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Kabokweni PACA: Kabokweni PACA: Opportunities for business, Opportunities for business, entrepreneurship and local entrepreneurship and local economic developmenteconomic development
What is PACA?What is PACA?
Participatory
Appraisal of
Competitive Advantage
Involving local stakeholdersTransfer know-how to local
stakeholders and businessesDo a quick scan of the local
economy Identify strengths, skills, talents
and opportunities Identify business and LED
opportunities
What have we been doing?What have we been doing?
Interviews with businesspeople and stakeholders in Kabokweni and Nelspruit
Miniworkshops with– hawkers– dressmakers– small business estate entrepreneurs– artists and crafters– group-based business projects– taxis– business start-ups– retail trade.
What is the structure of this What is the structure of this presentation?presentation?
Diagnostic of the economic structure of Kabokweni
Misperceptions about the economy of KabokweniBusiness opportunities in KabokweniSuggestions and proposals
– for business start-ups– for businesses– for business collaboration– for the community
Follow-up.
Diagnostic of the economic structure Diagnostic of the economic structure of Kabokweniof Kabokweni
Strong points of the Kabokweni Strong points of the Kabokweni economyeconomy
Vibrant industrial and small business estatesHigh purchasing power in the communityMany, many business opportunities
– unserved needs of families and individuals– unserved needs of businesses
Some competent entrepreneursSome individuals with very good skills and
business vision.
Weak points of the Kabokweni Weak points of the Kabokweni economy #1economy #1
Weak business acumen and skills – among persons who aspire to become
entrepreneur– among existing businesses– lack of entrepreneurial ideas– absence of innovative ideas.
Weak points of the Kabokweni Weak points of the Kabokweni economy #2economy #2
Lack of information– about local suppliers and customers
• there is still taxi transport to Durban!• there is a hardware shop at the MEEC
Industrial Park 1!– about good business practices– about sources of support and advice– about promising markets.
Strong points of the Kabokweni Strong points of the Kabokweni communitycommunity
Willingness to learn more Interest shown by many stakeholders in LED
initiativeHunger for change and actionStrong participation in our PACA miniworkshops.
Weak points of Kabokweni Weak points of Kabokweni communitycommunity
Very few associationsLittle contact, communication and exchange
between businessesExpectation that LED is about “funding”People believe in funding, not in
entrepreneurshipEnormous security problem.
Misperceptions about the economy of Misperceptions about the economy of KabokweniKabokweni
Misperception No. 1Misperception No. 1
Kabokweni is a rural area
Fact:Kabokweni is an
urban area, and even the rural areas around it are not very rural
Misperception No. 2Misperception No. 2
There is no money in Kabokweni.
Fact:There is actually a lot
of money and purchasing power in Kabokweni.
Misperception No. 3Misperception No. 3
Customers buy only in the big markets.
Fact:Customers buy a lot of
things locally, but only – if they are treated in
a friendly manner and
– if the shop has something interesting to offer.
Customers like variation and special offers.
Misperception No. 4Misperception No. 4
The lack of funds is the main obstacle when starting a business.
Fact:The main obstacle is
lack of entrepreneurial skills: – inability to identify a
promising, innovative product
– inability to identify a promising market segment
– inability to under-stand the customers.
Misperception No. 5Misperception No. 5
The purpose of a business plan is to get funding.
Fact:The purpose of a
business plan is to think about all the aspects of the business and understand all the risks and opportunities.
Misperception No. 6Misperception No. 6
You can start a business without the vaguest notion of what it involves.
Fact:To start a successful
business, you must understand your product, the production and the customer very well.
Misperception No. 7Misperception No. 7
Government is there to support unviable businesses and business ideas.
Fact:Government money is
taxpayer money. Taxpayers want their
money to be spent wisely, not to be wasted on unviable businesses and business ideas.
Misperception No. 8Misperception No. 8
Training will solve all the problems.
All artisans can be turned into entrepreneurs by doing basic business training.
Fact:Successful
entrepreneurship has a lot to do with personal features of the entrepreneur.
Many persons are not up to the challenge of being an entrepreneur.
