Becoming an entrepreneur is not just an option for the young anymore. A growing number of people over 50 are starting up businesses after realising that they have the skills and experience they need to be successful.
Dubbed ‘olderpreneurs’, these people are able to reinvent and refine business opportunities as they know the marketplace and have seen many business cycles through thick and thin, and this knowledge can be extremely beneficially for a new business venture. Olderpreneurs are likely to have the advantage of having managed teams, having strong business networks, and being able to execute business plans, all of which aid in running a successful business. Proof of this is the rising number of companies run by bosses aged 65 and over: a jump of more than 140 percent in the past decade, and the biggest rise of any age group.
For South African olderpreneurs, starting up an offshore business is often more beneficial than registering and operating a local entity. Jacques Scherman, Managing Director for Africa at Arton Capital, a global company that specialises in working with people to attain second citizenships, says that many destination countries offer a stable economy, streamlined tax structures and extensive visa-free travel, and will assist people who qualify to attain citizenship and start businesses.
“Investing in a second passport allows internationally-diverse entrepreneurs to benefit from different laws and tax situations in multiple jurisdictions and territories. Residency and subsequent citizenship of European countries like Portugal, Bulgaria and Malta, for example, can open up business opportunities that may otherwise not be available to business owners in their home countries. Dual citizenships can also hold many investment and tax advantages, allowing business owners to manage their wealth more efficiently and effectively,” says Scherman.
Portugal has a flat tax structure of 20% with no wealth tax. Citizenship by investment in Portugal can happen in a number of ways, including capital investment in research activities, in the arts, in the reconstruction and refurbishment of national heritage projects, and in investment funds or venture capital.
Scherman notes that Arton facilitates investment in Portugal via Casa da Companhia, an 18th Century estate that is being developed into luxury residences. Some of the benefits of this citizenship by investment mechanism include a guaranteed four percent annual rental return from year one and a 100 percent funds return guarantee after five years. “Our qualified offer creates an easy and flexible exit strategy,’ says Scherman, “But it’s also a way to move from residency to citizenship in a one-year process. And as a Portuguese citizen, the whole of Europe is accessible for business and trade.”
As a Bulgarian resident, an olderpreneur – or indeed anyone – would benefit from the lowest tax rates in Europe and a free-trade environment, while also being able to fast-track citizenship from the standard five years to around two. Again, citizenship of a member country of the European Union avails one of unrestricted rights to live, work and study anywhere on the continent.
Malta is an equally attractive destination for South Africans wanting to streamline offshore business operations, and has similar residency-to-citizenship requirements and opportunities, while Montenegro looks set to be an ideal investment location for people wanting to explore second citizenship opportunities in a few years’ time.
Scherman says that many of Arton’s South African clients who are looking for offshore business opportunities are concerned about the availability of skilled labour in destination countries, particularly in Europe as language barriers can exist – but this concern is unfounded.
“Most European destinations are committed to attracting and building wealth, and they often work with entrepreneurial residents to bring the right labour to where it’s needed so that new enterprises can contribute to their economies.”
The cost of acquiring a second citizenship varies, depending on the destination country. In the EU, passports come ‘relatively cheaply’ in exchange for an investment into government bonds or property. But, there are also good options in the Caribbean, as well as in the UK (although, post-Brexit, this is less attractive) Australia and New Zealand, and in countries like Singapore and Hong Kong. The requirements also differ per country.
Scherman notes that his clients’ reasons for seeking second citizenships are manifold: “Some want an environment that’s conducive to doing business globally whether on a large or smaller scale. Some want tax-efficient structures and stable currencies to preserve their wealth, maximise succession planning and hedge the financial risks inherent to holding assets in Rands. Some want to secure a more predictable future for their children and grandchildren, and some want a passport that enables them to travel the world easily.”
The key to achieving any of the above goals, says Scherman, is to work with a specialised company that can advise on every aspect of transitioning into another country and gaining global access to doing business.
Great Bunch Of Entrepreneurs Make Top 10 In The Workspace/MiWay Competition
The top 10 in The Workspace/MiWay entrepreneur competition have been selected.
After an intense four-month process, the top 10 contenders in The Workspace/MiWay Entrepreneur competition have been notified that they’re through to the next round. These entrepreneurs will pitch their businesses to the judges, who will then whittle down the number of contenders to five, from which the winner will be chosen.
