economy – Page 4

Calling all entrepreneurs!

Posted on May 13, 2015 by Webmaster

Final countdown to enter the 2015 Entrepreneur of the Year competition begins. With just a little more than a month until entries close for the 2015 Sanlam / Business Partners Entrepreneur of the Year® competition on 16 June 2015, South African entrepreneurs are encouraged to enter in order to be recognised and rewarded for the hard work and passion that they put into their business, as well as the vital role they play within the country’s economy.

The competition provides entrepreneurs with the chance to win prizes up to the value of R 2 million, which includes cash prizes to the value of R350 000, as well as valuable mentorship support, networking opportunities and associated marketing and national media exposure.

Now in its 27th year, the free-to-enter competition has become South Africa’s pre-eminent entrepreneurial platform, and embraces local entrepreneurship by providing an opportunity to showcase business achievements and elevate the entrepreneur’s profile, as well as their profits.

Christo Botes, spokesperson for the Sanlam / Business Partners Entrepreneur of the Year® competition, says that the competition serves as a promotional tool to not only create awareness for entrepreneurship in South Africa, but also for local entrepreneurs to generate a credible reputation amongst competitors.

“Smaller business often can’t compete with larger market player’s marketing spend and national advertising campaigns. Not only are such competition platforms cost-effective, but if entrants are successful as finalists or winners, the awareness thereafter can have a significant effect on their business’ brand and bottom line,” says Botes.

An example is the 2014 Sanlam / Business Partners Entrepreneur of the Year® winners of the Judges Prize – Dudu and Leema Mofokeng, joint owners of Legaci Dry Cleaners and Laundry Services – who, through the exposure gained from the competition, have raised the profile of their company and as a result have witnessed an increase in business enquires and requests from prospective franchisees.

The competition is open to entrepreneurs from all industries and for businesses of any sizes. Categories for the competition include: Emerging Entrepreneur, Small Business Entrepreneur, Medium Business Entrepreneur, Innovator of the Year, Job Creator of the Year and overall Entrepreneur of the Year® 2015.

Entrepreneurs interested in entering the competition can download entry forms online at www.eoy.co.za as well as interact with fellow entrepreneurs on the Sanlam / Business Partners Entrepreneur of the Year® competition social media platforms: Twitter: @EOY_SA and www.facebook.com/EOY.SA. The closing date for the competition is 16 June 2015.

2015 competition now open for entries

Posted on February 17, 2015 by Webmaster

Now in its 27th year, the Sanlam / Business Partners Entrepreneur of the Year® competition – the premier entrepreneurial platform in South Africa – continues to pay tribute to the fearless entrepreneurs who remain dedicated to not only fostering a culture of entrepreneurship in the country, but also to their business and staff.

South African entrepreneurs rarely receive the acknowledgement they truly deserve, and should be praised for the role they play in the creation of jobs and economic development in the country. Our competition aims to do precisely this – recognise, profile, celebrate and reward entrepreneurs making a difference in the economy, as well as foster a culture of entrepreneurship by inspiring following entrepreneurs to take their business to new heights. By doing this we can encourage others to consider entrepreneurship as a viable career path.

The World Employment and Social Outlook: Trends 2015 report, recently released by the International Labour Organization, revealed that South Africa will have the 8th highest unemployment rate globally in 2015. The six 2014 Entrepreneur of the Year® winners collectively created over 400 jobs, while our overall 2013 Entrepreneur of the Year® winner – Tommy Makhatho, owner of BiBi Cash & Carry – generated over 800 jobs in a rural area of Qwaqwa. These figures confirm the pivotal role entrepreneurs play in job creation, as well as the more prominent role they could play in this space with additional support.

We therefore once again call on local entrepreneurs to submit their entries and reap the many benefits that the competition offers.

