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SAB Launches Entrepreneurship Campaign To Create 10 000 Jobs In SA

The South African Breweries (SAB) announced yesterday it will help create thousands of jobs in South Africa and increase opportunities for entrepreneurs to become part of its supply chain through its key entrepreneurship programmes.

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South African Breweries
South African Breweries

South African Breweries

The South African Breweries (SAB) announced yesterday it will help create thousands of jobs in South Africa and increase opportunities for entrepreneurs to become part of its supply chain through its key entrepreneurship programmes.

From rural entrepreneurs to big business, SAB has laid the foundation to support entrepreneurs and create a total of 10 000 jobs in South Africa by 2021 using its entrepreneurship programmes – SAB KickStart, SAB Foundation, SAB Thrive and SAB Accelerator, as well as its agriculture programmes to grow emerging farmers.

The company offers a comprehensive and holistic package of entrepreneurship support to develop small businesses from ideation to growth, transforming the supply chain, as well as investing in the potential of entrepreneurs in the broader community. Applicants to the programmes will go through a selection process.

Ricardo Tadeu, Zone President for AB InBev Africa and SAB, says: “We are committed to making a substantial contribution towards South Africa’s national agenda of growing the economy through creating jobs and reducing unemployment, particularly amongst our youth. As a business that started out as an entrepreneur itself, we strongly believe that entrepreneurship is the most appropriate response to this issue and will help to galvanise the economy.

Related: Cash Flow Tips For Small Businesses To Survive Rocky Times

“We recognise that job creation is top of mind amongst South Africans. As one of the country’s leading corporates with a deep sense of pride, and a belief in the future of our country, we have not only a responsibility to help, but a duty to improve the lives of people in communities. We will do this through a range of initiatives, including providing real, authentic and sustainable jobs that we can measure going forward,” says Tadeu.

The commitment to create 10 000 jobs is over and above the Public Interest Commitments (PIC) that SAB’s agreed last year with government after the business combination between AB InBev and SABMiller. Job creation is embedded in the company’s business strategy which focuses on fostering a better world where everyone has an opportunity to improve their livelihoods. The three key priorities of this strategy are job creation; promoting nutrition and health; and reducing harm caused by the misuse of alcohol.

“This is an important vote of confidence in South Africa and a commitment to improve the lives of its people, as well as to invest and participate in expanding the country’s economy,” says Tadeu.

Business Unity South Africa (BUSA) CEO Tanya Cohen says BUSA congratulates SAB on this welcome initiative. “Systemically supporting entrepreneurship opportunities within SAB’s supply chain will make a meaningful contribution to enterprise development and job creation – both of which are critical to transformation for inclusive economic growth,” she says.

Cyril Ramaphosa

Deputy President, Cyril Ramaphosa, in a message, commended SAB’s efforts in bring change to communities. “Your commitment as a corporate citizen to job creation, the empowerment of people and reduction of harm. Business and government can work together to create the better life that we seek to secure for all South Africans.

In the face of poverty, unemployment and inequality, your ambition to create 10 000 sustainable jobs is an important investment in our economy and society.

SAB’s focus on entrepreneurship is a commendable step towards inclusivity and sustainability in our economy and is one that will be rewarded with the unearthing of the energy and talents of those who will benefit from this programme.”

Edith Vries

Edith Vries, Director General for the National Department of Small Business thanked SAB for the role it is playing in supporting entrepreneurs. “Small businesses are at the heart of economies that grow. Our young people need the experience and they need someone to give them an opportunity. I want to thank and salute SAB for providing that opportunity and helping them with that first step.

“I also want to commend SAB for the commitment to create 10 000 jobs over the next 5 years and of your entrepreneurship programmes that you are using to drive this objective. Through SAB’s leadership we can build a new cadre of entrepreneurs into the future.”

Barbara Creecy, Gauteng MEC for Finance

Barbara Creecy, Gauteng MEC for Finance, acknowledged SAB’s contribution to developing entrepreneurship and creating jobs in the province. “We recognise the role that SAB is playing in the economic development of the Gauteng province. The organisation’s entrepreneurship programmes are contributing to entrepreneurship development in the province. It is exciting to participate in launching an initiative that integrates all of these programmes across the value chain.

