Connect with us

Entrepreneur Today

Why Raising Money Savvy Kids Matters And The Role That Corporates Play

South Africa is drowning in debt. In fact, according to the Economist (2018), more people have loans than jobs.

Entrepreneur

Published

on

saving-money-financial-management

We are some of the biggest borrowers in the world and our habits are increasing at an accelerating rate. So, why do we continue to pass this on from generation to generation; what if we could curb the ‘instant gratification’, ‘spend-now, pay-later’ mentality in our children from an early age?

Parents are the biggest influencers of children. They rely on us for life lessons, support, nurturing and knowledge, yet there is very little engagement in the household around savings, money and financial literacy in general. We live in a time of reckless borrowing and lending, and it’s up to us to teach our children that it’s not just as easy as ‘taking out more credit’.

Kathryn Main, Founder of Money Savvy Kids (MSK) says that the snowball effect continues to hurtle through South Africa and Africa as a whole.

“As if raising children in a tough climate isn’t hard enough, we now need to try and balance it all whilst navigating a professional life, a personal life, finances and life in general,”

Related: 7 Successful EO Members Who Were Already Hustling As Children

As a mother of three, Kathryn’s parental instincts recognised the difference that financial literacy could make in a child’s life.  With a firm belief in the difference that raising money savvy kids could make, what started off as a passion project has evolved into a business and today MSK partners with various big corporates to develop custom financial literacy content – all developed by Kathryn’s full-service advertising agency, Main Multimedia.

“Some studies show that 74% of the youth are not involved or included in the daily financial management of their household. However, results showed that children who are involved display a higher propensity to save, more cautious spending behaviour and a better understanding and knowledge of financial products (Douglas Lamdin’s Consumer Knowledge and Financial Decisions: Lifespan Perspectives, 2011)” Kathryn continues.

With all this said, Kathryn explains that partnering with corporates not only in the financial sector but in broader sectors has become important. “It’s no secret that corporates have the power. When the system fails us, we look to those with resources and authority. Poor financial literacy follows us forever and we see society grappling with finances daily. It also makes us question what the future of Africa looks like,”

“We try our best to enable our future leaders by providing them with the best in-school education, but we fail them at home. Even the best schools lack in areas of financial literacy and it’s up to those with a bigger voice to make a difference” she continues.

A recent study on financial literacy in South Africa also highlighted the effect that poor education has on entrepreneurs, who now need to make responsible decisions to grow a business. Kathryn adds to this saying: “In a country that promotes and thrives on entrepreneurship, this is very concerning”.

By collaborating with corporates such as EXXARO, Woman’s Development Bank (WDB), Ischool Africa and many more, MSK creates custom financial literacy aimed at empowering and the educating the youth. “We tailor content to children as young as 4-years-old because it’s never too early to learn these lessons. We see so many parents focusing their time and effort on helping their children to get good grades, yet they forget about the issues that will follow them around forever; regardless of what grades they get,”

Related: How Do I Start A Child Services Business?

The youth are drowning in debt and interest from student loans. “They don’t understand the basics of credit scoring and so their credit score gets messed up. They can’t buy a car, a house or even get a cell phone to their name. So, they struggle along for 10 or 20 years, trying to get rid of the debt and improve their credit score often to no avail,” Kathryn continues.

“MSK promotes knowledge, attitudes, and behaviours amongst the youth to help them become financially independent. And as our mission statement says, we are set to empower the South African youth through financial training and awareness, creating the start of a financially educated youth era”.

Kathryn concludes saying: “We need to put the power back in their hands and turn these beautiful little people into responsible adults. It’s up to us as parents with the support of corporates to enable and empower the youth of today.”

Entrepreneur Magazine is South Africa's top read business publication with the highest readership per month according to AMPS. The title has won seven major publishing excellence awards since it's launch in 2006. Entrepreneur Magazine is the "how-to" handbook for growing companies. Find us on Google+ here.

Advertisement
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Entrepreneur Today

Tips To Help SMEs Prepare For The New Year

Jesse Weinberg, Head of the SME Customer Segment at FNB Business unpacks key steps that entrepreneurs should consider to ensure a successful 2019.

Entrepreneur

Published

on

small-business

January is always a good time for SMEs to reflect on achievements and challenges for the past 12 months, while preparing for the year ahead.

  • Review 2018 goals – business owners should review their short-term goals regularly in order measure progress and learn from their past mistakes.

Furthermore, short-term goals also help a business to determine if it is still on track to meet its long-term objectives.

  • Get your finances in order – given the tough economic conditions, it is essential for businesses to ensure that their finances are always in order. Having a positive cashflow at the beginning of the year will help SMEs weather any unforeseen events that may potentially disrupt an unprepared business.

Weinberg says, cash flow management challenges are also a good indicator of deeper or hidden issues within the business that need to be addressed immediately.

  • Stay ahead of competition – actively monitor the activities of your closest competitors and how the market responds to their goods or services. This will help you identify any shortcomings in your business, allowing you adequate time to address them.