“There has been great excitement over the past four months. As every single new entry came in, we would clap our hands and cheer,” said Mari Schourie, CEO of The Workspace. It was a tough job judging all the entries to reach the top 20 submissions, she said, before having to find the top 10.
“We’ve had really strong entries submitted by people with good business knowledge,” said Schourie. “You can see the willingness to work hard and the great amount of effort they have put into their initiatives.”
Schourie said judges saw “wonderful ideas and fabulous business minds and quality people with big dreams shine through the entries”.
The top 10 are:
- Loyal 1
- Dwyka Mining Services
- Minatlou Trading 251
- Sindis Best for all
- Convergence Three
- Zinde Zinde
- Matla Risk Management
- Artsort Trading
- Iconic Talent Agency
- Nthedikgwadi Transport Services
Schourie said she wished she could tell President Cyril Ramaphosa, who supports the growth of small business as an economic driver, “the ideas and the passion that these business owners have is inspiring and should be focused on more”.
The prize on offer – worth over R350 000 – will help set-up the winning entrepreneur for a period of 12 months, giving them a boost to help build their business.
Morné Stoltz, Head of Business Insurance at MiWay, said the theme that ran throughout the entries was that entrepreneurs wanted to make a difference and contribute to positive change in South Africa. “Many of the submissions focused on technical and developmental fields,” he said.
“Entrepreneurs recognise gaps in the market and see the potential for growth. Getting into the top 10 was not at all easy.”
Stoltz said South Africa had a “great bunch of entrepreneurs” and that standing together to give them a platform to launch was an exciting opportunity. “To grow our economy we need to help with skills development and give whatever assistance we can,” he said.
Part of the finalists’ road to the top includes a skills development programme for the top 10 entrants ahead of their important date to pitch their business plans to the judges.
As Schourie pointed out, it is vital to encourage South African citizens to act on their dreams and passions because “it can be a great success; they just need make that leap”.
Dates to watch:
- 21 June: Top 10 skills development programme
- 3 July: Top 10 pitches
- 6 July: Top 5 announcement
- 20 July: Final five workshops
- 10 August: Final five pitches
- 13 September: Winner announced
Top 22 Start-ups Chosen For Final Selection Days – Startupbootcamp Africa
After receiving 1,004 applications from all over the world, the SBC team in conjunction with the programme’s corporate sponsors have narrowed the applicants down to 22 top-tier tech start-ups that will be invited to the Final Selection Days on July 11th and 12th at PwC’s headquarters in Cape Town.
SBC Africa received 1,004 total applications from 77 countries on 5 continents. The start-ups that applied were exceptionally impressive and have gained more traction in the market than the applicants for the 2017 cohort. The talent in Africa is phenomenal and the corporate sponsors and SBC team dedicated 2 weeks to narrow it down to the Top 22 to be invited to Final Selection Days.
“It’s been an intense process due to the exceptionally high calibre of start-ups applying to the programme from across the continent,” states Philip Kiracofe, co-founder and CEO of Startupbootcamp Africa. “From 1,004 applications we have managed to narrow down to 22 of the most creative teams tackling daunting African problems. One of the key differentiators for start-ups that participate in the SBC Accelerator is the opportunity to secure commercial contracts with our sponsors. In order to make it onto our Top 22, each start-up has been chosen by at least 2 sponsors for potential proof of concept projects. The 2018 cohort is already shaping up to be a milestone moment for Africa.”
Zachariah George, co-founder and Chief Investment Officer of Startupbootcamp Africa added, “The investment community across Africa is taking note of the significant traction and access to market that being an alumni of a global accelerator programme like ours provides. We are excited to further galvanize venture capital funding into tech startups through significant de-risking of business models and customer validation with our corporate partners globally.”
From the 22 teams that have been invited to the SBC Africa Final Selection Days, 10 will be selected to join the 2018 cohort. Over the span of the two Final Selection Days, the startups in attendance will have the opportunity to present their pitches to high-profile corporate sponsors, investors, thought leaders and industry experts and will have the chance to sit down with mentors and sponsors alike. At the end of Day Two, the Top 10 will be announced and will be welcomed to the Cape Town-based Accelerator that kicks off in August. During the 3-month period, they will have the opportunity to scale at an incredible pace and seal pilot and proof of concept deals with the corporate sponsors to the programme.
