32 minute read
Apps that Bongani Gosa use
APPS THAT I USE
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.
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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
Bongani Gosa
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.
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.
HOW TO MAKE YOUR IP ASSETS LEGALLY YOURS
Although 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 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.
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.
Yolelwa Sikunyana
WHAT IS THE LIFESPAN OF COPYRIGHT?
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.
For films, 50 years from the date the film was shown.
WANT TO KNOW MORE?
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
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.
PPlease 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. Don Mashele
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? 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).
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 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. What typical sectors do you fund and why? 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).
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.
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.
POINTS SMEs MUST CONSIDER BEFORE JOINING AN ESD PROGRAM
The 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. Siya Bacela 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.
3PROMISING 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
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 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.
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 firstclass 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.
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
Andile Fulane
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 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.”
ENTREPREUNERS DOING IT FOR THEMSELVES
Quite 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
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
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.
Transform SA TV on YouTube & Community TV Stations
ALL YOU NEED TO KNOW ABOUT CROWDFUNDING
These 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). 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,
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.
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.
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.
Incubation Centres Directory
SEARCH
Shanduka black Umbrellas 27(0)105905555 www.shandukablackumbrellas.org
Aurik 27(0)114475575 www.aurik.co.za
Raizcorp 27(0)112622710 www.raizcorp.com
Awethu Project 27(0)110241606 www.awethuproject.co.za Ifa Lethu Foundation 27(0)315640743 www.ifalethu.org.za
Agri Mega 27(0)284242890 www.agrimega.co.za
Furntech 27(0)215100088 www.furntech.org.za
Rlabs 27(0)216991453 www.rlabs.org
Mobile Agricultural Skills Development and Training 27(0)137532470 www.masdt.co.za
Jozi Hub 27(0)824513654 www.jozihub.co.za
Medo 27(0)213000500 www.medo.site Egolibio lifesciences 27(0)128440724 www.egolibio.co.za
Chemin 27(0)105940641 www.chemin.co.za
SCI E.L 27(0)873730801 www.seci.org.za
SEDA Alfred Nzo Agro Manufacturing incubator(SANAMI) 27(0)872851555 www.sanami.co.za
Seda Nelson Mandela Bay CT 27(0)414098600 www.snii.co.za
Seda Agriculture&Mining Tooling Incubator(SAMTI) 27(0)51 5073592 www.cut.ac.za
Bakery and food Technology Incubator of SA 27(0)128031222 www.bicsa.co.za
Global jewellery Academy 27(0)118572854 www.globaljewelleryacademy.co.za Lepharo 27(0)113633920 www.lepharo.co.za Seda Automotive Technology Centre 27(0)125645592 www.seda.org.za
Seda Essential Oils Business Incubator (SEOBI) 27(0)128083061 www.seobi.co.za
South African Manufacturing Technology Demonstration Centre 27(0)877401000 www.smtdc.co.za
Downstream Aluminium Centre for Technology 27(0)357971500 www.dact.co.za
InvoTech 27(0)312014788 www.invotech.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)145970736 www.spi.org.za Seda Atlantis Renewable Business Incubator (SAREBI) 27(0)215772719 www.serebi.co.za