The competition will not only provide entrepreneurs with an opportunity to showcase their achievements and elevate the business’s profile, but also the chance to win prizes up to the value of R 2 million, which includes cash prizes to the value of R350 000. Competition winners will also receive valuable mentorship support which enables them to take their business to new levels, as well as networking opportunities with likeminded entrepreneurs.

Apart from the prizes offered, a key takeaway for past finalists is the opportunity to take a step back and analyse their business, both by themselves, and along with an independent judging panel. We often find that entrepreneurs don’t fully comprehend how far their business has developed and grown over the years, and the networking opportunities with other entrepreneurs and judges allow these individuals to fully appreciate their achievement and the hard work and dedication that has gone into building their business.

The competition also provides finalists and winners with the opportunity to obtain valuable regional and national publicity and exposure, which should not be underestimated as it has the potential to attract new customers, as well as increase a business’ reputation amongst existing clients.

One such example is Dudu and Leema Mofokeng, joint owners of Legaci Dry Cleaners and Laundry Services, and winners of the Judges Prize in the 2014 Sanlam / Business Partners Entrepreneur of the Year® competition. “The exposure gained from the competition has raised the profile of my company significantly. I have noted a marked increase in business enquiries received from customers, as well as prospective investors wanting to open a franchise,” says Dudu Mofokeng

Entrepreneurs interested in entering the competition can enter online here. The closing date for the competition is 16 June 2015.

Good luck to all 2015 entrants – we look forward to hearing your entrepreneurial success stories!

Top sectors for SA entrepreneurs to capitalise on in 2015

Posted on January 15, 2015 by Webmaster

A new year brings with it new opportunities and 2015 offers both established and aspiring entrepreneurs multiple business prospects to capitalise on due to the various challenges South Africa has had to overcome in 2014, or continues to battle in 2015.

This is according to Christo Botes, spokesperson for the 2015 Sanlam / Business Partners Entrepreneur of the Year® competition, who says that the challenges the country currently faces, such as the weakened rand and poor infrastructure, has provided gaps in various sectors for entrepreneurs to capitalise upon. “While the problems the country has had to face over the last year, from water and power shortages, are negative, these issues also provide opportunities in the market for entrepreneurs to take advantage of.

“Entrepreneurs don’t fit into a structure. They are agile, versatile and quick decision makers. They are the first movers and have the ability to quickly capitalise on new opportunities, or market gaps, and turn a bad situation into a positive outcome,” says Botes.

Botes points to a few sectors that he views as providing significant opportunities for entrepreneurs in 2015:

Education

Both Government and the private sector have allocated large budgets to improve this sector. More franchises are increasingly being established, especially Technical and Vocational Education and Training (TVET) colleges (formerly known as Further Education and Training (FET) colleges), due to the demand for such facilities and skills in the country. One of the known listed groups in the education and training arena, ADvTECH, recently announced their acquisition of the Maravest Group, and as a result is now expected to grow their student base by 70% in 2015. This business, together with the Curro model, an Independent Education company that provides affordable private schooling from pre-schools through to tertiary education level, are proving that there is a dire need and still some further niche markets to be serviced in the marketplace.

Manufacturing

While the sector will continue to offer opportunities in 2015, entrepreneurs should be exploring export orientated manufacturing. Government offers attractive incentives, such as rebates and tax deductions, for component manufacturing, as well as an entrepreneur’s ability to develop overseas markets for such products.

As an example, in the automotive industry, vehicle brands, such as Mercedes, Toyota, VW, BMW and Ford, are being exported in greater quantities from South Africa, and this has led to a growing supply chain that can offer new opportunities. Local businesses are also increasing the manufacturing of vehicle components for brands manufactured elsewhere in the world, and thus becoming part of these countries’ supply chains. There are many other industries also offering such opportunities which entrepreneurs can explore.

Tourism

While manufacturing should be export orientated due to the weak rand, entrepreneurs should take advantage of this in the tourism sector due to foreign tourists benefiting from the favourable exchange rate.

