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BY NABELAH FREDERICKS

SINCE re-opening its doors forapplications for nance two monthsago, the National EmpowermentFund (NEF) has already received 85requests from black entrepreneurslooking to get a slice of the R950million available in funding.The nancier, which ran shortof funds last year, was throwna life-line earlier this year afterbeing forced to put a temporarymoratorium on applicationsand postpone the opening of aNorthern Cape ofce.

In addition to the newapplications, NEF spokespersonEmmanuel Mohlamme saysthe fund has also received 462new enquiries.

We have witnessed analarming response from potentialentrepreneurs which conrms

the need for developmentfunding for black entrepreneurs,says Mohlamme.

The enquiries and applicationshave come mainly from smallbusinesses requesting start-upfunding and expansion nance.

The applications are at presentin various stages of approval,with some in pre-screening,while others are still undergoinganalysis and due diligence.

Although we have receivedproposals and requests for fundingsince the moratorium was lifted,there have been no disbursementspost the moratorium,says Mohlamme.

He assures business ownersthat the funding criteria andapplication process will remainunchanged and that the NEF islooking to increase the number ofapplications that land on its desk.

Capitalised by the governmentin 2005 to the tune of R2.4billion, the fund was established

to provide nance to viable blackbusiness owners that promoteeconomic growth.

Recently-appointed actingchairman of the NEFs board oftrustees Rakesh Garach says theagency was compelled to put a holdon applications while negotiationswere under way with theDepartment of Trade and Industry(DTI) and the National Treasury.

Now that we are condent andcertain that new capital is on thehorizon, the NEF is comfortableto re-open funding for newtransactions, says Garach.

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NEF opens for lending again

Despite being endorsed byPresident Jacob Zuma at theopening of Parliament in February when he said that the NEFwould continue to provide nanceto black-owned businesses noallocation was made to t he agencyin this years budget. This led touncertainty over future funding,which prevented new deals frombeing written.

The situation now looks to beon the mend. Mohlamme saysthe agency would be makinganother application for furthercapitalisation when applications

for the Medium-Term ExpenditureFramework (MTEF) open laterthis year.

The MTEF is a rolling three-yearperiod which the government usesto budget for the countrys needs.

The R950 million currentlyavailable represents the balanceof the DTI approved facilitiesthat are yet to be disbursed.The board is condent that theliquidity requirements of the NEFare close to being addressed,says Mohlamme.

Other than the NEFsapplication for recapitalisation

through the MTEF, the agencyis also exploring other means tocapitalise the fund. Following thedisbursement of the last of theinitial capital of R2.4 billion in2010, the NEF had been nancingitself through proceeds derivedfrom dividends and interestfrom investments as well as theproceeds of a sale in 2007 throughthe Asonge Share Scheme, theNEFs holding in the MTN Group.

Business owners can apply fornance at the NEFs nine ofces. Visit www.nefcorp.co.za for

more information.

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Entrepreneur takeson bank in court Page 3

Port Elizabeth ownersup in arms over malls Page 4

Is your businessviable or not? Page 11

Miles Kubheka drew inspiration from a local TV advert character and now runs the successful chain of mobile restaurants named after the TVcharacter, "Vuyo". Read more about his story on page 5.

Entrepreneur breathes life into TV advert

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page 2 - July 2014 SMALL BUSINESS CONNECT

Develop skills with simulation

BY ROBIN STEAD

IF you were asked to list thekey skills needed for a youngperson to become establishedin business, what would yourtop ve be?

Personally, I wouldselect literacy, numeracy,communication, computerskills and business orentrepreneurship skills. In usingthe term skills I am deliberatelyfocusing on practical applicationrather than head knowledge.

If young people are tobe equipped to becomeentrepreneurs, to enter theworld of business and to runsustainable enterprises, we needto improve the effectivenesswith which business skills areacquired. I would like to suggestthat computer technology canbe an effective tool to fast-trackbusiness skills development.

We tend to think thatcomputers are good at handlingnumbers managing onlineexams, printing reports orcommunicating results.

While this may be true, in thelast ten years a sleeping gianthas arisen with the potential toadd a new dimension to skillsdevelopment. Computer gameshave moved from Tic-Tac-Toe in

the 1950s, through Pac-Man inthe 1980s, to vast and complexmulti-player games, involvinghundreds of thousands ofparticipants from aroundthe world.

At the heart of every gamelie two elements a simulatedenvironment (which may beportrayed quite simply, or withpowerful realism) and the gameitself (which sets out the rules).

The scale of the PC gamingmarket (estimates are that it willrake in over R100 billion this

year), tells us that the gamingworld has created a powerfulmodel. Imagine if this modelcould be tapped to drive skillsdevelopment!

Although simulation-basedtraining has been around since2000, its use has largely beenrestricted to the simulation ofcomputer processes.

However, in recent years,simulations have beendeveloped, allowing theindividual to compete withothers online in running avirtual small business. Thismodel introduces the potentialfor realism in the sense thatplayers experience the businessas if it were their own, at a level

that is relevant to them.Imagine the potential

impact if we could have youngpeople sharpening theirentrepreneurial skills in asimulated environment! Robin Stead is the managing

director of SkillWise.

Focusing on success is the cureBY NABELAH FREDERICKS

HIGHLIGHTING the successes ofentrepreneurs rather than theirfailures alone, will help change the

perception of entrepreneurshipand could encourage more

young people to start their ownbusinesses.

So says Christo Botes,executive director at BusinessPartners and spokesperson for theBusiness Partners Entrepreneur ofthe Year awards.

His comments come in thewake of the Youth National andProvincial Labour Market reportreleased in May by StatisticsSA which revealed that of thecountrys 5.4 million young peoplebetween the ages of 20 and 24

years old, only 8.8% are expectedto obtain a tertiary qualication.

Young people see success asbeing a doctor or a lawyer. Theysee entrepreneurship as sellinggoods on a pavement. They dontthink (that) being an entrepreneuris a career option, rather a lastresort when they cant nd a job,says Botes.

He says businesses started asa last resort are usually survivalistbusinesses and normally dontcreate many jobs.. Such businessowners often simply resellexisting products and make verylittle prot.

Asked whether he believedthat entrepreneurship could be

taught, he responded by sayingthat it couldnt really be taught.

But young people shouldbe exposed to it in schools. Youcan teach entrepreneurship,but the inner qualities suchas commitment, ambition and

tenacity must be there becausebeing an entrepreneur is hardwork. You need to know that

you will have to make sacricesand really perform otherwise

your business is doomed to fail,says Botes.

When compared to otheremerging economies, thepercentage of adults who optfor entrepreneurship as a careerchoice remains low in SouthAfrica, he says.

Botes points out that the latestGlobal Entrepreneurship Monitor(Gem) South Africa report reveals

that only a quarter of SouthAfrican youth can be termed aspotential entrepreneurs, in thatthey believe they possess theskills and knowledge to start abusiness and perceive there to begood opportunities in the market

to exploit.It is crucial, he says, for South

Africa to bridge the gap betweenthe entrepreneurial aspirationsof youth and the reality ofestablishing a business.

Intentional entrepreneursare an important stage in theentrepreneurial pipeline as astrong association exists betweenentrepreneurial intentions andactual entrepreneurial behaviour,and highlights why it is necessaryto equip the youth with the righttools and knowledge to embarkon an entrepreneurial venture,

he says.He adds that many young

people think that entrepreneurshipis all about innovation, but thatthis is not always the case.

You can start a business andcontribute a service that is needed

and it does not have to be aninnovative business.

Young people, he says, alsoneed to know that becausestarting a business in the retail orhospitality sector has low setupcosts, it is also saturated.

Everyone wants to sell food orbuy goods and sell (them). It hasbecome overtraded, says Botes.

However, he believes theresa scarcity of services on offer inthe manufacturing and serviceindustries and despite theirhigher setup costs he believes

young entrepreneurs should

rather consider entering thesetwo sectors. But he emphasisesthat entrepreneurs should onlyconsider these two sectors afterconducting thorough researchand after having acquired thenecessary skills.

Young people should see entrepreneurship as a career option, not as a last resort when they can't nd a job.

OPINION

Privilege to serve young ownersBY VUYO MABANDLA

YERSHEN Pillay describes histime so far as the nationalexecutive chairperson of theNational Youth DevelopmentAgency (NYDA) as a privilege.

Its not surprising consideringthat his role is to help run someof the countrys biggest youthentrepreneurship projects.

Since his appointment last year, the agency has investedR25 million in grant funds to

youth-owned enterprises.The NYDA Grant Programme

invests between R1 000 andR10 000 in qualifying youth-owned co-operatives.

The fund is distributedthrough the agencys various

national branches. As of last yearthe agency has disbursed 657support grants.

The agency also providesuseful information and accessto existing governmentdevelopment programmes.

