Driving financial inclusion amongst entrepreneurs and small business owners in Africa will ensure that they are equipped with the knowledge to transform their businesses into productive and sustainable contributors to the continent’s economy.
This is according to Old Mutual Limited CEO, Peter Moyo, who says that key to this is developing a value-driven ecosystem for SMEs in Africa. “A value chain nurtured and supported by big businesses on the continent will assist in tackling the critical challenges prominent in the region, particularly the need to create a significant number of jobs for the continent’s booming population.”
Moyo was discussing the issue at the 2018 Entrepreneurship Summit and Supplier event hosted by Old Mutual today, World Entrepreneur’s Day, which aims to showcase the robust supply chain of SME’s cultivated in partnership with Old Mutual through various initiatives.
In South Africa, the SMME sector accounts for between 55-65% of economy-wide employment and is a critical interface between the central objective of inclusive economic growth and the structure of the domestic economy.
“For this reason, African entrepreneurship is central to Africa’s future prosperity. The most significant business opportunities in the coming decade will be created by Africans who start businesses, generate jobs and wealth, and capture growth opportunities. Developing entrepreneurship across the continent is, therefore, a critical component in achieving these mutually beneficial shared value goals,” says Moyo.
Khanya Okumu, Small Medium Enterprise Development Manager, Old Mutual Limited said that the promotion and development of entrepreneurship are not only one of the priorities identified by Old Mutual, but also in the South African National Development Plan and national programmes in various African countries.
Recognising that to have scalability and measurable impact when addressing and promoting and supporting SMMEs, Old Mutual established an Entrepreneurship and Job Creation Ecosystem in 2017.
The Old Mutual Entrepreneurship Ecosystem was created to provide a holistic Old Mutual offering to individual entrepreneurs and their businesses that can then be incorporated into the Old Mutual value chain and beyond.
“As a Responsible Business, Old Mutual has a key role to play in two aspects. The first is the provision of affordable access to finance. The second is access to a holistic ecosystem of non-financial support. This entails empowering South African entrepreneurs, and doing the same for our African SME sector, through the establishment of an eco-system that fosters collaboration and partnership,” said Okumu.
“When Enterprise and Supplier Development within large businesses work harmoniously together, as an effective and efficient ecosystem reliant on each other’s strengths and support, both small and large business stand to benefit. Enterprise and Supplier Development within large businesses should move beyond compliance and towards the heart of transformation. Without a thriving and prosperous society and economy, the survival and sustainability of the existing corporates in South Africa are at risk. It is essential that all sectors play a role in enabling positive futures and laying the foundations for growth and prosperity for all. Corporates have the business experience, the funding, and the expertise to empower entrepreneurs and address some of the national issues that hinder their success and growth,” Moyo concludes.
Herman Mashaba To Talk On City Of Jo’burg Job Creation Initiative
Herman Mashaba to talk on City of Jo’burg job creation initiative at 2019 Business Day TV SME Summit.
Leading organisations at the SME Summit
SME Insurance Checklist For New Year
Malesela Maupa, Head of Product and Insurer Relationships at FNB Insurance Brokers, advises SMEs to consider the following factors when reviewing their policies.
Business owners who are planning for the year ahead should not overlook the importance of reviewing their insurance policies to ensure they are adequately covered against insurable risks.
Malesela Maupa, Head of Product and Insurer Relationships at FNB Insurance Brokers says, every year businesses face unique challenges ranging from credit and market risks, technological disruptions, compliance, operational and regulatory risks, amongst others. As a matter of precaution, insurance policies should at least be reviewed or updated once a year.
He advises SMEs to consider the following factors when reviewing their policies:
- Employee movements – if there are any employees who have left or joined the company, ensure that your policy is updated accordingly.
This type of cover normally depends on the role and contribution of the employee to the business. For instance, directors may be covered for Key Person Insurance and Directors & Officers Liability insurance.
- Protest Actions – this year is the national election year and leading up to elections we can expect to see an increase in the frequency and severity of protest actions, riots and strikes. Thus, it is essential to ensure that adequate special risks cover is in place from the South African Special Risks Insurance Association (SASRIA).
SASRIA provides cover to both individuals and businesses against special risks like civil commotion, public disorder, strikes, riots and terrorism at affordable premiums.
- Cyber risks – it is essential to communicate with your insurer or broker and find out if there are any new risks that your business should be protected against. Cyber incidents continue to be a major risk for businesses especially in the SME sector. Over the last couple of years there has been a major increase in the number of reported cyber incidences.
More businesses are now facing increased cyber threats due to their increased dependency on technology, relating to their internal and customer data being compromised by fraudsters. It is therefore essential to have some form of cyber risk insurance cover and/or enhancement of data security protocols.
- Regulatory changes – every year there are a number of regulatory changes that impact businesses directly or indirectly, which may result in fines and penalties for non-compliance.
- Natural catastrophes – the increase in the frequency and severity of extreme weather conditions, coupled with intensifying natural catastrophes will continue to have a significant impact on businesses.