Business tourism is increasingly growing in attractiveness due to South Africa being recognised as the gateway to Africa, and due to the weak rand, savvy entrepreneurs can capitalise on the country being a fairly cheap destination to host international conferences, when compared to some of the more established / traditional conference destinations. In terms of vocation tourism, there is a growing opportunity to market the region as a destination and offer attractive all-inclusive deals with various airlines, hotel groups and different cities and resorts around South Africa, as well as the Southern African Development Community region.

Mining

While at a low base due to the labour disputes encountered over the last 18 months, the sector has recently experienced an increase in expenditure on capital programmes, especially in coal mines as older mines’ reserves are shrinking and coming increasingly under pressure to supply more coal to our mainly coal fired electricity generating power stations. This offers a myriad of opportunities for entrepreneurs in primary and secondary supply chains, such as shops and other infrastructure that is needed in the area where the mines are being developed and/or redeveloped.

Infrastructure at large

Government, at all levels, is investing in upgrading services and facilities and smaller contractors should seek ways to get involved in the various scheduled projects. Apart from low-cost housing, basic services, such as water, electricity, sewage plants, as well as repairs and upgrades to Government buildings and recreation sites, are needed in cities and towns across the country.

It is reported that the country’s next big crisis is water and much is needed to not only conserve water, but also to upgrade the existing poor infrastructure, which is under severe pressure due to old pipes bursting underground.

Botes encourages entrepreneurs across the country to explore these opportunities. “Established entrepreneurs may be drawn to a new opportunity due to his or her very nature of continually seeking new opportunities, or a hunger to be the ‘first mover’. These shifts in the economy however also offer aspiring entrepreneurs an opportunity to enter the market by identifying these gaps and then capitalising on the idea.

“Those entrepreneurs that take initiative will not only create wealth for themselves, but they would also be investing in South Africa’s economic development and job creation,” concludes Botes.

15 finalists selected to advance in SA’s premier entrepreneurial competition

Posted on July 24, 2014 by Webmaster

After carefully sifting through a record amount of entries, the 2014 Sanlam / Business Partners Entrepreneur of the Year® judging panel have identified the 15 finalists who have been selected to advance to the final round of the competition.

According to Christo Botes, spokesperson for the 2014 Sanlam / Business Partners Entrepreneur of the Year® competition, the amount of entries received this year is a dramatic increase in comparison to the 2013 and 2012 competition. “We are pleased to announce that we received 214 entries in 2014, which is the highest volume recorded to date and an increase of 21% compared to last year. The entries have once again impressed the judging panel and have highlighted the quality of entrepreneurial talent and success present in the country.”

Botes says that he believes that the quality and quantity of this year’s entries is a direct result of previous winners’ success, as well as the status which the competition has established for itself within the entrepreneurial community. “The quality of the 2014 entries confirmed that the future of the entrepreneurial community in South Africa is very promising.”

He says that the 15 finalists operate in various sectors, the most prominent being the services and manufacturing sectors, with the majority originating from Gauteng and the Western Cape.

“The profile of the entries gave us even more inspiration to further celebrate entrepreneurial success. The types of businesses and the niches they fill in their respective sectors and markets shows that there are still many opportunities in our economy. What is needed from local entrepreneurs is the open-mindedness and guts to identify and grab the opportunities that are just waiting to be harvested.

“We commend all entrants and encourage individuals who have not been selected for the next round to try again next year. It is encouraging that South African entrepreneurs are not afraid to stand up and take pride in the businesses that they have created. It is vital for the country to recognise these individuals as they play a vital role in the economy by creating jobs and economic growth. Even though entrepreneurs have not been officially recognised yet – they all deserve to be celebrated.”

This year’s entries represent a wide array of sectors in South Africa, including the engineering, IT, services, retail, hospitality and education industries. Botes says that the demographics of this years’ entries are exciting to say the least. “Close on 30% of the entrants were located outside the four large metropolitan areas, which indicates that our rural economy continues to have thriving businesses, and that SMEs remain the backbone of those areas. Gauteng (43.9%) and Western Cape (22.4%) make up two thirds of all the entries, which throws out a challenge to the other provinces to be more bold in entering the competition as these two provinces seems to be more confident in celebrating their success.

