the hope factory | annual report 2013

YEAR END REPORT 2013

13 Introduction

4 The importance of Mentorship

6 Johannesburg Feedback

- Enterprise Development Programme

- Workshops and Capital Investment

10 Port Elizabeth Feedback

- Socio-Economic Development Programme

- Enterprise Development Business Development

Programme

- Enterprise Development Programme

- The Hope Hub

- Workshops and Capital Investment

ENTREPRENEUR SUCCESS STORIES

JOHANNESBURG

16 Potso Mathekga

18 Fanyana Msimango

20 Johanna Mashigo and Tshepo Mashigo

22 Zuki Bakana and Bheki Boyce

PORT ELIZABETH

24 Siya Tsewu

26 Bongiwe Kutase

28 Nomvula Nteleza

30 Thembakazi Hlokoma

32 Stakeholder Appreciation Day 2013

36 Our Success in Numbers

38 Thank you to our Stakeholders

40 Earning your Points

2INTRODUCTION

3Introduction

2013 has been a wonderful year of both exploration and consolidation for The Hope Factory. There has been exploration into new areas such as Supplier Development, and consolida-tion of one of the most important strategies for the development and growth of enterprises; that of our one-on-one mentorship offering. Research has shown that 80% of entrepreneurs who have mentors are able to start and build sustainable businesses, whereas less than half of the entrepreneurs with no mentor manage to do the same. The Hope Factory strongly believes that mentorship works and our solid mentor-ship philosophy is pivotal to growing the individual entrepreneur in order to grow their business (pgs 4 -5). Throughout this years report you will see quotes both from our mentors and the entrepreneurs them-selves, on the value of good mentorship.

Our Johannesburg Enterprise Development programme has now run for a full year, and we share with you some key lessons we have learnt and successes achieved to date (pgs 6-9). There has also been excellent consolidation and results with the Socio-Economic Development and Enterprise Development Programmes in Port Elizabeth, and you can find feedback on these on pgs 10-14. A number of success stories of entrepreneurs from both cities are featured in this report (pgs 16-31). From these, you will see that the investment you have made with The

Hope Factory is enabling us to provide a supportive environment for entrepreneurship that is making a difference in the growth and development of Black-owned businesses in South Africa. For a brief overall look at The Hope Factorys successes in numbers go to pgs 36-37.

This year The Hope Factory was very privileged to have Clem Sunter, an acclaimed author, speaker and future scenarios expert speak at our Stakeholder Appreciation event. For those who may have missed this, you will find a brief synopsis and pictures of the day on pgs 32-35.

As you will all be aware, the revised B-BBEE codes were finally gazetted by the Department of Trade and Industry in October this year. There are some notable changes in the new codes with regards specifically to the area of Enterprise Development. Out of the 105 points available on the new BEE Scorecard, 40 of these will now fall under the Enterprise and Supplier Development category, making it the single most important element of the new codes.

Under the previous codes, companies were award-ed 15 points for making contributions to the value of 3% of their Net Profit after Tax (NPAT) towards Enterprise development. Under the revised codes, companies will now earn 5 points for making contri-butions to the value of 1% of NPAT towards Enter-prise Development and will earn 10 points for making contributions to the value of 2% of NPAT towards Supplier Development. There are also bonus points available to companies that start to procure from companies that they previously supported through Enterprise Development and for creating jobs at the companies they support through Enterprise and Supplier Development.

While companies will still definitely score points for supporting small Black-owned enterprises through Enterprise Development, under these new codes there is now a greater incentive to support the businesses that your company procures from. The intention of these changes is to encourage corporate South Africa to take a longer term view of the Enterprises they sup-port and develop. Let us help you manage this change.

To add to our current Enterprise Development (ED) and Socio-Economic Development (SED) pro-grammes, we have now added a Supplier Develop-ment programme in line with these new codes. We are very well positioned to help you identify and develop Black-owned Supplier businesses. Our holis-tic mentorship programme for Black entrepreneurs and business owners together with business analysis and a host of other service offerings, is designed to maximize their business growth and sustainability, as well as your return on investment.

It should be noted that there is a one year transitional period (i.e. October 2013 to October 2014) before the new codes will take effect, which we feel is a suitable length of time in which to plan and start to incorporate Supplier Development into your existing company structures and B-BBEE strategy. But please contact us as soon as possible for any assistance you may require with Supplier Development.

Lastly, we would like to inform you that The Hope Factory has been selected for one of the Impumelelo Social Innovation Awards in 2013. We are very proud of the recognition of the special work that we are engaged with daily, made possible only through your investments and partnership.

The Hope Factory would like to take this opportunity to thank you, our funders and various stakeholders for helping us to bring about positive social and economic change in our country through the men-torship of entrepreneurs and growth of Black-owned enterprises and suppliers. This endeavor would not be possible without your support.

ANNIE MCWALTERCEO OF THE HOPE FACTORY

4THOUGHT LEADERSHIP

WHY MENTORSHIP IS IMPORTANT IN ASSISTING ENTREPRENEURSBY ANNIE MCWALTER, CEO OF THE HOPE FACTORY

Every great business icon has had their mentors. For Steve Jobs, it was mining magnate Robert Friedland, who helped him transform from an introspective, shy individual into a great business leader. Reid Hoffman, CEO and found-er of LinkedIn, sought guidance from Mark Zuckerberg, founder of Facebook. LinkedIn was started in 2003 as a networking site for professionals, and since listing on the New York Stock Exchange in 2011, it has become the most successful Initial Public Offering of modern times. If these business role models benefited from the input of their mentors, then surely there is a lesson here for all entrepreneurs. At The Hope Factory our main thrust is the growth and development of entrepreneurs for a sustainable future, and mentorship is the critical process through which we achieve this goal. Since bringing on full-time salaried mentors for The Hope Factory programmes, we have seen a marked improvement in the personal growth and development of our entrepreneurs and in their business growth. An example of this is Potso Mathekga, owner of Maggies Original Mageu, who after just eight months of men-torship showed 51% growth in turnover and a 37% increase in profit! Another great example is Johanna Mashigo and her son Tshepo of Full Menu Catering, who at the start of our programme were operating at a 73% loss, and are now showing a 43% profit. Although all entrepreneurs will benefit from a mentoring relationship, not all are ready to be mentored. Mentoring requires a level of personal maturity of the entrepreneur which is not necessarily linked to age, but very necessary for an effective mentorship relationship. At The Hope Factory we carefully select our full-time mentors based on their prior experi-ence in running their own business or experi-ence in servicing small businesses, such as with small business banking. Of equal importance to us is their complete alignment with our organisational values, along with their busi-

ness knowledge and ability to apply it. Good business mentors should definitely have a level of wisdom and experience in the various aspects associated with starting and growing a business. We also take care in assigning the right mentor to each entrepreneur on the programme as we need to ensure that we have the right fit for the individual. The relationship must be one of em-powerment so that when the mentor leaves, the mentee is able to implement what was discussed and agreed upon and they need to be able to do this on their own, with confidence. Mentors fill a vital role in the lives of their men-tees. Their ability to transfer skills, knowledge and wisdom with the aim of empowering their mentee without creating co-dependency is key to successful outcomes. The mentorship philosophy used at The Hope Factory is based on the TRIM principal - Teach, Recognise, Inform and Motivate. This ensures that the entrepreneur remains front and centre in the relationship, and that the job of the

mentor is to primarily equip and encourage the entrepreneur. It does not entail the mentor doing the job for them, or telling them what to do. This is critical in achieving the sustained impact that The Hope Factory aims to have on its entrepreneurs beyond their participation on the programme. Mentoring really works! This year, The Hope Factory has helped to set up and register 57 new businesses and we have mentored 187 small businesses in total, based in Johannesburg and Port Elizabeth. Research has shown that 80% of entrepreneurs who have mentors working alongside of them survive long term, versus only 45% who dont have a mentor. If pro-grammes such as these were replicated across the country, we will see not only the survival, but the growth of many more small businesses, which we believe to be a major source of job creation in any economy.

