and Intellectual
Property Enforcement and the
Companies Intellectual Property
Registration Office (Cipro) in 2011.
CIPC commissioner Astrid
Ludin says the commission is
modernising at a fast pace.
She remains confident that
the
organisation’s
electronic
transacting processes will offer
more user-friendly service and
better guidance to clients.
“We’re also mindful of
business owners’ fear of electronic
transacting and are rolling out
self-service centres where an
Business owners can now register their businesses online after the launch of the CIPC's new website last month.
official from the CIPC can guide
a business owner through the
registration process, assist with
resetting a password or filing an
annual return,” says Ludin.
A pilot self-service centre
was opened in the Sunnypark
Shopping Centre in Pretoria in
January and a second centre will
be opened at the Carlton Centre in
Johannesburg this month which
hosts 13 self-service terminals.
The CIPC will also be upgrading
its Cape Town office to follow the
same model.
Ludin says a new addition to
the commission’s website is the
query resolution feature, which
will allow clients to log queries
online and receive a reference
number for a follow-up and
escalation.
Don't be 'too hasty to blame' the commission
BY DANIEL BUGAN
THE Companies and Intellectual
Property Commission (CIPC) has
cautioned against being too hasty
to blame the commission for late
registrations.
This after an intermediary
had to wait almost three months
to register his client’s business.
Modise Mamabolo – an
intermediary
who
registers
companies with the CIPC on
behalf of business owners for
a fee – says he registered his
client’s business online with the
commission on 22 June 2014.
“The business owner was
panicking
because
without
the certificate of registration
the business was not able to
operate legally, register with the
South African Revenue Services
(Sars) or open a business bank
account,” says Mamabolo
He then received a call from
Jane Mavusa, a team leader at
the commission.
“I explained my situation
and she promised to look into
the matter. On 12 September,
I checked my emails and it
showed that the company was
indeed registered. The certificate
had also been forwarded to my
inbox,” says Mamabolo.
However CIPC commissioner,
Astrid Ludin says there could be
a number of reasons why the
certificate was delayed.
“It depends on how the
transaction was lodged and
Once a query is logged, a CIPC
staff member will be allocated
to resolve the query and the
respective resolution activities and
turnaround time will be monitored
through the website’s log.
To ensure that the three-day
turnaround time for business
registrations is not compromised,
Ludin advises business owners
to register their companies with
the registration number as the
company name.
She explains that the process
of making a company name
reservation can often take longer
than three days as the business
owner has to submit four preferred
names (at a cost of R50 per four
names submitted).
If these are rejected, four more
need to be submitted, lengthening
the registration time.
“It might be better to effect
a name change at a later stage
once the name has been reserved.
In this way, the business can
continue with its trading and
operations,” says Ludin. She,
however, was frank that it may at
times take longer than three days
to register a business because of
the sheer volume of work that the
commission has to deal with.
“In those cases, clients should
follow the escalation process. But,
generally, transactions lodged
through our website are processed
faster,” says Ludin.
She says queries are generally
resolved within three days, but
that it all depends on the nature of
the query and the accuracy of the
details provided.
To ensure that a transaction or
query is resolved speedily, Ludin
advises business owners to:
•Submit applications correctly, in
line with the system and legal
requirements as set out on the
website under “notices”.
•Confirm the service delivery
status on the website before
lodging an enquiry on the
progress of a transaction.
•Not lodge an enquiry more than
once.
•Monitor the status of their
applications on CIPC’s additional
services website – www.cipc.
co.za/Additional Services.
New rules for temp contracts
Continued from page 1
CIPC commissioner Astrid Ludin
whether it was correctly lodged.
Sometimes,
applications
are rejected due to insufficient
funds or because supporting
documents are missing.
“Often
companies
are
registered, but because we do not
have the correct contact details
for the client, the certificate is
sent to the wrong person,” says
Ludin.
The certificate generation
process for online applications,
which was introduced last year,
is automated and the certificate
is
dispatched
electronically
once the application has been
processed.
Ludin says clients can also
download
their
certificates
themselves from the CIPC
website, but points out that many
are not aware of this option.
With regards to the use of
intermediaries, Ludin states
that it is the customer’s choice
whether to make use of an
intermediary’s services or not.
“A customer has to assess if
there is satisfactory value-add
provided by an intermediary and
also if such an intermediary is a
legitimate and credible provider
of such services.”
She says the CIPC charges
up to R175 for a business
registration and intermediaries
charge anything up to R3 500 to
complete a company registration.
•Visit
www.cipc.co.za
for
more information on business
registration.
He mentions the example
of a small farmer who employs
more than 50 employees, but is
still a small farmer.
Rau feels the amendments
will deny small businesses
outside the exemption thresholds
access to a flexible workforce
which they need as they are not
always able to constantly sustain
a permanent business activity.
“Not being able to exercise
human resources on a flexible
basis will make it more difficult
for small business to engage in
the labour market and may even
impede their growth.”
Natalie
Singer,
director
of corporate affairs at labour
recruitment industry body the
Federation of African Professional
Staffing Organisation (Apso),
says
the
organisation
is
disappointed that the final
regulations place restrictions on
temporary employment.
She says Apso has been an
integral part of the negotiations
on the LRA regulations and
fought to balance the need for
regulation with the realities
that today’s market requires
companies to have access to
flexibility. “The amendments
will lead to job losses and
businesses struggling to manage
the changes,” says Singer.
She points out that the
amendments
have
already
caused
confusion
as
an
expectation
of
permanent
employment after the threemonth period has been created.
“Many clients have chosen to
simply get rid of their temps, and
by association TES providers,”
says Singer.
However, she feels it is
not all doom and gloom and
says that Apso is encouraged
that
regulations,
including
the addition of a licensing
requirement for all private
employment agencies, including
those offering TES, should
ensure that clients make use
only of legitimate companies.
Carol
Diaz,
owner
of
employment agency Express
Employment Professionals South
Africa, says as the amendments
impact both TES operators
and business owners, they
will need to work together to
ensure that contracts, terms of
employment and disciplinary
processes and dismissals are
managed correctly.
page 4 - October 2014
NEWS
SMALL BUSINESS CONNECT
Top-ranked
biz school
offers free
training
BY VUYO MABANDLA
GAUTENG
business
owners
looking to grow their business
can now get free practical training
at one of the country’s leading
business schools.
This,
after
the
Gordon
Institute of Business Science’s
(Gibs) launched its Enterprise
Development Academy in August.
Delivering a keynote address
during the opening of the academy
– at the Pretoria University’s
Mamelodi campus – Small
Business Development Minister
Lindiwe Zulu said entrepreneurs
needed support to grow their
businesses.
“If we are to make an impact on
job creation, the common problems
faced by small businesses will
have to be addressed,” said Zulu.
The academy’s launch follows
the success of Gibs’ Goldman
Sachs 10 000 Women Certificate
Programme launched in 2008.
The programme aims to equip
women entrepreneurs to build
sustainable businesses.
In May the UK’s Financial Times
– a global benchmark for business
education providers - ranked
Gibs as the top South African and
African business school.
Enterprise
Development
Academy
managing
director
Yogavelli Nambiar says the
academy’s training programme
aims to provide business owners
with the skills needed to grow
their businesses and create more
jobs. She says many business
owners struggle to grow their
businesses because they lack
practical business knowledge and
information.
The academy will address this
through custom-made training,
which is made up of workshops
Minister of Small Business Development Lindiwe Zulu delivering the keynote address at the launch of the Gordon
Institute of Business Science's Enterprise Development Academy in August.
and boot camps for leadership
training.
Business owners in the
manufacturing, engineering as
well as agro-processing sectors
can now sign up for its different
training workshops.
Through partnerships with
large companies, the academy
will provide practical business
training, coaching and mentorship
for periods ranging from three to
12 months.
Gibs staff will also assist
with classroom training on
business planning, marketing and
commercial skills development at
the university’s Mamelodi campus.
On being considered for a
scholarship, micro enterprise
owners must have been running a
business for more than one year on
a fulltime basis and be generating
sales of at least R300 a day.
Established small business
owners who wish to apply must
be based in Gauteng and have a
turnover of at least R300 000 each
year.
Nambiar says each business
owner must demonstrate that they
have the potential to grow.
They must also be willing to
pay a commitment fee of R200
for micro enterprise owners and
R1 500 for established business
owners.
This fee is refunded after each
participant has completed the
training.
Applications can be submitted
online via Gibs’ website www.
gibs.co.za. The academy’s next
take-up of established businesses
will target women who run
construction firms.
•Visit www.gibs.co.za for more
information on how to apply.
New support centre
for fed-up owners in PE
BY MAX MATAVIRE
BUSINESS owners from Port
Elizabeth have been promised
more streamlined support with
by the Nelson Mandela Bay
municipality by the launch
this month of its Enterprise
Development Centre (EDC).
The centre will offer local
business owners training services
and help link them with financial
institutions.
Announcing the formation of
the new centre, Nelson Mandela
Bay Municipality’s economic
development executive director
Anele
Qaba,
acknowledged
the plight of many businesses
owners in the region who have
complained about the present
support structures.
It is also hoped that the new
service centre will help to relieve
the building tensions of a faction
of black business owners in the
area. Last month Small Business
Connect reported on allegations
made by black business owners
in the area who accused the local
municipality of not assisting in the
expansion of black businesses.
“We have to address this
matter urgently and this will be
achieved through setting up the
EDC. This centre will be a onestop shop for all small business
owners where they will be able
to access all the services they
require,” he said.
He added that at present
business owners are frustrated
with having to be referred to
various
organisations
when
seeking
more
information
about
business
support.
He said this, however, will be
remedied through a service
delivery network, with the
EDC co-ordinating all small
business support programmes
available
in
the
region.
Qaba said the plan is to have
financial institutions from both
the private and public sectors
interacting with the business
owners to provide the necessary
financial
and
management
support.
The launch of the EDC
was a welcome development
to business owners in Nelson
Mandela Bay who have been
fighting
for
recognition.
A number of black business
owners who were previously
members of the local chapter of
the National African Federated
Chamber of Commerce (Nafcoc)
have now formed a business
chamber called the Black Business
Forum (BBF).
“Nafcoc is too weak, it’s a
toothless dog. We have decided to
break away from Nafcoc to form
our own business chamber which
will represent the interest of
black small businesses,” says BBF
interim president Peter Mhleli.
He says Nafcoc is not “radical”
enough and adds that it is why
businesses have been disrupting
construction projects in Nelson
Mandela
Bay
demanding
Peter Mhleli, interim president of the newly-formed Black Business Forum.
to
be
awarded
contracts.
“We want to play a role in the
economic mainstream of this
region,” says Mhleli.
Nafcoc’s Litemba Singaphi
wished the new organisation
well, while pointing out that
anyone was free to exercise
their democratic right to form
their own association. But he
denied that Nafcoc was a weak
organisation.
“We don’t agree with them
when they say Nafcoc is weak. At
Nafcoc we have a way of dealing
with issues. We don’t fight, but
negotiate,” he said.
The centre will offer the
following services:
•Franchising
and
startup
business support,
•Help with access to finance,
•Manufacturing advice,
•Help
with
government
incentives and programmes,
•Assistance
with
statutory
registrations, business plan
writing, completion of tender
documents,
•Advice on BEE strategies and
deal structuring, business
profiling,
turnaround
strategies,
•Export and import logistics
help, and
•Product development advice.
www.SmallBusinessConnect.co.za
NEWS
October 2014 - page 5
Are there any African
angels to the rescue?
