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igniting potential
Empowerment Through Entrepreneurship
FeBRUaRY 2o13Why EmErging markEt EntrEprEnEurs should look to silicon Wadis, savannahs, and tigErs
In the innovation hubs and entrepreneurship circles of emerging
economies, the term “Silicon Valley” is an extraordinarily potent one,
evoking rich emotions and idealistic notions. Visions of big ideas
launched by bold entrepreneurs from beanbag chairs. A place where
investment flows like spring rain and 24 year olds become titans of
industry.
In the startup ecosystems of emerging economies, Silicon Valley is
studied, revered, respected and admired. “A Silicon Valley entrepreneur/
investor is coming to meet us?” Eyes light up. “In Silicon Valley…” You
have our attention.
Yet my friend Mbwana Alliy, a former –yes, Silicon Valley - entrepreneur
who now manages Savannah Fund, a Nairobi-based seed capital fund
specializing in high growth technology, has told me repeatedly that
Silicon Valley is not a place, thing, or specific model.
“It’s a concept” Alliy says, a “set of principles.”
The Silicon Valley approach rewards and encourages extreme risk
taking, accelerating potential high net worth companies by splashing
large amounts of cash across several ideas with the hope that one in
a hundred succeeds.
Yet Silicon Valley is a long way both in physical proximity and context
from the world’s new centers of innovation. It offers a very different set
of social, cultural, economic and even legal conditions and constraints
than the emerging markets of the world.
In this final installment of our three-part series comparing the vibrant
coNTENT
JoNAThAN KAlAN
1
1 Why Emerging Market Entrepreneurs Should look to Silicon Wadis, Savannahs, and Tigers
3 Innovative Upstart Entrepreneur vs the Resourced Big Players
3 SA Needs Entrepreneurship Ministry and Academy
5 challenges, opportunities and Innovations for Emerging Agric Entrepreneurs
6 African SME’s operating Internationally Prosper, Study find
7 Brics Summit to Benefit the Rest of Africa: SA Minister
8 10 Business lessons for the Young Entrepreneur
9 South Africa’s hi-Tech Tour operator
11 Why African Tech Entrepreneurs Need to learn from Each other
12 Anglo’s Zimele helps SMME
14 NGo creates 70 000 Jobs
15 Doors of hope open for Mackenzie Youths
17 Study Shows Mobility can Increase per capita Growth
18 Nigeria: We Need More Youth Entrepreneurs in Nigeria – INTEl.
21 Unemployment Rate on the Rise, Entrepreneurship Encouraged
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startup environments of Amman, Jordan, and Nairobi,
Kenya, I’d like to explain the ultimate point of this little series;
We need to forget about the valley, and start looking at
the wadis, savannahs, and tigers.
What I mean is that technology startups and entrepreneurs
in emerging markets need to begin looking outwards, and
at each other, for inspiration, ideas, and guidance.
Looking East
We saw that in some regards Jordan looks more like Kenya
than Silicon Valley, and that despite certain differences
in entrepreneurship ecosystems and cultures, thee two
places have quite a lot in common. And why shouldn’t
they?
Emerging economies around the world, specifically in
Africa and Asia, are becoming key drivers of new global
economic growth, transforming the global balance
of power as their rising middle classes and hungry
workforces create billions of new consumers and potential
employees.
Yet their barriers to entrepreneurship are often universal:
Unemployment. Talent gaps. Broken education systems.
Absent or risk-averse capital. corruption. Murky business,
bankruptcy and investment laws. The list goes on.
Because of these unique challenges, mostly absent in
Silicon Valley, places like Kenya and Jordan in Africa and
the Middle East have more reason to look at each other,
or India, china, and the east Asian ‘tigers’ to learn how to
build ecosystems.
India’s model of outsourcing might not map directly onto
Kenya’s IT sector, while china’s model of iterating quick,
less expensive versions of new global products, may not
be a tactic that Jordan will directly aim for.
But the ways that these ecosystems build and scale
companies while training and nurturing talent could be
useful to learn from. companies that are flourishing in
today’s emerging economies have done so because
they have either pioneered their own models, or adapted
Silicon Valley concepts to fit their specific circumstances.
Innovation in Localization
The point is simple: Silicon Valley certainly has valuable
lessons to be learned and shared, and sound principles,
theories and strategies that can be tested globally. But,
as the developing world looks to solve its own problems
and address specific needs, new models of innovating by
localizing will rise.
The relevant questions become: What could Kenyan
e-commerce startups learn from Jordan’s MarkaVIP or
Dubai’s Souq? What could Jordanian mobile startups learn
from the success of Kenya’s M-Pesa, or the companies
filling Nairobi’s M;lab incubator? how could Ushahidi’s
crowd-mapping platform exchange knowledge with
incident monitoring platforms like 7arat.com in Jordan or
harass Map in Egypt? What could a Nigerian agricultural
entrepreneur learn from a successful seed distribution
company in Kenya? The list goes on.
I want to see more Kenyans in Jordan, and Jordanians in
Kenya. I want to see Rwandans learning from Nigerians
and Egyptians learning from Pakistanis. I want to see the
same excitement and enthusiasm when a successful
Indian or chinese entrepreneur walks through the door as
I see when someone visits from Silicon Valley.
I want to see entrepreneurs looking at cases of success
and failure from Accra to Karachi, Freetown to Kigali, and
from Amman to Nairobi, that may be offer more relevant
instruction for emerging economy entrepreneurs than the
rise of Facebook and Google.
And forget the “get-rich-quick” myths that perpetuate in
startup scenes. Building in an emerging market takes a
slower approach, one that builds up the entire ecosystem
instead of a single company, and one that is constantly
learning and adapting to the global marketplace.
Jonathan Kalan is journalist and photographer specializing
in technology, innovation and social development
in emerging markets. A graduate of the University of
california, Santa Barbara, he has traveled to over 43
countries and collaborated with NGo’s, social enterprises,
technology start ups, and media companies, and was
a Diageo Africa Business Reporting Awards 2011 Finalist. he
is currently based in Nairobi, Kenya, where he freelance for
various media outlets including BBc, huffington Post, and
cS Monitor, and also serves as Sandbox Network’s Nairobi
co-ambassador. he can be found on his website and on
Twitter at @KalanThinks.
Kalan, J. 2013. Why Emerging Market Entrepreneurs Should
look to Silicon Wadis, Savannahs, and Tigers. Wamda
[online]. 24 January 2013. Available at http://www.wamda.
3Empowerment Through Entrepreneurship
FeBRUaRY 2o13
com/2013/01/why-emerging-entrepreneurs-should-
look-to-silicon-wadis-savannahs-and-tigers [accessed 7
February 2013].
AccRA - So you own a small business and you have a
great and innovative idea. You realize though that you
need to form strategic partnerships with larger businesses.
So you identify the right partners, they endorse your idea
and your business is a huge success.
This is the ideal scenario and if the right approach is taken,
it’s often what ends up happening. Sometimes though
things don’t go so well and small businesses end up with
no partnership and someone else taking control of their
ideas.
one of the most well-known cases of big business stealing
from an entrepreneur occurred in the 1970’s. Robert
Kearns, a former mechanical engineering professor at
Wayne State University in Detroit, Michigan approached
Ford Motor company and chrysler corporation with an
idea that he had.
Kearns had developed intermittent wipers for cars
and wanted to partner with auto manufacturers to
commercialize the technology. Ford and chrysler however
were hesitant to enter into the partnership because Kearns
wanted to be able to manufacture the windshield wipers
himself (and most likely maintain control of his idea). So
what ended up happening? The auto manufacturers
produced the windshield wipers on their own, violating the
terms of the discussions Kearns had previously had with
them and also infringing on the patent that he’d filed on
his invention.
These actions sparked a court battle which dragged
on from 1978-1990 between Kearns, Ford and chrysler.
Kearns eventually won a settlement and recognition for
his invention, but in the process he lost money, his family
and his dream morphed into what some would call an
obsession.
Kearns’ story has become one of the best known patent
infringement cases in recent history. Though Kearns’ story
may represent an extreme example of what can go
wrong, it does highlight the need to tread cautiously when
entering into partnerships with other businesses, particularly
very large and powerful corporations. It is important to
conduct the necessary due diligence when approaching
these negotiations.
You must identify what kind of track record the entity
you’re considering in its partnerships and clearly identify
what each of you stand to gain as well as your incentives
to comply with the agreement. It is also important to seek
appropriate legal counsel and have a clearly defined
agreement to which both parties agree to adhere.
This applies when the partnership is formalized and in
the early stages when an idea is being pitched. Keep in
mind though that you must strike a balance. You want
your potential partners to be aware that they need to be
transparent, but at the same time they are often bigger
and more powerful than you are.