“We also are delighted at the growth in the number of black entries as for the first time it grew to more than half the entries at 54.7%. Female entries also reached a new high at 31.78% and if one further considers that many of the male entrants also have, at the core of their businesses, a spouse that is just as committed to the business as the male entrant.”

Botes explains that the next step in the judging process is the selection of the winners in the different categories. “The judging process is completely independent and is monitored by PwC. The judges also represent different areas of the business community and include successful seasoned entrepreneurs, as well as a representative from each of the sponsors and a director from PwC. The evaluation process runs through three different filtering processes, which ensure that everything is checked and rechecked to remove any human error or human preference which otherwise could have crept into the process.”

He says that the 2014 finalists stand the chance to win prizes worth R1 340 000, which includes cash prizes to the value of R350 000. “Beyond the chance to win prizes, previous entrants and finalists have benefitted from the competition’s various networking opportunities and associated marketing efforts. Certain winners have also gone on to win other prominent awards and form valuable partnerships as a result of their success in the competition.

“We are eager to move onto the next round of the competition and wish all the finalists continued success and good fortune,” concludes Botes.

The 2014 Sanlam / Business Partners Entrepreneur of the Year® winners will be announced on 3 September 2014 at the official awards breakfast in Johannesburg.

2014 Sanlam / Business Partners Entrepreneur of the Year® finalists:

Wendy Kemp (Accountability Group), Dudu & Leema Mofokeng (Legaći Superior Dry Cleaning & Laundry Services), Marthie Jansen van Rensburg (Ekurhuleni Artisans & Skills Training Centre), Dr Michelle Booysen & MJ Fick (Pétanque Consultancy), Karabo Songo & Olatoye Amosun (Olive Communications), David Green (Thegreencompany Importers (Pty) Ltd), Lorimer Gowar (Larrem (Pty) Ltd), Johan Eksteen (Agricon), Adri & Faan Kruger (Tzaneen Country Lodge), Hans van Aardt (Microworks (Pty) Ltd), Theri Rossouw (Therific Naturals), Hassan Suleman (Form Force (Pty) Ltd), Johan Kilian & Lukas Loots (Pie City), Daniel Guasco & Wayne Gosling (Groupon South Africa), Theresa Cupido (ATN Roadmarking & Civils).

Who’s the best?

Posted on July 21, 2014 by Webmaster

South Africa vs. Sub-Saharan Africa entrepreneurs

There has been much talk around the rise of the African continent and many comparisons have been made between entrepreneurship and business levels in South Africa and other African regions.

According to Christo Botes, spokesperson for the Sanlam / Business Partners Entrepreneur of the Year® competition, while some countries report higher entrepreneurship levels, this doesn’t necessarily mean that the small and medium enterprises operating within them are more financeable or sustainable than those in other regions. “It is unfair to compare entrepreneurs of different countries, as each region contains its own strengths and weakness, all of which can impact a business, either positively or negatively.”

Botes says that as an economy develops, so does its entrepreneurial opportunities, but that these opportunities differ depending on a country’s economic structure. “The recent economic boom in Africa has seen many sectors develop and expand and it therefore isn’t surprising that more individuals are exploring entrepreneurship as a possible career choice to capitalise on the continent’s expansion and growth.”

He points to the latest Global Entrepreneurship Monitor (GEM) 2013 Global report, which revealed that Sub-Saharan Africa has the highest Total Early-stage Entrepreneurial Activity (TEA) rates globally. Leading these figures are Zambia and Nigeria with 39.9% of the adult population involved in early-stage population activity, while South Africa, only has a TEA rate of 10.6%.