“SAB stands together with us in acknowledging that unemployment, poverty and job creation are the most important challenges facing our country today. Whether we are in government or civil society, we need to create meaningful opportunities to increase economic participation amongst young people.”

Related: Why Small Business Deserves To Be A Bigger Priority

Driving the ambition to create 10 000 jobs is a call to action to all entrepreneurs through a mass media Entrepreneurship Campaign, beginning with a television commercial launched  this past weekend. The commercial centres on the concept of how ‘One Idea’ can ignite and spark a nation to heed the call to try its hand at entrepreneurship in order to build a better South Africa for all.

“We believe in the power of one idea which is sparked within each entrepreneur and we are committed to supporting these businesses and the potential they hold to bring positive change in people’s lives. We back entrepreneurs 100%,” says Doreen Kosi, Vice President of Legal and Corporate Affairs at AB InBev Africa and SAB.

SAB also hopes in the future to call to action other corporates in South Africa to expand opportunities for real job creation.

‘We hope that our campaign and efforts in the entrepreneurship space will inspire others to support the creation of more jobs in South Africa,” says Kosi.

The SAB Entrepreneurship Programmes will visit six cities across South Africa during a roadshow in the month of October. Details will be available on SAB’s social media platforms. 

SAB Entrepreneurship Programmes:

SAB KickStart

The programme has been running since 1995 and focuses on youth owned businesses. It is focused on investing in youth entrepreneurs between the ages of 18 and 35.

The programme backs black entrepreneurs with existing, emerging businesses in key industries that are aligned to supply chains.

There are two programmes within the SAB KickStart offering – SAB KickStart Boost and SAB KickStart Ignite.

SAB KickStart Boost is a supply chain readiness programme that’s built around a key objective: Enabling high potential youth owned business to become suppliers of various organisations in the private and public sector, thereby fast-tracking the transformation of the economy. We back entrepreneurs with existing, emerging businesses in key industries to be ready for and to access supply chains, and as a result grow into sustainable businesses that create jobs.

SAB KickStart Ignite supports disruptive innovators that have innovative businesses and products that have high potential to grow into viable businesses that can solve our business challenges and can grow to be future creators of employment. Eligible entrepreneurs receive technical product and business development support which includes one on one mentoring, prototyping, commercialisation, and financial support where required. SAB KickStart Ignite acts as a pipeline of entrepreneurs for more advanced programmes such as SAB KickStart Boost. 

Related: 8 Smart Tips for Small Businesses Seeking Investment

SAB Foundation

The SAB Foundation is an independent trust founded to benefit historically disadvantaged individuals and communities, primarily but not exclusively, through entrepreneurial development in South Africa. It is one of three beneficiaries of SAB’s BBBEE transaction, SAB Zenzele, established in 2010. Key beneficiary groups include women, youth, people in rural areas and people with disabilities.

The long term vision underpinning the SAB Foundation is to ignite a culture of entrepreneurship and social innovation in South Africa as a source of economic growth and a primary source of innovation and job creation.

The focus is on investing in entrepreneurs outside of the value chain and across the country with a particular emphasis on businesses outside major metropolitan areas.

There are two offerings for entrepreneurs within the SAB Foundation – the Social Innovation Awards and Tholoana Enterprise Programme.

The Social Innovation Awards invest in innovative business ideas that can solve social problems. This includes, but is not limited to energy, water, health, education, housing and food security. The Disability Empowerment Awards is a special category for innovation that benefits people with disabilities.

The Tholoana Enterprise Programme is a two year business support and capital grant programme to assist micro and small enterprises to grow and create jobs. 

SAB Thrive

The SAB Thrive Fund is an Enterprise & Supplier Development (E&SD) Fund set up and funded by SAB to transform the company’s supplier base. The Fund has been established in partnership with the Awethu Project, a Black Private Equity Fund Manager and SMME investment company. The SAB Thrive Fund’s mandate is to invest in and transform SAB suppliers such that they become more representative of our country’s demographics. SAB Thrive Fund Investees benefit from 100% Black equity capital and business support. 