The immediate gain of the partnership will most likely be
in your favour, hence it is imperative to ensure that your
approach does not put them off from the very beginning
and preclude any potential discussions.
Juliana Taylor is the founder of Start Smart Ghana ltd. She
can be contacted on email [email protected]
Taylor, J. 2013. Innovative upstart entrepreneur vs the
resourced big players. Entrepreneurship Africa [blog]. 24
January 2013. Available at http://entrepreneurshipafrica.
com/business-resources/experts/innovaive-upstart-
entrepreneur-vs-the-resourced-big-players.html [accessed
7 February 2013].
SoUTh Africa’s efforts to promote small business and create
jobs are not succeeding, and a ministry and academy
innovativE upstart EntrEprEnEur vs thE rEsourcEd big playErs JUlIANA TAYloR
sa ‘nEEds EntrEprEnEurship ministry and acadEmy’ EDWARD WEST
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should be created for the sector, Prof Dilip Garach, of
Garach & Garach Financial Advisory Services, said on
Wednesday.
Mr Garach said at a function of the Sanlam/Business
Partners Entrepreneur of the Year competition that the
government ministry should be created because Finance
Minister Pravin Gordhan and Trade and Industry Minister
Rob Davies did not have enough time to deal with a sector
that had the best potential to tackle unemployment in
South Africa.
Mr Garach said the youth wage subsidy was likely to result
in companies employing fewer older workers in favour of
younger workers, the African National congress’s proposed
job seekers’ grant was likely to be abused by its recipients,
and while the government’s jobs fund had enjoyed some
successes, it entailed extraordinary red tape to access the
financing.
Mr Garach said the impact of small business on growing
unemployment was indicated by gross domestic product
(GDP) growth in Uganda, china and India, which averaged
9%-10% between 2001 and 2011, while South Africa’s was
2.5%.
of these countries, Uganda had the lowest unemployment
rate, at 3%-4%, and the highest percentage of entrepreneurs
versus its population, at 27%-28%.
china and India’s percentage of entrepreneurs was 13%
and 15% respectively, while for South Africa the figure was
only 2.3%.
“Government can’t create sustainable jobs,” Mr Garach
said.
There needed be a “radical change” in the way the
government stimulated the development of small
businesses, he said.
christo Botes, executive director of Sanlam/Business
Partners Entrepreneurs of the Year competition said 45%-
50% of South Africa’s GDP was derived from small business,
and the aim of the National Development Plan was that
by 2030, small business should account for 90% of all new
jobs created.
he said there were only 1.5-million small businesses in
South Africa, and 1-million of those employed fewer than
five people each.
Mr Botes said a culture of entrepreneurship needed to be
fostered in South Africa, to replace the culture of relying
on a job for financial survival.
Mr Garach said the cost and red tape associated with
doing business in South Africa needed to be simplified and
reduced.
It took six months to register a business, he said, while
registering for value-added tax (VAT) was a “nightmare”
that involved a face-to-face interview and “silly questions”.
Similarly, the red tape associated with registering with the
Unemployment Insurance Fund, for pay as you earn tax
(Paye), income tax and the workman’s compensation
fund was immense.
he said there were also invariably penalties and interest to
pay if the growing number of government forms were not
completed.
Entrepreneurs then also work with complex labour laws
and with the trade unions.
Dealing with other taxes such as the proposed National
health Insurance and local government taxes were
additional administrative burdens.
There were also complicated black empowerment and
employment equity issues that needed to be dealt with,
Mr Garach said.
he said the administrative cost of doing business needed
to be reduced, and the tax and business registration
system needed to be simplified for entrepreneurs.
A school of entrepreneurs should be established, there
should be incentives for entrepreneurs and the labour
market should be liberalised for the small business sector,
he said.
West, E. 2013. SA ‘needs entrepreneurship ministry and
academy’. BDlive [online]. 7 February 2013. Available at
http://www.bdlive.co.za/business/2013/02/07/sa-needs-
entrepreneurship-ministry-and-academy [accessed 7
February 2013].
5Empowerment Through Entrepreneurship
chief among complaints made by Nigerians in the
agricultural sector is the abundance of information
gaps, which makes coordination among stakeholders
very difficult. This is because many stakeholders do not
know where the opportunities are and, as such, cannot
exploit them. Additionally, in a knowledge-based field
like agriculture, the lack of knowledge on trends and
techniques has very costly implications. Finally, symbiotic
relationships, which are formed when like-minded
individuals are able to connect, pool resources and
maximise returns/outcomes, are often difficult to obtain.
In light of this, a group of individuals has taken the
initiative to create an online community of knowledge
for all stakeholders and key players in the agriculture
industry. This serves to provide content management,
knowledge sharing, networking and business
matchmaking opportunities for existing and emerging
agribusiness entrepreneurs looking to share business
ideas and innovative technology or invest and/or
buy products within and beyond borders. This online
community of knowledge is called The Global Farmers
Register (globalfarmersregister.com).
leading the team is a young strategy and business
development professional, Simileoluwa lawson.
Graduating from the University of lagos with a B.Sc.
in Geography, lawson went on to work for Rimsom
Associates – an international trade consulting firm
with branches in Nigeria. At Rimson, he worked as a
brand custodian and later on as a senior associate on
economic planning. While at the firm, he worked on
the annual trade-related conference – Partnership on
Trade Industry and commerce (PoTIco) – which was a
collaboration between the US ambassador to Nigeria
2007-2010, the Bank of Industry, and First Bank of Nigeria
plc.
Notable among the successes recorded by PoTIco is
the landmark AcET meeting with the oyo State Ministry
of commerce and the West Africa Trade hub which
formed a public-private partnership, integrated the
AcET cashew processing plant with that of oyo State,
and ultimately created jobs for 2,500 people. Another is
the launch of the US Bank of Industry/Agriculture Growth
opportunity Act (BoI AGoA) Resource centre, which
has helped Nigerian businesses better utilise the AGoA
resources available to them and access the US market.
Finally, with all the experience and expertise lawson and
his partners gained on their numerous projects, it is safe
to say that The Global Farmers Register is an offshoot of
the PoTIco project.
With no previous background in agriculture, lawson
revealed how he became interested in agriculture. “It
all started with PoTIco,” he said. “We had to research
extensively on areas of mutual interests for Nigeria and
some developed economies. The focus was on developing
the non-oil sector and the research was extensive. At the
time, there was not a lot of noise about agriculture, but
my team and I were able to determine that it was the
largest sector that held the most promising opportunities.
Trying to focus on those opportunities, however, became
a challenge because people were more focused on
discussing the challenges in the sector.
“What I was able to get out of those conferences and the
research in particular was that we needed an organised
body of knowledge that will cater to all concerned. As
we all know, knowledge is dynamic. As such, the best
way to get real-time knowledge was to create what I
call an agric-business destination that is interactive and
inclusive, where individuals can contribute experiences
from their wealth of knowledge or share real-time
experiences of challenges they just overcame. This
was also intended to be an avenue for disseminating
information on opportunities in the agricultural space
irrespective of political boundary lines between countries.
If we share knowledge about these challenges and
their accompanying solutions, other people in different
regions but perhaps with climatic, geographical,
topographical and technological challenges can learn
from our experiences and avert such problems before or
when they surface.”
on how he founded The Global Farmers Register,
lawson said: “I have a constant yearning for cutting
edge strategies and also a penchant for generating
volumes in business. I strongly believe that we do not
have to re-invent the wheel each time in order to create
opportunities; if we tweak it well enough, we can cater to
multiple needs. That was how The Global Farmers Register
challEngEs, opportunitiEs and innovations for EmErging agric EntrEprEnEurs TUKENI oBASI
FeBRUaRY 2o13
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was conceived. We started first with a simple register or
database as you may call it, but eventually it has evolved
into a full community with a database covering over 50
countries, though we have little participation in some
countries recorded. We only just recently launched the
beta version which has come equipped with so many
agric-business tools. We are currently getting ready
to launch our inclusive agric financial tool called the
timeline matrix, which allows agric businesses to set up
virtual value chains and submit them to banks as an
automated loan application. We are looking to partner
with the African Rural and Agricultural credit Association
(AFRAcA) to deploy this around Africa.”
In 2012, lawson was invited to the UNDP/EMRc forum
in Dakar where he passionately advocated for youth
engagement in agriculture through integration,
information and inspiration. Earlier in the year, he was
at the 5th AFRAcA Agri-banks Forum in Kigali, Rwanda,
speaking on the need to unlock finance for the
agricultural sector through innovative IcT systems. his
presentation focused on strategies for rural outreach,
market access, information dissemination and inclusive
agricultural financing. As a business professional, he has
seen the opportunities and prospects. Back at home, he
manages the Frebay International company limited,
providing strategy and logistics supports (including
need-based assessments and opportunity charts) for
businesses, advising them on how to best maximise
economic returns with limited resources.
