Gugu Mjadu Steps to building an ESG compliant business from the get-go Prioritising sustainability and socially responsible business practices has become increasingly important to potential investors when evaluating opportunities. According to the 2018 Schroders Global Investor Survey, a study by global asset-management company, Schroders, of more than 22 000 investors across 30 countries, 88% of South African investors indicated that sustainable investing is more important to them now than it was five years ago, compared with 76% of investors globally. It is for this reason that entrepreneurs should prioritise their Environmental, Social and Governance (ESG) score from the get-go to ensure investor interest down the line. An ESG framework is based on three central factors when measuring the sustainability and ethical impact of an investment. These three factors are categorised into Environmental (water usage and waste production), Social (treatment of employees in the workplac...

In light of Women’s Month this August, we share a few of the entrepreneurial stories of the recently announced finalists of the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS . Four of the 15 finalists are exceptional women entrepreneurs doing amazing things across various industry sectors: Phillipa Geard – Recruit My Mom : When Phillipa Geard became a mother, she never imagined that the business of motherhood, would be the brainchild behind her very own business. Recognising that South African moms comprise a valuable portion of the country’s skilled labour force, Geard’s online recruitment agency, RecruitMyMom.co.za fills a unique gap in the market and provides moms all over the country with the opportunity to juggle both parenthood and a successful career. Phillipa Geard Beverley Gumbi – Isivuno Containers : Established in 2005 when Beverley Gumbi identified a niche in the local market for refurbishing containers, Isivuno Container ...

Gugu Mjadu Statistics South Africa’s Quarterly Labour Force Survey for Quarter 1 of 2018 was released on Tuesday. According to the report, formal employment increased by 56 000 jobs in the first three months of this year. While 56 000 additional jobs looks impressive, Gugu Mjadu, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS , says that we need to remain focused on boosting entrepreneurship as the primary source of job creating for real, sustainable economic change. “Blanket statistics like this, while encouraging, don’t always paint the full picture in terms of our success and growth areas regarding job creation,” says Mjadu, alluding to the fact that the biggest increase in jobs was in the government sector. “We need to continue to put our energy behind creating a favourable environment for entrepreneurial successes. Unfortunately, many local entrepreneurs remain challenged by a number of common barriers to entry,” sa...

Kobus Engelbrecht Key elements of a business to review in preparation for the New Year 2017 has, to say the least, been a volatile year for the small business community. But as the year draws to a close and many businesses start to wind down, entrepreneurs should be encouraged to review the year that was and analyse how the business performed as this can be the driving force behind any new developments or goals that should be set for 2018. Kobus Engelbrecht, spokesperson for the 2017 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS , says that many entrepreneurs have had to battle against a number of economic headwinds this year which could have either brought challenges or opportunities for their business. “The economy slipped in and out of a technical recession, South Africa experienced multiple downgrades amid political turmoil, consumer confidence declined and disposable income among business’ customer bases likely experienced strain as a r...

A practical guide to determining which legislations apply to your business. By Monisha Prem Owing to the ever-increasing number of laws, entrepreneurs are faced with mounting red tape and/or regulatory compliance to adopt and apply in their businesses. While these legal requirements create obligations, they also provide certain rights and protection. All businesses, whether small or large, are required to comply with legislation (passed by government), regulations (rules prescribed by regulatory bodies) or industry best practices. Compliance legislations that govern business Compliance requirements range from the registration of businesses and business names to licensing, workers’ compensation, tax, unemployment compensation, intellectual property protection and industry-specific requirements such as compliance with professional bodies. Where does the compliance onus lie? It is the responsibility of the business owner to determine which legislations and regulations apply t...

Anton Roelofse Following the recent news announcement that Travis Kalanick, CEO of Uber, was asked to step down by shareholders in order to move the company forward, it brings to light the notion that there may come a time for a founding CEO of a successful start-up to evaluate whether they should handover the reigns to new leadership. Although this can be a hard pill to swallow, sometimes this option is worth exploring in order to successfully grow the business to its full potential. This is according to Anton Roelofse, regional general manager at Business Partners Limited (BUSINESS/PARTNERS), who says that, as a successful business grows, so does the role of the CEO, and sometimes the entrepreneurial traits of a small business owner are not conducive to successfully creating and running a large to global business. “Entrepreneurs are characteristically creative, solutions-driven and detail-oriented,” says Roelofse. “However, once a business grows, managerial skills and financ...

