Tag: education

Identifying entrepreneurial opportunities in the SA marketplace

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“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.

Trading up

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Rent-An-Artisan-web

Entrepreneur finds business success in promoting others

Gerald Ndlovu saw an opportunity to create employment for 250 artisans, and he took it, writes Jane Steinacker-Keys.

Gerald Ndlovu by his own admission did not thrive in the corporate environment. His education, which includes a BComm in financial accounting as well as a post graduate in business management, made him the perfect candidate for a series of corporate posts including the Head of Operations for Liberty Properties and a Member Services Manager at the South African Institute of Chartered Accountants (SAICA).

Despite his success in the corporate world he found the rigid structures frustrating, which fuelled his yearning to venture out on his own. “In the corporate world there are rules for everything,” he says, “I found it stifling.”

“I am an entrepreneur, uncontrollable by nature,” says Ndlovu.

Whilst at his last post, he started attempting to fill the gap between corporate companies and black business. “I wanted to give black entrepreneurs a chance to penetrate the market.”

“This was a huge learning experience,” he says. Ndlovu discovered that corporates lamented the fact that there were no reputable black businesses and reputable black businesses felt that weren’t given a chance.

However, despite this need for there to be a connection between the two, Ndlovu found that many corporate companies had no “deliberate strategy to find new suppliers and no procurement policy focused on sourcing from black owned enterprises.”

A few months later, as he walking into Builders Warehouse he noticed that there were many artisans standing outside the store offering their services. What Ndlovu could not comprehend was why the store was not promoting them.

To him it was obvious that there was a synergy between the retailer, the artisan and the customer that was not being realised.

This was the gap in the market that Ndlovu had been waiting for. Starting with Builders Warehouse, he started Rent-an-Artisan.

Ndlovu realised that to be able to create a system where artisans could be sourced, he would need to be meticulous about the artisans he chose to represent.

His system starts with a basic vetting system, where the artisan’s details are checked. “I do a full background check, which includes checking for criminal records and the legal status of the guys,” he says.

After this, courtesy of funding from Builders Warehouse, the artisan is required to complete an evaluation on his skill set by an FET builders training college in Soweto.

“This can take up to three days,” he says. “For example, if a guy says he can do plumbing, we check all his skills and find out which he is most apt at,” explains Ndlovu. Who adds that plumbing has many sub-sectors and the skills required for a geyser installer would be very different to someone who could install a toilet.

Once this evaluation is complete the artisan receives a certificate of competence, a work overall and access to tools he may require. These are all courtesy of Builders Warehouse.

The artisans are also taught how to quote and are given guidance through regular workshops on matters such as customer service, safety and project management. Ndlovu runs a tight ship where artisans are rated to instil a work ethic that keeps customers coming back.

With two offices outside the Builders Warehouse in Fourways and Gleneagles, customers wishing to fix or renovate something in their homes can approach Rent-An-Artisan and find a vetted, reputable and credible artisan to complete the task required.

What Ndlovu believes is the key to the success of his business is that customers are receiving “value for money”. “Contractors have lots of overheads which pushes the prices up, our guys don’t have these which makes our pricing competitive,” he says.

The customer pays 50% upfront and 50% on completion of the project. The artisan receives 60% and Rent-An-Artisan retains 40%.

The benefit for Builders Warehouse, other than the fact that “they look good by helping small entrepreneurs,” says Ndlovu, “the link between the quote and the purchase of the materials required drives business directly into Builders Warehouse.”

“We’ve been open for about 6 months and have about 60 projects coming through the business every month,” says Ndlovu. The most sought out service is plumbing and tiling.

“One of our guys has just completed a paving job in a golf estate worth R350 000 and another guy is busy with a R70 000 painting job. A couple of months ago these were the guys sitting outside the store with a homemade sign,” he says with pride.

His goal is to have a Rent-an-Artisan office at every one of the 350 Builders Warehouse stores in the country, but realises that even if he wishes to add 50 sites in the next six to 12 months, that this may be an arduous task. Ndlovu is currently researching a franchising model to further empower black business men.