This is why The Global Farmers Register is important and
the potential it promises for all stakeholders in the sector
is enormous. More will be said about lawson, agricultural
opportunities and challenges for entrepreneurs in my
next article (next week Thursday). As a young Nigerian
under 30, lawson is a testament to the fact that there
are passionate Nigerians who are working within and
beyond agriculture to make a difference to society. They
recognise prospects, create opportunities, advocate
change, and put their money where their mouth is. And
they continue to serve as role models to other young
people who are still unsure of how they can engage
with society, exploit their seemingly meagre resources
and connect with external opportunities. They remind us
that we might not see the big picture yet or believe in
a national transformation agenda but in their own little
niches and in big and small ways, some nagropreneurs
are transforming Nigeria.
obasi, T. 2013. challenges, opportunities and
innovations for emerging agric entrepreneurs. Business
Day [online]. 7 February 2013. Available at: http://
www.businessdayonline.com/NG/index.php/analysis/
commentary/51207-challenges-opportunit ies-and-
innovat ions - fo r-emerg ing-agr ic -ent repreneur s -1
[accessed 7 February 2013].
A NEW study for global courier and logistics group Dhl
Express finds that small and medium African companies
engaged in international markets are prospering in the
“global village”.
of the companies surveyed, 26% of companies trading
internationally “significantly outperform their market”.
This compares to 13% of those with operations only in
their home country.
But the continent’s aging infrastructure, high customs
duties and poor-quality data on trade were found to
hamper small and medium enterprises (SMEs). They
also cited difficulty in establishing contacts with foreign
partners, and in creating an overseas customer base.
conducted by multinational information company IhS,
and released on Monday, the study showed international
trade had become a “key driver” of the success of
SMEs.
It also found there was a growing focus on promoting
Africa’s international trade.
charles Brewer, MD for Dhl Express sub-Saharan Africa,
said the study reflected the outlook for SMEs in Africa.
“The possibilities opened up by new technologies, the
internet, and modern transportation means that there
are many foreign trade opportunities out there for
African businesses,” he said on Monday.
SMEs cited the key benefits of an international approach
as “access to new markets”, as well as access to “know-
how and technology”, and “diversification” of their
african smEs opErating intErnationally prospEr, study find
MARK AllIx
7Empowerment Through Entrepreneurship
products or services.
The macro-economic analysis and survey of 410 SME
directors in Group of Seven (G-7) countries and Brazil,
Russia, India, china and Mexico indicated that SMEs
engaged in international markets were twice as likely to
be successful as those that only operated domestically.
The study, conducted between September and
November last year and based on three-year average
annual growth rates, focused exclusively on businesses
with between 10 and 249 employees, and annual
turnover of less than €50m. It excluded “micro enterprises”
with less than 10 employees.
Most of the better-performing SMEs identified in the
study employed more than 50 people, underscoring the
importance of human resources in overcoming barriers
to international growth.
SMEs in Africa were increasingly being recognised as
drivers of economic growth. While the study said no data
was available for the number of SMEs operating on the
continent, they made up more than 90% of formalised
business in countries such as Ghana and South Africa.
The research also found that SMEs founded in the last
five years were more likely to have international business
operations than older SMEs.
Significantly, the study said the majority of SMEs who had
outperformed their markets indicated they also planned
to further increase exports over the next three years,
despite the uncertain economic environment.
Allix, M. 2013. African SMEs operating internationally
prosper, study finds. Business Day [online]. 5
February 2013. Available at: http://www.bdlive.
co.za/business/2013/02/05/afr ican-smes-operating-
internationally-prosper-study-finds [accessed 8 February
2013].
Polokwane - The 5th Brics Summit, to be hosted in South
Africa in March this year, is expected to benefit the
entire African continent, says Minister in the Presidency
brics summit to bEnEfit thE rEst of africa: s.a ministEr MohlATlEGo MoITSI
FeBRUaRY 2o13
for Performance Monitoring and Evaluation, collins
chabane.
chabane was speaking during the first Brics [Brazil,
Russia, India, china and South Africa group of countries]
roadshow held in Polokwane, limpopo province, on
Wednesday.
As part of the build-up towards South Africa’s hosting
of the Brics Summit, government is hosting a series of
roadshows in all nine provinces.
“Although we do not represent Africa in Brics, but
represent the interests of our country, we still carry the
aspirations of all Africans from cape to cairo,’’ said
chabane.
The minister said it was important to harness the potential
of the African continent at summits like Brics, which will
be held at the Durban International convention centre
in KwaZulu-Natal on March 26 and 27.
“As such, African countries will be invited to partake
during the summit,” he said.
he added that the roadshows were aimed at getting
together provinces and stakeholders to make inputs in
hosting a successful summit.
‘’We are conducting these roadshows to interact
with societies, so that societies can understand the
challenges and opportunities faced by the Department
of International Relations [and cooperation] when they
interact with other countries,” he said.
chabane said although the formation of Brics has
helped to stimulate economic growth opportunities, the
establishment of the bloc hasn’t gone without criticism.
“People were criticising South Africa because countries
in Brics have well developed manufacturing sectors,
and they have huge and highly educated and skilled
populations,” he said.
chabane emphasized that Brics “is here to stay” and that
the five countries involved would form a Brics Bank that
would encourage these countries to share resources in
order to meet the Millennium Development Goals.
he said a ‘think tank’ would also be established, which will
consist of intellectuals from partnering countries to plan
and strategise on how best Brics can bring development
to the member countries.
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The minister said a Brics Business council would also be
formed to identify potential investment opportunities
and to intensify and build stronger relationships that
would see countries develop good infrastructure, which
can take the various economies to a higher level.
“The government aims to educate the nation about Brics
and its importance through workshops,” said chabane.
Deputy Minister of the Department of International
Relations and cooperation, Ebrahim Ebrahim, said the
department and the country stood ready to host the
Brics summit.
The theme of the summit is ‘Partnership for Development,
Integration and Industrialisation’.
Various activities have been planned, such as an
academic forum, business workshop for the ministers of
finance and cultural events.
In line with the promotion of regional integration, for the
first time, the summit has invited the African regional
economies as well as the African Union.
-SAnews.gov.za
Moitsi, M. 2013. BRIcS Summit to benefit the rest of Africa:
SA Minister. Entrepreneurship Africa [blog]. 23 January
2013. Available at: http://entrepreneurshipafrica.com/
business-resources/entrepnews/brics-summit-to-benefit-
the-rest-of-africa-s-a-minister.html [accessed 7 February
2013].
Fraser is involved in managing and assessing new
investment proposals for the venture capital firm, and
through her career has identified some philosophies that
may benefit young entrepreneurs, these include:
1. Don’t wait for an invitation
“No one is going to invite you to be a part of the South
African entrepreneurial ecosystem. If you want to be
involved, it’s important to be proactive. Join associations
and if there aren’t existing ones that are of interest to
you, start your own organisation.”
2. Love what you do, don’t do what you love
“Your job should always provide you with a sense of
fulfillment. however, this doesn’t necessarily mean that
just because you are passionate about something that it
will automatically translate into a successful business.”
3. Be a builder
“I’m happiest when I’m creating something. I love being
part of the Invenfin team and the Silicon cape Initiative,
because it involves working with and bringing together
people who are passionate about building the South
African entrepreneurial ecosystem by creating better
startups and increasing access to capital.”
4. What makes you tick?
Fraser believes each person should take the time to
determine how he or she makes decisions.
“When you’re looking for a potential investor, you need
to know what makes you tick. You’ll find that people
within your team will either make decisions with their
heart, mind or gut. None of these methods are right or
wrong, but it’s crucial that the team understands one
another and are all working towards the same goal.”
Fraser continued, “Don’t underestimate the role that your
gut feeling plays either. From an investor’s point of few,
a startup may tick all the boxes, but your chemistry as a
team is equally important.”
5. Do the hard thing for you
Starting your own business is a really difficult thing to do
– entrepreneurs need to be highly motivated.
“As a Vc firm, we often look for a personal investment
10 businEss lEssons for thE young EntrEprEnEur
NUR BREMMEN
Alex Fraser, Silicon cape chairperson and head of business development at venture capital firm, Invenfin, recently shared her business philosophies with an audience of young South African technology entrepreneurs at the cape Town Geek Girl Dinner.
9Empowerment Through Entrepreneurship
from the entrepreneur because we know the person will
be as serious about the success of the business as we
are.”