BY STEPHEN TIMM
GETTING more high-net worth
individuals to get together to fund
startups is one important way that
a country can encourage more
businesses with good ideas to take
off. But, is this form of investment
– know as “angel investment” –
suitable for developing countries
in Africa?
Since the first such network
– a Band of Angels – was set up
in Silicon Valley in 1994, the idea
of angel investment grew quickly.
Today the US has more than 300
angel investment groups, and
Europe more than 350, while in
the last decade a number have
arisen in emerging economies too.
South Africa has only one
prominent angel group, Angel
Hub, which was formed in 2011.
However, in February this
year, after having made five
investments, it was converted
into a venture capital (VC) fund
and renamed AngelHub Ventures,
following the injection of capital
by former FNB executives Michael
Jordaan and Kevin Harris.
The conversion to a VC fund
may be indicative of the problems
that angel networks face.
AngelHub Ventures founder
Brett
Commaille
said
the
transformation to a VC fund is
proof that the startup space is
interesting enough to attract such
investment.
“The only reason you don’t
see more angel groups is because
of the lack of angel investors
who make frequent investments
and so are willing to commit
the significant time required to
keep a group operating,” he said.
In July, the South African Revenue
Service (Sars) revealed changes
to the VC tax incentive which
is hoped will stimulate more
investments by VC companies in
small businesses.
Commaille
said
the
introduction of tax incentives
was one reason why there were
more angel investors in developed
countries.
“When you change that
landscape through the right tax
incentives, the numbers grow
rapidly and you then naturally
have groups of investors forming.
Most importantly, a successful
group is usually organised and
driven by the angels themselves,”
he said. The government could
play an initial role and then exit.
In Malaysia the state’s venture
capital agency Cradle Fund helped
to set up an angel association –
the Malaysian Business Angel
Network – and funded it for two
years before exiting in April.
The association represents angel
groups and help train investors
and create awareness of angels.
In Chile, the government’s
Corfo agency began subsidising
the operation of angel groups,
paying for managers and operating
costs, and funding training.
While eight angels networks
in Chile were set up under the
programme between 2006 and
last year, the groups made just
$17.8 million in investments.
However in July last year Corfo
suspended its angel funding.
A recent combined US and
Chile study argued that while
Chile’s government had focused
on developing a risk capital
industry similar to that of the
US, it had failed because certain
preconditions were not in place to
counter Chile’s lack of experienced
entrepreneurs and shortage of
high-growth potential ideas.
Its small and rather closed
goods
market
also
limited
the chance of angels seeing a
successful financial exit.
Developing countries such
as in Africa, and including South
07907 Bizspark Collateral - A4 Advert_FINAL_Paths_nc.indd 1
Former FNB executive Michael Jordaan co-funded Angelhub Ventures.
Africa, therefore need policies that
are designed specifically for the
unique environment. Still many
question the need for the state to
back angel funds, which they liken
to helping rich people invest more
of their money. But, a 2012 report
by Jeffery Sohl indicates that
startups funded by angel investors
provided about 274 800 new jobs
in 2012, or about 4.1 jobs per
angel investment – not too bad.
South Africa, then, should look to
foster more business angels.
2013/09/13 4:19 PM
page 6 - October 2014
SUCCESS
SMALL BUSINESS CONNECT
Shearing her way to success
BY YOLANDE STANDER
TO say clients are usually
surprised to see a petite blonde
arrive in the shearing pen ready
to tackle the “annual clip” is an
understatement.
But, Adele Rossouw, the owner
of Mpumalanga sheep-shearing
business Il Paradiso usually
manages to turn her clients’
astonishment into respect when
they see how well she knows her
way around a flock of sheep.
Her skill with a pair of shears
and her pursuit for quality service
has turned her small Middelburg
sheep-shearing business into a
thriving hub.
Two years ago, Rossouw
started with a team of five
shearers clipping 50 sheep, but
these humble beginnings soon
became a distant memory.
By the end of last year, she and
her team – now 20 strong – had
122 000 sheep under their belt.
This growth has also brought
her several accolades – the
latest being named one of five
finalists in this year’s Sanlam/
Landbouweekblad
Agricultural
Woman Entrepreneur awards.
The competition, an annual
joint initiative between Sanlam
and Landbouweekblad, honours
businesswomen who not only run
successful businesses in farming
communities, but also do their bit
in uplifting these communities.
“The business is pretty simple.
A farmer phones me, I make an
appointment and then I bring my
shearing team to his farm and we
complete his annual shear for him.
We also offer them an option of
pressing the wool and marketing
it,” the 32-year-old former teacher
says about the day-to-day running
of her business.
She admits it was not easy
entering a traditionally maledominated industry and that most
of her new clients made use of her
services with some measure of
scepticism.
“Being a woman in this
industry was really tough in the
beginning and it didn’t help that
I am petite and blonde on top of
that.
The agricultural industry is run
by mostly men and it is difficult to
enter their world. I, however, kept
at it and started making a name
for myself – even when I had to
jump in and catch a few sheep
myself. Today the farmers realise
that I know what I’m doing.”
And, this mother of two really
does know all the tricks of the
trade. She grew up around her
father’s flocks on his farm in
Clarens, Free State.
“I literally grew up among the
sheep. As a baby, my father – who
was a big Merino farmer – took me
out with him in his bakkie when he
worked on the farm. When I woke
up, everyone dropped what they
were doing while my dad gave me
a bottle of milk. My love for sheep
Adele Rossouw, owner of sheap-shearing business Il Paradiso, with staff members Susara Vilakazi, Isak Moabi and Papi Ngcana.
was fostered by my father. He is
my teacher, my rock, my anchor.”
Not only has the business
grown substantially over the
past two years, Rossouw has also
received junior accreditation to
select the best breeding stock for
farmers including Dormers and
Dohne Merinos, both popular local
sheep breeds.
“And then of course the Sanlam/
Landbouweekblad competition.”
Although she did not take top
honours in the competition, which
was won by Ina Lessing from
Modimolle, who makes a series
of jams and preserves, Rossouw
labels the awards as an amazing
experience.
“It brought in new clients and
led to some great publicity.”
More than 100 000 sheep
a year is not enough for this
budding entrepreneur who wants
to expand her business nationally.
“At the moment we serve the
Middelburg area and surrounds,
but in the future I want to take
Il Paradiso to all corners of South
Africa. I want my team to be busy
all year round.”
Her message to young
upcoming
entrepreneurs
is
simple: “Don’t let anyone ever
tell you that you can’t. See your
dreams as a reality and go big."
Don't give up, says proud owner
BY NABELAH FREDERICKS
“DON’T give up. I’ll never give
up.”
These are the passionate
words Ambrose Magomarele lives
by. It’s also this kind of passion
that helped his business secure
a R5-million investment from
mining giant Anglo American
Platinum.
Magomarele is one of seven
members of the People’s First
Piggery co-operative situated in
Rustenburg in the North West.
Magomarele started his piggery
in 2006 with Petrus Lepota.
Following this the pair formed
the co-operative, which includes
their wives and three other
women in the surrounding area.
“We bought 15 low-bred pigs
from my brother-in-law and used
the old municipality office as our
premises,” says Magomarele.
However, the site was not ideal
for breeding pigs and the seven
struggled to get the co-operative
to take off, despite growing from
15 pigs to 60 in just two months.
“There was no money. We were
selling the pigs one at a time and
it took up to three months to sell
one big (one),” he recalls.
On top of this the seven were
selling the pigs for less than their
market price. As a result the cooperative was making a continued
loss. They were also feeding the
pigs leftover food and as the
number of pigs grew Magomarele
began to realise that they would
need more feed for the pigs.
“I had no money so I
approached the nearby Anglo
American mining hostels and was
given the go ahead to use their
leftover feed,” he recalls.
Word soon reached Anglo
American Platinum’s head office
in North West and on referral
from one of the managers at the
hostel, Magomarele received a
visit from staff at the mining
giant’s head office.
“They
(Anglo
American
Platinum) were so impressed
with my passion, that I received
funding and training,” he says.
Thanks to the training they
received Magomarele was able
to put structures in place to
help the co-operative to grow.
Today the co-operative no
Pictured above are co-operative members: Fridah Lepota, Gopolang Pele,
Christina Ngoako, Petrus Lepota, Nyanise Chiromo, Noriah Magomarele
and Ambrose Magomarele.
longer breeds pigs, but instead
operates as a growers’ unit
where Magomarele buys piglets
to fatten up before selling.
“I also get to lease land from
Anglo American. I only pay R50
per year. That’s the best bargain
in South Africa,” he says.
But, despite coming this far,
Magomarele says the co-operative
still has a long way to go. “We are
not making a lot of money yet.
We spend R67 000 on the feed
alone and I’ve just bought 150
piglets for R107 000,” he says.
He plans to expand the business
by turning to breeding again.
However, this time he plans to
breed a better quality pigs and
also build a facility where he can
manufacture his own feed for the
pigs.“We need about R6 million
in funding based on the business
plan that we’ve put together,” he
says. He places emphasis on the
word “yet” and remains confident
that he will find funding soon.
In the meantime, he is
investing every cent he can into
the business he proudly calls “the
best black-owned piggery in the
North West”.
www.SmallBusinessConnect.co.za
SUCCESS
October 2014 - page 7
Soap-maker scoops
top Eskom biz award
BY NABELAH FREDERICKS
WHAT started as a joke six years
ago for business owner Allie
Parker, has today grown into an
award-winning venture.
Speaking to Small Business
Connect shortly after being
crowned the overall winner at
the Eskom Business Investment
Competition awards, business
owner Allie Parker, the founder
and chief executive of Regal
Manufacturing, says he is still
“shocked and stunned” with his
new accolade.
The awards, which have
been running since 2009, form
part of the Eskom Development
Foundation’s enterprise development programme which aims to
acknowledge successful blackowned businesses with cash prizes
and training that can be used to
grow their business.
Parker
walked
away
R200 000 richer thanks to the
success of his beauty soap
manufacturing business.
“Six years ago I was
complaining to my wife about the
quality of soap and jokingly said
that I would make my own soap,”
says Parker.
And, that’s exactly what he
did.
He says he thought about it
and then started doing serious
research on how to manufacture
soap. This was no easy task for
Parker, a qualified chartered
accountant with no experience in
manufacturing anything.
“With no chemical background,
I approached universities and labs
in South Africa to do testing on
the soap. It is very difficult to get
assistance in this industry because
most of the ones who know what
is happening are the competition,”
he says.
He registered the business in
2008 and a year later he began
operating. Parker says it wasn’t too
difficult to put everything together
once he employed the chemical
engineers to develop the product.
But, he points out, that making
soap is not just about throwing a
few ingredients together.
“The most challenging aspect
was trying to find the right
formula,” he says.
In 2009, the product hit the
store shelves after Parker set up
meetings with store owners and
managed to get his products on
the shelf by selling the soap for
50% less than his competitors.
After little growth in the first
year, his business’s turnover grew
by 300% over the second year,
followed by 150% over the next
two years. In the last two years,
the turnover has grown about
40%.
“I am very happy with the
growth. I didn’t really know what
to expect, but I am very passionate
about my business,” says Parker.
Last year, he saw an
advertisement
in
a
local
newspaper
inviting
business
owners to enter the Eskom
Business Investment Competition.
He applied, but ended up a “very
disappointed” finalist. This year
he was hesitant to apply with
the disappointment of last year’s
awards still fresh in his mind.
However he applied at the last
minute in July and within two
weeks was notified that he was
again a finalist.
With last year’s result still fresh
in his mind, Parker did not get his
hopes up but feels he was better
prepared this year. Last month,
Parker flew up to Johannesburg
again where the awards were held
and was “shocked” when he was
named the overall winner. He plans
to buy new equipment to grow his
business’s production capacity
and employ five more people.