This is Pillays second year

as the agencys national boardadministrator and he co-managesthe organisations multi-million

rand development programmes.He grew up in Lenasia South,

Johannesburg, but moved toCape Town where he went onto study for a degree in SocialScience at the University of CapeTown (UCT). After he graduated,Pillay worked as the universitys

student development ofcerbefore he moved to work for thegovernment.

While studying at UCT, Pillayrealised he had a passion for youthdevelopment when he joinedthe Young Communist League,serving as its then nationaltreasurer, before becoming itschairperson.

Since then I have alwaysbeen preoccupied with thedevelopment of our country andsociety at large, he says.

His experience in researchand management of studentaffairs at UCT helps him toliaise better with private andgovernment organisations ondirecting the agencys nationalpolices and strategies on youth

development. In 2012, heserved as the agencys nationaldeputy chairperson before beingappointed to his current position.

He plans to assist more youngpeople through initiatives run bythe agencys programmes.

Our youth need to be more

involved in service, sport andrecreation in order to becomehealthy, valued, contributingmembers of society, he explains.

This year Pillay co-managesthe R10 million SolomonMahlangu scholarship fund whichfacilitates bursaries to youthliving in rural areas.

The scholarship has assistedover 250 learners during 2014alone. On the other hand thegrant programme providesboth non-nancial and nancialsupport to survivalist and start-up businesses, says Pillay.

The NYDA recently partneredwith the Industrial DevelopmentCorporation (IDC) and the SmallEnterprise Development Agencyto provide over R2.7 billion in

funding for youth entrepreneursthrough loan nance andbusiness vouchers.

Pillay believes the move willhelp him direct the agencys goalof creating at least ve million

jobs for youth in a period of20 years.

Yershen Pillay

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www.SmallBusinessConnect.co.za July 2014 - page 3

Entrepreneur takes on bank BY NABELAH FREDERICKS

LOSING his 67 year-old printingbusiness did not stop a Gauteng

business owner from ghting theproverbial Goliath in the form ofSasn Bank, step-by-step.

Damon Greville lost hisbusiness in 2012 after the bankforced its closure and sold off allits assets.

He decided to move on, butwhen he received a summons last

year stating that the bank wasplanning to forclose on his home,he instead chose to ght backand is now representing himselfin court.

Greville bagged his biggestvictory to date when the judgereferred his case to trial lastmonth, after the businessmansdefended himself against the casepresented by the bank.

The businessman alleges thatthe bank had securitised his loanand therefore had no legal right tocollect on the debt.

Securitisation is a processwhere illiquid assets such ascashow or contract rights (forexample, loan agreements) aresold to third-party investors. Inthis process the bank loses all titleand right to the loan.

He further alleges that Sasnnow owe him R600 000 and aretrying to foreclose on his housefor outstanding debt they claim

amounts to R333 000.I heard about securitisation

a few years prior to losing mybusiness and asked Sasn whethermy loan was securitised and aftergoing back and forth with them Iwas told that it was not, he says.

However, when he requested

a reconciliation of accounts todetermine whether there was anymonies due to him, no informationwas forthcoming.

Eventually, in court documentslodged by the bank he says hesaw that his certicate of balanceheld the name of a securitisationcompany, and not the bank, as thecreditor, thereby, contradictingthe banks response that his loanwas not securitised.

If the bank does not request

a trial date, I will go to the courtand request one myself, saysGreville, who plans to recover themoney he lost as a result of thebanks actions.

He says the bank sold off hisassets for about R500 000 ofwhich his initial purchase pricewas around R8 million.

Greville started his love affairwith the printing industry when hedropped out of university ,where

he was pursuing a law degree inthe mid 1970s, to join a printingcompany on a friends referral thathe could make money.

He later founded his ownprinting business in the 1980s andeventually merged with AdvancePrinting Company in 1984, which

had been established since 1945.In 1994 the shareholders

retired and Greville bought a

majority shareholding and tookover the business.

The business then took offand grew so much that, whenthe premises the business wasrenting was put up for sale in2008, Greville decided to buythe property.

Sasn, at that stage was oneof the printing businesss clients,as it was printing the banks loan

agreements, it seemed the logicalchoice when applying for a loan.

I pitched the idea to them andwas told that they dont nancexed property, but the next day Ireceived a call from them sayingthat they could work somethingout, says Greville.

A R1.5 million loan wasgranted on condition that he signhis plant and machinery overas surety.

I thought it would make

better sense to sign the propertyas surety, but they said theybelieved it would be easier to gettheir money back by selling off t hemachinery instead of the propertyin the event

I was not able to makethe payments.

Never did I ever think that thiswould be the case, he says.

He adds that at the time hetook the loan, he had no debt,apart from monthly creditors,over a million in the bank and thebusiness was growing.

However, things took a turn

for the worse when in 2011 helost his overdraft with his bankbecause lending criteria were

being tightened.Sasn then foreclosed and sold

off his plant and machinery, as wellas the building they had nanced.

When they sold off my assets,I lost my business and had toretrench 24 employees who I wasunable to pay out.

One of my employees had beenwith the business for 60 years atthat stage, he says.

He says when all this is over,he might start a business again.

Despite his victory he sayshe wouldnt advise the averageperson with no legal backgroundto represent themselves in a courtof law.

Its been a difcult two years.I have spent most of my timeresearching case law and statutorylaw, having some help from myson, brother and a friend who areall lawyers, says Greville.

In response to Grevillesallegations, Sasnscommunications manager CathrynPearman responded saying thematter was still sub-judice.

She further added that theSouth Gauteng High Court did notrule in Grevilles favour or make aruling against Sasn.

No ruling regarding themerits was made. Sasn never

securitised the loan which Grevilleguaranteed nor did it liquidate hiscompany. Sasn will pursue itsclaims for recovery of its debt inthe South Gauteng High court inthe normal course, says Pearman.

A trial date has yet to be set forthe matter to appear in court.

Save your biz by knowing your rightsBY NABELAH FREDERICKS

LATELY emails have been doingthe rounds advising consumers tocheck with their credit providerswhether their debt has beensecuritised or not.

It was thanks to a similaremail which he received abouttwo years ago, that Johannesburgbusiness owner Damon Grevillewas able to score a small victoryin the South Gauteng High Court.This, after he allegedlydiscovered that despite his loanwas securitised, litigation paperssent to him were in the name ofthe credit provider instead of thesecuritisation company.

The securitisation of debt wasalso cited as one of contributingfactors to the 2008 GlobalFinancial Crisis.

So, what is securitisation andwhat do you, as the consumer,need to know about it?

Small Business Connect spoketo law rm ENSafricas executiveof banking and nance, ProfessorAngela Itzikowitz.

Securitisation happens when

a credit provider bank or non-bank bundles some of its loanstogether and then sells it to aspecial purpose vehicle (SPV),says Itzikowitz.

A SPV, in laymans terms

is basically a securitisationcompany and is just a shell usedto buy loans by getting investorsto fund the sale of these loans.

On the ip side, the creditprovider is able to get readilyavailable cash and transfer therisk by selling the debt.

In terms of South Africanlaw, there is no requirementfor the credit provider to notifythe debtor of the sale, saysItzikowitz.

Despite this and thoughits not obligatory, most loanagreements contain a cessionclause which advises the debtorthat the debt could possiblybe sold.

But where a debtor requestsinformation on whether a loanhas been securitised, it is thedebtors right to be provided withthis information, she says.

Itzikowitz advises businessowners not to be concernedshould their loan be securitised asthis is standard industry practice.

It is also standard practicefor the credit provider to signan agreement with the SPV to

collect the debt as the agent onbehalf of the SPV, once the debthas been sold.

Despite this it will still bebusiness as usual for thedebtor, who will continue makingthe repayment as stipulated bythe loan agreement.

NEWS

Damon Greville stands outside the South Gauteng High Court where he plans to take on Sas n Bank.

Angela Itzikowitz

"Sas n Bankowes me

R600 000 andare now tryingto foreclose on

my house"

"I had to retrench24 employees,one who hadbeen with thebusiness for

60 years"

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page 4 - July 2014 SMALL BUSINESS CONNECT

New malls force closureof many smaller shops

BY MAX MATAVIRE

SMALL township businesses inthe Eastern Cape that have longbeen serving communities arecrying foul over the introductionof shopping malls and foreigntraders on their trading turf.

Spaza and small corner shop

owners say the big retailers who

come as anchor tenants at mallsin townships have taken businessaway from them. They say theyare too small to compete withthe likes of Spar, Shoprite, OK,Checkers and Pickn Pay.

Zolile Vanani, one such smallbusiness owner who for the past

23 years has been running a

trading store in New Brighton,Port Elizabeth, says his business isstruggling.

In came big retail businessesand foreign-owned spaza shopswho have taken advantage of thelucrative and thriving townshipmarket, Vanani says.