Business mentor Anthony Matroos with entrepreneur Tlaleng Matsabisa

5READ A FEW COMMENTS FROM SOME OF OUR ENTREPRENEURS I am filled with great appreciation and gratitude when I think of The Hope Factorys contribu-tion to my business so far.

Firstly, the mentorship has been invaluable. I have changed my thinking from survival to

positioning for success. I have a clear business and personal vision that energizes me, fuels my passion, while it informs my value propo-sition and how I conduct business. Secondly, I closed two new deals, with very minimal capital investment - a substantial increase in revenue in a short space of time. Seven-digit revenues will soon follow and dont seem as elusive as before. Thirdly, I have been able to pursue my growth strategy - rendering my services to pro-spective international clients with an interest in conducting business in South Africa.

Finally, through The Hope Factory I was introduced to (and able to implement) project and financial management systems that are enabling me to stay on top of financial man-agement and manage projects efficiently as my business grows.

I am brimming with enthusiasm! Regards, Puso Fisher of Ofensay Photography and Events

THANK YOU TO THE HOPE FACTORY FOR DOING A GREAT JOB CONTINUALLY. YOU ARE HELPING AND EMPOWERING MORE PEOPLE THAN YOU KNOW

- ENTREPRENEUR SIBONGAMANDLA MPOFU OF ILIWALETHU TRADING

MY MENTOR HELPS ME SET GOALS AND TASKS. I THOUGHT I KNEW A LOT BUT I HAVE GROWN SO MUCH THROUGH MY MENTOR AND KNOWLEDGE IS POWER

- ENTREPRENEUR ANDILE RUNU OF YALENARA TRADING

I am writing this email to commend my mentor on the phenomenal work that she is doing. The journey of an entrepreneur can be a difficult and lonely one shadowed by a lot of doubt and sometimes fear. At times, one is so over-whelmed by these emotions that one cannot see beyond that.

This is where my mentor, steps in. She has and still continues to motivate and inspire me. I always look forward to our sessions as I know I will leave with something greater. I used to underestimate the value of mentorship like most entrepreneurs I know, but she has proved me wrong and continues to do so with her exceptional and unique approach. Each time I meet her for a session I know that being part of The Hope Factory is one of the best things that I could have done for myself and the business.I can sit here and write a 10 page email but words will never truly capture how grateful I am. I would like to thank The Hope Factory and my mentor for doing such great work. May they keep up with the good work.

Warm Regards, Nwabisa Mayeng, of Beautiful Beginnings Consulting and Trading

Being a Business mentor at The Hope

Factory, is like being on a permanent journey of

personal growth.

It is essential to celebrate each small

victory with my mentees, because each tiny step creates momentum in

the pursuit of the greater vision.

I treasure dearly the rewarding sense

of purpose that I have derived from being

a mentor.

6JOHANNESBURG FEEDBACK

THE JOHANNESBURG ENTERPRISE DEVELOPMENT PROGRAMME

The Global Entrepreneurship Monitor (GEM) 2012 annual survey found that only 2% of the South African population who begin entrepre-neurial businesses manage to sustain that busi-ness for longer than three and a half years. To help address this, The Hope Factory launched a new Johannesburg Enterprise Development Programme, made possible through Enter-prise Development funding from numerous companies, in order to assist local established businesses grow and develop sustainably. We would like to share some key successes and lessons learnt so far this year.

The programme was launched early 2013 and was designed to assist existing small and emerg-ing Black-owned enterprises with a turnover between R250k R5 million per annum. There are currently 43 businesses on the programme with entrepreneurs represented from almost every industry. The Hope Factory has developed a full business analysis by which the entrepreneurs are measured on a quarterly basis and so far we have seen significant growth and improvement in a number of key perfor-mance areas.

THE IMPORTANCE OF MENTORING AND BUSINESS DEVELOPMENT The various elements of The Hope Factorys programme are all connected by Mentoring and Business Development. Mentorship is the primary platform for growth of the individual entrepreneur in order for them to grow their business. At The Hope Factory we commit to walking a journey of up to 4 years with each entrepreneur, depending on how long it takes the business to reach sustainability, but pro-gramme participation is evaluated at regular monthly intervals.

We place a very strong emphasis on the entre-preneur being practically equipped to change the current trajectory of their business with-out their business mentor ever getting behind the wheel of the enterprise!

ENTREPRENEUR ZUKI BAKANA OF TOTAL HEALTHCARE SER-VICES SAYS IT WORKS. THIS PROGRAMME WORKS. I HAVE SEEN IT IN MY OWN BUSINESS GROWTH.

JOHANNESBURG FEEDBACK

Ernest Carelse, Chairman of The Hope Factory Board with Bav Promotions and Marketing

Full Menu Catering

Moratiwa Tours

Beautiful Beginnings Consulting and Trading

Ujimabakwena Shoe Co-operative

Bhan Thai Massage Spa

7KEY LESSONS LEARNT THIS YEAR FROM STARTING THE PROGRAMME While full-time mentors are a more expensive resource than part-time mentors, there can be little comparison when it comes to the impact of a dedicated business mentor solely focused on equipping and resourcing each entrepreneur. Onsite mentorship opens up a whole new world of learning opportunities, when compared to mentorship that only takes place offsite from the entrepreneurs business premises. Goal focused, task driven mentorship ensures that purpose and direction is consistently injected into the relationship, while quickly

separating the free-riders from the go-getters.One has to consider the ratio of the number of entrepreneurs that one mentor is able to effectively mentor in order to assure quality in mentorship. Past experience in business, coupled with a patient, passionate and teachable spirit, remain some of the most critical ingredients to being an effective mentor to entrepreneurs. A specialist finance coach to support The Hope Factory Business mentors for on the job training and situations requiring expert financial advice has been invaluable.

WHEN YOU SEE PROFIT INCREASE DRASTICALLY, YOU GET A SENSE OF HOW FAR THE HOPE FACTORY HAS HELPED US. WE HAVE CATERED FOR OVER 8 YEARS AND ONLY NOW HAVE WE REALLY GROWN.

- ENTREPRENEUR TSHEPO MASHIGO OF FULL MENU CATERING

Annie McWalter, CEO of The Hope Factory with Dalene Sechele, Tom Stilwell and Hope Malaza of Mercantile Bank

What a privilege,

what a profession!

8JOHANNESBURG FEEDBACK

KEY SUCCESSES TO CELEBRATE 53% of the entrepreneurs businesses have increased turnover.

65% of the entrepreneurs businesses have increased profit since the beginning of the programme. This is directly related to many of the entrepreneurs adoption of accounting best practices. 24% of the businesses have registered an improvement in their salary for the last quarter. 100% of the entrepreneurs have improved the state of their company financial management systems and the vast majority of them are now generating monthly management accounts.

Ongoing refinement of The Hope Factory mentoring methodology has ensured that the programme develops a life beyond any single mentor or location.

The introduction of the The Hope Factory Entrepreneur Performance Scorecard

comprising a number of Key Performance Indicators has been used to evaluate entrepreneur performance on a quarterly basis. It is proving to be one of The Hope Factorys most valuable tools for relevant mentorship and impact on business growth. More than 80% of The Hope Factory entrepreneurs on the JHB programme have rated their business mentors as outstanding in all areas of a mentor evaluation. These areas included Character, Competence, Influence and Impact. Turning to the future, we are very excited about the new B-BBEE code amendments, particularly the new Supplier Development element. Access to new markets within this context has the potential to substantially impact SME market share especially for the majority of the entre-preneurs on our programme who are supplying non-core business related services.

