Christo Botes (Business Partners Limited), Khomotso Malakalaka (National Winner) and David Morobe (Business Partners Limited) Innovative techpreneur, Khomotso Malakalaka, was announced as the national winner of the 2018 SME Toolkit BUSINESS/PARTNERS Business Plan Competition for Aspiring Young Entrepreneurs – a competition that saw 800 young aspiring entrepreneurs attend business planning workshops across the country to equip them with the necessary skills and tools to turn their business idea into a reality. The competition aims to encourage, assist and inspire South Africa’s youth to start their own businesses as a means to reduce the country’s high unemployment rate by promoting entrepreneurship as a viable career choice. However, according to Petro Bothma, Enterprise Development Manager at Business Partners Limited (BUSINESS/PARTNERS), who was speaking at the awards ceremony held this morning in Johannesburg, in order to do this, it is crucial that aspiring entrepreneurs b...

Ben Bierman SME Medium-Term Budget wish-list While local small and medium enterprises (SMEs) have many wishes for the upcoming Medium-Term Budget Policy Statement (MTBPS) that will improve the ease of doing business, none of these will be significant unless the ultimate outcome of the speech is improved economic prospects. This is according to Ben Bierman, managing director at Business Partners Limited (BUSINESS/PARTNERS) – a leading risk financier for SMEs. He says that an emphasis on the creation of a supportive business ecosystem – through an increased budget allocation to the SME sector – will send a strong signal recognising and supporting the role of SMEs in generating the type of inclusive growth that South Africa so desperately needs, but that it will ultimately become a moot issue if the broader policy uncertainty and impasse around a growth imperative is not addressed. Bierman explains that although the local economy has received some good news over the past couple...

Through the storm clouds of a distressed economy, the South African tourism industry stands out as a ray of sunshine. And, with travel and tourism expected to contribute 9.4% to the GDP of South Africa in 2017 – according to the PwC’s Hospitality outlook: 2017-2021 – small business owners operating in the sector need to be taking heed of the sector’s gaps and opportunities if this goal is to be realised, and exceeded in years to come. This is according to Anton Roelofse, regional general manager at Business Partners Limited , speaking in light of National Tourism Month. He points to the latest Tourism and Migration report from Statistics SA, which reveals that the number of overseas visiting South Africa was up 12,4% year-on-year in the second quarter of 2017. Roelofse believes that the continued increase in overseas tourism remains largely driven by the favourable exchange rates that keep the country’s tourism experience affordable, but adds that South Africa is also increasingl...

In his budget speech on 24 February 2016, Pravin Gordhan confirmed that applications to the value of R12-billion has been approved by The Jobs Fund. The franchise industry is part of that R12-billion and in conjunction with Business Partners, SA Franchise Warehouse is proud to announce that grant funding has been negotiated for qualified BEE franchisees who wish to enter into partnership with existing franchisees for new outlets within established franchised networks. The objective is to encourage partnerships between existing experienced franchisees within stable franchise networks and a BEE operating partner. The own contribution requirement for the funding of a new outlet will be 10% of the set-up cost of the franchise, and the 90% funding will be a blend of a commercial loan and grant funding from The Jobs Fund. Although the grant is ultimately repayable, it attracts no interest and only has to be repaid once the commercial loan is paid in full, regardless of the loan term...

Ben Bierman In the current economic landscape, South African businesses find themselves fighting to overcome one headwind after the next. This constantly changing environment is negatively impacting small and medium enterprises (SMEs) and business owners’ growth projections for 2016. As a result SMEs’ confidence levels about economic and business growth declined significantly in the last quarter. This is according to Ben Bierman, Chief Financial Officer of Business Partners Limited (BUSINESS/PARTNERS), who was commenting on the overall sentiment of business owners and the findings of the latest Business Partners Limited SME Index (BPLSI), which measures the attitudes and confidence levels of South African SME owners. The Q4 2015 BPLSI revealed a significant decline in confidence levels that the South African economy will be conducive for business growth in the next 12 months - a decrease of 6 percentage points from the third quarter to a recorded confidence level of only 51%...

