Incub8 Magazine Edition 1

12 THINGS TO WATCH WHEN LOOKING FOR AN INCUBATOR

HOW TO PREPARE A WINNING BUSINESS PLAN – CHAMP THEKISO

AJAY’S

LEGAL ADVICE FOR SMALL BUSINESSES

8 TOP TIPS TOP 3 RIVERSAND’S BUSINESSES TO WATCH IN 2017

WITH YOLELWA SIKUNYANA

HOW TO FINANCE YOUR BUSINESS VIA CROWD FUNDING

11 WAYS TO MAKE SURE YOUR ESD PROGRAMME MATCHES YOUR GROWTH PLANS

www.incub8mag.co.za · Volume 1 · 2017

CONTENTS 6 Letter from the editor

32

8 Foreword 10 Leadership guest note 12 Contributors 14 Credits team 16 Increasing the economic

viability of SMMEs through incubation 20 Business leader's pearls

of wisdom 24 12 Important questions to

ask before joining an incubator 26 NGM: Providing the

backbone for innovative strategies

30

30 Reasons funders toss away

business plans

40

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32 Apps that Bongani Gosa use 34 Intellectual property explained 36 What you should know about sefa 38 11 Points SMEs must

consider before joining an

ESD program 40 3 Promising businesses at Riversands Incubation Hub 42 Young entrepreneurs 44 All you need to know about crowdfunding 46 Incubation centres directory 48 Business development agencies

Creating Sustainable Growth for South Africa Joy Global has always sought to make a difference in the countries in which we operate. We are committed to working in a sustainable and ethical manner, strengthening the communities where we work and live.

Joy Global (Africa) (Pty) Ltd, A BEE Level 3 Contributor 12 Commercial Road, Wadeville, 1428, South Africa Tel: +27-11-821-7300 Email: info@joyglobal.com

Joy Global, P&H and Joy are trademarks of Joy Global Inc. or one of its affiliates. Š 2014 Joy Global Inc. or one of its affiliates. All rights reserved.

JoyGlobal.com

IS YOUR COMPANY COMPLIANT WITH THE SOCIAL AND ETHICS COMMITTEE REQUIREMENTS? FOR SHAREHOLDERS OF COMPANIES, EMPLOYEES, TRADE UNIONS AND MEMBERS OF HOME OWNER ASSOCIATIONS BACKGROUND The Companies Act No. 71 of 2008 (“Companies Act”) has for the first time introduced the concept of a Social and Ethics Committee in legislation, which requires certain categories of companies to report on issues such as: • Social and economic development.

• Good corporate citizenship.

• The environment, Health and Public Safety.

• Consumer Relationships.

• Labour and Employment.

LEGISLATIVE REQUIREMENTS IN RESPECT OF THE SOCIAL AND ETHICS COMMITTEE

committee, and the social and ethics committee of that other company will perform the functions required by this regulation on behalf of that subsidiary company; or

(b)

it has been exempted by the Companies Tribunal in accordance with section 72 (5) and (6) of the Companies Act.

Therefore based on the above and the fact that the Companies Act has been in existence for more than five (5) years, it is expected that the companies that are required to have Social and Ethics Committees, must have already appointed the Members of the Social and Ethics Committees, except those that have received the relevant exemption as per above.

CONCLUSION

Companies must ensure that the Social and Ethics Committee effectively serves the purpose for which it was intended and created and does not become just another tick in a company’s compliance Section 72 of the Companies Act allows the board checklist but plays an active role in the of directors of a company to establish board advancement of the communities in which they committees, the Social and Ethics Committee operate while they also continue to derive is one such board committee that is envisaged in economic benefits. the Companies Act. Regulation 43 specifically provides that every state owned, listed public company and any other company that has in any two of the previous five years, scored above 500 points in terms of regulation 26(2) must appoint a social and ethics committee unless(a)

it is a subsidiary of another company that has a social and ethics

Has your company complied??

For more details go to www.cipc.co.za Yours Faithfully Adv. Rory Voller Commissioner: CIPC

LETTER FROM THE EDITOR

EDITOR'S NOTE S

IMPLE, FRESH, FLEXIBLE, EMPOWERING, ON POINT AND IN NUMBERS. These are some of the words that dominated our initial meeting of Incub8 Magazine (Pronounced Incubate).

With greatest of pleasure, I welcome you to this inaugural edition of Incub8 Magazine. This unorthodox content provider is here to champion entrepreneurship, incubation, business advice and Enterprise and Supplier Development. Incub8 Magazine is a guide for growing businesses which aims to help them navigate their way into success and profitability. It is about making money, taking calculated risks and making tough decisions. We will also look into executing plans and unpack lessons from various people who have either made it or helped others make it.

I really am trying to contain my excitement but I must be honest it’s not easy. Entrepreneurship is a subject that is close to my heart, in fact it is what I have been doing my whole life. So we will be looking at various success stories of township, rural and urban businesses. We want to examine failures as well, not to gossip, but to learn from these experiences.

and manage successful transformation projects.

One such person is Ajay Lalu, who is on the cover of this edition. Ajay does not only speak about B-BBEE consulting but rather his business journey and shares advice that will help business owners take their establishments to new heights.

We have a regular section focusing on law. This is prepared for us by Yolelwa Sikunyana to provide legal advice for small and medium enterprises and equip businesses to confront what could have been cost consequences of not abiding by the law. Another exciting component of Incub8 is our comic section, Smart Mampara, starred

by Spitjo the streetwise business aspirant. Smart Mampara will continue to bring solutions from different SMME support institutions using popular brands. We will also provide content about new technologies such as apps and gadgets which SMMEs can use to automate their systems. We pay particular attention to sales as an ingredient of a successful business. Among other things we will look at businesses that provide rare solutions while we will also look at innovation and creativity.

This is just to mention a few.

The Incub8 team has done a remarkable job putting this edition together. Oozing creativity and not afraid to break boundaries and touch a nerve at times.

Please support this project through advertising, idea generation and sharing on social media. Do send us your thoughts through your letters and your projects. Incub8 Magazine will redefine the space with empowering news and critical content regarding small and medium enterprises.

So here it is, it is yours. This edition has contributions from extraordinary business owners and specialists who have committed to share their wisdom so you and I can run better businesses

Enjoy your read!

Saki Mabhele

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FOREWORD

WHY ENTREPRENEURSHIP GROWTH SHOULD BE BOOSTED Thakhani Makhuvha, CEO of Small Enterprise Finance Agency (sefa) says entrepreneurship has been identified as key in addressing unemployment and poverty worldwide because entrepreneurs make significant impact by transforming what others perceive as insurmountable problems into potential possibilities.

B

usiness activity driven by Small, Medium and Micro Enterprises (SMMEs) and Cooperatives is widely regarded as the fuel necessary to fire up economic growth, and South Africa (SA) must push for urgent and significant growth to ensure that economic and social ills are steered off.

We are mandated at sefa to provide access to funding by SMMEs and Cooperatives especially from under-resourced communities such as townships that can generate scalable and sustainable employment opportunities. However, we remain challenged with finding the right partners who can access these under-resourced communities on a bigger scale. Entrepreneurs from these areas experience high failure rates primarily due to poor preparation, lack of skills and mentoring.

We would like to see more instances where small businesses, among the economically inactive including youth, are boosted in order to reduce unemployment, poverty, escalating crime levels and drug abuse. Small businesses also facilitate specialist inputs into big industry value chains. They ensure that the bigger players use their muscle to drive economic growth, whilst the coordinated activity of small and big businesses is allowed to yield the desired transformation of the country’s economy.

SMME and Cooperative development is advancing, albeit slowly, and the government has established mechanisms to promote the desired small business growth and social cohesion,” Makhuvha says. This drive led to the establishment of the Department of Small Business Development (DSBD) in 2014, with sefa, as one of its agencies.

The joint venture between sefa and Awethu Project, (sefa Awethu Youth Fund) has been 8 www.incub8mag.co.za · Volume 1 · 2017

instrumental in offering financial support to young entrepreneurs. As a result, we have approved R64 million funding for the Awethu entrepreneurs, with R60 million for on-lending and R4 million as a grant for business support purposes. Entrepreneurs benefiting from this project have dedicated incubator coaches who ensure that post training, entrepreneurs qualify for funding.

Since April 2013, sefa Awethu Youth Fund has disbursed over R43 million to approximately 58 SMMEs, with 95% of the disbursed amount benefitting black entrepreneurs and close to 70% being youth-owned enterprises. This financial support has helped create and sustain at least 236 jobs to date.

SA government is confident about the potential that SMMEs have on job creation.

Hence, the highlight in the National Development Plan that 90% of the new jobs should be generated by the small business segment by 2030.

The Nine Point Plan unlocks the potential of SMMEs and Cooperatives, including township and rural enterprises. The 30% set-aside policy allows small businesses to participate in the government’s procurement spend. This is an area where we play a critical role.

Creating a safe and protected environment for SMMEs and Cooperatives to succeed requires focused interventions by the private sector, government and business chambers.

These interventions include incubation that offers skills, mentoring and capacity to budding entrepreneurs on a bigger scale.

Incentives geared at driving success should be included in these programmes to ensure positive outcomes. 

Makhuvha highlights that since April 2013, sefa Awethu Youth Fund has disbursed over R43 million to approximately 58 SMMEs, with 95% of the disbursed amount benefitting black entrepreneurs and close to 70% being youth-owned enterprises.

She can feed a

hungry planet.

We’re going to

help her do it.

