Global Entrepreneurship Week (GEW) takes place from 12 – 16 November 2018 and in an emerging market that needs to create millions of new jobs – most of which can only come from SME’s that Scale Up – this is a very significant week, representing the main hope of a more prosperous and more fair future.
But scaling up can be daunting. Out of every 1,000 businesses, 10 have the potential to scale and create wealth. That’s just 1%. What’s worse, of the elite 1%, 20-30% will make it to the ‘Promised Land’ while the rest get stuck in No Man’s Land – the Bermuda Triangle of growth – or fail
As entrepreneurs on this daunting journey, we need inspiration! Happily, SA has plenty of inspiring, award winning entrepreneurs to learn from.
Here, 10X-e shares insights from some of the award-winning Scale Ups on the 10X Scale Up Accelerator.
But who are 10X-e, and what is the 10X Scale Up Accelerator? 10X-e exists to help elite Scale Up novices to 10X their business. “Most of the best young entrepreneurs fail to scale first time around. We’re here to fix that” says Goldberg, 10X-e’s Founder.
10X-e partners with Sponsors to provide world class Scale Up support to SA’s highest potential ventures. Recently, 10X-e and AlphaCode came together to accelerate SA’s top Fintech Scale Ups.
“We offer a tried-and-tested 12-part formula for rapid growth and it all starts with a Business X-Ray which essentially exposes the strengths and weaknesses of your business, to ensure that the foundation of your business is solid enough to handle the rapid growth. If there are weak links that need work, the X-Ray will reveal them”.
Jason says that the company deals with ‘disruptors’ who disrupt markets and industries by scaling innovative new offerings or business models, typically leveraging new technology or new market circumstances that make new ways of doing business both possible and better.
Building Award Winning Businesses
“Many of our clients are achieving impressive things, and we would like to pay tribute to just some of these”.
“Click2Sure is innovating the insurance space with a full stack digital insurance platform that enables them to do things like insure your new cell phone at the point of purchase – whether that is in a store or online. Launched in 2017 and founded by serial entrepreneurs Daniel Guasco and Jacques Van Niekerk, Click2Sure is currently on the AlphaCode 10X Program” says Jason. The company recently announced their new venture with Greenlight Re Innovations – a specialist property and casualty reinsurance company from the Cayman Islands. This will add rocket fuel to their international expansion”.
A2d24 – part of the September 2018 10X Cohort – recently won Innovator of the Year award in Sanlam / Business Partners Entrepreneur of the Year awards. Muhammad, the Founder and ex-McKinsey consultant, has led the firm in developing an innovative app for Emergency Medical Services in Gauteng which reduces ambulance dispatch time and saves lives, a predictive model for a mobile phone network service provider in Cameroon, and a mobile application to assist in malaria prevention in Mozambique. More recently, they have created an unrivalled Internet Of Things Point Of Sale device to help merchants grow sales and improve service.
InvoiceWorx received a third-place prize of R750 000 from SAB Foundation’s 2018 Social Innovation and Disability Empowerment Awards for Spaza Credit – a micro-finance solution for retailers in the informal sector.
The Spark Education Group of Schools – on the 10X Program since 2017 – are transforming education using technology, preparing kids for a more complex and technology-dominated future. They have walked away with no less than 9 business awards for the business itself and the founding members.
So, what’s the secret to Scaling?
“Ask any successful entrepreneur and they will tell you: Scaling is incredibly hard!”
Jason says that this is for a lot of reasons; one being that as you scale is that you build up ‘organisational debt’ – the silent Scale Up killer. “‘Organisational debt’ is essentially a backlog of ‘Capacity’ (scalable systems, processes, skills, people, and general ‘fixes’) needed for your organisation to work well at your current scale”.
He continues saying: “The more you scale, the more capacity you need. You don’t have it, mostly because you’ve been so busy selling and delivering and dealing with people issues that you have not taken the time required to invest in scaling capacity. The ‘Capacity’ you need, and don’t have, is your organisational debt. It is invisible. And it is deadly”.
