In 2014, Chivas Regal, the world’s first luxury whisky, launched The Venture, a global competition to find and support promising entrepreneurs from around the world who want to Win the Right Way.
Currently in its third successful year, Chivas Regal South Africa can now announce the top 10 finalists of its unique elevator pitch series, hosted by the glamorous Top Billing presenter, Lorna Maseko. The winner will walk away with R350 000 and the chance of a lifetime to represent South Africa in the international version of the Venture 3, taking place in the US.
The competing entrepreneurs are a business-savvy group who want to succeed while making a positive impact on the lives of others. They are:
Describing her business as an “African Etsy”, Caley created a simple digital platform where high-revenue artisans can partner with artisans in rural communities and sell their authentic work internationally. The aim of the partnership is to empower communities, giving them the opportunity to keep 60% of the profits.
2Menzi Mahlobo – Ocean in Motion
Once funded, the sustainable Ocean in Motion will offer systems that simulate ocean conditions anywhere, thus seafood can be bred and sourced inland. Through this solution, Menzi’s business will tackle food security, unemployment and rising food costs.
3Mathieu Coquillon – Mama Money
Designed for immigrants from other African countries working in South Africa, the app’s catch phrase is “Send More Money Home”, and allows the users to send money back home for food, education, medicine and other basic needs at greatly reduced rates.
4Lara Mare van Niekerk – Boma Brands cc trading as Rush Bar
Through Boma Brands cc, Rush Bars are marketed to athletes and those who want to consume “natural” products more often. Striving to uplift South Africa’s communities, Rush Bar sources its supplies locally and teaches impoverished communities to grow fruit trees that could form part of Rush Bar’s value chain.
5Luvuyo Rani – Silulo Ulutho Technologies
Luvuyo’s business is about making communication and teaching technology accessible in emerging and rural communities throughout the Eastern and Western Cape, as well as providing employment opportunities.
6James Their – I-drop Water
This environmentally friendly water purification system gives vulnerable communities access to safe, affordable water. With pilots already in three countries, the system can purify almost all harmful bacteria, and allows retailers to earn income for every unit operated from their outlets.
7Risna Opperman – ROSES FOR U
Through ROSES FOR U, Risna will incubate a number of small farms in the Free State that will distil highly sought-after rose essential oil. Hopefully, the farms will go on to supply a number of industries throughout South Africa and maybe even the world.
8Sizwe Nzima – Iyeza Health
Already making a difference, Iyeza Health is a bicycle-based courier company that delivers essential medications and HIV-testing kits to residents – many of them constrained by age, disability, poverty or time – of Cape Town’s less fortunate areas.
Related: How to Crack Social Entrepreneurship
9Matt Wainwright – Standard Microgrid
Standard Microgrid is a solar-powered energy system that distributes energy without access to electricity. Each utility can service 150 homes, and users only have to pay a flat fee for a month’s usage, enabling them to use the funds for further development.
10Ross Kramm – Mama Mimi’s
Ross is the founder of Mama Mimi’s, a bakery franchise that uplifts small rural communities by baking and supplying bread directly where it is consumed. This model creates entrepreneurs who run the micro bakeries, lowers the price of bread as delivery costs are removed, and creates employment.
These aspiring social entrepreneurs have come far on their personal journeys, however their “ventures” have only just begun. On 26 January 2017 at 18:30, you can catch up on their elevator pitches and see which of the five from top 10 were chosen to present their business plans to an esteemed panel of judges and celebrities, including former CEO of multi-billion rand diversified African investment holding company Shanduka and current Executive Chairperson of Sigma Capital Phuti Mahanyele; IT influencer best known as the founder of fintech company Thumbzup Innovation Stafford Masie; and renowned entrepreneur and content architect Kojo Baffoe.
It is these prominent experts who will decide South Africa’s The Venture 2017 winner, investing R350 000 in their idea and allowing him or her to represent the nation at The Venture Year 3 final in the USA. The winner will be announced on Mzansi Magic.
Shelley Reeves, Marketing Manager Scotch Whiskies at Chivas Regal, asserts that the essence of Chivas Regal’s global campaign Win the Right Way aligns the values of Chivas Regal with the human value of aspiring to use enterprise as a force for good through social entrepreneurship. This innovative form of business, she believes, creates renewed focus on key aspects of social development, such as long-term sustainability and efficiency, by blending traditional business objectives with the South African philosophy of Ubuntu.
“Over the last two years, we have shown our belief in and commitment to this philosophy by awarding USD2 million to start-ups globally that ‘do well by doing good’, because we believe purpose and profit can coexist,” she says.