In Sub-Saharan Africa, the average farm produces only 1.3 tonnes of maize. In North America, it’s seven times as much. What farmers need, across the world, is access to the technology, skills and resources that can help them get more from their land. As one of the world’s leading agricultural companies, Syngenta is committed to helping farmers raise yields while conserving water, soil and ecosystems. It’s part of what we call the Good Growth Plan. We commit to making six measurable contributions to global food production by 2020. For more information about the Good Growth Plan, our six commitments and the progress we are making, visit www.goodgrowthplan.com

Beth Wangari is one of 450 million smallholders worldwide, who produce over 25% of the world’s food. As one of the world’s leading agricultural companies, we’re committed to empowering smallholders like Beth, so they can increase their yields sustainably and become more profitable. But it doesn’t stop there. In The Good Growth Plan, we have set out six measurable ways in which we’ll help farmers to overcome major farming challenges by 2020. And we’re ready to work with growers, governments, NGOs and all who share this agenda. To learn more about The Good Growth Plan, our six commitments and the progress we are making, visit www.goodgrowthplan.com Volume 1 · 2017 · www.incub8mag.co.za 9 © 2013 Syngenta AG, Basel, Switzerland. All rights reserved. The SYNGENTA Wordmark and THE GOOD GROWTH PLAN are trademarks of a Syngenta Group Company. www.syngenta.com

LEADERSHIP GUEST NOTE

HOW OIL FARMING IS CREATING WEALTH FOR SA SMALL FARMERS Ellis Levember CEO of Seda Essential Oils Business (SEOBI) explains how essential oils farming has evolved and how the company’s dream of becoming the biggest essential oils producer in Africa is starting to become a reality.

M

“Past studies have indicated that it is difficult for inexperienced farmers to manage a 20 acres’ farm.

This led to us establishing an important project in the past financial year; a model farm of only 6 acres.

As small as it may seem, it is producing quality oil and a much higher profit margin”.

y “If it’s not an ark, don’t build it.

If it’s not something new, don’t even attempt it”. This is the mantra I live by.

Our main business at SEOBI is much more than the development of small businesses in the essential oils industry in South Africa. It is also about developing innovative ideas and entrepreneurial skills amongst communities throughout the country with the goal of creating jobs.

Where essential oils were perhaps an ark five years ago - with not so many people believing in it- it has now grown into an industry with unlimited potential. ‘Green’ and ‘organic’ is the way to go, not only in food production, but also in how cosmetic and cleaning products are manufactured.

We have developed a new business model that is currently changing the landscape of farming in the industry. Past studies have indicated that it is difficult for inexperienced farmers to manage a 20 acres’ farm. This led to us establishing an important project in the past financial year; a model farm of only 6 acres. As small as it may seem, it is producing quality oil and a much higher profit margin.

SEOBI now provides the farmer with material, seedlings, training as well as final processing steps. As soon as the entrepreneur can handle the first acre, materials and seedlings for the next 6 acres are further provided. Thereafter, the success of a farm becomes the responsibility of the farmer with the full support of SEOBI.

10 www.incub8mag.co.za · Volume 1 · 2017

In the financial year of 2015/2016, SEOBI not only supported more than 150 existing SMMEs and clients but we also expanded our activities to the Eastern and Northern Cape regions. While Rose Geranium remains the main product, Yarrow, German Chamomile and Roman Chamomile have been added to the line of business. Our dream as a company is to become the biggest essential oils producer in Africa. This is starting to become a reality, with the DRC, Liberia, Zimbabwe and even Swaziland showing interest in SEOBI becoming involved in their production of Rose Geranium.

Agricultural activities in South Africa experienced many challenges with the extremely high temperatures and low rainfall during the period under review. The drought ultimately led to the postponement of harvesting, which had a direct impact on revenue since no oil could be produced. As a way of minimising the negative effects of the weather on crops, we have implemented an Agri Weave ground cover that serves as mulch, suppresses weeds and conserves moisture content in the soil.

SEOBI is like a train with different stations but with a very clear destination and my staff and I keep the train on its track.

CONTACT: Tel: +27 12 808 3061 Email: admin@seobi.co.za www.seobi.co.za 

AN ECONOMY CREATED ENTIRELY FROM WASTE REDISA continually creates positive futures for businesses, people and the environment by driving a circular economy that will help redesign, reinvent and reuse the products we consume.

Our first-of-its-kind plan and revolutionary systems are making meaningful contributions to our society – creating jobs, opportunities and brighter futures for all.

The potential for our future? Endless.

JOIN THE JOURNEY | www.redisa.org.za |

/wasteintoworth |

@wasteintoworth | +27 87 35-REUSE (73873)

CONTRIBUTORS Champ Thekiso is a Chartered Accountant and has spent over 10 years working with and for SMMEs. He is the founder of Thekvest Group (Pty) Ltd, which focuses on investing in high growth potential SMMEs and Advisory Services (i.e. legal advisory and economic inclusion solutions). The group has interests in different industries, namely, agro-processing and value add products to financial services. It is also exploring investments in steel structuring, technology and renewable energy. Champ has extensive experience in stakeholder engagement, local procurement, economic transformation and social performance mostly within the resources sector. He has been an advisor and has served as trustee on various boards.

Bongani Gosa is the Owner and Creative Director of BWD. Established in 2006, BWD (www.bwd. co.za) is a full service digital communication agency that helps clients leverage digital communication as a tool in driving tangible business results. Under Bongani’s leadership, the company has shown extraordinary growth for a business of its size. BWD has an impressive portfolio of key clients that includes a conglomerate like T-Systems as well as the University of Witwatersrand. BWD now officially also creates award-winning work. During 2015, the company produced a promotional video to help UJ grow their alumni member base, which won a MACE award.

Don Mashele has been heading sefa Regions Direct Lending since 2012 and manages five of the sefa regions. Before assuming the current role, he was project manager for Khula Direct Pilot Project.

He has been in development finance for over 20 years, specialising in SMME finance. His career highlights include joining Standard Bank in 1994 as a monitoring officer in the SMME unit, and later moving to Independent Business Enrichment Centre in 1996. He holds a BCom from the University of the North as well as a certificate in Management Development from the University of Pretoria among other qualifications.

Iegshaan Ariefdien is chief operating officer at the Furniture Technology Centre Trust (Furntech), and has worked professionally as a business advisor, manager of strategic sectors and small business researcher during his career. Iegshaan has as well served as chairperson, treasurer or member of various boards and organisations.

He has been and still is an External Moderator for the Fashion Design Department at Cape Peninsula University of Technology for the past 8 years. He holds an Honours degree in Business Administration from Stellenbosch University and a Higher Diploma in Education from the University of the Western Cape.

Zaid Mohidin is an award winning CEO and founder of New Generation Mind-set. He has more than two decades of experience at blue-chip concerns in the public and private sectors of South Africa. He started off in ICT and went on to change industries in executive positions before starting one of his many successful companies in 1999.

Zaid pioneered the first Hybrid Incubator in South Africa and has been lauded for his contribution in developing ICT, construction, energy, agriculture and mining sector stimulation programmes.

The certified business advisor graduated from WITS University where he got his MBA, majoring in International Strategy from De Montford in the United Kingdom.

Yolelwa Sikunyana is a founder and director of Sikunyana Incorporated Attorneys situated in Midrand, Gauteng. She has over 13 years’ experience as an in house legal counsel and has worked for both the private and public sector, in companies such as Ekurhuleni Metropolitan Municipality, Tasima, SABC, BP SA and Transnet SOC. She holds an LLB from Vista University, a PG Dip in Drafting and Interpretation of Contracts and a Certificate in Compliance Management both from the University of Johannesburg. Currently studying LLM in Law of Contract at the University of Pretoria, Yolelwa also holds a Certificate in Advanced Company Law.

Jenny Retief is the first CEO of the Riversands Incubation Hub. Riversands Incubation Hub is a business incubator established in 2015 through a partnership between Century Property Developments and National Treasury’s The Jobs Fund. The Hub currently accommodates over 150 small businesses, supporting more through business development programmes and support services. The Hub is located at the centre of the Riversands Commercial Park. The aim of the incubator is to create a strong, enabling eco-system which fosters the development of high-potential enterprises. Different industries are represented by the businesses at the Hub and clusters have emerged amongst the entrepreneurs.

Siya Bacela is the founder and Managing Director of Bacela Consulting, a business development entity based in Johannesburg, Gauteng which was founded in 2014. He holds an MTec in Chemistry from Nelson Mandela Metropole University and an MBL from UNISA. He has 14 years’ experience in the corporate world through his previous employment at Sasol. Currently, his work is focused on providing sustainable business solutions for clients to enhance the competitiveness of their value propositions. His services include support in implementation of Enterprise and Supplier Development (ESD), coaching and mentoring of SMEs and business advisory on growth strategies.

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PUBLISHER'S DETAILS Publisher Publishing Editor

PAPASHA MEDIA (PTY) LTD Sakhumzi "Saki" Mabhele 1 York Street, Kensington B, Randburg 2194 Tel: 0861 744 674 Fax: 0866 11 44 78 saki@papashamedia.co.za

Admin Media Assistant:

Nomfanelo Qumashe

Production Media Assistant:

Ditshwanelo Mosia

Design & Layout

Liza Mijburgh

Printer

SAKIPRINT Litho

Head Business Development

Musa Ndlangamandla musa@papashamedia.co.za

Advertising Sales

Luyanda Mbopa Lunga Kakaza Esau Mudau

Editorial Enquiries

editor@papashamedia.co.za

Advertising Enquiries

advertising@papashamedia.co.za

Media Process Manager

Thabiso Dlamini thabisod@papashamedia.co.za

Online Advertising

onlineads@papashamedia.co.za

General Enquiries

info@papashamedia.co.za Tel: 0861 744 674 Fax: 0866 11 44 78 www.papashamedia.co.za Facebook page: @incub8Mag Twitter page: @incub8Mag

TERMS AND CONDITIONS OF USE / DISCLAIMER Incub8 is a product of SAKIPRINT CC. 1 York Street, Kensington B, Randburg, 2194. Incub8 (ISSN No. 2520-9248) considers its sources reliable and verifies as much data as possible. However, reporting inaccuracies can occur, consequently readers using this information do so at their own risk. Incub8 is sold with the understanding that the publisher is not rendering a legal or advisory service.

Although companies and contributors mentioned herein are believed to be reputable, neither SAKIPRINT (Co. CK2002/063910/23), nor any of its employees, sales executives or contributors accept any responsibility whatsoever for such persons’ and companies’ activities. SAKIPRINT CC. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form without prior written permission of the publisher. Permission is only deemed valid if approval is in writing. Incub8 buys all rights to contribution, text, images unless previously agreed to in writing.

Stock images supplied by Shutterstock.com

Volume 1 · 2017 · www.incub8mag.co.za 13

CREDITS TEAM THABISO DLAMINI is a Media Process Manager at Papasha Media, the publishing stable for publications such as Transform SA and Incub8. Thabiso’s journey in the media industry began in rural KwaZulu-Natal where he served as a public relations trainee at the province’s Department of Health before moving to Johannesburg where he joined a digital marketing agency. He then moved to a media monitoring company where his role included working with large blue chip companies as a senior media analyst.

