media release
New Business Plan Competition Aims To Drive Sustainable Entrepreneurial
Development in South Africa
Small, medium and micro enterprises (SMMEs) account for approximately 40% of South
Africa’s gross domestic product, and employ more than half of the private sector work force.
However, 80% of small businesses fail within their first five years, and according to the most
recent Global Entrepreneurship Monitor study, South Africa lags far behind many developing
nations in terms of its entrepreneurial activity levels.
The Small Enterprise Development Agency (Seda) now aims to encourage more South
Africans to start or grow their own small business, with the launch of Seda Small Business
Stars, a national business plan competition with a unique focus on entrepreneurial
education.
The competition runs from 17 October until 11 April 2012, and aims to drive sustainable
venture creation at a provincial and national level, by providing small business owners – who
often struggle to survive after launching into business unprepared – with a more systematic
approach to business planning.
“Traditionally, business competitions receive thousands of entries, but only end up benefiting
the few who ultimately take home the top prize,” says Seda’s CEO, Hlonela Lupuwana. “Our
aim with Seda Small Business Stars is to provide real value for the entire entrant base, all of
whom will receive access to free specialised training, designed to strengthen their
knowledge of sound business principles, which they can then apply to their business plans
going forward.”
Entrants can register for this free training at any Seda branch.
Despite over R4 million worth of prizes on offer, including laptops and software for all
winners, as well as a R50,000 cash prize for the overall winner, it is this free, intensive and
specially developed training, available at Seda branches across all nine provinces, that truly
differentiates Seda Small Business Stars from its predecessors, says Dr. Robin Stead, CEO
of the SA Institute for Entrepreneurship (SAIE). The institute, together with Traction, a
specialist small business development consultancy, was awarded the tender by Seda to run
the competition.
“Whilst funding is certainly critical to the success of a start-up venture, the strength of the
business plan will ultimately define the sustainability of a business model,” says Stead. “This
training is designed to ensure that all candidates are best equipped to devise realistic plans
that can be successfully implemented with a long-term vision in mind.”
Lupuwana says that the competition will help small business entrepreneurs to approach their
planned or existing business in a more structured way.
“Passion and business acumen are obviously important in any startup, but too often
businesses fail because they have not carefully thought through exactly how the business is
going to operate, and made inadequate preparations for potential pitfalls. They also
frequently overestimate revenue and underestimate expenses. Our guided process will help
to ensure that start-ups are much better prepared to enter the business world.”
Entry to the competition takes place exclusively via the on-line competition system on the
Seda website, thus protecting business plan confidentiality, and allowing entrants to work on
their entries irrespective of their location.
“The online entry system has been designed to maximise security, as we can ensure total
confidentiality of business plans on-line. It is far more difficult to protect printed business
plans, especially given the fact that our judges are located all over South Africa,” says
Lupuwana.
The competition will be adjudicated by a panel recruited from top business development
agencies and service providers. The judging process will identify 20 national business idea
winners and 20 existing business winners, all of whom will receive their share of more than
R400,000 in cash, as well as laptops and Seda business support to the value of up to
R60,000 each.
Special prizes will also be presented to the best woman entrepreneur, the best youth
entrepreneur, the best disabled entrepreneur and the best “job-creating” entrepreneur.
The competition is open to any South African citizen over the age of 18 with a business idea
or existing small business. From the 17th of October, candidates will be able to register on
the competition website, and download the business plan template to prepare their entry.
On-line entries will open from the end of October. Entries close on 31 January, 2012.
For more information, please visit www.seda.org.za or follow Seda Small Business Stars on
Twitter or Facebook
ENDS
For media enquiries, contact Dominique van Onselen on 082 802 8184 or email
[email protected]
Notes to Editors
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Seda Small Business Stars is made possible with the help of our valued partners:
Business Report, our print media partner, SAfm, our broadcast media partner and
Raizcorp, our Enterprise Development Partner
Seda Small Business Stars is open to all South African citizens over the age of 18
with a business idea or existing small business
All forms of registered business, as well as co-operatives, sole proprietorships and
partnerships with an annual turnover of up to R20 million are eligible to enter
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Training sessions will be co-ordinated by Seda’s regional branches, using accredited
service providers
Seda’s regional branches will serve as competition hubs, and participants will be able
to register at their local branch as well as online
Business plans will be scored using a standardised scoring template, and will be
audited by an independent auditor
Training sessions are voluntary, but are strongly recommended in order to improve
the quality of business plan entries
About Seda
The Small Enterprise Development Agency (Seda) is an agency of the South African
Department of Trade and Industry (the dti). Seda was established in December 2004,
through the National Small Business Amendment Act, Act 29 of 2004.
It is mandated to implement government’s small business strategy; design and implement a
standard and common national delivery network for small enterprise development; and
integrate government-funded small enterprise support agencies across all tiers of
government.
Seda’s mission is to develop, support and promote small enterprises throughout the country,
ensuring their growth and sustainability in co–ordination and partnership with various role
players, including global partners, who make international best practices available to local
entrepreneurs.
For more information, please visit www.seda.org.za
About the South African Institute for Entrepreneurship
The South African Institute for Entrepreneurship has a vision of a dynamic culture of
entrepreneurship in South Africa that promotes entrepreneurial behaviour and
resourcefulness in youth and adults, and assists in the eradication of poverty through the
creation of effective entrepreneurs.
The SAIE develops innovative materials that utilise original, creative methodologies and
trains educators, trainers and community-based organisations to convey business skills,
uncover entrepreneurship qualities and ensure sustainable economic development and
wealth creation.
For more information, please visit www.entrepreneurship.co.za