Malik Fal, MD of entrepreneurship NGO, Endeavor SA, talks about wealth creation, entrepreneurial challenges and the models needed to support entrepreneurs in South Africa.
You’ve
led engagements with the World Bank and the Rwandan Presidency on reducing the
gap between the rich and poor in developing nations, and your book, In the
River They Swim, details enterprise solutions to poverty alleviation. What
drives this passion?
It’s the biggest challenge of our time
in Africa. The continent might be politically
liberated but political freedom without economic prosperity is meaningless. Our
generation’s challenge is to create wealth for the everyday person
in Africa.
What
role do you believe entrepreneurship has to play in reducing poverty in SA?
Companies create wealth, not
governments. Entrepreneurial companies can create wealth and reduce wealth
disparity on two fronts: they provide jobs and pay salaries to skilled
employees and contribute to a greater tax base, which gives government more
resources to create further opportunities for wealth creation.
What does SA need to do to help
entrepreneurs overcome their challenges?
On paper, South Africa has a number of
policies to support entrepreneurship but it’s clear that a shotgun approach
doesn’t work. We need more specific support models that target particular
categories of entrepreneurs. At Endeavor, we’ve identified four
models that need to be implemented. The Silicon Valley
model provides support for IP that is created at local academic institutions or
government research centres, and is commercialised with the help of venture
capital or angel funding. The Mother-Ship Firm model incentivises
large companies to develop smaller spin-off companies by setting employees up
as entrepreneurs. The External Trigger Model ensures fast, effective and
adequate crisis-driven funding for new businesses when an external event (like
mass retrenchments) creates an abundance of skilled workers. Finally the Role Model approach fosters
a culture that celebrates entrepreneurs, inspiring others in the community to
start a business within or outside a local entrepreneurial hero's industry, and
providing fast, efficient financing options.
How
does your vision for Endeavor tie in with these issues?
As an NGO that sits between government
and business, Endeavor can play a dual role in furthering the cause of
entrepreneurship in South
Africa. We showcase success stories of
high-impact entrepreneurs, providing aspirant entrepreneurs with a microcosm
example of what entrepreneurship excellence looks like, and we play an advocacy
role in contributing to discourse and debate on the state of entrepreneurship
in the country. For
more information call +27 11 463 0992 or visit www.endeavor.co.za
By offering busy parents a stimulating environment for their children during school holidays, two young entrepreneurs are building a lucrative business.
Success Stories: Upstarts