In addition to his success at Builders Warehouse, Ndlovu has installed artisan finder kiosks at eight CashBuild stores. Here, customers go to a self-service kiosk, type in what they require, choose the artisan best suited for the job by reading his profile and then can opt for the artisan to contact them.

The artisans on this system have to pay a registration fee of R550.

Ndlovu just pulled the figures and over the past year 2 500 calls have been logged of which 2 100 have been converted into work for the artisan. On January 31 this year the total value of the jobs created by this kiosk amounted to R750 000.

For Ndlovu’s 250 skilled artisans, 45 % of whom are builders, 20% plumbers and the balance an array of skills, there is a sustainable system that has been created to give them an opportunity to work.

“People aren’t just going to support you because you’re a black service,” says Ndlovu, “They will support you if you provide quality service that is value for money.”

 

Managing cultural sensitivity in the workplace this festive season

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The month of December is generally filled with a sense of excitement with not only anticipation for the end of year, but also around the various religious holidays within the period.

According to Dr. Erika Wassenaar, Group Manager: Learning and Development at Business Partners Limited, although Christmas Day is a public holiday in South Africa, it is important to guard against assuming that all staff celebrate this day as a religious holiday.

Wassenaar says that business owners need to manage religious holidays appropriately, given that in most workplaces, there is a combination of Christian, Jewish, Muslim and other religious and non-religious people working together in the same environment.

“Although there are various religious days in December, other than Christmas, some staff do not celebrate religious holidays at all. All of the various possibilities should be taken into consideration by business owners, as focusing corporate year-end events on a specific religion, i.e. Christmas, may result in people who don’t practice that particular religion feeling like outsiders, which can prevent true diversity within the workplace.”

She adds that business owners need to also ensure that all their employees’ unique cultural beliefs are equally represented and celebrated during the holiday season.

Advances in communication technology, such as the internet and cellular phones, have made the marketplace a more global concept. “In order for a business to survive, business owners need to be able to manage and utilise their diverse workplace effectively.

“Diversity in the workplace means bringing together people of different ethnic backgrounds, religions and age groups into a cohesive and productive unit.”

She adds that it is important for a business owner to be aware of and deal respectfully with each diverse group, culture, age group and religion in the workplace. “For example, business owners should determine which employees represent the four generations: Silent Generation or Traditionalists, who are employees born 1945 and earlier, Baby Boomers, born 1946 to 1964, Generation X, born 1965 to 1980; and Generation Y or Millennials, born 1981 and later.

“Each generation will have a different view about work values, life balance, religion, education and so on.”

Wassenaar says that managing diversity involves using the resources and experiences available for the benefit of the organisation. “A successful business owner can build a culture of tolerance and acceptance of religious views through education, training and conflict management strategies. Leading by example is the best way to show you respect and value each staff member in their own unique and diverse way and will ensure that the workplace is enriched by its diversity,” concludes Wassenaar.

Why I chose to enter

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Divesh Ramdhass, owner of Pharmacy at Spar Northway and 2013 competition entrant, shares some information with us about his business, insight into the pharmacy industry and discusses why he decided to enter the competition.

Briefly describe your business and the industry you operate in?

Pharmacy at Spar Northway was opened in December 2012 after being in operation for seven years as an independent stand-alone pharmacy, Northway Family-Care Pharmacy.

The pharmacy is community-based and focuses on the procurement, storage, compounding, counselling and dispensing of prescription drugs to patients. Always keeping our patients’ best interest at heart, we ensure that our services are completed with care and accuracy.

Another division of Pharmacy at Spar Northway sells over-the-counter medication to patients. Our specially trained staff make certain that all patients are advised on how to use the medication, what it is needed for and what the adequate treatment would be.

Other additional services we offer are through our in-store primary health care clinic facility which offers specialist health checks, such as blood pressure, diabetes and cholesterol monitoring, drug screening, prostate irregularity checks, as well as weight reduction programmes.

Where did the business concept originate from and when did you start your business?

Pharmacies operate in an extremely demanding marketplace, where competition can be described as vigorous. The days of the independent retailer are numbered, and as a professional I was not willing to compromise my profession.

