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Entrepreneur Today

R6.5 Million Fund For Cape Innovators

Innovation in the Western Cape is set to get another healthy boost, with the announcement today (Friday, 14 October 2016) that designers, inventors, entrepreneurs and product developers can apply for grants of up to half a million Rands each from the second round of the Design Innovation Seed Fund (DISF).






The DISF is a project of the Cape Craft and Design Institute (CCDI) with investment and management funds respectively provided by the Technology Innovation Agency (TIA) and the Western Cape Department of Economic Development and Tourism.

The Fund is inviting individuals and SMME’s in this round to apply with pre-revenue innovative technologies and tech-enabled ideas and products with the potential to positively impact the agri-processing, health and bio-tech, and the manufacturing sectors.

Launched in 2014 as a World Design Capital project, the first round of seed funding was allocated to develop 12 innovative Western Cape ideas. These 12 were selected from a pool of 151 applications.

The grants were used for a large range of activities, including developing prototypes, producing market samples, undertaking market research and investigating intellectual property rights. All of the beneficiaries have made significant advances in developing their innovations and have moved to the next stage where they are either prototyping, doing market testing with clients; or going to market.

The 12 participants are already proving the value of the investment with the registration of IP for three new products; the creation of 18 new jobs and a collective turnover of over R2.4m in the past six months from the early stages of marketing their new products/services. Three businesses are showing a market potential of over R7m collectively for the next twelve months.

Related: Uzenzele Holdings Unpacks The How And Where Of Business Funding

Erica Elk, Executive Director of the CCDI, said that the DISF has shown that the right funding at the right time put to the right use can have a tremendous impact on small businesses and help them turn ideas into reality.

”Ideas are a dime a dozen; everyone has them. But it’s a whole other story to be able to bring your ideas to life. It takes time and resources – not just money. It is a process that is full of twists, turns and challenges, and you need to be passionate, resilient and tenacious. The Seed Fund has given these innovators and entrepreneurs a little bit of breathing space and an opportunity to flex their muscles – which is all they really needed to take their next steps.

“More importantly though, we didn’t just give them the money. We walked beside them every step of the way over the two years providing support, advice and access to additional expertise when they needed it.”

She added that the DISF and other fund projects have enabled the CCDI to develop exceptional systems, capacity and networks to effectively manage funds, both in the design and other sectors. Another recent CCDI success has been the investment of R14.5m, over three years, made into 45 companies as part of its first Jobs Fund project.

These businesses collectively created 464 new jobs in the process doubling in size and turnover. These fund implementation successes have led CCDI to launch its own SMME investment vehicle, CCDI Capital, which will be managing the second round of seed funding and a second Jobs Fund project it hopes to launch later this year.

The DISF is open to: Western Cape based early-stage small and medium enterprises/entrepreneurs/researchers; Students at Western Cape tertiary institutions as long as the institution does not already have an Intellectual Property claim to the product/service; Pre-revenue businesses in incubation or entering incubation; or Existing SMEs with a new products/innovation that is still pre-revenue.


Related: Now You Have Funding, Use It Wisely To Grow And Scale Your Business

Applicants to the DISF need to show enough evidence of innovation in design, technology and/or its application; market appetite or sufficient evidence of market potential or competitive advantage; and a management team able to drive the process.

The business, product or concept must have a knowledge focus and should include technological innovation or design. The business should not be able to raise funds easily from traditional banks or funding agencies because of the risks involved.

Strong preference will be given to businesses with at least 25% black ownership and/or good job creation potential. Entrepreneurs must match 20% of the funding in cash or in-kind contributions.

Saberi Marais, Head of Seed Funding at TIA, says that DISF has made a significant impact on the local early stage funding landscape.

“Seed funding such as the DISF assists recipients to inform their opportunities by building prototypes and validating their assumptions around the technical and market-related challenges. Entrepreneurs at this stage have traditionally faced challenges when it comes to access to funding. The other challenge that DISF helps recipients overcome is that of non-financial support and mentorship – this has also proven to be of great help to recipients,” said Marais.

