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Port Elizabeth 2015

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Put your small

business in the

best position

to get credit

from a bankThere are specific ways in which

you can reassure a bank that your

business is capable of repaying any

money they lend you, increasing

your chances of acquiring credit

mall and medium enterprises (SMEs) account for almost half of South Africa’s gross domestic product (GDP), up to half the formal wage bill, and some 60% of private sector employment. So, most banks feel it is important to find ways

to give SMEs access to finance to increase the positive effect they have on the national economy.

S

210109 Advertorial.indd 1 2015/06/26 10:34 AM

Put your small

business in the

best position

to get credit

from a bankThere are specific ways in which

you can reassure a bank that your

business is capable of repaying any

money they lend you, increasing

your chances of acquiring credit

mall and medium enterprises (SMEs) account for almost half of South Africa’s gross domestic product (GDP), up to half the formal wage bill, and some 60% of private sector employment. So, most banks feel it is important to find ways

to give SMEs access to finance to increase the positive effect they have on the national economy.

S


1. The first C is for ‘character’ and relates to your personal records, behaviours and attitudes. You need to show a good record of repaying debt, a good record in the industry in which you operate (including qualifications, certification, industry networks, and customer base), how committed you are to your business in terms of the time and money you have invested, and how much business management capability you have.

2. Then there’s ‘capacity’. This relates to your business’ ability to repay specific amounts at specific times. Can you afford the new debt? How strong is your cash flow? How reliable is your income and will there be money in the bank on the day you need to make repayments?

3. ‘Capital’ refers to how much your business is worth in rand terms, how much you and other investors have put into the business, and whether you have other means of settling your debt if the business cannot.

4. ‘Collateral’ is about the assets you agree to use to repay the bank if your business cannot.

5. The last C, ‘conditions’, takes into account external factors that could affect your business. Environmental conditions refer to the general state of your industry and the area where you trade, consumer demand, the state of the national economy, your competition, and the banks’ risk appetite as a result of all these factors. ‘Conditions’ also includes the purpose for which you need finance. You need to show that the loan will be used to develop the business instead of getting it out of trouble.

“Any owner of an SME who comes to us with as many of the five Cs in place as possible already demonstrates that they are serious about their business and about interacting with the bank responsibly,” says Ms Nyembe. “It’s a great way to start a business banking relationship with us.”

Moving ForwardTMAuthorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). SBSA 210109 – 6/15 Moving Forward is a trademark of The Standard Bank of South Africa Limited

The trouble is, though, that banks are strictly regulated, because they are responsible for the billions of rands entrusted to them by individuals and businesses. In other words, like SMEs, banks play a vital role in the economy. They cannot put themselves at risk by lending money to small businesses that might fail.

As a result, they have standard processes and procedures for assessing the credit readiness of a business and how likely it is to repay what it borrows.

“As the bank for entrepreneurs, we focus on making access to credit possible and, therefore, take different approaches to helping SMEs get to credit readiness,” says Ethel Nyembe, Head of Small Enterprise at Standard Bank.

“We believe that credit is only one element of an SME’s financial responsibilities. So, it should not become a burden to the business. For that reason, our Small Enterprise unit offers basic affordable banking services that enable small businesses to build financial records and capacity.

We then add to these services, tools, such as our small business portal, that enable SME owners and managers to build their financial management capabilities.

“We also provide our SME customers with credit solutions that range from simple overdrafts and asset (vehicle) financing, to working capital and property finance services. These are complemented by payment, investment, risk management and cash management solutions designed to help them improve their credit worthiness.

“More than 90 of our relationship managers around the country are trained to provide these services. It’s worth taking the time to talk to them to understand what you need to do to help us help you.”

Another way of doing this is to follow the bank framework of the ‘five Cs of getting ready for credit:


www.smmesa.co.za

CREDITS EventOrganiser CapeMediaCorporation

ManagingDirector RobertArendse

OpportunityMagazineEditor LindsayKing

EventsDivisionManager GregPenfold

ProjectManager ZamaHlekani

EventCo-ordinator Lesley-RaeWebber

DesignandLayout BrentMeder

DigitalContentManager RalphStaniforth

DivisionalSalesManager VenesiaFowler

AssitantProjectManager ChenicaWilliams

SalesTeam LungaZiwele,FionaSouthgate,SharonPotts

CapeMediaEventManagement JohnElford

CapeMediaHouse,28MainRoad,Rondebosch7700

www.capemedia.co.zaTel:+27216817000Fax:+27216854448

➤SMME Opportunity Roadshow Port Elizabeth ➤

http://www.smmesa.co.za

BMWSouthAfrica

DepartmentofLabourUIF

MandelaBayDevelopmentAgency

MTNSouthAfrica

NationalEmpowermentFund

StandardBank

ProudlySouthAfrican

RedisaRecycling

SEDANelsonMandelaBayICT

TransnetFreightRail

UitenhageDespatchDevelopment.Initiative

www.opportunityonline.co.za

Exploring business prospects in southern Africa

Thank you to our sponsors

Exhibitors

3www.smmesa.co.za

EXHIBITORS & SPONSORS

FOREWORD

The vital role of SMMEsW henitcomestojobcreation–whichisoneofthemost

importantprioritiesfacingSouthAfricatoday–SMMEsplayacrucialrole.Oureconomydependsonthemfor

growthandexpansion.ThisiswhyStatePresidentJacobZumacreatedagovernment

departmentespeciallyforthispurpose,namely,theDepartmentofSmallBusinessDevelopment.OneofthemostpowerfuldriversbehindsmallbusinessdevelopmentistheSouthAfricanNationalInfrastructurePlan(SANIP).

