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FeBRUaRY 2o13Why EmErging markEt EntrEprEnEurs should look to silicon Wadis, savannahs, and tigErs

In the innovation hubs and entrepreneurship circles of emerging

economies, the term “Silicon Valley” is an extraordinarily potent one,

evoking rich emotions and idealistic notions. Visions of big ideas

launched by bold entrepreneurs from beanbag chairs. A place where

investment flows like spring rain and 24 year olds become titans of

industry.

In the startup ecosystems of emerging economies, Silicon Valley is

studied, revered, respected and admired. “A Silicon Valley entrepreneur/

investor is coming to meet us?” Eyes light up. “In Silicon Valley…” You

have our attention.

Yet my friend Mbwana Alliy, a former –yes, Silicon Valley - entrepreneur

who now manages Savannah Fund, a Nairobi-based seed capital fund

specializing in high growth technology, has told me repeatedly that

Silicon Valley is not a place, thing, or specific model.

“It’s a concept” Alliy says, a “set of principles.”

The Silicon Valley approach rewards and encourages extreme risk

taking, accelerating potential high net worth companies by splashing

large amounts of cash across several ideas with the hope that one in

a hundred succeeds.

Yet Silicon Valley is a long way both in physical proximity and context

from the world’s new centers of innovation. It offers a very different set

of social, cultural, economic and even legal conditions and constraints

than the emerging markets of the world.

In this final installment of our three-part series comparing the vibrant

coNTENT

JoNAThAN KAlAN

1

1 Why Emerging Market Entrepreneurs Should look to Silicon Wadis, Savannahs, and Tigers

3 Innovative Upstart Entrepreneur vs the Resourced Big Players

3 SA Needs Entrepreneurship Ministry and Academy

5 challenges, opportunities and Innovations for Emerging Agric Entrepreneurs

6 African SME’s operating Internationally Prosper, Study find

7 Brics Summit to Benefit the Rest of Africa: SA Minister

8 10 Business lessons for the Young Entrepreneur

9 South Africa’s hi-Tech Tour operator

11 Why African Tech Entrepreneurs Need to learn from Each other

12 Anglo’s Zimele helps SMME

14 NGo creates 70 000 Jobs

15 Doors of hope open for Mackenzie Youths

17 Study Shows Mobility can Increase per capita Growth

18 Nigeria: We Need More Youth Entrepreneurs in Nigeria – INTEl.

21 Unemployment Rate on the Rise, Entrepreneurship Encouraged

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startup environments of Amman, Jordan, and Nairobi,

Kenya, I’d like to explain the ultimate point of this little series;

We need to forget about the valley, and start looking at

the wadis, savannahs, and tigers.

What I mean is that technology startups and entrepreneurs

in emerging markets need to begin looking outwards, and

at each other, for inspiration, ideas, and guidance.

Looking East

We saw that in some regards Jordan looks more like Kenya

than Silicon Valley, and that despite certain differences

in entrepreneurship ecosystems and cultures, thee two

places have quite a lot in common. And why shouldn’t

they?

Emerging economies around the world, specifically in

Africa and Asia, are becoming key drivers of new global

economic growth, transforming the global balance

of power as their rising middle classes and hungry

workforces create billions of new consumers and potential

employees.

Yet their barriers to entrepreneurship are often universal:

Unemployment. Talent gaps. Broken education systems.

Absent or risk-averse capital. corruption. Murky business,

bankruptcy and investment laws. The list goes on.

Because of these unique challenges, mostly absent in

Silicon Valley, places like Kenya and Jordan in Africa and

the Middle East have more reason to look at each other,

or India, china, and the east Asian ‘tigers’ to learn how to

build ecosystems.

India’s model of outsourcing might not map directly onto

Kenya’s IT sector, while china’s model of iterating quick,

less expensive versions of new global products, may not

be a tactic that Jordan will directly aim for.

But the ways that these ecosystems build and scale

companies while training and nurturing talent could be

useful to learn from. companies that are flourishing in

today’s emerging economies have done so because

they have either pioneered their own models, or adapted

Silicon Valley concepts to fit their specific circumstances.

Innovation in Localization

The point is simple: Silicon Valley certainly has valuable

lessons to be learned and shared, and sound principles,

theories and strategies that can be tested globally. But,

as the developing world looks to solve its own problems

and address specific needs, new models of innovating by

localizing will rise.

The relevant questions become: What could Kenyan

e-commerce startups learn from Jordan’s MarkaVIP or

Dubai’s Souq? What could Jordanian mobile startups learn

from the success of Kenya’s M-Pesa, or the companies

filling Nairobi’s M;lab incubator? how could Ushahidi’s

crowd-mapping platform exchange knowledge with

incident monitoring platforms like 7arat.com in Jordan or

harass Map in Egypt? What could a Nigerian agricultural

entrepreneur learn from a successful seed distribution

company in Kenya? The list goes on.

I want to see more Kenyans in Jordan, and Jordanians in

Kenya. I want to see Rwandans learning from Nigerians

and Egyptians learning from Pakistanis. I want to see the

same excitement and enthusiasm when a successful

Indian or chinese entrepreneur walks through the door as

I see when someone visits from Silicon Valley.

I want to see entrepreneurs looking at cases of success

and failure from Accra to Karachi, Freetown to Kigali, and

from Amman to Nairobi, that may be offer more relevant

instruction for emerging economy entrepreneurs than the

rise of Facebook and Google.

And forget the “get-rich-quick” myths that perpetuate in

startup scenes. Building in an emerging market takes a

slower approach, one that builds up the entire ecosystem

instead of a single company, and one that is constantly

learning and adapting to the global marketplace.

Jonathan Kalan is journalist and photographer specializing

in technology, innovation and social development

in emerging markets. A graduate of the University of

california, Santa Barbara, he has traveled to over 43

countries and collaborated with NGo’s, social enterprises,

technology start ups, and media companies, and was

a Diageo Africa Business Reporting Awards 2011 Finalist. he

is currently based in Nairobi, Kenya, where he freelance for

various media outlets including BBc, huffington Post, and

cS Monitor, and also serves as Sandbox Network’s Nairobi

co-ambassador. he can be found on his website and on

Twitter at @KalanThinks.

Kalan, J. 2013. Why Emerging Market Entrepreneurs Should

look to Silicon Wadis, Savannahs, and Tigers. Wamda

[online]. 24 January 2013. Available at http://www.wamda.

3Empowerment Through Entrepreneurship

FeBRUaRY 2o13

com/2013/01/why-emerging-entrepreneurs-should-

look-to-silicon-wadis-savannahs-and-tigers [accessed 7

February 2013].

AccRA - So you own a small business and you have a

great and innovative idea. You realize though that you

need to form strategic partnerships with larger businesses.

So you identify the right partners, they endorse your idea

and your business is a huge success.

This is the ideal scenario and if the right approach is taken,

it’s often what ends up happening. Sometimes though

things don’t go so well and small businesses end up with

no partnership and someone else taking control of their

ideas.

one of the most well-known cases of big business stealing

from an entrepreneur occurred in the 1970’s. Robert

Kearns, a former mechanical engineering professor at

Wayne State University in Detroit, Michigan approached

Ford Motor company and chrysler corporation with an

idea that he had.

Kearns had developed intermittent wipers for cars

and wanted to partner with auto manufacturers to

commercialize the technology. Ford and chrysler however

were hesitant to enter into the partnership because Kearns

wanted to be able to manufacture the windshield wipers

himself (and most likely maintain control of his idea). So

what ended up happening? The auto manufacturers

produced the windshield wipers on their own, violating the

terms of the discussions Kearns had previously had with

them and also infringing on the patent that he’d filed on

his invention.

These actions sparked a court battle which dragged

on from 1978-1990 between Kearns, Ford and chrysler.

Kearns eventually won a settlement and recognition for

his invention, but in the process he lost money, his family

and his dream morphed into what some would call an

obsession.

Kearns’ story has become one of the best known patent

infringement cases in recent history. Though Kearns’ story

may represent an extreme example of what can go

wrong, it does highlight the need to tread cautiously when

entering into partnerships with other businesses, particularly

very large and powerful corporations. It is important to

conduct the necessary due diligence when approaching

these negotiations.

You must identify what kind of track record the entity

you’re considering in its partnerships and clearly identify

what each of you stand to gain as well as your incentives

to comply with the agreement. It is also important to seek

appropriate legal counsel and have a clearly defined

agreement to which both parties agree to adhere.

This applies when the partnership is formalized and in

the early stages when an idea is being pitched. Keep in

mind though that you must strike a balance. You want

your potential partners to be aware that they need to be

transparent, but at the same time they are often bigger

and more powerful than you are.