Kobus Engelbrecht While the unemployment rate for the fourth quarter of 2016 as released by Statistics South Africa on Tuesday decreased from 27.1% (Quarter 3 of 2016) to 26.5%, urgent action and support structures are still required in order for local entrepreneurs to do what they do best – create jobs. This is according to Kobus Engelbrecht, spokesperson for the 2017 Entrepreneur of the Year competition sponsored by Sanlam and BUSINESS/PARTNERS , who says that one of the surest ways to further bolster employment figures in South Africa is to place more emphasis on the promotion and development of entrepreneurship. Engelbrecht points to the latest Global Entrepreneurship Monitor 2016-2017 which states that small and medium enterprises (SMEs) in South Africa contribute 36% to GDP. “However, we could improve this figure if we make business conditions more conducive to growth.” Engelbrecht references the 2017 World Bank’s Ease of Doing Business report ranked South Africa 74 out of ...

Christo Botes When it comes to starting a business venture, many people think that an out-of-the-box, unique idea is needed in order to develop and build a company. However, this notion is progressively changing as more and more budding entrepreneurial-minded individuals are looking to seasoned entrepreneurs for their starting block in the form of an offer-to-purchase. Christo Botes, executive director at Business Partners Limited (BUSINESS/PARTNERS), says that developing a start-up business or buying a franchise isn’t the only path to becoming a successful business owner, and that the route of purchasing an already existing business is growing in popularity. Botes says that the country’s high startup failure rate is contributing to the shift from start-up ventures to acquisitions. According to the 2016-2017 Global Entrepreneurship Monitor report, South Africa’s established business rate – the percentage of the adult population that are owners or managers of businesses that have be...

Howard Arrand Let’s start with KZN Not withstanding the struggling South African economy, the tourism industry is providing a glimpse of hope as one of the critical sectors that will boost growth and promote job creation. The sector posted positive growth numbers in a year where world markets were depressed.  Businesses in this sector should be prepared to take advantage of the opportunities presented by local and international developments. Howard Arrand, Provincial Head of FNB Business in KwaZulu-Natal (KZN) says “the tourism industry contributes an estimated 3% to the national GDP, employing an average of one-in-25 people in South Africa - significantly more than most industries”. He argues that tourism is the ‘goose that lays the golden egg’, we should be focused on growing the sector exponentially. South Africa has remained a popular luxury destination for many international travellers; especially as it offers a world class experience from shopping to pristine beaches ...

Gugu Mjadu We are approaching 100 days since the local government elections and as newly elected mayors of South Africa’s municipalities begin to tackle the many governmental challenges that face them, there is significant opportunity to boost job creation among small and medium enterprises (SMEs), especially those that provide vital products and services to municipalities and local authorities. This is according to Gugu Mjadu, executive general manager: marketing at Business Partners (BUSINESS/PARTNERS) , who says that entrepreneurs are critical to the development and well-being of any community, and stronger partnerships should be forged between local government and business communities if South Africa is to improve economic growth, create employment and effect real change in the various municipalities. “For many newly elected mayors their political parties listed improving employment opportunities at local government level on their campaign agendas. As one in four South Afri...

Marcel Klaassen Banking hours no longer apply to entrepreneurs  FNB Business has given a new meaning to convenience in banking with the launch of its latest innovation ‘24/7 Business Desk’ which allows businesses of all sizes to solve administration related queries at any time of the day. “24/7 Business Desk, another first for the bank, was developed with the business owner in mind,” says Marcel Klaassen, Head of Sales at FNB Business.  “Our entrepreneurial culture drives us to fully understand the complexities and pressures of running a business in South Africa. As a result, we hope to break traditional banking stereotypes and develop innovative banking solutions like the 24/7 Business Desk.” As economic circumstances remain uncertain many business owners have no choice but to maximize sales and productivity, during working hours, in order to gain a competitive edge and retain market share. This often leaves little or no time to focus on banking administration related ta...

Christo Botes Economic growth in South Africa has, for the last few months, been in the spotlight – especially as ratings agencies keep a close eye on developments in the country. Given entrepreneurs’ significant contribution to GDP, reported at 42%1, the expectation remains for entrepreneurs to bolster growth in the country. As we review our heritage this Heritage Month, the question however remains, is a culture of entrepreneurship being promoted in South Africa? According to Christo Botes, executive director at Business Partners Limited (BUSINESS/PARTNERS), the answer is ‘somewhat’. “To drive future economic growth, South Africa needs to introduce and enhance initiatives aimed at ingraining entrepreneurship into its culture. He explains that entrepreneurship is moulded by intention, opportunity, skills and resources. Together these elements derive entrepreneurial activity, which involve an individual identifying an opportunity, and using their ability and motivation to navigate...

David Morobe It has become commonly accepted that entrepreneurs spend more time working after hours than conventional employees who work the standard 9-to-5 job. The fact that the small and medium business sector contributes approximately R530 billion to the South African economy through working beyond the standard business hours – according to a global survey by Sage in 2015 – is proof that entrepreneurs are not afraid to put in the extra hours David Morobe, regional general manager at Business Partners Limited (BUSINESS/PARTNERS), says that while such dedication to a business is somewhat inherent to entrepreneurs, they need to strive to strike a balance between work and personal time in order to ensure sustainable success in their business. The survey revealed that 26% of South African business owners have taken less than five days holiday a year, and 44% have opted to choose their work over family time. “While dedicating large amounts of extra hours to a business can be vit...

