The South African labour market remains vulnerable, particularly in the youth employment sector. While there is a call for more entrepreneurs, further support for SMME’s and increased youth employment by government, the youth of today lack the skills, knowledge and opportunities to answer to the call.
Riddled by poverty and unemployment, South Africa remains a country in crisis. With more than 3.3 million* unemployed youths, entrepreneurship has been highlighted to eradicate our unemployment woes; here’s the catch though: a recent study on education depicted the effect that poor education has had on entrepreneurs, who are largely ill-equipped to run their own businesses as a result. (Businesslive.co.za (2017)).
Getting youths to grips with entrepreneurship
By combining a background in education and entrepreneurship, entrepreneurial educationalist, speaker, radio presenter, mother of two and all-round go-getter, Lisa Illingworth co-founded Futureproof to educate youths from as young as primary school on real-life entrepreneurship.
As an ex-teacher, Lisa recognised a serious need for educating children on the practical application and art of entrepreneurship to create a generation of informed, thriving youths. “Young adults in the 21st century are entering the working world equipped with knowledge and skills that are irrelevant for the workplace,” explains Lisa.
Futureproof is built on an unwavering commitment to entrepreneurship as a mechanism for intervening in the poverty cycle that our youths are caught up in. “I don’t want to watch another generation driven by poor education standards, self-entitlement and helplessness”.
Lisa believes that entrepreneurs possess qualities that each of us can aspire to in order to take charge of our own futures: they identify a problem or a gap and create a service or a product to solve this problem and generate a flow of money. “Their tenacity is something that few can relate to. Entrepreneurs sacrifice short-term gain to deliver a long-term solution and derive an income from their efforts and passion. Nothing comes easy to an entrepreneur, so persistence is key” she emphasizes.
In a country where many simply admit defeat, Lisa and her team believes that possessing an entrepreneurial mindset can set our youths apart and accelerate them in the working world. “Futureproof exists with a massive transformative purpose to educate the future generation of entrepreneurs,” explains Lisa. “We aim to identify and grow the 5% of high impact entrepreneurs that will create the much-needed economic transformation that this country requires but organically, this process allows kids to learn how to create their own income opportunities” Lisa continues.
Futureproof – for purpose, for profit
Today, Futureproof is a “for purpose, for profit” business. We sacrifice neither. “This business is built on a model that was based on authentically practicing what we teach. Many social enterprises default to a charity and this business is unapologetically not a charity. We teach kids to build sustainable enterprises and we mirror this through the way we do business”.
Futureproof provides kids the opportunity to craft their own futures by applying the entrepreneurial skills gained in their real-life situations. “By instilling an entrepreneurial mindset, we look to cultivate a generation of hungry entrepreneurs who are able to identify and build-on opportunities. Our courses teach problem solving at the highest level to the youngest kids, and we have seen some amazing success stories come out of this in kids as young as eight years old”.
At its helm, Lisa says that Futureproof’s Board of Directors is made up of some of the country’s top business minds – a team driven by passion and purpose. “We attract incredible people in business and for this reason I am pleased to be surrounded by top women in their respective fields such as S’onqoba Maseko and Chairperson of our Board of Directors (previous head of innovation for FNB and now the COO of Future Nations Schools) and Masenyane Molefe – our Human Resources Specialist and HR Director of Hyundai South Africa.
For more information on Futureproof’s programmes and how to get involved, visit: www.futureproofsa.com
Top Sectors For SMEs In 2019
“As such, SMEs in the construction, communications and electrical fields are all likely to benefit from supply and sub-contracting agreements over the coming years.”
While the South African economy has been underperforming for a number of years, the first positive signs of turnaround started to become visible by the second quarter of 2018, and by the end of the third quarter, data supplied by Statistics South Africa showed that the economy had indeed grown by 2.2 percent, compared to the previous quarter. This uptick is expected to have a positive effect on business confidence in 2019.
This is according to Jeremy Lang, regional general manager at Business Partners Limited (BUSINESS/PARTNERS), who says that certain business sectors have already seen an increase in opportunities for small businesses and start-ups.
“While these sectors will not be without challenges, the following four industries are likely to offer the best opportunities for small and medium enterprise (SME) owners to grow their enterprises in the coming year.”
The World Travel and Tourism report 2018, revealed that the direct contribution of the travel and tourism sector to South Africa’s GDP has been projected to rise from R136bn in 2016 to R197.9bn by 2028 – set to make up a total of 3.3 percent of the country’s total GDP, says Lang.
“Although this sector experienced some setbacks in 2018, such as the drought in the Western Cape and stricter visa regulations for children entering the country, both the water restrictions and visa regulations have been relaxed and the sector is once again poised for growth,” he says.
Statistics South Africa has credited this industry with being the biggest driver of growth in the country’s GDP, having expanded by 7.5 percent in September 2018, says Lang. “To bolster this, Government has made a concerted effort to stimulate small business growth in this area with initiatives such as the Black Industrialist Programme and the SA Automotive Masterplan.”
He adds that businesses in the manufacturing sphere could therefore likely see significant opportunities in the form of outsourcing contracts and new partnerships with large corporates.
“The debate around land expropriation has occupied most of the discussions surrounding the agricultural sector in 2018, with some questioning growth prospects of this sector. However, this industry has a lot of growth ahead of it, as demonstrated by its 6.5 percent growth over the last three months of 2018,” explains Lang.
“Further to this, the industry is also already taking significant advantage of seven climatic regions in South Africa, with the export of a wide variety of high quality fruit and vegetables increasing substantially,” he points out. The recent outbreak of foot and mouth disease that has resulted in the suspension of the country’s FMD-free status will however significantly impact meat exporters.
In terms of opportunities for SMEs, he says that these may most likely be found in the rural and underdeveloped regions, where the need for resources like efficient transport, state-of-the-art cold storage, better irrigation and private power generation will be key to making agriculture projects more productive and competitive in the export market.
Data and information technology
Connectivity and information technology infrastructure are both crucial to business and employment growth in South Africa, says Lang.
“With many municipalities and the Western Cape government committing to providing all of its residents with free data as part of a plan to expand public Wi-Fi network access, it is clear that this is also becoming a high priority on a state level.”
It has also been reported that South Africa is awaiting the arrival of three international data centres, and large players in the communications sphere, including Vodacom, Telkom and Vumatel, are making huge strides in drastically growing the country’s fibre optic backbone, he adds. “As such, SMEs in the construction, communications and electrical fields are all likely to benefit from supply and sub-contracting agreements over the coming years.”
In conclusion, Lang says that as South Africa’s economic growth has started to turn around, business owners should keep their ears to the ground as 2019 is highly likely to be a year of opportunity.
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.
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