The immediate gain of the partnership will most likely be

in your favour, hence it is imperative to ensure that your

approach does not put them off from the very beginning

and preclude any potential discussions.

Juliana Taylor is the founder of Start Smart Ghana ltd. She

can be contacted on email info@startsmartgh.com

Taylor, J. 2013. Innovative upstart entrepreneur vs the

resourced big players. Entrepreneurship Africa [blog]. 24

January 2013. Available at http://entrepreneurshipafrica.

com/business-resources/experts/innovaive-upstart-

entrepreneur-vs-the-resourced-big-players.html [accessed

7 February 2013].

SoUTh Africa’s efforts to promote small business and create

jobs are not succeeding, and a ministry and academy

innovativE upstart EntrEprEnEur vs thE rEsourcEd big playErs JUlIANA TAYloR

sa ‘nEEds EntrEprEnEurship ministry and acadEmy’ EDWARD WEST

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should be created for the sector, Prof Dilip Garach, of

Garach & Garach Financial Advisory Services, said on

Wednesday.

Mr Garach said at a function of the Sanlam/Business

Partners Entrepreneur of the Year competition that the

government ministry should be created because Finance

Minister Pravin Gordhan and Trade and Industry Minister

Rob Davies did not have enough time to deal with a sector

that had the best potential to tackle unemployment in

South Africa.

Mr Garach said the youth wage subsidy was likely to result

in companies employing fewer older workers in favour of

younger workers, the African National congress’s proposed

job seekers’ grant was likely to be abused by its recipients,

and while the government’s jobs fund had enjoyed some

successes, it entailed extraordinary red tape to access the

financing.

Mr Garach said the impact of small business on growing

unemployment was indicated by gross domestic product

(GDP) growth in Uganda, china and India, which averaged

9%-10% between 2001 and 2011, while South Africa’s was

2.5%.

of these countries, Uganda had the lowest unemployment

rate, at 3%-4%, and the highest percentage of entrepreneurs

versus its population, at 27%-28%.

china and India’s percentage of entrepreneurs was 13%

and 15% respectively, while for South Africa the figure was

only 2.3%.

“Government can’t create sustainable jobs,” Mr Garach

said.

There needed be a “radical change” in the way the

government stimulated the development of small

businesses, he said.

christo Botes, executive director of Sanlam/Business

Partners Entrepreneurs of the Year competition said 45%-

50% of South Africa’s GDP was derived from small business,

and the aim of the National Development Plan was that

by 2030, small business should account for 90% of all new

jobs created.

he said there were only 1.5-million small businesses in

South Africa, and 1-million of those employed fewer than

five people each.

Mr Botes said a culture of entrepreneurship needed to be

fostered in South Africa, to replace the culture of relying

on a job for financial survival.

Mr Garach said the cost and red tape associated with

doing business in South Africa needed to be simplified and

reduced.

It took six months to register a business, he said, while

registering for value-added tax (VAT) was a “nightmare”

that involved a face-to-face interview and “silly questions”.

Similarly, the red tape associated with registering with the

Unemployment Insurance Fund, for pay as you earn tax

(Paye), income tax and the workman’s compensation

fund was immense.

he said there were also invariably penalties and interest to

pay if the growing number of government forms were not

completed.

Entrepreneurs then also work with complex labour laws

and with the trade unions.

Dealing with other taxes such as the proposed National

health Insurance and local government taxes were

additional administrative burdens.

There were also complicated black empowerment and

employment equity issues that needed to be dealt with,

Mr Garach said.

he said the administrative cost of doing business needed

to be reduced, and the tax and business registration

system needed to be simplified for entrepreneurs.

A school of entrepreneurs should be established, there

should be incentives for entrepreneurs and the labour

market should be liberalised for the small business sector,

he said.

West, E. 2013. SA ‘needs entrepreneurship ministry and

academy’. BDlive [online]. 7 February 2013. Available at

http://www.bdlive.co.za/business/2013/02/07/sa-needs-

entrepreneurship-ministry-and-academy [accessed 7

February 2013].

5Empowerment Through Entrepreneurship

chief among complaints made by Nigerians in the

agricultural sector is the abundance of information

gaps, which makes coordination among stakeholders

very difficult. This is because many stakeholders do not

know where the opportunities are and, as such, cannot

exploit them. Additionally, in a knowledge-based field

like agriculture, the lack of knowledge on trends and

techniques has very costly implications. Finally, symbiotic

relationships, which are formed when like-minded

individuals are able to connect, pool resources and

maximise returns/outcomes, are often difficult to obtain.

In light of this, a group of individuals has taken the

initiative to create an online community of knowledge

for all stakeholders and key players in the agriculture

industry. This serves to provide content management,

knowledge sharing, networking and business

matchmaking opportunities for existing and emerging

agribusiness entrepreneurs looking to share business

ideas and innovative technology or invest and/or

buy products within and beyond borders. This online

community of knowledge is called The Global Farmers

Register (globalfarmersregister.com).

leading the team is a young strategy and business

development professional, Simileoluwa lawson.

Graduating from the University of lagos with a B.Sc.

in Geography, lawson went on to work for Rimsom

Associates – an international trade consulting firm

with branches in Nigeria. At Rimson, he worked as a

brand custodian and later on as a senior associate on

economic planning. While at the firm, he worked on

the annual trade-related conference – Partnership on

Trade Industry and commerce (PoTIco) – which was a

collaboration between the US ambassador to Nigeria

2007-2010, the Bank of Industry, and First Bank of Nigeria

plc.

Notable among the successes recorded by PoTIco is

the landmark AcET meeting with the oyo State Ministry

of commerce and the West Africa Trade hub which

formed a public-private partnership, integrated the

AcET cashew processing plant with that of oyo State,

and ultimately created jobs for 2,500 people. Another is

the launch of the US Bank of Industry/Agriculture Growth

opportunity Act (BoI AGoA) Resource centre, which

has helped Nigerian businesses better utilise the AGoA

resources available to them and access the US market.

Finally, with all the experience and expertise lawson and

his partners gained on their numerous projects, it is safe

to say that The Global Farmers Register is an offshoot of

the PoTIco project.

With no previous background in agriculture, lawson

revealed how he became interested in agriculture. “It

all started with PoTIco,” he said. “We had to research

extensively on areas of mutual interests for Nigeria and

some developed economies. The focus was on developing

the non-oil sector and the research was extensive. At the

time, there was not a lot of noise about agriculture, but

my team and I were able to determine that it was the

largest sector that held the most promising opportunities.

Trying to focus on those opportunities, however, became

a challenge because people were more focused on

discussing the challenges in the sector.

“What I was able to get out of those conferences and the

research in particular was that we needed an organised

body of knowledge that will cater to all concerned. As

we all know, knowledge is dynamic. As such, the best

way to get real-time knowledge was to create what I

call an agric-business destination that is interactive and

inclusive, where individuals can contribute experiences

from their wealth of knowledge or share real-time

experiences of challenges they just overcame. This

was also intended to be an avenue for disseminating

information on opportunities in the agricultural space

irrespective of political boundary lines between countries.

If we share knowledge about these challenges and

their accompanying solutions, other people in different

regions but perhaps with climatic, geographical,

topographical and technological challenges can learn

from our experiences and avert such problems before or

when they surface.”

on how he founded The Global Farmers Register,

lawson said: “I have a constant yearning for cutting

edge strategies and also a penchant for generating

volumes in business. I strongly believe that we do not

have to re-invent the wheel each time in order to create

opportunities; if we tweak it well enough, we can cater to

multiple needs. That was how The Global Farmers Register

challEngEs, opportunitiEs and innovations for EmErging agric EntrEprEnEurs TUKENI oBASI

FeBRUaRY 2o13

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was conceived. We started first with a simple register or

database as you may call it, but eventually it has evolved

into a full community with a database covering over 50

countries, though we have little participation in some

countries recorded. We only just recently launched the

beta version which has come equipped with so many

agric-business tools. We are currently getting ready

to launch our inclusive agric financial tool called the

timeline matrix, which allows agric businesses to set up

virtual value chains and submit them to banks as an

automated loan application. We are looking to partner

with the African Rural and Agricultural credit Association

(AFRAcA) to deploy this around Africa.”

In 2012, lawson was invited to the UNDP/EMRc forum

in Dakar where he passionately advocated for youth

engagement in agriculture through integration,

information and inspiration. Earlier in the year, he was

at the 5th AFRAcA Agri-banks Forum in Kigali, Rwanda,

speaking on the need to unlock finance for the

agricultural sector through innovative IcT systems. his

presentation focused on strategies for rural outreach,

market access, information dissemination and inclusive

agricultural financing. As a business professional, he has

seen the opportunities and prospects. Back at home, he

manages the Frebay International company limited,

providing strategy and logistics supports (including

need-based assessments and opportunity charts) for

businesses, advising them on how to best maximise

economic returns with limited resources.

