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National Research Survey Reveals The DNA Of An Entrepreneur – Confidence And Resilience Ranks High

South Africa’s approach to entrepreneurship needs to undergo a paradigm shift and developing the right mindset among young would-be entrepreneurs in particular is the starting point.

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And since establishing and growing small to medium-sized businesses has the potential to lift South Africa’s economy from the brink of ruins by contributing to job creation; nurturing these mindsets are essential to set entrepreneurs on the right path.

To this end, the Allan Gray Orbis Foundation – an organisation committed to investing in the education and development of individuals with entrepreneurial potential in Southern Africa, commissioned the Global Entrepreneurship Network (GEN) and Mindcette – an entrepreneurial consultancy to establish the true “DNA of a successful entrepreneur”. The mindsets study titled: Toward a Comprehensive Measure of Entrepreneurial Mindset, surveyed 3 661 South Africans using quantitative research, posing questions which required answers directly relating to the key mindsets of an entrepreneur.

“Developing the right mindset is where it starts in order to change our holistic approach to entrepreneurship. The Foundation takes this research and its results very seriously. It supports the work we do with growing young entrepreneurs in the country, and assists us with developing and providing more practical workable future programmes,” says Yogavelli Nambiar, CEO of the Allan Gray Orbis Foundation.

Kelly Shaver, president of Mindcette says his organisation carried out this research survey in line with the Foundation’s requirements. It set out to create a survey instrument that not only described entrepreneurial mindsets in South Africa, but also one that could be used subsequently in national studies in other countries in the Global Entrepreneurship Research Network. Consequently, the Foundation was able to extract the 11 most commonly occurring themes that appear to characterise entrepreneurship.

Each of these themes can be further unpacked to create 76 separate descriptors of characteristics – but, since many of these differ slightly, researchers found that it was more appropriate to focus their questions around 37 critical descriptors.

These ranged from the individual’s creativity and conscientiousness to whether they found it easy to be coached; from their resistance to conformity to their persistence and personal goals; their passion, resourcefulness, ability to accept risk, leadership ability, innovativeness, curiosity, emotional intelligence, financial goals, self-reliance and self-confidence.

Related: 5 Actionable Tips For Novice Entrepreneurs To Skyrocket Their Business

The report reveals the following key dimensions for would-be entrepreneurs:

According to the findings, there are 11 dimensions which may be used to commonly describe female entrepreneurs, and 10 that appear to characterise male entrepreneurs. Only two of these dimensions (Entrepreneurial Desire and Focus) are identical in male and female sample participants (with Allan Gray Fellows scoring higher in these dimensions), although seven additional dimensions are common to both, varying only in terms of the extent to which they characterised the sample members.

These dimensions included: confidence, diligence, innovation, leadership, motives, resilience and self-control. Among the male respondents, five of the ten dimensions distinguished those who reported being self-employed full time from those who did not. That is, focus, confidence, leadership, resilience, and self-control.  This contrasted the findings for female respondents, for whom only Desire and Focus showed differences between the self-employed and other respondents.

“Put all of these characteristics together and a clear picture of an entrepreneurial individual emerges – one who believes in him/herself so strongly that failing is not an option. However, should it happen; this person will keep going. These findings reveal a common thread – young potential entrepreneurs, men and women alike are confident and resilient, two fundamental characteristics when embarking on an entrepreneurial journey,” Nambiar says.

She says the survey’s results takes the Foundation a step closer to identifying the traits shared by entrepreneurs, thus providing a basis for describing the entrepreneurial mindset, the precise traits needed to take a business from start-up to empire, and to create a single instrument that can be used to identify and measure the presence of these traits would be an enormous help in this regard.  Furthermore, some of the differences obtained between women and men could inform modifications in entrepreneurship programme structure, in order to tailor entrepreneurial training more closely to the individual strengths of both sexes.

To monitor entrepreneurial mindsets and behaviour, Nambiar says the Foundation has been advised to repeat the survey in a year or two, to determine whether there’ve been any behavioural changes among SA’s entrepreneurs.

“Entrepreneurship is a dynamic and exciting field, but the risks associated with it are very real. As budding entrepreneurs pursue success, they need every tool available to take them a step closer to achieving their dreams. That’s exactly what makes this survey a vital undertaking,” she says.

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Read next: They Say There’s No Such Thing As A New Idea, But If You Have One – Protect It!