6. Be prepared
“The more research you do, the more confident you’ll
feel in an intimidating environment. Whether you’re a
woman in a male-dominated space or you have very
little experience in a particular industry; arming yourself
with information will only benefit you. Even just knowing
what you don’t know and what information you need to
gather is better than not being prepared at all.”
7. Default to ‘Yes’
“This is not about saying yes to every opportunity that
presents itself. As a Vc firm, we at Invenfin definitely
cannot say yes to every startup. Defaulting to ‘yes’ has
more to do with building relationships and networks. In
an industry built on forming partnerships and developing
new ventures, exchanging information and collaborative
relationships are critical to both personal growth and
business success.”
8. It isn’t instant pudding
“Building a business is not something that happens
overnight, it takes patience and a lot of hard work. What
makes it even more challenging is that there’s no recipe
you can follow.”
“This is also true for personal life choices. It is not a question
of having it all, as no man or woman can have it all, but
rather asking yourself what you would like to achieve and
going after that. This too can be challenging as there is
no recipe for life either.”
9. Broaden your horizons
You severely limit your business potential if you’re narrow-
minded and not aware of how it fits into the bigger-
picture.
“Many South African startups fail because they don’t
look at what their global competitors are doing.
Differentiating your business globally and ensuring
that your startup is internationally scalable is essential,
especially if you are looking for local Vc investments. The
South African market is relatively small and investors like
businesses which can scale to other countries.”
“For me, travelling has really broadened my outlook on
life – it’s important to know what’s happening in not only
your local market, but in Africa and globally.”
10. The importance of downtime
“Taking some time out to relax and do the things you
enjoy can be the best thing for your business. Downtime
allows you to clear your mind and deal with personal
matters so that you can focus on the task at hand when
you need to.”
Bremmen, N. 2013. 10 business lessons for the young
entrepreneur. Ventureburn [online]. 4 February 2013.
Available at: http://ventureburn.com/2013/02/10-
business-lessons-for-the-young-entrepreneur/ [accessed
7 February 2013].
Imagine being in a foreign country, sitting on a tour bus,
and having the possibility of borrowing a tablet computer
to get online and call home to tell your family about your
trip, or being able to charge your mobile phone while an
expert tour guide shows you around.
That is the kind of technological feat that won Shaheed
Ebrahim, owner of the Escape to the cape tour company,
the 2011/2012 Emerging Tourism Entrepreneur of the Year
award in South Africa.
last year, about 4.5 million tourists visited cape Town, so
there is fierce competition to attract customers from this
growing market.
FeBRUaRY 2o13
south africa’s hi-tEch tour opErator
BBc NEWS
Mr Ebrahim (second left) would like his company to go national
10
igniting potential
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“There are hundreds of tour operators out in cape Town
but the difference is that we’ve taken technology that’s
available and put it onto our tours, thereby enhancing
the tours,” he told the BBc’s series African Dream.
“What’s the technology I’m talking about? Wi-fi on a
moving vehicle, so somebody could be taking a photo,
say of Table Mountain, and as you drive into the next
spot, they could be Facebooking it and Tweeting it, and
emailing it to anybody,” he explained.
he added that his company also provides customised
telephony applications on board.
“With Skype they could call whichever country they
want to. We’ve got applications for the US clients so they
can call a landline or a mobile number in the US from the
complimentary iPads that we have on the vehicle.”
Escape to the cape has also thought about something
which can be a real nightmare for tourists in many parts
of the world - finding the right adaptors for their electric
equipment.
“Every seat virtually has got a facility to charge any
device - whether it’s a cell phone, whether it’s an iPod or
iPad, whatever device that they have, and in all about
12 gadgets could be charged simultaneously,” the
entrepreneur said.
Besides the communication technology, there is also a
fridge on board for the clients to use, and he offers them
complimentary water or a taste of some of the world-
famous Western cape wines.
From banking to tourism
Mr Ebrahim knows from experience what visitors to a
foreign country usually expect.
After completing a Bachelor of commerce degree
in marketing, he worked for a few years in the United
Kingdom and travelled widely.
In August 2009, he left his job as a private banker when
he was asked to relocate to India - where the bank he
worked for was based - and was planning to open a
petrol station.
But his wife, knowing that he enjoyed showing visiting
relatives and friends around cape Town, advised him
to do an accredited tour guiding course, in time for the
football World cup which took place in South Africa in
2010, so that he could be part of the experience.
“In october 2009, I completed the course and started
guiding part-time till the World cup came, where I was
kept quite busy,” the entrepreneur remembers.
“It went so well that I continued but always having in the
back of my mind that this was only a part-time thing.”
however, inspired by his dream of being his own boss, his
flair for entrepreneurship and his love for cape Town, he
decided to start his tour company.
he spent around $4,000 (£2,500) to register it, get a
website and pay for marketing collaterals.
Mr Ebrahim then took out around $32,000 out of his
mortgage to buy a 7-seater vehicle to which he added
the latest gadgets.
“My medium-term plan for this business is to grow my
own fleet so that I can have more vehicles around cape
Town and my long-term plan is to actually go national,
around South Africa. I have had many private-equity
funders wanting me to go national,” the entrepreneur
said.
Calculated risks
Prashant Bajaj, an Indian tourist who was spending his
honeymoon with his wife Risha in cape Town, told the
BBc’s Mohammed Allie that it was the availability of the
latest technology that attracted them to use Escape to
the cape.
“It was very unique and I think it was very innovative for
someone to do that. The technology is really advancing,
and I think it’s a very good idea for him to incorporate
technology into tourism. I think it’s the best idea ever
because it makes life easier for us,” he said.
“In a sense, all of us carry our own cameras but it’s easier
to just upload them down the iPad and, while going, we
can view it even more efficiently so it makes life easier,
and through the wi-fi you can easily transfer the data
immediately on your laptop.”
So what advice does Mr Ebrahim have for people who
would like to start their own business?
“Follow your instinct, do some research but most of all
enjoy what you are doing, then take a calculated risk,”
he said.
11Empowerment Through Entrepreneurship
FeBRUaRY 2o13
“Without having a passion or enjoying what you’re
doing, getting up every morning wanting to do it, you’re
not going to succeed and I’ve had personal experience
of this.
“Secondly, it’s the perseverance because many times
you get into an industry - whether it’s tourism or anything
else - you get inundated and you get sucked into the
old industry that’s going on, and all the negativity, so
you need to persevere in terms of bad times as well, and
thirdly, you have to be innovative, you have to come up
with something different.”
BBc. 2013. South Africa’s hi-tech tour operator. BBc News
Africa [online]. 31 January 2013. Available at: http://
www.bbc.co.uk/news/world-africa-21262196 [accessed
7 February 2013].
learn. Teach. Two words that startups and members of
tech hubs should breathe and live out if they are to
succeed. having travelled to different hubs in Kenya
and Africa through an ongoing study by ihub Research;
‘Understanding African IcT hubs model and impact to its
startups/members’ , I can testify the modus operandi of
the startups in the tech hubs is akin. They are operating
in a high-risk environment, with little capital, a dearth of
business skills e.g. marketing; but are great techies who
can code in their sleep. What you might not know is that
most of them have experiences that in my opinion are
the most powerful assets to endure irrespective to the
success or failure of their startups.
I have listened to the experiences of other entrepreneurs
in the African tech hubs and as well as sharing with
them my experiences as an entrepreneur. one thing
the startups should know is that the experiences they
have are rich in serving as a learning platform that
helps them suppress their existing challenges and thus
help them to mature faster. This inadvertently acts as an
encouragement by enabling them to be ready to tackle
future challenges.
It is time startups start utilising their experiences to teach
other startups/members in the space who then learn from
their solutions/experiences in order to accelerate their
own growth by working smarter. This can be achieved in
different ways:
Curiosity:
Members in the hubs are friends and are mostly in track
with what each other is working on, their experience
levels, investments accrued, etc. They know all that. But
ironically, they do not bother to know what tools of trade
their colleagues are using, how they go about working
out tax matters, conducting intellectual property, what
project management practice works best for them,
how they conduct market research and what is their
experience in all the aforementioned.
This curiosity should spur peer learning that can lead to
new and creative ways of managing your business as
an entrepreneur, develop new instruments and options
incase what you are using does not work out. Success
is not only about being the most famous startup and
having a great product but also about getting the best
tools, a skilled team and proper structures. Startups can
only achieve this by being curious enough of what other
startups in the hub are doing.
