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EDITION 8
April 2014
HELPING YOU RUN A BETTER BUSINESSwww.SmallBusinessConnect.co.za
Relief from credit blacklists
BY NABELAH FREDERICKS
MOST INNOVATIVE IN AFRICA?
EFFECTIVE as of 1 April 2014, all
credit bureaux will automatically
have to remove any negative
information on the credit records
of consumers.
This comes after the Minister
of Trade and Industry, Rob Davies,
released the regulations for the
Removal of Adverse Consumer
Credit Information last month.
The regulations form part of
the National Credit Amendment
Bill (NCAB), which aims to address
shortcomings in the National
Credit Act (NCA), which regulates
the credit industry.
Currently, half of the 21
million consumer records are
impaired and, as a result, these
consumers cannot access credit
and employment.
According
to
Nomsa
Motshegare, CEO at the National
Credit Regulator (NCR), the bill is
likely to be signed into law within
the next month or two. This means
that consumers will have negative
information wiped off their profiles
in the period between 1 April 2014
and when the bill becomes law,
which is anticipated to be in May.
Continued on page 4
SA Premier Business
Award winners
Page 3
Tax reforms on the
cards for small biz
Page 5
SA entrepreneurs
make Forbes list
Page 9
C
M
Y
CM
MY
CY
CMY
K
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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.
SMALL
BUSINESS
Connect
Winner of the prestigious global tech award and creator of electric taxi, Neil du Preez, in one of his Mellowcab taxis that he plans to export. The taxis
are manufactured locally and are made from recyclable material. Read more about Du Preez and his Mellowcabs on page 7.
CAPX Snail Ad FP.pdf
1
2013/03/07
1:09 PM
NEWS
page 2 - April 2014
SMALL BUSINESS CONNECT
Training upskills women owners
BY VUYO MABANDLA
MORE training solutions for
informal and other small womenowned enterprises in the clothing
and textile sector should be
implemented to ensure that
locally-made goods reach the
international market.
This, according to the South
African Women Entrepreneurs
Network (Sawen), who believe
some women-run clothing and
textile businesses lacked “proper
finesse in producing quality
products ready for exporting”.
Speaking at a Department of
Trade and Industry (DTI) sponsored
training graduation ceremony for
20 women entrepreneurs in Cape
Town last month, acting Sawen
chief executive officer (CEO), Ruth
Masokoane, said the previous
programme’s
success
must
serve as an inspiration for more
similar
women-empowerment
programmes in South Africa.
The initiative, called Bavumile
(Xhosa for ‘women have agreed’),
was founded and is run by the DTI.
Says Masokoane: “It is an
intervention to help perfect the
proper selling of local crafts,
beadwork, sewing and clothing.”
Following the 10-day training
programme,
the
graduates
were given brand-new sewing
machines to help them implement
their new skills, create a unique
line of craftware, and tender
to export their work to an
international market.
Masokoane says that despite
the existing high number of female
makers of arts and crafts, many
local women-owned businesses
Entrepreneur Nomthandazo Motsoane receives a sewing machine from Sawen acting CEO Ruth Masokoane.
were still not economically viable.
She says the “real push lies
in the fact that the intra-African
economy has been seen to be
rising, more so in the area of
clothing and textiles”.
Although there were no
definitive figures to support this
claim, a growing demand for
African crafts was reaching more
prominence in countries like
the U.S. In the U.S., showroom
exhibitions, in cities such as
Atlanta, continued to draw
attention
from
international
authentic craft buyers.
Markets for local creators have
also now been opened to showcase
their work. The DTI has launched
a showroom exhibiting South
African arts and crafts in Atlanta.
The aim is to support local
female roleplayers, because “many
are still less economically viable”.
The DTI’s Gender and Women
Empowerment Unit’s Granny
Lekganyane, who runs Bavumile,
says the industry was still
dominated by male entrepreneurs.
She said: “This is an
opportunity for women to profit
as well as
equip themselves
with training.”
The women were introduced to
new skills in quality embroidery,
doll-making and patternmaking.
This was followed by coaching,
marketing, order and selling
strategies and presentations by
field experts.
Nomthandazo
Motsoane,
a Hermanus fashion designer
and sculptor, took part in
the programme.
“I am now more skilled in
design and patternmaking, and
others will help me realise my
dream of hiring five people by the
end of this year,” she says.
The graduates’ progress will
now be monitored and evaluated
over time.
•Go to www.thedti.gov.za for
more information.
Attempt to get a million businesses online by 2016
BY YOLANDE STANDER
IN an attempt to get 1 million
small businesses online by 2016,
industry leaders are collaborating
to support young entrepreneurs
through Microsoft’s Biz4Afrika
and Student2Business initiatives.
Microsoft launched Biz4Arika
in 2013, and it is currently being
rolled out across South Africa.
The initiative – a partnership
between Microsoft, the National
Small Business Chamber (NSBC),
the Small Enterprise Development
Agency (Seda) and mobile operator
Vodacom – provides skills and
services to local small businesses.
According to Tracey Newman,
Microsoft South Africa’s small
business lead, many small
businesses do not have access to
modern technology and are still
using old hardware and software,
which negatively impacts their
productivity in a digital world.
“Just having an own website
can radically increase a startup’s
chances of success, and internet
access opens up new borders
and markets to help it with new
customer
acquisition,”
says
Newman. The range of cloudbased tools and services that
Microsoft offers through Biz4Afrika
To access Biz4Afrika's services, you can log on to their website.
provide small businesses with
easy and cost-effective access
to modern technology that
they require to operate at their
maximum potential.
Newman says this initiative
was launched after a study by
the Boston Consulting Group
revealed that tech-savvy startups
have created twice as many new
jobs and grew revenues 15%
faster over the past three years
than small businesses using
little technology. She says having
access to the right technology can
level the playing field for small
businesses, helping them compete
against much larger players.
As part of the programme, and
in collaboration with the Media,
Information and Communication
Technologies Sector Education and
Training Authority (MICT Seta)
and Solver Consulting, Microsoft
will also place one intern in each
of Seda’s 42 centres nationwide.
“Interns need to be on the
unemployed MICT Seta database,
from a previously disadvantaged
background, have an National
Qualification Framework Level five
qualification, and be an attitudinal
match to a business advisor
benchmark.
Four
additional
interns will also support online
queries from small businesses,
where they will receive onthe-job training on technology,
connectivity and retail, among
other areas. The goal is for these
interns to become small business
and technology advisors.”
Newman says the aim was
also to grow skills in the South
African marketplace by taking
46 unemployed people over a
one-year period and providing
them with on-the-job training
relating
to
business,
such
as
administration,
financial
management, marketing, sales
and other relevant skills. During
the first year, entrepreneurs will
receive assistance in getting
their businesses online, by being
provided with a free .co.za domain,
a free website and free email and
collaboration tools.
The MICT Seta and the Jobs
Fund support the initiative by
paying the students’ stipends.
The NSBC provides the
relevant and updated content on
the subscriber base, and Vodacom
provides businesses with free
connectivity solutions and training
to startups and interns.
Seda provides training to
interns on starting and growing
their small businesses as well
as an opportunity to shadow
Seda business advisors at the 42
branches country-wide.
•Go to www.mict.org.za, www.
southafrica.bizafrika.com and
www.s2bprogram.com
for
more information.
Measure
your success
LAST month we saw the
hosting of the second annual
South African Premier Business
Awards
where
business
owners were acknowledged for
achieving exceptional results
with their businesses.
It is really inspiring to see
icons like Sam Motsuenyane
being recognised for his lifetime
contribution
to
economic
growth, and to hear about the
achievements of the other
category winners. In this edition
of Small Business Connect,
we report on the winners and
their businesses. We salute all
the winners, like Motsuenyane
saluted all the people he worked
with during his lifetime as an
entrepreneur and a driving force
in establishing successful black
businesses in South Africa.
However, only one page of
the newspaper is dedicated to
the awards – there are 19 more
pages where you will read about
many other businesses who have
not received such recognition.
For them, like most other
entrepreneurs, the greatest
achievements are not reflected
by winning awards (although it
would be great to do so).
For them, the recognition lies
in the satisfaction they offer their
customers and the profitability
of their businesses.
The women entrepreneurs
who completed the Bavumile
training course, the informal
traders in Port St John’s, the
Eastern Cape contractors who
were trained by Sanral, inventor
Neil du Preez and the small
suppliers servicing the needs of
their customers… How do they
measure success?
You may have a business
similar to any of those covered
in Small Business Connect. The
question to you is, how are you
measuring your success?
For each business, the
answers to these questions will
be different, but, the common
goal is to ensure that we are
on track toward the successes
we aim for. Without keeping a
“scoreboard”, we will not know
how we are doing – we will
not know if we are “winning
the game”. My challenge to
you is to compile your own
“scoreboard” and then assess
your progress every month. You
may include financial targets,
production levels and product
improvements, but what you
measure is dependent on your
situation. Decide what you’ll put
on your “scoreboard” and keep
your “score”.
It may just lead you to
winning an award in the
near future!
Gcobani Ndabeni
Operations Director
Small Business Connect
www.facebook.com/SASBconnect
www.twitter.com/SASBconnect
[email protected]
087 150 4710
www.SmallBusinessConnect.co.za
NEWS
April 2014 - page 3
Awards
recognise the
top business
achiever
BY NABELAH FREDERICKS
AT the second annual South
African Premier Business Awards,
business owners from across the
country were recognised for their
achievements and contributions
across various sectors.
The awards, held in Sandton
last month and hosted by the
Department of Trade and Industry,
Proudly South African and Brand
SA, honour enterprises that
promote innovation, employment,
good business ethics and quality.
On the night, the highest
honour was accorded to Sam
Motsuenyane, the well-known
serial entrepreneur who also
serves on the boards of several big
companies. Motsuenyane received
the Lifetime Achiever Award,
handed over by President Zuma.
“I have worked with many
people, most of whom are no
more. I salute black business
pioneers who are still alive and
those who have departed,” says
Motsuenyane, a pioneer.
Lindiwe Shibambo, owner
of domestic worker placement
agency Maid4U, received the
SMME award. She refers to the
award as “the big one”.
“This shows me that we need
to continue the work we do. There
is no huge revenue, but this award
has refuelled us,” says Shibambo.
She says she started the
business in July 2010 after having
a child and being faced with
limited options when choosing a
domestic worker and nanny.
Her hopes are to start opening
other branches across the country.
Larry Shakinovsky, who coowns Pentafloor with Bianca
Shakinovsky,
says
he
was
overwhelmed after winning the
Manufacturer Award.
“A while back, we entered
another competition and did not
win anything. We were really
disappointed and therefore did not
expect to win anything here,” says
Shakinovsky.
However, when he arrived
at the awards and saw that the
president was in attendance, he
realised the event’s magnitude.
In the last 12 months, he has
acquired two new businesses.
Co-owner
of
technology
service provider and manufacturer
Mechcal, Gavin Ratner, says he is
“quite chuffed” on winning the
Green Award.
“I was surprised because
we were up against such big
companies, and it is quite an
achievement,” says Ratner.
Mechcal provides energyefficient products that save up
to 30% energy. Another award
winner and supplier to the mining
industry is New Concept Mining.
Winner of the Quality Award
category, the acknowledgement
was accepted by its marketing
director, Brendan Crompton.
“We are honoured and excited
to have received the award,” says
the company’s managing director,
Philip Maxton. He believes the
award is the result of many years
of focus on quality and credits the
mining industry.
Other
winners
were
Clover Mama Afrika Trust
(Rural
Development
Award),
SAAB Grintek Defence (Pty)
Ltd (Exporter Award), Carte
Blanche (Media Award), Coega
Development Corporation (Most
Empowered Enterprise Award),
Eskom Holdings SOC (Pty) Ltd
(Technology Award), Botlhokwa
Events and Projects (Young
Entrepreneur Award and Play
Your Part Award), Hands on
Treatment (Pty) Ltd (Womenowned Enterprise Award), Eskom
Lifetime achiever award-winner Sam Motsuenyane who was handed his award by President Jacob Zuma says
that we need to create a society of black entrepreneurs who can participate in nation-building.