Marais added that partnerships such as this one with the CCDI and DEDAT are extremely valuable. “Now that the model and partnership has been demonstrated to work, we have to focus on ramping the potential impact the programme could have in relevant economic development sectors locally. We need co-funders and follow-on-funders to come onboard and support the entrepreneurs who have commercially feasible opportunities.”

Related: Gearing Up For Funding Applications: What Does It Take For A Small Business To Be Funding-Ready?

Alan Winde, Western Cape Provincial Minister of Economic Opportunities, said that innovation was a key economic enabler.

“As the fourth industrial revolution starts to shake up the world, we need to embrace innovation in our approach. That is why we support initiatives like this fund. Some of the businesses and ideas developed through the first DISF have the potential to go global.

“We have an ecosystem taking shape here at the southern tip of Africa because of programmes like this, because of the environment we are in, and because of the mindset of young people coming into the system. I encourage every person with an innovative idea in the focus areas to apply. This is an excellent platform to take your idea or business to a new level.”

Applications close on 04 November 2016. Visit to apply.

Entrepreneur Today

Win 1 Of 50 Free Tickets To This Exclusive Event With Entrepreneur And Matt Brown Media

Calling start-up business owners or aspiring entrepreneurs 25 years old and under. Win a free ticket to this life-changing event with Entrepreneur Magazine, Matt Brown Media and South African entrepreneur Max Lichaba.





Are you a young, start-up or aspiring entrepreneur looking for inspiration from someone who started with nothing and built a R120 million business?

You could be one of 50 lucky, young start-ups and aspiring entrepreneurs to join Lichaba Creations, Kwa Lichaba, Lichaba Custom Rides and Lichaba Refinery owner Max Lichaba on Tuesday 20 March 2018 for an exclusive two-hour lunch and in-person interview brimming with entrepreneurial insights.

Enter to win this once in a lifetime opportunity

If you’re 25 years old and under, and looking for business advice to help you build a successful start-up, then don’t miss this opportunity to receive access to the event, which will be held at Kwa Lichaba in Soweto.

50 exclusive seats up for grabs!

Your prize will include:

1. First-hand insights from successful South African entrepreneur Max Lichaba.


2. A free Brand ID workshop with Vega on ‘How to Develop and Launch Your Brand’.

The workshop focuses on the importance of reflection and self-belief when offering your own personal brand and products to the world. You will be encouraged to explore your own values, meaning and purpose, and guided as to how to create an identity that will capture the unique individual that is “brand YOU”. The workshop will be hosted in Soweto or at Vega’s campus in Randburg, and the date is still to be determined


  1. FREE access to the premier Kwa Lichaba venue.
  2. FREE lunch included in the event.

How to enter the competition

You must be under 25 years old to enter the competition:

  1. Send an email to Entrepreneur Magazine at
  2. Give us your full name and ID number.
  3. Tell us in your email why you should win a free ticket to this premier event.

What you will learn from Max Lichaba

Max finished school with a Grade 10 education, and was expected to become a miner like most of the men in his community. Instead, he focused on becoming a business owner. It’s been a long, hard road, full of challenges, but today he heads up a R120 million business. Share in his journey as Matt Brown interviews him in person, and unpacks his journey, the hardships he’s faced, and the lessons his learnt in overcoming those obstacles, including:

  • Wanting more out of life than being a miner in his hometown, like his peers and seeking alternative opportunities to make money and uplift his community.
  • The power of persevering even in the face of closed doors – they eventually opened up because he pushed through for long enough.
  • The importance of starting, even if you start small, by initially focusing on breaking even before buying into the fancy additions to presumably make business faster and easier.
  • Banking on a new business and losing it all, with the added responsibility of paying employees’ salaries and pension packages with money he didn’t have

Max will join a list of some of South Africa’s most successful billionaires, entrepreneurs and the CEOs hosted on The Matt Brown Show, on Tuesday morning. Matt’s 20 years’ experience in business strategy, technology and marketing communications and over a dozen local and international awards make this a discussion worth participating in.