Networking:
It has been articulated before that events in the hubs e.g.
workshops and hackathons have acted as a platform
for forming friendships, knowledge sharing and creating
new networks and collaborations. I do value the events
that many tech hubs have been working hard to hold
in order to educate, promote and inform their members
but what worries me is that there is often no consequent
feedback to find out if the events are of value and
how that value can be measured by their members. I
have heard very few startups saying they have gotten
actionable networks from events held in their hubs e.g.
investors and business deals in their ventures.
however, maximizing peer-to-peer learning is the best
way to leverage the networks of one startup e.g. If
startup A is looking for a tax advisor and through such
events they get to know that startup B has had one who
helped them go about tax aspects while billing clients,
salaries to optimize their cash flows, etc; they can then
ask the experience of startup B with the said tax advisor
leverage on the same network.
Why african tEch EntrEprEnEurs nEEd to lEarn from Each othEr Vc4AFRIcA
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igniting potential
Empowerment Through Entrepreneurship
anglo’s ZimElE hElps smmEs
lUcIllE DAVIE
Mentoring:
When I was in high school, every time my Maths teacher
taught us vector equations, I chose not to understand
and had the mentality that vectors was a hard topic
and it did not help that I also disliked the teacher.
Ironically, when my desk mate and peer christine did a
few examples with me, and taught me, I found it so easy
and I ended up doing vector questions first thing in my
final exams and excelling at that!
We all to some extent loved group work while revising
for exams or doing projects as it made concepts easier
to understand by breaking the monotony of cramming
and initiating understanding, work was done more
creatively and in practice as compared to when doing it
individually or theoretically hearing it from the teacher.
Same applies to the startups in the hubs. They should
share their experiences with other startups in the hub
through a form of peer-to-peer mentoring. This is where
there is a personal development relationship where a
more experienced startup helps a less experienced or
less knowledgeable startup in a practical way. Through
utilizing peer mentorship in the startup ecosystem they
need not to wait forever for their hubs to get them sources
of advisors/mentors in order for them to surmount their
challenges.
By working on collaborative projects channeled by the
tech hubs, peer-to-peer mentoring can be injected by
letting them learn from each other and executing their
experiences on the projects. I believe that learning is
most powerful when it first starts with the members in
the space, treating each other as peers and learning
from each others experience as they keep evolving and
performing self-assessment on themselves.
My firm belief is that hubs should start empowering
individual startups, help them to solve their existing
challenges, and curate learning experiences then create
a ‘peer culture’ where once they build and develop
one startup, peer startups should be able to benefit
from the helped startup. This way, startups take peer-to-
peer learning to a whole new level with a surprisingly
low demand to money and time. The hubs management
should then act as facilitators to ensure there is training,
reviews and approval, recommendations, controls e.g.
templates, standards, guidelines and support in the peer-
to-peer learning culture.
Developing a peer-to-peer learning culture is important
and beneficial to the members/startups in the tech hubs
as long as it is also creating value as the benefits can
lead to increase in creativity, innovation and create a
true learning and growing hub. Startups should often ask
themselves, “how do I learn more and perform better
and help others to learn more and perform better?”
It can be said that the journey to a successful tech
community begins with the development of one startup
by its hub.
This article by hilda Moraa Morara originally appeared
on Vc4Africa, a Burn Media publishing partner.
Vc4Africa. 2013. Why African tech entrepreneurs need to
learn from each other. Ventureburn [online]. 11 January
2013. Available at: http://ventureburn.com/2013/01/
why-african-tech-entrepreneurs-need-to-learn-from-
each-other/ [accessed 7 February].
Mining giant Anglo American has not forgotten the little
guys – its enterprise development arm Zimele is lending
a hand to small and medium enterprises, helping them
to grow.
With a little help from Zimele, protective clothing
manufacturer Bustique 244 has seen its fortunes soar over
Mampho Selokoma, the enterprising owner of Bustique 244.(Image: bbqonline)
13Empowerment Through Entrepreneurship
FeBRUaRY 2o13
the past year or so.
“Previously, my company was faltering and not operating
profitably,” says owner Mampho Selokoma. “however,
acquiring Zimele’s assistance has significantly improved
my business model, enabled quicker turnarounds, and
set me on the road to profitability.”
Zimele has been running since 1989 and supports
sustainable small and medium enterprises, particularly in
rural and peri-urban mining communities.
over a four-year period it has provided R567-million
(US$64-million) in funding to black entrepreneurs. Some
1 085 companies have received support through 1
481 loans, collectively employed 19 575 people, and
achieved a collective annual turnover of R2.4-billion
($270-million).
Breaking into the market
Bustique 244 manufactures quality and tailor-made
protective clothing, primarily boiler and conti suits, used
in the mining and construction sectors. A conti suit is a
two-piece workman’s overall.
The word zimele comes from Zulu and xhosa and means
“to be independent” or “to stand on one’s own feet”.
“This support has also enhanced Bustique 244’s future
prospects, as doors have been opened recently for
potential orders with Anglo American’s supply chain,
including its Kumba Iron ore, Platinum and Thermal coal
businesses,” adds Selokoma.
Selokoma says she has been in business since 2006, after
extensively researching the protective clothing industry.
Spotting a gap, she started small but in the past year or
two she has been able to scale up with assistance from
Zimele and the Department of Trade and Industry (DTI).
“While Bustique 244 demonstrated great potential, the
company was faltering because its owner Mampho
Selokoma lacked the business experience, skills and
financial resources to break into the market and achieve
long term gains,” says Dr lia Vangelatos, acting head of
Zimele.
“Zimele identified that it could make a real difference
in the prosperity of Bustique 244, by offering financial
support, as well as mentorship in key facets of her
business.”
Bustique 244 satisfied Zimele’s key criteria: that it has the
capacity to grow substantially, and that it will create
employment within the sector.
“As such, Zimele is highly satisfied with what Bustique
244 has achieved thus far, as the company has not
only gone from strength to strength, but has made real
difference to the prosperity of the local community,”
adds Vangelatos.
Zimele provided a loan of R809 000 ($91 000) to Bustique
244 in 2011 – this enabled the company to take on an
order from construction company WBho, which built
three of the 2010 World cup stadiums and is involved in
the King Shaka Airport in Durban, the Gauteng Freeway
Improvement Project, and the ongoing Kusile Power
Station, among others.
The DTI has provided a R1-million loan ($112 000) to
Selokoma for machinery.
Secret of success
Selokoma was born in Soweto, and holds qualifications
from the Wits Graduate School of Public Development
Management, and the Graduate Institute of Management
Technology.
She has worked in the retail banking, corporate and
tourism sectors, in particular Pepsi cola International,
South African Breweries, Katekane Investments, and
South African Tourism, for the past 20 years.
her secret to success is that she has been scrupulously
careful about paying back the loans as soon as she
receives payment from the contractors.
“They know we are reliable, and like what we are doing,”
says Selokoma. She sees reliability as her competitive
advantage, together with the good quality of her
products, and delivering on time. This has given the
confidence to apply for more loans in the future.
Selokoma employs four permanent staff, and takes on
extra workers on a contract basis. She operates in the
Northern cape and Gauteng, and recently offered
80 workers temporary contracts in the cape. She is
confident that as the company grows she will take on
more permanent staff.
14
igniting potential
Empowerment Through Entrepreneurship
ngo crEatEs 70 000 jobs
IAFRIcA.coM
“We are growing in leaps and bounds. We can market
freely, knowing that the future is good,” she enthuses.
Selokoma was invited to speak at the 2012 Enterprise
Development conference, held in Midrand in November.
She saw it as an opportunity to “provide a considerable
boost to her career aspirations, but inspire others to
match her business achievements”, according to the
BBQ website.
Four funds for businesses
Zimele has four funds that focus on emerging black
businesses. The Supply chain Fund focuses on
procurement and business development opportunities
for black-owned and managed SMEs within Anglo
American’s supply chain.
The Khula Mining Fund manages mining-related
investments as a joint initiative with Khula Enterprise
Finance limited, a government entity that promotes SME
development.
The community Fund supports entrepreneurs and small
businesses in the communities in which Anglo operates,
by means of loan finance and hands-on guidance and
support from a network of small business hubs.
The Green Fund targets investment opportunities
that specifically focus on environmental risks and
improving the long-term environmental welfare of local
communities. Areas of particular focus include reducing
carbon emissions, energy and water consumption, and
improving waste and emissions management, as a
contribution to sustainable development.
Read more: http://www.mediaclubsouthafrica.com/
index.php?option=com_content&view=article&id=3241
:anglo-zimele&catid=45:economynews&Itemid=114#ixzz
2KDW9fblV
Davie, l. 2013. Anglo’s Zimele helps SMMEs.
MediaclubSouthAfrica.com [online]. 4 February 2013.
Available at: http://www.mediaclubsouthafrica.com/
index.php?option=com_content&view=article&id=32
41:anglo-zimele&catid=45:economynews&Itemid=114
[accessed 7 February 2013].