To kill your Organisational debt before it kills you, the first thing you need is to see it. “That’s why we created the Scale Up X-Ray – to provide X-Ray vision into your organisational debt. It will show you the systems and processes that will be the weak links that break when you scale, so that you can fix them before they break”.
Scale Up X-Ray
The start of any Scale Up journey and one that every one of the 10xe award winning businesses undertook, looks to expose the business and identify any fatal flaws and great strengths prior to the program. The Scale Up X-Ray will help you see clearly:
- Your company lifecycle stage and most important next milestones to prioritise
- Your current business complexity and required level of organisational developmental
- Your actual level of business development, relative to that required, in each of the core Scale Up functions
- Your Scale Up weak links –your most urgent business development priorities
- Automated recommendations on how to address your Scale up weak links.
If you are scaling and want to focus on the most important priorities, including fixing weak links that could kill your business, apply for a fully sponsored Scale Up X-Ray now.
Our team has helped some of the country’s most exciting high growth businesses scale up and reach their maximum potential. We tailor make workshops to the specific needs of you, your team, and your business, all facilitated by seasoned Scale Up leaders, to help you solve your most complex problems and remove the hurdles to 10X growth.
For more info on 10X-e, and to join their Path to Scale Workshop being held in Cape Town in February 2019.
Inspiring A New Generation Of Learning – Education As A Basic Human Right
Access to education isn’t a privilege, it’s a basic human right – Mzwandile inspires a new generation of learners.
Raised by his aunt and uncle after his parents passed away at a young age, Mzwandile Harmans attended a poor school in Cala, the heart of the rural Eastern Cape. It was his matric year; but with limited resources at Masikhuthale Public Secondary school, the pass rate was low and the learning environment less than ideal for conscientious learners.
Then one day a teacher came round to talk about Engen’s Maths and Science Schools (EMSS) programme, and everything changed for this talented young man who was determined to realise his full potential.
“We were given a chance to take a test to qualify for the EMSS Cala programme. The programme offered supplementary classes in maths, science and English, which ran every Saturday morning, but was 25 kilometres away,” remembers Mzwandile. “Fortunately, I took it seriously and I got in.”
Making the long round trip every weekend to attend the programme saw a steady improvement in Mzwandile’s maths, chemistry, and physics marks, so much so that he was awarded a full Engen scholarship to study Chemical Engineering at the Cape Peninsula University of Technology (CPUT).
Mzwandile later impressed with his tertiary studies and after two-years was offered a one-year internship at the Engen Refinery in Durban, which he passed with distinction. On graduating from CPUT, he landed a two-year employment contract with Engen, as part of the company’s graduate development programme.
Today, Mzwandile is permanently employed as an Environmental Technician at the Engen Refinery. “I am so grateful to Engen for all of this,” says Mzwandile. “I never thought it could happen to me.”
Engen’s Head of Transformation and Stakeholder Engagement, Unathi Magida says access to education is a fundamental human right. “This resonates particularly with Engen as a company, as we believe in the value of education and know how important it is to ensure that young people have the opportunity to realise their full potential.”
Chwayita Mareka, Engen’s Head of Human Resources, says the company’s investment in young talent has focused on the Maths and Science Saturday Schools because they understand the bigger country agenda.
“As Engen, we try and play our part in helping to develop South African’s talent pool, as there is a scarcity of Science, Maths and Engineering skills. We offer bursaries for students to go to universities in these fields and we look after them, especially if they are from disadvantaged communities,” says Mareka.
“Later, they come into Engen as graduate trainees as part of our graduate development programme wherein we assign them a mentor that exposes them to the real business,” she adds.
Mzwandile’s journey is just one of many inspirational Engen stories that will be shared as part of a new TV series that aims to create a positive narrative around South Africa’s success stories. The SA INC. TV series which launches on 7 April is a partnership between Business Leadership South Africa (BLSA), Brand South Africa and producers, Regency Global.