Thesupport thattheSouthAfricangovernmentprovidesforsmall,mediumandmicroenterprises(SMMEs)iswidelyacknowl-edgedasthecountry’sefforttowardseconomicrestructuringandpovertyalleviation.Indeed,governmenthasapoliticalandlegisla-tivecommitment,throughpolicyandstrategy,toensurethatSMMEdevelopmentisviable.SMMEdevelopmentinlocalgovernmentispartandparceloflocaleconomicdevelopment(LED)strategy.

SMMEdevelopmentisfeltallthewaythroughoureconomy,espe-ciallywhenitcomestotherestructuringoftheeconomic-baseoflocalmunicipalities.Municipalitiesareentitiesoflocalgovernment,sosuchrestructuringwillaffectthecharacteroflocalgovernmentinitsentirety.

SouthAfrica’ssmall,microandmedium-sizedenterprise(SMME)economyhasbeenactivelypromotedsince1995.Despitevolumi-nousresearch,however,thereisstilllittleclarityabouttheextenttowhichSouthAfrica’sSMMEscontributetopovertyalleviation,economicgrowthorinternationalcompetitiveness.

SMMEsencompassaverybroadrangeoffirms,fromestablished,traditionalfamilybusinessesemployingoverahundredpeople(medium-sizedenterprises),downtothesurvivalistself-employed,whichextenddowntothepoorestlayersofthepopulation(informalmicro-enterprises).Whiletheupper-endoftherangeiscomparabletotheSMEpopulationofdevelopedcountries,statisticsrevealthatanimmensemajorityofSMMEsareconcentratedontheverylowestend.Theseareprimarilyblacksurvivalistfirms.

Therecanbenodoubt,however,thatSMEsareresponsibleforthemajorityofnewjobscreated.Furthermore,SMEshaveacapacityforinnovationandflexibilityinachangingbusinessenvironmentthatmakesthemcrucialtoSouthAfrica’ssuccessintheglobaleconomy.However,sometimesittakesaninspirationorahelpinghandtogetofftheground–tonurturethepromiseofanentrepreneurialideafromseedtoflower,andfromsoiltoshelf.ItismybeliefthattheSMMEOpportunityRoadshowprovidesjustsuchahelpinghand.Here’shopingallparticipantsgetthemostoutofthisimportanteventandthat,together,wecanenhanceand

developSouthAfrica’svitalSMMEsectorinthemonthsandyearstocome—forthebenefitofallourpeople.

Zama Hlekani Project Manager: SMME Opportunity Roadshow


Welcome to the New World of Business.

Metro

politanRe

public

/168

04/E

Every day, entrepreneurs have to solve problems that didn’t exist the day before. That’s why you need a partner that understands your unique challenges and opportunities. You need New World thinking from MTN Business. When you choose us as your communication partner, you’re always connected to your business. We offer an array of scalable solutions from mobile voice and data, to easy-to-deploy business networks and applications.

By employing the latest technologies, and providing next-level support, we help entrepreneurs to grow small businesses into bigger businesses.

Go to mtnbusiness.co.za or email [email protected] for more information.

New World. New ways for entrepreneurs to do business.

Continental Cars

www.continentalcars.co.za

SheerDriving Pleasure

Continental Cars is everything a BMW Dealership should be and more. When entering our state-of-the-art premises, you’ll be greeted by friendly staff ready to assist with all your BMW requirements. Whether it’s sales or service, test-drives or tailored fi nance, parts or professional advice, look no further than Continental Cars. We are an Approved BMW Dealer and use only Original BMW parts in servicing and repairs. This ensures quality and gives you a 2 year warranty.

BMW SALES, FINANCE, PARTS, SERVICE AND ACCESSORIES.

WE GO OUT OF OUR WAY IN EVERY DEPARTMENT.

Continental Cars Ring Road, Greenacres, Port Elizabeth, Tel. 041 502 2200www.continentalcars.co.za

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EDITOR’S NOTE

We are not alone anymore …I edit fourmagazinesandmostof themareattachedtoevents–andIamvery

passionateaboutallofthem.WhenwelaunchedtheSMMEOpportunityRoadshowearlierthisyear,Ijustknewthatthiseventwouldalsofinditswayintomyheart,

butlittledidIknowhowitwouldalsobecomesomuchmorethanthat.

BeingintheprocessofregisteringmyownSMMEatthetimewelaunchedtheevent,attendingtheroadshowsinDurban,Joburg,PortElizabethandCapeTownmeantsomuchtomeintermsoflearning.Iliterallywentonmyownpersonalroadshowaswemovedfromcitytocity.ForachangeIwaspartoftheaudience.