This is why The Global Farmers Register is important and

the potential it promises for all stakeholders in the sector

is enormous. More will be said about lawson, agricultural

opportunities and challenges for entrepreneurs in my

next article (next week Thursday). As a young Nigerian

under 30, lawson is a testament to the fact that there

are passionate Nigerians who are working within and

beyond agriculture to make a difference to society. They

recognise prospects, create opportunities, advocate

change, and put their money where their mouth is. And

they continue to serve as role models to other young

people who are still unsure of how they can engage

with society, exploit their seemingly meagre resources

and connect with external opportunities. They remind us

that we might not see the big picture yet or believe in

a national transformation agenda but in their own little

niches and in big and small ways, some nagropreneurs

are transforming Nigeria.

obasi, T. 2013. challenges, opportunities and

innovations for emerging agric entrepreneurs. Business

Day [online]. 7 February 2013. Available at: http://

www.businessdayonline.com/NG/index.php/analysis/

commentary/51207-challenges-opportunit ies-and-

innovat ions - fo r-emerg ing-agr ic -ent repreneur s -1

[accessed 7 February 2013].

A NEW study for global courier and logistics group Dhl

Express finds that small and medium African companies

engaged in international markets are prospering in the

“global village”.

of the companies surveyed, 26% of companies trading

internationally “significantly outperform their market”.

This compares to 13% of those with operations only in

their home country.

But the continent’s aging infrastructure, high customs

duties and poor-quality data on trade were found to

hamper small and medium enterprises (SMEs). They

also cited difficulty in establishing contacts with foreign

partners, and in creating an overseas customer base.

conducted by multinational information company IhS,

and released on Monday, the study showed international

trade had become a “key driver” of the success of

SMEs.

It also found there was a growing focus on promoting

Africa’s international trade.

charles Brewer, MD for Dhl Express sub-Saharan Africa,

said the study reflected the outlook for SMEs in Africa.

“The possibilities opened up by new technologies, the

internet, and modern transportation means that there

are many foreign trade opportunities out there for

African businesses,” he said on Monday.

SMEs cited the key benefits of an international approach

as “access to new markets”, as well as access to “know-

how and technology”, and “diversification” of their

african smEs opErating intErnationally prospEr, study find

MARK AllIx

7Empowerment Through Entrepreneurship

products or services.

The macro-economic analysis and survey of 410 SME

directors in Group of Seven (G-7) countries and Brazil,

Russia, India, china and Mexico indicated that SMEs

engaged in international markets were twice as likely to

be successful as those that only operated domestically.

The study, conducted between September and

November last year and based on three-year average

annual growth rates, focused exclusively on businesses

with between 10 and 249 employees, and annual

turnover of less than €50m. It excluded “micro enterprises”

with less than 10 employees.

Most of the better-performing SMEs identified in the

study employed more than 50 people, underscoring the

importance of human resources in overcoming barriers

to international growth.

SMEs in Africa were increasingly being recognised as

drivers of economic growth. While the study said no data

was available for the number of SMEs operating on the

continent, they made up more than 90% of formalised

business in countries such as Ghana and South Africa.

The research also found that SMEs founded in the last

five years were more likely to have international business

operations than older SMEs.

Significantly, the study said the majority of SMEs who had

outperformed their markets indicated they also planned

to further increase exports over the next three years,

despite the uncertain economic environment.

Allix, M. 2013. African SMEs operating internationally

prosper, study finds. Business Day [online]. 5

February 2013. Available at: http://www.bdlive.

co.za/business/2013/02/05/afr ican-smes-operating-

internationally-prosper-study-finds [accessed 8 February

2013].

Polokwane - The 5th Brics Summit, to be hosted in South

Africa in March this year, is expected to benefit the

entire African continent, says Minister in the Presidency

brics summit to bEnEfit thE rEst of africa: s.a ministEr MohlATlEGo MoITSI

FeBRUaRY 2o13

for Performance Monitoring and Evaluation, collins

chabane.

chabane was speaking during the first Brics [Brazil,

Russia, India, china and South Africa group of countries]

roadshow held in Polokwane, limpopo province, on

Wednesday.

As part of the build-up towards South Africa’s hosting

of the Brics Summit, government is hosting a series of

roadshows in all nine provinces.

“Although we do not represent Africa in Brics, but

represent the interests of our country, we still carry the

aspirations of all Africans from cape to cairo,’’ said

chabane.

The minister said it was important to harness the potential

of the African continent at summits like Brics, which will

be held at the Durban International convention centre

in KwaZulu-Natal on March 26 and 27.

“As such, African countries will be invited to partake

during the summit,” he said.

he added that the roadshows were aimed at getting

together provinces and stakeholders to make inputs in

hosting a successful summit.

‘’We are conducting these roadshows to interact

with societies, so that societies can understand the

challenges and opportunities faced by the Department

of International Relations [and cooperation] when they

interact with other countries,” he said.

chabane said although the formation of Brics has

helped to stimulate economic growth opportunities, the

establishment of the bloc hasn’t gone without criticism.

“People were criticising South Africa because countries

in Brics have well developed manufacturing sectors,

and they have huge and highly educated and skilled

populations,” he said.

chabane emphasized that Brics “is here to stay” and that

the five countries involved would form a Brics Bank that

would encourage these countries to share resources in

order to meet the Millennium Development Goals.

he said a ‘think tank’ would also be established, which will

consist of intellectuals from partnering countries to plan

and strategise on how best Brics can bring development

to the member countries.

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The minister said a Brics Business council would also be

formed to identify potential investment opportunities

and to intensify and build stronger relationships that

would see countries develop good infrastructure, which

can take the various economies to a higher level.

“The government aims to educate the nation about Brics

and its importance through workshops,” said chabane.

Deputy Minister of the Department of International

Relations and cooperation, Ebrahim Ebrahim, said the

department and the country stood ready to host the

Brics summit.

The theme of the summit is ‘Partnership for Development,

Integration and Industrialisation’.

Various activities have been planned, such as an

academic forum, business workshop for the ministers of

finance and cultural events.

In line with the promotion of regional integration, for the

first time, the summit has invited the African regional

economies as well as the African Union.

-SAnews.gov.za

Moitsi, M. 2013. BRIcS Summit to benefit the rest of Africa:

SA Minister. Entrepreneurship Africa [blog]. 23 January

2013. Available at: http://entrepreneurshipafrica.com/

business-resources/entrepnews/brics-summit-to-benefit-

the-rest-of-africa-s-a-minister.html [accessed 7 February

2013].

Fraser is involved in managing and assessing new

investment proposals for the venture capital firm, and

through her career has identified some philosophies that

may benefit young entrepreneurs, these include:

1. Don’t wait for an invitation

“No one is going to invite you to be a part of the South

African entrepreneurial ecosystem. If you want to be

involved, it’s important to be proactive. Join associations

and if there aren’t existing ones that are of interest to

you, start your own organisation.”

2. Love what you do, don’t do what you love

“Your job should always provide you with a sense of

fulfillment. however, this doesn’t necessarily mean that

just because you are passionate about something that it

will automatically translate into a successful business.”

3. Be a builder

“I’m happiest when I’m creating something. I love being

part of the Invenfin team and the Silicon cape Initiative,

because it involves working with and bringing together

people who are passionate about building the South

African entrepreneurial ecosystem by creating better

startups and increasing access to capital.”

4. What makes you tick?

Fraser believes each person should take the time to

determine how he or she makes decisions.

“When you’re looking for a potential investor, you need

to know what makes you tick. You’ll find that people

within your team will either make decisions with their

heart, mind or gut. None of these methods are right or

wrong, but it’s crucial that the team understands one

another and are all working towards the same goal.”

Fraser continued, “Don’t underestimate the role that your

gut feeling plays either. From an investor’s point of few,

a startup may tick all the boxes, but your chemistry as a

team is equally important.”

5. Do the hard thing for you

Starting your own business is a really difficult thing to do

– entrepreneurs need to be highly motivated.

“As a Vc firm, we often look for a personal investment

10 businEss lEssons for thE young EntrEprEnEur

NUR BREMMEN

Alex Fraser, Silicon cape chairperson and head of business development at venture capital firm, Invenfin, recently shared her business philosophies with an audience of young South African technology entrepreneurs at the cape Town Geek Girl Dinner.

9Empowerment Through Entrepreneurship

from the entrepreneur because we know the person will

be as serious about the success of the business as we

are.”

6. Be prepared

“The more research you do, the more confident you’ll

feel in an intimidating environment. Whether you’re a

woman in a male-dominated space or you have very

little experience in a particular industry; arming yourself

with information will only benefit you. Even just knowing

what you don’t know and what information you need to

gather is better than not being prepared at all.”