Botes adds however that although countries, such as Nigeria, have become a hub for investment opportunities, South Africa remains Africa’s gateway to sustainable business and investment opportunities, due to the country’s infrastructure and economic structure.

“Countries around the globe are divided into factor-driven, efficiency-driven and innovative-driven economies, depending on their economic structure and development levels. Countries such as Ghana, Zambia and Nigeria, operate in a factor-driven economy, which thrives on advantages such as low cost labour and untouched natural resources. However, this type of economy is also susceptible to global economic cycles, commodity prices and exchange rate fluctuations.

“In an efficiency-driven economy, such as South Africa, an economy has become more competitive, enabling it to produce and deliver more advanced products, this aids the establishment of more sustainable businesses.”

Botes adds that job creation is also a key differentiator when comparing the countries entrepreneurial business ventures.

“In the recently released 2013 South African GEM report, it indicates that while Sub Saharan Africa displayed higher rates of TEA, only an average of 5.5% of early-stage entrepreneurs between 2001 and 2013 will create over 20 jobs. On the other hand, South Africa, which reported a lower number of TEA, indicated 14.6% of early-stage entrepreneurs will create over 20 jobs during the same period.”

Botes says that, ultimately, factors such as investment in infrastructure, access to investment capital and investor security, play a vital role in the success of a business. “While the rest of Africa is home to many growing and successful entrepreneurs, more developed and established business owners are prevalent in South Africa, due to the country’s developed infrastructure, investor security, as well as the established and successful international and local trade relationships.

He adds that the regulations within a country can also impact a business. “The World Bank’s Doing Business 2014 report, which investigates the regulations that enhance business activity and those that constrain it, revealed that it takes an average of 19 days to register a new firm in South Africa, which is roughly a week longer than it takes in higher-income countries, but 10 days less than countries in Sub-Saharan Africa. With the introduction of the Small Business Development Ministry in South Africa, with its promise to cut the red tape for SMEs, the amount of days should improve further which will bodes well for entrepreneurs in the country.

Botes says that it will however be interesting to witness the shift in factors motivating entrepreneurs in South Africa as other Sub-Saharan Africa regions continue to boom. “This can also be an important motivating factor for South African entrepreneurs to continually ensure their competitive advantage, in order to be sustainable for years to come,” concludes Botes.

Who’s the best? South Africa vs. Sub Saharan Africa entrepreneurs

Posted on July 9, 2014 by Webmaster

There has been much talk around the rise of the African continent and many comparisons have been made between entrepreneurship and business levels in South Africa and other African regions.

Botes adds that job creation is also a key differentiator when comparing the countries entrepreneurial business ventures.

3D printing set to boost SA entrepreneurs

Posted on June 12, 2014 by Webmaster

Futuristic as it may seem, 3D printing has the potential to change the way South African businesses operate, as well as introduce a new stream of entrepreneurs into the economy. From a global perspective, this invention has already created countless opportunities for businesses to differentiate themselves from competitors, with 3D printing products and services expected to approach $6 billion worldwide in the next four years*.

3D printing involves a printing device that layers liquids, powders, and sheet materials together in a digital model to accurately create a three-dimensional final product.

Christo Botes, spokesperson for the Sanlam / Business Partners Entrepreneur of the Year® competition, says that although this technology is still relatively new to South African shores, its global success highlights the many opportunities that local entrepreneurs stand to benefit from, should they be able to capitalise on this innovative method of production.

Botes also points to recent research compiled by Canalys, an independent analyst company that strives to guide clients on the future of the technology industry, which revealed that the size of the 3D printing market, including 3D printer sales, materials and associated services, reached $2.5 billion globally in 2013 and is expected to reach $3.8 billion in 2014.

“Originally used for the production of plastic prototypes, the application can now handle a range of materials from titanium to human cartilage, and can print custom products, such as phone cases and jewellery, to shoe prototypes and even house structures. It is also predicted that as the technology develops, these possibilities will only continue to increase.”