Bianca and Larry Shakinovsky of Pentafloor won the
Manufacturer Award.
Lindiwe Shibambo (middle) hopes to expand her
business after winning the SMME Award.
Karin Abrahams, Martina Laurie, Natascha Bailey
and Precious Rumhama of Hands on Treatment
are "on a high" after winning the Women-owned
Enterprise Award.
Brendan Crompton, marketing director at New
Concept Mining, accepted the Quality Award.
Holdings SOC (Pty) Ltd (Investor
Award), and Ekurhuleni Artisans
& Skills Training Centre (Proudly
empowering industries and broadening economic participation
South African Enterprise Award).
All winners received a Gordon
Institute of Business Science
business course.
•Go to www.sapremierbusiness
awards.co.za
the dti Customer Contact Centre: 0861 843 384
Website: www.thedti.gov.za
NEWS
page 4 - April 2014
SMALL BUSINESS CONNECT
Get face-to-face
with financiers
at KZN fair
BY YOLANDE STANDER
ACCESS to finance ranging from
R15 million per project is available
to business owners at this year’s
two-day KwaZulu-Natal (KZN)
Funding Fair.
Launched last year, the aim
of the initiative is to initiate and
facilitate face-to-face contact
between entrepreneurs, business
development bodies and funders.
The fair, which takes place at
the Moses Mabhida Stadium in
Durban on Wed, 9 and Thurs, 10
April this year, is a partnership
between Deloitte KZN, the
province’s Treasury Department,
and
the
KZN
Department
of
Economic
Development
and Tourism.
According to Clive Coetzee,
general manager of infrastructure
management
and
economic
services at KZN Treasury, the
2013 event led to R344 million in
funding going to businesses across
various sectors, ranging from
technology to agro-processing
and tourism.
“As a result of last year’s fair,
50 deals are currently being
negotiated, and other provinces
are following suit with similar
initiatives.
I think we touched on
a clear need – bringing the
various roleplayers together,”
says Coetzee.
He says there are many
funders ready and willing to
invest, but that the problem
is finding entrepreneurs with
viable proposals.
“Funders need some degree of
certainty that deals can be made
to make sure that their efforts are
worthwhile, not just ideas and
concepts, but something that has
the potential to show return on
their investments,” he says.
Coetzee says another problem
is that many good business ideas
fall through the cracks because of
the lack of knowledge and skills
needed to approach funders.
To ensure that the process
is beneficial to both parties,
entrepreneurs are asked to
register online prior to the fair.
A panel of industry specialists
then sifts through the various
proposals, identifying the most
viable ones.
In attendance at last year's KZN Funding Fair were: Clive Coetzee (KZN Treasury), André Pottas (Deloitte), Ina
Cronje (MEC for Finance, KZN), Leon Bezuidenhout (Deloitte) and Mweli Ndaba (Deloitte).
Leon Bezuidenhout, corporate
finance advisory senior manager
at Deloitte, says entrepreneurs
are guided by experts to ensure
that their proposals are ready to
be pitched to the funders.
In 2013, 150 proposals were
registered, and between 50 and
60 shortlisted.
He says that day one takes
on a Dragon’s Den format; each
entrepreneur has a 15-minute
face-to-face
meeting
with
a funder.
“If the funder is interested,
they will have one-on-one
sessions with the entrepreneur the
following day,” Bezuidenhout says.
The fair also has an educational
element, says Bezuidenhout. “We
have workshops and discussions
around various topics – from
compiling a good business plan
and financial model, to what banks
look for when assessing a project.”
These sessions are open
to
anyone,
not
just
the
project promoters.
This year, business owners who
have been successful in obtaining
funding will also share their
experiences with newcomers.
Bezuidenhout says for the
fair in April, there is a minimum
funding requirement of R15
million, and the project should be
based in KZN.
Secondary fairs, with lower
minimum funding requirements
and for infrastructure projects, will
also be held in KZN during 2014.
Lex Campbell and his business
partner
Dick
Muir,
former
Springbok rugby player and coach,
participated in last year’s fair.
“This is a good way to connect
with banks and other funding
bodies. The funds are available,
but you need the know-how to
approach them with your proposal.
“However, I would like to see
more government departments
come to the table, for instance,
Agriculture, Environmental Affairs
and Rural Development.”
•Visit www.kznfundingfair.co.za
for more information.
Regulator steps up monitoring of the credit industry
BY NABELAH FREDERICKS
EMPLOYERS
who
charge
interest on staff loans will have
to register as credit providers
under the National Credit
Amendment Bill (NCAB), which
could be signed into law as early
as May this year.
The NCAB is aimed at
addressing shortcomings of the
National Credit Act (NCA) that
regulates the credit industry.
It is also the result of
assessments on the effectiveness
of the NCA conducted by the
Department of Trade and
Industry (DTI) and the National
Credit Regulator (NCR).
As the legislation currently
stands under the NCA, only
those credit providers who
have entered into at least 100
agreements or have a total
outstanding book of credit of
more than R500 000 need to
register with the NCR. However,
once the NCAB is signed into
law, all credit providers will need
to register with the NCR.
Nomsa Motshegare, the
NCR’s CEO, says this will enable
the regulator to better monitor
the industry. She says last
year investigators uncovered
various
non-compliances
among micro-lenders in small
towns such as Marikana in the
North West, where it was found
that consumers’ bank cards
were being withheld by credit
providers – an offence under
the NCA.
Investigations such as these,
undertaken
in
partnership
with the South African Police
Service (Saps) owing to a lack
of resources by the NCR, also
resulted in one micro-lender
being fined R900 000. Deceptive
advertising offering consumers
“pre-approved”
credit,
for
instance, would also be more
closely monitored. Motshegare
admits that the NCR needs to
do more to address this. For
this reason, it is partnering
with Saps.
“We are building capacity. All
these amendments will mean
that the NCR requires more
funding and resources. We are
in talks with the DTI to ensure
that we have enough resources
to register and monitor more
credit providers."
She says offenders will be
named and shamed, but that the
NCR is obtaining legal advice as
to what actions could be taken
against offenders.
According
to
Angela
Itzikowitz, director of the law
firm ENSafrica and professor
at Wits University, the removal
of criteria for credit providers
to register is a step in the
right direction.
“Lenders who previously
were not obliged to register
simply assumed that the
legislation did not govern them
and therefore did not adhere to
it,” says Itzikowitz.
All credit providers will be
regulated by the NCR and the
relevant legislation, which will
enable the NCR to monitor more
effectively. Other parts of the
NCAB include amendments to
the affordability assessments
by credit providers. These
will soon be prescribed in the
form of regulations and will
ensure that credit providers
obtain proof of income and
Relief from
blacklists
From page 1
“But
consumers
with
judgements relating to paid-up
accounts will continue to have
this information removed from
their profiles on an ongoing
basis,” says Motshegare. Under
the new regulations, consumers
will no longer have to spend
money on legal fees and go
to court to have a judgement
rescinded. She stresses that the
removal of adverse information
on consumer profiles is not to
be confused with the removal
of debt. It is only the negative
information that will be removed,
and consumers will still be liable
for the debt.
“The credit profile will
still show a credit provider
expenditure; this is currently
not being done in all cases.
She says that developmental
finance institutions like the
Small
Enterprise
Finance
Agency will not be controlled by
these affordability assessment
regulations.
“They have their own
affordability assessments, that
require business plans and cash
flow projections and these will
therefore not apply to them.”
says Motshegare.
whether payments have been
skipped when they do their risk
assessments, so it is important to
use this to keep your profile clean
and pay your accounts. It is just
the wording and symbols that will
be removed,” says Motshegare.
The wording reflected on
the credit profile Motshegare
refers to is “delinquent, slow
payer,
absconded,
default,
not contactable, legal action
and write-off” – as per the
regulations. The aim is largely
to allow consumers to get back
into the credit market and allow
those who have been unable
to find employment as a result
of employers checking credit
history to find a job.
According
to
Angela
Itzikowitz, director of the law
firm ENSafrica and professor
at Wits University, the NCA
has been very effective and has
Nomsa Motshegare
protected consumers from the
brunt of the financial crisis.
She believes that the NCAB
is addressing most of the NCA’s
shortcomings, which were mainly
a result of poor drafting.
However, she says that many
believe the removal of adverse
information from consumer credit
profiles to be a controversial
piece of legislation.
“I am not sure that this will
have the desired effect. I think it is
going to result in credit providers
being more stringent concerning
lending criteria,” says Itzikowitz.
The
NCAB
also
includes
amendments to affordability
assessments as well as predatory
and deceptive advertising of
credit to consumers.
All lenders will now have
to register, and a code of
conduct will be drafted for the
credit industry.
www.SmallBusinessConnect.co.za
NEWS
April 2014 - page 5
Tax reforms on the cards for small biz
BY STEPHEN TIMM
ALMOST 13 years after it
was adopted, Small Business
Corporation (SBC) tax could be
set for a radical overhaul and its
graduated structure replaced by
a rebate, if proposals by a tax
review committee are adopted by
Parliament.
The new proposals – which
also include amendments to the
turnover tax on micro businesses
– follow the completion of a draft
on its report on small and medium
enterprises in January 2014 by
a committee headed by Judge
Dennis Davis.
The report, which was
presented to the Minister of
Finance Pravin Gordan, has yet to
be released to the public.
Currently businesses with
an annual turnover of up to R20
million assessed as SBCs can
qualify for tax cuts under the
regime which provides for a
graduated tax structure.
This allows, for example, a
company with a taxable income
of R600 000 to pay tax of just
R73 701, rather than the R168 000
it would be liable for under the
28% company tax.
Only
those
enterprises
assessed as SBCs can qualify. For
example to qualify for the tax,
business owners can’t have shares
in more than one business, can’t
derive more than 20% of their
revenue from investments and
the rendering of personal service
and can’t be a personal service
provider unless they employ three
or more people.
This has likely resulted in
many small businesses being
excluded. South African Revenue
Service (Sars) figures show that
in the 2012 tax year just 86 354
enterprises were taxed as SBCs.
In its draft report the
committee concluded that the
government’s lower tax rates
in SBC tax are not effective, do
little to support the objective of
small business growth and do not
address tax compliance costs.
The
committee
has
recommended
replacing
the
reduced tax rate regime with an
annual refundable tax compliance
rebate,
subject
to
certain
conditions. The details have not
been released, but it is likely to be
similar to the primary, secondary
and tertiary rebates offered
to individual taxpayers. Public
consultations must still be held on
the proposal.
The review committee has also
proposed amendments to turnover
tax on micro businesses.
Under the regime businesses
with an annual turnover of up to
R1 million are taxed on their sales,
rather than on their profit.
But despite the generous
reduced tax rate just a mere 8 493
micro firms were registered for
the tax in the 2012 year.
To address this the committee
has proposed the scrapping of one
of the requirements to qualify for
the tax – namely that of having
It is proposed that businesses with a turnover of less than R335 000 should not be taxed.
to stay in the system for at least
three years once signed up for the
tax. It has also proposed a move
to requiring annual, rather than
biannual, tax returns.
The committee also proposes
that turnover up to R335 000
should not be taxed (currently
only those with sales of below
R150 000 are not taxed under
this regime) and the maximum
tax rate should be reduced from
the current 6% (which kicks in for
those enterprises with an annual
turnover of R750 000 to R1
million) to 5%.
Despite
these
proposals
nothing was said of another
serious drawback of the tax form:
that businesses pay tax regardless
of whether they make a profit
or not, whereas under ordinary
income tax they would at least be
guaranteed a zero tax rate in the
event of a loss.
The two key proposals will
be backed by a plan to again
tweak the venture capital tax
incentive which as of August last
year had benefited just one small
firm, since its launch in 2008 –
despite amendments in 2011. The
incentive aims to boost venture
capital investments in small
businesses by allowing individuals
to make upfront tax deductions
if they invest in venture capital
companies, which in turn invest in
certain kinds of small enterprises.