7. Default to ‘Yes’

“This is not about saying yes to every opportunity that

presents itself. As a Vc firm, we at Invenfin definitely

cannot say yes to every startup. Defaulting to ‘yes’ has

more to do with building relationships and networks. In

an industry built on forming partnerships and developing

new ventures, exchanging information and collaborative

relationships are critical to both personal growth and

business success.”

8. It isn’t instant pudding

“Building a business is not something that happens

overnight, it takes patience and a lot of hard work. What

makes it even more challenging is that there’s no recipe

you can follow.”

“This is also true for personal life choices. It is not a question

of having it all, as no man or woman can have it all, but

rather asking yourself what you would like to achieve and

going after that. This too can be challenging as there is

no recipe for life either.”

9. Broaden your horizons

You severely limit your business potential if you’re narrow-

minded and not aware of how it fits into the bigger-

picture.

“Many South African startups fail because they don’t

look at what their global competitors are doing.

Differentiating your business globally and ensuring

that your startup is internationally scalable is essential,

especially if you are looking for local Vc investments. The

South African market is relatively small and investors like

businesses which can scale to other countries.”

“For me, travelling has really broadened my outlook on

life – it’s important to know what’s happening in not only

your local market, but in Africa and globally.”

10. The importance of downtime

“Taking some time out to relax and do the things you

enjoy can be the best thing for your business. Downtime

allows you to clear your mind and deal with personal

matters so that you can focus on the task at hand when

you need to.”

Bremmen, N. 2013. 10 business lessons for the young

entrepreneur. Ventureburn [online]. 4 February 2013.

Available at: http://ventureburn.com/2013/02/10-

business-lessons-for-the-young-entrepreneur/ [accessed

7 February 2013].

Imagine being in a foreign country, sitting on a tour bus,

and having the possibility of borrowing a tablet computer

to get online and call home to tell your family about your

trip, or being able to charge your mobile phone while an

expert tour guide shows you around.

That is the kind of technological feat that won Shaheed

Ebrahim, owner of the Escape to the cape tour company,

the 2011/2012 Emerging Tourism Entrepreneur of the Year

award in South Africa.

last year, about 4.5 million tourists visited cape Town, so

there is fierce competition to attract customers from this

growing market.

FeBRUaRY 2o13

south africa’s hi-tEch tour opErator

BBc NEWS

Mr Ebrahim (second left) would like his company to go national

10

igniting potential

Empowerment Through Entrepreneurship

“There are hundreds of tour operators out in cape Town

but the difference is that we’ve taken technology that’s

available and put it onto our tours, thereby enhancing

the tours,” he told the BBc’s series African Dream.

“What’s the technology I’m talking about? Wi-fi on a

moving vehicle, so somebody could be taking a photo,

say of Table Mountain, and as you drive into the next

spot, they could be Facebooking it and Tweeting it, and

emailing it to anybody,” he explained.

he added that his company also provides customised

telephony applications on board.

“With Skype they could call whichever country they

want to. We’ve got applications for the US clients so they

can call a landline or a mobile number in the US from the

complimentary iPads that we have on the vehicle.”

Escape to the cape has also thought about something

which can be a real nightmare for tourists in many parts

of the world - finding the right adaptors for their electric

equipment.

“Every seat virtually has got a facility to charge any

device - whether it’s a cell phone, whether it’s an iPod or

iPad, whatever device that they have, and in all about

12 gadgets could be charged simultaneously,” the

entrepreneur said.

Besides the communication technology, there is also a

fridge on board for the clients to use, and he offers them

complimentary water or a taste of some of the world-

famous Western cape wines.

From banking to tourism

Mr Ebrahim knows from experience what visitors to a

foreign country usually expect.

After completing a Bachelor of commerce degree

in marketing, he worked for a few years in the United

Kingdom and travelled widely.

In August 2009, he left his job as a private banker when

he was asked to relocate to India - where the bank he

worked for was based - and was planning to open a

petrol station.

But his wife, knowing that he enjoyed showing visiting

relatives and friends around cape Town, advised him

to do an accredited tour guiding course, in time for the

football World cup which took place in South Africa in

2010, so that he could be part of the experience.

“In october 2009, I completed the course and started

guiding part-time till the World cup came, where I was

kept quite busy,” the entrepreneur remembers.

“It went so well that I continued but always having in the

back of my mind that this was only a part-time thing.”

however, inspired by his dream of being his own boss, his

flair for entrepreneurship and his love for cape Town, he

decided to start his tour company.

he spent around $4,000 (£2,500) to register it, get a

website and pay for marketing collaterals.

Mr Ebrahim then took out around $32,000 out of his

mortgage to buy a 7-seater vehicle to which he added

the latest gadgets.

“My medium-term plan for this business is to grow my

own fleet so that I can have more vehicles around cape

Town and my long-term plan is to actually go national,

around South Africa. I have had many private-equity

funders wanting me to go national,” the entrepreneur

said.

Calculated risks

Prashant Bajaj, an Indian tourist who was spending his

honeymoon with his wife Risha in cape Town, told the

BBc’s Mohammed Allie that it was the availability of the

latest technology that attracted them to use Escape to

the cape.

“It was very unique and I think it was very innovative for

someone to do that. The technology is really advancing,

and I think it’s a very good idea for him to incorporate

technology into tourism. I think it’s the best idea ever

because it makes life easier for us,” he said.

“In a sense, all of us carry our own cameras but it’s easier

to just upload them down the iPad and, while going, we

can view it even more efficiently so it makes life easier,

and through the wi-fi you can easily transfer the data

immediately on your laptop.”

So what advice does Mr Ebrahim have for people who

would like to start their own business?

“Follow your instinct, do some research but most of all

enjoy what you are doing, then take a calculated risk,”

he said.

11Empowerment Through Entrepreneurship

FeBRUaRY 2o13

“Without having a passion or enjoying what you’re

doing, getting up every morning wanting to do it, you’re

not going to succeed and I’ve had personal experience

of this.

“Secondly, it’s the perseverance because many times

you get into an industry - whether it’s tourism or anything

else - you get inundated and you get sucked into the

old industry that’s going on, and all the negativity, so

you need to persevere in terms of bad times as well, and

thirdly, you have to be innovative, you have to come up

with something different.”

BBc. 2013. South Africa’s hi-tech tour operator. BBc News

Africa [online]. 31 January 2013. Available at: http://

www.bbc.co.uk/news/world-africa-21262196 [accessed

7 February 2013].

learn. Teach. Two words that startups and members of

tech hubs should breathe and live out if they are to

succeed. having travelled to different hubs in Kenya

and Africa through an ongoing study by ihub Research;

‘Understanding African IcT hubs model and impact to its

startups/members’ , I can testify the modus operandi of

the startups in the tech hubs is akin. They are operating

in a high-risk environment, with little capital, a dearth of

business skills e.g. marketing; but are great techies who

can code in their sleep. What you might not know is that

most of them have experiences that in my opinion are

the most powerful assets to endure irrespective to the

success or failure of their startups.

I have listened to the experiences of other entrepreneurs

in the African tech hubs and as well as sharing with

them my experiences as an entrepreneur. one thing

the startups should know is that the experiences they

have are rich in serving as a learning platform that

helps them suppress their existing challenges and thus

help them to mature faster. This inadvertently acts as an

encouragement by enabling them to be ready to tackle

future challenges.

It is time startups start utilising their experiences to teach

other startups/members in the space who then learn from

their solutions/experiences in order to accelerate their

own growth by working smarter. This can be achieved in

different ways:

Curiosity:

Members in the hubs are friends and are mostly in track

with what each other is working on, their experience

levels, investments accrued, etc. They know all that. But

ironically, they do not bother to know what tools of trade

their colleagues are using, how they go about working

out tax matters, conducting intellectual property, what

project management practice works best for them,

how they conduct market research and what is their

experience in all the aforementioned.

This curiosity should spur peer learning that can lead to

new and creative ways of managing your business as

an entrepreneur, develop new instruments and options

incase what you are using does not work out. Success

is not only about being the most famous startup and

having a great product but also about getting the best

tools, a skilled team and proper structures. Startups can

only achieve this by being curious enough of what other

startups in the hub are doing.

Networking:

It has been articulated before that events in the hubs e.g.

workshops and hackathons have acted as a platform

for forming friendships, knowledge sharing and creating

new networks and collaborations. I do value the events

that many tech hubs have been working hard to hold

in order to educate, promote and inform their members

but what worries me is that there is often no consequent

feedback to find out if the events are of value and

how that value can be measured by their members. I

have heard very few startups saying they have gotten

actionable networks from events held in their hubs e.g.

investors and business deals in their ventures.

however, maximizing peer-to-peer learning is the best

way to leverage the networks of one startup e.g. If

startup A is looking for a tax advisor and through such

events they get to know that startup B has had one who

helped them go about tax aspects while billing clients,

salaries to optimize their cash flows, etc; they can then

ask the experience of startup B with the said tax advisor

leverage on the same network.

