Month: August 2012

The state of entrepreneurship in South Africa

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South Africa’s entrepreneurial activity, over the past eight years, has shown vast improvement, however the economy lags behind comparable economies and has not fully utilised the economic potential that is available in entrepreneurial opportunities.

According to Nimo Naidoo, project manager of the Sanlam / Business Partners Entrepreneur of the Year® competition, South Africa has the ability and the resources available to support entrepreneurs, but believes that the country has yet to develop a strong entrepreneurial culture to drive it.

 

 

 

Entrepreneurship challenges

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The failure rate of start-ups is exceptionally high – why do these businesses fail?

It is a known fact that the main reason for business failures is management related. It is often intelligent, honest, hard working people that fail. They either do not have the typical entrepreneurial traits required to make a success, or they lack the relevant experience.

I believe that inadequate exposure to that particular business offers the explanation. A successful professional that has been exposed to a corporate environment may find it difficult to understand the typical “tricks of the trade”. The HOW of the business. Without the exposure it can be unfair on the entrepreneur to make a success. After all you need time to learn.

What in your opinion are the dangers in running a business?

There are many dangers that one can list, but I want to address five most prominent:

  1. The first danger is the entrepreneur themselves. Because they have been successful, they start relaxing and complacency replaces that initial enthusiasm, self-drive and sharpness. They do not focus on the important issues as they did years ago and they accept many things as a given, rather than investigating first.
  2. The entrepreneur spends less and less time at the business and allows others to run the business. Can anyone else be as passionate about the business and the success of the business as the entrepreneur? They may prefer to while away time elsewhere, whether it is overseas visits, excessive hours on the golf course and spend business time on, albeit well deserved, community projects.
  3. Poor cash flow management. Many profitable businesses fail because of a lack of sufficient cash flow. It is a vicious circle. As soon as the business is cash strapped, the focus of the entrepreneur changes. Instead of spending time making money, they spend time collecting debts, making arrangements with the creditors and negotiating extended facilities. It becomes survival mode which is not good for business success.
  4. Marketing. The market and behaviour patterns change continuously. It is for the entrepreneur to stay in touch with the latest trends and tendencies. What worked some time ago does not necessarily apply today. Marketing techniques are also dynamic and not to market is to die a slow death. Marketing obviously involves much more than just advertising.
  5. Costing. This applies in particular to manufacturing concerns. The entrepreneur (or someone else) will perform a costing exercise and use these values for a long period of time. If it is not reviewed and re-evaluated as and when the price of material or labour changes, then costing becomes ineffective and irrelevant, and makes the setting of selling prices an impossible task.

The female perspective on entrepreneurship in South Africa

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Female entrepreneurial activity has been proven to be a major catalyst in triggering economic growth in developing countries, such as South Africa. The increased number and quality of female finalists in the 2012 Sanlam / Business Partners Entrepreneur of the Year® competition is thus an encouraging sign.

In light of August being Women’s Month, we chatted to seven female finalists from this year’s competition about their thoughts on entrepreneurship:

Tabisa Nomnganga, owner of Bravo Promotions, on her advice to fellow female entrepreneurs operating in South Africa:

“Female entrepreneurs need to believe in the beauty of their dreams. As female entrepreneurs we have an extra challenge of having to prove that gender has nothing to do with running a successful business. It’s all about hard work and dedication.”

Suretha Barnard, owner of the Junior academy, on whether she faces any unique challenges being a female entrepreneur:

“I do not really face any unique challenges. I get the same treatment and respect from our parents as the male principals do from neighbouring primary schools. In fact, I feel that I am very fortunate to be a female in my position as principal of the nursery school as I feel that “motherly instincts” play a huge role in the job. I think parents feel more comfortable discussing their child’s problems with a woman, who can relate to their situation and they certainly know that we offer a home away from home experience.”

Kamille Padayachee, owner of Thoughtfire Conferences & PR, on what being a female entrepreneur means to her:

“I’m proud to be a strong, independent woman who can survive and keep her head above water. I think it takes a special type of person to be an entrepreneur and as a woman I enjoy the fact that I can contribute in a small way by perhaps inspiring other young women, my daughters (when I have children one day) or even my employees.

Carol Weaving, business owner of Thebe Exhibitions & Projects Group, on her advice to fellow female entrepreneurs in South Africa:

“My daily mantra is “Carpe Diem” – seize the day! You must never give up, you have to think out of the box, never be scared to take risks (calculated of course) and work hard with your team to see it happen. Enjoy every minute.”

Anthea Ambursley, owner of AnanziBiz, on whether she faces any particular challenges being a female entrepreneur:

“Yes, but this has not stopped me from pursuing my dreams. Male dominance in the South African corporate world is still a challenge for business women. However, I believe that if you love what you are doing and you know what you want to achieve, you will be able to overcome such challenges. In the early days when I was looking for finance, I would make a pitch to male executives and it would be clear from their body language that they did not think that I could make it. Such experiences have provided me with an extra motivation to succeed.”