Soconsiderthisnotefirst-handexperiencefromanSMMEowner.AndIthinkthat’squitecool.SowhathaveIlearnt?Formethemostimpressiveofallwasthefactthat,althoughthebasicthemeswerethesame,thecontentvariedineverycity,whereourtop-notchspeakersfromthedifferentregionsbroughttothepartyimmaculatepresentationsraisingtheburningissuesSMMEowners(suchasmyselfnow)grapplewithonadailybasis–andpresentingsolutionstoboostSMMEgrowthinSA.Ontopofthat,ourexpertsalsopresenteduswithsoundadviceandinformationthatisotherwisehardcomeby.IhavealsolearntmuchaboutwhatmyfellowSMMEownersareexperiencingandthisinturnhaspreparedmeforchal-lengesthatIotherwisewouldnothavethoughtabout.

TheesteemeddelegatesIspoketoconfirmedthis,referringtotheeventasanimportantplatformforSMMEownerstosharetheirexperiencesandlearnfromeachother.ThekeymessagewasthatSMMEbusinessownersfeltthat,byattendingandhearingthestoriesofothers,theyrealisedthattheywerenotalone.Afterall–accesstoinformationandmarketsare(besidestheissueoffunding),thetwobiggestissuesthatweasSMMEownersface.

So,asthecustodianofOpportunitymagazine,howimportantdoIratethisnewprojectofmine,inthebiggerschemeofthings?NotforgettingthatSMMEscontributemorethan45%towardsSouthAfrica’stotalGDP–andaround60%ofallSouthAfricanworkersareemployedbysmallbusinessesemployingfewerthan50people–thismeansthatasignifi-cantportionofallnewjobsarecreatedbySMMEs.Inthelightofthis,theSMMEOpportunityRoadshowplatformhasanenormousroletoplayinassistingagroupofpeopledesperatelyseekingknowledge,informationandsupport–and,ultimately,inassistingthemtomovefromSMMEtotheJSE,wheretheycanmakeanevenbiggercontributiontooureconomy.

TheSouthAfricanunemploymentratewas24.2%inDecember2014andgrowthinGDPby2015wasforecastat2.1%,and2.7%by2016.Thisisanincreasedchallengeintermsofjobcreation.Corporatesandlargebusinessesareunabletocreatethesejobs–thischallengebringsopportunityforallofusintheSMMEsectorand,infollow-upconversationswithsomeofthepeopleInetworkedwithinthevariouscities,thatisoneofthemainthingstheyhavecometorealisethroughattendingourevents.

ConsideringthatthecontributionofSMMEstojobcreationandeconomicgrowthinSouthAfricahasbeenignoredandunderestimatedfortoolong,thetimeforexposureinthissectorhasfinallycome–intheformoftheSMMEOpportunityRoadshow.

Aswe’rewindingdown2015–andthink-ingaheadaboutthepotentialopportunitiesfor2016–allIhavelefttosayisthat,ifthelauncheditionoftheSMMEOpportunityRoadshowhasmadesuchadifferenceinmylife,Ican’twaittoattendnextyear’sevents.

Lookingforwardtoseeingyouallthere!

Lindsay KingEditor: Opportunity


Continental Cars

www.continentalcars.co.za

SheerDriving Pleasure

Continental Cars is everything a BMW Dealership should be and more. When entering our state-of-the-art premises, you’ll be greeted by friendly staff ready to assist with all your BMW requirements. Whether it’s sales or service, test-drives or tailored fi nance, parts or professional advice, look no further than Continental Cars. We are an Approved BMW Dealer and use only Original BMW parts in servicing and repairs. This ensures quality and gives you a 2 year warranty.

BMW SALES, FINANCE, PARTS, SERVICE AND ACCESSORIES.

WE GO OUT OF OUR WAY IN EVERY DEPARTMENT.

Continental Cars Ring Road, Greenacres, Port Elizabeth, Tel. 041 502 2200www.continentalcars.co.za

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Tumelo Mothotoane, SABC TV News and current Affairs AnchorInopeningremarkstothedelegates,TumeloMothotoane,SABCTVNewsandcurrentaffairsanchor,advisedthemtoneverunderestimatehumblebeginnings.“Humblebeginningsassistonetolearntomakethemostoutofnothing.Youarethereforemoulded toworkwellunderpressureandhaveaholisticunderstandingofyourfieldofwork. My experience as a presenter at Soweto TV’s community TV Station helped melearn tomulti-task,ad liband improviseunderpressure.Today, Iamable tounderstandbroadcastingatanationallevelbecauseofthelessonsIlearnedatacommunityTVstation,”Mothotoanesaid.

She said the world is hungry for bold people. “Learn to challenge the status quo andoccupyunmarkedterritory.WhenIstartedworkingfortheSABC’sCurrentAffairsdivisionattheageof20,peoplethoughtIwascrazyandwonderedifIwouldfitinasa ‘child’. IhadtakenadecisiontochallengethementalitythatyoungSouthAfricanscannotengagein high-level discussions around pertinent issues of the world, such as politics and theeconomy,”shesaid.