This, and Sars plan to this year
allow businesses to register for
all taxes on one single form may
go some way to improving small
businesses current experience
with paying taxes which still
reaps many a complaint from
business owners.
A quarter of the 500 business
owners surveyed by small business
researchers SBP in a report in
February, cited inefficiencies at
Sars as their biggest concern
when dealing with red tape.
The question on many
business owners’ minds is will
these proposals, if given the green
light, help them get the break they
so badly need.
•Go to www.sars.gov.za for more
information on tax regimes.
Port St John’s informal traders get assistance
BY NABELAH FREDERICKS
A
THOUSAND
informal
businesses are set to benefit
from a pilot project launched
last month by the Department of
Trade and Industry (DTI) in Port
St John’s.
The
Informal
Traders
Upliftment Project (ITUP), as
the pilot project is known, is a
50/50 partnership between the
Wholesale and Retail Sector
Education and Training Authority
(W&R Seta) and the DTI, and
forms part of government’s
National
Informal
Business
Upliftment Strategy (Nibus).
The
strategy
seeks
to
provide informal businesses
with business support that was
previously only accessible to
registered businesses.
This will be provided in
a phased approach. Nibus
comprises two parts: the Shared
Economic Infrastructure Facility,
which will see upgrades to
buildings and the like that will be
used by informal businesses, cooperatives and small businesses.
The other part – the Informal
Business Upliftment Facility,
which kicked off with the launch
of ITUP – will prioritise women,
young people and people with
disabilities who own businesses
based in townships, rural areas
and the like, with much-needed
business support.
According to Stephen Umlaw,
project manager for Nibus at the
Informal businesses will soon have access to business support services
that were previously inaccessible.
DTI, the purpose is to identify
areas in the country where
informal traders such as street
vendors and spaza shops can be
selected and trained so that they
can run flourishing businesses.
“We want to identify, train,
coach, mentor and provide
infrastructure
support
to
1 000 informal traders in
all nine provinces over an
18-month period in partnership
with relevant stakeholders,”
says Umlaw.
Nationally, 1 000 informal
traders are expected to benefit –
just over 100 per province.
He says the selected traders
will be categorised according to
the following retail subsectors:
Street traders – training and
support. Spaza shops or homebased retail businesses – training
and refurbishment.
Township or rural general
dealer shops – training and
refurbishment.
Permanent and temporary
markets (for instance, Kwa MaiMai) will receive training and
infrastructure upgrade.
Informal
Traders
Organisations – organisational
management skills.
“The criteria is that the trader
needs to be South African and
must have proof of trading,”
says Umlaw.
Beneficiaries will be selected
by a team that consists of
people from the municipalities,
informal trader associations,
among others.
“To ensure fairness and
transparency, traders will be
selected through the involvement
and participation of municipalities
and local community forums
that will supply lists of eligible
participants for this programme,”
says Umlaw.
Clear guidelines will be drawn
up and agreed upon during the
course of the project, as this
forms part of the learning curve
of the pilot.
NEWS
page 6 - April 2014
SMALL BUSINESS CONNECT
Women contractors make inroads
BY MAX MATAVIRE
TWO women entrepreneurs are
inching closer to their goals in a
male-dominated industry after
successfully completing the South
African National Road Agency
Limited’s
(Sanral)
enterprise
development programme.
The programme, which was
launched in the Eastern Cape
recently, offers training to small
businesses along the national
roads Sanral builds, upgrades
and maintains.
Small contractors are trained
in routine maintenance work,
with seven such small contractors
already having been awarded
certificates for their involvement
in a maintenance work programme
along the N2 in the Eastern Cape.
According to the co-owner
of Nhlapo Construction (from
King William’s Town), Amanda
Nhlapo, the training will assist
her in taking over the running of
the business from her motherin-law, a dream she could soon
see realised after receiving a
national certificate in construction
contracting from Sanral.
Nhlapo now has the knowhow to run the business and can
take over.
A fellow participant in the
programme, Sandra Lewis –
another woman contractor from
King William’s Town – also
received a national certificate in
construction contracting.
She says her business will
never be the same again.
Speaking at the graduation
ceremony, Lewis said: “It was
not easy. The course was hard
at times and also required me to
be away from home a lot, but I
am overjoyed. The sacrifice has
paid off.”
BY NABELAH FREDERICKS
Entrepreneurs received their certificates on successfully completing the Sanral training programme.
Lewis
co-owns
Damian’s
Construction with her husband.
The other small construction
businesses that participated in the
programme include Tsitsikamma
Fencing,
Mosadi
Business
Enterprise, CDA Construction,
Stark Ark Trading and Penny
Farthing Engineering.
The training programme was
for the maintenance of the N2
from Nature’s Valley to Colchester
just outside Port Elizabeth, and
then to East London. The small
contractors are mentored by
experts for the project duration.
Assessments are conducted
on the contractors’ development
plans, and in certain cases,
staff are identified to complete
their adult basic education and
national certificate in construction
contracting
training
courses
are accredited according to the
National Qualifications Framework.
The Eastern Cape programme
was run jointly with the Nelson
Mandela Metropolitan University
(NMMU) in Port Elizabeth, Penny
Farthing Engineering, which is the
main contractor, and AECom/Mott
McDonald PDNA Joint Venture.
Sanral prioritises 60% of
small business participation on
all routine road maintenance
contracts in the southern region.
Mentor
and
trainer
Dr
Malcolm Figg of the NMMU says
the programme had transformed
mentees from survivalists to
sustainable businesses.
The road agency advertises this
programme in local newspapers
where it will be carrying the road
maintenance and upgrade works.
There is no cost involved in
participating. All small businesses
involved in construction are
welcome to take part. The duration
of the programme depends on the
size of the project, ranging from
three to six months.
•Go to www.nra.co.za for more
information.
You can use online videos to help grow your business
burden on call centre volumes.
Simple videos showing how to
install a new tap or how to fillet
a fish with your new knife are
popular with users and can help
resolve issues before they arise.
Furthermore, this helps increase
the usage and the brand equity
through creating satisfied, wellsupported customers.
BY PAUL HOBDEN
IT is clear to everyone that online
video is a powerful medium.
The question is, how can small
businesses
take
advantage
of online video in order to
foster growth?
Here are some interesting
facts about online video: Over 100
hours of video are uploaded to the
video sharing website YouTube
every hour. In the U.S., YouTube
reaches more adults than cable
television.
About 40% of YouTube viewing
time happens via mobile devices.
MARKETING
Often the most obvious application
of online video is to market a
product or service. I was recently
on a website that featured the
owner explaining the core of his
business through the use of a short
online video. He communicated
effectively,
promoting
his
company, its services and values.
Other short videos can show the
benefits and features of products,
can demonstrate a product in
New fund
for Transnet
suppliers
Paul Hobden
action, or can allow customers to
share their experience of a product
or service.
SUPPORT TOOL
Short “how to” videos can be an
effective way to offer support and
assistance to your customers. A
variety of businesses could use
these. They can also reduce the
ADVERTISING
The
growth
in
YouTube’s
popularity and the amount of time
spent on such a site while viewing
a wide variety of content makes
it an ideal advertising platform.
Small businesses have two options
– they can provide text adverts
that appear at the bottom of the
video while it plays.
Those with larger budgets
can produce a video advert that
plays before other YouTube
videos. With both of these, it is
possible for small businesses
to start with a small budget and
control where and when their
adverts are displayed, in order
to target specific audiences and
demographics.
EXPERTS
Sharing useful videos with related
information will allow you to
position yourself as an expert in
your field. Think about a video
by a usability company that
details steps to improve your
online conversion rate, or DIY
tips from a hardware store. These
immediately give a small business
a platform to show skills and
expertise to potential clients while
building credibility.
Businesses that share appropriate
and topical videos – whether
it’s their own or clips they’ve
stumbled across – on Facebook or
LinkedIn can gain traction in the
market, positioning them as key
influencers in their sphere.
Online video is growing and the
opportunities for small business
to embrace the medium become
more accessible as the technology
develops and production costs
reduce. Small businesses willing
to take the first steps are likely to
reap the biggest rewards.
•Paul Hobden is the head of small
business at MWEB.
TRANSNET’s black suppliers
stand to benefit from the newly
launched R165 million Godisa
Supplier Development Fund.
Godisa – a Setswana word
which means ‘to nurture or
grow’ – aptly describes the
fund’s aim. It is a joint initiative
between Transnet, the Small
Enterprise Finance Agency
(Sefa) and Anglo American’s
enterprise
development
arm, Zimele. Each partner
contributed R55 million to
the fund.
According to Khanyisile
Kweyama, executive director
of Anglo American SA and
chairperson of Zimele, the
fund mainly focus on assisting
businesses owned by women,
young people and people
with disabilities. In addition
to providing loans to blackowned businesses in the
manufacturing and services
sectors, Godisa will also
provide beneficiaries with free
technical and business support.
The fund has allocated
R150 million for investment
financing and R15 million
for support services to these
businesses over a 10-year
period. Recipients qualify for
preferential interest rates.
Applications need to be
in the form of investment
proposals and include a
business plan. Once received
and
screened,
potential
recipients will be asked to
present their business cases.
Should the business case
be accepted, a due diligence
proess will be performed
to ensure that the business
is viable.
Business owners applying
to the fund must:
Permanently
run
and
manage a business that is at
least 51% black-owned or 30%
black female-owned.
•Be a South African citizen.
•Be an existing or potential
Transnet supplier.
•Have a BEE status level
between one and four,
regardless of turnover.
•Preserve existing jobs or aim
to create new jobs.
•Have an existing environmental protection plan.
•Have or plan to have an
HIV/Aids prevention and
management
programme.
Recipients will have to
implement one within six
months of financing.
•Have sufficient cashflow to
service the finance
•Maintain proper accounting records.
•Have the scope to grow in
order to supply clients other
than Transnet.
•Visit www.angloamerican.
co.za for more information.
www.SmallBusinessConnect.co.za
INNOVATION
April 2014 - page 7
Electric taxi may become SA export
BY LAURA CAPITO
ENTREPRENEUR Neil du Preez
vows that despite winning a
prestigious global tech award, he is
determined to keep his Mellowcab
production on home soil.
Du Preez, who originally
worked in the agricultural
chemistry sector, is the owner of
Mellowcabs, which features on
Forbes’ recent list of seven most
innovating ideas from Africa.
He also recently won the
regional Smart Cities category of
the 1776 Challenge Cup, which
assists budding entrepreneurs
whose focus is on improving
city life.
The Mellowcab is an electric
microcab that is best suited
to short distances of about 3
km. The product of two years
of research and hard work, it
produces no carbon omissions
and is manufactured mainly from
recycled materials.
Du Preez has always been
interested in public transport.
Two years ago he decided to begin
serious development and design
work on the project.
The Mellowcab is relevant in
public areas because it provides
a safe, quick, flexible and fully
electric transport system. It
also
includes
regenerative
braking, illuminated body panels,
hydrogen fuel cells and on-board
tablet computers.
Making the Forbes list has
presented an opportunity for Du
Preez to travel to Washington in
May to showcase the Mellowcab.
However, one aspect of his
innovation that is vital to Du Preez
is to keep the manufacturing of
the Mellowcab on home soil.
“Yes, going to the U.S. creates
enormous growth opportunities,
and I would like to expand into
other foreign countries, but
manufacturing will definitely stay
on home soil,” says Du Preez.
Staff numbers will also grow
exponentially from this month,
and the manufacturing team will
increase to between 20 and 25
employees, according to Du Preez.
He excitedly describes the
designs of the new, improved
version of the Mellowcab, which
launches in April.
“There will be a complete
redesign of the taxi itself. The look
will be much cooler and more rock
’n roll. Illuminated body panels
will be included in the design, to
light up the Mellowcab at night,”
says Du Preez.
Each cab will have at least
two drivers. Drivers complete
a full Mellowcab safety driving
training course.
As part of his employment
strategy, Du Preez has also
approached
unemployed
tour guides.
“Not only are they tour guides,
but we also train them up for
other aspects of the Mellowcab
business. We check credentials,
and the drivers will need to have a
motorcycle licence,” he says.