Don’t miss out – enter the competition to win your ticket

  1. Send an email to Entrepreneur Magazine at
  2. Give us your full name and ID number.
  3. Tell us why you should win a free ticket to this premier event.


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Entrepreneur Today

Franchising Sector Ready To Lend A Hand

How business can use franchising to improve jobs and support entrepreneurship throughout South Africa.





“We are at a moment in the history of our nation when the people, through their determination, have started to turn the country around.
Now is the time to lend a hand…
Now is the time for each of us to say ‘send me’…
Now is the time for all of us to work together, in honour of Nelson Mandela, to build a new, better South Africa for all.”
Cyril Ramaphosa, SONA 2018

The Presidents commitment to small business

The SONA speech by President Cyril Ramaphosa and his commitment to supporting small business and entrepreneurship has been welcomed by Tony Da Fonseca, the Franchise Association of South Africa’s Chairman, who in 2017 had already met with the chairperson of the Parliamentary Portfolio Committee for Trade & Industry to pave the way for greater co-operation between government and the franchise sector.

“We are encouraged by the President’s promise to increase co-operation with business and look at ways to encourage entrepreneurship, youth training and job creation” says Tony Da Fonseca.

“We are confident that the franchise sector can play a pivotal role through innovations like the development of social and micro franchising which hold enormous and largely untapped potential for the development of the economy and improve service delivery.”

Confirming that the growth of the economy will be sustained by small businesses, “as is the case in many countries”, President Ramaphosa confirmed that government would honour its undertaking to set aside at least 30 percent of public procurement to SMMEs, co-operatives and township and rural enterprises and would continue to invest in small business incubation. “It is our shared responsibility to grow this vital sector of the economy.”

Franchising is ready to play a larger role


As a sector that already contributes 13, 3% to the country’s GDP generating an estimated R587 billion through its 845 franchise systems, 40 528 franchisees and employing 343 319 people, franchising is perfectly poised to play an even bigger role in furthering small business development, skills transfer and job creation.

“As a successful businessman and former franchise owner himself, Cyril Ramaphosa is familiar with the far-reaching potential that franchising has in small business development, skills development and job creation, says FASA Chairman Tony Da Fonseca.

“We are hopeful that he will look to us in the franchise sector to assist in building that ‘small business support ecosystem that assists, nourishes and promotes entrepreneurs’ that he referred to in his SONA speech.”

That, together with the welcome measures by government to reduce the regulatory barriers for small business and the introduction of an innovation fund targeted at start-ups and small suppliers that could become supply chains to the franchise sector, will go a long way to opening the doors to small business expansion and the benefits to the economy that will flow from that.

Related: Multi-Unit Franchising Growing In South Africa

The Franchise Association of South Africa (FASA) has always been a proponent of small business incubation and has, over the years, embarked on various public/private initiatives to grow the franchise sector. Their efforts have included youth cadet schemes through the Jobs Fund, developing micro businesses to become franchise-ready through the Department of Small Business Development’s Micro Franchisor Development Project and through various private initiatives with funders and franchise members.

The franchise sector to stimulate entrepreneurship and jobs

According to Tony Da Fonseca, much more can be done in the public/private development space. “The opportunities to transform government services, such as health care, water delivery, education and in many other areas, through the social franchise format, are enormous. Both locally and internationally, pilot projects in social franchising that operate on commercial principles, making enough profit to sustain operations and re-investing surplus profits into the community they serve, have proved to be viable.”

According to Tony Da Fonseca, the franchise sector is well-positioned to come together in a concerted effort to stimulate entrepreneurship and create much-needed jobs.

Franchising in South Africa currently services around 17 business sectors – way behind countries such as Australia, Europe, Canada and the USA who boast between 25 and over 70 business categories.