Haylene Liberty-Nel, CEO of Eskom Development Foundation, Allie Parker
of Regal Manufacturing and Chose Choeu, chairperson of the Eskom
Development Foundation.
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www.thebusinessplace.co.za
page 8 - October 2014
LABOUR
SMALL BUSINESS CONNECT
EE laws also affect small businesses now
BY JAN TRUTER
FOLLOWING the introduction
of the Employment Equity
Amendment Act on 1 August, the
Department of Labour is likely
to be very active in assessing
employers’ compliance in the
coming months.
The act, which is aimed at
expediting transformation in the
labour market so as to address
inequality, was signed by President
Jacob Zuma in January this year.
However, not only large
employers are affected – the
provisions of the act that do not
deal specifically with affirmative
action apply to all employers,
irrespective of their size.
The following are some of the
key amendments:
DISCRIMINATIORY GROUNDS
EXPANDED
The grounds for discrimination
are no longer limited to those
listed in section 6 of the act (race,
gender, sex, pregnancy, etc), but
also include discrimination “on
any other arbitrary ground”.
This change is consistent with
the terminology used in section
187(1)(f) of the Labour Relations
Act, 1995 (Act No. 66 of 1995),
that prohibits discriminatory
dismissals.
PSYCHOMETRIC TESTS
Previously, psychological tests
could be used on employees
(including prospective employees)
if they had been shown to be
scientifically valid and reliable,
could be applied fairly to all
employees and were not biased
against any employee or group.
Now, there is the additional
requirement
that
only
psychometric tests that have been
certified by the Health Professions
Council of South Africa, or another
body which is authorised to certify
such tests, may be used.
CCMA
Previously, the adjudication
of all unfair discrimination
claims fell within the exclusive
jurisdiction of the Labour Court.
Now, an employee would also
be able to refer the dispute
to the CCMA for arbitration if
the employee complains about
sexual harassment (as a form
of discrimination). Any other
discrimination claims by lowerpaid employees (those earning
less than the earnings threshold
prescribed under section 6(3) of the
Basic Conditions of Employment
Act, which is currently at R205
433 per year) may now be referred
to the CCMA for arbitration. In
the case discrimination claims by
higher earning employees, the
parties may consent to the referral
of a discrimination dispute to the
CCMA for arbitration.
However, the maximum award
that the CCMA can make in respect
of damages will be an amount
equal to the earnings threshold
All employers, including small business owners, are affected by the Employment Equity Amendment Act changes that came into effect on 1 August.
Jan Truter
referred to above.
A
party
affected
by
an arbitrator’s award in a
discrimination case will be entitled
to appeal to the Labour Court.
BURDEN OF PROOF
There are some changes
relating to the onus of proof in
discrimination claims. Where
an employee alleges one of the
listed discriminatory grounds
(race, gender, sex, etc), the onus
is on the employer to prove that
discrimination did not take place
as alleged, or is rational and not
unfair, or is otherwise justifiable.
In the case of an allegation of
unfair discrimination “based on
any other arbitrary ground” the
onus is on the employee.
WORK OF EQUAL VALUE
A newly introduced section
deals explicitly with unfair
discrimination by an employer in
respect of wages and other terms
and conditions of employment
of employees doing “the same
or similar work or work of equal
value”. A differentiation based on
a ground envisaged by the act will
amount to unfair discrimination
unless the employer can show
that differences in wages or other
conditions of employment are in
fact based on fair criteria such as
experience, skill, responsibility,
etc.
The Minister of Labour is
empowered to publish a code of
good practice dealing with criteria
and methodologies for assessing
work of equal value.
APARTHEID VICTIMS ONLY
The definition of “designated
groups” has been amended
to ensure that beneficiaries of
affirmative action are limited
to persons who were citizens of
South Africa before the democratic
era, or would have been entitled to
citizenship but for the policies of
apartheid, and their descendants.
As a result, persons who
are foreign nationals or who
have become citizens after
April 1994 may not be taken
into account for the purposes
of affirmative action targets.
EXCLUDED
In order to avoid confusion and
simplify the procedures relating
to affirmative action, reference is
only made to “occupational levels”
in the workforce. Reference to
“occupational categories”’ has
been removed.
THRESHOLD
The total annual turnover
thresholds set for employers in
various industries (in order to
be classified as a “designated
employers” for the purposes of
the affirmative action provisions
of the act), has been increased to
three times the current amount.
This means that several
employers that were obliged to
comply by virtue of their turnover
will no longer have to do so.
Employers that employ 50
or more employees will still
be regarded as “designated
employers”
irrespective
of
their turnover.
ANNUAL REPORTS
All designated employers,
including those with 150 and less
employees, now have to submit
their EE reports annually.
ENFORCEMENT
Enforcement
procedures
have been truncated to promote
more effective and efficient
enforcement.
For
example,
a
labour
inspector would be able to issue
a compliance order without
first having to obtain a written
undertaking from an employer.
The opportunity to object
to a compliance order has
been removed, but a decision
may still be challenged at an
appropriate juncture.
COMPLIANCE
The factors that may be taken
into account in determining
whether
an
employer
is
implementing employment equity
in compliance with the act have
been revised.
The minister has been
empowered to make regulations
dealing with the assessment of
compliance, including specifying
the circumstances under which
an employer’s compliance should
be assessed by reference to the
demographic profile of either the
national or regional economically
active population.
An employer may raise any
reasonable ground to justify
failure to comply with what has
been specified in terms of the act
or regulations.
INCREASED FINES
The maximum fines that may
be imposed for contraventions
of the act have been increased
threefold (in order to reflect the
change in the value of money
since 1998).
In addition, an employer’s
turnover could be taken into
account in determining the
maximum fine that may be
imposed for substantive failures to
comply with the affirmative action
provisions of the act.
•Visit www.labourwise.co.za for
more labour advice.
www.SmallBusinessConnect.co.za
STARTING OUT
October 2014 - page 9
Picture your biz
BY PAUL CRANKSHAW
REMEMBER the days when
cameras used rolls of lightsensitive film, and photographers
spent hours in a darkroom with
trays of chemicals to produce their
prints?
Well, if you are under the age of
30, you probably won’t remember
– but the good news is that the
digital age has made photography
easier to get into. You could even
make a business out of it.
The rise of the digital
camera has changed the face of
photography – opening the door
for anyone who has creative flair
and is not scared of computers.
Working with images these
days means grasping the power
of software, so there is a new
requirement for merging art and
technology if you want to become
a serious photographer.
To start a business as a
photographer, however, you need
more than technical skill; you need
to be business-savvy too, and here
are some pointers.
FOCUS ON A NICHE
As with any business, you
need a focus: who exactly do you
want to target with your service
or product? The market for
photography (the range of possible
customers) is wide and diverse, so
you need to choose a “niche” or
segment that you think you can
serve better than others.
For example, you could become
a specialist on weddings, or social
events such as anniversaries,
birthday parties and christenings.
Or, you might choose to target
families; parents with young
children or new babies are often
keen to have professional family
portraits taken.
You may take a more
glamourous route, photographing
aspiring models who want to
create a photo portfolio.
News photography is tough
to break into for a freelancer, but
can be an exciting avenue for the
adventurous spirit.
Magazines also need pictures
for different sections such as
food, travel, beverages and
beauty. Universities and schools
need to hire photographers to do
class photos, sports teams and
graduation ceremonies.
Choosing one of these “market
segments” as a focus does not
mean that you ignore the rest, but
it gives you a specialisation that
you should enjoy and on which
you can build a reputation.
WATCH THE COMPETITION
When you are deciding what
markets to target, remember to
consider the competition.
As a new business, you
must first take customers from
a competitor before you can
succeed.
So look for a segment that is
not too “over-traded” – that is,
where the demand for pictures is
not too saturated by the supply of
other photographers.
This often means offering
something that your competitors
don’t offer – perhaps some
convenience that makes life easier
for your customer.
You can do this by delivering
your photos to their door; posting
the photos on a website for them
so they can share them more
easily with friends and family;
or compiling a complimentary
photo book for them (when they
show it to others, your name gets
marketed for free).
CAN YOU DO IT?
Take some time to consider
whether you are personally up
to this challenge. Photography
is almost always project-based,
so you may have to work long,
unpredictable hours followed by
quiet periods with little work.
This means you need to be wellorganised and budget carefully to
ensure that your business survives
the ups and downs.
When it comes to dealing
with customers, you also need
good communication skills, and
Choose the right market segment to focus on.
of the camera. A good image
management system and being
well-organised is also useful.
•Visit www.cobwebinfo.co.za for
more articles by Paul Crankshaw.
an ability to translate original
ideas into quality images. People
skills are also important because
you need to make people feel
relaxed and comfortable in front
Shop with conviction and pride and remember to
check for the Proudly South African mark of quality
and “Label of Origin” to ensure your first choice is local.
Buying local means you help:
Be Proudly South African. Buy local to create jobs.
www.proudlysa.co.za
page 10 - October 2014
INCUBATION
SMALL BUSINESS CONNECT
'Prosperation' of
more than 1500
businesses
Recognised by the World Economic Forum as a
pioneer in the field of incubation and enterprise
development, Raizcorp has a vision to minimise
the high failure rate of small businesses. We
spoke to Kershni Maharaj, head of selection and
efficacy, on how the organisation is turning the
tables on this statistic using the "prosperation"
business model, a term coined by the
organisation in 2005.
What is the name of your
incubator and the meaning
behind it?
Even before the concept that
grew into Raizcorp was developed
by our chief executive officer, he
attended a networking session.
As he was signing the register
at the event, he realised that
the event was for entrepreneurs
already in business – and he was
unlikely to be let in if he only had
a business idea.
When the staff at the
registration desk pressed him
for his company’s name, he
took a chance and blurted out,
“Raizcorp!” Why that name? Our
CEO’s full name is Allon Raiz…
How would you describe your
focus?
Raizcorp
has
a
hightouch approach that focuses
on
developing
individual
entrepreneurs and providing
measurable impacts in terms of
business growth and job creation.
To do this, Raizcorp has developed
a uniquely effective model of
business incubation, which we call
prosperation.
Where are you based and from
which areas do you recruit
new incubatees?
With 130 staff members,
Raizcorp
operates
seven
prosperatorsin South Africa and
one in Angola. These prosperators
are located in Johannesburg,
Uitenhage, eMalahleni, Richards
Bay, Durban, Rustenburg, and
Cabinda, Angola. A number of
other prosperators in various
regions are in the pipeline for
rollout soon.
Expression of Interest (EoI). Once
this is completed and approved,
each entrepreneur undergoes
a
detailed
and
rigorously
documented
entrepreneurial
assessment and selection process.
How long do businesses stay
in your programmes?
From three months to three
years, depending on which
programme they join and whether
the entrepreneurs meet the
minimum standards to progress.
What are the two key elements
of your support that sets you
apart from other incubators?
At the heart of the Raizcorp
offering lies Learning and Guiding.
Raizcorp Learning provides the
content required to increase
beneficiaries’
self-awareness
and their business knowledge.
However, because knowledge in
isolation won’t help entrepreneurs
to grow, Raizcorp Guiding gives
them the opportunity to reflect on
their new knowledge, as well as
relating it to their own individual
circumstances.
How long have you been
going?
14 years.
How many businesses have
been incubated with your
support?
Since its inception, Raizcorp
has worked with more than 1 500
companies in its high-touch, longterm prosperator programmes
and over 10 000 in other
entrepreneurial programmes.
Which businesses are best
suited to join?