Not many companies in South Africa, and even fewer
NGos, can lay claim to a contribution of more than 70
000 jobs created and over R5.6-billion contributed to the
country’s GDP. The Tourism Enterprise Partnership, widely
known as TEP, is possibly the only NGo that can not only
make this claim, but have had it independently audited
and verified by SizweNtsalubaGobodo.
chief Executive of TEP Dr Salifou Siddo stated emphatically:
“A key pillar for job creation is the development of
entrepreneurship. TEP supports this by providing SMMEs with
access to information, skills, markets and finance. Strong
partnerships are required for expanded growth and TEP’s
Enterprise Development Portfolio (EDP) offers a proven and
sustainable solution that allows any interested organisation
to invest their ED funds with TEP. The investing partner will
earn upfront B-BBEE points for Enterprise Development
and with business development offices situated in every
province; TEP has the infrastructure to expand investment
contributions to the most remote areas in SA”.
Although TEP is in part funded by National Department of
Tourism, it still has to source a major part of its funding from
the private sector.
Peter-John Mitrovich, General Manager of Grosvenor
Tours, said: “As an organisation that showcases the
beauty of the Southern Africa region, it was vital to our
integrity as a Southern African Tour operator to give
back to the communities, the environment, the people
and the places that make this a top holiday destination.
We take the utmost pride in combining the uplifting and
inspiring elements of the tourism industry with a cultural
experience that not only informs visitors about the reality
of South African lifestyle, but also allows them to interact in
a beneficial and lasting way. With this in mind, we wanted
to have a national impact on the tourism industry and thus
there was only one way to go and that was to support the
Tourism Enterprise Partnership with a sizeable contribution.
TEP uses our investment as part of its resource pot for rolling
out enterprise development projects and funding for small
tourism businesses.”
15Empowerment Through Entrepreneurship
doors of hopE opEn for mackEnZiE youths
GAThSEMANE MWIZABI
FeBRUaRY 2o13
Although TEP is not a funding agency; it has a Business
Development Fund (BDF), which can be used on a cost-
sharing basis to contribute towards the cost of business
services for registered TEP members. Access to business
services such as professional and operational assistance,
marketing, training and quality assurance is indispensable
for the growth and sustainability of any business, especially
for small tourism businesses. however, many small tourism
businesses do not have the adequate resources to buy
these services.
The fund builds the capacity of small tourism businesses
and assists them to respond more effectively to commercial
opportunities. It serves as a catalyst for their participation
in the formal tourism value chain and, ultimately, their
contribution to industry growth and job creation.
For over a decade TEP has successfully delivered on
its enterprise development mandate and consistently
exceeds its targets. TEP has established a firm reputation
for operating with integrity and according to sound
governance principles.
As a Section 21 (non-profit) organisation, TEP is geared
to keep its administration and management costs to a
minimum with the majority of the funds benefiting SMMEs
directly.
TEP is led by a board of prominent business leaders as well
as a dynamic management team (situated in Rosebank,
Johannesburg) that delivers innovative leadership in
tourism development projects. TEP’s EDP team is at the
forefront of enterprise development in South Africa and
is redefining small business development through this
initiative (www.tep.co.za).
In terms of code 600 of the B-BBEE codes of Good Practice,
companies must allocate three percent of net profit after
tax to enterprise development. Many companies grapple
with enterprise development as it is not part of their core
business, and only about 30 percent of South African
listed companies are currently compliant. TEP’s EDP serves
as a conduit for organisations to earn points on their
B-BBEE scorecards whilst contributing to job creation and
transformation in South Africa
SA — the Good News
IAfrica.com. 2013. NGo creates 70,000 jobs. iAfrica.com
[online]. 7 February 2013. Available at: http://business.
iafrica.com/features/841064.html?p=1 [accessed 7
February 2013].
WhEN Isaac Kasangula 19, was called for a business
meeting, it was a dream come true. It was a great
opportunity to learn something no one would ever take
away from him.
having been brought up in Ndola’s Mackenzie Township,
life has not been that easy for the Grade 12 school leaver
at Masala high School.
All his life, he had been looking out to do a business of
some of kind, a business to help in the buying of books and
help in his general livelihood.
his parents are charcoal burners and often times, money
to put food on the table and clothes for the back is hard
to come by.
Being a first born in a family of four, he was always bothered
by the poverty levels of his family.
he was tempted to think, life was unkind to him and the
family.
his wishes and dreams for a better life than now are
evident in his works of fine art. hanging on the wall, are
pictures he has drawn of the likes of anti-apartheid hero
and world statesman Nelson Mandela and an first black
United States of America (USA) president Barack obama.
The idea of having capital and how to go about basic
business principles and values was his major need.
however, he is in high spirits now.
he is part of the 12 privileged Mackenzie youths who
were selected by Doors of hope, a non-governmental
organisation operating in the community, to attend a
business seminar organised by the International labour
organisation (Ilo).
last year, The Zambian Breweries (ZB) Plc, a subsidiary
of SABMiller Plc and Ilo signed a KR60, 000 Youth
Entrepreneurship Partnership which saw copperbelt
16
igniting potential
Empowerment Through Entrepreneurship
youths empowered with start-up capital and business
management skills.
This initiative has since seen youths from Mackenzie
Township of Ndola benefiting from the gesture.
Under this partnership, Zambian Breweries has provided
young entrepreneurs with coca-cola Mobile trolleys and
soft drinks as start-up capital for their new enterprises.
Zambian Breweries Plc, which has been involved in
enterprise and entrepreneurship development through its
well-developed and coordinated value chain, is excited
by the prospect of giving back to the communities, with a
particular focus on young people.
Under the collaboration, the Ilo is providing technical
support to three youth organisations on the copperbelt
Province which include Roan Youths in luanshya,
Mackenzie Doors of hope youth in Ndola and Yew Tree
Youth at Mindolo Ecumenical Foundation in Kitwe.
The technical support includes training in entrepreneurship
using the Ilo Gender and Entrepreneurship training
manual, while Zambian Breweries will provide the start-up
capital in the form of trading facilities and soft drinks.
In line with its ‘10 Sustainable Development Priorities’,
Zambian Breweries’ involvement with the Ilo is guided by
the sixth priority which looks into creating partnerships and
encouraging enterprise development in the value chain
and also in creating shared value.
After attending the business programmes for weeks, the
youths also received business manuals and certificates.
The business manuals contain business fundamentals for
youths to refer to from time to time.
Zambian Breweries Plc managing director, Anele Malumo,
said: “We are definitely creating shared value and, through
our value chain, we are providing real and tangible
business opportunities for young local entrepreneurs that
will benefit both the corporation and the stakeholders
involved.
According to the corporate affairs office, the programme
would endeavour to discourage long-term dependence,
especially in the case of small entrepreneurs, as the
“Shared Value” principle aims to create an interdependent
relationship with mutual benefits to all.”
In phase one of the project, 30 youths from the three youth
organisations have been identified and trained. The youth
have received coca-cola mobile trolleys and two cases
of soft drinks from Zambian Breweries as start-up capital.
Zambian Breweries has further trained the beneficiaries
in product handling and will provide technical support
in trolley maintenance, while phase two would extend to
other towns in the copperbelt Province.
“We are grateful for the opportunity. our lives will never be
the same,” said Monica Musenge, 18.
Moninca, a Grade 10 pupil at Dzikomo wants to be a
nurse and the business is helping her to buy her education
necessities. She would save some of her money to secure
her education.
She is worried with the state of youths in Mackenzie, saying
a lot of them were engaged in unproductive ventures like
alcohol abuse, early marriages and prostitution.
“A lot of us were called for the meeting but only a few
were interested because they wanted fast money. Now
they envy us, when they see us with our trolleys,” she said.
As for the business, the youth were first given two crates
of drinks each. After selling off the drinks, they have now
bought their own drinks. From their profits, they remove a
small percentage which they then put in a small fund they
have created.
The money in the fund is meant for emergencies, and the
rest of the money is theirs to grow their businesses and take
care of their needs.
Each youth has a strategic selling point around the city.
Doors of hope executive director Sven Anderson is
impressed with the zeal expressed by the youth in running
their own businesses.
“There is much hunger in them to succeed. ours is to give
them guidance so that their future is guaranteed,” he
said.
Ultimately, Zambian Breweries (ZB) Plc and Ilo partnership
should be commended.
It remains for other organisations to emulate the gesture.
17Empowerment Through Entrepreneurship
FeBRUaRY 2o13
Mwizabi, G. 2013. Doors of hope open for Mackenzie youths.
Times of Zambia [online]. 4 February 2013. Available at:
http://www.times.co.zm/?p=29720 [accessed 7 February
2013].