He says big shopping mallsare springing up in the townshipsevery day and are taking awaybusiness from the small guys.

In New Brighton spazas arefamily-owned businesses passedon from generation to generation.This trend is dying, he says.

Vanani says there is now aSomali or Ethiopian spaza shopat every corner in the townships.He admits that the foreign spazashop owners sell their wares atcheaper prices than the locals.

Abdul Mohammed, a Somalispaza shop owner operating inZwide, says although the foreigntraders sympathised with thesentiments of the local businessowners, the solution was forthem to share business ideas andeducate one another, rather thanto attack and loot t heir shops.

We operate as a group or co-operatives and this helps whenwe order stock as we get huge

discounts. We pool our resourcestogether, go buy stock in bulk andthen we share equally among us.This helps so much and we areprepared to share such ideas withthe local small business owners,says Mohammed while packing hiswares onto his shelves.

Foreign small businessowners are also known to givecredit to township residents, andsometimes even to give customersitems like bread and milk for freeif they do not have enough money.

Port Elizabeth Black BusinessForum president LitembaSingaphi, said the advent ofdemocracy has still to benetblack businesses.

It is sad that for blackbusiness people, especially smallbusiness, there is no good storyto tell, says Singaphi, also a

young businessman who hasled numerous protest marchesin support of the rights of smallbusinesses.

However Mohammed saysin Motherwell, a township inPort Elizabeth, foreign tradershave set up 280 shops creating aconsiderable number of jobs.

Our shops get looted everytime, but the next day we go backto work and start from scratch,

he says.Andile Ben-Mazwi, a local

estate agent, also expressedconcern at what he called theworrying mushrooming ofshopping malls in townshipsleaving no room for small blackbusinesses to grow.

NEWS

Port Elizabeth Black Business Forum president Litemba Singaphi

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www.SmallBusinessConnect.co.za July 2014 - page 5

TV ad inspires boerie empireBY YOLANDE STANDER

THE big, big dreamer behind theVuyos restaurant brand is on a

roll, building his boerie empireand assisting entrepreneurs withsimilar aspirations.

About ve years ago, whenformer information technologybusiness owner Miles Kubhekacaught a glimpse of the infamousHansa Pilsner television advert about a character called Vuyowho went from street vendorto boerewors mogul his lifesuddenly changed course.

The ctional Vuyos storyso inspired Kubheka that, afterestablishing that Vuyo did notexist, he knew that he couldbecome the real-life version ofthe jet-setting character withhumble roots.

The reality was, however,far more difcult than a fewhandshakes here and there leadingto a yacht, a private airplane andtrip to space.

I experienced my rststumbling block right from theget-go. It actually took me two

years just to get the trademarkregistered, much longer thanexpected, says Kubheka.

But, the rest is history, and,in December 2012, he opened hisrst restaurant in Braamfonteinalong with a few mobile vendingunits across the rest of the country.

He has also kept customerslining up for Vuyos meals with hisauthentic South African menu hedeveloped by roping in his motherand aunts.

My whole family are greatcooks and they came up withthe menu.

While their versions of thehumble boerewors roll takescentre stage on the menu, it nowalso includes other traditional foodfrom vetkoek to potjiekos.

Although the boerewors rollis still the item of choice at ourmobile units because it is easy

to eat on the run, potjiekos hasactually become the favourite atour restaurant.

It is, however, not only Vuyosmenu that has grown, but sinceopening two years ago turnoverhas increased by about 22%month-on-month.

While he started out with onlyve employees he now has a staff

complement of 20.His success has not stopped

him from continuing to dreambig. Plans are in the pipeline toopen a restaurant in Bloemfonteincome next month and another inRosebank, Johannesburg in thenear future.

Our business model ishowever very different to whatit was when we started. About70% of the business is now pop-up. The reason we are going thisroute is that pop-up restaurants,like food trucks, are a global trendat the moment.

Why pay R250 for a steakat a restaurant when you can

pay a fraction of the cost for agood quality meal at a mobilerestaurant?

That steak costs so muchmore because the restaurant hasmajor overheads, while a food cartdoesnt and you can pass on thesavings to the customer.

For Kubheka it is not onlyabout realising his own dreams,but about helping entrepreneurson their business journeys.

A year ago he partnered withSpar and started rolling out Vuyosbranded food carts, giving othersan opportunity to sell boereworsin front of the retailers stores.

The problem with becominga franchisee is that you needanything from R400 000 toR5 million upfront, which makesit almost impossible for mostentrepreneurs to achieve.

We have therefore decided toprovide the franchisee with allhe or she needs to start. Oncethey are up and running, the cartactually pays for itself.

It is not just any cart either, itis a state-of-the-art branded unitmade from stainless steel with allthe bells and whistles from thenecessary grills, a pull-out cabinetand sink to a battery panel and aplug point for the cash register or in this case an iPad.

Vuyos also provides thenecessary training to increasethe chances of success as wellas ensure food quality. Kubhekahopes that over the next ve

years, more than 300 Vuyos foodcarts will open across the country.

While his Vuyos journey hashad several highlights, nothinghas been more rewarding for the38-year-old businessman, than

empowering others.It was the most incredible

feeling handing over that rstcart. It brought me to tears,knowing that it has changedsomeones life. Visit www.vuyos.co.za for more

information.

Local woman is nalistin global competition

BY DANIEL BUGAN

WELKOM-BASED businesswomanRenay Van Der Berg stands thechance to clinch the ultimate prizein an international competitionthat recognises women whoexcel in entrepreneurship, afterrecently being nominated as oneof 10 nalists.

The competition is an initiativeof Empretec, a UN Conferenceon Trade and Development(Unctad) entrepreneurshipdevelopment programme.

The programme helps

women in 40 countries to turntheir weaknesses into strengthsthrough setting goals, seekingopportunities and taking risks.

Those women entrepreneurswho have participated in theprogramme and who havefounded successful rms, created

jobs, inspired others and improvedthe quality of life of their localcommunities, are eligible to enterthe bi-annual Empretec Womenin Business Awards.

South Africas hope restswith Van der Berg, who ownsProComm, a company thatprovides communication andentrepreneurial solutionsfor emerging businesses,The nalist says she is motivatedmore by the chance of exposureand opportunity to network withothers, rather than for the prizemoney when she takes part in

competitions.The whole exercise of

entering a competition is alearning curve and a way toevaluate your business andto measure it against theperformance of other businesses,points out Van der Berg.

However she does concedethat there are some benets to behad should she emerge victorious.

It (winning) will certainly addvalue to ProComms position as aninuential, credible, professionalbusiness and perhaps also drawmore clients, says Van der Berg.

She feels that it was herconsistent and continuoussupport of emerging businessesover a 30-year period which ledthe judges to notice her.

Her company outsourcesservices to young entrepreneursso that they can get their own

businesses. It also provides freementorship on an annual basis todifferent organisations.

Come 15 October, Van derBerg will know whether she isone of the top three nalistswhen the announcement will bemade at a ceremony in Geneva,

Switzerland.

Prizes include travel grants,technical support to improvetheir businesses and exposureto international markets throughtrade fairs.

The Small EnterpriseDevelopment Agency (Seda),which hosts the Empretec

programme in South Africa,

nominated Van der Berg forthe award. Since 2010, 650participants across the countryhave benetted from theEmpretec programme. Contact Louis Nhlapo,

lnhlapo@seda.org.za for moreinformation.

SUCCESS

Miles Kubheka, the man who put life into the Hansa Pilsner ad's character, "Vuyo" after seeing the ad on TV.

Renay Van Der Berg is one of ten nalists in the global competition.

"It was the mostincredible feelinghanding over that

rst cart"

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page 6 - July 2014 SMALL BUSINESS CONNECT NEWS

Durbanchamber offers

mentorshipfor womenentrepreneurs

BY DANIEL BUGAN

BONGIWE Gumede is closer togetting nance for her tourismbusiness after she secured a spotin a pilot mentorship programmefor KwaZulu-Natal entrepreneurs.

The mentorship programme,which provides rural and peri-urban woman entrepreneurs inKwaZulu-Natal with businesssupport, is an initiative of theDurban Chamber of Commerceand Industry.

The chamber hopes thatthe programme will help moresmall businesses to successfullysupply the government andprivate companies.

Gumede, owner of EmathawaTrading, a company that providescar rental and airport shuttleservices, says she started in theprogramme in May and is already

well on her way to developinga business plan thanks to thementorship she has receivedso far.

She says after she developsa business plan she plans toapproach banks and other nancialinstitutions for funding which sheneeds to buy business premisesand vehicles, among other things.

After the completion of herbusiness plan, mentors will showher how to present the plan tonanciers and which institutionsto approach.

Gumede also received t rainingon how to market her business,how to prepare a budget withcashow projections, creditcontrol and stock control.