Raizcorp offers a number of
programmes for entrepreneurs in
a wide range of sectors, such as
construction, mining, ICT, travel,
healthcare, and others, as well
offering more generic support
programmes that cater to all.
How many incubatees are
simultaneously in your
programmes?
Raizcorp’s eight prosperators
currently support in excess of
450 businesses in high-touch
prosperator
programmes,
as
well as serving as an annual
outreach base to over 3 000 other
entrepreneurs participating in
other programmes.
How do they apply?
The easiest way to apply is to
go to our website and complete our
online application form, called an
What are your fees?
Raizcorp’s programmes are
paid for in full by corporate
sponsors as part of their
Kershni Maharaj, head of selection and efficacy at Raizcorp Prosperator.
commitment to the Broad-Based
Black Economic Empowerment
Codes
of
Good
Practice.
Entrepreneurs themselves pay a
token commitment fee of between
R50 and R500 per month.
What commitments do
incubatees make before they
enter your programme? And
what commitment do you
make to them?
Progress is a function of
fulfilling the conditions of the
programme as well as the growth
of the beneficiary business. A
beneficiary may fulfil all the
conditions of Raizcorp Learning
and Guiding, BUT, unless the
business also shows evidence of
growth, they will not progress.
What are the average sales of
your incubatees over a year
in your programme? After two
years? After three years?
This is hard to say due to the
wide range of businesses, but 86%
of all compliant businesses in the
incubation programmes grow in
excess of 15% annualy and 95%
demonstrate growth.
Why are you involved in
supporting new businesses?
In his book, The E-Myth
Revisited, Michael Gerber quotes
a terrifying statistic: 96% of
all small businesses will fail
within ten years of start-up! The
implication – that only four small
businesses in 100 will survive
beyond 10 years – is Raizcorp’s
core reason for being. In other
words, Raizcorp’s reason for being
is to fundamentally change the
survival rate of entrepreneurs in
whose communities we work.
What is your biggest wish
for improving support to
entrepreneurs in South Africa?
Three things top off our wish
list: a reduction in the red tape
surrounding
small
business
ownership; a much stronger
focus on and promotion of
entrepreneurship education at
schools; and finally, a complete
overhaul of the stifling and
ineffective labour legislation that
is curtailing the growth of small
businesses.
•For a comprehensive list
of incubators, go to www.
SmallBusinessConnect.co.za/
lists
IT owner grows business
thanks to Raizcorp's help
DESPITE a lack of business
experience and driven by
passion, Azola Ngwekazi has
almost doubled her turnover
after
entering
Raizcorp’s
incubation programme last year.
Kickstarted by funding from
the South African Breweries
to open an internet cafe, she
says since joining Raizcorp’s
incubation programme she no
longer thinks small in business
and has a bigger vision. Her
business, Prompt IT, showed
exceptional growth since joining
Raizcorp's
programme
two
years ago.
How long have you
participated in the incubator
programme and when will
you exit?
This is my second year with
Raizcorp and if all goes well I will
be finishing in July next year.
How much did your turnover
and profitability grow after
joining?
My turnover grew by 158%
and the net profit by 115%.
What are the best benefits
you received from the
programme?
For me the most important
thing was no matter how small
the business is, it is important
to have systems in place. The
other thing was was goal setting.
You can not improve what you
can not measure.
Azola Ngwekazi
What would you suggest be
added or changed to make
the programme better?
The programme is good. I do
not think there is anything that
has to change.
Raizcorp equips us to go out
there and implement what we
have been taught to make it
work for our business. We are
not spoon feed.
The skills I am acquiring is
not something I think I would
have received at any other
institution. I feel confident that I
can service my clients and build
relationship with.
www.SmallBusinessConnect.co.za
SOCIAL ENTERPRISE
October 2014 - page 11
How do you meaure success?
BY NABELAH FREDERICKS
JOSH Cox was able to make a
key breakthrough in how he runs
his social enterprise Trade-Mark
when he realised that he was
measuring his outcomes based on
an incorrect assumption.
The realisation came to him
shortly after he was able to
secure R2.5 million in funding
from the Industrial Development
Corporation’s
(IDC)
Social
Enterprise Fund in February.
Trade-Mark
is
a
nonprofit organisation that assists
tradesmen from poor communities
and townships in growing their
businesses through business skills
training and marketing. Cox’s
organisation also links tradesmen
up with suburban homeowners
who require their services.
The idea to start Trade-Mark
came after Cox was approached by
a friend from Diepsloot township
in Johannesburg who was also
a tradesman and requested
assistance in the form of a
reference letter as well as help in
creating business cards. Following
his assistance, his friend was
able to secure contracts of up to
R40 000.
“It occurred to me that I could
identify other tradesmen with
similar needs and help them
in the same way,” says Cox.
He then returned to his hometown
of Cape Town in 2012, where he
identified the nearby community
Nomzamo, Somerset West as
an area where he could assist
tradesmen.
Initial funding of R20 000 from
LifeCo UnLtd South Africa in 2012
and R300 000 in funding from the
Douglas Murray Trust last year
helped him get started. A website
talking
social
enterprise
Join the online
discussion
Josh Cox runs Trade-Mark, a social enterprise that assists tradesmen in poor communities and townships.
CREDIT: LUKE DANIEL/RED BULL
soon followed and Trade-Mark was
registered as a non-profit trust.
“From then on we received
exposure on the radio and in local
newspapers and the business
really began to grow,” says Cox.
He received more requests
for assistance and Trade-Mark
applied to the IDC for funding and
was successful.
But he discovered he was
making a crucial error when he
attempted to measure the impact
that his organisation was having
on the lives of the tradesmen and
their families.
Says Cox: “We assumed that
a higher income would lead
to a better life for people in
poor communities. On further
investigation, we realised that
this was not necessarily the
case. “Without life skills training,
including
management
of
personal finances, some of our
tradesmen, did not experience an
improvement in their quality of
life, even though their earnings
had increased.”
He realised that he needed
a tool to measure whether his
organisation’s
services
were
improving the lives of the
tradesmen and their families.
In February he began looking
at organisations involved with
similar to see what these
organisations
were
doing.
It was also here where he first
heard about the Poverty Stop
Light tool that The Clothing Bank
had begun using to measure its
Define the postive outcomes
your enterprise achieves
BY MARCUS COETZEE
THE third principle in our "Think
like a Social Enterprise" series
is to be able to clearly define
the positive outcomes that your
enterprise achieves.
The owner of a social
enterprise knows why their
social enterprise exists. They
have a deep sense of purpose
and can describe the change
they want to create in the world.
This clarity of purpose helps
to focus their strategies and to
inspire others. This was discussed
in last month’s edition of Small
Business Connect.
Since a social enterprise is a
social business, it is concerned
with its financial performance
and strategic position.
However, since a social
enterprise has a “double bottom
line”, it is equally concerned with
its social performance, and this
is expressed in the form of key
social outcomes that need to be
achieved.
These
outcomes
are
achievable
and
measurable.
The outcomes act as social
performance targets in much
the same way as a traditional
business aims to capture a certain
market share or achieve a certain
profit margin.
The Logic Model Development
Guide by the Kellogg Foundation
(available for download at www.
wkkf.org) places social outcomes
in perspective. This model
describes how an enterprise uses
its inputs to conduct activities
which produce outputs, outcomes
and social impact. This is
described in the figure below.
Here is a description of the
key components of this model.
•Resources/inputs: These are
things such as time, money
and people that allow your
outcomes. The Poverty Stop Light
is a measuring tool used to develop
strategies to improve the lives of
low-income families. The tool uses
50 indicators to measure poverty.
“A survey is done with the
tradesman and their family and
for each indicator produces a
result of red (dire poverty), orange
(moderate poverty) or green
(above moderate poverty).”
Trade-Mark’s pilot programme
is a partnership with The Business
Place in Philippi where it provides
tradesmen with business and life
skills training as well as mentorship
support through a programme
called
Business
Builder.
Cox has applied the tool to
measure
the
programme,
with initial surveys having
SOCIAL entrepreneurs have
a new platform to learn about
successful social enterprises.
This follows the launch of
Talking Social Enterprise, an
online “talk network”, hosted
on the third Wednesday
evening of each month at 7.30
pm. It aims to stimulate debate
amongst social enterprise
entrepreneurs and is hosted on
the Google Hangouts platform.
•Sign
up
via
www.
TalkingSocialEnterprise.net.
been completed in August.
The figures he submitted to the
IDC as part of the business plan
to get funding, project that TradeMark will be financing itself within
five years.
Cox says Trade-Mark is now
reaching tradesmen beyond just
Somerset West and its surrounding
areas and he plans to expand to
Johannesburg soon.
The organisation currently has
18 tradesmen on its database.
Tradesmen who want to access
Trade-Mark’s services need to
have secured and completed at
least one contract and should
request a referral from a previous
client via Trade-Mark’s website.
•Visit www.trade-mark.org for
more information.
Resources/
Inputs
Activities
Outputs
Outcomes
Impact
1
2
3
4
5
YOUR PLANNED WORK
enterprise to do things.
•Activities: Things you do every
day
(attending
meetings,
sending emails, manufacturing
products).
•Outputs:
The
immediate
visible result of activities.
Outputs include the number
of wheelchairs manufactured,
workshops
facilitated
or
people completing a training
programme.
Outputs
demonstrate
how
busy
an enterprise has been.
Focusing on output increases
productivity.
•Outcomes: These describe
the changes in people or
organisations that occur as a
result of activities and outputs.
Outcomes may include the
increase in knowledge and skills
YOUR INTENDED RESULTS
of workshop participants or the
decreased rate of tuberculosis
in a community. Focusing on
outcomes enables an enterprise
to be innovative and measure
how well it is doing.
•Impact: The long-term effect
of these outcomes on a broader
community or system. A social
enterprise might seek to reduce
crime among youth or ensure
that everyone in a community
has access to health care. Social
impact takes time to achieve
and is influenced by forces such
as economics and community
dynamics that are outside of an
enterprise’s control.
Have
you
considered
measuring
your
social
performance? What are the social
outcomes that your enterprise
aims to achieve? These are
important questions, regardless
of what your enterprise does.
Asking these questions will
enable your enterprise to move
beyond the standard metrics
of financial performance. It
will add another dimension
to
how
you
do
things.
It will also enable you to be
more creative about how you
can meet your customers’
needs. Furthermore, it will help
you to focus your activities and
inspire others with what you
want to achieve. And it will help
to transform the way you do
business!
•Marcus Coetzee is a social
enterprise
strategist
and
heads up the African Social
Entrepreneurs Network.
page 12 - October 2014
CRAFTING YOUR BUSINESS
SMALL BUSINESS CONNECT
Quality helps quadruple turnover
BY NABELAH FREDERICKS
ANNA Richerby is on a mission
to change the stigma that “beads
are just beads” – by crafting and
selling jewellery made from highquality beads.
With a passion for beadwork
spanning more than 20 years,
her knowledge of beads has seen
her sales quadruple since she
registered her business in 2009.
Richerby, who moved to South
Africa from Britain in 2005,
originally planned to work for a
non-profit organisation, but her
hopes were dashed when she
realised she did not have the skills
required to work for one.
However, when she was
encouraged to start training
locals in beading, her students
quickly spotted the commercial
opportunity and tried to convince
her to use her skill to start a craft
business.
At the time, Richerby was
employed for someone who was
producing beadwork. The person
she was working for decided to
leave South Africa and return
to the US. It was then that the
opportunity presented itself to
Richerby to take over the work
from her employer and start
Beloved Beadwork. Now, five
years later, she runs a successful
beadwork business and employs
18 people. In August last year,
she picked up contracts worth
R460 000 during a trade mission to
the New York International Gift Fair.