Du Preez also believes in
creating a happy environment for
employees, because this creates a
happy business.
“We have a daily leasing
system where the cab drivers pay
us R150 for the day and then keep
the fares. Mellowcabs also have
a tip box, card and smart app
facilities. It is important to provide
great incentives for staff in order
for them to deliver great work,”
he says.
As with most entrepreneurs,
his success has not been without
challenges.
Du Preez tells Small Business
Connect
that
he
initially
underestimated the legal and
lengthy aspects of the process it
took to design a vehicle.
“To design a vehicle is a really
lengthy process. The engineering
and design aspects are extensive.
The roadworthy process is also
strict. Eventually, we got the South
African Bureau of Standards’
approval for the Mellowcab,” says
Du Preez.
He was also forced to start
the Mellowcab manufacturing
procedure with his own capital,
with venture capital and private
leasing only becoming possible
later. But these challenges all
seem behind him now as he gets
ready to jet off to the U.S.
•Go to www.mellowcabs.com for
more information.
07907 Bizspark Collateral - A4 Advert_FINAL_Paths_nc.indd 1
Neil du Preez, creator of Mellowcabs
2013/09/13 4:19 PM
page 8 - April 2014
OPPORTUNITIES
SMALL BUSINESS CONNECT
SAB kickstarts business
BY YOLANDE STANDER
NCR \ small... 12/2/13 6:30 PM Page 1
Indingliz 003/12
The average turnover by SAB Kickstart businesses increased by 375%.
SINCE receiving R150 000 after
entering the 2014 South African
Breweries (SAB) KickStart youth
entrepreneurship
programme,
a business owner now not only
wants to expand his business,
but also use his newly acquired
skills and knowledge to secure
previously inaccessible clients.
Port Elizabeth's Siphamandla
Javu is one of the top 18 finalists
in this year’s competition, and
C
M
Y
CM MY CY CMY K
is among those who are already
benefiting from the R6 million
SAB invests as part of this
programme every year. However,
the programme is not only about
funding, but also about providing
a comprehensive package of
business development support and
customised growth development
strategy as well as a 12-month
mentorship programme.
Javu, who owns Mzansi
Telecoms and Projects, says being
chosen as a finalist is exposing his
business to new opportunities.
“I am getting more attention
Make financial decisions you will not regret.
Did you know that when creditors repossess your property, vehicle or even furniture, you
are still liable for the shortfall? Do not be reckless with your money. Spend on necessities
and not luxuries.
•
•
•
•
Prioritise your home loan or rent, and children’s school fees.
Always budget for necessities.
Never buy on impulse. This is wasteful expenditure.
Only get credit from NCR-registered credit providers.
www.ncr.org.za
Composite
from government departments
now. Before being part of the
programme, it was difficult to
approach them with business
proposals, but now they are
starting to give us attention,”
Javu says. He says he has also
gained substantial knowledge
and experience, especially during
an intensive two-week business
training session last year as part
of the programme.
After submitting their entries,
at least 60 candidates from across
the country were shortlisted and
invited to attend the training
programme, which is facilitated
by one of South Africa’s leading
academic
business
schools,
Pretoria
University’s
Gordon
Institute of Business Science.
Once completed, candidates
presented their business plans
to an independent adjudication
panel,
which
selected
18
national finalists. SAB enterprise
development specialist Octavius
Phukubye says a needs analysis
is performed on each finalist’s
business, and a customised
growth development strategy is
development for each business.
Their growth development
strategy determines their grant
funding of between R100 000
and R200 000.
“During the mentorship phase,
several
critical
interventions
are made in each business,
promoting their sustainability
and the job creation impact they
are able to make. The top three
winners are then selected by an
independent panel. The winners
receive additional grant funding
for the benefit of their business,”
says Phukubye.
The winner receives R500 000,
the first runner-up R250 000, and
the second runner-up R150 000.
Each also receives a fully
sponsored one-week international
learning business course to the
value of R100 000.
Says Javu: “I will be investing
it in my company and am gunning
for that first prize, because I
would like to open other branches
and start an internet café coupled
with a carwash.”
Since its launch 19 years ago,
SAB KickStart has benefited 22
700 entrepreneurs and has helped
start more than 3 200 businesses.
An independent impact study
showed that 64% of grant winners
from 2001 to 2005 are still in
business, with 87% of those who
received grants in 2004 and 2005
still operating. No fewer than 83%
of SAB KickStart’s alumni from
2001 to 2005 have reported that
their businesses are growing.
The average turnover of SAB
KickStart businesses has increased
by 375%. A number of these
businesses have transformed
into multimillion rand operations
employing a significant number
of people. The top three winners
will be announced during Global
Entrepreneurship week later this
year. Applications open on 1 April
and close on 30 May.
•Go to www.sabkickstart.net
www.SmallBusinessConnect.co.za
Training
produces
successful
franchisees
BY DANIEL BUGAN
HARD
WORK
pays
off.
This was the experience of
two franchisees who were
awarded their own franchises
after completing a training
programme
offered
by
franchise group Hot Dog Café.
The cadet programme
provides candidates, many
of them from disadvantaged
backgrounds, with intensive
training, mentoring and, for
qualifying candidates, funding
of up to 100% through Old
Mutual’s Masisizane Fund.
To be considered for the
cadet programme, candidates
need to have a minimum of
matric. Dumisane Nhlapho,
owner of the Hot Dog Café at
the Builder’s Warehouse in
Roodepoort’s Strubens Valley,
says he was chosen to become
a franchisee because he was
one of the top performers in
the cadet programme.
He says it was his ability to
manage a business while also
being able to work in the kitchen
that qualified him as a Hot Dog
Café franchisee. Nhlapo says he
did not know anything about
running a business when he
became a franchisee.
“I had to learn everything
from scratch – all the necessary
skills and procedures. The
training manager showed me
how to run the business on a
day-to-day basis. To this day, I
still call the training manager if
I have a problem,” says Nhlapo.
The business is now in its
fifth year as a Hot Dog Café
franchise and employs four
permanent staff members and
one part-time employee.
Deon Mvundla, owner of
the Coffee Stop in Durban’s
Builder’s Warehouse, says she
was chosen as a franchisee
after impressing the trainers
with a presentation at the end
of the training programme.
She was one of the winners.
Mvundla says it takes hard
work, ambition and dedication
to emerge victorious from the
cadet programme.
“Hot Dog Café has given
me support in everything
about the business: back
of house, front of house,
management, paperwork, as
well as assistance with the
day-to-day activities associated
with being a business owner. I
can really see myself growing
the business after such a good
start,” says Mvundla.
She has run the Coffee Stop
franchise since July 2011 and
currently employs six people.
Send
your
CV
to
applications@hotdogcafe.
co.za to be considered for the
Hot Dog Café cadet programme.
OPPORTUNITIES
April 2014 - page 9
Dual-brand fast food franchises now up for grabs
BY DANIEL BUGAN
BUSINESS OWNERS wanting
to enter the fast food market
as franchisees now have the
opportunity to operate not only
one but two franchise stores.
This, after the franchise
group Hot Dog Café recently
acquired the well-known London
Pie franchise.
The acquisition was made
possible after Hot Dog Café
became the first franchise partner
to work with the government’s
Jobs Fund in August 2013.
The fund was successfully
launched in June 2011 by finance
minister Pravin Gordhan, and
R9 billion has been set aside
for allocation over a three-year
period to finance projects that
assist with job creation.
In total, the franchise group
Derek Smith
received R35 million – R17 million
from the Jobs Fund, matched by
R18 million from Old Mutual’s
Masisizane Fund and the Public
Investment Corporation.
According to Derek Smith,
joint managing director of Hot
Dog Café, over 300 candidates
will be trained and mentored
over a three-year period.
He says this will result in
about 60 of the top candidates
becoming
business
owners
with their own dual-branded
franchises.
He further says the new dualbranded stores will cost in the
region of R495 000.
Capital funding of up to
100% for qualifying candidates
will be available through the
Masisizane Fund.
This opportunity is also
extended to entrepreneurs who
can put up their own money for a
dual-branded franchise.
So far, one pilot dual Hot
Dog Café/London Pie store has
been opened, in October 2013, in
Brooklyn, Johannesburg.
“We currently have three dualbranded stores in progress and
have had several enquiries from
interested parties,” says Smith.
He says the dual-branded
franchise offering would not
only add to the bottom line,
but would also give franchisees
the opportunity to infiltrate
shopping centres, food courts,
cinema complexes and any
locations requiring an on-the-go
food offering.
The addition of London Pie
into the Hot Dog Café stable,
which includes its sister brand
The Coffee Stop franchises, has
added to a group of nearly 200
outlets across the country.
•For more information, contact
Andy on 012 664 7213.
SA entrepreneurs on Forbes list
SEVEN young South Africans – all under 30 – made the 2014 Forbes list of 30 most promising entrepreneurs in
Africa. Out of the 800 nominations received by the prestigious American magazine, these South Africans stood
head and shoulders above the rest, having fulfilled all the stringent criteria and high standards.
YOLANDE STANDER spoke to these young bright minds.
TEBOGO DITSHEGO
The 29-year-old founder and
chief executive of Ditshego Media,
a public relations company he
started after gaining experience
in media through working as a
freelance journalist. “I’m honoured
to have been listed. The decision
to become an entrepreneur was
motivated by our current challenges
relating to unemployment, which
is something that is felt globally.
There is a need for more youngsters
to start businesses. ”
•Go to www.ditshegomedia.
co.za for more information.
JOHATHAN LIEBMANN
A real estate developer and
chief executive of Propertuity, he
started his business five years
ago with his first development
– the award-winning urban
regeneration project Arts on Main
Maboneng Precinct. The company
uses art, design and architecture
to transform degenerated areas.
Says the 29-year-old: “I feel
very honoured to be recognised
among some of South Africa’s
great young entrepreneurs."
•Go
www.propertuity.
to
co.za for more information.
ALEX FOURIE
At 19, Alex started iFix –
an out-of-warranty Apple and
Samsung service centre – and has
grown the businesses to becoming
the biggest centre of its kind in
Africa. Now, at only 26, he employs
85 people and, through his eight
branches, does about 6 000 device
repairs every month.
“I feel very honoured and
humbled to receive this prestigious
award. ”
•Go to www.ifix.co.za for more
information.
ZAHEER CASSIM
A journalist with a Master’s
diploma from Columbia’s
Graduate School of Journalism
and experience in media, Zaheer
started One Way Up Productions
about two years ago to tell stories
through multimedia
The 29-year-old says he is
honoured to have made the list
and that he aspires to be on the
Forbes billionaires under 40 list in
the future.
•Go
to
www.onewayuppro
ductions.com
for
more
information.
ASHLEY UYS
The
30-year-old
biotechnologist founded Medical
Diagnostech, which develops
various medical testing kits – from
malaria, to pregnancy, to sexually
transmitted diseases (STDs) –
for disadvantaged communities
in Africa.
He started his first business at
24 and – through “determination,
perseverance and general industry
knowledge” – built his business to
where it is today.
•Go to www.medi-tech.co.za for
more information.
ADII PIENAAR
The founder of WooThemes,
a company that builds products
for the open-source content
management system WordPress,
this 28-year-old says he was
surprised to discover that he made
the list.
Pienaar believes there are
three primary factors that have
helped him to be successful.
“Taking a chance, working
incredibly hard, and always paying
it forward in whatever way I can.”
•Go to www.woothemes.com for
more information.
BUSINESS INCUBATION
page 10 - April 2014
SMALL BUSINESS CONNECT
Birthplace of
small furniture
manufacturers
AS part of our monthly focus on incubators, we
spoke to the Furniture Technology Centre Trust,
perhaps better known to some as Furntech.
We spoke to Iegshaan Ariefdien, the business
incubation manager, about how it is assisting
entrepreneurs to grow their businesses.
What does your incubator’s
name mean?
The Furniture Technology
Centre Trust, trading as Furntech.
We are a registered trust
and our focus is on furniture
manufacturing businesses and
technical skills training for the
furniture manufacturing industry,
hence the name.