Dumile Cele, the chambersmanager and deputy chair of theWomen in Business Forum whichimplemented the mentorship

programme, says developinga bankable business plan isan important component ofthe programme.

The business plans thatentrepreneurs develop duringtraining will be presented to thetrainers and representatives from

various nancial institutions to beanalysed and monitored.

At the end of the six-monthprogramme we would like to seeentrepreneurs in a position toreceive nance for their respectivebusinesses and to create stablebusiness entities that will grow andcreate employment, says Cele.

Participants will be assistedby mentors, who will help themto present their business plans tobanks and development nanceinstitutions.

The programme, which runsuntil November, also includesnancial management, marketingand pricing and costing training.

Entrepreneurs will have theopportunity to participate inon-site visits to big businesseswhich will enhance their businessreadiness and equip them tobecome better suppliers to their

respective industries.The current programme

provides training to 27 womenentrepreneurs and is open towomen with registered businessesin all sectors, who possess a matric

certicateThe training, delivered by

PriceWaterhouseCoopers, isprovided free of charge to allwomen entrepreneurs who meettheir criteria.

After the completion of thepilot project the chamber hopes totake similar programmes to othercentres in KwaZulu-Natal. Contact Rokeya Valli on vallir@

durbanchamber.co.za

Wi-Fi Taxi project launchesrst phase in Gauteng

BY VUYO MABANDLA

IN A FIRST for the minibus taxiindustry, commuters will beable to get access to free wi- as part of a new initiative bythe South African National TaxiAssociation (Santaco).

Launched last month Wi-Taxiis already available in Gautengand Santaco plans to introducethe initiative to more regions bythe end of this year.

The initiative comes inresponse to the governmentscall to improve the industry, bymodernising it.

Bandwidth services for theproject are being provided byTelkom in partnership with brandmanagement company Telesure.

Wi-Taxi chief executive BrianMdluli says each commuter willbe allowed 50MB of data free perday to use within a range of over1 000 access points, any timethey commute on a taxi.

We are very excited about

the initiative.The aim is to deliver the

project to a national target ofabout 15 million commuters.

This puts entrepreneursin the taxi industry in anadvantageous position to growtheir businesses, says Mdluli.

Taxis would be ttedwith access point devices forcommuters to connect to.

Once they have connectedtheir mobile devices to a taxisWi-Fi system, passengers can usethe internet in any rank or taxithey use for commuting.

When their quota of free 50MB is used up, a message is sentto the users mobile device.

By sending the message,commuters will be given theoption to buy more data.

Passengers are provided withsecure usernames and passwordsto protect their information andhelp them stay connected.

Mdluli says that there hasbeen a positive response fromtaxi owners and workers withregards to this.

We have had excellentsupport from the taxi industry.The project helps bringconvenience to both the industryand its customers, he says.

The project is expected to

reach more than 50 Gauteng taxiranks within the next six monthsand Mdluli expects the number ofWi-Taxi access points to increaseto more than 4 000 in variousparts of the country by 2017.

In Cape Town Lennox Miselo,chairman of the Congress for

Democratic Taxi Association inKhayelitsha says taxi owners areexcited by the project.

We have already been notiedby Santaco and commuters herehave been asking us about it.

I am very excited to see thealmost obvious increase in thenumber of commuters we willsoon be getting in the long run,he says.

The associations president

Philip Taaibosch says the rstphase in Gauteng will take aboutsix months to be rolled out.

The second phase will seethe installation of between 4 000and 5 000 Wi-Fi access pointsper month.

On expanding the project,

Mdluli says, Santaco will alsobe targeting provinces likethe Western Cape and theEastern Cape.

Key public transport routessuch as those in Mitchells Plain,Bellville and Khayelitsha andCape Town will benet from theroll-out, he says.

He hopes that the initiativewill create viable economicgrowth within these regions and

adds that Santaco is open tosuggestions on where to take theproject to next.

The taxi council expects theentire project to be completedwithin the next three years. Go to www.witaxi.co.za for

more information.

Bawinile Shangase, Rokeya Valli, Mary Papayya, Dumile Cele, Thuthu Mbhele, Vani Moodley and NobelunguNgcobo are participating in the mentorship programme.

Gauteng taxi owners will be the rst to have their taxis equipped withaccess points commuters can use to receive 50 free megabytesof internet.

The businessplans that aredeveloped willbe presentedto nanciers

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www.SmallBusinessConnect.co.za July 2014 - page 7

KZN women

honouredBY VUYO MABANDLA WOMEN were recognised fortheir contribution to the economyat this years annual RegionalBusiness Achiever Awards held inKwaZulu-Natal in May.

The gala evening, hosted bythe Business Womens Associationof South Africa (Bwasa) at theDurban International ConventionCentre, recognised womensachievements and contributionsacross various sectors.

Bwasa is a national platformthat aims to provide support andinspiration for women in all walksof business life.

The KwaZulu-Natal eventforms part of the associationsannual regional awards heldacross all provinces.

To be considered fornomination, a candidate must beendorsed by her business peers,before being invited for a judgingpanels assessment.

In Durban, some 500 delegates,including nalists, governmentand business representativesas well as keynote speaker andauthor and entrepreneur FeliciaMabuza, attended the event.

Past award winners haveincluded Eskoms former humanresources manager DawnMakhobo and the late MaponyaGroup director Marina Maponya.

Finalists are chosen incategories like corporate,social entrepreneur, emergingentrepreneur, professional andwomen in government.

The judging panel includesmembers of a number of leadingbusiness institutions and theyassess exemplary leadership,inspiration and problem-solvingskills in all the nominees, explainsCatherine Smith, Bwasa KwaZulu-Natal provincial co-ordinator.

Emerging entrepreneurcategory nalist Brenda Scheepersis one such woman. Her projectmanagement business AngelProjects, which she co-foundedwith Werda Grunewald in 2010,helps connects corporates withnon-prot organisation to startsocial development projects.

Says Scheepers: My businesshas benetted greatly from theexposure offered through theawards. We plan to get morecorporate companies involved inour certied projects and expandthroughout the country.

The highest honour for the

evening was awarded to JudgeLeona Theron who served as a

judge in the countrys judiciary formore than 20 years.

She received the specialLife Time Achievement awardfor her women-empowermentprogrammes and achievements as

a judge in the Supreme Court ofAppeal in Bloemfontein. At the ageof 32 in 1999, Theron became therst black woman to be appointed

judge in the KwaZulu-Natal becoming the youngest judge inthe country. Transnet Pipelineschief executive Sharla Pillayclinched the Business Executive ofthe Year award.

I . :

SUCCESS

Liepollo Pheko (BWA), Farzanah Mal (BWA), Alan Khan (Durban University of Technology, Mayor ThembekaMchunu and Michelle Brown (BWA) at the KwaZulu-Natal awards ceremony held in June.

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page 8 - July 2014 SMALL BUSINESS CONNECT

Speedy resolutions with STI ombudsmanBY VUYO MABANDLA

SINCE Dennis Jooste took over themanagement of the short-terminsurance (STI) ombud's ofce

less than three years ago, it hasreceived and resolved thousandsof complaints by consumers.

Last year was the ofcesbusiest period with over 9 000complaints lodged and resolved.

This is based on gures in therecently-published annual short-

term insurance ombuds report.The report says these disputes

occurred between aggrievedpolicy-holders and insurance ornancial services companies.

Since the ofce was rstestablished in 1989, it hassuccessfully intervened innumerous small claims disputesinvolving products such as short-term insurance and loans.

The report reveals that theombud nalised 30 450 formal

disputes between Joostesappointment in 2011 and 2013 out of which 9 368 werecomplaints led last year alone.

The rand value for settled

disputes in favour of consumerswas R118 million which isabout R500 000 more than theR113 million nalised in 2012.

The amount recoveredrefers to payments made to thepolicy-holders as a result of ourinvolvement, says Jooste.

Jooste supervises a team ofsenior and assistant ombudsmenwho facilitate accessible, informaland speedy resolution processes topeople who have disputes with the

companies they are insured with.His ofce assesses complaints

involving house, car, livestock andbusiness insurance claims fromvarious policyholders.

Complaints vary from latesettlements on submitted claims,unfair interest charges on loans

and suspected fraud.To lodge a complaint,

consumers can download andsubmit the ombuds onlineapplication form or call the toll-

free number.Important documents, for

example policy schedules andletters of rejection from theservice provider must be includedin the application form.

On receipt of a complaint, thecase gets registered with our ofce.The complaint is then forwardedto the insurance company fora response, says John vanRensburg, assistant ombudsman.

The insurance companysresponse is then sent to thecomplainant for consideration andis then returned to the ombudsofce with his or her comments.

Once the cause of thedisagreement is determined bythe ombud, an investigation intothe dispute begins.