This led me to the decision to remarket and reintroduce my pharmacy to the community. My business concept comprised of a fresh and modern approach to a pharmacy that attracted not only those in need of medication, but also targets those in search of future health. The concept was to change the dull and boring image of the pharmacy by implementing a bright and vibrant atmosphere that would motivate the community to make use of.

Have you always aspired to start your own business?

The aspiration to open my own practice stemmed from the love that I have for my profession. I love being a pharmacist and that motivated me to start my own practice. I firmly believe that being a good pharmacist is dependent on your ability to maintain a good relationship with your customers, as this allows you to understand their needs, their conditions and makes treating their ailments much more effortless.

Briefly describe some of the challenges that you have experienced as an entrepreneur?

Being an entrepreneur is fraught with difficulties. At tertiary level you are trained to become a professional, but most entrepreneurs are never given any formal education on managing a business.

In the pharmaceutical sector where medical aids force members to get their medication from specific service providers to eliminate any short payments, decisions have to be made to ensure patients stay rather than stray. At the end of the day a good caring attitude ensures that my patients return to my store.

What advice would you give to aspiring entrepreneurs?

No road is a smooth journey. In order to make your business a success you must keep your head up and follow through on your business plan, no matter how bleak your situation may seem. Believe in yourself and your employees, for that alone is motivation to keep your business momentum going. Make sure that all decisions are made carefully.

Why did you decide to enter the Sanlam / Business Partners Entrepreneur of the Year® competition?

This competition serves as a reminder that nothing is impossible. As my wife quotes to me “nothing is impossible… it’s all in the word… I’m possible”. This motivates me to achieve even further heights. The competition reminds of the importance to maintain the standard of my practice and think beyond the boundaries of my business. In addition, it gives me the exposure to drive my business forward.

Why would you recommend that fellow entrepreneurs get involved with initiatives such as Sanlam / Business Partners Entrepreneur of the Year®?

Our country lacks the passion of entrepreneurs. Such competitions instil a sense of passion and motivation in those who have the skills and knowledge to become entrepreneurs in a country in dire need of their skills.

It encourages more and more people to take their ideas and skills to institutions such as Sanlam and Business Partners Limited, who can assist them in cultivating those skills and ideas into a required resource and service that South Africa desperately needs.

Too many obstacles still hindering SA’s entrepreneurial growth

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It is no secret that South Africa suffers from an unemployment crisis, with millions of people actively searching for employment. The recent Stats SA Quarterly Labour Force Survey once again highlighted this crisis, reporting that the unemployment rate has increased to 25.2% in the first quarter of 2013.

According to Christo Botes, spokesperson for the Sanlam / Business Partners Entrepreneur of the Year® competition, entrepreneurship is often promoted as a means to curb unemployment, yet despite the growing unemployment statistics, many obstacles continue to challenge entrepreneurs.

Botes points to the latest World Economic Forum (WEF) Global Competitiveness Report 2012 – 2013 which ranked South Africa 123 out of the 144 countries surveyed in terms of the burden of government regulation.

He says that the regulatory environment is seriously affecting businesses due to the cost of compliance, time and complexity. “Entrepreneurs can’t always afford to hire specialist employees or consultants to provide guidance and advice on compliance issues. Some businesses need to comply with more than 45 laws and have to submit up to 24 returns. The time that it takes to comply with all of these regulations can be a substantial cost to a business.”

Botes says that limited access to finance is another reality many entrepreneurs continue to face. “Small businesses often find that they do not qualify for credit due to low collateral and too high debt to equity levels.”

According to the 2012 Global Entrepreneurship Monitor (GEM) South Africa report, only 14% of individuals intend to pursue a business opportunity within the next three years. “This is below the average of 27% for efficiency-driven countries.”

Botes says that this low percentage could be attributed to the obstacles and challenges entrepreneurs are likely to encounter along their entrepreneurial journey.

“Increasing costs which entrepreneurs do not have control over, such as electricity, rates and taxes and unionised labour forces, are factors entrepreneurs have to bear in mind. These rising costs provide a constraint to South African entrepreneurs as they can’t compete against illegal cheap labour practices by competitors and imported products coming from areas where costs such as energy, municipal charges and labour are much lower.”