The trade mission was funded
by the Department of Trade and
Anna Richerby of Beloved Beadwork wearing one of her designs.
Industry and organised by the
Cape Craft and Design Institute
(CCDI). The CCDI assists crafters
and designers with business
support, training and mentorship.
“I am not sure we would exist
without the CCDI. It has been so
helpful in assisting with support,”
says Richerby. She credits the
CCDI as well as the materials
she uses to develop her products
(which she sources from Japan)
as helping her to land the trade
mission contracts. She believes
that most crafters go wrong when
they settle with using cheap
beads and adds that there is a big
difference between the quality
of beads, aside from their price
difference. However, the price is
often the tell-tale factor which
should alert one to the quality of
the beads.
“Sourcing cheap beads is very
tempting when you first start your
craft business, but sourcing the
more expensive beads offers a
better quality in so many ways,”
says Richerby. For example, the
expensive beads – usually sourced
from countries such as Japan
and the Czech Republic – offer a
variety of colours and effect that
customers find more appealing
than cheaper beads.
“There are holes in the cheap
beads and bead weavers usually
have to take extra time in sorting
the beads and throwing away
broken, cheap beads. These cheap
beads are also sharp and often
cut the cotton used to make the
product,” says Richerby.
Using the right clasps is also
essential when developing goodquality beadwork. Silver, she says,
is always a good choice and using
an ugly clasp cheapens the product
considerably. She also believes
that having your own retail store in
addition to supplying wholesalers
can help provide the business with
a good income stream.
“Having your own retail store
allows you to get first-hand
feedback from clients when testing
a product, instead of producing
the product and then putting it
into a catalogue to wait on sales."
Speaking on how she is trying
to change people’s perception
about the quality of beads, she says
she remains steadfast because she
knows that she produces quality
products that are made from highend beads.
“It’s easy to just give in and
agree that beads are just beads,
but you need to continue to
develop a quality product.”
•Visit www.belovedbeadwork.
co.za for more information.
Use the materials to help give your product the edge
CHOOSING to use unusual
materials can give you the
competitive edge that will lead
customers to buy your product
instead of the competition's.
This is why you need to
consider your choice of material
very carefully. You may be
surprised with the results that
come with using material that is
more innovative and appealing to
your market.
There may even be more costeffective material available that
you have not considered using!
Here are some tips that will
help you in selecting the right
material:
•Buy quality materials so your
product sells for more. Goodquality materials mean that
your product can often sell for
more when it is completed.
Keep in mind who your target
audience is and how concerned
they are with quality and price.
•Keep researching. Don’t stop at
the first material that works for
your product. Consider others.
Also research the different ways
of obtaining your materials.
•Get close to the source of your
supply. The closer you are to
the source of the material, the
more likely it is that you will
have a greater range to choose
from.
•Use materials that are easy to
get. Don’t try to make a product
out of something that is hard
to get hold of. Many items are
not readily available, or only
available at a premium price,
particularly in rural areas.
Look at local stores for what
you will be able to get easily.
The internet is a good place to
source materials, if you know
exactly what you want.
•Use natural materials in
a
sustainable
way.
The
sustainability of the natural
environment – the plants, trees
and animals – must be the first
consideration if you want to
use natural materials in your
products. If you use natural
materials, such as leather,
make sure you use a credible
supplier and that the material
is properly treated so it will
last.
•Consider the impact of the
material at every stage of the
product’s journey. Materials
have different health, safety and
environmental considerations
at every stage of the product’s
journey. Assess the toxicity of
different materials, particularly
glues and paints, in the
production process. Make sure
the materials you use meet
health and safety standards,
especially with regard to food
and children.
BUY WISELY
After you started out, the
money to pay for your materials
should ideally come from your
sales.
Try not to borrow money
to buy materials, even when
you start out. Rather negotiate
terms with your suppliers so that
you can pay for your materials
through sales.
You have to build strong
relationships with your suppliers
so that you will always have the
material you need to deliver on
orders. Stick to their payment
terms and keep them informed
if you expect delays with your
payments.
You also need a realistic
understanding of lead-times
from suppliers so you know how
quickly you can deliver on an
order from your customers.
You should be able to predict
what materials you might need
and keep that in stock.
Many craft producers buy
what they need when they need
it, which cause delays in delivery.
Try to plan and predict
what materials you may need
so that you can buy bulk and
get discounts. It is best to get
prices from different places when
planning. Once you have at least
three options, work out the final
price on all three options.
When you compare prices,
you may find that one supplier
offers cheaper items. Split your
shopping list according to the
suppliers you buy from and make
sure that you get the best prices.
Keep an eye on other
suppliers’ prices and check that
your supplier's prices remain
competitive.
Turn craft
into your
income
HOW is it possible to make a
living from a craft? Find out by
following the nine-part Small
Business Connect series
“Crafting Your Business”.
PRODUCT IDEA
PROTOTYPING
& SAMPLING
MATERIALS
PRODUCTION
PACKAGING
& PACKING
MARKETING
SELLING
DISTRIBUTION
FEEDBACK
This is the third part of the
nine-series.
To get the full series go to
www.SmallBusinessConnect.
co.za/craft.
If you want to create a
successful craft business, you
need to understand that every
product, involves a journey.
In the previous edition, we
covered the second part of this
series, "Prototype & Sampling".
The third part of this series,
featured in this edition, focuses
on "Materials".
Read more about Anna
Richerby and how she started
Beloved Beadwork on this page.
The Crafting Your Business
series is based on the e-book,
"Growing
Your
Creative
Business - a guide for craft
producers, designers and
other
creatives"
which
was commissioned by the
Department of Arts and Culture
and developed in partnership
with the Cape Craft and Design
Institute (CCDI)
•Visit
www.ccdi.org.za
or
www.dac.gov.za
to
download a free copy of
the guide.
www.SmallBusinessConnect.co.za
REVIEW
October 2014 - page 13
From 'mental rut' to big rewards
CHRISTOFF
OOSTHUYSEN
reviews How To Win
Friends And Influence
People by Dale
Carnegie, published
in 2006 by Vermilion
(first published in
1937).
PERHAPS the best-known selfdevelopment book of all times
is "How To Win Friends And
Influence People", which has
already sold over 16 million copies
in most languages of the world;
and keeps on selling.
When Dale Carnegie first
developed a talk and educational
programmes on this topic he was
not expecting such a huge response.
The publishers printed only
5 000 copies of the first edition.
Today, the advice from
Carnegie on getting out of the
“mental rut” that prevents you
from developing yourself so that
you can live a more “rewarding
life”, is as relevant as it was when
he first wrote the book nearly 80
years ago.
And with this revised and
updated edition of 2006, the
reader is offered a book with
relevant references to the modern
context.
Why is it then that this book
became so immensely popular?
Perhaps the answer lies in the
powerful promise that it will help
you to shift your mindset so that
you can increase your popularity
and influence, so that you can
have more engaging relationships,
and so that you’ll be able to create
enthusiasm amongst your team
for supporting your dreams.
In short, the book offers you a
result where you are much better
at getting others to support your
objectives.
For business owners this is of
course a key element in creating
a successful business since you
need to recruit the right people
and keep them motivated as your
team members; and you need to
interact with prospective clients
and convince them that they
should do business with you.
As Carnegie himself comments
in the introductory chapter, the
book came into being as a result
of decades of offering educational
courses which were designed to
train people to “think on their feet
and express their ideas with more
clarity (but) they needed still more
training in the fine art of getting
along with people in everyday
business and social contacts…
(since) dealing with people is
probably the biggest problem
you face, especially if you are in
business”.
A good example is that of a
business owner who took part in
Carnegie’s programmes where
the same tips presented in the
book were introduced for him to
use in his business.
The business owner introduced
the principles and was amazed
by the results. Not only did the
business gain in profits, but the
owner also found that he gained
more happiness both at home and
at work.
While sales people can clearly
benefit from increased influence,
the book is applicable to all.
It offers practical ways
of getting along with others
and winning them over as
supporters. It is best to
read the book, where the
Carnegie principles are
explained very eloquently.
Great export opportunities
are offered by
The Department of Trade and Industry is mandated to promote South
African exports to the international market. the dti is actively involved
in funding International Trade missions to promote South African goods
and services.
Do you:
• Manufacture a product?
• Want to establish an international market?
• Have the manufacturing capacity to export?
• Comply with international standards and regulations?
can help you take your goods and services
to the international market.
Contact the dti Customer Contact Centre: 0861 843 384 or visit
Website: www.thedti.gov.za
towards full-scale industrialisation and inclusive growth
page 14 - October 2014
ADVERTISING FEATURE
SMALL BUSINESS CONNECT
Making business in the
Western Cape better together
CCDI launches new offices
BY VUYO MABANDLA
IF your craft and design enterprise
is in need of business support and
mentorship, then you’ll no longer
find it at 75 Harrington Street but at
37 Barrack Street, where the Cape
Craft and Design Institute (CCDI) is
now located.
And that’s not all.
The CCDI, which assists small
craft and design businesses from
across the Western Cape with
training, incubation and mentorship,
now also offers craft businesses
improved services.
The institute is a result of a
joint venture between the Western
Cape Department of Economic
Development and Tourism and
the Cape Peninsula University of
Technology.
CCDI
programme
director
Mariette Willams, says the institute
officially opened its Barrack Street
doors in August and that the
upgrade will meet the increase in the
demand, which has risen from 63
crafters and designers in 2001 when
the institute was founded, to 5 000
this year. The increase in demand
resulted in challenges such as an
ever-increasing lack of operating
space to work from.
“Entrepreneurs now have more
space to operate from, separate
rooms to hold meetings with clients
or consultations with CCDI staff as
well as training rooms because our
The Cape Craft and Design Institute move their office furniture to the organisation's new premises at 37 Barrack Street.
new home at Barrack Street has
a bigger space of 2 000 m2,” says
Williams.
The new facilities include the
latest crafting equipment and desk
lights at each workplace which
switch off automatically when a seat
is left unoccupied. Visitors can also
easily find their way around the new
office thanks to colour coordinated
areas that help to differentiatie
between the areas.
“The new offices have offered
much relief to business owners
who can now benefit more from our
state-of-the-art support structures,
like the product support space
initiative aimed at supporting product
development skills.
“This
programme
requires
plenty of operating space and our
new premises allow us to continue
offering extended support in product
prototyping to entrepreneurs who
can use the space for samplemaking,” says Williams.
Vienie McShane, started her
handbag-making business three
months ago and says although she’s
been using the institute’s facilities
for some time, she feels that the
new office could not have come at
a better time.
“The new facilities are up to
standard and it is a good work
environment for creative people. I
can now attend the new business
and practical skills workshops,” says
McShane. To qualify for assistance
an individual must provide the
CCDI with information such as the
location of their business, the type
of craft products they specialise in,
their ID number and the languages
that they can speak. An application
can be submitted via phone or fax
or by using the institute’s online
application centre. The CCDI caters
for students, independent craftmakers as well as people who take
up crafting as a hobby.
“We aim to be a central hub for
the incubation of craft and design
ideas, small business and academic
learning as well as product
prototyping as this is key to the
implementation of our vision,” says
Williams.
• Visit www.ccdi.org for more
information.
Entrepreneur flourishes
thanks to PERA award
BY VUYO MABANDLA
SINCE winning R50 000 in prize
money last year, Alexander Daniel
has not only managed to attract
overseas buyers for his rugs and
basket-making business, but he
has also been able to set up a
second shop as well as launch a
website.