Christo Botes Youth unemployment is on the rise in South Africa, and yet at the same time youth entrepreneurship is declining. Christo Botes, executive director at Business Partners Limited (BUSINESS/PARTNERS) , says that  the recently released  Social Profile of Youth 2009 – 2014 report highlights this trend, and reveals that the number of youth entrepreneurs declined from 609 000 in 2009 to 543 000 in 2014. He says that in order to reverse this trend, South African youth need to be equipped with the necessary skills and knowledge to start and run a micro or small business. “Many youth possess an entrepreneurial mind-set but either simply don’t have the necessary skills or access to resources to take a business idea and turn it into a successful start-up business.” To bridge the gap between entrepreneurial thinking and actually establishing a start-up business, the 2016 SME Toolkit BUSINESS/PARTNERS Business Plan Competition for Aspiring Young Entrepreneurs will once ag...

Gerrie van Biljon The ailing South African economy, exasperated by rising government debt and the weakening rand, poses a unique set of challenges for small and upcoming businesses. We have also seen in the last few years the number of South Africans interested in starting a business has halved since 2010. However, trying economic conditions don't necessarily mean a death sentence for smaller companies. This is according to Gerrie van Biljon, Executive Director at Business Partners Limited (BUSINESS/PARTNERS) who says that by employing simple strategies, such as better expense and cash flow management, customer centricity and the streamlining of processes, not only can smaller businesses survive during these tough economic times, but they can thrive. “Having recently revised its GDP down to 0.4% from 0.6% for quarter 4 of 2015, economic growth in South Africa has slowed down, and the inflation rate and unemployment figures remain ominously high. While this kind of economic cli...

Ydhvir Seetharam Youth should be open-minded about entrepreneurship as a career option As South Africa narrowly avoids a credit rating downgrade, one factor that can contribute positively to the revival of the economy is entrepreneurship, particularly youth entrepreneurship. Yudhvir Seetharam, Head of Analytics for FNB Business says with first quarter GDP figures not showing signs of improvement, the likelihood of creating jobs continues to shrink, leaving young graduates with fewer options in the workplace, unless they consider new business ventures. Employment figures released by Stats SA in April show that unemployment in the first quarter increased to 26.7%, which is 2.2% higher than the fourth quarter of 2015.  This coupled with the volume of job losses is a clear indication that it is going to get even harder for young graduates to secure sustainable jobs. "The reality is that there are not enough jobs available in the market to cater for all the graduates in the countr...

The unemployment rate in South Africa was estimated at 26.7% in March 2016, a significant increase from 24.5% in the first quarter of the year – according to Statistics South Africa. Youth Day, which is acknowledged annually on the 16 June, highlights the need for Corporate South Africa to invest in skills development and entrepreneurial training in order to address the pressing issue of unemployment among the youth. This is according to Janice Finlay, Head of Economic Development at Solar Capital - a leading solar plant developer that recently launched the largest solar farm in the Southern Hemisphere - who says that unemployment among South African youth is not only a pressing social issue, but is also a major obstacle standing in the way of economic growth in the country. “To address this issue, Solar Capital recently started its Solar Capital Enterprise Development Youth Programme, which aims to create start-up businesses that will be owned and run by 16 local youngsters between t...

Anton Roelofse Given South Africa’s high youth unemployment rate, estimated to be around 60%1, starting and growing a business is a potentially enriching career path for a young person to choose, not only financially, but also mentally and socially. Anton Roelofse, regional general manager at Business Partners Limited (BUSINESS/PARTNERS) , says that while entrepreneurship is an exciting career option with great future potential, entrepreneurs, particularly the youth, also need to be aware that it is a difficult path. “The business discontinuation rate in South Africa remains higher than the established business rate1 – which refers to a business that has been in operation for more than three and a half years. This means that businesses are closing at a faster rate than the rate at which new businesses are being established in the country. While this high rate of discontinuation affects all entrepreneurs, it puts younger entrepreneurs at greater risk as they may not have the indust...

Gugu Mjadu Successfully building a client base: Advice for start-up, young entrepreneurs Attracting and retaining clientele is an integral part of running a successful business – irrespective of its industry, structure or size. Although a challenging feat for all entrepreneurs, this can be particularly trying for young entrepreneurs, who have not had the privilege of building up a network of business contacts and potential clients over a number of years. This is according to Gugu Mjadu, spokesperson for the 2016 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS , who says that young entrepreneurs are often so focussed on the novelty of establishing their own business venture that they forget the importance of securing an initial customer base. “Regardless of how innovative or necessary a new product or service may be, clients are ultimately the deciding factor in whether or not a business venture will be a success,” she says.  Mjadu explains tha...