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The Sky Is The Limit For South Africa’s Top Women Achievers

High-powered women achievers from across the private and public sectors, academia and diplomatic spheres gathered for a charged two-day conference in Johannesburg this week to share experiences about empowerment, achievement and the role that women are destined to play in a competitive global environment.

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Several hundred women attended the 15th Annual Standard Bank Top Women Conference which, with the Top Women Awards, has become one of the premier events for women on the national calendar. The objective of the gathering at the Maslow Hotel on the 17th and 18th of October, was to showcase the achievements of South African women and reignite their passion as they have major roles to play in all arenas of endeavour, says Ethel Nyembe, head of Card Issuing at Standard Bank.

“The delegates to the Top Women Conference were inspired by speakers such as Yvonne Chaka Chaka, singer, songwriter and an entrepreneur in her own right; Phuti Mahanyele, executive chair of Sigma Capital, a black-owned investment group, and political and academic stalwart Geraldine Fraser-Moleketi, now Chancellor of Nelson Mandela University and other women who are playing leading roles in many of the nation’s listed blue-chip corporations.”

“The overall message is that women are playing a central role in growing all facets of our economy and are helping to build a future from which other women can benefit and, in turn, inspire others. Women, regardless of whether they are entertainment icons, professionals engaged in helping shape the minds of future generations, businesswomen or scientists are part of building a new global reality.”

Related: 13 Female Entrepreneurs Rising To The Top In SA

To inspire delegates about the breadth and depth of the future for women, the conference examined all facets of economic life from the impact that IT and scientific research is having on building businesses, through to the development of entrepreneurs and leadership skills. Insights were offered through the contributions of speakers and roundtable panel discussions in which leading women offered observations and advice gathered from their vast experience.

“Standard Bank is proud of the role it has played in enabling women achievers to reach their full potential within its ranks. The bank also recognises that women across society have a broad role to play in the future of South Africa. It is through support for events like the Top Women Awards and the Top Women Conference that this approach is made visible and tangible.”

“We expect this year’s conference deliberations to deliver insights and inspiration that will not only spur established women to new heights of achievement, but also stimulate young women starting new careers,” says Ms Nyembe.

More information on the Top Women Conference can be found at https://topwomen.co.za/ and it can be followed on the #SBTWConference conversation on Facebook and Twitter  

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The Ins And Outs Of A Good Exit Strategy

The thought of parting with a business you’ve grown from the ground up may be unsettling, but Gugu Mjadu, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, says that it is better for both your business and yourself to plan for this as early as possible.

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“The challenge that business owners often face in this respect is comparable to the difficulty that many new parents have with imagining their children grown up and leaving for university. Imagine, however, if parents did not plan ahead for the cost of their education – that would be detrimental to the future of their children. The same could be the case for your business.”

Mjadu says that a good exit strategy is about sustainability and being able to measure your business performance against the goals you have set for it. “It’s really about being able to say, ‘this is when the work is done and I can exit the business or take on a different role – this is what success looks like in terms of monetary return on investment and other business growth indicators’.

“The lack of an exit strategy could be telling of a fundamental lack of measurable business goals and this needs to be addressed,” she says.

From immediate liquidation to liquidation over time; family succession; selling to staff or external investors; the open market or another business; or the gruelling but profitable exercise of taking your company public – there are many different ways in which an entrepreneur can exit their business, but Mjadu says that whatever the process, a strong and solid strategy is essential.

She shares five key points of a good exit strategy:

1. It tells you when you are done

Mjadu says that a good exit strategy should reflect a core understanding of all the intricacies of your business and should be able to tell you when the lifecycle of your business (or of your involvement in the business) should come to an end. This is usually done by including a set of tangible measurables or objectives so that it is easy to ascertain when these have been achieved.

Related: When Do You Know It’s Time To Sell Your Business

2. It sets out the right environment within which to exit

A good exit strategy considers the economic, social and political environment at the time of your exit. Mjadu says that this is important in order to plan for a secure financial future.

“Failure to think about this could result in short-changing yourself by exiting during a tough economic climate when the risk to buyers reduces the value of your business.”

She references the case of Victoria’s Secret when founder, Roy Raymond, sold the failing business for $1m unknowing that it would later grow into the multi-billion dollar empire it is now. “While Raymond’s exit was ultimately necessary for Victoria’s Secret’s growth, he sold it in 1982 during the global recession of the early eighties – one of the world’s biggest financial crises and this influenced the selling price at his exit”.