Why african tEch EntrEprEnEurs nEEd to lEarn from Each othEr Vc4AFRIcA

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igniting potential

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anglo’s ZimElE hElps smmEs

lUcIllE DAVIE

Mentoring:

When I was in high school, every time my Maths teacher

taught us vector equations, I chose not to understand

and had the mentality that vectors was a hard topic

and it did not help that I also disliked the teacher.

Ironically, when my desk mate and peer christine did a

few examples with me, and taught me, I found it so easy

and I ended up doing vector questions first thing in my

final exams and excelling at that!

We all to some extent loved group work while revising

for exams or doing projects as it made concepts easier

to understand by breaking the monotony of cramming

and initiating understanding, work was done more

creatively and in practice as compared to when doing it

individually or theoretically hearing it from the teacher.

Same applies to the startups in the hubs. They should

share their experiences with other startups in the hub

through a form of peer-to-peer mentoring. This is where

there is a personal development relationship where a

more experienced startup helps a less experienced or

less knowledgeable startup in a practical way. Through

utilizing peer mentorship in the startup ecosystem they

need not to wait forever for their hubs to get them sources

of advisors/mentors in order for them to surmount their

challenges.

By working on collaborative projects channeled by the

tech hubs, peer-to-peer mentoring can be injected by

letting them learn from each other and executing their

experiences on the projects. I believe that learning is

most powerful when it first starts with the members in

the space, treating each other as peers and learning

from each others experience as they keep evolving and

performing self-assessment on themselves.

My firm belief is that hubs should start empowering

individual startups, help them to solve their existing

challenges, and curate learning experiences then create

a ‘peer culture’ where once they build and develop

one startup, peer startups should be able to benefit

from the helped startup. This way, startups take peer-to-

peer learning to a whole new level with a surprisingly

low demand to money and time. The hubs management

should then act as facilitators to ensure there is training,

reviews and approval, recommendations, controls e.g.

templates, standards, guidelines and support in the peer-

to-peer learning culture.

Developing a peer-to-peer learning culture is important

and beneficial to the members/startups in the tech hubs

as long as it is also creating value as the benefits can

lead to increase in creativity, innovation and create a

true learning and growing hub. Startups should often ask

themselves, “how do I learn more and perform better

and help others to learn more and perform better?”

It can be said that the journey to a successful tech

community begins with the development of one startup

by its hub.

This article by hilda Moraa Morara originally appeared

on Vc4Africa, a Burn Media publishing partner.

Vc4Africa. 2013. Why African tech entrepreneurs need to

learn from each other. Ventureburn [online]. 11 January

2013. Available at: http://ventureburn.com/2013/01/

why-african-tech-entrepreneurs-need-to-learn-from-

each-other/ [accessed 7 February].

Mining giant Anglo American has not forgotten the little

guys – its enterprise development arm Zimele is lending

a hand to small and medium enterprises, helping them

to grow.

With a little help from Zimele, protective clothing

manufacturer Bustique 244 has seen its fortunes soar over

Mampho Selokoma, the enterprising owner of Bustique 244.(Image: bbqonline)

13Empowerment Through Entrepreneurship

FeBRUaRY 2o13

the past year or so.

“Previously, my company was faltering and not operating

profitably,” says owner Mampho Selokoma. “however,

acquiring Zimele’s assistance has significantly improved

my business model, enabled quicker turnarounds, and

set me on the road to profitability.”

Zimele has been running since 1989 and supports

sustainable small and medium enterprises, particularly in

rural and peri-urban mining communities.

over a four-year period it has provided R567-million

(US$64-million) in funding to black entrepreneurs. Some

1 085 companies have received support through 1

481 loans, collectively employed 19 575 people, and

achieved a collective annual turnover of R2.4-billion

($270-million).

Breaking into the market

Bustique 244 manufactures quality and tailor-made

protective clothing, primarily boiler and conti suits, used

in the mining and construction sectors. A conti suit is a

two-piece workman’s overall.

The word zimele comes from Zulu and xhosa and means

“to be independent” or “to stand on one’s own feet”.

“This support has also enhanced Bustique 244’s future

prospects, as doors have been opened recently for

potential orders with Anglo American’s supply chain,

including its Kumba Iron ore, Platinum and Thermal coal

businesses,” adds Selokoma.

Selokoma says she has been in business since 2006, after

extensively researching the protective clothing industry.

Spotting a gap, she started small but in the past year or

two she has been able to scale up with assistance from

Zimele and the Department of Trade and Industry (DTI).

“While Bustique 244 demonstrated great potential, the

company was faltering because its owner Mampho

Selokoma lacked the business experience, skills and

financial resources to break into the market and achieve

long term gains,” says Dr lia Vangelatos, acting head of

Zimele.

“Zimele identified that it could make a real difference

in the prosperity of Bustique 244, by offering financial

support, as well as mentorship in key facets of her

business.”

Bustique 244 satisfied Zimele’s key criteria: that it has the

capacity to grow substantially, and that it will create

employment within the sector.

“As such, Zimele is highly satisfied with what Bustique

244 has achieved thus far, as the company has not

only gone from strength to strength, but has made real

difference to the prosperity of the local community,”

adds Vangelatos.

Zimele provided a loan of R809 000 ($91 000) to Bustique

244 in 2011 – this enabled the company to take on an

order from construction company WBho, which built

three of the 2010 World cup stadiums and is involved in

the King Shaka Airport in Durban, the Gauteng Freeway

Improvement Project, and the ongoing Kusile Power

Station, among others.

The DTI has provided a R1-million loan ($112 000) to

Selokoma for machinery.

Secret of success

Selokoma was born in Soweto, and holds qualifications

from the Wits Graduate School of Public Development

Management, and the Graduate Institute of Management

Technology.

She has worked in the retail banking, corporate and

tourism sectors, in particular Pepsi cola International,

South African Breweries, Katekane Investments, and

South African Tourism, for the past 20 years.

her secret to success is that she has been scrupulously

careful about paying back the loans as soon as she

receives payment from the contractors.

“They know we are reliable, and like what we are doing,”

says Selokoma. She sees reliability as her competitive

advantage, together with the good quality of her

products, and delivering on time. This has given the

confidence to apply for more loans in the future.

Selokoma employs four permanent staff, and takes on

extra workers on a contract basis. She operates in the

Northern cape and Gauteng, and recently offered

80 workers temporary contracts in the cape. She is

confident that as the company grows she will take on

more permanent staff.

14

igniting potential

Empowerment Through Entrepreneurship

ngo crEatEs 70 000 jobs

IAFRIcA.coM

“We are growing in leaps and bounds. We can market

freely, knowing that the future is good,” she enthuses.

Selokoma was invited to speak at the 2012 Enterprise

Development conference, held in Midrand in November.

She saw it as an opportunity to “provide a considerable

boost to her career aspirations, but inspire others to

match her business achievements”, according to the

BBQ website.

Four funds for businesses

Zimele has four funds that focus on emerging black

businesses. The Supply chain Fund focuses on

procurement and business development opportunities

for black-owned and managed SMEs within Anglo

American’s supply chain.

The Khula Mining Fund manages mining-related

investments as a joint initiative with Khula Enterprise

Finance limited, a government entity that promotes SME

development.

The community Fund supports entrepreneurs and small

businesses in the communities in which Anglo operates,

by means of loan finance and hands-on guidance and

support from a network of small business hubs.

The Green Fund targets investment opportunities

that specifically focus on environmental risks and

improving the long-term environmental welfare of local

communities. Areas of particular focus include reducing

carbon emissions, energy and water consumption, and

improving waste and emissions management, as a

contribution to sustainable development.

Read more: http://www.mediaclubsouthafrica.com/

index.php?option=com_content&view=article&id=3241

:anglo-zimele&catid=45:economynews&Itemid=114#ixzz

2KDW9fblV

Davie, l. 2013. Anglo’s Zimele helps SMMEs.

MediaclubSouthAfrica.com [online]. 4 February 2013.

Available at: http://www.mediaclubsouthafrica.com/

index.php?option=com_content&view=article&id=32

41:anglo-zimele&catid=45:economynews&Itemid=114

[accessed 7 February 2013].