Thabiso has extensive knowledge in the world of publishing as a result of writing and publishing for internal and external stakeholders, mainly the media. He has a Business Administration Diploma and PR qualifications. He is also a contributor on BizCommunity.com where he drafts media related topics.

Thabiso views Incub8 magazine as a great platform to showcase growing companies while also serving as a resource tool for aspiring entrepreneurs.

DITSHWANELO MOSIA is a bold and confident extrovert from the small town of QwaQwa in the Free State. She completed her basic education at The Beacon Secondary School in 2012. Dee as she is affectionately known by her colleagues, obtained a Diploma in Media Practises from Boston Media house where she specialized in radio and sound engineering.

“To realize one’s destiny is a person’s only obligation, and when you want something the entire universe conspires in helping you to achieve it”, these are words she lives by. Ditshwanelo is in a race of fulfilling her destiny, and in order to do so, she believes she has to acquire knowledge, experience, be natured and strive to be better than she was yesterday. Ditshwanelo is well on course to fulfilling her destiny through her personal achievements at Papasha Media where she is a media intern and continues to prove her worth in an environment which allows her to work towards being an expert in the media space.

NOMFANELO QUMASHE is a confident, passionate and blunt young lady from Klerksdorp in the North West and a go-getter. She is a former student of Kimberley Girls’ High. Fefe, as she is affectionately known, is a media enthusiast and has a Diploma in Media Practices under her belt. Obtained from one of the best media institutions in SA, Boston Media House in Sandton, her diploma’s specialty is Radio and Sound Engineering.

She is currently registered with UNISA for a BA in Communication Science. She sees media as the engine of her existence and this is evident in the way she carries out her responsibilities.

She is also interested in business and foresees a future of conquering great markets inspired by these wise words - wealth is the ability to fully experience life. It is Fefe’s passion with media that has seen her joining Papasha Media’s Incub8 Magazine. She adds to the company the much needed process facilitation and administration.

MORIBEGO MADUBANYA is a Media Practices graduate currently an intern at Papasha Media. She is passionate about the media industry and hopes to one day become an inspiration to many, especially her fellow villagers in Eisleben, Limpopo.

Born in Tzaneen and raised in Botlokwa and Janefurse, Moribego’s aspiration to be a media mogul led her to Johannesburg after completing her basic education in Limpopo. She is inspired by Cate Madubanya who obtained her Honours Degree in Teaching while taking care of three children and overcoming adversity. Moribego believes if you can dream about it you can achieve it. Her favourite quote is “there is beauty in not knowing what will happen next, so go after that dream”.

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STATE OF INCUBATION

INCREASING THE ECONOMIC VIABILITY OF SMMEs THROUGH

INCUBATION Iegshaan discusses key reasons for the establishment and funding of the business technology incubation model as well as the distinguishing characteristics of incubation that need to be defined by an incubator.

BY IEGSHAAN ARIEFDIEN

16 www.incub8mag.co.za · Volume 1 · 2017

STATE OF INCUBATION

S

mall, Medium and Micro Enterprises (SMME) have been recognised by governments across the world as a vehicle for grassroots economic development.

It is a shared belief that small businesses contribute significantly to economic growth of countries by alleviating unemployment as well as contribute to technology and innovation. In South Africa, this potential was recognised in the early 1970s. In 1994, the government continued to emphasise the fundamental role of the SMME sector and the contribution it could make to the economy. By 2000 South Africa had its first incubators established and operating which led to the establishment of the Southern Africa Business Technology Incubation Association in 2004.

The primary goal of business incubation is to facilitate economic development by improving the entrepreneurial base (of a local area, town, province, country, or sector) through the provision of infrastructure, people and a variety of business support services. Business incubation therefore, can be regarded as an excellent vehicle that serves as a catalyst for accelerating, nurturing and growing new and existing small businesses by supporting them through the early stages of development and change.

Generally, business incubation provides an enabling environment, business and technical skills transfer, access to raw material, product development, quality control and statutory registration and education. An incubator provides an entrepreneur with conditions that promote fast and sustainable development of their small business.

Provision of management guidance, technical assistance and business and entrepreneurial support tailored to the specific needs of emerging and growing businesses are critical factors to an incubation model.

Incubation is also an economic tool for meeting a variety of socio-economic policy needs, which include amongst others: • Business creation and retention • Jobs and wealth creation • Poverty alleviation • Fostering a community’s entrepreneurial climate • Diversifying local economies • Building or accelerating growth of local industry clusters • Encouraging women entrepreneurship • Revitalising local communities and neighbourhoods

Incubation models have

80%+

SUCCESS RATE Other methods of small business development have a 35% success rate

KEY REASONS FOR THE ESTABLISHMENT AND FUNDING OF A BUSINESS INCUBATION MODEL ARE: 11. Incubation assists with overcoming market failures through strategic and planned access to information, workspace, services, technology, and finance.

21. It extends the government’s role in providing public goods – knowledge, research, infrastructure, and innovation.

31. Incubation is a visible symbol of commitment to the empowerment of small business owners, previously disadvantaged individuals, youth, graduates, women and disabled people.

41. The incubator is a useful strategy/tool to facilitate Local Economic Development (LED) and sector development in specific geographical areas and market sectors, making strategic partnerships possible.

51. The physical and visible nature of incubators attract government and corporate funding.

61. Successful incubators and their entrepreneurs generate income and taxes in excess of the net public subsidy.

71. The incubation models have 80%+ success – other methods of small business development have a 35% success rate on entrepreneurs evaluated 3 years after incubation process.

Volume 1 · 2017 · www.incub8mag.co.za 17

STATE OF INCUBATION

There needs to be a clear set of criteria that will allow the entrepreneur to qualify to enter into the incubation process. This can and should include a comprehensive CV, portfolio, business plan framework or idea, and technical skills evaluation when applicable.

There are certain distinguishing characteristics of incubation that an incubator needs to define on policy and procedure level, and communicate to staff and entrepreneurs.

• An entry policy – there needs to be a clear set of criteria that will allow the entrepreneur to qualify to enter into the incubation process. This can and should include a comprehensive CV, portfolio, business plan framework or idea, and technical skills evaluation when applicable.

• An exit policy – it needs to be clear to the entrepreneur when they will be ready for exiting the incubation process. The incubator and the entrepreneur need to be clear about the goals the entrepreneur needs to achieve before s/he can graduate from the incubator. This should be based on measurable deliverables and goals, rather than time only. The suggested period for incubation is between 12 and 36 months.

• Specific business development support services such as mentoring and coaching, and infrastructure are provided to a specific client to assist her/him achieve agreed upon goals and objectives. It is critical that the entrepreneur understands that the incubator is not there to do the work for them, but is an enabling environment, and that the responsibility of building a successful small business lies with the entrepreneur. A clear plan of the incubation process should be developed with and for every entrepreneur.

It is very important that the management of the incubator set clear and measurable goals for the incubator from inception. These goals can include: • Improved SMME Performance – you have to have a base-line measurement system of where the SMME is starting and then measure quarterly how the SMME performance is improving.

• Enhanced SMME Profitability & Growth – statistics and access to SMME financial and operational information is critical. Make sure that access to information is provided for in your incubation agreement.

• Reduced SMME Failures – it is important that the incubator knows the industry sector it caters for, and the success and failure rates associated with small businesses in this industry. Forming a partnership with

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•

•

•

•

the industry regulatory body, association or professional development organisation would provide access to such information.

Much Enhanced Access to Applied / Appropriate Technologies – it should be clear what barriers exist for entrepreneurs in your industry sector, and which of those are crossed by the incubator providing access.

Much enhanced utilisation of applied / appropriate technologies – it should be defined whom experts are that ensure enhancement and maximum utilisation of the technologies in the relevant sector.

Much Enhanced Management Support – should be measured in terms of the input made by the incubator (services delivered and accessed by the entrepreneur) and the output of the entrepreneur based on assistance from the incubator.

Greater Access to Business Linkages and Inputs – the incubator should become a centre of knowledge and networking, and should invite industry sector leaders and other relevant stakeholders to meet the entrepreneurs. Entrepreneurs should also be exposed to a measurable amount of industry and business related events.

The team in the incubator is part of the critical success of the incubator. You need a team with expertise in specific subject matter fields, an entrepreneurial spirit and knowledge of the challenges faced by a small business owner.

The leadership style should be inclusive and communicative, and lessons learned should be freely and openly shared. The team should include a strong business development officer, an excellent administrative leader that can establish and hand over administrative tasks. A strong financial and business leader, that can mentor and coach not only on SMME sustainability, but make input into the sustainability and financial management of the incubator should also make up the team. 

Clean Energy for the Future

www.cefgroup.co.za

CEF SOC Ltd is involved in the search for appropriate energy solutions to meet the energy needs of South Africa, the Southern African Development Community (SADC) and the sub-Saharan African region, including oil, gas, electrical power, solar energy, low-smoke fuels, biomass, wind and renewable energy sources.

It also manages the operation and development of the oil and gas assets of the South African Government. CEF controls entities with commercial and developmental roles, housed in various operating subsidiaries.

CEF, growing South Africa’s energy interests.

4796 | www.iww.co.za | cp

COVER STORY

BUSINESS LEADER’S

PEARLS OF WISDOM

Ajay Lalu is the Managing Director of Black Lite Consulting, a company that specialises in BBBEE consulting. Incub8 Magazine spoke to him about his journey as a business leader and some of the lessons that have helped him build his Group.

P

lease give us your background including your lessons and experiences.

I grew up in one of the more impoverished areas of the Cape Flats in the Western Cape. I spent my teenage years at Rylands High School where I was one of the youngest chairpersons of the Student Representative Council (SRC). One of my mentors was former struggle hero Dullah Omar who was the first Minister of Justice in President Nelson Mandela’s cabinet.

Com D encouraged us to study and further our studies which prompted me to enrol at the University of Western Cape where I did a Bcom and Bcompt Honours and eventually qualified as a Chartered Accountant (CA).

