We’ve all heard about how regular forest fires clear the way for new life, making for a healthier ecosystem overall. The recent recession has worked in the same way, put millions of people out of work or threatened their employment. But if there is a silver lining to be found in the struggling global economy of the last few years, it’s that these unprecedented economic shockwaves has spawned a new breed of entrepreneur: the accidental entrepreneur – defined as a company founder who started his or her small businesses out of pure necessity rather than a lifelong dream of ‘being their own boss’.
The makings of accidental entrepreneurs
Accidental entrepreneurs tend to have one thing in common: they are agile, highly educated, tech-savvy, battle-tested business professionals and the companies they have founded are born to grow. They make decisions for their company based on analytics and market opportunities rather than emotion or gut-feel. In short, they are driven by profits, not passion. Unlike the butcher, the baker and the candlestick maker, these entrepreneurs are less likely to be fulfilling a life-long dream to own their own business or make their passion their profession.
Like a pack of velociraptors among a herd of herbivores, accidental entrepreneurs are quick to react and take advantage of changing conditions, which gives them an edge over their larger competition. These owners are resourcing and operating their company quite differently from the traditional small business; they understand technology, and they are more willing to adopt the latest trends, such as Cloud computing and virtualisation, to meet the current needs and future scalability requirements of their growing business.
Harnessing the virtualisation
To support this, we have found that South African SMBs are using virtualisation technologies as a steppingstone to the Cloud. Furthermore, the South African market is one of the fastest growing Cloud adopters in the world, second only to the UK. This is attributed to the bulk of SMBs that perceive the move to the Cloud as a cost saving exercise that allows for greater mobility and business flexibility. Some of the major concerns around Cloud adoption in SA, though, are that of security and the unknown, but this has not hampered its uptake.
Sizing up accidental entrepreneurs
In the rubble of the recession, the impact of this explosive economic “tsunami” has been difficult to quantify, but the evidence has landed in the United States at least. New data from Forrester Consulting shows that 75% of US accidental entrepreneurs that are bullish about growth, expect their revenue to grow more than 10% over the next year, compared to just 39% of small businesses founded before the recession. And, 46% expect to double their number of employees in the next two years – that’s four times the number of pre-recession small businesses who report the same. With the right mixture of knowledge and technology, even a small business born of the economic crisis can have a real impact in the market and challenge larger competitors.
The Forrester’s study had a number of other interesting findings, for instance:
- Profits not passion drive small businesses started post 2008. 54% of small businesses founded in the dark days of the recession consider their company a growth business (having an exit strategy) rather than lifestyle business, which is 15% higher than pre-recession companies. More than one-third of the founders of post-recession companies came from a position with a large (500+ employee) company
- Recession-born small businesses take dramatic and immediate advantage of the Cloud. 21% of accidental entrepreneurs have zero servers versus 5% of those founded before 2008. These small businesses trust more applications to the Cloud, with 51% deploying Cloud software and 26% having implemented Cloud security, compared to just 39% and 16% of pre-2008 small businesses, respectively. Interestingly, the research found that all small businesses are aggressively adopting Cloud storage and backup.
- Accidental entrepreneurs are better prepared to scale security. Accidental entrepreneurs are also 27% more confident that their current security solution will scale with their company’s growth over the next two years.
- More self-sufficient in making software decisions. Whether financial/accounting/ERP, collaboration or security software, accidental entrepreneurs base their decision on what software the founder used in their previous job or that they used as a consumer. They also strongly prefer known brands. On the other hand, the majority of pre-recession small businesses base their software decision on the recommendation of a value-added reseller (VAR). For collaboration software, the difference is especially striking, with 50% of pre-recession small businesses acting on the recommendation of a VAR, while 36% of post-recession small businesses chose software that the founder used in his former job or as a consumer.
To this end, software developers globally are redefining their products and service to maximise value to the business owner. The growth and development of the IT and security industry means that services and infrastructure can scale with your business, and is no longer a barrier to entry in terms of cost, availability or functionality. Entrepreneurs can stop worrying about IT solutions and focus on what really matters – growing their business and realising their vision.
A Look At Youth Mentorship During Global Entrepreneurship Week (GEW)
Entrepreneur: A person who sets up a business or businesses, taking on financial risks in the hope of profit.
Global Entrepreneurship Week kicks off from 12 November – 16 November. Around the world, entrepreneurs are carving out their paths and are taking matters into their own hands.
Back home, Futureproof wants to instil a culture of curiosity, tenacity and risk taking in every South Africa – young or old, intrapreneur or entrepreneur.