Business owners who steered their enterprises through the financial crash that started in 2008 may experience a familiar dread when they look at the storm clouds gathering on the 2016 business horizon. This is according to Nazeem Martin, Managing Director of Business Partners Limited (BUSINESS/PARTNERS) who says that a number of factors point towards the possibility that 2016 may be as tough for business owners as 2008 and 2009 was, while others factors suggest it could be less turbulent. “Similar to the situation in 2008, the South African economy is at the mercy of adverse global economic forces. Growth in China is at a 25-year low, and with it the prices of commodities. Europe is still struggling to recover from the last crash and even positive developments seem to conspire against us: the recovery of the US economy is pushing up interest rates there, pulling investments away from emerging markets such as ours. “Locally, South Africa's worst drought in a century is boun...

In light of the challenging economic climate, South African entrepreneurs have been cautioned to buckle up for what is predicted to be a challenging year. In order to be prepared for what may face them in 2016, business owners are advised to dedicate the next few weeks to the planning of budgets and cash-flow, which are both crucial tools required for the survival of any business.  This is according to Gerrie van Biljon, executive director at Business Partners Limited (BUSINESS/PARTNERS) who says that without a realistic and well-managed budget, a business is much like a boat without sails – without direction and headed nowhere. He describes a cash-flow statement as a vital management tool that should be referred back to constantly, and not only on an annual basis. “The control of cash flow, adherence to payment deadlines and the management of creditors and debtors are all fundamental aspects that will determine the success of a business,” says Van Biljon. Van Biljon prov...

Gerrie van Biljon December and January tend to be challenging months for small and medium enterprises (SMEs) in South Africa and in certain cases, can even make or break a business.  This is according to Gerrie van Biljon, executive director of BUSINESS/PARTNERS, who says that depending on the industry in which these businesses operate, they may find themselves either lacking enough work to cover costs during the period, or struggling to keep up with the demands of the so-called silly season and potentially drowning from the workload. He warns that while both experiences can be challenging for entrepreneurs and their ventures, it is critical that entrepreneurs put measures in place to navigate – and even benefit – from the months of extremes. “In the case of retailers and tourist businesses, whose businesses spike over the December holidays, capitalising on the frenzy seems obvious given heightened spending habits due to end-of-year bonuses, and tourism districts being ...

The life of an entrepreneur is different from those that are employed in a 9-to-5 job in many ways – one of which is the extra challenges and stress entrepreneurs experience with managing and being solely responsible for their own business.  This is according to Gerrie van Biljon, executive director at BUSINESS/PARTNERS , who says that despite taking such a challenging path in life, entrepreneurs continue to thrive. “This is largely because entrepreneurs see the world not as it is, but as it can be, and then go about changing it.” Van Biljon believes that the answer to their success lies in their disciplined attitude which, although it varies from entrepreneur to entrepreneur, can generally be described in the following ten rules that they live by: Believe in yourself: Entrepreneurs are focused and tend to maintain a strong belief in their ability to achieve their goals. They get out of bed in the mornings believing that they have something meaningful to achieve and a l...

Christo Botes and Lebohang Selloane In the wake of Global Entrepreneurship Week, budding entrepreneur, Lebohang Selloane, has been named the winner of the 2015 Business Partners / SME Toolkit Global Entrepreneurship Week’s Business Plan Competition for Aspiring Young Entrepreneurs at an awards ceremony held in Johannesburg. Now in its 6th year, the competition seeks to equip passionate and enthusiastic youth with the knowledge to turn their business idea into a reality. Aspiring entrepreneurs – between 18 and 35 – were encouraged to submit their business idea and attend one of nine regional workshops across the country to learn the complexities of compiling a business plan and managing the many functions of running a business. Following this, each young entrepreneur was invited to submit a formal business plan to a judging panel. Selloane, based in the Free State, is a Diagnostic Radiography graduate who is currently pursuing her MBA. The 28 year-old’s winning idea is based ...