You are in the B-BBEE space, what are your views regarding business incubation, and how important is it for upcoming entrepreneurs to seek this for their start-ups?

A lot of companies have attempted to enter and make a mark in the business incubation space with varying degrees of success. These companies have faced several challenges because firstly finding a good entrepreneur is hard and secondly I believe these companies adopt a very cookie cutter approach to development of black owned companies.

They design the same programme while varying entrepreneurs find themselves in different stages in their growth strategy and personal development phase. I believe it is futile to adopt a standardized approach because we need to understand that different entrepreneurs face different challenges and need different interventions.

Moving into Black Lite Consulting, tell us about the history, how it came about and what it seeks to achieve?

Black Lite Consulting was formed 7 years ago while SA was grappling with a recession, my mentors, family and friends actually thought I was crazy to start a business in the middle of the 2010 World Cup. We started out in my dining room where the team included my personal assistant, one employee and myself. Today we are 8 employees strong and I believe this is one of those success stories I will include in my memoir when I am older one day. The company has a large corporate clientele which include the likes of CocaCola Beverages SA and AB InBev, so we work with blue chip companies. We have built a good reputation in the B-BBEE space as a result of the knowledge we possess which has actually resulted in us having very loyal clients.

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Please unpack your target market and how did you define this target market?

Our target market is clearly defined as large corporates. As a small workforce, servicing a large number of clients outside of our target market would render us inefficient thus the decision to have a small team servicing a small number of blue chip clientele. Our clients receive great personalized service with bespoke and strategic solutions.

Please take us through the growth of Black Lite Group? Was the company funded if so by whom?

We are self-funded. I was involved in the Deutshe Bank BEE deal and I used the proceeds of the deal on my exit as capital to start Black Lite Group. I was inspired by former State President Thabo Mbeki’s comments when he said we needed to create productive assets and desist from being passive shareholders in other entities. The need to create jobs for young Black people was a major driving force for us.

What programs or services do you guys offer to corporates and SMMEs? At Black Lite Consulting we specifically develop bespoke BEE strategies for businesses by efficiently and effectively moving them from their current score to

COVER STORY

Ajay Lalu

I believe it is futile to adopt a standardized approach because we need to understand that different entrepreneurs face different challenges and need different interventions.

Volume 1 · 2017 · www.incub8mag.co.za 21

COVER STORY

What is your Turnover?

We have witnessed a significant growth and our turnover is in the region of R10 million in our consulting business. We are in the process of establishing an ESD Fund Management business which will add significantly to our turnover.

What are your top 5 tips for small business owners?

1. Persevere! Persevere! Persevere!

2. Love what you do.

3. Focus on one thing.

Doing everything doesn’t help.

4. Do it exceptionally well.

5. Ask for help when you need it.

Your top 5 tips for BEE Managers or Transformation Managers who are looking to improve their BEE status.

1. Have a thick skin 2. Be respectful 3. Persevere 4. Believe 5. Be strategic in your approach higher contributor status which is achieved through understanding their industry and challenges and then developing a solution to address both B-BBEE and their challenges in a sustainable manner.

I have been told by our clients that we interpret the Codes better than most BEE consultants out there. We were intimately involved with the development of the first Codes and the Revised Codes. We have in-depth knowledge of the BEE Act and regulations around the Act which is our competitive advantage.

Where do you see Black Lite in 5 to 10 years?

I would like to see more growth within the team. I believe we will grow remarkably as a group especially as a result of the renewable business energy we have added to the group about 5 years ago.

We are currently at an advanced stage of establishing a R3 billion Thin Film Solar manufacturing project facility in the East London IDZ in the Eastern Cape.

What would you say are your top 3 lessons you have learnt in running your own business?

1. Life is difficult 2. Surround yourself with good people 3. Don’t be shy to ask for help In terms of transformation in South Africa, what are your views? What opportunities come with the new B-BBEE codes?

There has been a mixed bag of successes and failures in terms of B-BBEE. I think the challenge is how companies approach transformation; we need to see a shift in patterns of behaviour amongst large corporates. There are external factors outside of your control like Eskom cutting off electricity when you have no generator. I also think there are significant opportunities if you are a young black person this is the perfect time to be growing your entrepreneurial skills and starting your own business.

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ON A LIGHTER NOTE What do you do for fun? I am a photographer. I think in my next life that will be my new profession. I also love travelling and cooking. My kids (as all kids do) think I can be a contender on master chef. I also play golf (badly)!

What book would you recommend?

I enjoy reading autobiographies of people like Steve Jobs and Richard Branson, Knowing that they went through the same thing I am going through in business inspires me.

Favourite movie and actor? I grew up watching Star Wars and till this day it is still my favourite. I also grew up watching Bruce Lee so you can say he is my favourite Actor.

First month salary? R473.00 when I did my articles, which I still think is exploitation but necessary none the less.

Do you play sports if so which one?

I run, actually went for a run this morning. I’m doing the Two Oceans half marathon which will be my second one this year.

Favourite food? Anything Italian.

Italian food is a firm favourite.

First car and current car? VW City Golf which I think my kids will inherit one day when they are older. Later drove a Volvo S40 and currently driving a Mercedes Benz E300 Hybrid because it’s an environmental friendly vehicle.

Samsung or Apple Phone or other and why? My first phone was a Nokia “brick” and later changed to the Apple iPhone, I’ve been an Apple fan ever since.  Visit www.blacklite.co.za or phone +27 11 447 7651 for more information.

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Volume 1 · 2017 · www.incub8mag.co.za 23

START UPS

IMPORTANT QUESTIONS TO ASK BEFORE JOINING AN

INCUBATOR A

business incubator provides an entrepreneur with conditions aimed at promoting fast and sustainable development of their small business. There are a few key questions an entrepreneur should ask from the outset in order to see whether the incubator would contribute to the profitability and sustainability of the business. Iegshaan Ariefdien, COO of Furniture Technology Centre Trust (Furntech) schools us.

1. What are the entry criteria for joining the incubator? There should be a clear set of criteria that will allow the entrepreneur to qualify to enter into the incubation process. This can include a comprehensive CV, portfolio, business plan framework or idea, and technical skills evaluation when applicable.

2. What are the exit criteria?

The entrepreneur should be made aware of the process for exiting the incubation process. The goals the entrepreneur needs to achieve before s/he can graduate from the incubator, have to be defined.

3. What is the maximum period of incubation? This should usually be based on measurable deliverables and goals, rather than time only. The suggested period for incubation is between 12 and 36 months.

4. What are the phases of incubation and how long is each phase? Incubation models vary from industry to industry but incubation phases are generally the same.

Phases include: pre – incubation phase (average 3 months), application process, incubation phase (2-3 years) and the post – incubation phase (3-5 years).

5. How will the incubator contribute to the small business’s performance?

Specific business development support services, mentoring and coaching, and infrastructure are provided to a specific client to assist them achieve the agreed upon goals and objectives. It is critical that the entrepreneur understand that the incubator is not there to do the work for them, but is an enabling environment, and that the responsibility of building a successful small business lies with the entrepreneur.

6. How will the incubator minimise the small business chance of failure? Weekly and monthly mentoring and coaching sessions are structured in the terms of reference under which the client enters the programme. This is done so that challenges are detected from the onset.

The process also assists with remedial or corrective action early in the process.

7. What payments are required from the small business? Generally, there are two types of fees paid by small businesses; monthly incubation and cost recovery fees.

8. What are the value-added services offered by the incubator? The incubator should stipulate the value-added services that they will offer such as; coaching, technical advisory services, prototyping/ product design etc.

9. What is the unique offering of the incubator and how does it differ from the open market offering? For instance, Furntech’s goals are based on the organization’s proven model of placing equal emphasis on business technology incubation and skills development. The

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model is also based on its flexible combination and integrated approach of vocational training and business development processes, infrastructure, and people.

10. Why should I join an incubator? What is the competitive advantage of the incubator? This is arguably the golden question that the entrepreneur should ask.

Incubation models have 80%+ success while other methods of small business development have a 35% success rate.

This is based on entrepreneurs who were evaluated 3 years after an incubation process.

11. What are the objectives and goals of the incubator? The primary goal of business incubation is to facilitate economic development by improving the entrepreneurial base (of a local area, town, province, country, or sector) through the provision of infrastructure, people and a variety of business support services.

12. What type of incubation model does the incubator have: resident (on-site), virtual or a combination?

• The residency incubation is particularly relevant and useful for startup businesses with no or very little capital and equipment available. Due to the high barrier to entry for woodworking businesses, the resident incubation option within a protected environment can be very attractive.

• Virtual incubation is an off-site incubation for graduates from the incubation programme who cannot afford to purchase all the machines they need or cannot afford the specialist machines which are not used every day. 

Digests

Volume 1 · 2017 · www.incub8mag.co.za 25 Volume 17 • 2016 15

ADVERTORIAL

PROVIDING THE BACKBONE FOR

INNOVATIVE STRATEGIES



MTN

Award winning, 100% black owned B-BBEE consulting, strategy and economic development practice New Generation Mindset (NGM) has earned global recognition through its recent appointment as the first certified EU | BIC (Business and Innovation Centre) in Sub-Saharan Africa.

The company promotes a new mindset towards economic and social innovation, embracing the “act local – think global” mindset, by ensuring South African businesses are globally competitive.

Currently, NGM is running Incubation and Accelerator Programmes with business such as Dimension Data, MTN, Samsung and ESKOM with the ultimate goal of contributing towards true transformation of the local economy. These corporates have partnered with NGM as specialists in the development of entrepreneurs and enterprises and they share how the Incubation and Accelerator Programmes are being implemented.

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MTN has partnered with NGM to develop an innovative Incubation and Acceleration programme, that will significantly contribute to much needed ICT development and transformation in South Africa. Through this programme with NGM, MTN is able to offer a comprehensive range of services to empower enterprises, SMMEs and individuals.

The MTN Incubator programme, run by New Generation Mindset, is designed to empower Black- and Women-owned companies in the ICT sector to develop and become sustainable, through acceleration, business incubation, coaching and mentorship, personal and business development training, market linkage and smart take off.