3. It compensates those who have contributed to the life of your business

It is important to consider the impact your exit could have on investors and staff, says Mjadu. “Closing shop for example, means that your staff no longer have employment at your business. Selling could mean the same.” She adds that it is important to consider ways in which your exit could also benefit these stakeholders – for example, selling to a bigger business could mean more career opportunities for your staff, as well as continued job security.

4. It compensates you

Mjadu says that entrepreneurs often struggle to recognise their own true worth, especially when this involves attaching a monetary value to what has been achieved. “The time of exiting a business is no place to short-change yourself. You need to get out the full worth of what you put in,” she says, explaining that this means ensuring that you are financially secure before and while you go into your next venture.

“Your needs for retirement and medical insurance, as well as the maintenance of your living standard, should be met at your exit.”

Related: Want to Exit the Company? Here’s Your Shareholder Exit Strategy

5. It sustains your entrepreneurial drive

Mjadu says that while you may be nearing the end of one journey, your exit should enable and encourage you to continue to be an entrepreneur – and to look forward to the next journey. “Your entrepreneurial skills and capacity do not end when you exit your business and whatever your strategy, it should egg you on to more entrepreneurial activity including becoming a mentor to aspiring entrepreneurs.”

Mjadu says that exiting your business should allow you a good retrospective look at what you have done over the years – and so planning the strategy early on in your business lifecycle will set you up in regards to what you hope to achieve. “Upon exit, you should be able to say that you have done what you set out to do, financially and socially, and you have some energy left to do more elsewhere.”

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Search Is On For SA’S Online Retailer Of The Year

World Wide Worx in partnership with Platinum Seed, Visa, Heavy Chef and the Ecommerce Forum of Africa, launch new awards to recognise online stores that promote shopper trust.

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World Wide Worx today announced that it was launching a new awards programme — called the Online Retailer of the Year — to honour online stores in South Africa that grow trust amongst digital shoppers. The awards are part of a broader project to boost online shopping by World Wide Worx in partnership with Visa, Platinum Seed, the Ecommerce Forum of Africa and Heavy Chef.

“Online retail in South Africa has consistently grown above 20% since the turn of the century but only passed 1% of overall retail in 2016. Research shows that trust is a big factor in ecommerce growth, which is why we want to recognise online retailers who help to grow the entire sector by ensuring the kind of ecommerce standards that engender trust with online shoppers,” Goldstuck says.

“But once online retail passes two per cent it crosses an essential psychological barrier and this often leads to a tipping point in emerging economies. That’s when we see online retail snowballing. It gathers real momentum and everyone in the sector benefits,” Goldstuck explains.

To be eligible for entry to the Online Retailer of the Year, owners of digital stores are urged to participate in an essential survey of local online shopping being run by Goldstuck’s World Wide Worx, together with Visa and digital growth agency Platinum Seed.

To participate in the research, local online retailers can go to www.surveymonkey.com/r/OnlineRetailSA

All online retailers who participate will be entered into the award. However, participation in the survey is not a precondition for entry to the awards. However, only online retailers who operate from within South Africa’s borders are eligible for this local award.

The awards will be made at a Heavy Chef event in Cape Town on Thursday, October 01 2018. At the same event, World Wide Worx’s Arthur Goldstuck will lay bare the state of local retail, with Brad Elliott, CEO of Platinum Seed, and Visa.

Related: Up To R1 Million In Funding For Tech Solutions To Early Childhood Challenges

Goldstuck, who is judging the awards, will present the following awards:

  • Online Retailer of The Year
  • 1st runner-up – Online Retailer of the Year
  • 2nd runner-up – Online Retailer of the Year
  • Best New SA Online Retailer of the Year.

The winners of the Online Retailer of the Year awards will be given a digital badge that the online store can display online. The winners will have bragging rights for a year — until the next award is made in 2019.

Judging criteria for the awards include trust, innovation, customer service, digital excellence, customer engagement, product excellence, and the online reputation of the digital store. Visa, Heavy Chef, and Platinum Seed will oversee the judging of the awards. The Ecommerce Forum of Africa will audit the results.

Retailers or entrepreneurs who want to attend the awards and presentation of the research results by Goldstuck can purchase tickets from Heavy Chef.

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