In fact, we go as far as to teach young children from the age of 8-years-old about the art of entrepreneurship as part of our countrywide school program. Most recently, the company has seen success in the Orange Farm area and is teaching 110 Grade 3’s to master the art of entrepreneurship.
To celebrate this week, the team at Futureproof interviewed several well-known entrepreneurs and asked them the big question: ‘What do you wish someone had told you before you became an entrepreneur?’ Here’s what they had to say:
Clive Murray, the founder and CEO of World Water Exchange: “Making money is easier than keeping it. Don’t change the rules you make for yourself when times get tough.”
Marc Ashton, former MD of Moneyweb and CEO of Dynamic Body Technology:
- Don’t start a business…
- If you are feeling foolish and still wan to then do it with partners.
- If you are doing it with partners then lay out the terms of divorce upfront.
CEO and Co-Founder, Lisa Illingworth says that Futureproof has made it their life’s mission to aid children with the real-life, hands-on skills that they need to succeed as entrepreneurs.
“Text books just don’t teach the things that entrepreneurs really need to know. So much growth and economic activity can be realised out of entrepreneurial ventures, but we are all too scared to take the leap… why? Because we don’t feel supported and we would probably prefer to stay in our comfort zones”.
In fact, while entrepreneurship could literally catapult our country, an article in the Daily Maverick in 2017 described entrepreneurship in South Africa as ‘Sitting backwards on a donkey riding further away’.
Issues that entrepreneurs will come to face, even in their younger years is that of funding issues, lack of mentorship and opportunities, low skill levels, compliance and of course, poor standards of education and lack of access to education.
The current structure of the education system was initially designed in an entirely different age to achieve economic outcomes that are no longer viable due, in large, to the rapid innovation and adoption of technology.
“Gearing the country up for the forth industrial revolution is proving to be a challenge in both the public and private sectors. Are we really ready and how we use this particular week of the year to relook the problems and derive opportunities from them?” says Lisa.
Lisa provides context on the issues that entrepreneurs face. “Imagine this: you have a brilliant idea but no investment. You have no clue where to begin but you take it to the banks and a few potential investors. Without a solid plan and ‘street smarts’, the deals fall through, or you jump through hoops, give away more than half of your company and land up working tirelessly with no returns. This a reality for many who really don’t know how to launch an idea, understand its feasibility and raising the capital they need through mechanisms that won’t cannabalise the business at a later point.”
Lisa says that the country remains hopeful for President Ramaphosa to implement his vision for entrepreneurship as stated in the SONA 2018. “The President stated that ‘establishment through the CEOs Initiative of a small business fund – which currently stands at R1.5-billion – is an outstanding example of the role that the private sector can play. Government is finalising a small business and innovation fund targeted at start-ups’,” she continues.
“We need to change how and what schools are teaching for this to be realised on a large scale and providing the foundations so that these kinds of funding initiatives will have the best possible chance of growth and success”.
Make Your Travel Even More Rewarding
From engineers to businessmen, hairdressers, creatives and stay-at-home-partners, the British Airways Executive Club benefits all who join.
The British Airways Executive Club is uncomplicated, free to join on ba.com and from the moment you join, you will benefit from exclusive privileges and rewards, such as upgrades, hotel stays and car rentals with British Airways and oneworld® airline partners.
Besides collecting Avios, which can be redeemed on flights, you will also collect Tier Points every time you travel, allowing you to progress through the different Tier levels within the Club, which are Blue, Bronze, Silver and Gold.
Your Tier status will open up a world of opportunities and added benefits, such as fast track check-in, free seat selection and saving your meal preference selection as part of your Executive Club profile for future flights.
When travelling within southern Africa or internationally on British Airways, Executive Club members from Silver Tier status and up will experience a valuable and enjoyable ‘moment in time’ between checking in and boarding with lounge access into all British Airways eligible lounges. Some of these features include on-site spas, wine tasting from a monthly selection of the finest South African and international wines, a Living Library, private meeting spaces and business facilities to mention but a few.
The more Tier points you earn the sooner you will reach your next Tier status in the Club, which will result in additional benefits, such as bonus Avios, priority check-in, extra luggage allowance, access to over 170 lounges worldwide and enhanced opportunities to afford the luxury of travelling in the British Airways Club (Business Class) cabin.
When travelling in Club, priority boarding is on offer giving passengers a minute or two to reflect as they settle into the comfort of the business class seats, meaning significantly more space, which can be utilised to work on your next business pitch, read a book on your digital device or stretch out and relax before touching down.