The cost-free process takesbetween three to four monthsto complete.

Van Rensburg says his ofceliaises constantly with bothinsurance and loan companiesand their clients to ensure thatimpartial outcomes are reached.

Ombudsman Joostereceives excellent co-operationfrom consumers.

This is illustrated by thefact (that) he made only twoformal rulings against insurancecompanies during 2013, to whichthose insurers complied with,he says.

Previously, nal decisionsby the ofce were binding to allinsurance companies, but not toconsumers. However, in December2013, the ofce launched anappeal mechanism that will allowinsurers to appeal as well. Go to www.osti.co.za for more

information

ADVICE

www.bandwidthbarn.org

Contact Cindy Valentinereception@bwb.org.za

+27 (21) 409 7000+27 (21) 409 7050

The Barn enables people to start successful busi-nesses, develop great products and thus help changethe world. It drives social and economic prosperity byleading Cape Towns and the regions innovationmission.

We envision Cape Town and its surrounding commu-nities as prospering through enhanced employmentprospects, local wealth creation and retention and anenriched cultural and social environment. In realizingthis vision, we foster and promote entrepreneurshipand innovation.

The Barn is the oldest technology incubator in the African continent.

Looking for growth?

Dennis Jooste

Last year over9 000 complaints

were lodgedand resolved

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www.SmallBusinessConnect.co.za July 2014 - page 9BOOK REVIEW

The discipline ofcreating a WorldClass Company

CHRISTOFF

OOSTHUYSEN

reviews E-Myth

Mastery The Seven

Essential Disciplines for

Building a World Class

Company by Michael

Gerber published by

Harper Business

(2005).

THOSE just published booksthat recently landed on my deskall seemed rather esoteric, so Ichose to go back to my bookshelfin search of a title to introduceto the Small Business Connectcommunity this month.

Perhaps not by chance, my eyefell on Michael Gerbers name.Was he not the entrepreneurialbusiness coach whose workchanged my thinking on the real

job of a business owner?Did he not teach me about

being obsessed with creating aperfectly functioning business?

Indeed! Michael Gerber isarguably The most inuentialbusiness coach of the past30 years.

And he surely shifted mythinking with his short, but deeplyimpactful observation that the jobof the entrepreneur is to work onthe business, not in it.

I must repeat what he saysbecause it is so profound:

The job of the entrepreneur isto work on improving his or herbusiness, not in the making of itsproduct or service.

Gerber has promoted thisthinking for over 40 years.

He has done this through his

consultancy business in Californiaand through the various books hehas published.

One of which, the best known isThe E-Myth Why Most BusinessDont Work and What To Do AboutIt, which he rst published inthe 80s.

WORK ON YOUR BUSINESSThe assertion that you should

be working on and not in yourbusiness implies that the outcomeof your labour should be a wellfunctioning business that willthrive even if you are not present.If you are involved in makingthe product or service offered to

your customers, you are workingin your business. Gerbers pointis that you should see the wholebusiness as your product and that

your task is to work at making thisa world-class company.

As he aptly puts it in E-MythMastery, knowing how to do thework of a business has nothingto do with building a businessthat works.

But before I get to talking

about the mastery included inthe title of the book I am reviewinghere, lets pause for a moment atthe idea underlying his use of theconcept e-myth.

The e in e-myth of courserefers to entrepreneurshipand the myth Gerber talks aboutis the notion that all businessowners want to create a fabulouslyinnovative and creative business.This myth, he says, leads manyentrepreneurs down a road ofdisaster. Rather, he says, mostbusiness owners just want to havea smooth running organisation thatdelivers value to its customers andmakes good money in the process.If they could choose, they wouldopt for a turn-key solution,very much like owning a branchof a franchise where the perfectsystem has already been designed.

PASSION AND PURPOSEIn his earlier books, of which

many are aimed at specicindustries, Gerber offered avery convincing argument forrefraining from working in yourbusiness and starting to workon it. But then, after the turnof the century, he publishedE-Myth Revisited and shortlyafter E-Myth Mastery, where

he identied a huge shortcomingin his previous solution. Throughconversations with a client thatfollowed the e-myth principles,Gerber explained that an importantelement needs to be added to offerentrepreneurial meaning. This, hesaid, is to understand the driving

force behind the entrepreneur...the passion or deeper purpose thatgives meaning to what you do asan entrepreneur.

Which brings us to thebook I am reviewing here E-Myth Mastery.

In this book Gerber maintainsa solid focus on the nitty-gritty ofrunning your own business, butcombines the practical leadershiprequirements needed to run aworld-class company withthe deeper motivation of theentrepreneur. He explains thisdeeper motivation as the passionor purpose of the entrepreneurand the willingness to exploreself-improvement. You need topractice to get better, he says, sincethere is a direct link between the

willingness of the entrepreneurto keep improving him- or herselfand the success of the business.The lack of vision he says is whatcreates a cloud of misdirectedactivity, adding that in order for

your business to change, youhave to change rst.

E-Myth Mastery is basedon the development programmeGerber offers businesses ownerswho sign up for his support. It is

a solid book but what can youexpect to nd in its more than400 pages?

The book is divided intotwo sections, rst one offeringinsights into issues aroundpassion, purpose, practice, self-improvement and vision, and then,

in the second section moving on tothe detail of leading a world-classcompany through seven essentialdisciplines.

These disciplines, eachcovered in a self-containedchapter, are: the discipline ofthe enterprise leader, of themarketing leader, of the nanceleader, of the management leader,of the client fulllment leader,of the lead conversion leader,and the discipline of the leadgeneration leader.

If you own and manage yourown business you are sure tobenet from clarifying your vision,showing willingness to changeand then achieving your goals byapplying the seven disciplines to

your business. Get hold of this

book. Learn from a master. Thengo create a world-class company! Christoff Oosthuysen is an

Institute of Business Advisorsaccredited business advisorand entrepreneurial coach.He is also publisher of SmallBusiness Connect.

Michael E. Gerber

Event provides support to informal tradersBY VUYO MABANDLA

MORE than 200 Cape Towninformal traders were given achance to voice their grievancesand address key challengeswhen they met recently withlocal government ofcials andbusiness advisers at the MicroEnterprise Summit held inthe city.

The event, held in June,is the second of its kindhosted by the City of CapeTown and aims to address theshortcomings experienced bylocal informal traders.

Thembinkosi Siganda,director of economic developmentat the city, says the day-longgathering aimed to give informaltraders, such as spaza shop and

road-side stall owners, a chanceto liaise with formal businessesand support agencies.

This event is in response tothe challenges and concerns ofinformal business owners in andaround Cape Town. In all, itstime to receive suggestions from

the entrepreneurs themselveson how to remove red tape,says Siganda.

Discussions included issues

relating to company registration,approval for trading of specicproducts or services and otherexisting regulatory measures.

Exhibitions and lectures oninformal trading opportunitieswere held throughout the event.

The event featured talks by

representatives from businessdevelopment organisationssuch as The Business Place,the South African Institute forEntrepreneurial Developmentand the Small EnterpriseDevelopment Agency (Seda).

The informal traders werealso given free business adviceby business advisers.

Manenburg-based traderShamiela Abdol, who sellslocally-made socks, says shehas struggled to grow herbusiness after being evicted fromher business premises three

years ago.I am blacklisted and unable

to grow my business. This eventhas allowed me to pose questionsto business advisers who canshow me how to get over this

obstacle, she says.Abdol says she wants to

expand her business to includecleaning and painting services.

She says she plans toapproach some of the businesssupport agencies that she wasexposed to at the summit.

Shamiela Abdol

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page 10 - July 2014 SMALL BUSINESS CONNECT

How do youknow whether

your businessis viable or not?

BY GCOBANI NDABENI

MOST people do not take kindlyto it when somebody, whether anancier or business advisor, hasto tell them that their businessconcept is not viable.

Brilliant business ideas do notnecessarily make a good business.It boils down to whether the ideascan be implemented with ease andcan generate a lot of money.

I, sometimes, feel sorry forthe men and women at nanceinstitutions who have to facezealous entrepreneurs every dayand say NO to their applications forfunding due to viability problems,knowing that entrepreneursseldom take no for an answer.

These poor people get accusedof lacking the willingness to assistsmall business owners and aresometimes told that they knownothing about business.

Usually, startups are wheremost of the problems lie. Howwould you conrm that the

business will not be viable?Remember, there are no past

records to analyze and assessexcept for the business plan andthe entrepreneur. People tendto think that a business plancompiled with the assistance ofa business consultant will easilysecure you funding, not so.

Assessing viability of abusiness concept is not so simplesince one looks at it in terms ofmarket, technical, organisationaland nancial issues.

These are mainly covered bya feasibility study done before thebusiness plan is compiled.

MARKET VIABILITYOn assessing market viability

one looks at the industry andmarket conditions at present, thegrowth potential and the level ofcompetition.