Madele’ Ferreira, owner of Mooihoek Boerdery, on which South African female entrepreneur inspires her most:

“Fellow female entrepreneur Janice Giddy, owner of food safety and business support company Entecom, is a huge inspiration because of her dedication and passion. Seeing all the hard work and effort pay off for her has been very fulfilling and inspiring. Because we started our businesses at roughly the same time, seeing her business grow at such a rapid rate gives me faith as to what my business can develop into.”

Michélle Booysen, owner of Pétanque Consultancy, on what being a female entrepreneur means to her:

“It is an honour. Being an entrepreneur makes one part of 25% of the population. Being a female entrepreneur makes one part of probably, all things being equal, 12% of the population. This group characterises vision, drive, the will to succeed, innovation, ingenuity and a deep understanding of the responsibility to maintain business as a key driver of economic growth, people empowerment and community support. I am part of a minority industry with incredibly accomplished women as my role models, peers and support. I am proudly an entrepreneur and therefore it is an honour for me to be an entrepreneur, locally and internationally.”

SA’s top entrepreneurial competition finalists revealed

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The 22 finalists of South Africa’s premier entrepreneurial platform, the 2012 Sanlam / Business Partners Entrepreneur of the Year® competition, have been announced.

According to Nimo Naidoo, project manager of the 2012 Sanlam / Business Partners Entrepreneur of the Year® competition, this year has set a benchmark in terms of celebrating entrepreneurial excellence in the country, resulting in encouraging entries from very talented South African entrepreneurs. “The calibre of entrants and quality of preparation packs received in 2012, which is a combination of all necessary details required in order to assess the entrepreneurs, has improved tremendously in comparison to the 2011 entries.”

The 22 finalists going through to the judging phase are:

Emerging category:
  • Imran Khan, Attitution: a national education company that offers extra lessons to school children, as well as university learners in their first three years of studies.
  • Tabisa Nomnganga, Bravo Promotions: a full spectrum below the line marketing and communications agency.
  • Kamille Padayachee, ThoughtFire Events: an events management company that also offers clients a wide range of public relations services.
  • Quinten Dickerson, True Water: a company specialising in the distribution and installation of high quality water filtration, disinfection and sanitation equipment.
Small category:
  • Fritz Strydom, Blomo Plastics: a company specialising in technical blow moulding.
  • Martin Brown, Radical Mobility: a company that designs, manufactures and markets power wheelchairs, which maximise mobility and comfort for disabled people.
  • Stuart Forrest, Triggerfish Animation Studios: a Cape Town-based media and entertainment company.
  • Mike Eilertsen, LIVEOUTLOUD: an all-encompassing luxury lifestyle brand, comprising of a magazine, events company and travel agency.
  • George Ferreira, TJ’S Lekka Braai: a braai-focused business that supplies wood, charcoal, briquettes, firelighters, paraffin and related products.
  • Madelé Ferreira, Mooihoek Boerdery: a producer of spinach, leeks and strawberries on a 40 ha farm in the Gamtoos Valley in the Eastern Cape.
  • Suretha Barnard, The Junior Academy: a pre-school operating in the East of Johannesburg.
  • Hennie Burger, MSEC Security: provider of security to individual clients, as well as corporates in the Mossel Bay, Oudtshoorn, George and the entire Garden Route area.
  • Gianmarco Lorenzi, Cleardata: a provider of secure on- and off-site document destruction services for the corporate market.
  • Michélle Booysen, Pétanque Consultancy: a management consultancy offering strategy formulation, strategy delivery and project management services.
  • Warren Graver, Enviro Deck: a company that sells and services environmentally friendly decking and finishing products in the real estate industry segment.
  • Anthea Ambursley, AnanziBiz: a company satisfying the needs of the discerning corporate traveller, namely guest house and self-catering accommodation, tours and transfer services, corporate catering and events management.
Medium category:
  • Bengy and Shereen Premrajh, UKD Marketing: a manufacturer of custom made kitchen and bedroom furniture for private homes and free standing kitchen units for retail stores.
  • William Duk, The Plantation Shutter: specialist in the design, manufacturing and installation of superior quality, custom-designed adjustable louvre window and door shutters.
  • Justin Hawes, Scan Display Solutions: a leader in the Southern African exhibition and display market.
  • Trevor Davids, Trevor Davids Plumbing: a company providing a broad range of services to the construction industry in the Western Cape.
  • Carol Wearing, Thebe Exhibitions and Projects Group: one of Southern Africa’s most forward thinking and successful exhibition, special project, event and conferencing companies.
  • Leon Mienie, Ebenhaeser Engineering: a full-service engineering and machine shop.

The Sanlam / Business Partners Entrepreneur of the Year® winners will be announced on 6 September 2012 at the official awards breakfast in Johannesburg. “We are very excited to venture into the final stages of the 2012 competition and wish all of the finalists the best of luck,” says Naidoo.