“At Engen, we strongly believe that a country which is educated is a country that will prosper. We are pleased to play a part in helping to develop South Africa talent, especially our young learners based in rural areas,” says Magida
To watch Mzwandile’s story please visit the website: https://regency.global/engen/ and the following hashtags: #JourneyWithEngen #BusinessBelieves #SAINC #humanrightsday #awesomesouthafrica #sustainability #livesouthafrica #weheartsa.
How SMEs Can Stand Out From The Crowd
A recently released SME Landscape Report: An Assessment of South Africa’s SME Landscape: Challenges, Opportunities, Risks & Next Steps’ 2018/2019, revealed that 40 percent of small and medium enterprises (SMEs) find that the industry that they operate in is extremely competitive. It also states that considering the low growth environment, this is likely to continue further into the future.
To assist struggling entrepreneurs, Byron Jeacocks, Regional General Manager at Business Partners Limited (BUSINESS/PARTNERS), says that it is imperative for SME owners who find themselves in this predicament to determine and implement tactics to remain competitive in saturated industries. “A good example of how to do this, is Business Partners Limited’s client, Prashun Sharma, owner-manager of glass and aluminium company, Aluminium Doctor, who was faced with an overtraded industry teeming with informal operators when he started his business seven years ago.”
“This was because the glass and aluminium industry suffered a contraction following the Soccer World Cup construction boom in 2010, and as a result, many tradespeople were retrenched and subsequently started up their own informal glass and aluminium installation operations to make ends meet,” Jeacocks adds.
Explaining how he ensured a competitive edge in his business, Sharma, who was also retrenched from his senior management position at a large aluminium company, says that when he started his company he decided to make it formal, compliant and professional. “I wanted to incorporate my corporate and managerial experience to differentiate my business, and to elevate this, I enrolled in a business management degree.”
“My degree covered everything from strategic management, supply management, first-line management to directorship and it touched on everything from listing on the stock exchange down to conflict management and change management. This really prepared me for business and I believe it was a key ingredient to my business’s success,” he points out.
However, Sharma says that when starting their businesses in a saturated industry, entrepreneurs should not feel despondent if the process is slow at the beginning. “At first in my journey, there seemed to be no difference between Aluminium Doctor and the rest of the informal businesses in the industry, but I continued to lay a formal foundation, whilst consulting with my lawyer and accountant to make sure these foundations were sound. I also started to develop professionally made marketing material, a website, formal email addresses and a fixed phone line.”
Aluminium Doctor’s breakthrough came a year and a half into the business, when it won a substantial contract with the building of the Durban ice rink, says Sharma. “This is when I knew that it was time to formalise my business premises and I found a 1000 square metre factory in Brairdene, Durban.”
However, in order to purchase the building, I needed to obtain funding and I believed that it was clear from the financials that the company could afford to buy the building, but the banks were not sure whether our fast growth was sustainable. “I was then introduced to Business Partners Limited which considers finance applications based on the potential of the business, and also on the capabilities of the entrepreneur rather than just on the balance sheet and age of the business.”
Commenting on this, Jeacocks says that Sharma’s management style and his commitment to furthering himself as an entrepreneur by studying business management was also a contributing factor to the approval of his business’s property finance loan,” comments Jeacocks.
“Today, seven years since he started, Sharma’s careful attention to his business’s formal foundations is still paying off. Just in the last twelve months, in an extremely challenging economy, Aluminium Doctor grew by 35 percent, and the business now has a presence in KwaZulu Natal, the Eastern Cape and Gauteng where it will soon establish a permanent sales office in an expansion that is only possible for a formal, well run organisation,” Jeacocks concludes.
Celebrating The Best Of The Best In Black Business
The 2019 Black Business Quarterly (BBQ) Awards, held at Emperor’s Palace on Friday, 15 March 2019, celebrated the champions of transformation of the South African economy.
Established in 2002, the BBQ Awards 2019 honoured the best of the best in black business. South Africa’s top black business owners and rising stars arrived to the red carpet for a night full of glitz and glamour. Celebrity TV presenter, socialite, radio personality and Idols SA judge Somizi Mhlongo led the festivities as the evening’s programme director. He was joined on stage by A-list celebrities and prominent politicians.