Click here for full presentation

Dr Pierre Voges, Mandela Bay Development Agency (MBDA) The role of SMMEs in the Rejuvenation of Nelson Mandela Bay’s EconomyVogestoldthedelegatesthat,whentheyimaginedthefuture,thepossibilitieswereendless.TheMBDA,hesaid, isacompanyestablishedby theCity toengineer the future, “sowelook forgroundbreakingbutsustainablesolutions.SMMEsneed toempower themselvesinordertoparticipateinourcorebusiness–planningandfeasibilitystudiesandleadingfinalimplementationofprogress.Thatiswherethevalueis–notingrade1or3intermsofCIDB,”hesaid.


Wilfred Mbuvha, Head of Credit for Small Enterprise, Standard Bank How to become credit readyMbuvhaaskedwhatbanks/lenderslookforwhenconsideringanapplicationforabusinessloan.Financingasmallbusinesscanbechallengingforlendersandentrepreneurs,hesaid.“Creditisbutonecomponentofabusiness’financiallife.Timingiscritical,andborrowingbeforeabusinessisreadyforcreditcandomoreharmthangood.Itcanendupwreckinganentrepreneur’sdream,”hesaid.

He listed the following common credit lending terms:•OwnContribution-Thebankrequiresunencumberedcontributionbytheentrepreneur.•Collateral

Somethingpledgedassecurityforrepaymentofaloan.•Repaymentability-Theabilitytoservicedebtaspertheconditionsoftheloanapproved.

The five Cs of credit are:1.CharacterReferstotheborrower’swillingnesstomeethis/herloanobligations:•Personalcharacterreferstoyourrecordasaborrowerandbusinessperson.•Thebusiness’financialcharacterisalsolookedinto.•Lenderswanttoknowthatyoudealwithanymistakesresponsibly,thatyouarehonestwith

yourselfandothersaboutthemistakes.•Thisisallaboutyourwillingnesstomeetyourobligations.•Wealsolookatthequalityofmanagement,successionplanning,etc.2.CapacityCapacityreferstodeterminingyourabilitytorepaytheloan.

SUMMARY OF PRESENTATIONS

➤SMME Opportunity Roadshow Port Elizabeth

http://www.smmesa.co.za/news/Presentations/dr-pierre-voges-16505.html

•Lendersusecashflowanalysistoanswerthesequestionsandconsideranumberofratios,suchasthedebt-to-income.

•Cashflowisthesinglebiggestproblemareaforstart-upandsmallbusinesswhenapplyingforcredit.

•Cashflowhasadirectrelationtohowmuchalenderwillgiveyouandonwhatterms.

3.CapitalCapitaldescribesyourinvestmentinthebusiness:•Theywillaskhowmuchofyourownmoney,timeandenergyyouhaveinvestedinthe

businesssofar,andhowmuchyouareplanningtoinvestgoingforward.•Successfulentrepreneursnolongerworkeighthoursaday–theywork24/7.•Capitalinfluencesthepricealenderwillcharge,thatis,theinterestrateontheloan.

4.ConditionsConditionsrefertotheexternalenvironmentalconditionsinadditiontoconditionsthatareinternaltoyourbusiness.Whenalenderconsidersyourapplicationforcredit,heconsiders:•Competitionyouwillface.•Currenteconomicconditions.•Suppliersandalternatesuppliers.•Locationandindustryinwhichyouoperate.Istheindustrygrowing?Isthetargetmarketover-

tradedordominatedbypowerfulcompetitors?•Legislativerequirements.•Laboursupply.•Istherestrongenoughdemandforwhatyouoffer?•Lenderslookatthestrengthsandweaknessesofyourbusiness.•Canthebusinessrealisticallydowhatyousayitdoesandcanitmakemoneyintheprocess?

5.CollateralCollateraliswhatthelendercantaketowardssettlingthedebtif,foranyreason,youcannotrepaytheloanasagreed:•Notallformsofcreditrequirecollateral.•Cashorlong-termdepositorbluechipsharescanbepledgedascollateral.•Asuretyshipbytheownerofthebusinessneedstobesigned.•Collateralwillnotapplyinallcases.•Itisalsoreferredtoasasecondarysourceofrepayment.•Normalbusinessrevenueisreferredtoastheprimarysourceofrepayment.


Nandipha Vena, Regional Manager, Eastern Cape National Empowerment Fund Access to financeTheNationalEmpowermentFundVenaexplainedthattheNEF(establishedbytheNationalEmpowermentFundActNo105of 1998), is a driver and a thought-leader in promoting and facilitating Black economicparticipation through the provision of financial and non-financial support to Black-empoweredbusinesses,aswellasbypromotingacultureofsavingsandinvestmentamongBlackpeople.

She said the challenges / market failures facing black business were:•Limitedowncapital.•Accesstoaffordablecapital.•Limitedmanagementskills,includingfinancial,marketingandtechnicalexpertise.•Lackofaccurateandreliablefinancialinformation.•Poorqualityofbusinessplans.


SMME Opportunity Roadshow Port Elizabeth ➤

•Lowerbargainingpowerandstrongcompetitionfromestablishedbusinesseswithentrenchedmarketdominance.