Botes adds that while the implementation of 3D printing is evident in many sectors, from architecture to aerospace and medical, more recently it has altered traditional manufacturing processes. “Generally, smaller businesses operating in the manufacturing industry have outsourced their model designs to specific suppliers, thereby remaining dependent on the supplier for both the delivery time and the quality of the specific product.

“However, the development of 3D printing technology now empowers businesses to create innovative, customised products with a faster turnaround time, and without compromising product quality.

“Given that 3D printing is only restricted by computer-aided design competencies and printer availability, the technology is increasingly becoming a feasible option for a wide range of enterprises, resulting in a relatively low entry barrier for many entrepreneurs wishing to start a business after noticing a gap in the market.”

In terms of job creation, Botes says that 3D printing could potentially improve the sustainability of the local printing sector. “The new technology will force companies operating in the traditional printing industry to review and introduce new service offerings. This approach will not only create jobs, but maintain jobs in an industry that is facing discontinuation, due to the shift from print to digital.”

Botes advises that while 3D printing has endless possibilities, it is still in its early stages, especially in South Africa. “Local entrepreneurs considering investing in the technology must ensure that they seek advice from industry specialists. Customer research is also vital as the general public and customers may be hesitant or sceptical to use a product manufactured via 3D printing.”

He adds that change is inevitable, and business owners are faced with this reality on a daily basis. “Over the years, business owners have witnessed the shift from traditional business methods to more modern methods; specifically the shift to electronic and online platforms, and soon the evolution of 3D printing. These trends reiterate the need for local entrepreneurs to consistently innovate in order to avoid becoming irrelevant in their respective markets,” concludes Botes.

*Research by Wohlers Associates

Identifying entrepreneurial opportunities in the SA marketplace

Posted on April 22, 2014 by Webmaster

“Innovation distinguishes between a leader and a follower” – Steve Jobs

While the current South African economy may present challenging times for local businesses, this period also presents opportunities for entrepreneurs to explore new business ventures or to investigate new ways of taking a business to the next level.

This is according to Christo Botes, spokesperson for the Sanlam / Business Partners Entrepreneur of the Year® competition, who says that during unpredictable market environments, entrepreneurs should focus on their business’ key competencies, relevance in the market and competitive advantages. “Analysing these areas could lead to innovation as to how the business is run or the introduction of new services and products.”

Given the many changing trends shaping society and consumer needs, as well as improved technology, now is the time for businesses to innovate and shape their business according to these many developing needs, says Botes.

“Many entrepreneurs have started businesses in challenging times with great success due to the business filling a gap in the market. There are many business opportunities currently available in South Africa, and it is vital that entrepreneurs are aware of these opportunities and that they know how to capitalise on them.”

He says one such gap in the market currently is the need for private schooling and education. “It is well documented that the quality of public education has become a concern for parents. Private school Curro saw a gap in the market for affordable private schooling in the market and due to the roaring success of the business have established various primary and high schools all around the country.”

Curro Holdings CEO, Chris van der Merwe, recently said the affordable private schooling market was much larger than initially envisaged, noting that by the end of this financial year the company would already have beaten its 2010 prelisting forecast of 40 schools by 2020.

Other sectors currently offering opportunities include alternative energy sources, the shortage in student accommodation and the African markets which are expanding rapidly, says Botes.

He also points to the most recent Global Entrepreneurship Monitor which revealed that in 2013, 37.9% of South African respondents believe that there are opportunities to start a business in the country, up slightly from 35% in the 2012 report. Botes says that this highlights the opportunities that are increasingly presenting themselves to entrepreneurs. “Many examples, Curro being one of these, display the value and potential available to entrepreneurs who simply analyse the marketplace around them for opportunities and then capitalise on these gaps with smart business solutions.

“As the local economy continues to grow, so will the number of opportunities begin to grow. This provides opportunities for those entrepreneurs wishing to start a business, as well as opportunities for those entrepreneurs with established businesses to relook at their business and analyse how they are able to improve or expand product lines,” says Botes.