Irregular or delayed flows of payments from customers continue to have a detrimental impact on the cash flow of South African small and medium enterprises (SMEs), severely restricting opportunities for expansion and job creation.  This is according to Gerrie van Biljon, Executive Director at Business Partners Limited (BUSINESS/PARTNERS) - a risk finance company which finances and invests in SMEs. Van Biljon says that the way in which a business manages its working capital and the speed of its cash conversion cycle ultimately impact its overall profitability. “Put simply, in order to produce and sell a product or service a business incurs costs including wages and raw materials, and if it doesn’t receive payment during a certain time period for the product it has manufactured, or the service it has provided, the business cannot purchase new material, pay staff or overheads. The most recent Business Partners Limited SME Index, which quarterly measures confidence levels amongst...

More than half of the world’s economies don’t foster high-growth female-owned businesses. This was a finding in the 2015 Female Entrepreneurship Index (FEI) which revealed that 47 of the 77 countries surveyed scored below 50 points. From a local perspective, South Africa ranked 36th out of 77 countries with an FEI score of 44.2. In comparison, the United States ranked 1st with an FEI score of 82.9.  Gugu Mjadu, executive general manager of marketing: Business Partners Limited (BUSINESS/PARTNERS), says that these figures demonstrate that South Africans need to push even harder for equality in entrepreneurship, but, at the same time, warns that the country must be patient. “Research all over the world shows that when it comes to high growth entrepreneurship, female entrepreneurs are still in the minority. The move to equality is bound to be a slow, generational shift, but one that will require a conscious effort to complete,” says Mjadu.  “However, there is no doubt th...

LACK OF SME FINANCE KEEPS ENTREPRENEURS AT BAY Are there enough sources of finance to stimulate entrepreneurship? Gerrie van Biljon Owners of small and medium enterprises (SMEs) regard access to finance as a major hindrance in either starting a business or expanding an existing business. Not only is this experienced by local businesses, but also by entrepreneurs situated all over the world, with research indicating that access to finance is the main hindrance globally. The question begs why?  The limited finance available for SMEs is as a result of financiers regarding these businesses as high risk, says Gerrie van Biljon, Executive Director at Business Partners Limited (BUSINESS/PARTNERS), a risk finance company which finances and invests in SMEs. “SMEs are often perceived to not have the correct financial systems and controls in place, and have out-dated or questionable financial statements. In many cases the financial leverage is also not at acceptable levels, with...

SA Franchise Warehouse Funding Solutions The SA Franchise Warehouse funding initiatives in association with funding partners, sefa , Kagiso Trust and The Jobs Fund (administered by Business Partners ) is aimed at assisting would-be franchisees whose own cash or collateral contribution does not meet commercial funding criteria. Would-be franchisees with an own contribution equal to 25 percent of the total set-up costs will be able to apply, provided all other qualifying criteria are met and that applicants have successfully completed the SA Franchise Warehouse Small Business Management Training course. This course in not a mere formality and candidates are trained and assessed on their aptitude and ability to acquire and implement the skills necessary to own and operate their own business. Funding is only available for franchise business systems that have been accredited by SA Franchise Warehouse in terms of the requirements of the participating funders. It is important to r...

Poor economic conditions impact confidence levels of SA SMEs  Local small and medium enterprise (SME) owners continue to be apprehensive about the regulatory and economic challenges facing the sector and country as a whole. This is according to the fourth quarter 2014 Business Partners Limited SME Index (BPLSI), which measures attitudes and confidence levels among local SME owners. SMEs conveyed an average confidence level of 53% that the South African economy will be conducive for business growth in 2015 – a 2 percentage point quarter-on-quarter (q/q) and year-on-year (y/y) decrease. Ben Bierman, the CFO of Business Partners Limited (BUSINESS/PARTNERS), says that the current issues facing the economy, such as the slow economic growth, rand volatility and load shedding, are impacting business owners’ confidence levels. “Business owners continue to operate in a tough environment, and while they are resilient by nature, recent developments continue to erode their confidence. ...