•Lackofaccesstolocalinternationalmarkets.

NEF funding criteriaVenaexplainedthateachapplicationisassessedintermsofthefollowingcriteria:•Minimumpercentageofblackownershiporinterest.•Blackwomenempowerment.•Blackmanagerialandoperationalinvolvement.•Commercialviabilityofthebusiness.•Specificproductcriteria.•Jobcreation.•Geographiclocationofthebusiness(rural/urban/disadvantagedareas).•Communityinvolvement.•Compliancewithalltherelevantlawsandregulations.•Returnoninvestment.•Thepossibilityofco-fundingwithanotherpublicorprivatesectorinstitution.

Successes to date•OverR2-billionapproved.•MorethanR1.5-billiondisbursed.•OverR700-millionworthofapplicationspresentlyunderevaluation.•Over20000jobssupportedandcreated.•39%ofwomen-ownedbusinessesfunded.

MentorshipShesaidtherewasongoingmentorshipsupportacrossthecountry.“Globally,30%ofstart-upsfailinthefirsttwoyears,andlessthan50%survivebeyondfouryears.Weneedmentorsacrossthecountrytohelpbusinesseswithexpertadviceonstrategyandoperationsandtoimprovethechancesofthebusinesssucceeding.ThisshouldbeprovidedforfreetoNEFinvestees.”


Malesela MakgamathoDepartment of Labour / Unemployment Insurance Fund (UIF)MaleselaprovidedsomebackgroundontheUIF:•Providesdefinedcontributions&benefits.•GovernedbytwoActs(UIA&UICA).•ProgramwithinDepartmentofLabour.•AccountingAuthority(DG)Delegates.•Purpose:Toprovideeffectiveshort-termunemploymentinsurancetoallworkerswho

qualifyforunemploymentandrelatedbenefits.•ManagedbyUIC&AnswerabletoUIFBoardandParliament.

Theobligationsof theFundwere tomaintainadatabaseofall employees,monitor riskexposure and ensure financial viability, determine contribution liability of employers, aswellastocontrolandadministertheapprovalofbenefitclaims.Theobligationsofemployersweretoregister,declareemployeedetailsandpaycontributionstoSARSortheFund.

There are different ways to register with the UIF•1.Bye-mail:[email protected]•2.Sendingformsthroughthepostalservice:UIF,94ChurchStreet,Pretoria0052

P.O.Box1851,Pretoria0001



http://www.smmesa.co.za/news/Presentations/nandipha-vena-16501.html

mailto:[email protected]

•3.RegisteringataLabourCentre.•4.UIFwillcreateauniquereferencenumberanditwillbeforwardedtoyou.

UIFDeclarationsmustreachtheFundonorbefore7thofeachmonthTypes of Declarations•Electronicallyusinge-mail.•ElectronicallyusingFTP.•U-Filing.•(ManualUI-19s).

“EmployersarerequiredbylawtodeclaretotheFunddetailsoftheirworkers,suchastheirfullnames, IDnumber,periodofserviceand their remuneration (salary).AnychangeofdetailsshouldbeforwardedtotheFundwithinsevendaysaftertheendofeachmonth.ItshouldbenotedthattheUi-19shouldnotbehandedtotheworkersfollowingterminationofservice,butbesubmitteddirectlytotheUnemploymentInsuranceFund,”saidMalesela

Advantages of complying•ImprovementintheTurnAroundTimeforbenefitclaims.•ImprovementintheTurnAroundTimeforcompliancecertificateapplications.•Reductioninfraudulentactivities.

U-Filing“U-Filing,”saidMalesela,“isasecureonlinesystemdevelopedbytheUIFforemployerstosubmittheiremployeesinformation(declarations)andtopaycontributions.”

Benefits of U-Filing•Accessible.•Easytouse.•Secure–PasswordControlled/Confidential.•COST–It’saFREEonlinesystemofferedbytheFund.•Bulkuploadingandpaperlessdeclarationsubmission–bothareinstantandreliable.•LegislativeCompliance–Declare&Payments– returns canbedone simplyand

convenientlyonline.•Updaterecords.•AccurateUIFcontributionsandreconciliations–securepayments(debitorderandcredit

pushviainternetbanking)andfaster.•Processingtimeshorter.•Validation–builtinthesystem.•E-mailnotifications–onamonthlybasistheemployer/clientwillreceiveane-mail

notificationtoremindthemonthespecificdatethattheirreturnsmustbepaidonorbeforethe7thofeachmonth.


Kenneth Nel, New Business Development Manager – IpcowebBuild your Business OnlineNeltolddelegatesthatifpeopledonotknowofyourexistenceasabusiness,thentheycannotdobusinesswithyou.

“Peoplesearchbyproductideaorserviceandnotcompanyorbrandnameifyouarenew.YoumusthaveawebsiteandFacebookpresencethatisengagingandlooksgood.Yoursiteindexmustbecorrect.YoumustactivateGoogleanalyticsandwebmastertoolsinordertothrive,andyouneede-commerceinordertotakemoney,”saidNel.