ESKOM This Incubation and Accelerator Programme addresses the gap in ESKOM’s Supplier Development and Localization plan, aligned to Government’s National Development objectives through programs focused on the five (5) strategic B-BBEE pillars. The intention is to achieve maximum and sustainable Local Economic Development to make a significant contribution towards building a stronger local economy through improved entrepreneurial participation in the local and broader economy, leveraging on Eskom’s and Government’s fiscal spend.

The programmes have a strong focus on women-owned businesses located in the Eastern Cape. The incubation and acceleration initiatives develop, incubate, accelerate and integrate local SMMEs.

ADVERTORIAL



DIMENSION DATA As a responsible South African company, Dimension Data is committed to empowerment and economic development, supporting Broad Based Black Economic Empowerment and the related Codes of good practice including Supplier Development. The objective of the Plessey Supplier Development Programme (SDP) is to support existing and new ICT entrepreneurs with the intention to grow the competitiveness of the Dimension Data Group of companies.

The ICT-centered programme, which is aligned with Government initiatives, runs in all the South African regions where Dimension Data Group Companies have a footprint.

Enhancing skills and enterprise development initiatives, impacting on the full spectrum of the socio-economic and infrastructure investment value chain.



SAMSUNG The Samsung Khulanathi Programme focuses on developing entrepreneurs in the ICT, Engineering and Refrigeration space, with the aim of ensuring that such incubated and accelerated companies can provide services to Samsung, and thereby grow their businesses.

Samsung has as a result identified enterprises aligned to its core business, enterprises that it will develop and support, in partnership with NGM. Through further partnership with the Samsung Academy, NGM is developing and implementing youth training programmes to ensure a healthy pipeline in the field of entrepreneurship. 

Volume 1 · 2017 · www.incub8mag.co.za 27

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Boys & Girls Clubs of South Africa opens new Teen Centre in Soweto Tupperware South Africa, which celebrates its 50th anniversary this year, is a firm believer in supporting communities through focused corporate social investment.

Tupperware has been supporting their major initiative, the Boys & Girls Clubs of South Africa (BGCSA), since its inception in 2011.

BGCSA provides a safe space for young people aged 6 to 18 in those traditionally unsupervised hours after-school. Programmes focus on the holistic development of every child with a core focus on academic success. The Club builds on the Boys & Girls Clubs of America model and utilizes their endorsement and technical advice.

In South Africa today, 60 percent of the 18.5 million children grow up in poverty, many of them surrounded by extreme unemployment; where alcoholism and drug addiction, violence and crime; hunger and disease are ever-present. Hope and opportunity are two commodities that are difficult to find.

On July 1st, BGCSA hosted a reception for the opening of their new Teen Centre, which is the second facility completed at its flagship clubhouse in Pimville Zone 2, Soweto.

A spokesperson for BGCSA said that, “What was once a small and basic facility in a dangerous park is now a thriving campus with two Clubhouses, an NBA basketball court, soccer fields, a garden, and daily programming that focuses on education, health and life skills, character and leadership, sports and fitness, and arts and culture.”

At this event, Tupperware announced the winners of a collaborative effort between Club Members and their Sandwich Keeper product. BGCSA put on an art contest where Club Members were asked to illustrate “What are your dreams?” Two Club Members will now have their artwork printed on Tupperware Sandwich Keepers, which Tupperware will make available in November 2014 for sale. For every Sandwich Keeper Set sold, BGCSA will receive R5 from Tupperware.

For more information on BGCSA, please visit www.bgcsa.org or to get involved, please contact the BGCSA team at info@bgcsa.org.

BUSINESS PLANS

REASONS FUNDERS TOSS AWAY BUSINESS PLANS W

orking in the space of entrepreneurship and small businesses is fascinating. One comes across many entrepreneurs with ideas and dreams that work out so perfectly in their head but never see the light of day because of a general lack of resolve to execute the idea to its logical end.

In order to convince those with deep pockets for support, entrepreneurs are faced with drafting best business plans and to most this is a major challenge. Recently, a fired up “entrepreneur wanna be” contacted me for advice on his business plan and also requested assistance with linking him to potential funders.

After the meeting, I asked a friend of mine in the industry to cast an eye on the business plan and let me know what he thought. His feedback was that there were at least four issues in the presentation that could have been avoided.

These needed to be rectified before we could discuss the content of the plan itself. Some of the issues were:

1. POOR LOOK AND FEEL • Many entrepreneurs take the look and feel of their business plan presentation for granted. Unfortunately, it is true that the first impression lasts longer and even so in the world of business.

• Business people want to be associated with excellence and quite often before an entrepreneur has a chance to present his concept face to face, it is their document that does the talking on their behalf.

30 www.incub8mag.co.za · Volume 1 · 2017

• The poor the look and feel, the more chances you have to receive no response further than an acknowledgement of your email.

2. SUMMARY NOT INVITING • People whose work is to read business plans, over time develop the art of knowing which one to read through for more information.

• A decision to read the entire business plan is made on the basis of the quality of the summary the entrepreneur has put together.

The way many decide on what movies to watch is the same way funders decide on what plan to read; it is often on the basis of the 60 seconds’ promo advert, in this case, the summary.

• As an entrepreneur putting a business plan together, make sure that your summary is compelling and inviting.

3. SPELLING MISTAKES • One typo here or there might not be too annoying to others but very few people can handle a plethora of grammatical errors and badly constructed sentences.

• The typos communicate a lack of thoroughness and attention to detail thus cast doubt for consideration.

• While reading your business plan, the potential funder might be thinking about why they should risk their money on a lazy person. Rather let that review be given to another person’s business plan and not yours.

BUSINESS PLANS

The one thing that irritates the funders is them identifying obvious loopholes that the entrepreneur should have addressed earlier on in their business plan. It is a serious turnoff because it wastes their valuable time.

4. MISSING OBVIOUS AND LOGICAL RATIONALE • Funders skim through the plans at a high level without applying themselves too much.

You can say it is like a bed time reading assuming that the reviewer has nothing more interesting to read.

• The one thing that irritates funders is them identifying obvious loopholes that the entrepreneur should have addressed earlier on in their business plan. It is a serious turnoff because it wastes their valuable time.

• Every time spent on a terribly crafted business plan is an opportunity cost to the funder. Before submitting your business plan, ask someone to critic it and check for obvious and logical rationale that might not have been addressed.

• This will help you not to spoil your reviewer’s bedtime reading and encourage them to put your business plan on his or her list of priorities.

Champ Thekiso CA(SA) Founder and Executive Director of Thekvest Group (Pty) Ltd. Thekvest focuses on investments and advisory services to foster economic inclusion.

In the next articles, I will be sharing thoughts on what you need, to put a winning business plan together. In the meantime, make sure that your business plan is presentable, exude excellence and is devoid of avoidable errors.  Volume 1 · 2017 · www.incub8mag.co.za 31

BIZTECH

APPS THAT I USE Bongani Gosa NOTES APP ON IPHONE All iPhones come with a built-in Notes app. This is a great application for business that also syncs to iCloud so you access it from multiple Apple devices. The app allows users to create checklists in the notes. As you create a list, you are able to easily turn it into an interactive checklist with just a few taps.

Once this is achieved, it becomes simple to check off items as you complete them at own will. This is great for every business man/woman ‘on the go’ because it increases efficiency. Using notes, one can also add photos, maps or a URL directly into a note and be able to view it formatted in-line. Another great feature is the ability to use your finger to sketch your ideas down.

This is great because it means that you never have to worry about forgetting brilliant ideas that could grow your business.

I mainly use Notes on iPhone to jot down notes throughout the day, meaning, no fresh idea I may get during the day goes to waste.

GOOGLE HANGOUTS Google Hangouts, a communication platform developed by Google, is another convenient application used at BWD Advertising. The app includes instant messaging, video chat, SMS and VOIP features, which makes communication and collaboration between team members seamless. Google Hangouts replaced three 32 www.incub8mag.co.za · Volume 1 · 2017

messaging products that Google had previously implemented concurrently within its services. The app is effective in both one-on-one implementation and in a group. Furthermore, Google Hangouts has mobile apps for IOS and Android devices, which means it is ideal for mobility and a great tool for handling communication demands of corporate environments with ease.

I have found that, using Google Hangouts, colleagues are more comfortable to share information as they are aware that is secured in accordance with contemporary protection standards. The platform is also great in regards to cost saving. It allows for costeffective collaboration for enterprise customers; entrepreneurs are able to interact with their business associate and clients/customers via HD video, voice or text. This also means that you save on time and expenses as you do not have to travel great distances for meetings and conferences.

BIZTECH

SAGE ONE ACCOUNTING Sage One is cloud-based accounting software by Pastel that gives you all the freedom to run your business from anywhere, at any time. With Sage One, you are able to set-up your account online and start making the most of the mechanics from the get-go, making it ideal for SMEs (Small and Medium Enterprises). I mainly use the platform to create quotations and issue invoices. You are able to have a clear overview of the state (health) of your business through the attractive dashboard that displays graphs and charts.

The accounting software has easy-to-find features, allows for quotes and estimates generation, which can then be converted to invoices.

Since we started using Sage One, we have found that we were able to save time and a great-deal of effort as financial statements are automatically produced. We have found the software to be very effective in the running of the overall business as it keeps track of all aspects of the business. As a business owner, you are able to collaborate with your account, team members and other business associates.

GOOGLE DRIVE Google Drive is more than just a cloud-based storage and synchronising service; it combines a complete set of office tools with cloud storage. Google Drive allows users to create, edit, store, and collaborate on documents. This makes it ideal for teamwork or working on solo projects. Google offers 15GB free storage for all Drive users, making it the perfect choice for start-ups and small businesses. As your business, and need for more storage grows, Google Drive offers a number of packages for upgrading storage capacity.

We are in a business that requires participation of multiple individuals, working on a single project, in order to achieve the best outcome. We have found Google Drive to be most effective in the area of teamwork and collaboration. It allows you to create as many documents as you need and work on them in real time with other users sharing the file. All the activity is saved automatically and accessing previous versions of a particular document is very simple. You can also use the comment feature to communicate directly with everyone that is working on the document. In our business (at BWD Advertising) it also means that designers can save editable files of their artwork on Google Drive and another designer can easily access the file and take over if necessary. Google Drive has an advanced file and folder sharing permission capabilities, which means you have more control on who can view or edit your files.