SAB Accelerator

The key objective of SAB Accelerator is to grow SAB’s supply chain to be inclusive of black-owned, especially black women-owned businesses. To achieve this an incubator consisting of 10 business coaches and 10 engineers, who are dedicated to growing these suppliers, has been created.  SAB Accelerator will partner with the company’s suppliers and provide coaching and technical expertise, which in turn will help them understand the SAB landscape, its value chain and integrate them into our business. Simply put, SAB Accelerator is a team of people who are dedicated to help black-owned suppliers improve and grow their businesses and in doing so, create much needed jobs.

SAB’s agriculture initiatives

SAB and AB InBev Africa have committed to establishing thriving barley, hops, maize and malt industries in South Africa that strengthen rural employment and job creation, accelerate the development of emerging farmers and enable SA to become a net exporter of hops and malt by 2021. In addition, SA’s technological and innovation base will be strengthened to improve the productivity of emerging and commercial farmers and create new business opportunities. The company will invest R610-million during this period in developing the capacity of new emerging and commercial farmers and increase the amount of local barley that is malted. The strategic intent is to create at least 2 600 new farming jobs in SA.

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Bakani Ngulani Scoops The National Young Entrepreneur Champion Award – 2017

BN Business Solutions founder and CEO is recognised as South Africa’s top entrepreneur under 25 years in 2017 at the recent National Small Business Chamber awards.

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Founder and CEO of BN Business Solutions, Bakani Ngulani, has been recognised as South Africa’s top entrepreneur under the age of 25 at this year’s National Small Business Chamber awards in Johannesburg.  He walked away with the prestigious ‘National Young Entrepreneur Champion’ award.

The 24 year-old entrepreneur founded his accounting firm in 2016 and is clearly on his way to success having finished off as a finalist at the 702 Sage One National Business awards in 2016 and this year being crowned the National Young Entrepreneur Champion at the National Small Business Chamber awards.

Related: 10 Young Entrepreneurs Under 30 Share Their Start-Up Secrets

“A young and vibrant culture is what keeps us going at BN Business Solutions”, said Ngulani.  It’s very clear Ngulani lives up to his company’s tagline ‘purely millennial’.

“My vision is to run the business on a 70% / 30% age policy – 70% being youth (under 35) and 30% adults.  I really believe in the youth, not because I’m one of them, but because everything in today’s times is moving so fast and we need to ensure our human resources will be able to move with the times and not be rigid to change.

Ngulani’s passion to change the perception that accounting is hard, complicated and a rigid industry is evident in his day to day running of the business.

“By empowering youth in the company we are able to execute on deadline and provide a much better service simply because we are innovative, we don’t hesitate to accept new practices and ideas and most importantly change is a challenge for us.”

The awards adjudication panel was impressed by the company’s culture with Ngulani at the helm, much that they described him as a ‘brand disruptor’.

“I really try hard to find interesting ways of getting our name out there.  I’m a strong believer that if people see you taking your brand seriously at all times they will gravitate towards it and you.  That is why during my downtime you will see me in my white Nike basketball sneakers, cap worn backwards while wearing our very trendy company golf shirts.”

Related: 9 Top Tips For Young Entrepreneurs

Young as the business is, the company already has branches in Johannesburg (HO), Cape Town and Durban.  Ngulani would like to increase that number to see more in South Africa and also in Namibia due to their similar taxation structures.  He has a vision to curb unemployment, continue supporting SMMEs in their growth and most importantly, to make accounting and compliance fun.

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The Number Of Black Tech Start-ups Is On The Rise According To Ventureburn’s Start-up Survey 2017

Surge in black entrepreneurs, Gauteng challenges Silicon Cape as the country’s start-up capital, according to Ventureburn’s start-up survey 2017.

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The Western Cape might still be the most popular region in South Africa in which to run a tech startup, but the province is losing ground to the country’s richest province – Gauteng, reveals a new survey. In addition, the number of black tech startups is on the rise.

In the 2017 Ventureburn Tech Start-up Survey powered by Telkom Futuremakers – which was released yesterday – 44% of the 260 founders surveyed said they operated in Gauteng (see below graph), behind the Western Cape’s 47%.