Hesaiddelegatesshouldalwaysaskthemselvesthesethreequestionsbeforeembarkingonmarketingtheircompany:



http://www.smmesa.co.za/news/Presentations/gerrit-davids-15689.html http://www.smmesa.co.za/news/Presentations/malesela-makgamatho-15690.html

1.Areyoufamous?2.Whatdoyouthinkyousell?3.Whatdoesthepublicthinkyousell?

“TheanswertoQuestions3canbeobtainedfromyourcustomerswhentheycallin,”hesaid.Headdedthatdelegatescouldaccessfurtherinformationonlinethroughhiscompany’swebsite,atwww.ipcoweb.co.za.


Tshidi Mahlangu, SAA Country Manager, SMME Travel SolutionsMahlangusaidthatsomeofthefactsaroundSMMEbusinesseswere:•SMMEshavebecomeafamiliarsightontheRSA’seconomiclandscape.•GovernmentannouncedtheirprioritisationandadvancementofSMMEbusiness–since

itisthecatalysttoachievingeconomicgrowthanddevelopment.•SMME’scontributesignificantlytotheGDP.•Theymostlydobusinessdomestically.

SAA’s primary routes included six continents, 28 countries and 39 destinations•Domestic:

a)CapeTown. b)Durban. c)PortElizabeth. d)EastLondon.

The benefits offered to SMMEs include•Upfrontdiscounts.•Relaxedfarerules.•Rebookingandchangeswaiver(providedthesamebookingclassisbooked).•DedicatedAccountManagement.•ProvisionforMonthlyAccountStatement.•DiscountsofferedfromApril2015–March2016.•Onlinebookingoftickets,orSMMEscanapproachSAA’sCTO’s.•Checkinonlineandchooseyourdesiredseat.•BidyourwaytoBusinessClass.•JointheVoyagerprogramandearnmiles.


Patricia Dlamini, CEO of UDDI (Uitenhage Despatch Development Initiative)LeadingtheregenerationoftheUitenhage&Despatch&thebroaderNelsonMandelaBay,DlaminisaidthatthelevelofentrepreneurshipinSAisoneofthelowestintheword.SouthAfricaisranked 27th of 59 countries in the primary measure of entrepreneurship used by the GlobalEntrepreneurshipMonitor(GEM).“Almost4400smallbusinessescloseddowninSAduetothelackoffundingandalmost60%ofSMME’sareatBusinessSophisticationModel(BSM1-4)andareclassifiedassurvivalists,informalandverysmall,”shesaid.The2012GlobalEntrepreneurshipMonitor(GEM)surveyindicateddeclininglevelsoflocalentrepreneurship:•Fromareported9.1%in2011to7.3%lastyear.•Inaddition,thestudyrevealedlowerperceivedopportunitiesforSouthAfrica(39%),

comparedtoSub-SaharanAfrica’saverageof70%.

Shecalledforaparadigmshiftinhowtogrowtheeconomyandfocusspendingtodecentjobopportunitiesthroughenterprisesupportacrosspublicsectorgoodsandservicesvaluechain.“TherevitalisationoftownshipeconomyisrootedintotheNationalDevelopment



http://www.ipciweb.co.za/

http://www.smmesa.co.za/news/Presentations/kenneth-nel-16502.html

http://www.smmesa.co.za/news/Presentations/tshidi-mahlangu-15693.html

Plan,whichemphasisesthat90%ofthenew11millionjobstocreatein2030,willcomefromsmall,microandmediumenterprises(SMME),”Dlaminisaid.

Therewerefouridentifiedpillarstoleverageeconomicgrowthandtownshiprevitalisation:•Economictransformation.•Spatialtransformation.•Modernisationoftheeconomy.•Re-industrialisation.

The strategic pillars of support were1.Economicinfrastructure

•Land;Industrialparksandbusinesshubs.2.Financialsupport

•Partnershipfunding;Bridgefinance;CSI;Venturecapital.3.EntrepreneurshipDevelopment

•Skillstraining(bothhardandsoftskills).•Incubation&incubationprogrammes.

4.Marketsupportandcompetitiveness•NetworksandpartnershipsamountsSMMEs;qualityandstandards;marketaccess.

5.Marketaccess•Competitivenessimprovements;preferentialprocurement;localproduction(rulesof

origin);bulkbuyingandidentificationofpotentialornewmarkets.•Creatingverticalrelationshipswithlargerconsumerindustries.•Creatinghorizontalrelationshipswithcompetitorstodojointprocurement.

6.Regulatory / policy review to enhance •LocalisationofinputstotheStrategicPriorityProjectsthroughaconcentratedsupplier

development,incubationandcapacitybuildingprogramme.•Regulationthatseekstoring-fencecertaineconomicactivities(suchasretail)forlocal

entrepreneurs.•Breakdowntheverticalownershipofeconomicactivitiesthatdominatetownshipeconomy.

The UDDI development agenda included•Education–NelsonMandelaBayScience&Technologysector;teacherdevelopment;open

innovation.•Unemployment–unemployedyouthandgraduateprogrammes,skillsdevelopment;

SMMEinformationprogrammes.•Povertyalleviation–supportexistingSMMs&co-ops;assistnewSMMEs,skillsand

enterprisehubsintownships.