Also very important - theentrepreneur must be ableto identify, by name, who thecustomers will be, how manyquantities of the product orservice will they order, at whatprice and how frequent the orderswill be made.

This must be supported byevidence and if it is not availablethen it will be tough to convince

another person that the product orservice will sell.

TECHNICAL VIABILITYOn technical viability the

assessment is on how intricate theprocess of producing a productor service is, how easily available

are the raw materials andmachinery (where applicable)and where they are going to besourced from, at what prices, thetechnology to be used whether isnew or obsolete and its lifespan,the expertise available in termsof production and servicingmachinery, if raw materials andmachinery will be imported theimpact of the weak Rand on thebusiness, what extent of technicalcompliance is required for thebusiness and etc.

The more technical thebusiness is, the more difcult itwill be to prove viability.

When assessing organizationalviability one looks at the way thebusiness will be organized interms of premises, departments,management and key employeesto conrm that the businessconcept will be implementedwith success.

Bad choice of location andpremises will always affectthe viability of the business.

Organizing the business aroundthe owner is a recipe for disastersince if you take him or her outof the equation the whole thingwill collapse.

There are key managerialpositions in a business thatcannot be compromised suchas general manager, nancialmanager, sales manager andproduction manager in case of amanufacturing business.

On the employee level thereare also positions that are key tothe production of the product orservice that the business cannotfunction without.

FINANCIAL VIABILITYThe nancial viability

assessment brings all the above

elements together and translatethese into gures.

This is where the nal decisionis made. Is the startup capitalrequired ridiculously high, is

the entrepreneur able to make asignicant contribution in termsof own cash and collateral inorder to lower the gearing and getnance at a cheaper rate, can thebusiness afford to repay the loan,are the sales as veried going to besufcient to cover all the costs andproduce prot, are the exchangerates going to have a negativeimpact on the production costsand pricing of the product/s, arethe salaries of employees goingto be too high for the business toafford and is the business goingto have enough cash reserves to

carry it through bad times?These are the kind of questions

that will give an indication ofwhether the business will beviable or not. Cutting corners will

not make a business viable.If your feasibility study and

business plan has been doneright for your business concept,

you should know whether a NOresponse received from a nancieris genuine or not.

Whoever gave you the idea thatit is easy to start a business mighthave misguided you since it canbe a complex process dependingon the nature of the business. Onthe other hand, for an existingbusiness it is easier to determinewhether the business is viable ornot, since the facts are there.

Don't just hang in there withsome hope that something big willcome up and turn the businessaround. Make sure that yourbusiness is viable.

Get skilled workers through local employment initiativeBY NABELAH FREDERICKS

BUSINESS owners can nowtap into a source of skilled

young employees after a local youth employment acceleratorearlier this year launched atailor-made solution for smallbusiness owners.

The company, Harambee,initially focused on placing largegroups of unemployed youth withbig businesses after providingthese youth with skills such ascomputer literacy. Young peopletrained and placed by Harambeeare also known as Harambees.

However, Leora Rajak who,developed the small and mediumenterprises (SME) programmefor Harambee, says the companylater opted to broaden its focusbecause small businesses createthe highest number of jobs.

Since rst piloting the

programme last year, wevelearnt that the needs of smallbusinesses are very different fromthe corporates we usually placeHarambees with and (we) havebeen addressing those challengesthrough offering these businessowners solutions, says Rajak.

For example, small businessowners are less likely to haveproper hiring processes in placebecause they dont spend on

recruitment and often employfamily and friends.

Added to this small businessowners often dont plan aheadand many a time only realise theyhave a vacancy at the last minute.

Rajak says as a resultHarambee has opted to offer

business owners skilled staffwith the possibility of handlingsuch functions as legal or humanresources solutions for those

business owners who do not havethe capacity to do so.

We also assist small businessowners in drawing up a jobdescription as in many cases onedoes not exist. Should businessowners require, Harambee alsosets up and assists with the

interview process which can bedone at the Harambee ofces,says Rajak.

In addition, small businessowners can draw on about 80templates of legal documentationsuch as employment contractsand leave forms via a sharednetwork with Harambee.

A once-off placement fee ischarged. However, the cost ofthe placement fee depends onthe degree of training involvedfor the placement as well as howmuch time Harambee will have toinvest in the small business.

Rajak says the investmentby Harambee usually comesin the form of post-placementservices such as counsellingor troubleshooting offered tonew recruits.

Harambees are typicallytrained for positions in small callcentres, as ofce managers and

for jobs in the hospitality sector.Placements need to ideally

be for a minimum of a year-long contract.

Harambee currently hasofces in Johannesburg, CapeTown, Durban and Port Elizabethwith limited mobile operations.

Harambees being trained at one of the local Harambee of ces.

ADVICE

Check whether your business is viable by assessing technical, market, organisational and nancial issues.

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www.SmallBusinessConnect.co.za July 2014 - page 11

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ADVICE

Stay human with tech optionsBY PAUL HOBDEN

WHEN Russian-born VladimirVeselov and Ukranian Eugene

Demchenko's supercomputerduped computer users intothinking that it was a 13-year-oldboy in June 2012, it became therst-ever computer to pass theTuring test.

The test was devised in 1950by computer science pioneer AlanTuring, who said that if a machinewas indistinguishable from ahuman, then it was thinking.

Veselovs machine was one ofve tested by the Royal Societyin central London to see if theycould fool people into thinkingthat they were human during aperiod of ve-minute keyboardconversations.

About 33% of the judgeswere fooled.

No computer had everpreviously passed the Turing test.

While this may seem farremoved from the everydayworld, the implications aresignicant, especially in the eldof customer service.

We have become soaccustomed to interacting withmachines to complete many ofour daily tasks, withdrawingmoney at the bank, paying bills,buying things online, paying nes,following the interactive voiceresponses of call centres, visitinglive chat services for help online,and frequenting the self-servicecheck-in at airports, to name a few.

These interactions come withsome benets, most notably speedand convenience.

However, from a customerexperience perspective, they oftenlack the human touch or the abilityto solve a customer query shouldit be slightly out of the ordinary.

But, with signicantimprovements in articialintelligence (AI), it is possible thisdistinction may soon disappear,ushering in an era of (somewhat)human, yet extremely efcientcustomer service.

It is some way off before mostsmall businesses start utilising AIservices to look after customers,but it is worth considering a fewcustomer service tips for makinguse of current technology.

Respond quickly to all emailrequests, complaints or enquiries

as soon as possible. Customersexpect a polite and detailedresponse without having to wait.

Customers will use socialmedia channels to communicatewith you and your business.

Make sure you are preparedto respond to their request in

good time. Social media hasset expectations of immediatefeedback and should you leave acustomer waiting for a response,

it can lead to signicant negativereputational loss online.

Many customers like to choosethe channel with which they wantto communicate with you, be ittelephone, email or live chat.

If you provide live chat, makesure that someone with excellentcommunication skills and product

knowledge is able to effectivelyanswer all customers questions.

There are few things morefrustrating than waiting in an

endless telephone queue or beingpushed from option to option oninteractive voice responses ona telephone.

No matter how many timesthe voice tells you your call isimportant, the experience for thecustomer is poor.

Make the process of getting

through to the right person assmooth and painless as possible.

The important thing toremember is regardless of the

technology, humans want to bedealt with as individuals and givena professional and memorableexperience of doing business with

your company. Paul Hobden is head of small

business at MWEB. Go towww.mweb.co.za for moreinformation. Paul Hobden

Humans wanta personalexperience

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page 12 - July 2014 SMALL BUSINESS CONNECT

Make your

tweet heardBY DANIEL BUGANBUSINESS owners are now able toplan and run their own advertisingcampaigns without breakingthe bank.

This, thanks to a newadvertising platform for smallbusinesses launched by Twitterin May.

Twitters small and mediumenterprise (SME) advertisingplatform allows businesses toengage with existing customersand to reach new audiences bycreating, managing and reviewingtheir own advertising campaigns.

Barry Collins, director of smallbusiness at Twitter, says businessowners who advertise on theirplatform only pay if Twitter usersretweet or reply to their promotedproducts or click on a link in apromoted tweet.

Collins points out that thecost of an advertising campaigndepends on how users engagewith the advertisers content andhow an advertiser chooses to runspecic campaigns.

But you can set your ownbudgets. There are no set costs.You can spend as much or as little

as you can and you can start andstop your advertising campaign atany time.

Collins recommends thatbusiness owners make an effort torene their advertising campaignsbased on the responses they getvia the analytics reports generatedon the platform.

The analytics report providesinsight into what works anddoesnt work for your targetaudience, and you can then tweak

your campaigns accordingly, asmuch as you like. There is nominimum spend, so businessowners can try things out to theirhearts content.