Related: Key Franchising Trends To Consider For 2018

“The opportunities to expand into many more sectors and particularly in the social and services sectors of the economy are endless. We welcome the opportunity to work with government in creating an entrepreneurial environment that will grow investment confidence, introduce new small business concepts via the franchise system, accelerate BEE and enterprise opportunities, giving training to the youth and above all create those much needed jobs.”

Mr President, the franchising sector is ready and able to take on the opportunities for ‘renewal and revitalisation, and for progress to build the fair, just and decent society to which Nelson Mandela dedicated his life.’

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Business Model

How To Pick The Business Model That Works For You

So, you’ve picked your lane.  You’ve decided what you want to do and why you want to do it.  You’ve picked something you’re good at.  You’re convinced the world needs and values it.  You now need to decide how to make money.  That’s where business model design comes in. 

Anthony Miller




There are plenty of business model options for the same idea.  For example, let’s say your idea is to offer historic tours of Cape Town.  You could either do it yourself or hire professional guides to do it.  Or you could use mobile technology to provide DIY walking tours.  You could charge per tour or you could charge a membership fee.  There are so many options.  How do you pick the model that works for you?

The Lean Canvas is a great tool for entrepreneurs who are faced with this question. Adapted from The Business Model Canvas, it provides a simple, one page framework for brainstorming possible business models, prioritising where to start, and tracking ongoing learning.  It walks the entrepreneur through the business model process logically and ensures the key elements of a successful business are considered.

Related: Business Model Design – Picking The Business Model That Works For You

My co-founders and I have used the Canvas extensively at Simply – for designing our business model, and for communicating it to partners and investors. The only thing you know with certainty when you start a business is that it’s not going to turn out as you expect it to.  The Canvas evolves as you go – it was, and continues to be, a very useful guide in our journey.

Recognising an opportunity for disruption

We figured there was an opportunity to do something disruptive in the SA life insurance space.  It was clear to us that lots of people were either not covered or getting a rough deal.  Guided by the Canvas, we defined our first Customer Segment as adult South Africans, aged between 25 and 45 and earning between R5k and R30k monthly.

We then identified the 3 big Problems – specific to that segment – that needed solving:

  1. Most of the people in our segment have some form of funeral cover, but very few have life or disability cover.
  2. The cover they do have is often expensive relative to the benefits provided (i.e. a very small % of the premium goes towards the risk costs).
  3. There is no simple, intuitive way to buy good value life, disability and funeral cover online.

Developing a value proposition

Next came the Value Proposition.  We believed we could use technology, digital marketing and human-centred product design to deliver simple, online life, disability and funeral insurance at a great price.  We felt we could be for life insurance in South Africa what Takealot has been for retail.

We thought the world was moving far faster than incumbents realised; that millennials were ready to buy life insurance online; that we could build for the digital world and be in the right place at the right time.

And the rest flowed from there.  I don’t have the time or the space to walk you through the other elements of the Canvas here, but you can probably fill in the blanks.  Suffice to say, the process was invaluable and enabled us to build our business around a clearly considered business model.  It’s early days, but the signs are good – we’re making a positive impact, having fun and keeping our investors happy.

Creating a Lean Canvas

So, how should you go about sketching your own Lean Canvas?  The team at suggest the following approach:

  1. Sketch a canvas in one sitting. While a business plan can take weeks or months to write, your initial canvas should be sketched quickly.
  2. It’s okay to leave sections blank. Rather than trying to research or debate the “right” answers, put something down quickly or leave it blank and come back to it later.
  3. Think in the present. Business plans try too hard to predict the future which is impossible. Instead, write your canvas with a ‘getting things done’ attitude.
  4. Use a customer-centric approach.  You may need to sketch one Canvas per customer segment.  Start with the Customer Segment and go in sequence.

The Canvas has brought clarity and a common language to our business model design process.  It’s enabled us to agree upon and communicate our business model effectively – both internally and externally.  It’s also allowed us to tune and adjust our model as our story has unfolded – an inevitability for entrepreneurs.  I highly recommend the Lean Canvas as a tool for designing your business model.  Give it a try – I think you’ll like it.

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