He adds that limited appropriate entrepreneurial training and development programs being implemented is also a constraint, and one of the key reasons why such a large percentage of new businesses fail. “A lack of education and training reduces management capacity and limits the survival and growth of new businesses.

“This downfall can however be improved with more appropriate and practical entrepreneurship training at primary, secondary and tertiary level. Creating additional incubators where entrepreneurs can be monitored and mentored during their first five years of startup will also aid entrepreneurship.”

Botes says that for entrepreneurship to flourish, South Africa needs to change the way the spirit of enablement, empowerment and real support of entrepreneurs is practiced.

“Influencing government legislation, in not only how the country facilitates the subject of entrepreneurship in schools, but also what legislation should be put in place to ensure that a healthy legal environment in which entrepreneurs can operate, is vital to promoting entrepreneurship.

“Such a healthy environment would include electricity rebates for small and medium enterprises (SMEs) within their first five years of operation and improved incentives to employ more people, as well as relaxed compliance to laws, by-laws, rules and regulations.

“We must revert back to acknowledging and promoting entrepreneurial excellence as the norm and not the exception and in turn, develop a new standard of excellence in entrepreneurship all over South Africa,” concludes Botes.

Q&A with Mmabatho Mokiti

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Youth Month is celebrated annually throughout the month of June. Not only does this month coincide with the historically significant Youth Day, but represents the government’s commitment to confronting youth unemployment in South Africa. In order to counteract the increasing levels of youth unemployment, it is crucial to communicate and promote entrepreneurship as an attractive employment opportunity to South Africa’s youth.

Mmabatho Mokiti is an inspirational South African entrepreneur who is the proud founder of Mathemaniacs, a private tutoring company, and was also the runner up in the 2011 SME Toolkit South Africa Young Entrepreneurs Business Plan competition.

Nazeem Martin, Managing Director of the competition’s co-sponsor Business Partners Limited, described the finalists as role models to the rest of South Africa’s youth. “Their innovation, tenacity and dedication to chasing their dreams can serve as a true inspiration to all aspiring entrepreneurs.”

You were the runner up in the 2011 Young Entrepreneurs Business Plan Competition, why did you enter the competition?

I entered the competition because my business needed a “kick start”. My business was already running, but I didn’t have a business plan. I felt this would be a challenge and that it could also be very rewarding.

The prizes were very attractive and could assist me in taking my business to the next level. Prizes such as mentoring added a lot of value to my business.

Could you please provide a brief description of the business you created the business plan for?

Mathemaniacs is a two year old private mathematics, science and accounting tutoring company aimed at bringing ‘the FUN’ into studying maths, science and accounting. Most learners have developed a negative attitude towards these subjects. We therefore aim to eliminate the negative connotations around these topics by giving the learners private one-on-one lessons in their place of safety, where they feel most comfortable.

We bring ‘the FUN’ out of these subjects by using innovative teaching methods and applying Maths and Science to real life experiences, thus making the work easier for the learners to understand and remember. We attempt to make learning enjoyable, which then builds the learners’ confidence as a result of improved school results. Our target market consists of school, university and adult students.

We also organise workshops and camps for larger groups, where we again, strive to make learning Maths and Science an enjoyable experience.

We have also started to develop a statistics department, where we help postgraduates with their data analysis for their theses, by helping them to build a regression model and measure the impact of a project.

Have you always aspired to become an entrepreneur?

From a young age I have always wanted to be an entrepreneur. I grew up around my grandfather, who was an entrepreneur, and watched him do what he loved, while making money. This experience motivated me to pursue the same thing.

At that time I didn’t know what type of business I wanted to start, but when I finished studying I decided to make use of my passion for mathematics, science, education and youth development to form a business. I had just finished university and was sure that I didn’t want to work in a nine-to-five job. I decided to use my last R500, which I had earned from a student job as a tutor, and bought my first textbooks. I printed a couple of flyers and asked my cousin to help me distribute them at a school parking lot.

A week later a parent called me desperately in need of lessons for her child. Soon after my lessons started the child’s marks began to improve. Soon after, my business started to expand as my clientele began to grow via the positive word of mouth generated from my first student.

How important do you believe a strong business plan and pitch is in the success of a business?