It is the best business application for small and medium companies overall. All business processes and activities can be organised on a single platform. In this way, the organisation’s operations are streamlined and the daily processes move faster.

GADGETS THAT I USE: APPLE MACBOOK

Undoubtedly, the number one gadget I use in my daily business life is my MacBook Pro laptop; it runs my life.

Apple’s MacBook is ideal for business in a number of aspects.

The machines come built with superior hardware and software and is also designed to work seamlessly with mobile devices (i.e. iPhone and iPad). This, combined with the impressive unibody design that is thin and light, means that it is the supreme choice for handling work on the go. For increased efficiency, Mac notebooks come equipped with multicore Intel processors and fast flash storage, which means it wakes from sleep instantly and is ready to be put to work.

We made the decision to use Mac as the choice computer platform throughout our business. We recognise the value it has in increasing productivity amongst colleagues. Our team has produced incredible results using Mac. I am able to make quick image edits in Photoshop, on my MacBook.

We have found that the simplicity of the macOS software means that workers are able to quickly get familiarised with using it and discover more efficient ways of completing tasks. The macOS also comes with a number of apps required for work. I have personally found my MacBook to be quite practical in helping me prepare for presentations and talks also. I use the camera on the MacBook to record myself during the rehearsal phase of my preparation and then I playback the recording to check the quality of my speech delivery.  Volume 1 · 2017 · www.incub8mag.co.za 33

LEGAL CORNER

HOW TO MAKE YOUR IP ASSETS LEGALLY YOURS A

lthough Intellectual property is a rather complex matter, there is no doubt that SMMEs need to know about it to protect themselves as well as for compliance and avoid infringements of other people’s intellectual property.

What is Intellectual Property?

Intellectual Property is the product of independent thought. It protects the products of the intellect which are capable of commercial exploitation. It includes patents, registered designs, copyright, trademarks, and know-how.

What is a Patent?

It is an agreement between an inventor and the government of a country, in which the inventor agrees to publish his or her invention, and in return the government agrees to give the inventor exclusivity on the use of the invention for a limited time. It protects ideas in industrially realisable form. A patent can protect a new product, a new process or a new use of a product.

What are the requirements?

It must be novel; inventive; useful; and suitable subject matter. In short, anything that solves a problem in a new nonobvious manner and is not specifically excluded by law is patentable.

What can be patented?

Section 25 of the Patent Act, [Act 57 of 1978] defines the scope of patentable inventions in negative by specifying what cannot be patented. A patent may, subject to the provisions of this section, be granted for any invention which involves an inventive step and which is capable of being used or applied in trade and industry or agriculture. These include inventions such as appliances, mechanical devices and so on.

Effect of Patent Registration The patentee has the right to exclude others from performing the following acts: making, using, and exercising, disposing of (selling), offering to dispose of (advertising); and importing. However, patents are territorial; to stop someone from making use of your invention in

34 www.incub8mag.co.za · Volume 1 · 2017

a particular country you must obtain a patent in that country.

In South Africa, a patent can last up to 20 years, if it is renewed annually before the expiration of the third year from the date of filing. The patent expires after 20 years from the date of application.

What are Registered Designs?

Designs protect the outward appearance of industrially produced articles and are governed by the Designs Act No 195 of 1993.

What are the requirements?

There are 2 types of designs which can be registered namely: • Aesthetic design – it must be new and original.

• Functional design – new and not commonplace.

The article must be intended to be multiplied by an industrial process e.g. an artistic work or sculpture, only one of which is made, cannot be protected by way of a registered design.

LEGAL CORNER

What is the effect of registered design protection?

Registration grants the proprietor a monopoly which prevents others from: making; importing; using; and selling an article including the design or a design not substantially different thereto.

The Lifespan of a Design Protection is afforded to aesthetic designs for one period of 15 years, and to functional designs for one period 10 years. Registered designs must be renewed annually before the expiration of the third year, as from the date of lodgement.

What is a Trade Mark?

It is a badge of origin (brand name, slogan or logo) and it serves to identify a product and distinguishes it from those of competitors.

Registrable Trade Marks • A trade mark is registrable if it serves the purpose of distinguishing the goods/ services of one trader from those of another trader; • Has not become customary in your field of trade; • It does not represent protected emblems such as the national flag or a depiction of a national monument; • It is not offensive or contrary to the law or good morals or deceptive by nature or way of use and there are no earlier conflicting rights.

What is the effect of registered trade mark?

When a trade mark has been registered, nobody else can use this trade mark, or one that is

confusingly similar. A trade mark can only be protected as such and defended under the Trade Marks Act, 1993 (Act 194 of 1993) if it is registered. Unregistered trade mark may be defended in terms of common law.

A registered trade mark can be protected forever, provided it is renewed every ten (10) years upon payment of the prescribed renewal fee.

What is Copyright?

It is an exclusive right granted by law for a limited period to an author, designer, etc. for his/her original work. It protects copyrighted works, such as artistic or literary works. It includes literary works, musical works, artistic works, cinematograph films, sound recordings, broadcasts, programme-carrying signals, published editions, computer programs etc.

Unlike other forms of intellectual property, copyright does not need to be registered, except for cinematograph films.

Intellectual Property infringement and Remedies A successful claimant can be awarded a range of remedies, including: an interdict preventing further acts of infringement; damages; delivery up of infringing goods; and costs.

How to protect your Intellectual Property?

• Sign Confidentiality/ Non-Disclosure agreements with employees and potential business partners.

• Have an Intellectual Property Policy.

• Keep an Intellectual Property register. 

WHAT IS THE LIFESPAN OF COPYRIGHT?

Yolelwa Sikunyana

A patent may, subject to the provisions of this section, be granted for any invention which involves an inventive step and which is capable of being used or applied in trade and industry or agriculture.

These include inventions such as appliances, mechanical devices and so on.

WANT TO KNOW MORE?

The copyright of literacy works lasts for 50 years after death of the author.

The copyright of computer programs lasts for 50 years after the first copies were made available to the public.

For sound recordings, the copyright lasts for 50 years from the day the work was first broadcast.

You can contact us on info@sikunyanainc.co.za Telephone: 0110457769 Cell: 0725190395 Website www. sikunyanainc.co.za to download helpful documents at www. smmetoolkit.co.za

For films, 50 years from the date the film was shown.

Volume 1 · 2017 · www.incub8mag.co.za 35

FUNDING

WHAT YOU SHOULD KNOW ABOUT Small Enterprise Finance Agency Between 2012 and 2015, SEFA has approved business plans up to the value of 2.5 billion Rands and in the process, assisted 115 000 businesses and cooperatives, as well as created over 234 000 jobs.

Don Mashele, Head of Regions – South at sefa discusses the organisation’s activities in detail.

P

Please tell us about your background and how you came to work for sefa?

I have been in the space of SMME development for about twenty years now. When I graduated my goal was to do sales and marketing. However the first job that I landed was with the then Small Business Development Corporation (now called Business Partners). When I left my first job I then joined one of the commercial banks as an in-house sales consultant. I didn’t enjoy the job that I was doing and was transferred to the SMME unit within the same bank – doing exactly what I did on my first job. I left the bank and joined an NGO that was in the SMME financing space and later worked for one of the Provincial Development Corporations before joining Khula Enterprise Finance Limited which was merged with the South African Micro Apex Fund (samaf) to form sefa.

36 www.incub8mag.co.za · Volume 1 · 2017

Don Mashele

FUNDING

There is at times lack of proper business planning by the entrepreneurs. The business plans that are presented to SEFA sometimes lack detail in terms of strategy, management, operations and finance.

People use business plans to raise funding and when it is time to actually run the ship, the business plan does not become the key factor in driving the venture forward.

Do you charge interest on your loans facilities?

What typical sectors do you fund and why?

Yes, we do price for the risk that we take however we also provide interest discounts to businesses that provide some level of developmental impact (e.g. create jobs, businesses owned and managed by people with disabilities, youth owned and managed businesses, businesses located in the rural areas).

sefa is not sector specific – we provide funding across all sectors of the economy. We do have exclusions which are listed on our website. We are heavily invested in the construction sector, primarily due to the Government Infrastructure Programme (which is an initiative to provide access to markets to SMMEs and Cooperatives).

Please take us through the process of applying for finance through sefa. sefa has a number of regional offices located in all nine provinces. In addition to sefa’s regional offices, applicants can also approach any of sefa’s colocation centres (list of the colocation centres can be viewed at www.sefa.org.za).

What would you say is the number one cause for small business failures?

There is lack of proper business planning by the entrepreneurs. The business plans that are presented to sefa lack strategy in terms of management, operations and finance. People use business plans to raise funding and when it is time to actually run the ship, the business plan does not become the key factor in driving the venture forward.

What are some of the challenges sefa encounters when processing applications from entrepreneurs?

The main challenge which invariably affects our response (turnaround) times is the incomplete documentation received from our potential clients. In terms of legislation there are some documents that are mandatory for compliance purposes but some entrepreneurs do not submit all their documents at once.

The other challenge we face is the submission of business ideas that are not fully researched by the applicants. The business idea has to be well researched in terms of sustainability within the market for us to consider funding it.

Within your services, do you have grants that you make available to entrepreneurs?

We have a mentorship grant that we offer when we finance a business. When we identify certain risks in a business, we pay for and allocate a mentor to provide guidance.

Are your funding interventions targeted solely at black businesses?

Not at all. We address all races but we do however have priority for black entrepreneurs.

In regards to opportunities, which sector do you think SMMEs are still desperately needed?

What I usually say is that entrepreneurs do not talk going out to look for opportunities. What sustains an entrepreneur is the ability to identify a problem, finding a sustainable solution to that problem and commercializing it. Instead of looking for opportunities, look at what inconveniences you in your life or community and develop a sustainable solution that you can commercialise. 

Volume 1 · 2017 · www.incub8mag.co.za 37

ESD PREP

POINTS SMEs MUST CONSIDER BEFORE JOINING AN ESD PROGRAM Siya Bacela

T

he new revised BBBEE Codes of Good Practise from the Department of Trade and Industry have given birth to a priority element, Enterprise and Supplier Development (ESD). ESD is a combination of Preferential Procurement, Supplier Diversity, Supplier Development and Enterprise Development programs to service business needs. There are vital questions one needs to ask when looking to enter into an ESD program.