Be welcomed with pre-drinks and a hot towel as you get seated and wait for the rest of boarding to complete as the flight embarks to your chosen destination. On-board hospitality will include a variety of delicious meals, which gets your day off to the best start or ends your trip on a tasteful note. Being an Executive Club Member, your meal preferences can be stored and offered where possible.
As part of the Executive Club you will collect Avios every time you fly and you can even top up your Avios with ease and make use of a collective balance by pooling Avios together within a household account, to reach your dream destination sooner. By calculating earnable Avios and Tier points with the simple calculator available on ba.com, an estimation can be done before booking your next flight.
Take advantage of the opportunity to redeem exclusive awards with Avios by booking reward flights, upgrade flights or spoil friends and family by gifting your Avios.
Appreciate travel more than ever before with The British Airways Executive Club. It’s designed to recognise and reward all passengers, ensuring every journey is exceptional and enjoyable.
Fly with British Airways on its extensive route network within southern Africa and beyond which includes Johannesburg, Cape Town, Durban, Port Elizabeth, Livingstone, Harare, Victoria Falls, Windhoek, Mauritius and London.
For more information and to become an Executive Club Member visit ba.com
How Schindlers Attorneys Became Involved In The Landmark Cannabis Case
Everything you accomplish accumulates and eventually comes back to assist you further along in your career. This is how a final year LLB assignment became the basis for a Constitutional Court case.
Schindlers Attorneys are the law firm that were involved in the landmark Constitutional Court judgement on cannabis use within a private space. Paul-Michael Keichel, Partner at Schindlers Attorneys shares how they came to be the foremost legal experts on cannabis and how they became involved in the Constitutional Court case:
How the journey began
“In 2005, my first year at Rhodes University, whilst studying for Intro to Law, it occurred to me that there were strong constitutional points that could be raised to objectively justify the decriminalisation of cannabis in South Africa,” explains Paul-Michael Keichel.
“In my final year LLB, 2009, I took Constitutional Litigation as an elective (largely motivated by the creation of a timetable clash, which meant that I’d not have to sit another semester of lectures for a module that I had failed the previous year). This provided me with the opportunity to write an assignment titled “A Critical Analysis of Prince and an Objective Justification for the Decriminalisation of Marijuana in South Africa”, in which I composed my argument (based on the right to equality in our Constitution).”
The start of the partnership
“Fast forward to 2013 and the Dagga Couple find themselves at Schindlers (where I am a first-year associate) to register their NPC, “Fields of Green for All”. The attorney handling the registration (who I’d also bored with my argument) suggests to the Dagga Couple that they speak to me. It turns out that they already knew of me, because my assignment had (unbeknownst to me) done the rounds on the underground cannabis networks. We get chatting and I rope-in my brother, Maurice Crespi, the managing partner of Schindlers,” explains Keichel.
“We are the only firm out of many approached by the Couple who are willing to take on their trial action against 7 state departments and Doctors for Life to push for a declaration of constitutional invalidity of the laws prohibiting cannabis use/possession/dealing in South Africa. We decide to run the challenge for them pro bono.”
The Cape ruling that started it all
“Prince and Acton et al have their matter heard in the Cape, which resulted in the 2017 Judgment. We run a portion of our trial (including expert evidence from international scientists and doctors – the best in field), but it is rendered part-heard. We then heard that Prince and Acton et al’s matter will be heard by the Constitutional Court in November 2017 and we decide, with the Dagga Couple, to intervene in that matter, upon which it is confirmed that my 2009 assignment forms the on-record basis of a major chunk of Prince and Acton et al’s arguments in support of legalisation.”
“Our involvement in the Constitutional Court was such that we provided clear legal argument and authority to support and expand upon what Prince and Acton et al were trying to say to the Court. Ultimately, much of what we submitted has found its way into the judgment of the Constitutional Court.”
How a final assignment became the foundation for a Constitutional Court case
“So, an idea (bolstered by wanting to create a timetable clash) resulted in an assignment, which provided certain credibility and impetus to cannabis activists. Two of these activists ended up being our clients, which, despite being handled pro bono, has brought Schindlers immeasurable positive publicity, and which, ultimately, contributed to the decriminalisation (and potential future legalisation and commercialisation) of cannabis in our country.”
“Schindlers now has a dedicated “Medicinal and Recreational Cannabis Law” department, through which we will continue to make submissions to parliament, apply for licenses on behalf of our clients, support those who have been arrested and charged.”
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