He says with more than500 million tweets a day and255 million active users onTwitter, small businesses stand agood chance of connecting withnew people who want to hear fromthem and who can spread the wordabout their business to others.

Collins says about 13 000people have followed the relatedTwitter handle @TwitterZA_SMEsince the platform was launchedin South Africa.

So what makes Twitter so surethat the SME advertising platform,already in use in Israel, US,Canada, UK, Ireland and Japan,

will be embraced by South Africansmall businesses?

Collins says Twitters researchshows that there is a high level ofdigital marketing, innovation andcreativity among small businessesin South Africa which indicatesthat the advertising platform will

be useful.South African Twitter users

are also highly mobile, mostlyaccessing Twitter via theirsmartphones on the go. This isideal as Twitter itself is a mobile-rst company, and its platformand advertising services havebeen built for mobile.

He says the advertisingplatform is very easy to useand that business owners canset up an account in just a fewminutes. Twitter also runs a seriesof seminars and videos on itswebpage that break things downinto bite-sized chunks and talkone through both the service andthe advertising platform.

Online and social mediamarketing specialist Leon Marinusagrees and says business ownersshould have a clear strategy inplace before they commit to anadvertising platform such asTwitters one for small businesses.

Marinus, whose companyAtka SA provides social mediamarketing solutions for smallbusinesses, says business ownersmust be able to pinpoint whetherthey want brand exposure orif they want to generate new

business leads when consideringan online advertising platform.

Also you need to know who

your target market is and onwhich social media platform

you would want to target thembecause each social platform hasa different audience and targetspeople differently.

Then you need to workout how you are going to trackand measure your results from

your campaign. If you can putthis in place then you can easilylaunch a pretty successfulonline campaign.

Marinus also advises business

owners to make sure that thecontent they publish is relevantand that their users are able to

engage with it.If your content is good you

will get more hits but if you do nothave quality and engaging content

you will go unnoticed.He says the advantage of

social media advertising is thatbusiness owners can targetpotential customers more directly.They also have a much largerpotential audience than is thecase when placing advertisingwith conventional print orbroadcast media. It also comes at

a much lower cost. Marinus warnshowever that business ownersshould be careful of the content

they release in their advertisingcampaigns as it could eitherboost or damage the reputation oftheir business.

He says business owners needto understand that marketingonline is a full-time job.

Marinus suggests that in orderto run more effective advertisingcampaigns business owners shouldconsider employing someone withthe appropriate knowledge andexpertise or an agency that knowsthe online marketing industry.

Go to ads.twiiter.com for aTwitter account or info@atkasa .com to contact Atka SA.

TECH

Barry Collins, director of small business at Twitter, says business owners can set their own advertising budgets.

Start bookmarking online and create your own libraryBY MARCEL OUDEJANS

WITH an abundance of usefuland interesting articles to befound online, it can be veryeasy to forget where you founda webpage that you want toread again.

When we only had books,bookmarking was a fairlysimple process: youd fold overthe page corner, place a piece ofpaper or card between the pages,or you could stick a tag on thepage edge.

However, saving pagesonline can be more complicated,so here are some tips tomake bookmarking easier andmore useful:

BOOKMARKING FACILITYMost internet browsers

offer a bookmarking facility. Irecommend you avoid using thisfunction as the bookmarks are

saved on your computer. If yourcomputer gets destroyed, lostor stolen, you will lose all yourbookmarks (unless you do regularbackups). Go ahead and bookmarkthe websites you use on a dailybasis, but dont rely on yourbrowsers bookmarking facility.

CLIPPINGYou can save a webpage as a

note (also known as clipping)to an online note service, likeEvernote see last monthsarticle). Evernote will save asimple version of the page to

your online notebook, as well asany tags you use to organise orremember the information. Thenote will not update if the original

article is updated, but you willstill be able to see the sourceURL of your note. You can accessand search your notes from anyonline browser, or mobile deviceusing the app (iOS or Android).Both free and premium versionsare available.

DIIGODiigo (www.diigo.com) is an

online service that calls itselfa multi-tool for knowledgemanagement. You can save,annotate and share pages to

your online library, along withany notes, comments or tags youwould like to add. You can alsosave your bookmarks into lists,or create a network of peoplewho share common bookmarks(like your business team). Diigooffers a premium service that willhelp you nd a bookmark withits search facility. So even if youcan only remember a keyword ortwo from the page, Diigo will help

you nd the relevant bookmark.You can access your bookmarksfrom any online browser, ormobile device using the app (iOSor Android) because Diigo saves

your bookmarks online. Both freeand premium versions available.

POCKETUsing www.getpocket.com is

another way to save webpagesto your pocket. Its mostcommonly used when peoplewant to save an article, email,video or other content to readit later, most likely on a mobile

device (iOS or Android). Forexample, if you saved this articleto your pocket, and allowed

your app to synchronise, youdbe able to read it ofine at yourconvenience. Typically it wouldsave a text only version ofthe article, so that you get thecontent without the surroundingwebsite content or images. Pockethas recently released a premiumversion which permanently savesarticles so that theyre accessibleeven if the original page isdeleted, adds a search functionto nd keywords or tags in olderarticles youve saved and it cansuggest tags to make organising

your information even easier.Both free and premium versionsare available.

Bookmarking and the abilityto save webpages and articlesis an important skill to learnand use regularly. Creating andmaintaining your own personal

online library will help youmanage the information you wantto keep and remember. Marcel Oudejans is an

entertainer, motivationalspeaker and soft skills trainer.Go to www.workplaylife.co.za for more information.

Marcel Oudejans

mailto:info@atkasamailto:info@atkasa

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www.SmallBusinessConnect.co.za July 2014 - page 13

Start your website businessBY PAUL CRANKSHAW

ALMOST one billion in fact,975 million and counting. Thats

how many websites exist on theinternet today.

And this is why designingwebsites can only be a growthprospect for a new business, if

youre good at it.But remember that designing

websites is really about design,not just the mechanics of using aprogram to plonk text and imagesaround the screen.

Anyone can learn the softwareto produce a website, just like

you can learn Microsoft Word orPowerpoint. Design, on the otherhand, needs air and creativity.

Dont lose heart, though, if you are not very artistic. Youcan work in partnership with acreative person who can do themore creative side, and you canthen apply it to the website that

you are building.As a website designer the work

you do will include graphic design,building internet databases andcreating interactive sites.

You start by assessing what your customer wants to achievewith their website, then you workwith them to plan, create, test andlaunch the site.

You will usually also help themmaintain, update and improve thesite once it is up and running.

So you ideally need a goodcombination of creative air andtechnical ability in using web-design software.

You will use this talent tocome up with practical designsthat get peoples attention whilecommunicating the clientsmessage to the t argeted audience.

This usually requires somegood training in graphic designskills and typography.

Here are some places that offercourses in web design:

The University of SouthAfricas School of Computingoffers a correspondence coursein web design. This course willteach you about all the importantonline tools and how to designand publish your own multimediaweb pages.

New Horizons (www.nhct.co.za) offers web design courses,including HTML, MS Frontpage,Dreamweaver, Flash, PHP andMySQL. You can study at acomputer learning centre oronline in your own time.

Intec (www.intec.edu.za)offers an 18-month Introductionto Website Design course bycorrespondence, as well asmore advanced courses inwebsite design.

As important as your technicalskills, good communication skillsare also essential.

You must be able to listenand understand your clients, todetermine exactly what theirideas are and what they want theirwebsite to do.

At the same time, you needto communicate your ideasclearly to clients so that theyunderstand your suggestions and

design options.This will help you to sell

yourself, your service and your ideas.

To get your business off to agood start, nd yourself a nichewhere you can focus on a smallertarget group of customers. For

instance, nd customers in yourlocal area rst, where they areeasier to visit and to talk to.

If you only have basic web

designing skills to start with, youprobably can only do projects forclients who are new to the internetand have quite low budgets.

These could be smallbusinesses, churches, schools,sports clubs, youth groups or non-governmental organisations in

your area.Once you are more established,

you can think of looking forcustomers from other areas and

offering to develop their existingsites, update old designs and addin new features that suit theirchanging needs (Flash demos,blogs, databases and productcatalogues, for instance).

The information andcommunications technology (ICT)

sector is very competitive, and sois design; so you need an interestin the latest trends and you cannever stop learning and updating

your skills. Paul Crankshaw is head of

Cobweb Information SouthAfrica and specialises ininformation on support servicesthat assist small business. Goto www.cobwebinfo.co.za formore information.

HOW TO START

Trade Opportunities CentreThe Department of Trade and Industry (the dti ) through theTrade Opportunities Centre (TOC), assists South Africancompanies across sectors to identify international businessopportunities. The TOC is responsible for matching South

African exporters with international buyers seeking to purchasegoods and services.