Among its other key findings the survey uncovered that:

  • The percentage of black start-ups has risen from 26% in 2015, to 50% this year.
  • Just three percent of black tech start-ups turn a profit, versus 16% of their white counterparts.
  • Over a quarter of start-ups plan to raise angel or VC funding, but only eight percent receive such funding.
  • Almost a third say they pay market-related salaries, but pay is the top reason for employees leaving.
  • Successful start-up founders are most likely to be white males from the Western Cape.

province-based-start-up

The percentage is up from 29% in a 2015 Ventureburn survey of 197 founders (see below graph) and is just behind the 47% who reported in the latest survey that they operate in the Western Cape (59% in 2015).

start-up-based

Related: 4 Things Your Start-Up Needs When It Opens An Office

The rise in Gauteng tech start-ups appears to be driven by the increasing number of tech entrepreneurs who are black (black African, coloured, Indian or Chinese South African) – and who now make up half (50%) of the country’s tech start-up founders, up from 26% in the 2015 survey.

In addition, the majority of black start-ups (53%) list Gauteng as their base, with 42% saying Western Cape is their home.

founders-race

Of the 260 founders quizzed in the latest survey, 46% list themselves as white, down from 66% in 2015 (see above and below graphs). Four percent chose not to reveal their race (eight percent in 2015).

founders-race

The survey also reveals that while South Africa may have seen an explosion in venture capital (VC) deals of recent – with the value of such deals having increased by 134% in 2016 over 2015 (see this story) – just 10% of tech startups are turning a profit. This is down from 17% in in 2015.

Black startups struggling

Black tech start-ups in particular are struggling. While 16% of start-ups founded by white entrepreneurs are turning a profit, a mere four percent of black-owned tech start-ups are doing the same.

Most worrying is that 61% of black start-ups have yet to generate an income – because they are still working on their concept or are still in the seed stage – compared to 30% of white start-ups.

Furthermore, just nine percent of black-owned startups (and four percent of black African start-ups) generate a revenue of above R1-million – compared to 29% of their white counterparts. Three quarters (75%) of black start-ups generate under R100 000 (and 78% of black African start-ups).

In all, white start-ups accounted for 59% of all those startups that reported having tapped angel funding, while 24% of white start-ups reported having raised R1-million or more to fund their businesses, compared to just eight percent of black start-ups (and 2.5% of black African founders).

It suggests better resourced white start-up founders who often have access to more capital, skills and experience and better networks are able to out perform black start-ups.

The survey also reveals that white start-up founders are significantly older than black founders. Over a quarter (26%) of white founders are 40 years or older, compared to just 13% of black founders. Almost three quarters of black founders are aged 35 and younger, compared to 62% of white founders located in this age band.

This raises various questions as to what is driving more middle-aged white founders to start-up their own business and whether employment equity is behind this or not.

In addition, it might also explain why so few black start-ups are making a profit compared to white start-ups. Older founders are usually more experienced, better networked and have more capital than younger entrepreneurs.

Related: 3 Dangerous Entrepreneurial Myths You Need To Ignore

Out of touch in getting angel, VC funding

But back to angel and VC funding, where it seems start-up founders are out of touch with reality.

raising-business-funds

Over a quarter (27%) of all SA tech start-up founders believe they will grow their business by securing VC or funding from angel investors – yet only about eight percent report ever having been able to secure such funding, a new survey reveals (see the below graphs).

In a further hint that start-up founders need a reality check, just nine percent of those looking for angel investing and just 20% seeking VC funding have firms that are growing or turning a profit.

The majority of SA tech start-ups use their own cash to fund the business (40%), followed by loans and grants from friends and family (23%).

start-up-business-funding

Findings from the survey also put into question whether South African tech start-up founders really pay employees as well as they claim to. Close to one third (31%) that took part in the survey claim they pay their employees market-related salaries.

Yet the same founders list remuneration as the top reason for employees leaving their employ – 21% of founders list remuneration as the top reason employees leave.

remunerated-employees

This raises the question of whether start-ups are really in touch with market-related salaries or whether a good number of fibbing – particularly as 63% of founders surveyed said their start-up generated less than R100 000 a year.