Given the learning and successes that we have already experienced with The Hope Factory Johannesburg Enterprise Development Pro-

ONE CAN NEVER SAY THEY KNOW ENOUGH. IT WAS A SIMPLE WAY TO QUICKLY LEARN AND IMPLEMENT MARKETING CONCEPTS FOR MY BUSINESS.

- ENTREPRENEUR VUYELWA JAJULA OF BHAN THAI MASSAGE SPA

Entrepreneurs Thabi Mkhwanazi and Belukazi Nkala of Khanyile Solutions Entrepreneurs Mmabatho Morudi and Leeko Nkala of Chilladiddo

9gramme as well as the established successes of the Port Elizabeth Programmes, we are already busy growing sustainable Black businesses to be able to access new Supplier Development opportunities. While doing this, we will also make sure that we help to address that very low statistic of the 2% success rate of established entrepreneurial businesses in South Africa.

WORKSHOPS Workshops have proved to be a very important and necessary part of the Johannesburg Enter-prise Development Programme. They have been well attended and practical enough to ensure easy application of tools and lessons learnt into the entrepreneurs own businesses. Sixteen workshops based on various relevant topics were presented this year.

Examples of topics include:

Understanding Basic Finance Effective Marketing, Branding and Public Relations Sales Skills and Media Communication

Online Communication and Proposal Writing Costing and Budgeting Human Resources Taxation and Financial Statements Analysis Professionalism in Preparation for Access to Markets and Supplier Development opportunities

CAPITAL INVESTMENTS Two Capital Investment rounds of applications were offered as part of our programme service offering. The impact that these investments have had on the businesses are monitored on a quarterly basis.

THE INVESTMENT OF OUR APPLE COMPUTER COULDNT HAVE COME AT A BETTER TIME. WE NEEDED THE ASSISTANCE AND THE TECHNOLOGY ESSENTIAL FOR THE TYPE OF MARKETING WORK WE DO. WE ARE SO HAPPY TO HAVE BENEFITED FROM SUCH AN OPPORTUNITY.

- ENTREPRENEUR TOMI MOYAN OF ZEST MEDIA

Entrepreneur Ntombentsha Tafeni of Yivani Ezi Ndaba TradingEntrepreneurs Mmabatho Morudi and Leeko Nkala of Chilladiddo

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PORT ELIZABETH FEEDBACK

SOCIO-ECONOMIC DEVELOPMENT EQUIPPING START-UP PROGRAMME Our South African employment stats are poor. With a population of 52 million, we have 16 million unemployed. Our youth are the most negatively affected by this - up to 50% being unemployed. The situation may look bleak, but we believe in awakening the lost hope in people and it is their dreams and effort that will propel them forward. Our programmes restore self-esteem and dignity, and provide the necessary skills to make the person more employable and/or start their own business to do it for themselves.

The Equipping Start-Up Programme keeps the heartbeat of The Hope Factory vision beating strongly: Every South African empowered to be financially sustainable.

The Equipping Start-up full-time Programme has been an historical trademark of The Hope Factory, equipping previously disadvantaged South Africans with the skill of sewing so that

they could take that skill and provide an income to sustain themselves and their families. Over the past couple of years, this offering has ex-panded from basic sewing, to intermediate and specialised training in this field to enable these learners to start and manage their own business. Together with technical training, life and basic business skills, holistic mentoring is provided across all spheres of running a business.

The Equipping Start-up part-time Programme was initiated in 2012. The intention was to re-cruit potential entrepreneurs running informal, unregistered businesses, outside of the sewing industry. Once equipped with business, finan-cial knowledge and skills, they are well able to take their business from an informal entity to a registered and growing small business. This year, The Hope Factory has trained and equipped 38 potential entrepreneurs in tech-nical, business and life skills, giving them the opportunity to now make the next move to making their business idea a reality.

IT HAS BEEN GREAT. I AM WISER NOW, KNOWING WHAT I HAVE DONE AND WHERE I AM GOING BY MAINTAINING MY FINANCES AND BEING MORE STRUCTURED.

- ENTREPRENEUR MXOLISI BOLONTI OF MEMORIES AND VIDEO PRODUCTIONS


Business mentor Desmond Carroll and entrepreneur Siphokazi Vapi

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ENTERPRISE DEVELOPMENT EQUIPPING: BUSINESS DEVELOPMENT PROGRAMME Much of the growth and diversification in the Port Elizabeth Enterprise Development Programme this year has been largely due to the addition of the Business Development Programme. Many small business owners have entrepreneurial characteristics, but lack the skills and training to effectively run their businesses profitably. Coupled with focused one-on-one mentoring including business and financial training, there has been significant improvement in entrepreneurial growth, partic-ularly on how to run a business; including legal and governance, strategic planning, budgeting and cash flow management.

The Hope Factory has spent this year develop-ing and refining the business and financial cur-riculum to specifically meet the requirements of entrepreneurs at the grassroots and small business level.

WE ARE SO GRATEFUL FOR THE STRUCTURE AND EXPERTISE THAT THE HOPE FACTORY PROGRAMME BROUGHT TO OUR BUSINESS. IT HAS ALSO BEEN VERY HELPFUL TO HAVE A MENTOR THAT UNDERSTANDS BUSINESS AND WHO ADDS VALUE AND BRINGS STABILITY.

- ENTREPRENEUR DANDY BENNETT OF DANSA CHEMICALS

Guest speaker Nosiphiwo Ncoyo

Business mentor Roger Barendse with entrepreneur Asanda Laxa

Business mentor Anthony Matroos with entrepreneur Vuyokazi Toto

Business mentor Sherri Jeacocks with entrepreneur Phumla Ntshikila

Mentoring manager Ashley Murray with entrepreneur Nondumiso Meli

Business mentor Litha Zibula and entrepreneur Nokuzola Matabeni

The incredible growth and confidence I have seen in the mentees is

so fulfilling.

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ENTERPRISE DEVELOPMENT PROGRAMME

Many small business owners rely purely on the skill of their chosen trade to start and succeed in business, yet these alone are insufficient to build a viable business. Without the necessary business skills and guidance through mento-ring, most enterprises fail within 2 years. The Hope Factory programmes provide the solution, along with building the self-confidence of each entrepreneur, encouraging them to set achiev-able business goals and develop good processes and administration.

The Enterprise Development Programme in Port Elizabeth enables entrepreneurs to have access to services such as strategic business mentoring, workshops, access to markets and investment opportunities.

The focus for 2013 was on the refining of the Enterprise Development Programme in order to be more effective. There has been a strong emphasis on financial mentoring, particular-ly around the importance of record keeping and cash flow management. With the diverse background of our mentors we have incorporat-ed dual mentoring (calling on the expertise of more than one mentor) where required, which has allowed the entrepreneur the benefit of more ideas, concepts, knowledge and industry specific experience.

Entrepreneurs on our Enterprise Develop-ment Programme have had the opportunity to become members of the Nelson Mandela Bay Business Chamber. By attending their functions and development sessions the entrepreneurs have the added benefit of participating in networking opportunities. We also encouraged entrepreneurs to network amongst themselves during internal events at The Hope Factory such as workshops.

A total of 144 people are currently mentored in Port Elizabeth, 91 of whom are on the Enter-prise Development Programme and 53 are participants in the Equipping phase. We have registered 57 new businesses this year. The growth statistics for entrepreneurs current-ly on our programme for the 2013 year end are the following:

82% maintain a financial record keeping system 96% have developed a business strategy 58% have experienced turnover growth based on their average monthly trading 39% have increased net profit growth based on their average monthly trading.