1. What is the criteria to be a beneficiary? SMMEs that would be considered for the program should at least be 30% black women owned or 51% black owned with an annual turnover below R50 million.

2. Why is the sponsoring company doing the ESD program? This is because the ESD program contributes points to the measured entity’s revised BBBEE codes of practice. Its also an opportunity to diversify their supply chain by developing black majority owned suppliers.

3. What kind of interventions will the ESD program provide for the beneficiary? The major support interventions from ESD programs are nonfinancial business developments such as mentoring, coaching and advice. However, it’s important to mention that loan funding is also available from the ESD funds.

4. What are the prospects for a beneficiary to be a new service provider to the sponsoring company or an increase in orders if a current supplier?

These support interventions are geared towards enabling business growth for the beneficiaries beyond the sponsoring company and thus growth does not

automatically mean a new contract or increased orders from the sponsoring company and this must be clear upfront with the beneficiary at the start of the program. However, some programs are focused on empowering the beneficiaries through increased orders from the sponsor company.

5. What must the sponsor company consider before bringing ESD beneficiaries on board? Its important that the sponsoring company identify beneficiaries that would add value to their supply chain and more importantly to manage the expectations.

6. How long is an ESD program?

Focused coaching/mentoring sessions are dedicated for a period of 6 to 24 months to unlock growth opportunities and get the beneficiary business-ready for more opportunities within the sponsoring company or in the target market.

7. Is the beneficiary allowed to exit before the program is completed? Yes by mutual agreement as in any business relationship. However, the SMME must show commitment to the program through dedication to the required man hours for intervention and engagement.

8. Is the beneficiary allowed to be part of another ESD program or is there an exclusivity clause? SMMEs are part of the ESD programs to benefit their growth, so in principle they are free to be part of various sponsored programs but its important that there is an open communication to avoid duplicate interventions. An SMME must choose a program that is in alignment with their business growth objectives.

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The major support intervention from ESD programs is non-financial business development such as mentoring/coaching/ advisory, however it’s important to mention that lean funding is also available from these ESD funds.

9. Are there any monetary contributions expected from the beneficiary in order to join the ESD program? Most programs only require that the beneficiary commits to allocate man hours for the proposed support interventions as their contribution.

No monetary contribution is expected from them.

10. What is the expected time requirement from the beneficiary to be part of the program? Typical average monthly hours required for business support are 15 to 20 hours and discussed upfront and the project activities defined in the approved project plan.

11. Is there funding support through the ESD program and if yes, how is it different from traditional funders such as banks? There is access to funding it comes with strict terms and conditions.

Perhaps this is one aspect that needs to be addressed as the sponsoring company gives the ESD funds as grant contribution on annual basis. Thus the implementing company should be an enabler that supports SMMEs and not be another banking institution. 

INNOVATION

3

PROMISING BUSINESSES AT RIVERSANDS

Riversands Incubation Hub is a business incubator where potential meets opportunity.

Entrepreneurs have recognized the growth opportunities that lie in the incubator and have since set up camp in the hub. Some of these entrepreneurs have a story to tell and Masego Mohajane, Simnikiwe Nxele and Andile Fulane share theirs.

Masego Mohajane

She is grateful that she didn’t relent because her business is now thriving and she has built a name for herself in a male dominated industry.

M-SQUARED MEDICAL M-Squared Medical is a medical engineering company which sources, distributes, refurbishes, sells, maintains and leases various brands of ultrasound equipment. Although ultrasound equipment is the company’s speciality, the business also supplies and maintains a wider range of medical equipment including consumables and offers applications and technical training on equipment. It was formed by Masego Mohajane who has been in the medical engineering field for 15 years. Mohajane has worked with established companies such as the Netcare Hospital Group as a clinical engineer and Tecmed Africa as a technical representative for the Computed Tomography (CT), Magnetic Resonance Imaging (MRI) and ultrasound departments.

Following the constant feeling that she had reached her career ceiling as a clinical engineer, Mohajane left her highly-paying job with perks and ventured into entrepreneurship in 2014 to revive the company she had registered in 2010.

“As if dealing with the pressures of starting a new business and the uncertainty of entrepreneurship wasn’t enough, I had to face naysayers and competitors who were forcing me to close my business down as they said I was encroaching on their space. This became too much to bear at times, but I persevered and was even more determined to face my fears and pursue my business journey”, she says.

Today, she is grateful that she didn’t relent because her business is now thriving and she has built a name for herself in a male dominated industry. She and her staff recently relocated offices from her garage to Riversands Incubation Hub – a large scale business incubator.

While the businesswoman admits that there are a number of players in her field, she saw

40 www.incub8mag.co.za · Volume 1 · 2017

an opportunity in the market to target medical establishments that don’t have surplus budgets to spend on acquiring and maintaining medical equipment and founded the company. So far, Mohajane’s business has made great strides.

Just recently, Mohajane was among one of 17 entrepreneurs who were chosen to go to the San Francisco Bay area for a week as part of the Discovery Entrepreneurs Medtech Silicon Valley Programme.

HERMES COMMUNICATIONS SOLUTIONS  Some business owners who’ve been successful say they were born to be entrepreneurs or that they knew early in life that they would start a business.

However, this isn’t the case with Simnikiwe Nxele, owner and founder of Hermes Communications Solutions popularly known as HM Media – a vibrant communications company that buys media space on behalf of its clients.

After graduating in Information Systems and Financial Accounting, curious and experimental 23-year-old Nxele established her business.

“My passion for entrepreneurship has grown over time,” she says. Nxele adds, “The feeling of being a business owner doesn’t come close to anything I would have experienced working in the corporate environment. I’ve been exposed to how things work in the business world and I’m seeing the rewards of being a business owner.”

Simni (as she is known by her peers) describes herself as the driving force behind the operational success of HM Media.

Simnikiwe Nxele

If people fail in their finances, they often feel that they are failing in their lives as a whole and the restoration of this area has an impact on all other aspects including family and work.

The feeling of being a business owner doesn’t come close to anything I would have experienced working in the corporate environment.

Andile Fulane

INNOVATION

She says she ensures that the business strategies and financial forecasts are geared towards investments that stimulate growth. Nxele has a team of five people based in both Johannesburg and Cape Town to help her run the business. She says quality service and solid relationships are what sets them apart from their competitors. “We’re always in touch with our clients; we strive for first-

failing in their lives as a whole and the restoration of this area has an impact on all other aspects including family and work.”

Fulane further explains that his

class delivery and always meet their expectations,” she says.

Nxele’s HM Media has become a force to be reckoned with in only the short period that it has existed. SA Post Office, the Parliament of South Africa, Medshield, various municipalities and TVET Colleges are among its list of clients.

While Nxele and her team have achieved considerable success, they aren’t planning on slowing down. “Ultimately, I would like the company to grow into a billion-rand enterprise, with different divisions and an expanded footprint across the SADC region,” Nxele says.

The company moved into Riversands Incubation Hub recently and although it specializes in buying print media space for its clients, its expertise has expanded into HR services such as placement of careers adverts, handling of responses from applicants, placements of candidates and headhunting.

Hermes is derived from the Greek god, son of Zeus who was considered a messenger of the gods. “Being master communicators is something I wanted the company to always strive to achieve, hence the name Hermes. We always want to help our clients reach their audience,” she explains.

decision to become an entrepreneur was driven by his passion and vision to give ordinary South Africans the dignity of seeing the fruits of their labour by knowing how to manage money better.

The entrepreneur from Sebokeng, Gauteng says he has been independent from an early age and as a result, working in the corporate sector in a systematic environment was difficult. “From the age of eight, until I went to university, I started selling sweets, then moved to vegetables and later clothes to the extent that I was able to raise registration fees for university to study my BCom. For me, entrepreneurship was the most natural thing to do, coming from a background where my parents ran small informal businesses while I was growing up. I also had dreams which I realised that an eight to five job couldn’t satisfy.

“We have unstoppable adrenalin to serve people because we love what we do. We don’t consciously decide to go the extra mile with each person we assist, but our passion and compassion take us there. We experience joy when we help a breadwinner recover from debt and see justice being served after an encounter with a loan shark who has taken advantage of unsuspecting consumers.

The sense of pride and achievement is extremely motivating,” says the business partner.

Fulane worked for reputable companies in in the financial services sector before establishing SOP. He credits his strong faith as something that has helped him persevere through the tough times. He believes the company name ‘Seed of Prosperity’ was given

by God after he realised that the business is also a calling in his life “to help people and businesses that we serve to identify, nurture and grow the seed of wealth God has given us all.” 

SEED OF PROSPERITY (SOP)  Andile Fulane and Motsamai Sefadi founded Seed of Prosperity (SOP) – a financial wellness company in 2009. The duo’s determination to empower people with the tools, counsel and education to rediscover themselves as individuals with enough will, wisdom and ability to make critical financial decisions, led to the founding of SOP. Speaking on the partner’s behalf, Fulane narrates that “The decision to make money, spend it and create wealth involve the whole person. If people fail in their finances, they often feel that they are

Volume 1 · 2017 · www.incub8mag.co.za 41

ENTREPRENEURSHIP

ENTREPREUNERS DOING IT FOR THEMSELVES Q

uite often millennials are regarded as naïve and full of entitlement or just down right lazy. This is a view that is shared by many including some parents and employers. While this may be a popular belief it is not the case with this trio of young entrepreneurs who have vowed in the midst of adversity to make a name for themselves in the business arena.

The three are Neo Sibisi, a 3rd-year entrepreneurship student at the University of Johannesburg (UJ), Siphiwe Ntombela, a stock controller at a restaurant franchise and Sipho Ntsele, an apprentice at a construction company.

These are partners at Khabazela Countrywide Projects, a construction company dealing with projects in building, renovations, maintenance and consultancy.

The group identified an opportunity in an industry with low market penetration for young business people. “We all know that as a

42 www.incub8mag.co.za · Volume 1 · 2017

developing country we do not have a lot of young people pursuing civil engineering studies or entering the construction industry,” said Ntombela, who’s responsible for communication in the company.

Countrywide was conceptualised with the aim of being a youth-owned and black-owned company empowering young people through skills transfer.