White founders in the Western Cape most successful

While just 10% of start-ups report making a profit, in all, 27% of start-ups can be termed “successful”, in that they are generating a profit or are growing.

So, who then runs the most successful start-ups (defined as those that make a profit and are growing)? Well, most are run by men. While 27% of start-ups run by men say they are successful, just 18% of start-ups run by women can say the same.

More white founders report being successful, with about two thirds of start-ups who say they are successful being white-owned firms. Taken by race group, 36% of white founders report being successful, compared to just 13% of black start-ups (and just 10% of black-African founders).

About 32% of start-up founders in the Western Cape say they are successful – compared to 22% who are in Gauteng who list themselves as successful.

Most are over the age of 40 or between 30 and 35 years old (36% of startup founders in these ages groups say they are successful) and run a fintech or insurtech or a startup in the advertising and media business.

Those with a business partner and who have a start-up that is already over two years old employing more than 10 people are also more likely to report being successful. B2B start-ups – those that serves other businesses (rather than consumers) and that tap the North American or European market.

Related: How To Raise Working Capital Finance

Finally, are you more likely to be successful if you’ve run other start-ups before? In short, not necessarily.

Data from the survey reveals that 33% of founders who have run one or more start-ups previously report being successful with their current business – not overly different from the 30% who have never run a business before and say they are successful.

However there appears to be some correlation with the number of start-ups a founder has run as a predictor of success.

Though start-up founders were not quizzed on whether their past firms had been a success, 50% of those who have run five or more startups report that they are successful with their current firm – compared to 29% of those that have run one to four start-ups before.

It may suggest that as the country’s tech start-up ecosystem matures, the level of those reporting success is likely to increase. More critical however, will be to close the gap between less successful black tech start-ups and their white counterparts – this will not be easy.

*Note on the methodology the survey used: In all there were 298 respondents to the survey which was conducted using an online questionnaire, by data analytics firm Qurio. Of this number, 38 respondents were found to be employees of startups (rather than founders) and were excluded. The survey therefore sampled 260 start-up founders. 

Have a look through the infographic for more.

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Allan Gray Orbis Foundation Scoops Prestigious International Award

The Allan Gray Orbis Foundation has been named African Leaders in Secondary Education Funding for 2017 by the African Leaders 4 Change Awards.

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The Allan Gray Orbis Foundation has been named African Leaders in Secondary Education Funding for 2017 by the African Leaders 4 Change Awards.

The prestigious international awards identify, recognise and reward organisations doing exceptional work in all areas of philanthropy. The awards have been judged by a respected panel of voluntary sector heavyweights and leaders in their specific fields.

Related: How To Raise Working Capital Finance

“We are humbled and incredibly proud to be named this year’s African Leaders in the Higher Education category, and to be in the company of remarkable organisations doing such important work on the continent. This award demonstrates the Foundation’s commitment to nurturing the entrepreneurial potential in the youth in our country because a culture of entrepreneurship is critical to moving South Africa forward,” says Allan Gray Orbis Foundation CEO, Yogavelli Nambiar.

Nambiar says the Foundation, a vision of Mr. Allan Gray and supported by Allan Gray (Pty) Ltd., aims to foster an ethos of high-impact and responsible young entrepreneurs who possess the tenacity and potential to help change the country and the world with their energy, curiosity and fresh, creative ideas. The Foundation identifies entrepreneurially-minded students on the cusp of entering high school, but in need of financial assistance, and provides them with scholarships to study at leading institutions. In addition to funding, she says Scholarship recipients receive access to customised initiatives to further their entrepreneurial talents.

“Our High School Scholarships help learners to cultivate and develop their entrepreneurial mindset, enabling them to think innovatively; and builds their personal mastery and leadership skills, which in turn enables academic excellence,” she says.

Related: 6 Money Management Tips For First-Time Entrepreneurs

Further to this, the Foundation runs a Fellowship Programme which offers entrepreneurially minded Grade 12 learners, 1st and 2ndyear university students access to funding of their studies while receiving entrepreneurial learning and support.

“Entrepreneurship has the potential to create significant socio-economic impact, through its contribution to economic growth, job creation and social development. It is through the cultivation of that mindset in young people that we are going to make a meaningful change to the future” Nambiar says.

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