With the introduction of the Business Devel-opment class in 2012, we have been able to de-velop entrepreneurs from various industries in 2013 including, but not limited to, grass cutting, catering, accounting and construction.


Business mentor Sherri Jeacocks with entrepreneur Abongile Sam

I HAVE LEARNT FINANCIAL MANAGEMENT, COSTING AND HOW TO SEPARATE BUSINESS AND PERSONAL FINANCE WHICH IS ASSISTING ME TO GROW MY BUSINESS TOWARDS SUSTAINABILITY. I HAVE REALIZED THE IMPORTANCE OF REMAINING FOCUSED AND THAT GROWTH COMES THROUGH POSITIVE THINKING AND GOOD BUSINESS ADMINISTRATION.

- ENTREPRENEUR NOMVULA PORTIA NTELEZA OF LUBANGE TRADING ENTERPRISE

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THE HOPE HUB

The Hope Hub opened its doors in late 2011, and currently has 9 businesses operating from its premises. It initially targeted textile handi-craft orientated businesses, but over time has diversified to include service based businesses such as garden services and graphic design. Main areas of business improvement this year include: Financial management Strategic direction Personal development and Project management.

Access to Markets A focused effort was made throughout 2013 to support these entrepreneurs with access to markets opportunities. A committee com-prising relevant stakeholders within The Hope Factory was set up to explore various options for our entrepreneurs. Various opportunities arose, including sales requests from Ernest and Young, The Gordon Institute of Business Science and Ubuntu Education Fund. As part of the devel-opment process several entrepreneurs had a chance to project manage the entire production cycle from submitting the quote, to delivery of the products to the customers. This provided invaluable experience and growth in confidence and ability. Other access to markets opportunities for the entrepreneurs included participation in markets associated with the National Arts Festival in Grahamstown, OH41 Hub market, Christmas in the Home and others.

Entrepreneurs Dandy and Asandiswa Bennett of Dansa Chemicals

Mentoring is as vital as taking vitamin pills; it

rejuvenates and builds the individual into a

healthy sound business man or woman.

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WORKSHOPS AND CAPITAL INVESTMENT

WorkshopsEducating and upskilling entrepreneurs through regular workshops is an important part of our service offering. The aim of the work-shops are to stimulate continued learning and the development of the entrepreneurs them-selves to enable them to grow their businesses. The workshops covered topics as identified by the business mentors, including: SARS Media Networking Personal Finance Business Language / Writing and Communication Positive feedback has been received from all the workshops. Attendance has been excellent and application of the learning will lead to greater sustainability of the businesses.

THE RECORD KEEPING WORKSHOP PROVED EXTREMELY BENEFICIAL ON HOW TO MANAGE THE FINANCES OF MY BUSINESS AND HOW TO MONITOR AND MAKE IT SUSTAINABLE.

- ENTREPRENEUR MORSH SCHOEMAN OF MORSHE SCHOEMAN CLOTHING

Capital InvestmentsAs part of the Enterprise Development Pro-gramme range of services offered, entrepre-neurs have the opportunity twice a year to apply for a Capital Investment into their business.

These investments include new stock, marketing material, specialised equipment and training, according to the unique needs of the enterprise. This year we awarded over 60 investments to both existing and start-up enterprises. The sur-vival and growth of an enterprise often stands at critical crossroads in its lifecycle where an investment could make the difference from stagnation to growth of the business.

THANK YOU TO THE HOPE FACTORY FOR THE INVESTMENT OF THE WHEELBARROWS AND BUILDING TOOLS THAT YOU HAVE MADE INTO MY COMPANY. I PROMISE AND VOW TO ALWAYS DO MY BEST TO MAKE A SUCCESS OF MY BUSINESS.

- ENTREPRENEUR JOELIEN BUYS OF VADONETIX


Entrepreneur Nkosinathi Twebe and Business mentor Katebe Musonda

Business mentor Guy Cloete with entrepreneurs Vuyolwethu Catchman, Bulelwa Mpeta, Luvuyo Mayinje and Joelien Buys

Mentorship is truly about building a legacy for sustainable business

for the future.

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16

POTSO MATHEKGAOWNER OF MAGGIES MAGEU.

D espite a wealth of experience in the corporate world, Potso Mathekga felt a strong desire to run her own business one day. Her grandmother had taught her how to make Mageu, a non-alcoholic maize based drink that can be used as an energy booster, a tummy filler to replace a meal or to quench your thirst, and turning this family recipe into a business seemed like an obvious choice.

Says Potso, My granny started producing Mageu at the age of seven she was taught by her grandmother and our recipe dates back to 1933. So, when I was trying to decide what to do for my business, combining our unique recipe with my experience in the food industry was first prize.

The rest, as they say, is history and in 2006 Grapeseed Trading opened its doors. However, as for most small start-up businesses, it wasnt all smooth sailing at first.

When we first started, the whole family worked in the business my husband, my grandmother, my brother in-law and myself. We really battled at first, as our vision of this huge company and in turn the huge funds we needed to start it seemed overwhelming. So we reassessed the situation and decided that in effect we had two options - either let this dream die or we start small and grow from there. Potso and her family decided to fund the business from their own savings and to face the competition head-on.

Traditionally Mageu was considered to be a drink for ill people or those in the lower income groups, but now were trying to change this perception, says Potso. To open up a new market, the team decided to take it to tertiary institutions and began hosting sampling ses-sions at one close to them, the Medical Univer-sity of South Africa (MEDUNSA). Since then, Grapeseed Trading has been supplying the canteen on a regular basis due to the popularity of the drink. She says I dont know what those guys do with it, but it just flies off the shelves! You deliv-er today and tomorrow morning they will call

you to say they have hardly any left and could we come and deliver some more stock! A significant milestone for the business was joining The Hope Factorys Enterprise Develop-ment Programme in January 2013. Says Potso of her experience, I am very grateful to have been a part of this programme. As an entre-preneur, you are so attached to the business that sometimes you are so busy working in it that you dont take the opportunity to step back

and take a helicopter view of the action. But when you have a Business mentor, you are able to get a fresh pair of eyes on the situation and someone who can help you identify where the challenges are. And to hold your hand while you address them. My mentor also reminded me of the importance of setting goals that are achievable and realistic and to devise a road-map to reach them.

JHB | ENTREPRENEUR SUCCESS STORIES

TRADITIONALLY MAGEU WAS CONSIDERED TO BE A DRINK FOR ILL PEOPLE OR THOSE IN THE LOWER INCOME GROUPS, BUT NOW WERE TRYING TO CHANGE THIS PERCEPTION.

17

Potso also stresses the importance of under-standing the finances of ones business. When you see money coming in you may think youre doing well but if you havent priced your prod-uct correctly, you may find that youre actually losing money. Her mentor says: It has been a real pleasure working with Potso and walking this jour-ney with her to grow her business and turn it around. When I met Potso I was marvelled by

the passion she had for this business. Being a woman in a male-dominated industry can sometimes be discouraging, but Potso never saw this as an obstacle and has actually turned this into a victory. Her dedication to business growth is commendable and her commitment to the development of her staff is admirable.Potso has been very committed to the pro-gramme as she recognises how instrumental it is to her reaching her business goals. Her commitment has really paid off as her turnover has grown by 51% since joining The Hope Factory programme.

Other improvements include: Better financial management of the business, which has seen them grow their profit by 37% A new product will be launched in 2014 Two Sales Reps will be joining the company in November to distribute the product to other Gauteng regions Distribution of their products to regional supermarkets in 2014. Maggies Mageu is currently sold in local supermarkets and wholesalers such as Cash & Carry.

According to Potso a key characteris-tic essential to all entrepreneurs is passion.