A strong business plan is crucial to the success of a business. Firstly, a business plan is a good indicator of your proposal’s feasibility. Secondly, a business plan helps an entrepreneur structure their business, by implementing processes and objectives.

Most times aspiring entrepreneurs think that they only need a business plan in order to apply for funding, but a business plan establishes basic business guidelines. A concrete plan allows you to assess your environment and establish if a need and a niche in the market exists, hence determining whether your business will be a success or not.

What are the biggest challenges you have experienced as an entrepreneur?

The biggest challenge has been convincing students to leave their current tutoring company to join Mathemaniacs. I also struggled to convince parents that enlisting with Mathemaniacs would improve their children’s marks while, teaching them to enjoy the subject matter.

If you could provide advice to other young aspiring entrepreneurs, what would it be?

If you dream of becoming an entrepreneur, go for it! Everyone may not believe in your idea in the beginning, but you need to remain fully committed. You should believe so strongly in your business that you end up convincing others to do the same. Being an entrepreneur is much like being a sales person, because at the end of the day, you need to convince others to believe in your idea. Nothing makes a business more successful than passion.

A stylish route to entrepreneurship

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Lewis Thomas, Partners Hair Design, 2010 and 2011 Finalist

For Lewis Thomas, entrepreneurship is a trait he was born with. One of his first memories of wanting to run a business was at the tender age of 12, when he saw an opportunity to earn money by opening and closing a farm gate in Bath, England, for motorists on their way to play golf. Needless to say, it did not take long before he started selling golf balls to the motorists. “If you want to become an entrepreneur, just do it,” Lewis says.

Partners Hair Design comprises of 18 salons strategically positioned in up-market shopping malls in and around Cape Town. The head office and training school is based in Kenilworth, and the newest edition to the group of salons will be opening in 2012 also in Kenilworth but at a separate location – boasting a SETA accreditation. The salons offer the following services: shampoo, cut and blow-dry; colour and highlighting; extensive in-salon hair treatments; and a vast selection of professional retail products and styling tools for home care use. “The company was established in 1984 and, after much thought, I decided that the company was about many people working together, namely, staff, suppliers, customers etc and not just about one entity,” Lewis explains. “Hence the name Partners Hair Design.”

Back in the day

Having started out as a hairdresser when he was 15, Lewis gained as much experience as he possibly could. Fourteen years later, at the age of 29, he opened his first salon. “While I was learning the hairdressing trade, I often found myself feeling uncomfortable about the decisions made by my superiors, several of which I did not agree with,” he shares.

Lewis soon realised that while enjoying the stability of being employed, he should learn as much as possible from his bosses, even though they often made inaccurate decisions. “I would analyse their rationale and often came up with better solutions to the situation at hand. During those years, as a result of me challenging their decisions, I was often left feeling uncomfortable and was made to feel like ‘just a hairdresser’ – nobody important,” Lewis continues. “It was in this uncomfortable and less than ideal space that a seed was born. I knew that one day I would open my own salon, and I made a personal promise that I would never make myself or my staff feel as though they are not important.” According to Lewis, the company’s core differentiating factor can be attributed to its rock solid foundation of education and training, which has been part of their business methodology from the start. He praises his stylists, whom he refers to as “so skilled and of such a high caliber”. “Partners Hair Design only makes use of internally styled visuals that are displayed as branded images throughout our salons.”

Lewis has three children and when he is not busy styling people beautiful, he spends his time with the family, and incessantly attends classes at the ‘University of Life’. “I do not take part in organised sports,” he admits, “but I do spend some time running.”

Although Lewis holds a City and Guilds of London Institute qualification in ladies and gents hairdressing, his most significant achievement at school was achieving immigration papers for South Africa, which he affectionately calls home.

Efficient entrepreneurial education

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“Entrepreneurs need to take their rightful place as role models in South Africa so that when young people leave school or university, they consider it as a viable career option.” – Nazeem Martin, Business Partners Managing Director.

The canon of entrepreneurial research clearly shows a direct correlation between the level of education of an individual and his or her ability to found a sustainable business.

There is also a definite link between the level of education of a business owner and the number of jobs the operation can potentially create.