Businesses should ensure they are adequately protected against these risks to avoid incurring sever financial losses.
- Business changes – should a business consider moving to a new location, purchasing new premises or venture into new business activities, these types of changes could have a major impact on its risks profile. As a result, the policy needs to be updated accordingly.
- New and Enhanced products – An innovative culture has taken over the insurance industry and ever so often we see the introduction of new products or the enhancement of existing products. Get in touch with you broker to advise you on any new products that might add value to your existing insurance portfolio.
“Reviewing your policy regularly gives you peace of mind knowing that you can focus on running your business effectively, without worrying about unforeseen risks,” concludes Maupa.
Seven Reasons Businesses Should Promote Flexible Working
By Paul Burrin, VP, Sage People
What hours did you work yesterday? Chances are, it wasn’t 9-5.
The world of work as we know it is changing. With new technology making it easier to work anywhere, anytime, the traditional 9-5 is effectively dead.
Having flexibility in their working schedule is now a key priority for employees, helping them to successfully juggle work and personal responsibilities.
In fact, more than 80% of 3,500 employees Sage People polled globally placed importance and value on flexible and remote working.
Valuing a work life balance has become increasingly important – whether this is to meet family needs, personal obligations or just to avoid rush hour – it is clear that giving employees increased control over their work schedule is good for employees, making it good for business.
With that in mind, here are seven reasons business leaders should be embracing the benefits of flexible working.
1. The world of work has changed
The line between work life and home life is much more blurred than it was just a few years ago.
For example, it’s now common for people to demand virtual meetings, the ability to work from home, and even have ‘duvet days’ when required, rather than having to suffer through the dreaded commute for hours every day.
Furthermore, modern work responsibilities are often cross-functional, requiring staff to interact with more people in different time zones.
As a result, constraints on how, where and when we work should be updated to reflect this cultural shift.
Businesses must be prepared to accept that the working world has changed if they want to truly motivate and engage employees.
2. There’s a war for talent
With top talent becoming more challenging to attract and retain, many industries are facing widespread skills shortages.
This means in-demand employees can be more selective – and the desire for flexibility is a key factor.
For example, a recent study found that 54% of people would be willing to move jobs to gain greater flexibility.
Employers who offer flexible working will attract the best talent and will also be more likely to retain these employees for longer.
3. Flexible working boosts productivity
Workforce productivity has become a global issue. Our research shows that employees are typically working only 30 hours a week, which means there’s a whole day when they’re in the office, but not actually working.
What’s more, most people who work a 40-hour week feel they are productive for only 3.75 days out of the 5-day working week.
Revolutionising productivity in new ways, such as giving employees the freedom to work in the way that best suits them, could go a long way towards narrowing the productivity gap and enabling businesses to get the most out of their staff.
4. Flexible working empowers employees, and shows you trust them
Our research also found that workers want to feel valued and recognised, with two-thirds (66%) of those surveyed seeing this as the most important aspect of their working life.
For many, this is more vital than office perks like games in the office or free food.
Giving employees the freedom to work in their own way shows they are a valued and trusted member of the team. It also empowers them to perform to a high standard and be as productive as possible.
5. It supports worker wellbeing
The health and wellbeing of staff has become more of a priority for businesses in recent years, while also being increasingly vital for employees themselves.
Over a third of employees polled (39%) believe HR and people teams could do more to improve wellness at work, with initiatives such as providing fresh fruit or offering a subsidised gym membership now proving popular.
Flexible working can help in this area by reducing stress (no more mad dashes in heavy traffic), making it something companies need to pay attention to.
6. Employees want flexible working
One of the most important reasons for businesses to embrace flexible working is simply because it’s what staff want.
According to Fuze, nearly 50% of workers across all generations want to be more mobile at work, rising to 70% for those aged 16-44.
Employees want to be able to pick up their kids from school, start and finish early if they have international calls first thing in the morning, or be able to head to a doctor’s appointment without fear they may be considered to be slacking.
Businesses would therefore be wise to listen to what their employees want and respond accordingly.
7. Technology has changed
The most straightforward argument for remote working is that staff simply no longer need to be in the office to do their jobs effectively.
Most workers now have all the tools they need on their smartphones and tablets, which means they can comfortably work from anywhere – a coffee shop between meetings, their home, or somewhere they can work undistracted.
For example, cloud technology gives employees secure access to documents externally, while collaboration and communication tools enable staff to work together from opposite sides of the globe.
Isn’t it time the way we work changed to reflect these capabilities?
Ultimately, enabling flexible working should be a focus for all businesses. From aiding talent retention, to creating positive workplace experiences – which is important to 92% of people – the long- and short-term benefits could prove invaluable.
Most importantly, giving employees flexibility will result in a happier, more engaged and more productive workforce.
In an age of continuing disruption and increasing competition, that’s not something businesses can afford to ignore.
Download Sage People’s research on what employees really want from their employers.
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