Everything starts with passion; if you do not have passion you might as well just forget it. Many people have said to me that I, being an engineer, could make 10 times my current sala-ry if I went back to the corporate world. To me its not about the money. Its about a dream. Its about leaving a legacy and building something for the next generation. At times running a business is hard but there is definitely light at the end of the tunnel and I have a vision of growing this business. Quitting is not an option. The future looks bright for Potso and her business. Shes currently in talks with a large global retailer which would assure her a nation-al footprint. She says, Weve got great plans for this product and in time hope to see us export-ing beyond the borders of South Africa too.

From humble beginnings as a family start-up, and through the assistance of The Hope Factorys Enterprise Development Programme, Grapeseed Trading and Maggies Mageu has grown from strength to strength.

MY MENTOR ALSO REMINDED ME OF THE IMPORTANCE OF SETTING GOALS THAT ARE ACHIEVABLE AND REALISTIC AND TO DEVISE A ROAD-MAP TO REACH THEM.

TRADITIONALLY MAGEU WAS CONSIDERED TO BE A DRINK FOR ILL PEOPLE OR THOSE IN THE LOWER INCOME GROUPS, BUT NOW WERE TRYING TO CHANGE THIS PERCEPTION.

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FANYANA MSIMANGOOWNER OF THABIZOLO COMMUNICATIONS AND ELECTRONICS.

Streamlined security ensures the success of Thabizolo Communications and Electronics. Fanyana Thabizolo had always been interested in electronic systems and gadgets such as cell phones. He developed an itch to become an entrepreneur while he was employed at Spoornet and took the leap of faith in himself in 2005. His security business now has clients which include ADT and with the support of The Hope Factory, Fanyana is set for even greater success. Thabizolo Communications and Electron-ics sells security and safety products. The core product is a security guard monitoring system which is a device that monitors the security guards at night when they are on site. The device is given to security personnel who patrol buildings and is designed to monitor their actions. The individual guard is issued with an electronic stick which works like a memory stick and as he walks around the building, he touches pre-arranged strategic points in the building to record the fact that he has passed that point. The electronic stick therefore records the time and date of each point of contact. This is coupled to software on a PC which provides a full report of where the security guard was at any time. Fanyana was chosen to be part of The Hope Factorys Enterprise Development Programme in Johannesburg at the beginning of 2013 and has seen his business grow on the back of the input he has received from his mentor and the various workshops he attended this year. For example, in the marketing module he realised that keeping communications simple, clear and to the point would help him gain new clients and become known within his target market. Fanyana now also understands his financial statements because of the clear and concise Taxation and Finanial Statements Analysis workshop. This is knowledge that he uses every day when running his business and he has become far more financially savvy as a result of the programme.

A particularly valuable part of the programme was the mentorship element. Fanyana said that being an entrepreneur can often be a lonely journey. Speaking to family and friends has its place, but the formal relationship of a dedicated mentor who has the requisite knowledge and experience has helped him steer his business in the right direction. Thabizolo Communications and Electron-ics has been going since 2005 and in that time has grown considerably. Before resigning from his day job, he had itemised his expenses and plotted his action plan for incremental periods of three months, up to a year. He had these discussions with himself before launching the business with low overheads, repairing cell phones from his home. Now the company has reached a point where it can claim to have this unique security guard monitoring system, giving him a competitive edge in the market. Also, being a local compa-ny, he is able to offer a very quick turnaround on any repairs which are required. Fanyana is a true ambassador of The Hope Factory Johannesburg programme and according to his mentor, Fanyana remains one of the most fo-cused, energetic and teachable business people

that he has ever encountered. This is evidenced in his high scores for mentorship and workshop participation. Since joining The Hope Factory, turnover for Thabizolo Communications has increased by 44% with a corresponding 2% improvement in their net profit margin, follow-ing both an expansion of their product range and growth in clients. Overall, The Hope Factory has provided a considerable boost to the operations of Thabizolo Communications and Electronics. Fanyana continues to grow and develop as an entrepreneur and business owner with the help of his mentor.

FANYANA THABIZOLO HAD ALWAYS BEEN INTERESTED IN ELECTRONIC SYSTEMS AND GADGETS SUCH AS CELL PHONES. HE DEVELOPED AN ITCH TO BECOME AN ENTREPRENEUR WHILE HE WAS EMPLOYED AT SPOORNET AND TOOK THE LEAP OF FAITH IN HIMSELF IN 2005.


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I find it such a humbling honour to be part of the team at The

Hope Factory, dedicated to serving and bettering

our country, one entrepreneur at a time.

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JOHANNA MASHIGO & TSHEPO MASHIGOOWNERS OF FULL MENU CATERING.


Food, glorious food

The team at Full Menu Catering has undergone an incredible journey in the last year as part of The Hope Factorys Johannesburg Enterprise Development Programme. When they started on the programme they were unable to track their finances accurately, had a poor understanding of VAT and were even unclear of the roles of the owners. Now, just 12 months later this business has seen a complete transformation. As the name suggests, Full Menu Catering is a catering and events management company which services corporates and private individ-uals. The business is run by Johanna Mashigo and Tshepo Mashigo, a mother and son team. They have been able to make a name for themselves in this competitive industry through their end-to-end service. Says Tshepo, For me its how we cook, how we deliver, how we present the food and how we keep the client in-formed in the run-up to and during the event. The quality of their product is another key factor in their success and Johanna says that she doesnt believe in using cheap ingredients. For example, she talks about how she has found that a brand-name herb and spice range is the best one to use and she will stick to it, not substitut-ing for a cheaper version to cut costs. Since joining The Hope Factorys Johannes-burg Enterprise Development Programme in January 2013, Full Menu Catering has seen a significant impact on their business. The Hope Factory programme has really helped us to take our business to the next level, say the Mashigos. It has helped us to take a birds-eye-view of our business and to see where there are opportunities and things that we should be doing differently. In the past, recommendations by clients have been a significant driver of new business. However, now that we have a B-BBEE certif-icate and are putting all of our business docu-

ments in place, were able to access new markets like corporates and government business. The Hope Factory taught us that we cant just say it will be say R100 per person for the event you have to cost everything accu-rately with a small buffer to complete the job. The biggest learning came when we discovered that we were actually running at a 71% loss. Now, thanks to the advice and help from our Hope Factory mentor were now showing a 43% profit! Their business mentor comments that Johan-na and Tshepo have shown incredible growth both in their business and personally. As part of the Johannesburg Enterprise Development Programme, entrepreneurs are encouraged to attend various workshops on different business topics. Johanna says that the one she found most beneficial was on SARS and what businesses need to know and do to remain legally compliant. She also found the Communication Skills Training especially helpful. She says, We have learnt so much about communication, how to talk to clients, how to behave when dealing with them and how to service them appropriately. Thank you so much to The Hope Factory.And these efforts have already paid off. The team recently supplied cakes to CQS one of The Hope Factorys top funders and have also received an order to cater for a breakfast for 200. When asked what advice theyd give to entrepreneurs who are hoping to venture into the industry, Johanna and Tshepo are clear: dedication and passion are vital. Dedication - whatever you do, you have to be dedicated to a job. Tshepo says, For me business is passion; you must do what you love because some days running a business can be very challeng-ing. You need to ensure that you have

the staying power. From humble beginnings baking at home with her mother, Johanna and Tshepo have built a successful business that now employs eight full-time staff. In the future they hope to build a fully-equipped canteen and to continue to take the business to new heights.

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THEIR BUSINESS MENTOR COMMENTS THAT JOHANNA AND TSHEPO HAVE GROWN THE MOST ON THE JOBURG PROGRAMME (OF ALL OF THE ENTREPRENEURS ENROLLED).