But, experts say that there is a real and dangerous lack of entrepreneurial education in South Africa.

The Global Entrepreneurship Monitor (GEM) for example, has cited education a major inhibitor for nearly a decade.

Entrepreneurial education is a complex subject and the problem is two-fold: educated individuals often do not see the entrepreneurial arena as a viable income-generating option; and individuals engaged in entrepreneurial activities do not always have the requisite skills to run their businesses.

The introduction of the Broad Based Black Economic Empowerment Codes of Good Practise has lead to a greater focus on the latter inhibitor as businesses receive points towards Enterprise Development when providing non-financial support and training to SMEs.

However, this does not mean that the pool of educated, high-growth entrepreneurs entering the economy has increased.

Young guns

Academics seem to agree that successful entrepreneurs share a range of common attributes.

Presenting a research paper at the Wits Business School Centre for Entrepreneurship’s annual entrepreneurship conference, Dr Shelley Farrington pointed out that to promote entrepreneurial activity, a population needs to possess a particular set of attributes that promotes entrepreneurial behaviour.

The study Dr Farrington participated in looked at the entrepreneurial attributes of undergraduate business students at different universities in South Africa.

Several different attributes were investigated including risk taking, self-confidence, the ability to overcome failure and commitment.

The study found low levels of risk taking, knowledge seeking, initiative and continuous learning amongst students – all key entrepreneurial drivers. It also found very little improvement in the development of these attributes when compared to a 2001 study.

The conclusion was that while a number of entrepreneurial attributes are present in the students (and that it helps them to succeed at university), the individuals do not really see themselves becoming SME operators.

The paper recommends that educational institutions need to create an environment that fosters entrepreneurial attributes. More importantly however, is the proposal that students with the potential to become entrepreneurs need to be identified and mentored during their entire educational process.

Entrepreneurial education, the researchers say, need to be incorporated into as many different learning experiences as possible, as often as possible.

Teach the teacher

The way in which entrepreneurial education takes place should not be underestimated, according to Prashanth Naidoo. He looked at how business simulation techniques could help entrepreneurial education.

The premise is that simulations help students to gain practical experience.

“There is a lack of entrepreneurs in South Africa. We need to look at ways to get young people excited about entrepreneurship,” he said, adding that the skills needed to start and run a business can be taught.

But, the environment in which this takes place, needs to reflect the business reality. It should also be creative and multi-disciplinary.

However, Naidoo’s research points out that the facilitator of the simulation plays an exceedingly important role as it is their job to make the experience relevant and effective.

So, significant attention must be given to training the trainers to ensure entrepreneurial development amongst students.

This is something that the Euveta project in Tanzania has done exceptionally well.

Hook, line and sinker

Run by the Triodos Facet consultancy, the project sought to train graduates from a number privately owned vocational training centres in practical business skills.

Southern Africa representative, Anouk Verheijen, explained that many students struggle to find formal employment after graduating. They revert to self-employment in the informal sector.

Through entrepreneurial training however, it was hoped that these individuals would start small, sustainable businesses with growth potential.

Initially, action learning, role playing and practical exercises are used to evoke the idea of owning and running a business. Over time, training becomes more formalised. More than 3 000 students were trained in the project’s pilot phase.

But, the project found that one of the key differentiators was the trainers themselves and the teachers had to undergo a significant mindset change.

Going forward, the initiative will be rolled out to 120 schools where a mere 360 teachers will attempt to train nearly 14 500 students.

The private Covenant University in Ota, Nigeria, follows a similar mantra and introduced a mandatory entrepreneurship course for all its students.

The course is customised to 15 different fields and vertical industries because this provides the students with the practical knowledge to pursue entrepreneurial activities.

Local soil

While a number of private institutions are increasingly looking at the importance of entrepreneurial education, there is still much work to be done on local soil.

The GEM report recommends that the starting point is basic education where skills such as numeracy and literacy need to be improved.

From there, effective, countrywide entrepreneurial training and business skills must be rolled out at secondary school level.

In general, educational support should address the needs of individual entrepreneurs and the challenges faced at a particular point in time in order to lower start-up failure rates.