Successful entrepreneurs have a craving, a desire and a need to constantly know more, says Botes. “It is those entrepreneurs that ask industry specialists about the latest trends, those that know which individuals are operating within their sector and those that research new technology that are able to identify the gaps currently in the market.”

He adds that often entrepreneurs think they have to reinvent products or services to have success, but this isn’t always the case. “Entrepreneurs should look at the small things that may have been overlooked or ignored by others, or look for good ideas that were poorly executed. With the right expertise and experience, an entrepreneur may be able to improve on an otherwise failed product or service.

“Entrepreneurs should also research international products and services that may not be known to the local market which could provide opportunities locally.”

Botes says that another secret to success is securing the maximum reward, for the lowest risk possible. “While this often isn’t the reality, if an entrepreneur knows all the risks associated to an investment decision for a new business, a successful entrepreneur should have the ability to consider the risk and commit themselves to a particular business decision,” concludes Botes.

Entrepreneurship attractive on the continent

Posted on April 3, 2014 by Webmaster

But SA hesitant to take the leap

South Africa’s economy is projected to steadily grow with 2.7% in 2014 and 3.2% in 2015, and according to Kobus Engelbrecht, spokesperson for the Sanlam / Business Partners Entrepreneur of the Year® competition, this growth will result in many opportunities for local entrepreneurs. He says that as South Africa’s economy grows, so will the amount of business opportunities available for entrepreneurs to take advantage of.

“South Africa currently offers many new and exciting opportunities for entrepreneurs. However, in order to capitalise on these opportunities, the country’s entrepreneurial spirit needs to be both promoted and encouraged amongst the public.”

The recently released Global Entrepreneurship Monitor 2013 Global report, which measures the levels of entrepreneurial activity between economies, revealed that in the Sub-Saharan African (SSA) region an average of 69% of all respondents believe that there are opportunities available to start a business, 47% have intentions to start a business and 74% are confident in their own skills to start a business.

Engelbrecht says that these figures are extremely encouraging for the growth of an entrepreneurship culture in the region, yet South Africa – ranked as the largest economy in Africa by the World Bank – achieved levels below average in these categories. He says that when taking a closer look at the attitudes and perceptions of South Africa, the report reveals that despite slight increases from 2012, perceptions of entrepreneurship in South Africa remained rather low.

“The 2013 report reveals that only 37.9% (up from 35% in 2012) of respondents believe that there are opportunities to start a business in the country, and 42.7% (up from 39% in 2012) believe that they possess the perceived capabilities to open and run a business. These figures highlight the need for a culture of entrepreneurship to be fostered as opportunities are abound and many individuals possess entrepreneurial characteristics. Awareness around how to capture these opportunities and how to develop these skills just need to be created.”

The report also revealed that SSA had the highest average of Total early stage Entrepreneurial Activity (TEA), which refers to those individuals in the process of starting a business and those running new businesses less than 3.5 years old, when compared to the other global regions.

“While SSA reported an average of 26.6%, South Africa’s TEA is however only 10.6%, and the lowest in the SSA region.”

The report also revealed that South Africa’s established business ownership rate is only 2.9%, which ranks the country last in the SSA region. When comparing South Africa to Brazil, a fellow BRICS economy, the country reported an average of 17.3% and 15.4% for TEA and established business ownership rate respectively.”

While TEA contributes to dynamism and innovation in an economy, established businesses are an important source of stable employment for the economy. Engelbrecht says South Africa’s low business ownership rate is concerning.

“These figures need to remain balanced as while it is important that entrepreneurship is promoted, it is also key to support business growth in order to ensure that SMEs survive the first three year of existence, which are the most risky.”

“Government has acknowledged that small businesses play a pivotal role in job creation and economic growth, and in order to grow both these numbers, investment into small business must be provided. As a result training development initiatives offered by Government, such as Small Enterprise Development Agency (Seda), have been put in place to assist with the development of entrepreneurs and therefore minimise risk.”