According to Neo Sibisi who is responsible for marketing the company, their competitive advantage comes in the form of young, vibrant and skilled employees in their workforce. “These young people are well equipped with the necessary skills to produce quality work,” she said.

The company believes in creativity and innovation. This plays an important role in ensuring they rise above their competitors in the cut-throat construction industry. Building and growing the company hasn’t been without its fair share of hiccups and has certainly not been

ENTREPRENEURSIP

a ride in the park for the young entrepreneurs.

Compliance issues have served as one of the stumbling blocks in their journey where they were prevented from carrying out some work as a result of not having the right documentation to bid for certain projects. Another challenge they have faced is being relatively unknown by a lot of suppliers and this counts against them when negotiating the cost of material.

Khabazela currently employs 10 people and it is the company’s viewpoint that employees should play an active role in the company’s bid to reach new heights. “We want our staff members to be involved when developing strategic objectives which ensure we achieve our goals,” says Sibisi.

It is also the company’s belief that mixing business with pleasure while also sharing their ideas with the world could pose a great

threat to their business and its ability to reach new frontiers.

The Khabazela team mentioned dedication, the right skills and continuously working towards their pursuit of excellence-as contributing factors to their success. “We conduct surveys to ensure our relevance and develop a comprehensive marketing strategy in order to retain our customers and get new business, she added” The partners would like to see Khabazela Countrywide Projects become the main contractor in projects and be regarded as a reliable company delivering quality work beyond their clients’ expectations.

Their advice for fellow young entrepreneurs is never to be afraid to try something new, work hard to gain skills, be dedicated and professional at all times. 

The group identified an opportunity in an industry with low market penetration for young business people.

Transform SA TV on YouTube & Community TV Stations

Volume 1 · 2017 · www.incub8mag.co.za 43 EMPOWERING VISION

CROWDFUNDING

ALL YOU NEED TO KNOW ABOUT

CROWDFUNDING “Crowd Funding?”

“What’s that?”

“How does it work?”

“Err why would someone want to do that?”

T

hese are some of the responses Sasha Benjiman, an intern at Thundafund, generally receives when he talks to South Africans about crowdfunding.

What then is Crowdfunding and what does it entail?

Crowdfunding is the practice of funding a project by raising small amounts of money from many people. It entails hard work and diligence. It requires constant social media presence, networking and getting your campaign out to the world.

It starts with a really great product/ service and following (honest chocolate; cult following, fantastic product ethical sourcing SA artists on packaging). There needs to be a high demand for your brand. Rewards need to meet these demands, they need to offer an excellent incentive for backers to pledge (early product, discounted product, experience, limited edition).

44 www.incub8mag.co.za · Volume 1 · 2017

What procedure can one follow when fundraising through crowdfunding?

You should start by sending personalized emails to everyone that you’ve done business with, fans and other stakeholders.

Be consistent with social media posting regarding the campaign. This should not only be done on the brands page but on your personal page as well. Inform friends and family in person, explaining to them what the campaign is all about and the areas where you are seeking their support.

What makes crowdfunding different from other traditional forms of lending?

With crowdfunding, funders do not expect you to return the funds. Instead of lending money to a project, they are funding out of their kindness, knowing that they will receive a reward for their pledge.

What risks are involved in crowdfunding?

There are no financial risks apart from the money one spends on the campaign video,

CROWDFUNDING

With crowdfunding, funders do not expect you to return the funds. Instead of lending money to a project, they are funding out of their kindness, knowing that they will receive a reward for their pledge. graphics and online marketing. However, if you raise zero rands after the campaign duration your brand’s credibility could be affected. Raising R0 looks like no one is interested in your brand and/or you haven’t put any effort in it.

What precautions can an innovator take when they do not wish for their ideas to be poached?

Innovations need to have Intellectual Property rights attached to them. If one has no legal protection for their product or service, they shouldn’t start a crowdfunding campaign.

What are most people likely to invest in, or rather the popular trends in crowdfunding?

Tech products that are either novel and innovative (Fidget Cube) or already have a strong cult following (Many video games).

Innovative products that people would want to buy if they were currently for sale (Gocycle, Tile) are popular.

In comparison to the USA and UK how is SA doing in crowdfunding?

SA is very weak in comparison to the USA and UK in terms of crowdfunding.

Innovation and creation isn’t being showcased on crowdfunding platforms.

Products or services wanted by people who have no direct association with the brand, is almost nonexistent. (Honest Chocolate and Lorraine Loots were back in 2014). Crowdfunding isn’t viewed as a great platform for alternative funding, brand awareness and market feasibility.

ABOUT SASHA BENJIMAN A recent graduate in Brand Building and Management at Vega, Sasha has taken on the role of Thundafund Social Media Intern.

His hard work and determination have led to an academic scholarship for all three of his years at Vega, School of Branding.

At Thundafund he has helped rework the Social Media Toolkit, build social media strategies and created video and image content for the brand. As a young South African he foresees crowdfunding as a funding solution for young entrepreneurs ready to take on the challenges of the South African market place.

What are your crowdfunding prospects in the next 5- 10 years?

I would like to see the platform considered as a legitimate way to fund a product or service. I foresee a platform full of independent creators using crowdfunding to keep their projects alive without the interferences from large studios. 

Volume 1 · 2017 · www.incub8mag.co.za 45

DIRECTORY

Incubation Centres Directory Shanduka black Umbrellas

Egolibio lifesciences

SEARCH

Lepharo

 27(0)105905555

 27(0)128440724

 27(0)113633920

www.shandukablackumbrellas.org

www.egolibio.co.za

www.lepharo.co.za

Aurik

Branson Centre

Seda Automotive Technology Centre

 27(0)114475575

 27(0)114030622

 27(0)125645592

www.aurik.co.za

www.bransoncentre.co.za

www.seda.org.za

Chemin

Seda Essential Oils Business Incubator (SEOBI)  27(0)128083061 www.seobi.co.za

Raizcorp

 27(0)112622710

 27(0)105940641

www.raizcorp.com

www.chemin.co.za

Awethu Project

Seda construction incubator(SCI)

SoftstartBTI(SBTI)

 27(0)110241606

 27(0)414862595

 27(0)116954800

www.awethuproject.co.za

www.seci.org.za

www.softstartbti.co.za

SCI E.L

South African Manufacturing Technology Demonstration Centre  27(0)877401000 www.smtdc.co.za

Ifa Lethu Foundation

 27(0)315640743

 27(0)873730801

www.ifalethu.org.za

www.seci.org.za

Agri Mega

SEDA Alfred Nzo Agro Manufacturing incubator(SANAMI)  27(0)872851555 www.sanami.co.za

 27(0)284242890

www.agrimega.co.za Furntech

Seda Nelson Mandela Bay CT

Downstream Aluminium Centre for Technology  27(0)357971500 www.dact.co.za InvoTech

 27(0)215100088

 27(0)414098600

 27(0)312014788

www.furntech.org.za

www.snii.co.za

www.invotech.co.za

Rlabs

Zenzele Technology Demostration Centre  27(0)117094674 www.seda.org.za

 27(0)216991453

www.rlabs.org Mobile Agricultural Skills Development and Training  27(0)137532470 www.masdt.co.za

Seda Agriculture&Mining Tooling Incubator(SAMTI)  27(0)51 5073592 www.cut.ac.za

Jozi Hub  27(0)824513654 www.jozihub.co.za

Bakery and food Technology Incubator of SA  27(0)128031222 www.bicsa.co.za

The innovation hub

Ekurhuleni jewellery Academy

SmartXchange

 27(0)313071988

www.smartchange.co.za Mapfura Makhura Incubator (MMI)

 27(0)124411000

www.seda.org.za Timbali

 27(0)137524247

www.timbali.co.za Seda Platinum Incubator

 27(0)128440000

 27(0)214659966

 27(0)145970736

www.theinnovationhub.com

www.designindaba.com

www.spi.org.za

Global jewellery Academy

Seda Atlantis Renewable Business Incubator (SAREBI)  27(0)215772719 www.serebi.co.za

Medo

 27(0)213000500

 27(0)118572854

www.medo.site

www.globaljewelleryacademy.co.za

46 www.incub8mag.co.za · Volume 1 · 2017

Volume 1 · 2017 · www.incub8mag.co.za 47

DIRECTORY

Business Development Agencies

SEARCH

Business Partners Limited  011 713 6600 www.businesspartners.co.za

National Empowerment Fund  011 305 8000 www.nefcorp.co.za

Central Energy Fund  010 201 4700 www.cef.co.za

National Youth Development Agency: National Youth Fund  011 834 7660 www.nyda.gov.za

Development Bank of Southern Africa  011 313 3911 www.dbsa.org

North West Development Corporation  017 381 3666 www.nwdc.co.za

Eastern Cape Development Corporation  043 704 5600 www.ecdc.co.za

Northern Cape Economic Development Agency  053 833 1503 www.nceda.co.za

Eastern Cape Rural Development Agency  043 604 7000 www.ecrda.co.za

SAB Kick Start (Central region)  051 406 8414 www.sabkickstart.net

Free State Development Corporation 051 400 0800/10 www.fdc.co.za

Sasfin Private Equity 011 809 7500 www.sasfin.com

Gauteng Enterprise Propeller  011 085 2001 www.gep.co.za

Small Business Growth Trust Fund  011 421 2939 www.sisonkefund.co.za

Gauteng Growth and Development Agency  011 085 2321 www.ggda.co.za

Small Enterprise Development Agency  012 441 1000 www.seda.org.za

Identity Development Fund (IDF)  011 772 7900/10 www.idf.co.za

Small Enterprise Finance Agency (SEFA)  012 394 5560/5900 www.SEFA.org.za

Industrial Development Corporation (IDC)  011 269 3000 www.idc.co.za

Trade and Investment Kwa-Zulu Natal  031 368 9600 www.tikzn.co.za

Ithala Development Finance Corporation 031 907 8911 www.ithala.co.za

Trade and Investment Limpopo  015 295 5171/97 www.til.co.za

Land Bank  012 686 0500 www.landbank.co.za

Western Cape Investment and Trade Promotion Agency  021 487 8600 www.wesgro.co.za

Mpumalanga Economic Growth Agency  013 752 2440 www.mega.gov.za

48 www.incub8mag.co.za · Volume 1 · 2017