Related: Government Funding And Grants For Small Businesses

For example, if you are still offering products and services in store while your competitors have successfully migrated to digital channels, it may be ideal to consider a multi-channel approach to remain relevant.

This also provides a perfect opportunity to disrupt or innovate by identifying niches within your market or industry that no competitor has tapped into yet.

  • Meet customer needs – the most practical way to measure customer satisfaction is to communicate directly with the recipients of your goods or services.

Online reviews and social media are good platforms for getting feedback.

Weinberg says to remain relevant, sustain the current base and win new customers – SMEs should be agile and constantly reinvent their business models in order to meet evolving customer needs.

  • Celebrate success – business owners often mistakenly focus on challenges and negatives when reviewing their performance and goals.

“It is equally important to acknowledge and celebrate the business successes for both yourself and staff. Not only does it boost morale, but reassures you that you are doing something right and it also motivates everyone. Moreover, the successes can be replicated and improved to steer the business for further growth,” says Weinberg.

“Lastly, once you’ve reviewed performance for the past year, it is essential to set new goals for the year ahead. This should involve reviewing or updating your original Business Plan to ensure that it is still relevant,” he concludes.

Continue Reading

Entrepreneur Today

Africa’s Top 10 Tech Start-Ups Selected For #Africa4Future Accelerator Programme

Airbus and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) have announced the top 10 African tech start-ups that will take part in the latest Airbus Bizlab #Africa4Future accelerator programme. They were selected after an open public pitch event in front of experts, potential investors, the media and other stakeholders in Kenya’s capital city.

Entrepreneur

Published

on

airbus

#Africa4Future is a joint business accelerator initiative of Airbus and GIZ’s Make-IT in Africa initiative together with the Meltwater Entrepreneurial School of Technology (MEST), a non-profit seed fund and pan-African organisation that brings together startups, entrepreneurs and the tech community, and Innocircle, the South African-based innovation consultancy.

The top 10 start-ups were selected from 314 entries representing 19 African countries that were received when the challenge was opened last October. These were assessed by a panel of Airbus and other independent experts.

The programme aims to encourage and support entrepreneurship in Africa. The continent’s young and increasingly techno-savvy population is likely to be the driving force behind Africa’s socio-economic development. The competition identifies Africa’s own pool of talented entrepreneurs using innovative aerospace based solutions to tackle the continent’s most pressing challenges such as transportation, agriculture and healthcare.

As a global aerospace accelerator, Airbus BizLab is ideally suited to help African startups transform innovative ideas into viable and valuable businesses. In doing so, it increases the aerospace industry’s engagement with hardware and software innovators and entrepreneurs in Africa while helping to nurture the establishment of competitive entrepreneurial ecosystems on the continent.

The Nairobi event kicks off an intensive 6-month business incubation and accelerator programme involving technical, commercial and mentorship activities in France, Germany and South Africa. This includes workshops and coaching sessions with Airbus experts, GIZ’s Make-IT in Africa, MEST and Innocircle coaches.

The programme will culminate with Demo Day events at the biennial Paris International Airshow and a special event in Germany from 19-26 June, when finalists will launch their products, define their collaboration with Airbus and announce their investment commitments in front of representatives from across the aerospace industry.

Related: How To Start A Business With No Money

Finalists:

1. Astral Aerial (Kenya) – using drones for humanitarian cargo transport, surveillance and emergency response.

2. Cote d’Ivoire drone (Ivory Coast) – locally-manufactured drones for various applications.

3. Elemental Numerics (South Africa) – applies computational fluid dynamics techniques to the design of machines and components, ranging from aircraft to heart valves.

4. Lentera Limited (Kenya) – applying remote sensors to monitor and transmit environmental data to enable more efficient and smarter farming.

5. Maisha ICT Tech PLC (Ethiopia) – deploying locally built drones for delivering medicines, blood and healthcare items to remote and rural areas.

6. MamaBird (Malawi) – provides a platform to help Governments, NGOs and other organisations deliver vital life-saving supplies to remote communities.

7. Map Action (Mali) – a solution offering real-time online urban mapping to identify problems affecting water supplies, hygiene and sanitation.

8. MobiTech Water Solutions (Kenya) – an online real-time water monitoring solution that allows businesses, homes and water-service providers to manage their available water using an app-based dashboard and instant messaging.

9. Track Your Build (Nigeria) – a novel infrastructure management tool for construction and operations.

10.WiPo Wireless Power (South Africa) – offers reliable and convenient wireless power chargers for businesses, conference centres, airports, restaurants and other venues for the charging of mobile devices, laptops and drones.

Related: 21 Steps To Start-Up Success

Continue Reading

Entrepreneur Today

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.”

Entrepreneur

Published

on

manufacturing-sector-south-africa

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.”

Tourism

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.

Related: Government Funding And Grants For Small Businesses

Manufacturing

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.

Agriculture

“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.” 

Related: 9 Ways To Elevate Your Small Business To The Next 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.

Continue Reading
Advertisement

SPOTLIGHT

Advertisement

Recent Posts

Follow Us

Entrepreneur-Newsletters
*
We respect your privacy. 
* indicates required.
Advertisement

Trending