The UDDI Enterprise Development Model comprised of 1.Capacitybuildingandclustering.

•Informationandawareness.•Businessandtechnicalskillstraining.•Businessregistrationandgovernance.

2.Developmentnodesandclustering.•Sectordevelopment.•Valuechainpackaging.

3.Opportunitiesandmarketlinkages.•Networkingsessions.•Exhibitions.•Tradefairs.•Marketing.




http://www.smmesa.co.za/news/Presentations/patricia-dlamini-16503.html

Yogen Naidoo (Senior Manager: Supply Chain Services at Transnet)Abdool Lutchka (Senior Manager: Transnet Freight Trail)NaidooandLutchkasaidTransnetSOCLtd(“Transnet”)isfullyownedbytheSouthAfricangovernmentandoperatesasacorporateentity.

TheypointedoutthatSection217oftheConstitutionAct108of1996andsection51(1)(a)(iii)ofthePublicFinanceManagementAct1of1999(“PFMA”)stipulatethatTransnetmust have and maintain an appropriate procurement and provisioning system which isfair, equitable, transparent, competitive and cost-effective.

“ProcurementinTransnetisgovernedbyTransnet’sSupplyChainPolicyandProcurementProceduresManual(“PPM”)whichgiveeffecttothestatutoryrequirements.Thisensuresthat Transnet gets value for money in the procurement of Goods and Services whilstaddressing the economic imbalances that have been caused by unfair discrimination inthepast,”theysaidintheirpresentation.TheGovernmentoftheRepublicofSouthAfrica,throughtheDepartmentofPublicEnterprise,isthesoleshareholderofTransnet.

ReferringtotheOpenBidPolicy,theysaidthisprocesswasacompetitiveonewherethegeneralpublicisapproachedthroughTransnetFreightRail’swebpageandprintmedia.

“AllinterestedpartiesaregrantedanequalopportunitytobidforTransnet’sbusiness.Oncethebidhasclosed,thewinningBidisselectedbymeansofatransparentevaluation,adjudicationandrecommendation/approvalprocess.

TheSupplierDevelopment(SD)Programme,theysaid,isaninitiativeoftheDepartmentofPublicEnterprises(DPE),supportedbyTransnet.

“TheaimoftheSupplierDevelopment(SD)Programmeistoincreasethecompetitiveness,capability and capacity of the South African supply base. In addition, SD has its rootsgrounded firmly around the transformation of South Africa and the empowerment ofpreviouslydisadvantagedindividualsandenterprises.”

TheyexplainedthattendersareissuedrequiringbidderstocommittoSDinitiativesasapercentageofbidvalue.Onlybiddersthatmeetthepredeterminedpercentagewillprogresstothenextstepoftenderevaluations.

On strategic commoditieswhere capital investment ishigh, longer contract termsareofferedinordertoattract‘newentrants’


Xolani Qubeka, CEO Small Business Development InstituteQubekasaidthatsomeofthecurrentprojectsthattheInstituteisinvolvediniscreatingitsowngroceryretailandsupplynetworkinthetownshipsonasemi-franchisebasis.

Thisisanattempttoresolvetheproblemthatlocalgroceryretailersareexperiencingastheycomeupagainstthebigretailersandalsothroughforeignsuppliers.

“We make sure that we put them in the supply chain. We are also creating an autopanelbeatingnetworkforblackentrepreneursinthisfield.Wehopetoroll-outabout20oftheseinblacktownshipsaroundthecountry.Wearealsoinvolvedinagriculturalprojectslinked to renewableenergy.Lastly,weare involved in thecut,measureand train (CMT)programmeinthetextileandmanufacturingindustry,”hesaid.

Qubekasaid that theFreeStateDevelopmentCorporationhascontributedR10-milliontoset-upafactorywherealocalcooperativeownedbywomenisalreadyemployingover150people.

“TheyalsohaveasupplychainagreementwithEdcon,wheretheyarepresentlysupplyingoneline,andtheideaistohaveabouteightlinestovariousretailoutletsinfuture.”


Joe Motshelabola, Provisional Head, Standard Bank, Eastern CapeMotshelabola said that Standard Bank had been around for about 153 years as a bank,addingthat“we’vealwayssupportedSMMEs.Itissomethingthatdidnotstartyesterday”.



HesaidthebankunderstoodthecontributionmadetotheeconomybySMMEsaswellasthejobcreationopportunitiestheyprovide.

“We always try our best to ensure that we refine our products and services to assistSMMEstogrowtheirbusinesses,”hesaid.

Motshelabolasaidroadshowsofthiskindwereveryimportant.“Ithinkthemorewehavethiskindofroadshowthemorepeoplewillunderstandwhothepeopleare thatyoucanengagewithattheendoftheday,iftheydon’tgethelpfromourrespectivebranchesorfrombusinessmanagers”.

Hesaidreachingourgoalsasanationwasajourney.“Itsnotsomethingthatwillhappentomorrow.Thereareawholelotofthingsthatmusthappen.ThemerefactthatwehaveformedtheSmallDevelopmentMinistryisindicativeofthefactthatSMMEshavegotabigroletoplayintheeconomyintermsofeconomicgrowthand,mostimportantly,intermsofjobcreation.”