Daniel’s business The Kraal
Gallery won the Social Enterprise
award in September last year
at the Western Cape Premier’s
Entrepreneurship
Recognition
Awards held in Cape Town.
The awards, a partnership
between the premier’s office and
the Department of Economic
Development and Tourism, are
aimed at identifying and supporting
local entrepreneurial talent.
Daniel started the Kraal Gallery
in 2011, just two years after
setting up the Genandendaal Hand
Weavers project by recruiting and
training unemployed women and
youth in Stellenbosch to create
hand-woven products.
The project is now run as a fulltime business trading as the Kraal
Gallery.
“I am forever grateful for the
premier’s awards recognition from
which we have seen an enormous
publicity spin-off,” says Daniel.
“What started off as a
community-based skills training
workshop that I first thought of
five years ago… has developed
into a budding business as we
successfully developed ways to
sell the products we made so as to
support the initiative,” he says.
After winning the award demand
by local and overseas buyers for
Kraal Gallery’s environmentallyfriendly, hand-woven rugs grew
enormously – propelling the
business even further.
In addition to supplying a USbased buyer with 88 hand-woven
rugs earlier this year, the Kraal
Gallery was also featured in Vogue
magazine, further helping to expose
the business to a much bigger
audience.
“The deals we acquired from
both local and US-based clients
have enabled me to set up a second
similar store at Sir Lowry’s Pass and
we have a fully-functional website
set up,” says Daniel.
He now employs between 50
to 60 women and youths in both
of his shops, a far cry from when
he started off with only a few semiskilled employees in 2009.
This year’s awards will take
place on 20 November and will see
local businesses honoured for their
contribution to creating employment
and growing the economy.
Ludwick Marishane of Headboy
Industries was named last year’s
Alexander Daniel (middle) of The Kraal Gallery who won the Social
Enterprise PERA award last year pictured here with his staff members.
top overall winner and walked
away with the main prize – the
opportunity to attend the Global
Entrepreneurship Conference.
The conference was held in
Moscow in March this year.
The prize was worth over
R100 000. The prize money for this
year’s awards totals R600 000 and
each winner will receive R90 000 to
invest in their business.
The deadline for entries closed
last month.
• Visit www.wcpremiersawards.
co.za and www.thekraalgallery.
com for more information.
ADVERTISING FEATURE
www.SmallBusinessConnect.co.za
October 2014 - page 15
Western Cape Feature
Free course provides opportunity
BY VUYO MABANDLA
THIRTY business owners will gain
free admission to an investment
skills training course worth close to
R8 000 later this month.
The training is a two-day
introduction course which forms
part of the Department of Economic
Development
and
Tourism’s
investment readiness programme.
It is facilitated by UCT’s Graduate
School of Business and venture
capital fund Knife Capital.
Applications for the course
opened in July and the first
workshops were held between
August and last month.
During each workshop 30
business owners will be provided
with training and resources on how
to seek out and manage financial
investments and portfolios as well
as better handle basic legal issues
affecting investment. Peter-Jon
Thebus, the department’s enterprise
development
strategist,
said
only those entrepreneurs whose
businesses are already operational
were welcome to participate in
the workshops.
The course usually goes for
One of the speakers at a previous investment course pictured above.
R7 750, but those who were
able to successfully apply via the
department’s online registration
centre by completing the mandatory
questionnaire, have qualified for free
enrolment.
“The end product of the
investment readiness programme is
to take the business and help it find
investment,” says Thebus.
He adds that the course will
further expose entrepreneurs to
business strategies, various styles
of pitching to potential investors,
while providing them with potential
links with other entrepreneurs and
academic business professionals.
Next month’s workshops will also
illustrate to business owners how to
seek their own funding or investment
opportunities through the efficient
use of up-to-date online planning
templates, investment management
skills and visual presentation.
To apply for the programme, an
applicant has to be based in the
Western Cape, should have an up
to date business plan, be willing to
offer an equity stake in their business
to investors should an investment
opportunity arise and must be at
the point where they are seeking a
financial investment.
To register, an applicant can
click on the registration link which
is available on the department’s
website.
See details below. Information
such as the name of the applicant’s
business, type of industry it operates
in, reasons for starting out as well
as a one-line business pitch are
required.
“The exact training dates and
venue are yet to be confirmed, but
following the course, a further ten
small businesses will be selected
and given an opportunity to interact
with potential investors,” says
Thebus.
This is followed by face to
face pitching sessions as well as
the chance to further receive free
mentoring and coaching by Knife
Capital at the UCT Graduate School
of Business.
• Visit www.westerncape.gov.za
for more information.
Calling all
biz owners
A ROADSHOW that aims to
provide business owners in the
Western Cape with information
relating to funding and business
support initiatives will kick off this
month.
Hosted by the Western Cape
Department
of
Economic
Development
and
Tourism
(DEDAT), it targets established
businesses in the manufacturing,
ICT, metals and engineering,
green economy and agroprocessing sectors that are
operational for more than 12
months. The dates are George
Civic Centre on the 20 October,
Beaufort West Thusong Centre
on 28 October, Caledon Town
Hall on 29 October, Louwville
Community Hall, Vredenburg
on 30 October, Paarl Town Hall
on 31 October, Sea Point Civic
Centre on 6 November and Paarl
Police Academy on 7 November.
Sessions will run from 10am to
2pm.
• Contact Shalane Campbell on
021 483 3409.
We can help you grow your business
The Enterprise Development Fund offers low cost loan financing to businesses in the Western Cape.
Is your business
• Operating in the Western Cape?
• Tax compliant?
• 50,1% (or more) black owned?
• Solvent and sustainable?
• Formally registered?
Do you have
• Yourmostrecentfinancialstatements/
management accounts?
Do you want to
• Expand and grow?
• Create jobs?
• Contribute to the Western Cape economy?
If you have answered YES to all of the questions, the Western Cape Government can assist.
ThroughourEnterpriseDevelopmentFund,weofferlowcostloanfinancing(belowprime)toqualifyingbusinesses*
requiringbetweenR250000andR10million.
*QualifyingbusinessesaredeterminedbytheBroad-BasedBlackEconomicEmpowermentAct.
Formoreinformationonhowtoapplyforthisopportunity,pleasecontactShariefDavidson0214839112or
Sharief.Davids@westerncape.gov.zaorPeter-JonThebuson0214839026orPeter-Jon.Thebus@westerncape.gov.za
Let’s grow your business and the economy, BETTER TOGETHER
page 16 - October 2014
SMALL BUSINESS CONNECT
OPPORTUNITY
Buffalo City to host first franchise expo
BY VUYO MABANDLA
EXCITEMENT is building among
Eastern Cape business owners
as East London’s municipality
prepares to position the region
as a “go-to” place for investors
at next month’s inaugural Buffalo
City Franchise Expo.
“Business owners are excited
about the expo because it is the
first of its kind in the region and
we already have 50 franchisees
exhibiting
at
the
event,”
says Xolelwa Majiza, Buffalo
City
Municipality’s
Business
Development
Unit’s
project
manager and expo organiser.
The two-day expo, organised
by the Buffalo City municipality,
aims to promote franchising
opportunities and expose existing
franchisees to potential investors.
The municipality has spent
about R500 000 on the event
which takes place at Abbortsford
Christian Centre in East London
on 13 and 14 November. About
300 visitors a day are expected at
the event.
“We are hoping to link
investors with both small and large
franchisees so as to help open new
doors for all attendees, while at
the same time exposing potential
franchisees
to
opportunities
available in the Eastern Cape,”
says Majiza.
The idea is to show business
owners that there are business
opportunities such as franchising
which minimises the high risk of
failure.
Manjiza says that despite
existing business infrastructure
and financial support programmes
available to business owners in
the region, many entrepreneurs
are not aware of the benefits of
franchising.
“Franchising is a new concept
for emerging business owners
Looking for clients?
Find them at
Where corporate buyers meet black suppliers.
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here. As a franchisee, you don’t
have the extra challenges other
small business owners face
because there is already a model
which provides you with training
and marketing support from the
franchisor,” says Majiza.
She points out that the city has
a number of shopping malls with
plenty of vacant space to let to any
franchise that chooses to set up
shop.
Franchisees exhibiting at the
event and those in attendance will
be able to network and receive
tips from experienced franchise
owners, suppliers and potential
customers.
Another aim is to develop and
market Buffalo City municipality
as a go-to place for investors.
She says the two-day event
will feature talks by successful
franchisees on a number of tried
and tested franchising solutions.
This will also give established
brands
and
investors
an
opportunity to assist small
businesses to develop into bigger
businesses.
A number of seminars will
held be on topics such as:
•How to build a successful
franchise brand.
•Best franchise practices in South
Africa.
•How to run a newly-bought
franchise business.
•Proven franchise strategies.
•How to transform your business
into a successful franchise.
Majiza says the municipality
is hoping to get organisations
such as the East London Business
Chamber and the Small Enterprise
Development Agency (Seda) as
well as companies to join the
initiative in order to promote
franchising to local business
owners through funding and
material support.
“We also hope to partner with
such organisations next year
when we plan to move the event
to the East London International
Convention Centre, where we are
hoping to host a bigger event,”
says Majiza.
She says there is still space
available for franchisees wanting
to exhibit at the event.
Although she was unable
to provide the exact size of the
exhibition space, she says there
is a fee of R1 500 for both days
for those wanting to exhibit, with
catering included.
•For information on the Buffalo
City Franchise Expo e-mail
xolelwama@buffalocity.co.za.
www.SmallBusinessConnect.co.za
MOTORING
October 2014 - page 17
Canopies protect your load
BY WALLACE DU PLESSIS
BAKKIES – southern African car
owners just can’t get enough of
them.
No surprises then that
the Toyota Hilux holds the
title as South Africa’s alltime
best
selling
vehicle.
In February, based on figures
released by the Department of
Trade and Industry, the Toyota
Hilux topped the list of the biggest
selling bakkies for that month.
But, as a business owner there
is the not-so-little problem of the
load being unprotected from the
weather and theft. However, this
is easily remedied – by getting
a canopy. There is quite a bit to
choose from, but to make the right
choice, you need to know more
about canopies.
Canopies
are
generally
available in four kinds of materials:
•Canvas – This remains an
ideal choice if you only need
a temporary cover from time
to time. It does not however
provide really good security.
•Stainless steel – Mild steel
metal canopies have lost their
popularity due to rust and weight
issues. In some cases 3CR12
stainless steel is now used in
both canopies and trailers. It is
very corrosion-resistant, strong
and light, but pricey.
•Aluminium canopies – These
are gaining in popularity. They
are extremely light and tough.
•Fibrelass – Most canopies are
made from fibreglass or glass
reinforced polyester. They are
cheaper than metal and almost
as strong and durable as the
former. They are slightly heavier
Canvas, stainless steel, fibreglass, aluminium - select the right canopy to suit your business needs to protect it from the weather and theft.
than aluminium products.
Generally, aluminium canopies
are the most durable and secure,
but also the most expensive.
Another feature to be aware of
before deciding which canopy will
suit your bakkie is the shape of
the canopy itself. Canopies come
in two basic shapes. Space saver
or full-door canopies often come
with a nose cone to help with
aerodynamics and once fitted stick
out above the roof of the cabin of
the bakkie. The other shape is as
high as a cabin roof and often has
a half door that swings up.
Comparing the cost of a van
versus a bakkie with a canopy, is
usually what a business owner
should look at when choosing from
most popular small commercial
vehicle range, the Nissan 200
series.
With the Nissan NP200
bakkie at R134 600, but with
air-conditioning and safety pack
it costs R152 200. The diesel
1.5 DCi is R193 400. The Nissan
NV200 van starts at R212 300
and comes with safety pack and
air-conditioner as standard. The
diesel van costs R240 900.