Not many companies in South Africa, and even fewer

NGos, can lay claim to a contribution of more than 70

000 jobs created and over R5.6-billion contributed to the

country’s GDP. The Tourism Enterprise Partnership, widely

known as TEP, is possibly the only NGo that can not only

make this claim, but have had it independently audited

and verified by SizweNtsalubaGobodo.

chief Executive of TEP Dr Salifou Siddo stated emphatically:

“A key pillar for job creation is the development of

entrepreneurship. TEP supports this by providing SMMEs with

access to information, skills, markets and finance. Strong

partnerships are required for expanded growth and TEP’s

Enterprise Development Portfolio (EDP) offers a proven and

sustainable solution that allows any interested organisation

to invest their ED funds with TEP. The investing partner will

earn upfront B-BBEE points for Enterprise Development

and with business development offices situated in every

province; TEP has the infrastructure to expand investment

contributions to the most remote areas in SA”.

Although TEP is in part funded by National Department of

Tourism, it still has to source a major part of its funding from

the private sector.

Peter-John Mitrovich, General Manager of Grosvenor

Tours, said: “As an organisation that showcases the

beauty of the Southern Africa region, it was vital to our

integrity as a Southern African Tour operator to give

back to the communities, the environment, the people

and the places that make this a top holiday destination.

We take the utmost pride in combining the uplifting and

inspiring elements of the tourism industry with a cultural

experience that not only informs visitors about the reality

of South African lifestyle, but also allows them to interact in

a beneficial and lasting way. With this in mind, we wanted

to have a national impact on the tourism industry and thus

there was only one way to go and that was to support the

Tourism Enterprise Partnership with a sizeable contribution.

TEP uses our investment as part of its resource pot for rolling

out enterprise development projects and funding for small

tourism businesses.”

15Empowerment Through Entrepreneurship

doors of hopE opEn for mackEnZiE youths

GAThSEMANE MWIZABI

FeBRUaRY 2o13

Although TEP is not a funding agency; it has a Business

Development Fund (BDF), which can be used on a cost-

sharing basis to contribute towards the cost of business

services for registered TEP members. Access to business

services such as professional and operational assistance,

marketing, training and quality assurance is indispensable

for the growth and sustainability of any business, especially

for small tourism businesses. however, many small tourism

businesses do not have the adequate resources to buy

these services.

The fund builds the capacity of small tourism businesses

and assists them to respond more effectively to commercial

opportunities. It serves as a catalyst for their participation

in the formal tourism value chain and, ultimately, their

contribution to industry growth and job creation.

For over a decade TEP has successfully delivered on

its enterprise development mandate and consistently

exceeds its targets. TEP has established a firm reputation

for operating with integrity and according to sound

governance principles.

As a Section 21 (non-profit) organisation, TEP is geared

to keep its administration and management costs to a

minimum with the majority of the funds benefiting SMMEs

directly.

TEP is led by a board of prominent business leaders as well

as a dynamic management team (situated in Rosebank,

Johannesburg) that delivers innovative leadership in

tourism development projects. TEP’s EDP team is at the

forefront of enterprise development in South Africa and

is redefining small business development through this

initiative (www.tep.co.za).

In terms of code 600 of the B-BBEE codes of Good Practice,

companies must allocate three percent of net profit after

tax to enterprise development. Many companies grapple

with enterprise development as it is not part of their core

business, and only about 30 percent of South African

listed companies are currently compliant. TEP’s EDP serves

as a conduit for organisations to earn points on their

B-BBEE scorecards whilst contributing to job creation and

transformation in South Africa

SA — the Good News

IAfrica.com. 2013. NGo creates 70,000 jobs. iAfrica.com

[online]. 7 February 2013. Available at: http://business.

iafrica.com/features/841064.html?p=1 [accessed 7

February 2013].

WhEN Isaac Kasangula 19, was called for a business

meeting, it was a dream come true. It was a great

opportunity to learn something no one would ever take

away from him.

having been brought up in Ndola’s Mackenzie Township,

life has not been that easy for the Grade 12 school leaver

at Masala high School.

All his life, he had been looking out to do a business of

some of kind, a business to help in the buying of books and

help in his general livelihood.

his parents are charcoal burners and often times, money

to put food on the table and clothes for the back is hard

to come by.

Being a first born in a family of four, he was always bothered

by the poverty levels of his family.

he was tempted to think, life was unkind to him and the

family.

his wishes and dreams for a better life than now are

evident in his works of fine art. hanging on the wall, are

pictures he has drawn of the likes of anti-apartheid hero

and world statesman Nelson Mandela and an first black

United States of America (USA) president Barack obama.

The idea of having capital and how to go about basic

business principles and values was his major need.

however, he is in high spirits now.

he is part of the 12 privileged Mackenzie youths who

were selected by Doors of hope, a non-governmental

organisation operating in the community, to attend a

business seminar organised by the International labour

organisation (Ilo).

last year, The Zambian Breweries (ZB) Plc, a subsidiary

of SABMiller Plc and Ilo signed a KR60, 000 Youth

Entrepreneurship Partnership which saw copperbelt

16

igniting potential

Empowerment Through Entrepreneurship

youths empowered with start-up capital and business

management skills.

This initiative has since seen youths from Mackenzie

Township of Ndola benefiting from the gesture.

Under this partnership, Zambian Breweries has provided

young entrepreneurs with coca-cola Mobile trolleys and

soft drinks as start-up capital for their new enterprises.

Zambian Breweries Plc, which has been involved in

enterprise and entrepreneurship development through its

well-developed and coordinated value chain, is excited

by the prospect of giving back to the communities, with a

particular focus on young people.

Under the collaboration, the Ilo is providing technical

support to three youth organisations on the copperbelt

Province which include Roan Youths in luanshya,

Mackenzie Doors of hope youth in Ndola and Yew Tree

Youth at Mindolo Ecumenical Foundation in Kitwe.

The technical support includes training in entrepreneurship

using the Ilo Gender and Entrepreneurship training

manual, while Zambian Breweries will provide the start-up

capital in the form of trading facilities and soft drinks.

In line with its ‘10 Sustainable Development Priorities’,

Zambian Breweries’ involvement with the Ilo is guided by

the sixth priority which looks into creating partnerships and

encouraging enterprise development in the value chain

and also in creating shared value.

After attending the business programmes for weeks, the

youths also received business manuals and certificates.

The business manuals contain business fundamentals for

youths to refer to from time to time.

Zambian Breweries Plc managing director, Anele Malumo,

said: “We are definitely creating shared value and, through

our value chain, we are providing real and tangible

business opportunities for young local entrepreneurs that

will benefit both the corporation and the stakeholders

involved.

According to the corporate affairs office, the programme

would endeavour to discourage long-term dependence,

especially in the case of small entrepreneurs, as the

“Shared Value” principle aims to create an interdependent

relationship with mutual benefits to all.”

In phase one of the project, 30 youths from the three youth

organisations have been identified and trained. The youth

have received coca-cola mobile trolleys and two cases

of soft drinks from Zambian Breweries as start-up capital.

Zambian Breweries has further trained the beneficiaries

in product handling and will provide technical support

in trolley maintenance, while phase two would extend to

other towns in the copperbelt Province.

“We are grateful for the opportunity. our lives will never be

the same,” said Monica Musenge, 18.

Moninca, a Grade 10 pupil at Dzikomo wants to be a

nurse and the business is helping her to buy her education

necessities. She would save some of her money to secure

her education.

She is worried with the state of youths in Mackenzie, saying

a lot of them were engaged in unproductive ventures like

alcohol abuse, early marriages and prostitution.

“A lot of us were called for the meeting but only a few

were interested because they wanted fast money. Now

they envy us, when they see us with our trolleys,” she said.

As for the business, the youth were first given two crates

of drinks each. After selling off the drinks, they have now

bought their own drinks. From their profits, they remove a

small percentage which they then put in a small fund they

have created.

The money in the fund is meant for emergencies, and the

rest of the money is theirs to grow their businesses and take

care of their needs.

Each youth has a strategic selling point around the city.

Doors of hope executive director Sven Anderson is

impressed with the zeal expressed by the youth in running

their own businesses.

“There is much hunger in them to succeed. ours is to give

them guidance so that their future is guaranteed,” he

said.

Ultimately, Zambian Breweries (ZB) Plc and Ilo partnership

should be commended.

It remains for other organisations to emulate the gesture.

17Empowerment Through Entrepreneurship

FeBRUaRY 2o13

Mwizabi, G. 2013. Doors of hope open for Mackenzie youths.

Times of Zambia [online]. 4 February 2013. Available at:

http://www.times.co.zm/?p=29720 [accessed 7 February

2013].

Editor’s Note: The following is a transcribed account of

an interview of Sean Wainer, country manager at cloud

computing technology solutions provider citrix, conducted

by Summit TV.

SUMMIT TV: A recent study suggests that a small

improvement in labour mobility could potentially have

huge benefits. Sean, can you tell us about your study and

how we can save our economy?