Editor’s Note: The following is a transcribed account of
an interview of Sean Wainer, country manager at cloud
computing technology solutions provider citrix, conducted
by Summit TV.
SUMMIT TV: A recent study suggests that a small
improvement in labour mobility could potentially have
huge benefits. Sean, can you tell us about your study and
how we can save our economy?
SEAN WAINER: citrix is an organisation that allows mobility.
We supply business with technology that allows users to
work from anywhere. We wanted to see if we could extend
the success we’ve had into the greater economy and
down to individuals. We had Dr Adrian Saville commission
a study for us that came out with quite surprising results.
STV: When you talk about labour mobility — is that
physical?
SW: In the context of the study, mobility refers to the
movement of knowledge, information and people through
various communication and transport networks.
STV: That’s physical but also etheric mobility.
SW: correct. The study breaks it down into microeconomic
versus macroeconomic mobility — macroeconomic
mobility being the movement of goods and services at a
country level, microeconomic being around the movement
of people and knowledge transfer at an individual level,
so that’s people versus country level.
STV: Your study has come out with a surprising result — that
a small increase in mobility can increase GDP per capita
by 40% which sounds pie in the sky.
SW: It does. The interesting thing is that the study was
based very much on solid fact. Adrian Saville is a doctor
of economics and the research was across 140 countries.
What this is saying is a small incremental increase in
mobility — being the movement of people, information
and knowledge — is not just about having a mobile phone,
it’s not just about being able to work from anywhere. It’s
about mobility as a concept at a country level. Studies
have shown huge successes in Malaysia and costa Rica.
South Africa rated average in the study, which is okay
because that means there is room for improvement,
which can translate to GDP growth and a decrease in
unemployment.
STV: how exactly would this increase GDP to get the 40%
benefit?
SW: It’s a graphical representation based on historic data.
There’s a myriad of examples but imagine a rural farm
worker that’s only been in the small community space
now having larger communities to sell his goods to. That’s
a great example — he is producing quality but limited to
a small environment. The scope for growth is limited. If we
could eliminate that, it would allow him to sell more and
increase his income and that would increase per capita
GDP. Another great example of this is we know that mobility
grows entrepreneurs and a big part of the study is based
on that as well, where entrepreneurship rate versus the size
of our population is relatively low.
STV: Is there a causal relationship between the number of
small businesses and the degree of mobility?
SW: Absolutely. The study very clearly shows that this
information is available and public, that mobility has a
direct impact on growing new entrepreneurs and giving
people the ability to start new businesses. The fact is
that governments do not create jobs, they put the tools
in place. Jobs are created by entrepreneurs. The SMME
space today is the largest opportunity for jobs.
STV: how does South Africa compare to other countries in
your study?
SW: From a mobility perspective average, we have an
interesting scatter graph that shows 140 countries.
STV: In terms of the number of small businesses — are we
behind?
study shoWs mobility can incrEasE pEr capita groWth
TRANScRIPTS SERVIcE
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SW: Yes, we are behind if we look at the likes of Malaysia.
It’s about the ease of doing business.
STV: That’s sad because small businesses usually create
more jobs than big business and we are behind the
curve.
SW: correct.
STV: In the digital age, information is power and mobility
enables that but there is downside to this because you
never get time off.
SW: No, you don’t but I want to flip that on its head and
say that being mobile changes that. We work in a new
era where presenteeism does not equate to productivity
— because you’re at a desk that doesn’t mean you are
working. That’s where the entrepreneurial spirit is coming in.
Who do we want to build up in this country? The younger
generation.
STV: can you refute that this increases stress levels? You
could be relaxing in bed but you think “let me look at my
emails quickly.” Then you work for an hour.
SW: I’d refute that because there is a huge difference
between waking up and going to work at 8am and
working through and leaving the office at 5pm without any
flexibility in that. Imagine the change where we are now
going mobile and people are absorbing this. You could
be working from anywhere, on any device, at any time
— perhaps at a soccer game or a school play with your
child. I think it’s the exact opposite. certainly, you have
to find a personal and work life balance but the younger
generation are coming in and saying “I can work on a
Sunday afternoon so why can’t I go have coffee with a
friend on a Thursday morning?”
STV: how do employers feel about that?
SW: That’s interesting because employers are having
to adapt. We have a South African mentality that’s
patriarchal and says ‘you’d best be in the office so I can
watch you doing work.’ What we are seeing is a groundswell
or ‘employment spring,’ where new people are coming
in saying “this doesn’t work for me — don’t give me your
device that you’ve locked down and I don’t know” and
“don’t make me work in an office that doesn’t work for
me.” Employers are having to adapt, otherwise they are
not going to attract the best talent.
STV: This has transferred the cost of telecommunications
back to the employee.
SW: To some degree. There’s very few people I know that
wouldn’t want to get an allowance from the organisation
to go get a device of their choice.
STV: I know very few companies that would give an
allowance to pay for a cellphone or data package.
SW: That’s changing dramatically. What we are seeing is
people are working out that buying a laptop for a user
and giving it to them and managing and securing and
insuring it is an enormous cost. It’s cheaper to give the
employee an allowance.
STV: Is there going to be a rising trend where companies
take away landlines and everyone relies on their
cellphones?
SW: I believe so. The whole drive towards being more mobile
– whether that’s being able to move around the country
easily, or moving goods or access work from wherever I
am, with broadband costs coming down dramatically
and access to infrastructure — is becoming easier even
in rural areas. A big part of the study is around education,
which is something I’m really passionate about. Educating
people is not about going to school, it’s about giving
people access to information. There’s Khan Institute that’s
made courses and material available to people. how do
you get that to people? one way of doing that is through
mobility. We do not have an education crisis in this country
we have a mobility crisis.
Transcripts service. 2013. Study shows mobility can
increase per capita growth. Business Day [online]. 6
February 2013. Available at: http://www.bdlive.co.za/
business/technology/2013/02/06/study-shows-mobility-
can-increase-per-capita-growth [accessed 8 February
2013].
INTERVIEW
Mr. Osagie Ogunbor, Corporate Affairs Manager of
nigEria: WE nEEd morE youth EntrEprEnEurs in nigEria – intEl
PRINcEWIll EKWUJURU
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Intel Corporation, West Africa in this interview reveals
why the firm is training fresh graduates on technology
and entrepreneurship to enable them set up businesses
rather than seek for jobs as part of its Corporate Social
Responsibility (CSR).
Why is Intel engaging in this training venture?
As you can see from today’s training, this is a bit different
from what Intel is typically known for. Before now, Intel was
engaged with training of teachers. Indeed in the last five
years, we have trained over a hundred thousand teachers
in Nigeria and over Ten million globally. So that used to
be our focus, but now, we are beginning to see that the
reality on ground is that there are other areas that need
attention.
In Nigeria, you know there is a huge problem of
unemployment, there is a huge problem of social
restiveness. We believe that the root cause of some of these
things is the fact that youths are not properly equipped
with the right skills especially in the use of technology in
the 21st century workplace and business environment.
We therefore thought it was a worthwhile decision to use
our platform to provide some sort of Technology and
Entrepreneurial Training for these youths who are just
coming out of college and that’s how we came about
the training for youth corps members. This is a pilot scheme
starting in lagos and over the months and years it is going
to become a National programme.
From what you have just said, there appears to be recognition of the critical role in the case of technology, how important is entrepreneurship in this phase? What do you think the training will bring to the nation particularly?
Well typically, entrepreneurship is everything to them at
this moment. They are coming out of Universities and they
are at a critical point in life where they have to take life
changing decisions; Are they going to look for jobs, Are
they going to set up their own businesses, What are they
going to do?
Now we know that hundreds of thousands of graduates
are coming out every year. We also know that we have
very few vacancies and job opportunities for them. What
that means therefore is that year in, year out, you are
having hundreds of thousands of graduates who have
nothing to do.
So we are saying to them that rather than have a fixation
on looking for jobs, there is an option to actually set up
their own business, to be an employer of labour rather than
being a figure looking for work. So that’s the first option.
The second option is that even when you decide to work
in a formal environment, you need to be equipped to be
able to survive in that formal environment.
In those days, when you start a job, you are given pen and
paper and files, today, when you start a new job, you are
given a computer either a desktop or a laptop. Today’s
graduates have to be technologically equipped to be
able to function in that kind of workspace.
So it means that even if you want to work, if you don’t
have the kind of technological training which we are
giving now, you cannot fit in. If you were taught in your
University using analogue method, sitting down and taking
notes, you come to the office and you don’t know how to
boot a computer, you will not be employable and that’s a
critical problem.
We’ve got graduates who are not employable. So what
we are doing is equipping them to be one, employable
and two, Should they not want to work, have the necessary
skills to be able to set up businesses and run it.