The
full
canopy
costs
R11 500 installed. The slightly
bigger canopy with nosecone is
R13 000. The half-height standard
canopy costs around R9 000, while
an executive low-line canopy is
around R11 000.
The differences between the
standard and executive models
include gas struts, roof rails,
lockable door, UV tinted windows
and interior light. The NP200 with
a full canopy is R205 000. A roof
height (low-line) canopy is priced
at R203 000. The difference
between a small van and a halfton bakkie with canopy ranges
from R30 000 to R35 000.
I have used Beekman fibreglass
shell canopies as an example
of pricing for two reasons – the
company has outlets across the
country and it offers good service.
The
fibreglass
canopy
provider is the only local canopy
manufacturer to achieve ISO9001
quality accreditation and to offer
a two-year warranty on the shell
and one year on the mechanical
parts.
Andy Cab offers a threeyear warranty on its shells.
The full height canopies have
better security due to its unitary
construction
without
side
windows and the large galvanised
double doors. However, for the
best security a van is still the best
option. Despite this, the R30 000
cost difference is quite hefty.
From taxi to van
to car in a beat
BY WALLACE DU PLESSIS
GENERAL Motor’s (GM) small,
multi-purpose vehicle manages
to be a little van, seven-seater
bus and car all in one. This, all in
a neat, versatile package which
you can change around in a beat.
The Orlando, as it is known,
indeed makes a great taxi and
van! Think of it as an upmarket
Avanza. It is slightly wider and
longer than the Avanza and feels
much more solid.
In South Africa, we only have
one model. But GM chose it well.
It is a 1.8 litre petrol manual with
standard, but good hard working
trim and a good specification
level.
The vehicle has 16 different
seating combinations. This means
you really can fit seven adults into
the Orlando or when in van mode
to suit your business’s needs, a
driver and a jumbo load.
Passengers will find that
the inside of the Orlando is
surprisingly roomy with more
than enough leg- and headroom.
However, headroom in the
third row is limited.
The load volume at the back is
between 100 litres and 800 litres
depending on how you fold the
seats. Fold down the rear seats and
you have a 1 499 litre load space.
The cabin feels like a car, with
neat finishes and a plethora of
map pockets, armrests with cupholder, and quite a few nooks and
crannies to keep things in.
Power windows for driver and
front passenger are standard as
is a good sound system, cruise
control and power-steering.
The interior is upmarket
compared to the cheaper Avanza
General Motors offers a neat and versatile package in the Chevrolet Orlando.
and is pleasantly finished
reminding one of the Cruze,
its sedan sibling. The Orlando
does not lack safety and security
systems. It comes with an antitheft alarm and immobiliser.
An
“electronic
stability
control” system provides traction
control to help avert slides, by
automatically applying corrective
braking to appropriate wheels to
help you quickly regain control. It
also has ABS and electronic brake
distribution with an additional
brake-assist system.
Driving the Orlando is easy
and pleasant. All round visibility
is surprisingly good and it handles
well in the context of an MPV.
Road-holding is above par for this
category.
GM claims 7.2 litres/100 km,
but work on 8 litres in general
and around 6 litres on the open
road, which is very acceptable.
The price starts at R287 000
and you get real value for money.
The Warranty & Roadside
Assistance package is 5 years/120
000 km. The service plan is for 3
years /60 000 km.
Also look at the Toyota Avanza
1.3 starting at R190 000, Suzuki
Ertiga 1.4 starting at around
R160 000, VW Caddy 1.6 from
R190 000 or the Nissan NV200
1.6 Combi from R254 800.
•Visit www.wheelswrite.com
for more motoring reviews.
page 18 - October 2014
DOING BUSINESS WITH...
SMALL BUSINESS CONNECT
From car boot to the top shelf
BY VUYO MABANDLA
SINCE
Vusi
Silora
started
supplying retail giant Massmart,
his business’s turnover has more
than quadrupled – from R90 000
to R400 000 in just two years.
“My increased earnings have
enabled me to build my very
own manufacturing centre and
I am now also a noteworthy
competitor to some of the leading
cosmetics businesses that have
been operating in South Africa for
years,” says Silora.
Silora is the owner of Bio Lotion
Cosmetics, which manufactures
skincare oils, soaps and lotions
using organic ingredients.
“I started Bio Lotion after I
sought the help of my aunt who
works in the pharmaceutical
industry to help me develop
my own skincare formula using
organic ingredients with my own
funding,” says Silora.
He now plans to open one
more manufacturing centre in
Johannesburg as well as two
others in Port Elizabeth and Cape
Town. Today he has eight full-time
employees. In a story that mirrors
that of entrepreneur and founder
of haircare products brand Black
Like Me Herman Mashaba, Silora
also started out selling from the
boot of his car – selling 5 000 of
his skincare products like this in
2010.
“Convincing people to buy
my product was difficult at first,
but those who bought it liked it
Vusi Silora (centre), owner of Bio Lotion Cosmetics, now makes R400 000 a month thanks to his contract with Massmart.
and they in turn recommend it to
others because I suddenly noticed
that I was getting new customers
almost every week,” says Silora.
This helped the business
grow and soon Silora managed to
include baby products to his stock.
Today he supplies about 50 000
skincare products to Massmart’s
80 Jumbo, Makro and Game Food
Corp stores.
“I started Bio Lotion after I
sought the help of my aunt who
works in the pharmaceutical
industry to help me develop
my own skincare formula using
organic ingredients with my own
funding,” says Silora.
The idea came to Silora after he
noticed that there were not many
black-owned skincare producers
in the country.
With the help of his pharmacist
aunt and the little money he had,
Silora says he was soon able to
plan and develop his own range of
skincare oils and creams which he
bottled and labelled on his own.
Soon after setting up shop
in the boot of his car, Bio Lotion
Cosmetic’s
products
began
growing so popular that he
eventually started approaching
major retailers to have his
products put on their shelves.
Things took off when he met
Become a Massmart supplier
BY VUYO MABANDLA
SMALL-SCALE farmers looking for
a boost can get up to R1 million in
finance if they supply Massmart,
as part of the company’s supplier
development
programme.
Sheryl-Lee Singh, Massmart’s
supplier development manager,
says the company’s
Ezemvelo
Direct
Farm
programme, which forms part of
Massmart's supplier development
programme, specifically targets
small farming businesses in
Gauteng, KwaZulu-Natal, Eastern
Cape, Limpopo and Mpumalanga.
The programme, which Massmart
launched in August 2012, forms
part of a 2011 decision taken by
competition authorities when
Wallmart bought into local
retailer.
Singh says Massmart regularly
spends millions of rands sourcing
fruit and vegetables, packaged
goods, clothing and building
supplies from local farmers,
manufacturers and construction
businesses.
She adds that Massmart’s
R242 million annual procurement
budget enables the retailer to
Sheryl-Lee Singh
procure from existing as well as
potential suppliers, while helping
to fund small businesses that
are enrolled in the Ezemvelo
programme.
Support for small businesses
under the programme includes
access to fruit and vegetable
seeds, ploughing equipment and
training on sustainable farming.
Singh says there is more than
one way for business owners to
apply to become a supplier to
Massmart’s 27 Jumbo, 19 Makro
and 40 Game Food Corp stores
across the country.
Potential suppliers can choose
to register on the retailer’s
national procurement database
as a supplier or they can contact
the company’s procurement
office directly. They can also
apply to join Massmart’s supplier
development programme.
The
programme
assists
successful
applicants
with
mentorship,
basic
business
training such as financial
management, packaging and food
safety training.
Once contact is made via the
website or telephone, potential
suppliers are provided with a
contact sheet which must be
completed and returned.
Applicants are required to
have their products accredited
by the South African Bureau
of Standards (SABS) and must
list key challenges they face as
well as the number of sales the
business makes each month.
To become a Massmart
supplier, a business must have
valid
company
registration
documents, the necessary tax
clearance certificates, financial
statements,
product
health
certification and a proven record
of good service before directly
contacting the retailer to submit
the information.
Massmart
will
contact
applicants
within
two
weeks
on
submission
of
the
necessary
documents.
The business owner is then
called in for an interview with
the procurement officer. This is
followed up by a meeting with
an in-store buyer who assesses
the product or service offered by
the supplier. Should the buyer be
satisfied with the goods or service
offered by the supplier, the buyer
then negotiates a price as well as
an agreement on the number of
goods to be delivered by the new
supplier at an appointed time
each month.
Once contracted as a supplier,
business owners can expect to
supply Massmart for up to a year.
However, this is subject to a three
month probation period.
Says Singh: “The mandatory
probation period is used by
Massmart’s buyers to check
whether or not a new supplier
can consistently supply quality,
health-certified
bulk
goods
while sticking to the required
timeframe for deliveries”.
one of Massmart’s Johannesburg
branch managers who told Silora
about the retailer’s interest in
buying
locally-manufactured
goods. He then visited Massmart’s
Johannesburg head office to find
out more about opportunities for
his business.
“My hope was to get them to
take me on as a supplier for some
of Massmart’s supermarkets that
operate as separate brands,” he
says.
Once at Massmart’s offices,
the businessman set up an
appointment with the national
procurement officer who then
called him in for an interview. This
all formed part of his assessment
process before he was accepted as
a supplier. Silora says this all took
place within one day.
During the meeting he was
asked to provide health and
safety certification documents for
his products, proof of business
registration and a guarantee that
the business would be able to
deliver the required 95% supply
on procured goods.
Because his oils and lotions
had already been tested through
a quality and safety tests via
skincare product testing company
Future Cosmetics Silora was
able to prove to Massmart’s
procurement officers and in-store
buyers that his products were safe
for consumers to use.
After another meeting an instore buyer, Bio Lotion Cosmetics
was eventually awarded an initial
three-month contract supplying
one store. This was soon extended
to a one-year agreement because
the product was selling well.