How would you describe
your focus?
Furntech is in the strategic
business of wealth creation (small
business development) and human
resource development (training) in
the furniture and wood products
sector. Our key objectives are to:
•Develop Furntech into a
sustainable business.
•Increase the number of startup
small businesses by incubating
new business and expanding
existing ones.
•Review Furntech’s capabilities
in the context of regional and
Africa’s needs, and align them
with requirements in the sector.
•Develop the skills levels
of sector’s employees and
new entrants.
•Develop a pool of suitably
qualified Furntech staff.
Where are you based and from
which areas do you recruit new
incubatees?
Furntech has a national
footprint. The individuals or
businesses come from the areas
where our centres are located (Cape
Town, Durban, Johannesburg,
Mtata, Umzimkhulu and White
River) and sometimes from
surrounding rural areas.
Which businesses are best
suited to join?
We cater mostly for startup
and emerging businesses and
those small businesses that
operate from their backyards and
garages who cannot afford the
industrial equipment to grow their
businesses.
How do they apply?
Business owners can apply
through our website, email, phone
or face-to-face at our centres.
They need to submit a
completed application form with a
business plan or business concept,
a copy of their ID and, if the
business is registered, business
registration documents.
How long do businesses stay
in your programmes?
The business enters a threemonth pre-incubation period;
hereafter, if it has met the
milestones agreed upon, it enters
a 24-month incubation period.
What are the two key elements
of your support that sets you
apart from other incubators?
Our technical mentoring and
technical training, which are
in-house, and our accreditation
with the Fiber Processing and
Manufacturing Sector Educational
Training Authority (Seta).
How long have you
been going?
We were established in 2000,
and accepted our first clients
in 2001.
How many incubatees are now
in your programme?
We can accommodate a total of
74 businesses at our various centres.
What are your fees?
The fee is 10% of gross
monthly turnover; for this fee, the
business receives:
•Technical mentoring, coaching
and advice.
•Advice and guidance on
product design, materials and
prototyping.
•Assistance
with
product
quality assurance.
•Advice on health, safety and
environmental requirements for
machines and the workshop.
•Access to a fully equipped
workshop
with
all
the
woodworking machines.
•Technical
training
needs
assessments and guidance.
•Technical training that enables
the incubatee to accumulate
credits towards the National
Certificate Furniture Making
qualifications at the levels NQF
2 to 4.
•A lockable private business
unit to operate your business
independently.
•Access to a shared showroom to
display products.
•Access to a shared administration
area and computer for business
administration.
•Access to limited internet.
•Access
to
shared
receptionist services.
•Marketing of your business on
Furntech’s website, at local and
national exhibitions.
Iegshaan Ariefdien, business incubation manager at Furntech, says they lay the foundation for growth.
•Facilitation of and direct
business skills training and
business mentoring.
•Business and management
support services.
What commitments do
incubatees make before they
enter your programme? And
what commitment do you make
to them?
The only commitment required
from the incubatees are hard work,
dedication and the desire to achieve
success. Our commitment is to
provide an enabling and protective
environment, with people who are
passionate and skilled to assist
your business to grow.
What is the average sales
of your incubatees after
on, two and three years in
your programme?
Our clients are in different
business sectors. Their sales
figures vary considerably and are
dictated to by the industries they
are in and their business size.
What is the best thing you
have heard someone say about
your incubator?
Alvin Raghunan, Director
at New Harvest Furniture, said:
“Furntech is the birthplace of our
business. We are very grateful for
this wonderful programme that
we have been a part of.”
And the worst?
“The policies and rules
applicable to workshop operation
and usage of machines and
equipment is too rigid.”
What was your biggest success
thus far?
Winner and runner-up at the
Department of Trade and Industry
Annual
Technology
Awards
since 2007.
And your biggest failure?
The closing of our George
centre, which was located at the
Nelson Mandela Metropolitan
University, which was more than
5 km out of town, with no public
transport and no access to markets
for clients.
Why are you involved in
supporting new businesses?
Our incubation programme
seeks to ensure that emerging
and existing small businesses in
wood products and the furniture
industry overcome the challenges
they face while at the same time
laying the foundation for survival
and growth of these businesses.
The programme addresses a
number of socio-economic
needs; these include:
•Creating jobs and wealth.
•Fostering entrepreneurial spirit
in communities.
•Diversifying local economies.
•Building or accelerating growth
of local industry clusters.
•Creating business and retention.
What is your biggest wish
for improving support to
entrepreneurs in South Africa?
South Africa has some of
the best strategies and policies
in the developing world to
grow small businesses and
encourage
entrepreneurship.
However, the bottleneck is
the lack of understanding and
implementation. If we can have
a co-ordinated implementation
strategy to grow and encourage
entrepreneurship,
the
small
business sector’s contribution to
South Africa will be phenomenal.
•For a comprehensive list
of incubators, go to www.
SmallBusinessConnect.co.za/
lists
Incubation benefits owner
THROUGH its training and
business incubator, the Furniture
Technology Centre Trust (better
known as Furntech) has assisted
many business owners in the
furniture and wood products
sector. Hendrick Rankhododo is
one of these business owners
who being assisted.
What is the name of
your business?
The name of my business is
V&H Bono.
How long have you
participated in the incubator
programme and when will
you exit?
My business has been in the
programme for ten months now.
We exit in June 2015.
How much did your turnover
and profitability grow after
joining the incubator?
My business was not
operational before. Operations
only started after joining the
incubator in Johannesburg.
For the first five months, the
business’ turnover was between
R90 000 to R100 000.
In the last five months, this
has gone up by 50% and is now
about R150 000 per month.
Hendrick Rankhododo
What are the best
benefits you’ve had from
the programme?
Access to machinery. All
the machinery required in our
production is now at our disposal.
The incubator provides a safe,
clean working environment.
What would you suggest
could be added to the
programme to enhance it?
Working in a factory, we
sometimes have a bottleneck on
some of the machines that are
mostly used by all businesses. I
suggest that a second machine
be added, especially those most
used for our production flow.
ADVICE
www.SmallBusinessConnect.co.za
April 2014 - page 11
Can entrepreneurship be taught?
BY ALEX ANTONITES
WHEN we read “entrepreneurship”
and “training” in the same
sentence, a number of people
frown. As the old question goes,
“can entrepreneurship be taught?”
The answer is a well-prepared
YES, based on over 60 years of
research findings.
Individuals can be trained
to be more entrepreneurial, but
keep in mind not all of us are
entrepreneurs.
It is unrealistic to expect that
a quick-fix training intervention
will make an entrepreneur of you
in three days. Skills development
is just one part of learning that
shapes
your
entrepreneurial
potential and intent. To be more
entrepreneurial requires very
specific skills sets in order to
enhance your entrepreneurial
performance, and this applies to
all stages of the process – from
startup to growth-phase.
Every stage also requires
different skills sets coupled with
advanced methods of learning as
you progress.
You don’t need a degree
or diploma to make it in the
hard world of business, but the
world is rapidly changing and
becoming increasingly complex
and turbulent. Relevant skills
development equips you with
the tools to play in this complex
game called business and/or
entrepreneurship.
Entrepreneurship is an applied
field; to learn in the entrepreneurial
space requires action application
after knowledge.
A mere theoretical account
of what entrepreneurship, the
entrepreneurial
process
and
a business plan is something
learners can Google and read on
their own.
Skills development requires
applying what you have learned in
the entire training process. Skills
should include entrepreneurial
skills (e.g. creativity, innovation
and opportunity finding) as well
as small business management
skills (e.g. general management;
marketing and sales; financial
management; business modelling;
operations; legal; communication;
and human capital management).
The
latter
should
be
contextualised in the small
business environment and not
merely be reconfigured corporate
training.
The skills obtained from
entrepreneurship
training
–
even very practical ones – are
not enough for one to claim
entrepreneurial success. Your
experience over time, trial and
error, and lifelong learning shapes
success at the end.
We don’t believe in shortterm “feel good” entrepreneurial
sessions where the lecturer
recites from a foreign textbook
and use himself or herself as the
case study. We also don’t believe
in “death by PowerPoint”.
Substance and depth in
training as well as customisation
to relevant branches of industry
makes for a far more positive
learning experience, especially if
relevant technology is applied in
the process.
In
this
context,
the
best teachers are or were
entrepreneurs who either failed
or made it. I firmly believe that
paper case studies are old school
(we all know what Sol Kerzner,
Herman Mashaba and Patrice
Motsepe did to make it); in class,
we use live cases that are relevant
to the audience (e.g. specific to
age, industry and development
stage).
If you want to improve your
entrepreneurial
performance
and eventually achieve success,
spend your money wisely on
programmes that add real value.
Time is an issue for all
entrepreneurs. Taking the time
to sit in a class for five days could
kill your business. Therefore,
an online course with direct
application in your business
could benefit your experience by
learning every day in your own
time and pace.
So make sure that you
invest in skills development
that has substance, reflects
entrepreneurial principles, fits
your profile and addresses your
skills gaps.
•Alex Antonites, senior lecturer
in the Department of Business
Management and the chair
for entrepreneurship at the
University of Pretoria, runs
an online course aimed at
entrepreneurs
starting
a
business. Enrolment closes
end of April 2014. The cost for
the course is R4 950. For more
information, call 012 434 2500.
Alex Antonites
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STARTING OUT
page 12 - April 2014
SMALL BUSINESS CONNECT
Are you cut
out to be a
fabric seller?
BY PAUL CRANKSHAW
WHILE the textiles industry has
in recent years been in the news
for all the wrong reasons – cheap
imports, factory closures and job
losses – there is nonetheless a
good market out there for a small
business selling fabrics.
Specifically so if the owners
are, so to speak, cut out to be
fabric sellers. Fabric retailers
usually operate from a shop with
a showroom and an office, offering
customers a wide range of fabrics,
lining materials, needles, cotton
and trimming materials.
The business of fabric retail
is divided into two main areas:
soft furnishing fabrics and
dressmaking materials.
Soft furnishing fabrics are used
in curtains, sheets, cushions and
furniture upholstery, for instance.
A fabric retailer serving this
segment could sell to furniture
makers, but could also offer a
make-up service for curtains
and soft furnishing items such
as cushions, to co-ordinate the
colours and styles. Soft furnishing
retailers could also offer a design
service to help customers choose
fabrics that fit in with their
home decor.
On
the
other
hand,
dressmaking materials are fabrics
for dresses and clothing, so if you
are in this segment, your business
could also have a link with a
dressmaker or alteration service.
Your clients could select a fabric
and pattern, and then have the
item made to measure.
IS IT FOR YOU?
Fabric sales depend on trends
and fashions; so, as a fabric
retailer, you need to be interested
in these trends and styles so that
you know what customers are
looking for. This interest in interior
design and fashion will also help
you advise your customers on
mixing and matching fabrics and
accessories.
You also need to have some
technical knowledge about how to
use different fabrics and what they
are most suitable for. In addition,
you need to be skilled in using
patterns and in sewing.
Care and attention to detail are
also necessary in this business, to
ensure that any fabric you sell is
suitable for its eventual use.
You need skill and creativity in
choosing fabrics and items to sell.
At the same time, you may need
to be polite and diplomatic when
it comes to advising customers to
select a fabric that will fit in with
its surroundings and its use.
This will be useful if, for
instance, a customer wants to
cover a settee with the wrong
fabric, or make a garment out of
fabric that will not suit the design.
Starting a fabrics business
requires stocking your shop with
fabrics you think will sell. Besides
having the funds available to
invest in your stock, you will also
have to make important decisions
on which stock to carry – not an
easy task, considering that you
As a fabric retailer you need to be interested in fashion trends and styles.
may not have much experience in
doing so and that you will not have
any sales history to guide you in
your decision-making.
HOW’S THE MARKET?
The demand for soft furnishing
fabrics has grown as part of
growing consumer interest in
home improvements. This could
be good for your business. As
South Africa’s middle class grows,
more people can afford to spend
money on such products.