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ZUKI BAKANA & BHEKI BOYCEOWNERS OF TOTAL HEALTHCARE SERVICES.


Total turnaround for Total Healthcare Services

Total Healthcare Services was formed in 2007 by husband and wife team -Bheki Boyce and Zukiswa Bakana. While a successful business that managed to expand and grow to employ 38 staff, since joining The Hope Factorys Johan-nesburg Enterprise Development Programme, the business and its owners have benefitted from implementing more structure and apply-ing sound business basics. When they started the programme their main challenge was a lack of planning which lead to cash flow issues. In addition a lack of business systems led to inconsistent client ser-vice levels. Bheki and Zukiswa are very clear about the value theyve gained from the programme and their sessions with their Business mentor.Says Zukiswa: We have seen first-hand the impact that our mentor has had on our business and how we run it. For example, our mentor helped us to realize that as the leaders in our business, we need to set the example. If we are late for work or come in dressed very casually, our staff will do the same. Bheki agrees. He says, I have found the workshops very informative. Our mentor has encouraged us to print out financial statements from our ac-counting package and to make decisions based directly on these numbers. The programme has definitely helped to make sure that theres more structure to the business. We have taken on board what we learnt in the workshops and have reviewed ex-isting systems and have put new ones in place, says Zukiswa.

She talks about how they evaluated all of the HR practices and checked that all staff have an employment contract and receive a pay slip.Another light bulb moment for the pair was around meetings. We use to have our meeting in bed and talk about things we thought we should be doing. Unfortunately as we didnt write things down, these ideas were lost by the next morning. Our mentor encouraged us to hold meetings on a Monday in our office space. Now we take minutes and are clear on what were going to do. Our mentor has brought in accountability. In just 5 years Total Healthcare Services has seen incredible growth and development and in the future Bheki and Zukiswa plan on becoming a national brand. Zukiswa was recently interviewed on Busi-ness Day TV - facilitated by The Hope Factory. She says: During the interview I was asked if my business was just a hobby and I can assure you that its not. Wed like to see Total Health-care Services become a national company that helps to empower others. We say to our staff, dont be stagnant, let us help you grow and develop. Total Healthcare Services should be a platform for you to be recognized so that you can move from cleaning to being a clerk. Its clear that this dynamic duo have benefit-ted from The Hope Factorys programme. Bheki sums it up best. Once youve got the informa-tion and the guidance, you can go out there, work better and more efficiently and ultimately make more money. The skys the limit.

WE HAVE SEEN FIRST-HAND THE IMPACT THAT OUR MENTOR HAS HAD ON OUR BUSINESS AND HOW WE RUN IT. FOR EXAMPLE, OUR MENTOR HELPED US TO REALIZE THAT AS THE LEADERS IN OUR BUSINESS, WE NEED TO SET THE EXAMPLE. IF WE ARE LATE FOR WORK OR COME IN DRESSED VERY CASUALLY, OUR STAFF WILL DO THE SAME.

Mentoring gives me the opportunity to

reach out and touch somebodys life and make a difference.

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PE | ENTREPRENEUR SUCCESS STORIES

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Networking and referrals have benefited Siya the most during his time of business over the past few months. He says I have learnt that if you make each job a complete success your customers will continue to use you and refer you to their friends and business connections. As a member of both the Nelson Mandela Bay Business Chamber and BNI (a referral organisation), Siya has learnt the art of networking and creating business leads through building good relationships. Siya currently employs three staff members who mainly service the clients per a prescheduled list in Motherwell while he himself services the clients in the other areas. He says People tend to underesti-mate my business ability because I am so young, and I am learning how to convince them to give me a chance to do the work for them. As an enthusiastic 25 year old business man he dreams of expanding his business nationally to East London and Cape Town one day. If I ensure that my business is well established in Port Elizabeth and can continue to operate without me I can focus on opening new branches. This will enable me to employ more people. Business is not easy, but if you are dedicated and committed to what you do and stick to your plans, you can make it! Meeting new people and assisting my employees with an income as the bread winners for their families is what keeps me motivated and enthusiastic.

THE HOPE FACTORY HAS HELPED ME A LOT THROUGH THE BUSINESS SKILLS TRAINING AND MENTORING THAT I HAVE RECEIVED AS WELL AS THE INVESTMENTS.

ervice offering: Grass cutting and general gardening services to domestic and corpo-rate clients throughout Port Elizabeth, as well as indoor and outdoor landscaping.

The aim is to create a service to clients that can combine all their landscaping and

gardening needs, explains Siya. Did you always want to be an entrepreneur?

I did not always want to be an entrepreneur, but cir-cumstances forced me into it when both my parents lost their jobs. I started to sell sweets at school, then later in life moved on to selling oil, and also muffins and chocolates. I do not see myself as a sales person but a peoples person. Over the years I have learnt to love it. Being an entrepreneur and running my own business has become my passion. Late last August 2012 Siya joined The Hope Factorys Business Development class. His time at The Hope Factory has been productive because of all the doors that it has opened for his business. When he started at The Hope Factory he only had clients in his community, Motherwell Township, but has since expanded to clients in six other suburbs in town. This has also been a very challenging time for him as he had to learn how to implement important business processes in order to run his business successfully.

The Hope Factory has helped me a lot through the business skills training and mentoring that I have received as well as the investments. Through the mentoring and support Siya received, much has changed for him. His business has grown to the extent that after The Hope Factory investment of a grass cutter, he was able to increase his client base and eventually managed to buy himself a second grass cutter. Siya also sees himself as a mentor to other young men and counts this as a privilege and an opportunity to give back to the community by paying it forward. Siya joined The Hope Hub in March 2013 and has this to say: Being in The Hope Hub has helped me to penetrate the Port Elizabeth market, with 60% of my turnover coming from clients I got since I joined. My business is more professional now with an office environment where clients can come and see me. I am able to do all my paper work at the office, and even get new clients who visit other entrepreneurs and then also approach me for business.

SIYA TSEWUOWNER OF SIYAS GARDENING SERVICES.

S

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BONGIWE KUTASEOWNER OF SANDLAS BABY CARE.


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Bongiwe has always loved children. It was after she received bad service from a crche in her area that she decided to take the plunge and start her own. She was employed full-time at that stage which initially delayed her idea of running her own crche business but she is glad she waited, as timing is important. Fast track a few years and Bongiwe now successfully runs her own crche where she looks after babies from ages 0-3 years, I love the little ones she said with a smile. The youngest that shes had was three weeks old and was very tiny but her loving hands were there to care for her. She chose the 0-3 year olds as her target market as they are her favourite age group. The name of her business is Sandlas Baby Care which appropriately means Hand. Bongi-we offers a loving, caring and helping hand to the babies, looking after all their needs and teaching them in her nurturing environment.

Most of her customers arrive very early in the morning. Her first baby arrives at 06h10, and drop off continues as mothers, fathers and caregivers make their way to work. Bongiwe takes her job very seriously as care giver, and ensures that breakfasts and lunches are nutri-tious and healthy. She prides herself in creating a loving environment where parents can feel completely assured that their children are safe, loved, happy and secure. She says I also always communicate with the parents if anything

arises. This has strengthened the relationship between us; they trust me with their babies.

Bongiwe started her business early 2010. She started with 3 babies and with very little equipment but by December that same year her numbers had grown and with signage the busi-ness grew even more. When she started at The Hope Factory she had 18 children and now she has 36. She herself has grown and developed over the past few years, and has become more patient and focused in life.

One of her dreams for the future is to offer a Weekend stay-away accommodation for chil-dren when their parents are away from home for work or personal reasons. Bongiwe feels that there is a need for a safe haven for children, so that they are well cared for.