Now, three years later, Silora
says his product is still flying off
the shelves and he has his sights
set on creating over 100 new jobs
through his plans to build a new
manufacturing centre.
www.SmallBusinessConnect.co.za
DIRECTORY
October 2014 - page 19
Business Support
Service Directory
The Department of
Trade and Industry
(DTI)
Small Enterprise
Finance Agency
(Sefa)
Companies and
Intellectual Property
Commission (CIPC)
Small Enterprise
Development Agency
(Seda)
National Youth
Development Agency
(NYDA)
•
•
•
•
•
Implements most of government’s
business-related policies, including that of
small business promotion
• Industrial and export development through
for instance incentives and grants
• Development of small businesses through
various DTI agencies such as Seda (see
below in the directory)
• Direct
support to entrepreneurs
through incentive schemes and
trade programmes
• Grants for black-owned businesses as well
as those in manufacturing and exporting
0861 843 384 contactus@thedti.gov.za
www.thedti.gov.za
•
•
•
086 000 7332
helpline@sefa.co.za
www.sefa.org.za
Limpopo Economic
Development Agency
(Leda)
North West
Development
Corporation (NWDC)
•
•
•
•
•
•
•
•
•
•
Small businesses of the North West
Province
Startup funding for new businesses
General finance for the expansion of
existing businesses
Bridging finance
Business advice, mentorship and coaching
Must be registered as a sole proprietor,
close corporation, partnership or company
Must have valid tax clearance certificate,
business profile, business plan and security
in the form of a grant, title-deed, insurance
policy or investment suretyship
018 381 3663
•
www.leda.co.za
Royal Bafokeng
Enterprise Holdings
(RBEH)
•
•
•
The Business Place
(TBP)
•
•
•
•
•
Support to entrepreneurs through various
national centres
One-on-one
support
Business
opportunities, relevant business information
and resources
Refer clients to the best suited business
development service providers, government
resources and financial institutions
Free internet access for business research
Legal advice, micro-MBA practical
training, business-to-business networking
opportunities, workshops
Free use of the meeting and training rooms
Finance to small businesses within the
Limpopo province
A range of information sources such as
a quarterly newsletter, monthly information
sheets and occasional booklets
Business support and training services
Non-financial support services
015 633 4700
www.nwdc.co.za
•
Government’s primary small business
funding agency
Launched due to merger between
agencies such as Khula and Samaf
Direct lending products to small businesses
Wholesale lending products aimed
at intermediaries who have small
businesses clients
Community-based investment company
Strives to improve economic well-being by
investing in businesses that will generate
returns
RBEH teamed up with The Business
Place in Phokeng for small business
support services to startups, very small,
survivalist and micro businesses
www.bafokengholdings.com
National Empowerment
Fund (NEF)
•
•
•
•
•
011 833 0340
network@tbp.co.za
www.thebusinessplace.co.za
Funding of black-owned and empowered
businesses
Woman-owned and other targeted
business funding
Investor Education/NEF iMbizo
Post investment mentorship
Be older than 18 years, the business
must be economically viable and must
not be involved in illegal practices, tobacco
or gambling
011 305 8000
applications@nefcorp.co.za
Free State
Development
Corporation (FDC)
•
•
•
•
•
•
•
Official economic development, trade and
investment corporation for the Free State
Funding, business loans, equity and
investments
Training, coaching and mentoring
Partner support services
Assist with export-readiness and
development services
Premises at affordable rates
Incentives and special discounts for
BEE companies
www.nefcorp.co.za
Mpumalanga Economic
Growth Agency
(Mega)
•
051 400 0800
Supports qualifying businesses and
individuals from Mpumalanga, who’ve
been previously disadvantaged
Funds housing, agricultural de-velopment
and business growth
From R10 000 to R3 million
Valid South African identity document, be
between 18 and 65 years and access to
land or production facilities
lesley@fdc.co.za
013 752 2440
www.fdc.co.za
www.mega.gov.za
•
•
•
•
•
•
Provide accessible registration services
for businesses intellectual property and
practitioners
Maintain and disclose relevant information
regarding business entities, business
rescue practitioners, corporate conduct
and reputation, intellectual property rights
and indigenous cultural expression
Increases awareness and knowledge of
relevant laws
Help take the necessary steps to visibly,
effectively and efficiently monitor and
enforce compliance with the laws the CIPC
administer
Business
development support for
business owners
Training programmes for startups, cooperatives and franchisees
Sponsor between 60% and 90% of fees of
an approved service provider
Tender advice, networking and business
linkages opportunities
Technical support
Export readiness assessment for
business owners
Be 18 years or older, able to run the
business on a full-time basis and have a
valid South African Identify Document
086 100 2472
0860 103 703
Supports black South African youth
between 14 and 35 years old with support
and funding
Mentorship,
skills
training
and
entrepreneurial development
Loan funding
Health awareness programmes
Involvement in sport
Business must be economically viable
and cannot be involved in gambling,
tobacco, property development or any
illegal practices
Be 35 or younger and hold greater than
50% of the shares in the company and be
operationally involved in the business
info@cipc.co.za
info@seda.org.za 080 052 5252
www.cipc.co.za
www.seda.org.za
www.nyda.gov.za
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TBP helps owner land R2m travel contract
BY VUYO MABANDLA
NIKKI LALA’s travel business is
looking up after she was able to
land a R2-million contract thanks
to help from business support
organisation The Business Place
who helped her obtain R500 000
in funding from Anglo Zimele.
With the business plan that
The Business Place helped
Lala and her business partners
Nonceba Gabotlhalwe and Floris
Olivier develop, the three were
able to apply for the funding
support from Anglo Zimele.
After passing a two-month
long assessment process that
included face-to-face interviews,
the three were eventually
awarded R550 000 in funding.
Within weeks they were able
to employ six full-time staff and
a bookkeeper.
“At this point we were able
to continue with our marketing
and we also used the money
to buy a new office space in
Marshalltown, Johannesburg this
year,” she said.
The Business Place last
year also helped the three to
register their business and gave
them subsidised office space at
their Johannesburg pffices. The
latter formed part of a one year
incubation programme that the
partners started in May.
“We
had
no
business
experience and so we were
encouraged by TBP (The Business
Place) to join the programme
so as to focus on running the
service side of things while the
organisation provided us with
free accounting and financial
management services through
its staff,” says Lala.
However, during incubation
Lala realised that the business
lacked important systems to help
them to get ahead. But to do this,
the three needed funding.
Nikki Lala
"We had no
experience and
so we were
encouraged
by TBP."
“We needed to install an
upgradable
online
booking
system which allows us to also
market our services through our
website,” she said.
With the new booking system
the business’s monthly turnover
increased to about R40 000,
over twice their initial monthly
turnover of R15 000.
The partners then realised
that they needed a bigger
challenge to grow even further.
“And so we went back to
TBP to help us secure our first
corporate contract.
We needed this challenge to
enable us to grow our experience
and enter a new market,” says
Lala.
The organisation helped put
them in touch with a corporate
auditing company which had
been searching for a travel
agency to make international
travel bookings.
Following a number of
meetings and a lengthy service
presentation to the corporate
company’s management in June,
Travel Nation was awarded a R2million contract.
“I can’t emphasise enough
how excited we about taking on
the new contract to organise
bookings for the corporate
company’s local and overseas
travels,” says Lala.
She explains that the deal,
which is expected to be finalised
by December, has pushed the
travel agency into a good position
– as news of the agreement
has also helped expose Travel
Nation to a number of potential
corporate clients.
She adds that the three will
use the new contract to further
the business and hire more
people.
“The
booking
systems
and people are what we rely
on. We are going to add more
improvements to the business’
work systems and employ more
staff to help manage tasks when
the deal consummates next
year,” she says.
The Business Place has
offices located in Johannesburg,
Cape Town and Phokeng in North
West,
Lala, says the three decided
to use their experience to start
their own travel agency.
•Visit www.tbp.co.za for more
information.
page 20 - October 2014
COMMUNITY
CIPC rated best
THE Companies and Intellectual
Properties Commission (CIPC)
rates top when it comes to services
received from small business
service providers.
This result is based on the first
Small Business Connect Services
Survey completed through a
straw sample of readers who were
asked to rate their top agencies.
These agencies included the CIPC,
National Youth Development
Agency
(NYDA),
National
Empowerment Fund (NEF), Small
Enterprise Development Agency
(Seda), Small Enterprise Finance
Agency (Sefa) and the Department
of Trade and Industry (DTI) grants.
The CIPC was the clear
favourite with 35% of the votes,
followed by the DTI grants with
23%, Seda at 15%, NYDA with
11% and Sefa with 8%. An option
was also provided where business
owners could rate any other
service provider of their choice.
Names such as the South African
Revenue Services (Sars), National
Small Business Chamber and
FNB were submitted. When Small
CIPC
NYDA
Join the discussion on Facebook
www.facebook.com/SASBconnect
35
DTI
SEDA
SMALL BUSINESS CONNECT
23
15
11
SEFA
8
Business Connect posted the
results to Facebook, our readers
had mixed feelings about this.
Llewellyn
Roeland
says,
“All stepping stones in the
right direction. The Industrial
Development Corporation is also
coming to the fore now.”
While Anam Xinwa felt that
the NYDA should be at the bottom,
but Noma Msiza countered that
she only ever received 100% from
the NYDA. Deon King thought
that scoring the NYDA 100%,
Small Business
Connect
Services Survey
Sefa 50%, CIPC 30% and Seda 0%
was a more accurate reflection of
what the results should be. Tumza
Mpelo posted that Sefa was a
better service provider than the
NYDA. Ace Blue thought that all of
the above were "useless" because
the service providers “did not help
startups”.
Asanda Kepelele says he will
be applying for assistance to the
various service providers and
would soon get to rate the services
first-hand.
Sign up to get an email reminder for each Small Business Connect Radio show.
Go to www.SASBconnect.co.za to join the next show on 8 October
Readers of the month
Raksha Mahabeer
Tshepo Choba
Thokozile Makwala
READING Small Business Connect
online saves time and is a good
way to spot potential customers.
So says Raksha Mahabeer,
co-founder of brand design and
marketing business SummerTime.
Mahabeer believes exposing
her business on the web helps her
connect to thousands of potential
customers who regularly use the
internet.
“These days entrepreneurs
prefer to use online platforms to
access useful information to grow
their businesses and to improve
visibility of their brands,” says
Mahabeer. She says she leisurely
reads Small Business Connect
whenever she takes time off from
her marketing campaigns.
A BUSINESS owner who supplies
over 2 000 clients with fax-toemail services says reading Small
Business Connect sparked the idea
to start his business.
Tshepo Choba, who runs
Modern Faxing Solutions, says he
started his business four months
ago after finally turning his ideas
into a business.
“Reading the newspaper for
the past year has helped me obtain
information on how to turn my
ideas into reality, which I recently
did.
The newspaper is a good
business information directory
which I use frequently to find
different
business
support
centres,” he says.
A YOUNG entrepreneur says
picking up a copy of Small Business
Connect in February helped her to
register her marketing business
in March this year. Thokozile
Makwala is the owner of Marketing
Solutions Firm.
The 19-year old entrepreneur
runs the business from her
Sandton home, where she
supplies marketing consultancy
and advertising services.
“The newspaper introduced
me to agencies such as the Small
Enterprise Finance Agency and
the National Youth Development
Agency,” she says. Makwala is
also a listener on Small Business
Connect’s online radio which was
launched in August.
"I enjoy all the discussions and advice in the
newspaper. I am hoping to gain some valuable advice
to use to help expand my business."
Stephan Cronje, owner of Overwin Construction
SMALL BUSINESS CONNECT CHAMPION
SMALL
Business
Connect's
Braamfontein readership has
grown so much that the Small
Enterprise Finance Agency (Sefa)
now shares its copies with the
local South African Institute of
Chartered Accountants (Saica)
branch.
This month's Small Business
Connect
Champion,
Pearl
Ngomane – an avid reader since
the newspaper first launched in
September 2013 – says this is
evident to how the demand for
the publication has grown.
Ngomane is the regional
administrator
for
Sefa's
Braamfontein branch, a Small
Business Connect distribution
point.
“I also have clients who come
here monthly to collect copies
of the newspaper, so it is in
demand,” says Ngomane.
Thanks to the informative
and inspiring success stories
involving Sefa, Ngomane says
the branch has also managed
to attract more clients who now
benefit from its range of services.
The publication has also
helped the office to bridge
existing information gaps.
“Small Business Connect
helps to highlight many business
owner-related challenges. This
helps us to inform entrepreneurs
about funding agencies that
might assist them if an owner’s
requirements are out of Sefa’s
scope,” she says.
She
says
that
she
regularly witnesses that many
Pearl Ngomane
entrepreneurs who visit Sefa's
offices are not yet familiar with
online news platforms.
But, thanks to the print
edition of the Small Business
Connect, she says she regularly
shares copies of the newspaper
with small business owners who
visit the office in search of ways
to improve their businesses.
Reading the publication has
also helped the office recommend
existing channels of information
and business assistance to help
business owners gain a better
understanding of the various
industries they work in. She says
a lack of access to marketing and
business tools were challenges
business owners faced.
“The newspaper is an
impressive information tool as it
provides business owners with
guidance and encouragement,”
says Ngomane.