Jeff Radebe, Minister of the Department of Energy, celebrated 25 years of South Africa’s democracy in his opening keynote address and emphasised the importance of transformation.
“Transformation is well recognised as a change management strategy, which aligns people, which aligns processes and technology initiatives, irrespective of the industry you come from, in order to survive and evolve in this business environment. Changing the structure of the South African economy will result in it being more inclusive, more sustainable… with opportunities for all, integrated value chains, and less barriers to entry. In South Africa, the transformation agenda is very critical in all our endeavours and all our decisions.”
Radebe congratulated the winners of the 15 transformation categories on this recognition of their inspiring dedication:
- Platinum Award: Dr Nobuhle Judy Dlamini, founding chairman of Mbekani Group, is an entrepreneur, author, and philanthropist. Her passion for creating and adding value to society and humanity provided her with the overall platinum award for the evening, as well as the Comair Outstanding Woman of the Year Award.
- Hennessy XO Businessman of the Year Award: Sthembiso Elton Nkomo, CEO of Abalandi Risk Management, was recognised as a professionally qualified, dedicated, and respected professional in the forensic investigation and security services environment.
- The Innovation Hub New and Innovative Business Award: AET Africa, a manufacturer and supplier of energy efficient and clean technology products, developed various products targeting the commercial and residential sectors.
- Emperors Palace Community Builder of the Year Award: Emmanel Bonoko, Founder of EBonoko Holdings and a social entrepreneur. He founded EBonoko at the age of 21 with the aim of serving others and fostering leadership, youth empowerment, and entrepreneurship.
- Dormehl Phalane Property Group Transformation Champion of the Year Award: ICT-Works, an organisation that provides innovative technology solutions. At its core it also enhances the lives of millions of people.
- Best Employer of the Year Award: Maredi Technologies CC, an 100% black owned ICT infrastructure solutions provider for the private and public sector.
- Trade & Investment KZN Young Business Achiever Award: Pravashen Naidoo, Founder and CEO of e-Waste Africa, established Africa’s first light bulb recycling business at the age of 30.
- Bentley South Africa Public Sector Visionary Award: Dr Ayanda Vilakazi, CEO of Lama Marketing and Advertising (Pty) Ltd. He published numerous articles on how to improve services and operations in South Africa. As a seasoned Executive he has expertise in corporate governance, financial management and budgeting, enterprise risk management and strategic development.
- BET New Entrepreneur Award: Ms Thobile Nyawo, Director of Nyawo Civil construction. The 19-year-old construction entrepreneur founded her company in 2015 with no start-up capital.
- CSI Ubuntu Award: Vukani-Ubuntu Community Development Projects, a non-profit organisation that is the largest mineral-beneficiation organisation in the jewellery sector in South Africa and a network off grassroots development projects across the country.
- NHBRC Iqhawe Mentorship Award: Musa Zulu, Creative Director of Valhalla Arts, as well as published author, international artist, celebrated motivational speaker, and prominent disability activist in South Africa.
- NYDA Outstanding Young Entrepreneur of the Year Award: Muhammad Simjee, Founder and CEO of A2D24 with a passion for building gadgets and writing software.
- Nedbank Group Individual Transformation in Leadership Award: Karen Rademeyer, Fundraiser and Communications Manager at Go for Gold, having worked in the non-profit sector for 17 years She is passionate about education: Go for Gold as a dynamic Education-to-Employment programme that recruits school students from some of South Africa’s poorest communities and transforms them into technically qualified graduates.
- LTE Holdings Best Established Black Business Award: Thata uBeke Manufacturing (Pty) Ltd, which offers turnkey solutions by designing, developing, manufacturing and assembling electronic and electro mechanical components for a variety of applications including aerospace, telecommunications, mining, commercial, and military specifications.
The BBQ Awards continue to be South Africa’s most prestigious transformation awards. For more information on the 2019 BBQ Awards, visit http://www.bbqawards.co.za/ or follow them on Facebook (@BBQAwards) and Twitter (@BBQ_Awards).
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