He says that the culture of entrepreneurship in the country is growing slowly and it is starting to be viewed as a legitimate career option. “The 2013 report highlighted that 74% of respondents in South Africa, believe that entrepreneurship is a good career choice.

“While many respondents regard entrepreneurship in a positive light, this doesn’t always translate into individuals actually starting a business. Fostering a culture of entrepreneurship in the country and promoting entrepreneurship as a career path, along with support and advice on how to turn an idea into a reality, is important for improving entrepreneurship levels in the country.

“Individuals starting their entrepreneurial journey do however need to be aware of the challenges they may face so that they are prepared for the ups and downs of running a business. Although they may experience bumps along the road, it will be the most rewarding challenge they have ever undertaken,” concludes Engelbrecht.

2014 Sanlam / Business Partners Entrepreneur of the Year® competition open for entries

Posted on February 4, 2014 by Webmaster

Fostering the culture of entrepreneurship in SA since 1988

The 2014 Sanlam / Business Partners Entrepreneur of the Year® competition was today launched on 4 February, and organisers are calling for entrepreneurs who are striving to contribute positively towards South Africa’s economy and increase job creation – the heroes of the country’s economy – to submit their entries.

Now in its 26th year, South Africa’s pre-eminent entrepreneurial platform, which embraces local entrepreneurship by offering an opportunity for entrepreneurs to showcase their achievements and elevate their profile, as well as their profits.

According to Nimo Naidoo, project manager at Sanlam / Business Partners Entrepreneur of the Year®, the competition aims to recognise, profile and reward entrepreneurs, as well as foster a culture of entrepreneurship in the country. “The competition celebrates and acknowledges entrepreneurial accomplishments and talent, and in turn inspires fellow entrepreneurs to take their business to new heights, as well encourages others to consider their entrepreneurship as a viable career path.

“It is truly inspirational to listen to entrepreneurs share their journeys, and it is important for these stories to be shared – not only to provide acknowledgment to the entrepreneur for their constant hard work and dedication, but also to inspire others to follow in their footsteps.”

The overall 2013 Sanlam / Business Partners Entrepreneur of the Year®, Tommy Makhatho, owner of BiBi Cash & Carry, says that the most interesting stories in business involve entrepreneurs and that these need to be shared, especially with the youth. “In my opinion, the number of entrepreneurs in the country is slowly declining, and one of the reasons is because the youth are not exposed to inspirational success stories.

“Countries such as the United States tell their stories, and while South Africa has stories to be told, they are not told enough. These stories need to be exposed to the youth, and competitions such as the Sanlam / Business Partners Entrepreneur of the Year® does exactly that.”

The competition provides entrepreneurs with the chance to win prizes worth R1 340 000, which includes cash prizes to the value of R350 000, as well receive valuable mentorship support, networking opportunities and associated marketing and national media exposure.

Makhatho (55) says being recognised for his business’ achievements has motivated and given him the confidence to review his business’ goals. “Winning this award has made me aware of where the business has come from and what we have survived thus far. It has also provided me with the strength to pursue another 25 years. This recognition makes me realise that this is only the beginning of our journey and that people should never stop dreaming, no matter their age.”

Makhatho says that he has also noticed an increase in interest towards his business since receiving the award. “I have been approached by many companies wanting to take my business to the next level. Thanks to the awareness generated from the awards, opportunities are now presenting themselves.”

The competition is open to entrepreneurs from all industries and businesses of any size. A series of national workshops will also be hosted leading up to the competition, which enables business owners to gain valuable entrepreneurial knowledge and lessons from a variety of speakers.

“Entrepreneurs truly are the heroes of our economy. The individuals that are providing positive knock-on effects for those around them, whether it is through business growth and development or job creation, should be recognised and rewarded. It is therefore vital that we equip these individuals with the tools and information that they need in order to grow their businesses further,” says Naidoo.