HesaidStandardBankhadformedalotofpartnershipswithvariousSMMEorganisationsandwantedtohelpcreatemarketsforthem.

“Ithinkit’sveryimportantthatweneedtobeveryclearwhenweestablishbusinesses.Weneedtoknowwhyweareestablishingthesebusinesses.Inmymindit’smoreaboutcreatingwealthforourselvesandit’scriticalat thatpoint tomakesurethatyouget therightadvice.

“Formewhat is important,andthemessageIwould liketogiveto theentrepreneursoutthere,istosaythatmostofthebusinessesyouseetodaystartedsmall.TheHermanMashabasandthePatriceMotsepesofthisworldstartedsmall.Pleasedon’tunderestimateyourself.Youcangetasecondchancetomorrow,sogoodluckandmakesureyoucontinuetoworkhardtotakeyourbusinessestothenextlevel.”


Kenni Gambo, author and motivational speaker, told the gathering that, given SouthAfrica’shistoryandwherewehadcomefromasapeople,“youarenotsupposedtobehere.IfyouknowanythingaboutourhistoryanddidnotfallfromMarsorJupiterinthelast10years, thenyouwouldknowthatallofus inthisroomarenotsupposedtobehere.Youwouldknowthattheproblemsweencounteredinthiscountryprohibited90%ofusinthisroomfrombeinghere,”hesaid.

ButSouthAfrica,headded,hadaknackforsnatchingvictoryfromthejawsofcertaindefeat.“Onasociallevel,ifIweretogotoyourlocationandtoyouraddresstherewouldbesomepeopletherewhowouldbeamazedtoseeyouhere.Theysaidyouwouldnevermakeit.Butguesswhereyouarenow–attheSMMERoadshow,whichisbeinglive-streamedworldwide,”saidGambo.

Regardinghistheme(“MovingyourSMMEtotheJSE”),Gambosaidthatthiswasentirelypossible.“ThereisnoA-Z,andtherearenoeasysteps,buttherearesomesimplethingsthatyou’vegottodorightrepeatedly,consistently,assiduouslyandrepetitiouslyuntilyougetthisthingtoworkforyou.

“Everyoneofussittinghere,assoonasyoupopyourhead into thisworld, there isacertainsetofcircumstancesandchallengesthatarearrayedagainstyoufromtheget-go–assoonasyoupopintotheworldthereissomebody,somewherewhofeelsitishisdutytostopyourmarchtothisSMMEconference.WhenIwasbornmymotherwastoldIhadyellowjaundiceandIwasputintoaneon-litroomfor21daysand,thoughImayhavebeenluckytohavebeenbornonmybirthday,ImissedmyfirsthomeChristmas,”heremarked.

Hesaidno-onehad“asmoothsail”inlife,“butwearenowinacountrywhereopportunityhaspresenteditselfandonethingIhavedecidedtodoistoalmostforgetandplacethepastwhereitbelongs–therewereenoughyearsspentbypeopletryingtoholdmeback,notonlyinSouthAfricabutallovertheworld.Everybodyhadsomethingagainstsomebody,”saidGambo.




GALLERY


[email protected]

0861 843 633 (0861 THE NEF)

A black woman’s place is at the forefront of the economy

At the National Empowerment Fund (NEF) we have found that black women make the best entrepreneurs because they remain focused on growing and safeguarding their businesses, whatever the odds.

That is why through its Women Empowerment Fund the NEF is determined more than ever to grow the volume of businesses that are owned and run by black women. These must have a minimum of 51% black-woman-ownership, as well as operational involvement by black women both at managerial and board levels. To the daughters of the soil, to the mothers of the nation, your time is now because you are the rock, the voice bursting to be heard, a movement

for change and progress, a force for development and growth.

From R250 000 to R75 million the NEF Women Empowerment Fund can help make your dream become a reality. Whether it is for start-up, expansion, franchising, procurement, rural and community development, listing on the JSE or its junior Altx markets, equity transformation or for greenfields projects, the NEF is the financier of choice for black women in business. This we do because to fund a woman is to fund a nation! Come to the funder with a soul.

NEF Women Empowerment Fund

[email protected]

0861 843 633 (0861 THE NEF)







[email protected]

0861 843 633 (0861 THE NEF)







GALLERY


GALLERY



GALLERY

Transnet Freight Rail, the largest of Transnet’s Operating Divisions, transports bulk and containerised freight along the approximately 20 500 route kilometre rail network, of which about 1 500 kilometres comprises heavy haul lines for export coal and export iron ore. The network includes 3 928 km of branch lines. The network and rail service provide strategic links between ports and production hubs and is connected with the railways of the SADC region thus enabling Africa Trade – Transnet Freight Rail, Railing South Africa forward.

T T@ReliableTFR ransnetFreightRail transnet -freight- railransnetFreightRail transnetfreightrail

Transnet SOC Ltd RegTransnet Freight Rail is an Authorised Financial Services Provider (FSP 18828) Tel: 0860 690 730

Transnet Freight Rail is a division of No: 1990/000900/30www.transnetfreightrail-tfr.net

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