The import of cheap Chinese
fabrics and clothes into South
Africa have made these products
more affordable to the local
market, and should make it easier
for retailers to make a profit on
their fabric sales. However, it
has also meant that jobs in local
clothing manufacturers have
been lost.Many people make and
repair their own garments, and
cover their own furniture, either
out of necessity or as a creative
hobby, creating a steady demand
for fabrics.
Your customers could include:
Individual consumers wanting
to buy fabric for home furnishings
or making dresses. Interior
designers, who may require fabric
samples or may place a regular
order for curtaining, curtain lining
and other soft furnishing materials.
Fashion
designers
and
fashion design students looking
for material and ideas for their
designs. Check out the latest news
for the clothing sector by visiting
the website of the National
Clothing Retail Federation of South
Africa, which aims to promote
interaction among retailers, to
conduct research for the industry,
and to strengthen relationships
with
government,
consumer
bodies and labour organisations.
WHAT ABOUT TRAINING?
Formal training is not strictly
necessary for anyone running
a fabric shop but, as with many
business ventures, it will be useful
to have a relevant qualification or
workplace experience.
Diploma courses in textile
technology and design are
available at some universities of
technology. Check online to find
out which agencies offer training
in your area. There are also retailrelated courses available.
•Go to www.ncrfsa.org or call
021 531 9551.
•Go to www.cobwebinfo.co. za
for more by Paul Crankshaw.
Keep it simple and save all of your business information in the cloud
BY MARCEL OUDEJANS
IF you had been using a computer
a decade ago, you’d remember
saving your documents to a stiffy
disk, popping out the disk and
physically moving your files to the
next computer.
Life became slightly easier
when your computers were
networked together; however,
if you wanted to get a file to a
computer not on your network, you
still needed move a disk around.
And while the capacity of the
disks became bigger and their
size became smaller – from CDs,
to DVDs, and eventually to USB
‘flash’ drives – you still had to
face several potential problems:
making sure you saved the file
properly, backing up, and getting
the files to someone not on
your network.
Fortunately, current technology
has dramatically improved the
situation and, together with the
improvement of local broadband
internet services, managing and
sharing files has become extremely
Marcel Oudejans
Dropbox offers secure storage
simple and cost-effective.
If you’re still relying on moving
files on a disk or drive, or even
emailing big files back and forth,
it’s time you consider saving your
files in the ‘cloud’.
The cloud is a technical term
that basically means that you can
access a whole network of servers
on the internet, where your files
can be saved and shared, while
still maintaining a high level of
security and confidentiality.
There is an ever-increasing
number of cloud hosting solutions
available. Some are cheaper than
others, and some are easier to use
than others.
One of the more popular
solutions is Dropbox (www.
dropbox.com),
which
is
a
way to save your files and
photographs online.
It also has applications
that allow you to access and
synchronise your files with almost
all computer operating systems
and mobile devices.
Any file uploaded from one
device or computer will be almost
instantly accessible on all your
other devices, so think of it as a
magical disk in cyberspace.
If you’re worried, consider that
Dropbox uses secure protocols to
protect your files and also offers
a two-step verification process
to prevent unwanted access to
your data.
If you want several people
to access and edit files, Dropbox
allows you to share files or folders
with other people.
If they make any changes, you
will immediately be able to access
the updated information (literally,
similarly to a network).
You are also able to share files
in read-only mode, so that they
cannot make any changes.
In
addition,
Dropbox
automatically saves different
versions of files, which is very
useful if you want to go back to
an older version of a file, making
it an effective back-up solution –
although you should never rely on
only one back-up solution.
If you have a mobile device
with a camera, Dropbox can upload
your photos to your drive, so that
you can access them anywhere.
Cloud solutions such as
Dropbox certainly make file and
data management much easier.
While you’ll need reasonably fast
internet bandwidth and large data
bundles, for the cost, it is certainly
worthwhile.
With Dropbox, your first 2 GB
is free, thereafter you pay about
R110 per month to save 100 GB
(that’s about 20 000 photographs).
•Marcel
Oudejans
is
an
entertainer, keynote speaker and
soft skills trainer. Go to www.
workplaylife.co.za for
more
tips on how to be productive.
REVIEW
www.SmallBusinessConnect.co.za
Book Review
How to live a happy life
CHRISTOFF OOSTHUYSEN
reviews Winning Without
Losing – 66 strategies for
succeeding in business while
living a happy and balanced
life by Martin Bjergegaard
and Jordan Milne. Published
by Profile Books (2013).
DRIVEN by the desire for success,
many entrepreneurs fall into the
trap of working harder and harder.
They are so focused on achieving
the good results they aim for in
their businesses that they forget
about creating a fulfilling life for
themselves.
In many ways, they allow their
business to overwhelm the rest of
their lives.
Winning
Without
Losing
is an easy-to-use guide for
entrepreneurs and employees who
have realised that balance in life
is more likely to deliver success.
Indeed, it’s not about working
harder or packing in the hours.
In following the advice by
Bjergegaard and Milne, you’ll
learn how highly successful
entrepreneurs “won the race to
the top without losing the battle
for balance”.
The book is based on interviews
with 25 successful businesspeople
from around the world who have,
according to the authors, found
ways to “have it all”. These
entrepreneurs have not only built
hugely successful businesses,
but have also maintained an
approach that allowed them to
create happiness in other areas of
their lives.
They start the book with a
straightforward list of myths
around hard work and sacrifice as
necessary ingredients for success.
And they are correct in their
observations. For instance, it’s a
myth that the harder you work,
the more money you’ll make and,
similarly, that sacrifice will lead to
success. These notions are based
on having to lose something from
the rest of your life so that you can
succeed in business.
So, what will allow a balance
where you can keep “winning
without losing”?
The authors studied the
approaches of these successful
businesspeople and summarised
them
into
66
easy-tounderstand tips.
This
approach
of
explaining what works through
straightforward
and
concise
advice sets the book apart. It is
really easy to read... even during
those odd moments between other
commitments.
Most tips are three or four
pages long, so you can quickly
get into a topic, where you get
practical advice on what you could
do in your situation.
But it is not only the
organisation of the book into 66
short “strategies” that makes
it worth reading, it is also the
practical nature of the tips, based
on practices that are proven to
work. Take the tip Make a “today”
list. Many entrepreneurs find that
because they have the freedom
to determine their day and do
not have a boss to tell them to
go home, they often work much
longer hours than they should.
There is always something
more to do, so they tend to do it,
even when the day is already over.
This tip on making a "Today list"
comes from IT entrepreneur Steve
Robbins, who says: “Decide in the
morning what you will consider a
April 2014 - page 13
full day’s work today. When
you have done that, you can
stop thinking of work.”
In following this
tip, you’ll find
that you are not
tempted to
keep asking
what more
needs
to be
done, but
that you find
it possible to ask
what must still be done
today only. In doing so, you free
time for the other key aspects.
You may want to put this book
on your reading list if you do not
want to be in the
position
of founder
of Walmart,
Sam
Walton, who
is quoted
in the book’s
introduction.
On his deathbed,
Walton said “I blew
it” when he realised
that he had lived a life of
huge business success but
barely knew his children
and grandchildren.As shown
by these 25 entrepreneurs, it is
possible to have business success
while maintaining a balanced life.
Trade Opportunities Centre
The Department of Trade and Industry (the dti) through the
Trade Opportunities Centre (TOC), assists South African
companies across sectors to identify international business
opportunities. The TOC is responsible for matching South
African exporters with international buyers seeking to purchase
goods and services.
The TOC offers the following services:
•
Match-Making - the matching of international
business opportunities to export-ready South African
enterprises; and
•
Trade Lead Bulletins - the weekly publishing and
distribution of international business opportunities to
South African enterprises.
To subscribe to the dti Trade Lead Bulletin
e-mail: [email protected]
For more information, contact:
Percy Ngobeli, Tel: (012) 394 5792 or e-mail: [email protected] or
Martha Mahlangu, Tel: (012) 394 1179 or e-mail: [email protected]
the dti, empowering industries and
broadening economic participation
the dti Customer Contact Centre: 0861 843 384
Website: www.thedti.gov.za
page 14 - April 2014
SMALL BUSINESS CONNECT
Use seasoned entrepreneurs as mentors
BY NABELAH FREDERICKS
THE difference between a
successful entrepreneur and a
failed business is an emotionally
invested mentor.
So says entrepreneur Allon
Raiz, chief excitement officer at
business incubator Raizcorp that
assists over 400 businesses in
Africa. He was speaking at the
Enterprise Development Expo
2014 hosted by Smart Procurement
World, in partnership with Absa,
at the Cape Town International
Convention Centre last month.
The conference, which was
the first of its kind in the Western
Cape, is aimed at assisting big
business and government to tailor
their enterprise development
programmes to better develop
small
suppliers.
Raiz
was
addressing attendees of the
conference about what enterprise
development programmes lacked
and what was needed to rectify
this. “Success has nothing to do
with a business plan, but with
character and ability to fight
and fight and fight and because
of somebody's belief in you,”
says Raiz.
He based this statement on
real-life case studies that both
involved his own experiences.
He compares the lives of two
individuals who both started off
with priviledged lives and the
started their own businesses.
The difference between the one
whose business was a success
and the failed business was an
“emotionally invested mentor”.
He made a second comparison
of where he compared the lives of
two underprivileged individuals –
one took over her family business
after her father died and the other
started a business after attending a
course. The former was successful
and the latter is now working in
a bakery according to Raiz. The
difference, he says, is once again
an emotionally invested mentor.
This was something he felt was
lacking in enterprise development
programmes and stressed that not
everyone that has a business idea
is an entrepreneur, that mentors
with academic experience but no
actual experience in running a
business were not necessarily the
best-suited to coach entrepreneurs
and that entrepreneurs required
support in all aspects of their life
as running a business is not a
normal nine to five job.
“Sometimes we focus on the
experience in industry and look at
academic qualifications and people
who have just left university and
now mentor entrepreneurs who do
not have that experience instead
of finding someone who has actual
experience in running a business
in addition to having the academic
qualifications,” says Raiz.
He further listed an example
where 31 mentors were asked to
work out net profit and only two
were able to do so.
He also pointed out by signing
up the right kind of people for
Allon Raiz of Raizcorp was one of the speakers at the procurement expo.
the
enterprise
development
programmes big business would
create jobs for all those people
involved in big businesses, that
were not necessarily suited to
run business.
Another prominent speaker
at the event was Shell South
Africa's procurement manager,
Annelien Herringer. With 24 years
of experience in the procurement
sector,
Herringer
repeatedly
stated that the role of procurement
managers was changing and that
a definite way to ensure progress
was for the transformation
manager
and
procurement
manager to work together instead
of on opposing sides.
“Cost
reduction
when
procuring is becoming less of
a factor. The supplier needs to
deliver quality.,” says Herringer.
Communication
was
also
unclear between big business and
its suppliers and 90% of disputes
arose from unclear deliverables
according to Herringer.
“ The biggest supplier is also
not necessarily the best supplier.
Invest in your suppliers, it takes
time,” Herringer told her fellow
counterparts.
She said that Shell looked at
the supplier's ethics and basic
business acumen skills as the
supplier's credibility would be a
reflection on the big business.
Other big businesses present at
the event included Pioneer Foods,
Transnet and various government
departments.
The Johannesburg leg of the
expo will be held in September
2014 at Gallagher Convention
Centre in Midrand.
•Go to www.raizcorp.com or
www.smartprocurementworld.
com for more information.
Small business can
learn much from
procurement processes
BY VUYO MABANDLA AND
NABELAH FREDERICKS
MORE than 800 attendees and 100
small business exhibitors attended
the inaugural Smart Procurement
World Western Cape held in Cape
Town last month, with the aim
of furthering efficiency in the
procurement sector.
The event had well-known
media
personalities
Kieno
Kammies and Jeremy Maggs as
panel moderators. The conference
offered delegates an opportunity
to benchmark themselves against
other companies and to evaluate
their strategies to understand
the industry’s current position
as whole and what the next year
will bring.
Both the public and private
sectors
shared
information
around procurement policies and
approaches.