We have got loads of them who have Uncles and relatives
who can actually give them seed capital to start-up
businesses. But again, do they have the basic know-how to
run these businesses profitably so that they themselves are
able to take care of themselves and even employ more
people, the economy gets better for it, more people are
employed, tax income increases for government and the
economy is better for it.
Sir, you said at the beginning that the training is to come in phases, my question is will there be an end like a specific year when all these technology and entrepreneurship training will come to a halt? What is the target? In terms of number, how many students are we looking at?
We are just starting, so we can’t be talking of stopping.
our focus is not really the numbers. our focus is on the
impact. Now we’ve started in lagos, we are going to go
from lagos to the entire South West and then to the South
East, and then we scale up.
What we are doing is to have a pool of master trainers,
Senior Master Trainers who have been trained across the
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country. So, as we scale to those parts of the country, those
master trainers will conduct the training in their own locality.
So ultimately, our target is to have an Intel technology &
Entrepreneurship Trainer, in every State of the Federation
where there is National Youth Service.
Will this training be on specific areas or different areas?
Basically, the curriculum for entrepreneurship is basic.
It’s not an MBA as such what it does is to teach you the
rudiments of setting up a business. What you need to
do before setting up a business, what are the empirical
meters that you must look into, what informs the choice of
business you want to do?
You know people just come out of school and say ‘well I think that baking is something I want to go into and it’s my passion and I must go into it. But in their locality, it might not be the most profitable business. So there are empirical indices to determine that. What is the competition for that business in your neighbourhood?
What skill do you have, what is your unique selling point,
what must you put in place so that you can become
competitive? These are the basic skills we are teaching
people and it’s not like they probably don’t know, but it’s
just that we are bringing it to their consciousness now.
And when you bring it to their consciousness, they begin to
realize it. We have entered into partnerships with relevant
NGo’s to enter these corps members into a business
plan competition so when they are through with it, the
final product of this training is that each person gets a
chance to produce a business plan of their own business.
They submit the business plan into the contest and 1,200
people stand a chance of up to winning 10m naira each,
courtesy of the Federal Government.
So first of all, you are being trained in Technology and
Entrepreneurship, you then have a chance to even get
the capital to start the business.
There should be some bottlenecks in all these, what are the challenges looking at entrepreneurship in Nigeria, what do these entrepreneurs face?
The Basic challenge is the know-how of running a business.
The general misconception is that capital is what the
problem is. A lot of people will tell you they want to set up
a business but they don’t have the capital. I can say to
you that the problem is not even that of capital because
we’ve got so many people who set up businesses when
they had capital to set it up, ten years down the line, the
business has gone down the drain.
**So I think the major challenge is that all kinds of people
just become entrepreneurs over night without any form
of training. Now I recognize that there are people who
have entrepreneurial skills in-born in them, but again,
entrepreneurs can be made and that’s what we want to
encourage.
Another challenge is probably also the willingness of our
youth corps members to take advantage of this program,
because we have a bunch of youths who are sometimes
unwilling to pay the price of success and we hope that
over time, when they begin to see the progress of these
ones that we have taken up, and that results are being
achieved, more people will begin to take part in it. But I must
say that the response from those that are being trained
now, is very positive because, they are very happy.
What has Intel put in place to follow-up on these young entrepreneurs?
Follow-up is actually an integral part of the way the
program was designed. **We have a process in place
to have a database of all those that we train, so we will
monitor them and what stage they are in their business,
should they require further training, we will be there to
hook them up with the right partners who will be able to
add value at such stages.
So we don’t pretend to have the ability to mid-wife
the entire process till when they become successful
entrepreneurs, but we have the capacity to, at every
juncture facilitate their meeting partners that may be
of help in that regard. We are in partnership with the
henshaw Foundation, which will assist the trainees enter
into the YoUWIN business plan competition, where they
stand a chance to get a government grant to set up their
businesses if they come up with impressive business plans.
For Technology and Entrepreneurship, what is the level playing ground in your opinion and as an expert in this field?
Technology is a means to an end. Marketing dynamics
today, for instance have become such that digital
marketing, social media marketing have become
imperatives for you to reach target audiences for your
business. 15-20 years ago, if you wanted to advertise, the
21Empowerment Through Entrepreneurship
FeBRUaRY 2o13
word advertising was synonymous with radio, TV and press,
today, online is taking over. If you are a young entrepreneur
and you do not understand computer technology to
the extent that you can use it as a tool to enhance your
business, you are behind.
That is where technology comes in. If you cannot build
a website, where anybody in the world can access
your business, buy from you, sell to you online, without
geographical barriers coming into play, you are way
behind. If you do not have the skills to send an email,
basic simple things like this, send an email, do a power-
point presentation of what your business can offer to a
prospective customer, investors, then you are behind.
So these are the technological skills that we are giving
these people who are coming out of school because we
realize that not all universities in Nigeria can equip them
adequately with these skills. So chances are that you will
be a more efficient entrepreneur when you have these
skills.
At the end of this year, what benefit will this add to the economy?
A: Well, thinking at the end of the year is a bit short termist
and very close, but I will say that ultimately, let’s look at a
three to five year time span. We can begin to say people
who are being trained in this program are beginning to
actually set up businesses of their own we can begin to
track those who decide to work and have become better
employees, because I need you to understand that it’s
not all about entrepreneurs in the strict sense of setting up
businesses.
It’s all about equipping youths to decide what you want
to do. Whatever you decide to do, you are better off
for it. If you decide to go into business, you are a better
entrepreneur if you decide to work in an office place you
are able to use the tools that technology gives you to
become a more efficient employee in your workplace. So
over the next 3-5 years, we will have that pool of young
men who are excelling as employees. That’s where we
want to go.
Ekwujuru, P. 2013. Nigeria: We Need More Youth
Entrepreneurs in Nigeria – INTEl. All Africa [online]. 10
February 2013. Available at: http://allafrica.com/
stories/201302110392.html?viewall=1 [accessed 11
February 2013].
JohANNESBURG - Entrepreneurship is seen the the answer
to growing unemployment in South Africa. The latest South
Africa Survey published by the South African Institute
of Race Relations says a total of 4.5 million people are
classified as officially unemployed, “because they are
available and would like to work and have been actively
looking for a job.”
The research expounds that a quarter of unemployed
people have been looking for work for more than five
years, and a further 40% have been out of work for at least
a year.
The International labour organisation defines the long-
term unemployed as those who have been looking for
work for more than a year. In South Africa, there are 3
million such people (or 68% of the unemployed). however,
the Institute has calculated that nearly half of these
people have been unemployed for more than five years,
equating to 26% of all unemployed people.
lucy holborn, research manager at the Institute, said, ‘We
have very high long-term unemployment levels according
to the international definition – the average among
organisation for Economic cooperation and Development
(oEcD) countries is 32% of total unemployment compared
to 68% in South Africa. on top of this, very long-term
unemployment of over five years accounts for a significant
number of our unemployed. The chances of finding work
after being out of the workplace for more than five years
(or perhaps having never worked) are likely to be slim in a
labour market saturated with low- and un-skilled workers
but in need of experienced and skilled labour.’
In addition, these figures do not take into account those
who would like to work but have given up actively looking
for work, perhaps because they have given up hope of
finding a job. There are an additional 3.2 million people who
are unemployed according to the expanded definition,
which includes people not actively looking for work.
‘Many such people are likely to add to the number of
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long-term unemployed, as they are more likely to have lost
hope of finding a job after having been unemployed for a
long period of time,’ said holborn.
‘All of this suggests that there may be large numbers of
people who are simply unemployable. Therefore, any
solution to our unemployment problem will need to address
educational and skills inadequacies to provide a better
match between what the labour market requires and
the pool of people supplying it. In the meantime, relaxing
labour regulation in order to reduce the cost and risk of
hiring people could help to dent levels of unemployment
that have been persistently high for over ten years.’
These statistics question the success of the government
driven empowerment programmes aimed at alleviating
the situation and emancipating youths. While politicians
are taking advantage of these statistics and trying to win
votes by marketing their job creation programmes, it is
clear that in the past five years nothing has been done to
address the situation.
It is likely that things will remain unresolved and in a
couple of years the figures might double or even treble
as universities, technical colleges and other training
institutions produce graduates who cannot be absorbed
by the system
Nembaware, S. 2013. SA unemployment rate on the
rise, entrepreneurship encouraged. Entrepreneurship
Africa [blog]. 1 February 2013. Available at: http://
entrepreneurshipafrica.com/business-resources/experts/
s.a-unemployment-rate-on-the-rise-entrepreneurship-
encouraged.html [accessed 7 February 2013].