The SBC Africa Accelerator is anchored and endorsed by heavyweight corporate sponsors RCS, BNP Paribas Personal Finance, Nedbank, Old Mutual and PwC.
“We’ve seen an increase in the quality of start-ups applying to the programme. The awareness of the value of the programme has increased and the success of the first year of the bootcamp speaks for itself. More mature start-ups are also seeing the benefits of participating in Startupbootcamp Africa,” comments Stanley Gabriel, Head of Innovation at Old Mutual.
The Top 22 start-ups invited to the Final Selection Days come from 7 different countries. The numbers are as follows: 8 from Nigeria, 5 from South Africa, 3 from Uganda, 2 from the Ivory Coast, 2 from Kenya, 1 from Ghana and 1 from Ireland.
The names of the start-ups invited to Final Selection Days by country:
- Nigeria: Bankly Technologies, Biyabot, CredPal, FriendsVow, Kudimoney Bank, Medikal HMS, NebulaPay, and ZEEZZ Planet Solutions.
- South Africa: Brandbookalytics Big Data, ifileme, LÜLA, Prospa, and Akiba Digital
- Uganda: CoinPesa Ltd, RoundBob Uganda, and Swipe 2 Pay
- Ivory Coast: Digitech Group, and DISTRICASH
- Kenya: Kakbima, and MPost
- Ghana: Inclusive Financial Technologies
- Ireland: Pago Payments
It has been an incredible 3-month scouting journey for SBC Africa and now that the Top 22 have been announced, the Final Selection Days is the only hurdle left before the Accelerator officially kicks off on 13 August 2018.
There are high expectations for the Top 10 of 2018 and if the quality of the start-ups at this stage is any indication, 2018 is set to be a great success for the African tech and innovation ecosystem.
She Works Hard For Her Money – So Pay Her On Time
Sage research finds that female entrepreneurs suffer more negative effects from late payments than men. Charles Pittaway, Managing Director of Sage Pay, comments on the importance of equal pay for equal work.
Women fight inequality and discrimination every day. They fight for equal pay for equal work. They challenge gender stereotypes in their careers and personal lives. They question unfair social and political norms. They unify under passionate causes, evidenced recently by the #MeToo and #TimesUp campaigns.
With female business builders making up nearly 40% of the global workforce – and heading up 72% of micro-enterprises and 40% of small enterprises in South Africa – any kind of discrimination is unacceptable from a cultural and economic point of view, especially when it involves failure to pay what is owed.
The impact of late payments on small businesses has been widely discussed as an issue that must be eradicated for all entrepreneurs, regardless of gender. But inequality still exists and more needs to be done to eradicate it.
Recent research by Sage highlights that this discrimination doesn’t just impact women in large corporates. Indeed, it identified a worrying trend: female entrepreneurs are more likely to suffer from late payments than their male counterparts.
South Africa was among the six regions (out of 11) surveyed by Sage that reported higher instances of women business builders being paid late. Businesses run by female entrepreneurs in South Africa report that 18% of invoices are paid late and 10% of invoices are written off as bad debt.
Small businesses cannot absorb these costs nor the lost hours spent on admin – amounting to R564 000 in South Africa. The result can be disastrous: in the next 12 months, 1 in 4 female entrepreneurs will prioritise chasing late payments to be more cost efficient, and ironically will become less productive. If these businesses are not paid on time, they will also struggle to pay bonuses and suppliers, and will be forced to delay investments in their businesses.
The fact that late or non-payments is a more common occurrence experienced by female entrepreneurs is part of a wider problem. Women report more instances of sexist comments, disregard for their business ambitions and lack of female mentors as significant underlying reasons why there is now a heightened cultural stigma around chasing late payments amongst female entrepreneurs – more so than men.
In South Africa, the stigma extends past culture, with 40% of Small & Medium Businesses failing to follow up on late payments to protect client relationships. Time and resources are also challenges, with 24% of small businesses saying they don’t have a dedicated resource to chase payments and 13% saying they don’t have time.
There is no place for bias in business – all entrepreneurs should be free to pursue their ambitions without suffering the consequences of these cultural barriers that are encountered far too often – regardless of gender.
Now is the time to disrupt and challenge these harmful stereotypes and create a force for good, making sure that small businesses – the engine room of all economies – are paid what they are duly owed for the services they deliver to our economy.
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