SEAN WAINER: citrix is an organisation that allows mobility.

We supply business with technology that allows users to

work from anywhere. We wanted to see if we could extend

the success we’ve had into the greater economy and

down to individuals. We had Dr Adrian Saville commission

a study for us that came out with quite surprising results.

STV: When you talk about labour mobility — is that

physical?

SW: In the context of the study, mobility refers to the

movement of knowledge, information and people through

various communication and transport networks.

STV: That’s physical but also etheric mobility.

SW: correct. The study breaks it down into microeconomic

versus macroeconomic mobility — macroeconomic

mobility being the movement of goods and services at a

country level, microeconomic being around the movement

of people and knowledge transfer at an individual level,

so that’s people versus country level.

STV: Your study has come out with a surprising result — that

a small increase in mobility can increase GDP per capita

by 40% which sounds pie in the sky.

SW: It does. The interesting thing is that the study was

based very much on solid fact. Adrian Saville is a doctor

of economics and the research was across 140 countries.

What this is saying is a small incremental increase in

mobility — being the movement of people, information

and knowledge — is not just about having a mobile phone,

it’s not just about being able to work from anywhere. It’s

about mobility as a concept at a country level. Studies

have shown huge successes in Malaysia and costa Rica.

South Africa rated average in the study, which is okay

because that means there is room for improvement,

which can translate to GDP growth and a decrease in

unemployment.

STV: how exactly would this increase GDP to get the 40%

benefit?

SW: It’s a graphical representation based on historic data.

There’s a myriad of examples but imagine a rural farm

worker that’s only been in the small community space

now having larger communities to sell his goods to. That’s

a great example — he is producing quality but limited to

a small environment. The scope for growth is limited. If we

could eliminate that, it would allow him to sell more and

increase his income and that would increase per capita

GDP. Another great example of this is we know that mobility

grows entrepreneurs and a big part of the study is based

on that as well, where entrepreneurship rate versus the size

of our population is relatively low.

STV: Is there a causal relationship between the number of

small businesses and the degree of mobility?

SW: Absolutely. The study very clearly shows that this

information is available and public, that mobility has a

direct impact on growing new entrepreneurs and giving

people the ability to start new businesses. The fact is

that governments do not create jobs, they put the tools

in place. Jobs are created by entrepreneurs. The SMME

space today is the largest opportunity for jobs.

STV: how does South Africa compare to other countries in

your study?

SW: From a mobility perspective average, we have an

interesting scatter graph that shows 140 countries.

STV: In terms of the number of small businesses — are we

behind?

study shoWs mobility can incrEasE pEr capita groWth

TRANScRIPTS SERVIcE

18

igniting potential

Empowerment Through Entrepreneurship

SW: Yes, we are behind if we look at the likes of Malaysia.

It’s about the ease of doing business.

STV: That’s sad because small businesses usually create

more jobs than big business and we are behind the

curve.

SW: correct.

STV: In the digital age, information is power and mobility

enables that but there is downside to this because you

never get time off.

SW: No, you don’t but I want to flip that on its head and

say that being mobile changes that. We work in a new

era where presenteeism does not equate to productivity

— because you’re at a desk that doesn’t mean you are

working. That’s where the entrepreneurial spirit is coming in.

Who do we want to build up in this country? The younger

generation.

STV: can you refute that this increases stress levels? You

could be relaxing in bed but you think “let me look at my

emails quickly.” Then you work for an hour.

SW: I’d refute that because there is a huge difference

between waking up and going to work at 8am and

working through and leaving the office at 5pm without any

flexibility in that. Imagine the change where we are now

going mobile and people are absorbing this. You could

be working from anywhere, on any device, at any time

— perhaps at a soccer game or a school play with your

child. I think it’s the exact opposite. certainly, you have

to find a personal and work life balance but the younger

generation are coming in and saying “I can work on a

Sunday afternoon so why can’t I go have coffee with a

friend on a Thursday morning?”

STV: how do employers feel about that?

SW: That’s interesting because employers are having

to adapt. We have a South African mentality that’s

patriarchal and says ‘you’d best be in the office so I can

watch you doing work.’ What we are seeing is a groundswell

or ‘employment spring,’ where new people are coming

in saying “this doesn’t work for me — don’t give me your

device that you’ve locked down and I don’t know” and

“don’t make me work in an office that doesn’t work for

me.” Employers are having to adapt, otherwise they are

not going to attract the best talent.

STV: This has transferred the cost of telecommunications

back to the employee.

SW: To some degree. There’s very few people I know that

wouldn’t want to get an allowance from the organisation

to go get a device of their choice.

STV: I know very few companies that would give an

allowance to pay for a cellphone or data package.

SW: That’s changing dramatically. What we are seeing is

people are working out that buying a laptop for a user

and giving it to them and managing and securing and

insuring it is an enormous cost. It’s cheaper to give the

employee an allowance.

STV: Is there going to be a rising trend where companies

take away landlines and everyone relies on their

cellphones?

SW: I believe so. The whole drive towards being more mobile

– whether that’s being able to move around the country

easily, or moving goods or access work from wherever I

am, with broadband costs coming down dramatically

and access to infrastructure — is becoming easier even

in rural areas. A big part of the study is around education,

which is something I’m really passionate about. Educating

people is not about going to school, it’s about giving

people access to information. There’s Khan Institute that’s

made courses and material available to people. how do

you get that to people? one way of doing that is through

mobility. We do not have an education crisis in this country

we have a mobility crisis.

Transcripts service. 2013. Study shows mobility can

increase per capita growth. Business Day [online]. 6

February 2013. Available at: http://www.bdlive.co.za/

business/technology/2013/02/06/study-shows-mobility-

can-increase-per-capita-growth [accessed 8 February

2013].

INTERVIEW

Mr. Osagie Ogunbor, Corporate Affairs Manager of

nigEria: WE nEEd morE youth EntrEprEnEurs in nigEria – intEl

PRINcEWIll EKWUJURU

19Empowerment Through Entrepreneurship

FeBRUaRY 2o13

Intel Corporation, West Africa in this interview reveals

why the firm is training fresh graduates on technology

and entrepreneurship to enable them set up businesses

rather than seek for jobs as part of its Corporate Social

Responsibility (CSR).

Why is Intel engaging in this training venture?

As you can see from today’s training, this is a bit different

from what Intel is typically known for. Before now, Intel was

engaged with training of teachers. Indeed in the last five

years, we have trained over a hundred thousand teachers

in Nigeria and over Ten million globally. So that used to

be our focus, but now, we are beginning to see that the

reality on ground is that there are other areas that need

attention.

In Nigeria, you know there is a huge problem of

unemployment, there is a huge problem of social

restiveness. We believe that the root cause of some of these

things is the fact that youths are not properly equipped

with the right skills especially in the use of technology in

the 21st century workplace and business environment.

We therefore thought it was a worthwhile decision to use

our platform to provide some sort of Technology and

Entrepreneurial Training for these youths who are just

coming out of college and that’s how we came about

the training for youth corps members. This is a pilot scheme

starting in lagos and over the months and years it is going

to become a National programme.

From what you have just said, there appears to be recognition of the critical role in the case of technology, how important is entrepreneurship in this phase? What do you think the training will bring to the nation particularly?

Well typically, entrepreneurship is everything to them at

this moment. They are coming out of Universities and they

are at a critical point in life where they have to take life

changing decisions; Are they going to look for jobs, Are

they going to set up their own businesses, What are they

going to do?

Now we know that hundreds of thousands of graduates

are coming out every year. We also know that we have

very few vacancies and job opportunities for them. What

that means therefore is that year in, year out, you are

having hundreds of thousands of graduates who have

nothing to do.

So we are saying to them that rather than have a fixation

on looking for jobs, there is an option to actually set up

their own business, to be an employer of labour rather than

being a figure looking for work. So that’s the first option.

The second option is that even when you decide to work

in a formal environment, you need to be equipped to be

able to survive in that formal environment.

In those days, when you start a job, you are given pen and

paper and files, today, when you start a new job, you are

given a computer either a desktop or a laptop. Today’s

graduates have to be technologically equipped to be

able to function in that kind of workspace.

So it means that even if you want to work, if you don’t

have the kind of technological training which we are

giving now, you cannot fit in. If you were taught in your

University using analogue method, sitting down and taking

notes, you come to the office and you don’t know how to

boot a computer, you will not be employable and that’s a

critical problem.

We’ve got graduates who are not employable. So what

we are doing is equipping them to be one, employable

and two, Should they not want to work, have the necessary

skills to be able to set up businesses and run it.