Watch who makes it to the USA in the televised final on 26 January at 18:30 on Mzansi Magic.
What Franchises Need To Lookout For From Budget Speech
Franchise business owners are waiting with bated breath for the outcome of the 2019 National Budget Speech to be delivered by Minister of Finance, Tito Mboweni, as they seek more opportunities to increase their contribution to GDP.
Morne Cronje, FNB Head of Franchising, says the Budget Speech is an important economic indicator that franchises can use to gain insight on the government’s plans on spending and economic growth for the year ahead.
He highlights potential National Budget Speech outcomes that could boost confidence of franchises:
Any form of relief that is likely to bring positive change, rebuild confidence and address some of the key challenges impacting consumers will be welcome by franchises.
Cronje says consumer spending contributes a significant portion to the profit margins of franchises especially in the food sector.
Rating agencies are keeping a close watch on South Africa’s performance and prospects for growth, which will impact our Sovereign ratings for the rest of the year.
Measures that the government puts in place to promote economic growth this year will be of interest to franchises.
Franchise owners will be looking to benefit from regulatory changes that aim to improve growth, operating environment and enhance participation in all facets of the formal economy.
Based on the Mid-Term Budget Review in October 2018, there’s likely to be no major shake up from a business tax perspective. The anticipated relief in tax will go a long way to boost the profit margins of franchisees.
Spending on infrastructure creates vast opportunities for franchise business owners, as well as job creation in the country. The government has signalled an intention to partner with the private sector to develop an infrastructure fund to increase investment in public infrastructure.
“Franchises that operate in South Africa should prioritise the National Budget Speech as key decisions announced by the minister have a direct impact on their growth,” concludes Cronje.
5 Businesses You Should Start in 2019
Here’s the lowdown on consumer and technology opportunities in 2019 and beyond.
Savvy entrepreneurs should keep a close watch on consumer and technology trends in 2019. This, according to Silvertree Internet Holdings Co-founder and MD, Manuel Koser. Having invested in and grown a number of highly successful South African brands (among them Faithful-to-Nature.co.za, UCOOK.co.za, Pricecheck.co.za, CompareGuru.co.za, Petheaven.co.za, Cybercellar.com, and CarZar.co.za). Silvertree’s management team sees several business opportunities set to grow exponentially over the coming decade.
Here’s the lowdown on consumer and technology opportunities in 2019 and beyond.
1. Indigenous and ethical: Personal and home care products
2019 Sees growing potential for personal care products – ‘Those with local and indigenous ingredients, ethical sourcing which is kind to nature and the body,’ Koser explains. ‘There is a lot of room to play in the African haircare market particularly, as it’s often overlooked by the major FMCG companies.’
The Silvertree MD also sees increasing room for innovative natural home cleaners as consumers become increasingly environmentally conscious. ‘Until now, it was all about the well-known cleaning products the major chemical manufacturers put on the shelves. Now, there’s increasing space for new, exciting entrants.’
2. New beverages
‘Locally-sourced ingredients and an earth-first mindset will also play an increasing role in the consumer beverage market. Add to this the fact that major soft drink manufacturers will struggle to produce drinks for increasingly health-conscious consumers. They’re often just not quick enough to adjust to changing consumer tastes – particularly the tastes of millennials. Think less about a standard fizzy drink, but rather one that’s kind to the body, with natural ingredients. Non-alcoholic: water plus, say, cucumber, or another indigenous ingredient. The market for this will grow.’
3. Ethical snacking
Plant-based, vegan, ancient grains, ethical, protein-rich snacks – these are just some of the trends Koser sees dominating in the snack segment in 2019 and beyond. It’s about unique, tasty, functional foods that cater to the modern, time-starved consumer, Koser explains.
4. Buy, sell and compare online
In the technology space, marketplaces, e-commerce sites and classifieds will all gain momentum in 2019 and beyond. This encompasses aggregators as well as more unusual online businesses, which are increasingly able to find and reach consumers interested in niche products and services.
‘Consider an online ice-cream business. Once, something like that would have been unthinkable,’ Koser explains. ‘But as consumers demand greater choice, room for niche products like this grows.’
Yet, dabble online and seamless execution and delivery become make-or-break factors. ‘Many South African consumers use services such as Google, Amazon, Uber and Spotify daily – world-class products that function on a global scale. You can call an Uber and wait for just two minutes before getting a ride,’ Koser explains. ‘It’s quick and totally seamless. Consumers have come to expect that level of service across the board. Aligned to this is the fact that the millennial wave is currently hitting Cape Town right now, and Joburg secondarily, meaning a number of opportunities are opening up. Go after products and services in the right space and consumers will follow.’