She believes that she was born to run her own business, and that it is in her blood. Nothing is more motivating to her that being passionate about children and enjoying teach-ing them. Her popularity in the area has been fueled by her trusted name, and the continued growth in her finances has been a direct result of her well-run business, thanks to mentoring by The Hope Factory.

I started at The Hope Factory in 2012 and I have learnt so much. I was taught how to manage a business, financial management and also separate my business and personal finances. My mentor has helped me with guidance and support. This has benefited me greatly, causing

me to take my business seriously. I am strict with my money now and even if my mentor was not around I would still be able to stand on my own with the knowledge I now have.

2010 | 3 babies

2012 | 18 babies

2013 | 36 babies

Mentoring is a catalyst in the success, growth

and sustainability of any business.

I AM EXCITED AS MY MENTOR HAS SHOWN ME MANY OPTIONS AND IDEAS FOR MY CRCHE, ONE OF WHICH I AM NOW IMPLEMENTING. THANK YOU THE HOPE FACTORY!

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nomvula ntelezaOWNER OF LUBANGE TRADING ENTERPRISES.

Nomvula Nteleza, is an inspiring entre-preneur and business woman at heart, and a testament to the fact that it is never too late to pursue your passion. When asked how she gets new ideas she confidently answers Do not sleep walk, open your eyes! Being aware of the needs around her was the foundation for starting her own business, but being entrepreneurial started off in her early high school years with selling sweets and bak-ing goods, to the other students and staff.

Nomvula initially studied Nursing, to fulfill a need to help sick relatives during tough times. However, as a retired nurse, Nomvula and her husband felt the pull towards entrepreneurship and took the great risk of acquiring a 3.8 ton truck and 1.6 ton light delivery vehicle with their retirement money, to fund their business idea. We took the risk because we saw the great need in our community for a reliable way to transport peoples furniture and wanted to help. We had a deep belief that together we can maximize this opportunity to start a business and at the same time serve a great need in our community for moving into RDP houses. This sentiment is echoed in her business name, Lubange Trading Enterprises, named after her grandson, meaning - make it happen.

Not only does her transport business cur-rently employ four people, she also manages a side catering business that employees three ladies on a contract basis. In addition to this she started a grass cutting business that is currently run by her neighbour.

Her time and experience at The Hope Facto-ry has been invaluable, and she is very grateful

for all she has learnt so far and especially for the growth her business is experiencing. My men-tor is so passionate and serious about business which has encouraged and inspired me to work at keeping myself motivated through positive thinking, and now I can do those things I previ-ously could not do.

The biggest impact to the business as a direct result of being on The Hope Factory programme has been in the area of financial management. She has learnt the importance of record keeping and separating personal and business finances. For her, the best part of men-toring has been having someone accompany her on her business journey; to put theory into practice and growing personally, knowing that her goals are achievable.

Key lessons that she has learnt from her mentor include:1. Be focused on what you want to do2. Learn to plan 3. Ensure good financial management

Excellent customer service is key to build-ing and maintaining relationships with their customers and Nomvula ensures that there is constant clear communication between them. We also aim to continuously provide a good honest and reliable service to our clients.

Plans for the future include buying another truck to increase their capacity for their furni-ture removal business. They are currently saving up for it, preferring to pay cash rather than credit. Another strategic focus will be to expand the operational business, as this has shown

good potential. Nomvula has also applied to The Hope Factory for a capital investment for a few catering equipment items, which will enable them to deliver an additional catering service to the community. The business has grown from strength to strength and they look forward to further growth to enable them to employ more people.

Nomvula Nteleza is passionate and positive about life and business. I am very grateful for the growth we have experienced since I joined The Hope Factory. The Equipping Business class


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has enabled me to become an independent busi-ness woman. In particular our Business trainer has taught me how to withstand challenges and think bigger. To our supportive funders, I would like to say, you have not put your money to waste. I can clearly see how your investment in me has made my business grow.

DO NOT SLEEP WALK, OPEN YOUR EYES!

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Thembakazi HlokomaOWNER OF ELUTHANDWENI LWAKHE TRADING ENTERPRISE.

T hembakazi Hlokoma is an inspiring, hardworking business owner who gets up in the early hours of the morning while most of us are still asleep to make sure

that her muffins and baked bread are fresh and hot for her clients. She runs a baking business, Eluthandweni Lwakhe Trading. The name of the business means In His Love, because she says she believes in God.

Thembakazi always felt the call to have her own business and from her early school days found it easy to sell sweets and biscuits to her friends. It was when she lost her job and found herself unemployed, that she borrowed a muf-fin recipe from a friend and started baking and selling. In the beginning, sales were very slow, but she never lost hope. As time went by her sales increased and she realised that this was going to be a viable small business.

In 2011 Thembakazi joined The Hope Fac-tory and she has never looked back. The Hope Factory has helped me in many ways; they have equipped me with business management skills, computer skills and excellent mentorship. The Business class taught me the importance of com-plying with the business law, paying tax, keeping records and budgeting.

She explained how her mentor taught her to treat the business separately from her personal finances and agrees that this has had a big impact on her financial growth. Previously I never used to bank my money, I used to spend it on per-sonal things and I would go shopping whenever I had cash on hand. I did not think of banking my money, but my mentor has taught me the impor-

tance of having a bank account and banking my money regularly, which I now do. My mentor also taught me the importance of costing my products accurately and that if I want to move to a different place I need to first do a feasibility study.

Thembakazi currently sells her baked products every morning at the busy taxi rank in Motherwell. Her cus-tomers are men and woman going to work, and children

going to schools daily. I walk around with my baked products, I go to the people, and they dont have to find me. Customers come back to me because of my good service and I approach people confidently, with baked goods that are very tasty. My product is of consistent quality

and taste and is baked daily. I also make sure that I am clean, neat and look presentable at all times.

She believes that The Hope Factory programmes have changed her life, and have had a profound impact on her business. She says The mentoring and equipment I have received through capital investment has grown the business and things are so much better

now. Business has increased over the past 18 months to the point

where she now employs two additional staff mem-bers, selling at different locations. I bake 240 loaves of fresh bread daily which we sell. In August I had my big-gest monthly turnover so far.

Thembakazi is optimistic about her

future, and so appre-ciative of her mentor,

who supports and walks her entrepreneurial journey

with her. She believes in entrepreneur-

ship and smiles when she says, If you want to start a business, you must be confident, a hard worker and willing to take risks. You must have passion for what you do. It is

not easy in the beginning so start small and never lose hope.

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Stakeholder Appreciation Day 2013

STAKEHOLDER APPRECIATION DAY 2013

CEO Annie McWalter with Guest Speaker Clem Sunter

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I n June, The Hope Factory showcased the way it is contributing to entrepreneurial development at its biggest annual event - Stakeholder Appreciation Day. This inspiring event, held in Johannesburg for the first time this year, was an opportunity for investors to experience specifically how their Enterprise Development contributions are making a differ-ence in the lives of entrepreneurs.

For the first time ever, investors were able to meet the 22 entrepreneurs selected from the greater Johannesburg area who are part of The Hope Factorys newly-launched Johannesburg Enterprise Development Programme. The energy and excitement experienced at this mini expo was tangible. Enthusiastic entrepreneurs displayed their products and services and had the chance to interact with representatives from the organisations who have helped to fund their development through their contributions.

According to Annie McWalter, CEO of The Hope Factory, Today is about celebrating the entrepreneur and the power of supporting enterprising individuals. We need an inclusive economy in South Africa that affords equal opportunities for all individuals to be able to succeed. We believe that the teaching and sup-port of entrepreneurship is the best form of empowerment around. This speaks to our vision and dream of The Hope Factory: to see every South African empowered to be financial-ly sustainable.