We have got loads of them who have Uncles and relatives

who can actually give them seed capital to start-up

businesses. But again, do they have the basic know-how to

run these businesses profitably so that they themselves are

able to take care of themselves and even employ more

people, the economy gets better for it, more people are

employed, tax income increases for government and the

economy is better for it.

Sir, you said at the beginning that the training is to come in phases, my question is will there be an end like a specific year when all these technology and entrepreneurship training will come to a halt? What is the target? In terms of number, how many students are we looking at?

We are just starting, so we can’t be talking of stopping.

our focus is not really the numbers. our focus is on the

impact. Now we’ve started in lagos, we are going to go

from lagos to the entire South West and then to the South

East, and then we scale up.

What we are doing is to have a pool of master trainers,

Senior Master Trainers who have been trained across the

20

igniting potential

Empowerment Through Entrepreneurship

country. So, as we scale to those parts of the country, those

master trainers will conduct the training in their own locality.

So ultimately, our target is to have an Intel technology &

Entrepreneurship Trainer, in every State of the Federation

where there is National Youth Service.

Will this training be on specific areas or different areas?

Basically, the curriculum for entrepreneurship is basic.

It’s not an MBA as such what it does is to teach you the

rudiments of setting up a business. What you need to

do before setting up a business, what are the empirical

meters that you must look into, what informs the choice of

business you want to do?

You know people just come out of school and say ‘well I think that baking is something I want to go into and it’s my passion and I must go into it. But in their locality, it might not be the most profitable business. So there are empirical indices to determine that. What is the competition for that business in your neighbourhood?

What skill do you have, what is your unique selling point,

what must you put in place so that you can become

competitive? These are the basic skills we are teaching

people and it’s not like they probably don’t know, but it’s

just that we are bringing it to their consciousness now.

And when you bring it to their consciousness, they begin to

realize it. We have entered into partnerships with relevant

NGo’s to enter these corps members into a business

plan competition so when they are through with it, the

final product of this training is that each person gets a

chance to produce a business plan of their own business.

They submit the business plan into the contest and 1,200

people stand a chance of up to winning 10m naira each,

courtesy of the Federal Government.

So first of all, you are being trained in Technology and

Entrepreneurship, you then have a chance to even get

the capital to start the business.

There should be some bottlenecks in all these, what are the challenges looking at entrepreneurship in Nigeria, what do these entrepreneurs face?

The Basic challenge is the know-how of running a business.

The general misconception is that capital is what the

problem is. A lot of people will tell you they want to set up

a business but they don’t have the capital. I can say to

you that the problem is not even that of capital because

we’ve got so many people who set up businesses when

they had capital to set it up, ten years down the line, the

business has gone down the drain.

**So I think the major challenge is that all kinds of people

just become entrepreneurs over night without any form

of training. Now I recognize that there are people who

have entrepreneurial skills in-born in them, but again,

entrepreneurs can be made and that’s what we want to

encourage.

Another challenge is probably also the willingness of our

youth corps members to take advantage of this program,

because we have a bunch of youths who are sometimes

unwilling to pay the price of success and we hope that

over time, when they begin to see the progress of these

ones that we have taken up, and that results are being

achieved, more people will begin to take part in it. But I must

say that the response from those that are being trained

now, is very positive because, they are very happy.

What has Intel put in place to follow-up on these young entrepreneurs?

Follow-up is actually an integral part of the way the

program was designed. **We have a process in place

to have a database of all those that we train, so we will

monitor them and what stage they are in their business,

should they require further training, we will be there to

hook them up with the right partners who will be able to

add value at such stages.

So we don’t pretend to have the ability to mid-wife

the entire process till when they become successful

entrepreneurs, but we have the capacity to, at every

juncture facilitate their meeting partners that may be

of help in that regard. We are in partnership with the

henshaw Foundation, which will assist the trainees enter

into the YoUWIN business plan competition, where they

stand a chance to get a government grant to set up their

businesses if they come up with impressive business plans.

For Technology and Entrepreneurship, what is the level playing ground in your opinion and as an expert in this field?

Technology is a means to an end. Marketing dynamics

today, for instance have become such that digital

marketing, social media marketing have become

imperatives for you to reach target audiences for your

business. 15-20 years ago, if you wanted to advertise, the

21Empowerment Through Entrepreneurship

FeBRUaRY 2o13

word advertising was synonymous with radio, TV and press,

today, online is taking over. If you are a young entrepreneur

and you do not understand computer technology to

the extent that you can use it as a tool to enhance your

business, you are behind.

That is where technology comes in. If you cannot build

a website, where anybody in the world can access

your business, buy from you, sell to you online, without

geographical barriers coming into play, you are way

behind. If you do not have the skills to send an email,

basic simple things like this, send an email, do a power-

point presentation of what your business can offer to a

prospective customer, investors, then you are behind.

So these are the technological skills that we are giving

these people who are coming out of school because we

realize that not all universities in Nigeria can equip them

adequately with these skills. So chances are that you will

be a more efficient entrepreneur when you have these

skills.

At the end of this year, what benefit will this add to the economy?

A: Well, thinking at the end of the year is a bit short termist

and very close, but I will say that ultimately, let’s look at a

three to five year time span. We can begin to say people

who are being trained in this program are beginning to

actually set up businesses of their own we can begin to

track those who decide to work and have become better

employees, because I need you to understand that it’s

not all about entrepreneurs in the strict sense of setting up

businesses.

It’s all about equipping youths to decide what you want

to do. Whatever you decide to do, you are better off

for it. If you decide to go into business, you are a better

entrepreneur if you decide to work in an office place you

are able to use the tools that technology gives you to

become a more efficient employee in your workplace. So

over the next 3-5 years, we will have that pool of young

men who are excelling as employees. That’s where we

want to go.

Ekwujuru, P. 2013. Nigeria: We Need More Youth

Entrepreneurs in Nigeria – INTEl. All Africa [online]. 10

February 2013. Available at: http://allafrica.com/

stories/201302110392.html?viewall=1 [accessed 11

February 2013].

JohANNESBURG - Entrepreneurship is seen the the answer

to growing unemployment in South Africa. The latest South

Africa Survey published by the South African Institute

of Race Relations says a total of 4.5 million people are

classified as officially unemployed, “because they are

available and would like to work and have been actively

looking for a job.”

The research expounds that a quarter of unemployed

people have been looking for work for more than five

years, and a further 40% have been out of work for at least

a year.

The International labour organisation defines the long-

term unemployed as those who have been looking for

work for more than a year. In South Africa, there are 3

million such people (or 68% of the unemployed). however,

the Institute has calculated that nearly half of these

people have been unemployed for more than five years,

equating to 26% of all unemployed people.

lucy holborn, research manager at the Institute, said, ‘We

have very high long-term unemployment levels according

to the international definition – the average among

organisation for Economic cooperation and Development

(oEcD) countries is 32% of total unemployment compared

to 68% in South Africa. on top of this, very long-term

unemployment of over five years accounts for a significant

number of our unemployed. The chances of finding work

after being out of the workplace for more than five years

(or perhaps having never worked) are likely to be slim in a

labour market saturated with low- and un-skilled workers

but in need of experienced and skilled labour.’

In addition, these figures do not take into account those

who would like to work but have given up actively looking

for work, perhaps because they have given up hope of

finding a job. There are an additional 3.2 million people who

are unemployed according to the expanded definition,

which includes people not actively looking for work.

‘Many such people are likely to add to the number of

sa unEmploymEnt ratE on thE risE, EntrEprEnEurship EncouragEd

SIMBA NEMBAWARE

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igniting potential

Empowerment Through Entrepreneurship

long-term unemployed, as they are more likely to have lost

hope of finding a job after having been unemployed for a

long period of time,’ said holborn.

‘All of this suggests that there may be large numbers of

people who are simply unemployable. Therefore, any

solution to our unemployment problem will need to address

educational and skills inadequacies to provide a better

match between what the labour market requires and

the pool of people supplying it. In the meantime, relaxing

labour regulation in order to reduce the cost and risk of

hiring people could help to dent levels of unemployment

that have been persistently high for over ten years.’

These statistics question the success of the government

driven empowerment programmes aimed at alleviating

the situation and emancipating youths. While politicians

are taking advantage of these statistics and trying to win

votes by marketing their job creation programmes, it is

clear that in the past five years nothing has been done to

address the situation.

It is likely that things will remain unresolved and in a

couple of years the figures might double or even treble

as universities, technical colleges and other training

institutions produce graduates who cannot be absorbed

by the system

Nembaware, S. 2013. SA unemployment rate on the

rise, entrepreneurship encouraged. Entrepreneurship

Africa [blog]. 1 February 2013. Available at: http://

entrepreneurshipafrica.com/business-resources/experts/

s.a-unemployment-rate-on-the-rise-entrepreneurship-

encouraged.html [accessed 7 February 2013].

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