The TOC offers the following services:

Match-Making - the matching of internationalbusiness opportunities to export-ready South Africanenterprises; and

Trade Lead Bulletins - the weekly publishing and

distribution of international business opportunities toSouth African enterprises.

To subscribe to the dti Trade Lead Bulletine-mail: tradeleadbulletin@thedti.gov.za

For more information, contact: Percy Ngobeli, Tel: (012) 394 5792 or e-mail: PNgobeli@thedti.gov.za orMartha Mahlangu, Tel: (012) 394 1179 or e-mail: Martham@thedti.gov.za

the dti , empowering industries andbroadening economic participationthe dti Customer Contact Centre: 0861 843 384Website: www.thedti.gov.za

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page 14 - July 2014 ADVERTISING FEATURE SMALL BUSINESS CONNECT

Making business in theWestern Cape better together

Businessdevelopmentmust replacestrict regulation

BY VUYO MABANDLA

BUSINESS registration and basicsupport processes by governmentneed to be sped up so thatentrepreneurs have more time togrow their businesses.

This was the call made bySolly Fourie, head of the WesternCape Department of EconomicDevelopment and Tourism.

Fourie says the recently-established Ministry for SmallBusiness Development shouldwork to address existing red tapechallenges in the business sector.

As the main guest speaker at theHookUp Dinner Cape Town held atthe Centre for the Book last month,Fourie shared insight on issues suchas how startups can make use of

business support structures in placeto help them grow.

The regular networking session,started by entrepreneur Selebogo

Molefe and supported by South African Breweries, holds regulardiscussions and on-the-spotpitching sessions for youth-ownedbusinesses.

Aspiring and establishedbusiness owners attended thesession hoping to receive and sharetips on the latest business trendsfrom both the private sector andthe government. Fourie says thedepartment struggled to supportthose businesses that were notregistered.

The new ministry must addressmatters effectively at a national level.It must in uence regulatory processto support the already notable rise inthe number of new enterprises in thecountry, he says.

He believes that this can only

be achieved if both big and smallbusinesses also play a collaborativerole in the economy .

He says problems around

tax clearance, legislation andcompliance are some of the issuesthat the ministry should attend to.

We need to speed upprocesses. For example, theamount of paperwork involved andresponse periods by governmentdepartments must be reduced. Weas a department have managedto launch various programmesthat address funding, market andprocurement challenges for service

providers in the province. This needsto be taken to a much larger scale,he says.

He says the department will

soon meet with small businessdevelopment minister Lindiwe Zuluto discuss these matters.

They are likely to discuss issuessuch as how to create more supplierdevelopment opportunities throughthe incubation of small enterprisesin poor communities. EntrepreneurBuhlebenkosi Mkoko, who runsfashion stable Dalavega Creationsfrom his home, says when hestarted his business, he struggled

to obtain incubation space as hewas still in the process of registeringhis business.

I had not yet received my

company registration documentsand could not apply in time for freeoperating space for my business,he says.

Fourie says more awarenessis also needed to educate youngentrepreneurs on opportunitiesavailable in the private andpublic sector.

Thats why the departmentis looking at ways to introduceentrepreneurship to all schools. We

see a new breed of unique businessmodels coming up all the time.

These models must be explored andsupported, he says.

Entrepreneur Selebogo Molefe speaking at the networking session he founded with South African Breweries.

Growing your businessthrough partnerships

BY VUYO MABANDLA

INFORMATION sharing and forgingstrategic partnerships are key togrowing a business.

So says Alana James, owner ofcommunications company GeckoConnect, during a recent addressat the Women Entrepreneurs on theRise conference held by Old Mutualin Cape Town.

James was one of the keynotespeakers at the conference whichwas hosted in May and supportedby Nedbank and the WesternCape Department of EconomicDevelopment and Tourism at theOld Mutual Park in Pinelands.

The event was attendedby women business owners,

with talks given by motivationalspeaker Roxy Marosa and UK-based business coach JasmineGrindlay. The departments supportfor the conference forms part ofits mandate to offer assistanceto business owners throughnetworking sessions.

Entrepreneur and conferenceorganiser Ange Busaka says theaim is to raise awareness amongwomen entrepreneurs to an existingtrend of sharing information onprivate sector and governmentbusiness support initiatives.

Many women businesses faceserious challenges which couldbe remedied by building businessrelationships and networking atenterprise development events tosource information, says Busaka.

One could check up on whatis the latest in their respectiveindustries through the internet,word-of-mouth, newspapersand television programmes. Thisway you nd yourself buildingrelationships that you could use to

grow your enterprise.Some of the main discussions

at the conference focussedon the lack of growth in somewomen-led businesses and thefailure of entrepreneurs to spotmarket trends.

James says she believes the

key to success among women-owned enterprises is the exchangeof relevant information.

After attending internationalbusiness conventions she says shewas able to acquire informationfrom industry experts that helpedgrow her business.

In turn, I shared informationwith other businesses. Businessgrowth depends highly on theintricate use of information. I havepreviously been invited to businessgatherings to network and thatadded value to both my businessand my clients, she says.

She referred businesses tothe support of organisations likethe Cape Regional Chamber ofCommerce and Industry which

occasionally hosts discussions byvarious business stakeholders.

Tatende Zingoni, a businessdevelopment researcher, explainedhow businesses can also securetheir growth by supporting thedevelopment of their respectivecommunities through incentives like

basic skills promotions.Many entrepreneurs nd it

advantageous to equal the growthof their companies with the skills

promotion of their communitymembers. This way you canemploy a skilled person (from yourcommunity), he says. NontsikeleloMgayiya, director and founder ofIsithembiso Suppliers, says startingher construction business in 2004was a big challenge.

Women in the constructionindustry struggle many timesto acquire useful support andinformation. Hence, I have gone on

to empower women professionalsby employing, skilling and upliftingthem to contribute to the industryand gain respectable positions,says Mgayiya.

Busaka urged womenentrepreneurs to support eachother by sharing ideas.

Ange Busaka organised the Women on the Rise conference.

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WC creating linkages for buyers and sellersBY VUYO MABANDLA

SOME 500 local suppliers in theWestern Cape can now enlist on anintegrated electronic procurementnetwork, following the launch ofthe Western Cape Departmentof Economic Development and

Tourisms (DEDAT) access tomarkets programme.

Supply Chain Network,which uses an online system toconnect buyers and sellers, hasbeen appointed to manage theprogramme. Launched in 2012,the procurement portal is currentlyused by over 3 000 buyers who caninstantly source services from anyof the portals 20 000 small suppliermembers, says the portals directorMalcom Farrell.

The department says theprogramme will offer small enterprisesexposure to potential buyers.

The programme assists smallbusiness owners to receive noticeson tenders, quotations and invoicingfacilities and acts as a marketplacefor businesses to sell their services,it says.

Farrell says many businessesstruggle to join procurementdatabases because of such things

as lengthy application processesand long response times.

To join the online portal, suppliersmust be quali ed in their respective

eld of work, and their businesses

must be registered and compliantwith industry protocols.

A lot of suppliers struggle tounderstand the signi cance of being

a compliant supplier. There are manyregulations in place that businessesshould take note of, says Farrell.

These regulations include

routine registration validation bythe Companies and IntellectualProperties Commission (CIPC) andtax compliance checks by the South

African Revenue Service (Sars).By joining the network,

suppliers will be able to make onlinesubmissions on quotes and invoicesin a matter of seconds.

Cape Town business ownerSamanthia Olifant, who runsconstruction and building servicescompany Spotless Sam, was alertedto the initiative when she received acall from the department informingher about the opportunity.

She says before joining theprogramme she had struggled tomarket her business and apply forgovernment tenders.

Since registering on the portalshe has been in contact with variousbig businesses.

We have been approached bya division from Eskom to registeron their database. We have alsobeen approached by someone fromJohannesburg to paint their atwhich is in Cape Town. I also receiveonline daily notices from the WesternCape government on quotationsand tenders she says.

Registered members cancreate and manage their owncompany pro les, while marketingtheir services to big corporates bypublishing their compliance levels.

Monthly membership fees for the

portal amount to R195 per monthor R2 340 per year, says Farell. Butthose companies accepted intothe programme will only have tocontribute R65 a month (or R768per year). Contact DEDAT on

021 483 9026 .

www.SmallBusinessConnect.co.za ADVERTISING FEATURE July 2014 - page 15

Western Cape Feature

Fund helps toexpand business

BY VUYO MABANDLA

STRAND-based entrepreneurStephen Manual has been able toincrease his staff complement byemploying local skilled workers athis panel-beating business afterreceiving R50 000 from the WesternCape Department of EconomicDevelopment and Tourism's(DEDAT) Enterprise DevelopmentGrant Fund (EDF).

The EDF is an initiative of thedepartment.

The initiatives aim is to supportqualifying small business ownersacross va