Business opportunities in KabokweniBusiness opportunities in Kabokweni
Business opportunities in business Business opportunities in business servicesservices
BookkeepingBusiness plan advice
and assistanceApplication form
assistanceAssistance in
preparation of CVsBusiness information,
business directorySewing materialsLow-cost cleaningRecycling
Joint cooling facility for hawkers
For-profit SMME support centre
Motorcycle courier specialising in parts and supplies
Inventing and selling innovative business ideas
Skills development ...
Business opportunities in consumer Business opportunities in consumer productsproducts
EntertainmentSports Swimming pool Internet café Ice-creamSecurity-related products ...
Suggestions and proposals for Suggestions and proposals for business start-upsbusiness start-ups
Options in entrepreneurship, 1Options in entrepreneurship, 1
Acquire a business plan
Submit business plan for funding
Obtain funding
Acquire a BMW or Buggy
That won’t work!
You need a veryconvincing business
plan to qualify for funding!
Options in entrepreneurship, 2Options in entrepreneurship, 2
Purchase business plan
Submit business plan for funding
Use that money justlike a wage
Money is gone, thereis no business
That won’t work, either!
You cannot be an entre-preneur and
a wage-earner at the same
time!
Options in entrepreneurship, 3Options in entrepreneurship, 3
Go throughskills course
Use your skills toproduce something
Try to find customersfor your product
Can’t find customersfor your product
That won’t work, either!
You mustproduce
whatcustomers want, not what you
want!
Options in entrepreneurship, 4Options in entrepreneurship, 4
Understand the behavior of people
Identify businessopportunities
Match opportunitieswith your skills
Product demanded by customers
This is the onlypromising approach!
Suggestions and proposals for Suggestions and proposals for businessesbusinesses
Suggestions and proposals for Suggestions and proposals for businessesbusinesses
Put more focus on customer careResearch the needs of your customersMake yourself familiar with main trends in your
sectorGet innovative product ideas
– from TV soap operas– from magazines– use trips to identify new product ideas
Read! Read business books!
Suggestions and proposals for Suggestions and proposals for business collaborationbusiness collaboration
Suggestions and proposals for Suggestions and proposals for business collaborationbusiness collaboration
Monthly meetings of business sectors to exchange experience and discuss common problems
Joint hiring / sharing of security guardsOrganize meeting between taxis and small
businesses to identify unmet transport needs.
Suggestions and proposals for the Suggestions and proposals for the communitycommunity
Suggestions and proposals for the Suggestions and proposals for the communitycommunity
Develop a youth scheme to fight crime and conflict
Learn from the experience of other communities– in promoting business– in uplifting the community– in fighting crime and violence.
Follow-upFollow-up
Follow-up #1 -- Business Follow-up #1 -- Business opportunity: Prepare and market a opportunity: Prepare and market a Kabokweni business directoryKabokweni business directory
Potential entrepreneurs can take up this idea: – Walk around and identify businesses in
Kabokweni who want to be listed– Listed businesses pay a small fee = income of
entrepreneurThe Development Facilitation Unit in the council
is willing to offer some facilitation for an emerging business in this field
Persons who would like to take up the offer for facilitation must submit a proposal to Robert Malele until 13 December 2002
Follow-up #2Follow-up #2
Workshop with Business Development Manager of Kruger Mpumalanga International Airport (KMIA)
Who is invited?– Every business or emerging entrepreneur
related to tourism When and where?
– Thursday, 28 November, 10:00, Kabokweni Community Hall
Follow-up #3Follow-up #3
Open day at Regional Training TrustWho is invited?
– Everybody interested in skills developmentWhere?
– Located next to small business estateWhen?
– Saturday, 11 January 2003, 09:00
Follow-up #4Follow-up #4
First Kabokweni Business MeetingWho is invited?
– Existing businesses– SMMEs from Kabokweni– Entrepreneurs who are in business already
When and where? – 22 January 2003, 10:00, Kabokweni Community
Hall
Thank you for your attention!Thank you for your attention!
The PACA TeamThe PACA Team
Dr Jörg Meyer-Stamer (PACA-Consultant)Gabriele Trah (GTZ)Peter Mathibela (MRDP/GTZ)Dumi Mhlongo (MRDP/GTZ)Manie Ferreira (Mbombela Municipality)Robert Selo Malele (Mbombela Municipality)Elphus Maseko (Silulu Investment)