International future scenario expert Clem Sunter, the guest speaker at the event, believes that encouraging and developing entrepreneurs in South Africa is vital. He says, If we can cre-ate a culture of entrepreneurship in South Afri-ca, underpinned by a supportive environment, we could see the formation of one million new businesses by 2020. This in turn could help to create five million new jobs. The work that The Hope Factory is doing in helping start-ups to develop and grow their businesses is a good example of such a supportive environment.

Another highlight of the event was one of our entrepreneur guest speakers Lebo Mashaba of History Makers. Lebo touched the audience with her moving account of how The Hope Factory has made such an impact on her business growth, and how she has developed as an individual with the mentorship she receives. She ended with a note of sincere gratitude to in-vestors for their support of the programme, and therefore of entrepreneurship in South Africa.

Charaine Ludick, Director of Hyundai, one of The Hope Factorys funders says, By sup-porting The Hope Factory, were able to have an impact on entrepreneurial development, something that Hyundai fully supports. We are committed to The Hope Factory as we believe that its programmes are making a difference to the lives of both the entrepreneurs it assists and also the wider community.

Karl Kumbier, Chief Executive Officer of Mer-cantile Bank, says, We are delighted to be asso-ciated with The Hope Factory as, like them, we also believe that entrepreneurial development is vital for the future of South Africa. This was one of the key reasons why we signed a three-year agreement with The Hope Factory in December 2012, to be their exclusive banking sponsor for their Johannesburg programme.

With the continued growth in our Johannes-burg programme, and in line with the newly gazetted B-BBEE codes and their emphasis around Supplier Development, we look forward to an even larger entrepreneur expo in 2014.

Mentoring is about making a difference in someones life, it is an

opportunity to pay it forward.

Seeing businesses

grow from strength to strength is what

motivates me daily in my role and most importantly seeing the entrepreneurs

personal development. For me it is truly a

calling.

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STAKEHOLDER APPRECIATION DAY 2013

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CLEM SUNTERS21ST CENTURY MEGATRENDS

1. Populations are ageing. 2. More economies will return to a steady state.

3. We have moved from the Age of Knowledge to the Age of Intelligence.

4. It is more about defending your wealth than

growing your wealth.

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keypad speaker

contactsholdadd call

mute

PHOTO KEY

1. Table setting at the event. 2. Philile Sithathu, Ina Jagga and a Hope Factory Board member Carmen van der Vyver.3. Former Deputy CEO Marion Pearce and former CEO and Founder of The Hope Factory Liz Zambonini.4. Tom Stilwell of Mercantile Bank and entrepreneur Fanyana Msimango. 5. Entrepreneur Kelebogile Mooketsi and colleague.6. Chantyl Mulder, a Hope Factory Board member with entrepreneur Potso Mathekga.7. Entrepreneur Teboho Mokhele and colleague.8. CEO Annie McWalter with a Hope Factory Board member Tim Hayden.9. Entrepreneur Lebo Mashaba. 10. Event Gift Bags. 11. Antonie Jagga, a Hope Factory Board member at the Full Menu Catering stand. 12. Entrepreneurs Fikile Nthsumayelo and Tomi Moyan.13. Entrepreneurs Tlou and Matshidiso Seanego of Tlokamo Trading Enterprise.14. Entrepreneur Fikele Zikale. 15. Entrepreneur Tracy Jean-Pierre and colleague.

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5. Education is out of sync with the job

market and changing nature of work.

6. We are witnessing a second scramble, and

potentially more dangerous scramble, for resources.

7. Wars will continue to be fought as

weapons become more sophisticated.

8. Like black swans, natural disasters will come out of

the blue.

9. Dictatorial regimes will become rarer, but what

replaces them is not necessarily democracy.

10. The work/life balance is now even more elusive.

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OUR SUCCESS IN NUMBERS

PORT ELIZABETH

Our Success in numbers 2013

96%OF BUSINESSES

HAVE A BUSINESS PLAN

144NUMBER OF BUSINESSES MENTORED

39%OF BUSINESSES

HAVE INCREASED PROFIT

19%OF BUSINESSES

HAVE EMPLOYED MORE STAFF

58%OF BUSINESSES

HAVE INCREASED TURNOVER 82%

OF BUSINESSES HAVE

SOLID RECORD KEEPING

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JOHANNESBURG

100%OF BUSINESSES

HAVE A BUSINESS PLAN

43NUMBER OF BUSINESSES MENTORED

24%OF BUSINESSES

HAVE INCREASED SALARIES IN

THE LAST QUARTER

53%OF BUSINESSES

HAVE INCREASED TURNOVER

65%OF BUSINESSES

HAVE INCREASED PROFIT

I have had a working life of 42 years, the last

two at The Hope Factory have been by far the

most rewarding. I love this place!

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In our final reflection on 2013, we take this oppor-tunity to thank all our stakeholders, especially our generous investors for your continued support in helping us fulfill our vision of every South African empowered to be financially sustainable. None of this would be possible without you. We know that our combined efforts are making a positive impact in empowering entrepreneurs and growing small businesses in South Africa.

THANK YOU TO OUR

STAKEHOLDERS

THANK YOU TO OUR STAKEHOLDERS

Charaine Ludick and Deon Sonnekus of Hyundai Automotive SA with Annie McWalter and Jessica Cilliers of The Hope Factory

Dzokai Mudzi and Chenai Kadungure of The Hope Factory with Karolynn van Vuuren of Rochtech Earthmoving Wearparts

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Grant Walker of Liquid Capital with Dzokai Mudzi and Sean Krige of The Hope Factory

Agnes Dire of SizweNtsalubaGobodo with Dzokai Mudzi and Chenai Kadungure of The Hope Factory

Ravi Gopaul and Craig Mountjoy of K Line Shipping SA with Sean Krige of The Hope Factory

Annie McWalter and Dzokai Mudzi of The Hope Factory with Bianca Mazur of Flight Centre

Nancy Whitecross of National Dairy Equipment with Chenai Kadungure and Dzokai Mudzi of The Hope Factory

WE ARE DELIGHTED TO BE ASSOCIATED WITH THE HOPE FACTORY, AS LIKE THEM, WE ALSO BELIEVE THAT ENTREPRENEURIAL DEVELOPMENT IS VITAL FOR THE FUTURE OF SOUTH AFRICA.

- KARL KUMBIER OF MERCANTILE BANK, KEY SPONSOR OF THE JOHANNESBURG PROGRAMME.

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EARNING YOUR POINTS

EARNING YOUR POINTS

The Hope Factory has a Socio-Economic Development (SED) portion for potential entrepreneurs, an Enterprise Development (ED) portion for existing entrepreneurs and a Supplier Development (SD) portion for developing Black suppliers.

Earning Enterprise Development (ED) and Supplier Development (SD) points in three easy steps:

1. Contact The Hope Factory to discuss potential Supplier Development planning and the Supplier or Enterprise Development financial contribution you would like to make. 2. A Memorandum of Understanding (supplied by The Hope Factory), which formalizes your contribution and how it will be used, will be signed by both companies. 3. An invoice will be issued to your company. Upon payment, The Hope Factory will provide you with all the relevant evidence for your B-BBEE verification purposes.

Earning Socio-Economic Development (SED) Points in one easy step:

1. Contact The Hope Factory to discuss the financial contribution you would like to make.

For more information visit our website www.thehopefactory.co.za Companies can earn both SED, ED and SD points through investing in The Hope Factory. Should you wish to invest, kindly contact: Dzokai MudziEnterprise Development [email protected] 479 0638

Entrepreneur Puso Fisher of Ofensay Photography and Events

www.thehopefactory.co.za

The Hope Factory is a non-profit company

The Hope Factory uses 100% recyclable paper

the hope factory | annual report 2013

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