According to Alan Winde,
Western Cape Minister of Finance,
Economic
Development
and
Tourism, the small business
sector is in “dire need to further
work with credible procurement
professionals in acquiring supplies
and other services” in order for
them to sell on to government and
corporate organisations.
“Many small businesses face
a unique challenge of meeting
the requirements needed to
do business deals with major
stakeholders. This conference is
important, because it introduces
new ways for the procurement
industry and business to work
together,
using
innovative
solutions to existing problems,”
he says.
Winde says existing problems
“are more than likely to lead
to more failure, a slump in the
local economy and, subsequently,
job loss”.
The department plans to
invest R18 billion to buy from and
develop local suppliers, at regional
and provincial levels.
“This shows our readiness as
government to work long term with
our country’s business. We want
procurement officials, business
and suppliers to work harder to
minimise mistakes and contribute
more to the local economy,” says
Winde. According to Annelien
Herringer, procurement manager
One of more 100 small business exhibitors at the inaugural Smart Procurement World Western Cape expo.
at Shell South Africa, the lack of
skills in bookkeeping, maintaining
long-term supplier relationships,
and investing in effective channels
to keep business and supplier
relationships intact contributed
to the failure of many small
businesses.
“Business
skills
create
credibility. Credibility enables
an environment in which a joint
procurement strategy can be
formulated,” says Herringer.
During
her
presentation,
Herringer stressed that it was
important to invest in suppliers to
ensure that they had the necessary
skills to deliver.
Small Business Connect spoke
to some business owners at the
event. They say they sometimes
struggle with basic procurement
processes such as sourcing
supplies, drafting contracts, and
managing long-term contracts.
Ronald Hein, the owner of
PE&E Business Solution, says:
“We have been in business for
ten years. We have had trouble
accessing new markets, and
today serves as springboard to
prospective buying and selling.”
•Go to www.smartprocurement.
co.za, www.westerncape.gov.
za and www.shell.com for more
information.
ADVICE
www.SmallBusinessConnect.co.za
April 2014 - page 15
Get data security for personal
info or risk losing your business
BY DANIEL BUGAN
BUSINESSES that collect, store
and share personal information
of customers or other parties
will be most affected by the
Protection of Personal Information
(Popi) Act, which was signed into
law by President Jacob Zuma in
November 2013.
Popi regulates how anyone who
processes personal information
must handle, keep and secure
that information. Those found to
be in contravention face possible
prosecution as well as a fine up to
R10 million.
According
to
Advocate
Fay Mukaddam, president of
the
Johannesburg
Chamber
of Commerce and Industry,
all types of businesses are
affected, but those most at risk
are businesses operating in the
healthcare, financial services and
marketing sectors.
She says small businesses
should not make the mistake of
thinking that they are excluded
from complying with Popi.
“If small businesses are
controlling databases of employees
or clients, regardless of size, they
would need to introduce measures
as per the Act, so as to protect
such information from being lost
or open to unauthorised access.”
type
of
protected
•The
information their business deals
with. For instance, the sensitivity
of information dealt with by a
bank differs from that dealt with
by a local supermarket.
•Staff training in various areas,
including how to deal with
information storage as well as
how to avoid being tricked into
sharing protected information
by scam artists.
•Physical security measures
at their workplace, as well as
whether or not their information
technology infrastructure is
secure enough to protect this
information.
Is the insurance policy and
cover relevant or might it need to
be extended?
Businesses have one year
from the commencement date
to ensure compliance with Popi.
“This allows businesses time to
craft and embed relevant protocols
in their businesses, to train staff
and to communicate with all their
stakeholders. This will also allow
sufficient time for the intended
Regulator to be established and
staffed,” says Mukaddam.
•You
can
contact
the
Johannesburg
Chamber
of
Commerce and Industry on 011
726 5300.
Advocate Fay Mukkadam
Looking for clients?
If found in
contravention,
fines of
R10 million could
become payable
Find them at
Shanduka Blackpages is an innovative online
portal that links procurement managers to 100%
black owned companies.
Where corporate buyers meet black suppliers.
www.shandukablackpages.co.za
0861 725 225
With a fully searchable database of verified
company profiles, online training courses,
access to discounted services, online enterprise
development tools and a range of funding service
providers, Shanduka Blackpages is an essential
resource for both buyers and sellers.
BETELGEUSE ADVERTISING 4161
Although it might take time
for businesses to fully address
all the prescripts as required by
the Act, Mukaddam says the best
thing to do is avoid delay and start
considering the Popi framework
in relation to your business’ size,
nature and complexity as soon
as possible, because ignorance of
the law will not be accepted as
a defence.
“In addition to jail terms
and fines, there is also the
possibility that businesses could
face additional civil claims from
affected parties,” says Mukaddam.
She says businesses could
face considerable reputational
damage, and might well lose
their customers and might fail to
attract new ones. A good way for
a business to ensure they it is not
contravening Popi is to examine
the manner in which it contracts
with staff, external service
providers, and other stakeholders
who might have access to this
protected information.
According
to
Mukaddam,
business owners can judge
whether they are ready for
compliance with the Act by
considering:
ADVICE
page 16 - April 2014
SMALL BUSINESS CONNECT
Can employees withdraw resignation?
BY BARNEY JORDAAN
RESIGNATION is a thorny part of
the employment relationship that
often causes unnecessary strain.
Two common questions about
resignation are if an employee may
withdraw a notice of termination
with the employer being forced
to accept the withdrawal; and
if there is a difference between
desertion and resignation without
proper notice.
Resignation, or termination
on notice, is known in law as a
“unilateral act”.
This means it does not need
the co-operation of the person at
whom it is directed to be effective.
This is different from the
conclusion of a contract, for
instance, which requires a
“meeting of minds” to be valid.
Being a unilateral act means
that a resignation is valid once it
has been given, provided only that
the employee was in a fit state of
mind at the time of resignation.
It also means that the
employee is not able to withdraw
the resignation at will.
He or she needs the
employer’s consent to withdraw
the resignation.
The employer is under
no obligation to agree to the
withdrawal.
The contract simply comes
to an end at the expiry of the
notice period.
If the employee resigns
without giving proper notice, it is
still a unilateral act that signifies
that the employment relationship
will come to an end.
In this case, the employee
is also not able to withdraw the
resignation.
However, if the employee
resigns in a huff, the employer
would be well advised not to
simply say “good riddance”.
Instead it is advisable for
the employer to meet with the
employee and try to understand
the reasons behind the resignation.
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:
It may be that the employee’s
situation at work has become
intolerable and, if the employer
does not take reasonable steps
to remedy the situation, it may
open itself up to a complaint of
constructive dismissal.
DESERTION
Desertion means that the employee
leaves his or her workplace without
permission with the intention of
never returning.
It therefore goes beyond being
absent without leave or, as it is
better known, “AWOL”.
The intention to return
must be made clear through the
employee’s words or conduct.
For instance, if an employee
A resignation is
valid only once
it has been
given
leaves
without
permission
and is then found working for
someone else, the employer may
conclude that the intention not
to return is evident from the
employee’s conduct.
An employee who “resigns”
from his or her employment
without proper notice is, strictly
speaking, deserting.
In theory, the employee could
be “charged” with desertion, but
this will in most cases be a waste
of time.
The employer can simply rely
on the fact that the employee has
repudiated his or her contract
by leaving without tendering a
proper resignation.
This is a form of misconduct,
and the employer could dismiss
the employee for this reason.
However, this assumes that
the employer has sufficient
evidence that the employee has
indeed resigned and failed to give
proper notice.
A more pragmatic option may
be to wait until the contractually
required notice period has run
out, upon which the employment
relationship will come to an end.
•Go to www.labourwise.co.za for
more labour advice by Barney
Jordaan. He is a co-founder
and director of Maserumule
Consulting.
Be Proudly South African. Buy local to create jobs.
www.proudlysa.co.za
Barney Jordaan.
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How long have you been an
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if any? Write “0” if you are not, or
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April 2014 - page 17
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airconditioning
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owners? Select how many stars you
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or buy it over the counter, how much
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know about or have used?
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current business responsibilities?
Number in order of priority from one
to five.
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25% but less than 50% black-owned)
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REVIEW
page 18 - April 2014
SMALL BUSINESS CONNECT
'Van-bakkie-minibus' combo on steroids
BY WALLACE DU PLESSIS
THE Hyundai H1 Multicab 2.5
TDi is a mix of van, bakkie and
minibus – it’s almost like a
double cab on steroids.
The H1 comes in three
variations:
van,
multicab
and bus.
You can also choose between
petrol and diesel, but I advise
the diesel.
The Multicab is like a double
cab bakkie. It has two rows of
seats and a closed load area at
the back.
The interior features all the
bells and whistle.
This, from electric windows
to airconditioning with underseat vents.
It also has courtesy lights
for the rear doors and a good
sound system.
The seats are comfortable and
the driver’s seat is adjustable.
There is a great feeling of
space too, making the H1 a very
good touring vehicle.
Some of the interior finishes
are a little hard.
The bulkhead also cannot be
removed quickly to accommodate
longer loads.
The longest effective length
that can be put into the cargo
area is approximately 1.8 m.
The H1 drives like a big car
with excellent cornering and
handling, and the 2.5 diesel
engine is both frugal and
responsive.
Fuel consumption is around
9.8 litres per km in general use,
but drops to around 8 litres per
km on the open road.
The build quality on the
Multicab is excellent.
The exterior styling is very
clean and pleasing to the eye.
The automatic diesel model
as tested costs R388 900.
However, the petrol model is
cheaper at R319 900 but comes
in a manual only. The automatic
diesel panel van is R351 900 and
the bus R446 900.
The H1 comes with a five-year
or 150 000 km manufacturer’s
warranty, a five-year or 90 000
km service plan, and five-year or
150 000 km roadside assistance.
There
are
not
many
vehicles that come with a fiveyear warranty.
•For more motoring reviews by
Wallace Du Plessis, you can go
to www.wheelswrite.com.
The Hyundai H1 Multicab comes
in three variations - van, multicab
and bakkie.
Get good value for your money
BY WALLACE DU PLESSIS
GWM’s Steed bakkies really
are extremely good value for
money. You can buy a brand-new,
good-quality single cab Steed
bakkie for under R150 000.
We tested the 2.0 Vvt diesel
a few months ago (October 2013
issue) and said it was good value.
This petrol version is even
better value for money. But
beware, time is running out –
the Steed 6 will be coming out in
winter 2014 and will cost probably
15% more.
The Steed 5 should remain
available for the rest of this year
and perhaps into 2015.
The increased cost of the
new model is caused in part by
the rising quality and by a slight
increase in size.
As far as I can tell, the Steed
5 is as good as any previousgeneration Japanese bakkie.
Why a petrol bakkie?
This is the subject of a full
report in the next edition but, in
a nutshell, this petrol bakkie is
almost R50 000 cheaper than its
diesel equivalent and, in town,
petrol is probably as economical.
Only on the open road does
diesel beat petrol.
I was very impressed with the
fuel consumption of around ten to
11 litres per 100 km.
It is not very powerful, but
does the job. Acceleration is
adequate but a little laboured
when fully laden.
The road-holding reminds one
of the previous KB, which is a
good thing.
This bakkie is a pleasure to
At less than R150 000, the steed bakkie is good value for money.
drive. The weight of the power
steering seems to be just right.
Gear changes are easy and smooth.
I found the brakes well
balanced and fade-free under
normal circumstances.
The Steed comes equipped
with airconditioning, radio and
power steering as standard.
The cabin is typical of a
workhorse bakkie – fairly spartan,
but well put together and with cup
and bottle holders and various
storage spots.
The seats are comfortable and
the steering position relaxed.
The Steed 2.2 is also available
in five colours.
The double cab has leather
seats, electric windows, heightadjustable
steering,
and
alloy wheels.
I did not hear or feel any
rattles, squeaks or evidence of
shoddy workmanship or materials.
At less than R180 000 for this
double cab, it is a no-brainer.
It has no real competition at its
price point.
The Steed 5 2.2i Single Cab
costs R144 900, the Steed 5 2.2i
Double Cab Lux R176 900, and
the 2.5 turbodiesel single cab
4x2 R194 900.