5. Reinvent the wheel – and make it better
The final type of business entrepreneurs should keep an eye on is those that currently have low Net Promoter Scores. ‘This means that very few people like them, or the services they provide are of very poor quality,’ Koser explains. ‘Think of postal service providers or telecoms companies. With any monopolistic or oligopolistic structures, the service is often terrible because the heavyweights hold so much power. There’s a huge gap here.’
An allied approach for entrepreneurs is to assess opportunities for automation, or cutting out the middleman with technology. ‘Once, many markets – such as real estate were opaque, meaning you needed a middleman to help you transact. However, as the capabilities of technology have grown, markets have become far more transparent – making it easier for buyers to match with sellers safely. Today, a lot of this is easy to automate services – think about connecting a homeowner to a prospective renter through a digital solution where renters can be qualified, for example, in terms of their finances, personal information and criminal records. Quick and simple. And no middleman.’
The biggest opportunities here centre around where consumers spend the greatest amounts of time and money, Koser notes. ‘Housing and rent are always major costs. In terms of where consumers spend their time, on the other hand, much of it is, on a mobile phone, or PC.’
However, entrepreneurial success is never down to any one magic formula, Koser emphasises. Nor does Silvertree invest in prospective entrepreneurs solely on the basis of the product or service they offer. ‘It’s about passion, perseverance and tenacity as much as it is about the quality of the product.’
Silvertree Internet Holdings is an investment growth partner who aims to understand, grow and scale business, consumer and digital brands to unlock the brands’ exponential growth.
What To Watch For In Tito Mboweni’s First Budget Speech
By Rob Cooper, tax expert at Sage, and chairman of the Payroll Authors Group of South Africa.
Finance Minister, Tito Mboweni, delivers his first Budget Speech on 20 February at a difficult time for the South African economy. Even though President Cyril Ramaphosa has done much to restore business confidence in his first year in office, GDP growth remains weak, government finances are in relatively poor shape, and renewed load shedding is hurting business confidence.
Judging from his Medium-Term Budget Policy Statement in October last year, I expect Minister Mboweni — backed by the team in the National Treasury—to deliver a relatively cautious budget. Much of the focus will be on refinancing the state-owned enterprises and putting them back on to a sustainable footing.
We probably won’t see much in the way of radical thinking since the room for manoeuvre is so limited. Click each header below for an indepth video on the upcoming topics.
Renewal of the country’s public healthcare system with a mandatory health insurance fund and free healthcare at the point of need has been the ANC government’s policy for years, but progress has been slow to date. There isn’t much money in the country’s coffers to fund something as ambitious as NHI, yet the government will want to show that it is advancing the concept ahead of the elections.
With an NHI bill to be tabled in Parliament soon, we could learn more about how NHI will be funded in this year’s Budget Speech — it’s still not clear whether we will pay for it through payroll taxes, VAT increases or other fundraising measures. As an initial step, we could see medical aid tax credits reduced (or at least not adjusted for inflation) to free up some funding for the NHI.
The ETI Act came into effect on 1 January 2014; as a fan of this incentive, I was delighted that President Ramaphosa announced that it will be extended for 10 years another decade in his state of the nation address. However, I have also long argued that the scheme is not performing to its true potential because it is so complex for payroll managers to administer.
The introduction of the national minimum wage adds even more complexity— until and unless the ETI Act is amended, SARS is of the opinion that the National Minimum Wage will not qualify as a “wage regulating measure”. I hope the Budget Speech will announce steps to align the ETI with the national minimum wage and take other measures to simplify administration.
I don’t expect any major increases to corporate or personal income tax this year since the taxpayer doesn’t have much more to give. I think the top 45% rate will remain unchanged, while tax bracket creep relief (to compensate for inflation) will be limited to lower income earners. It seems unlikely that the Minister will increase VAT again this year, given last year’s increase.
That means the Minister is likely to look at ‘moral’ taxes (sin and sugar taxes) to raise more money; we can expect another steep increase in the fuel levy. Perhaps we’ll also hear about efforts to improve SARS’ revenue collection after several years of under-performance. The agency seems ripe for a turnaround strategy, with high-powered team looking for a permanent chief to take the reins at SARS.
Follow us on @SageGroupZA on 20 February 2019 for LIVE expert insights from the annual Budget Speech.
For more information about Sage’s annual tax seminars, please visit: https://get.sage.com/PRL_19Q1_C4L_ZA_EVCU_NPS_AnnualPayrollTaxSeminar2019
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