The 2.0 Vvt 4x4 DC we tested
last year cost R274 000.
Also look at the single cab
Nissan NP300 (R159 900), the
Mahindra Bolero (R144 900), the
Tata Xenon (R149 995) and the
Foton Thunda.
All Steed bakkies come
with a three-year or 100 000
km warranty.
Route planning cuts cost
BY WALLACE DU PLESSIS
YOU could save your business
lots of time and money if you
plan your delivery routes better.
The science behind route
planning is called operational
research,
with
most
big
companies using route planning
to cut costs.
You can, too, if you have
a business involving delivery
or transport.
Much of it is common sense,
but beware. Sometimes the
obvious route is not the best one.
Many factors need to be
considered.
First, you need to establish
if there is an item that is more
urgent than the rest, or if an
item must be delivered by a
certain time. This will dictate
how you plan your day - known
as ‘vehicle routing problem with
time windows’.
Here are some handy tips to
assist you with route planning:
Arrange
for
promised
delivery times that match your
capabilities. The first and easiest
thing to do is to wait until you
have all the items that need to
be delivered so that you only do
one trip. Unfortunately, this is
not always possible.
Study traffic patterns and
when it is best to deliver to
your clients. Being delayed
at a delivery point throws
your planned schedule into
disarray. Avoid rush hours and
slow traffic.
Find out if there are quicker
routes or even short cuts. It may
be better to go straight to the
furthest point and work your
way back rather than vice versa.
Keep looking for better ways.
Speak to your drivers to hear
what they say. Find out what
their problems are.
Your drivers are the biggest
factor in any plan to save money
or increase efficiency, but you
may also use a computer-based
vehicle routing solution. There
are several available. Some
are based on Google Maps, for
instance. You can even use
Google Maps without any addons by merely typing in all the
destinations and looking at the
map it draws. Visually, you will
be able to improve the order of
your deliveries.
When you want to use
technology to help design your
routes, you may want to look at
the solutions offered by TomTom
and Garmin. Both have ways to
reduce time in traffic.
Several tracking companies
offer additional services you
can use to improve your
efficiency. Check with your
tracking company what it offers.
One such offering is a “fence
around” where your vehicle is
expected to go. If it goes out of
that area, an alarm will go off.
It can also tell you when and
where your vehicle stopped and
for how long.
Another way to cut costs is
to use the right vehicle for the
job. It’s no use doing all the
above and then sending a fiveton truck to deliver four bags of
cement site that is 3 km away.
As a general rule, a petrol
vehicle will be more costeffective in stop-start traffic. For
stretches of open road, a diesel
vehicle will be better. Mostly,
a smaller diesel vehicle will be
more efficient than a large petrol
engine vehicle. Route planning
can also apply to your sales
staff who are constantly on the
road. They can be much more
effective if they plan properly.
DIRECTORY
www.SmallBusinessConnect.co.za
April 2014 - page 19
Business Support
Service Directory
Service
onnect
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
and export development
• Industrial
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
• 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
• 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
• Supports black South African youth
between 14 and 35 years old with support
and funding
skills
training
and
• Mentorship,
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
086 000 7332
[email protected]
www.sefa.org.za
0861 843 384 [email protected]
www.thedti.gov.za
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.nwdc.co.za
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
011 833 0340
[email protected]
www.thebusinessplace.co.za
Limpopo Economic
Development Agency
(Leda)
• 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.leda.co.za
Royal Bafokeng
Enterprise Holdings
(RBEH)
• 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)
• 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
[email protected]
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
051 400 0800
www.nefcorp.co.za
Mpumalanga Economic
Growth Agency
(Mega)
• 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
[email protected]
013 752 2440
www.fdc.co.za
www.mega.gov.za
086 100 2472
0860 103 703
[email protected]
[email protected] 080 052 5252
www.cipc.co.za
www.seda.org.za
www.nyda.gov.za
Qwaqwa set for first hospital
VUYO MABANDLA
MEDICAL entrepreneur Lebeho
Teboho Ntsepe’s dream of
building the first private hospital
in Qwaqwa, Free State, is slowly
becoming a reality following the
success of the three medical
practices he started with the help
of the Free State Development
Corporation (FDC).
He has received a further
R2 million in funding from the
FDC to buy a vacant plot of land
suitable to build the new hospital.
The FDC was established
by the Free State Provincial
Government to promote small
business development in urban
and rural areas of the province.
Ntsepe currently owns and
runs Dr LT Ntsepe Surgery,
which he started eight years ago.
Here, he juggles entrepreneurial
duties with his tasks of being a
medical doctor – he attends to
his patients daily.
He says he found himself in
“dire need” to expand his medical
services business to meet the
demands for medical attention in Funding has been approved for the first private hospital in Qwaqwa.
the region.
growing
co-operatives,
He then approached the FDC functioning optometrist and in
young entrepreneurs, informal
offices in Phuthaditjhaba, where dentist practise.
Plans are already under way businesses and franchises.
he applied for financial and
To
qualify
for
nonto set up the hospital: build
material support.
“I have known about the FDC, it from scratch, fit the latest financial and financial backing,
which makes an effort to make operating equipment, and have it entrepreneurs in the province
must submit their business plans
itself known to the community. operational in a few years.
The FDC’s services range from at the organisation’s various
When I opened my first general
health services practice in developing sustainable small satellite offices situated all over
Phuthaditjhaba, I set my sights businesses and commercial co- the Free State.
Maleeme says: “All they must
operatives through financial and
on expanding my business.
do is apply. We will appoint an
“The FDC helped me buy the other business support services.
It provides business loans of expert or mentor to qualifying
house where I currently operate
from and provided finance to between R5 000 and R5 million to businesses to help them draft a
me for equipment and stock,” qualifying enterprises that apply business plan. We accompany
for support at the organisation’s them through the process of
says Ntsepe.
legitimising themselves, growing
A cash injection by the FDC walk-in offices.
According
to
Victor their operations, and employing
saw him buy a house opposite
the premises he now uses as a Maleeme, the FDC’s corporate young skills.”
general health practice, which communications officer, business •Go to www.fdc.co.za for more
information.
he then converted into a fully loans are designed to assist
page 20 - April 2014
DOING BUSINESS WITH...
SMALL BUSINESS CONNECT
SAA suppliers paid in 7 days
BY DANIEL BUGAN
AS a supplier , business owners will
have two of their top ten concerns
taken care of. This is a promise by
the South African Airways (SAA)
to its small suppliers. So, what are
these concerns, you may ask?
According to Tlali Tlali, SAA
spokesperson, business owners
will be paid on time, and their rent
will be paid by the state-owned
enterprise.
SAA’s core business is the
provision of passenger airline
and cargo transport services,
together with related services
provided through SAA and its four
wholly-owned subsidiaries: SAA
Technical; Mango, its low-cost
carrier; Air Chefs, SAA’s catering
entity; and the South African
Travel Centre.
“The cornerstone of SAA’s
enterprise development programme is that it pays its small
business suppliers within seven
days and provides office space free
of charge.
The aim is to alleviate some
of the challenges facing small
businesses and to boost cash
flow,” says Tlali.
To apply to become a SAA
supplier,
business
owners
need to complete the supplier
questionnaire that is available on
SAA’s website.
This must be accompanied
by the supporting documents
indicated on the form.
“Those business owners whose
applications have been approved
SAA assists suppliers with rent-free office space and ensures that they are paid within seven days.
are then included on SAA’s
supplier database and are allowed
to bid for tenders when these
become available,” says Tlali.
Small
businesses
should
satisfy the following criteria to be
considered as a potential supplier:
it must be 50% black-owned or
30% black women-owned, have
a valid original tax clearance
certificate, a valid original
Black Economic Empowerment
certificate, a bank account,
Companies
and
Intellectual
Property Commission registration
documents,
and
shareholder
certificates where applicable.
SAA procures the following
products and services from
suppliers:
courier
services,
printing services and devices,
aviation and general security
services,
stationery,
training
service providers, internal and
external audit services, gardening
and landscaping, airconditioning
maintenance services, cleaning
services and supplies, baggage
delivery services (maintenance
and weighting), crew transport,
domestic, marketing, advertising,
media
and
communication
services, clothing and textiles,
general construction works and
office furniture.
Tlali says the carrier is
developing a supplier-specific
training module.
This module will provide
Small businesses grow thanks to SAA assistance
BY DANIEL BUGAN
ELLIOT
Mokone’s
turnover
increased by 15% while he
operates from a rent-free office.
Mokone is the owner of
Morena Corporate Services, a
company that provides South
African Airways (SAA) in Cape
Town, Durban, East London and
Johannesburg with cleaning
services such as window and
carpet cleaning.
These are two of the benefits
he has seen since becoming a
supplier to the national carrier
five years ago.
Other benefits include the
furnished office space and free
computers, email and access to
its network server.
Elliot Mokone
SAA assists many of its
“I can now pay the people
suppliers by offering them rentfree office space and by paying who supply my products and
them for their services within chemicals on time, which was
not always the case in the
seven days.
“I used to pay up to R7 000 a past. My employees also do not
month for the premises I rented have to wait for their money,”
before I became a supplier to says Mokone.
Another benefit that comes
SAA. I am now able to put that
money back into the business,” with being an SAA supplier is the
credibility that is afforded your
says Mokone.
He says the seven-day company being associated with a
payment terms SAA has put well-known brand.
Says Mokone: “When I
in place for its suppliers has
also significantly boosted his apply for business with other
companies, they take notice as a
cash flow.
result of my association with SAA.
They can see that I am not a
fly-by-night operation.”
He has since secured a
contract with Anglo American;
he says this was a result of him
being a supplier to SAA.
Mokone says SAA has provided
him and his staff with hospitality
training free of charge.
He is not the only supplier
to SAA to see increased
profit margins.
Elton Stride, the owner of
Usizo Technical Services, supplies
SAA with airconditioning and
refrigeration services.
He also benefits from the
airline’s free office space and
seven-day payment policies.
He says getting paid within
seven days has made it possible
for him to pay salaries on time
and to pay suppliers who have to
be paid every week or fortnight
instead of every 30 days.
SAA has provided the
company with two rent-free,
fully furnished offices. He says
the money the company saves
on rent is ploughed back into
the business.
Stride says that, since
becoming a supplier to SAA, the
company’s turnover has increased
by a massive R10 million.
The profits have enabled
it to employ more staff and
to run internal staff training
programmes.
Stride says it takes a lot of
hard work and dedication to work
for SAA, but “the payment terms
are good and would benefit a
small business”.
But everything has not always
been plain sailing.
“SAA equipment is very old
and spares are always a problem.
We have recommended upgrades
to some equipment.
Qualified staff was also
a challenge, but we have
implemented staff training and
have also employed more staff
with the skills needed at SAA,”
says Stride.
Usizo Technical Services,
based in Johannesburg, also
offers
engineering
facility
management services such as the
installation and maintenance of
generators, boiler operation and
maintenance, and transformer
maintenance.
The company also supplies
services to well-known corporate
companies such as Airports
Company South Africa, Eskom,
the Passenger Rail Agency of
South Africa and MTN.
•Go to www.usizotech.co.za
and www.morena.co.za for
more information.
training to suppliers on SAA’s
tender and procurement process
and tender document completion.
The training will be facilitated
through SAA’s Learning and
Development
Unit.
Further
support to suppliers includes
informing them of SAA’s supply
chain management policy and
guidelines.
•To
access
the
online
supplier questionnaire, go to
www.flysaa.com
You could
feature here
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Connect receives requests from
business owners to cover their
businesses. “We try to feature
as many business owners with
stories that are newsworthy,
but we have limited space,
specific requirements as well as
deadlines, and cannot feature
all our readers,” says News
Editor Nabelah Fredericks.
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section will offer readers the
opportunity to be featured in
the paper. All you need to do is
answer a few simple questions.
If you would like to
be featured, please email
a photograph of yourself
(larger than 1 MB) and your
contact
information
(with
Reader of the Month in the
subject line) to Newsdesk@
SmallBusinessConnect.co.za
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