Incub8 Magazine Edition 3 by Papasha Media

R6 MILLION SAVING:

WAYS SMEs CAN ATTRACT MILLENNIALS

MEET HIGH GROWTH STARTUPS UBER EATS VS TAXIFY

Sales Tips for Your Business

Expert shares 5 Tips

▼

A SOLAR IRRIGATION SOLUTION

WANT A FRANCHISE?

Rivoningo Mhlari

24 YEARS OLD & ON A PATH TO A TECH EMPIRE

5 Leadership Traits shared

by Winning Entrepreneurs

MOR E • ESD AMP HELPS SMMES GET MEDIA EXPOSURE • MEET SA’S CREATIVE TOURISM BUSINESSES

Developing digital strategies for growing future-proof enterprises.

Specialsts in Online Marketing Digital Strategy, Email Marketing, Search Engine Optimisation Social Media, Video Marketing.

papasha papashamedia.co.za

PAPASHA MEDIA 082 750 3729

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www.incub8mag.co.za · Volume 3 · 2019

CONTENTS 10

Editors note

6 Foreword 8

Guest Note

10 Want to get a franchise?

ow rejection becomes a H big motivator, and unlocks success

hat you don't know about W Uber Eats, Taxify

ere's how you can tap into H Incuvest support

Tips for SMEs to attract 5 millennials

20 R 6 million savings from a solar water company system 22 T he shoe, the artist, the winery: How to explore SA;s tapestry of beauty, wonder 25 Directory

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EDITOR’S NOTE

EDITOR'S NOTE D

oes your business have a winning sales strategy? This is the single most important question that must be answered to determine the success of your growing business. The importance of developing a strong sales plan can never be over emphasised although it is usually misjudged especially by small and medium enterprises. I was once advised by a business coach to take charge and lead my sales department. Unfortunately I took this for granted as I felt I was already involved in it although it was on a casual basis. It took a serious drop in revenue for me to want to be directly involved and lead our sales team. It was only after I took a decision to be at the forefront that we saw real change and since taking this decision the sales went up by a huge margin. Business owners have to take sales seriously to a point of setting up innovative sales programs within their businesses. I am quite fortunate that I have received some training in sales and in fact I have also worked for my business as a sales project leader. I would encourage anyone who wishes to fast track the growth of their business to go for a short course in sales management or even watch sales videos on YouTube. I have no doubt this will add so much value to your business. I have compiled these five basic sales tips. 1. Develop a sales strategy. There are various approaches to sales. Some companies opt for telesales while others prefer a much closer interaction like meetings and presentations or a combination of both. Recently, there has been an increasing number of online sales conversions. Whichever style suits your business just ensure it yields the desired result and there is a decent plan behind it. 2. Compile a leads list. This is a list of potential clients. Leads must be researched and qualified before a proposal is tabled.

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To qualify a lead, you must ensure that the potential client suits your business offering and the person who will make the decision is identified. 3. Research Thoroughly. Know as much on you can about the company you want to do business with. Understand their product or service offering. Find out who the directors or the owner of the business is. Check who their clients are and some of their basic policies. 4. Target more companies than you need. Your lead list must be longer than the number of businesses you eventually want to do business with. This will widen your window of opportunity. Remember not all the businesses you approach will agree to do business with you. In some cases they will decline your proposal. 5. Develop an effective sales pitch. Plan and write down exactly what you would like to say to the client when they give you an opportunity. Include all the benefits they will receive from your company and the reasons they should choose your business over many others who may be offering the same services or products. Write this in such a way that is clear, short and straight to the point. 6. Prepare a plan to follow up on leads. Be able to measure your success and your failure rate. Use tools, set reminders and document your sales progress. Repeat everything that proves to help you succeed. Enjoy Sakhumzi “Saki” Mabhele

Just like a shoe, an old sign says it all.

sakiprint.co.za

BRANDING IS BELIEVING

FOREWORD

IS SA REAPING FRUITS OF

ENTREPRENEURSHIP? Septi Bukula, Director: Osiba Management and Chairman: Entrepreneurial Planning Institute

"Is South Africa getting back its investment’s worth in entrepreneurial returns?" The president of Innovation Business Development, US-based research and development firm

wo years ago, Dr Hamsa Thota, the president of Innovation Business Development, US-based research and development firm posed a thought-provoking question: with such a welldeveloped entrepreneurship and small business support ecosystem, how is it that the level of entrepreneurial performance in South Africa remains at levels that are below expectation? He was speaking at an international SME conference in Cape Town. This question continues to seize the imagination of the best brains in the field locally. Dr Thota’s enquiry echoes an important question that many have asked for some time: is South Africa getting back its investment’s worth in entrepreneurial returns? With unemployment at stubbornly high levels and the economy scraping the bottom of the barrel, it is now acknowledged by many that entrepreneurship must come to the rescue. Quite frankly, there aren’t many avenues open to the country to escape its economic malaise. For unemployment to fall, entrepreneurship must rise.

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And entrepreneurs must do things differently to grow. SMEs in tourism are doing exactly that, thinking and acting differently to confront a challenge that pins them down. Market access is recognised as one of the key challenges facing all SMEs. This is more pronounced in the country’s tourism industry, with its strong dependence on foreign markets, and weak and declining domestic tourism. Competing for inbound tourists is a major challenge for SMEs with virtually no name recognition and weak links abroad. SMEs are now seizing the initiative, collaborating under the banner of a new voluntary network, SEEZA Destination Network, to offer a full suite of destination management services. It is gratifying that, in its efforts, the local SME ecosystem can count on publications like Incub8 to document the country’s entrepreneurial journey. Enjoy the read. 

GUEST NOTE

good leadership traits of successful entrepreneurs, how to avoid pitfalls

Emmanuel Sir Bonoko Bonoko is one of Forbes Africa’s 30 under 30 entrepreneurs. He is also the founder of Ebonokoholdings

www.ebonokoholdingsltd.co.za

"No matter how rich, blessed, powerful, educated you believe you are it is important to treat people with respect and conduct your business with absolute integrity."

eadership entails getting things done through the ability to lead by example while communicating, mobilising, sharing and delegating. Innate qualities and a good business idea are just not enough. No matter how rich, blessed, powerful, educated you believe you are it is important to treat people with respect and conduct your business with absolute integrity. Integrity and respect in business is everything. Before you can lead you must first learn to follow. I believe that a true leader must possess the following traits: ➊ The will to lead with a clear vision; ➋ The will to properly manage her/his business finances and with discipline; ➌ The will to lead people with respect; ➍ The will to acknowledge the gifts of others within one’s business and trust them when great opportunities are presented; and ➎ The will to take calculated risks and be accountable for their decisions and actions.

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Most small SMEs fail due to a lack of leadership within their business. The issue is that we as entrepreneurs keep making the same mistakes over and over. Poor financial management is also problematic for many of us. In order to gain trust from your clients and potential investors as well as employees you should have the discipline to conduct yourself with honesty and integrity in your business. I cannot over emphasise this enough. For instance, investors will not trust you with their money if they see you posting lewd images of wayward behaviour, substance abuse and reckless excesses. They will see you as someone who is obsessed with wasting resources on liabilities. While large corporations may be able to survive for short periods of time without good leadership in place, the opposite is often true for small businesses. It is therefore imperative for entrepreneurs, start-ups and SMEs to see themselves as big contributors to the economy and value the great impact they have in the economy. 

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

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Nomfanelo Qumashe

Production Media Assistant:

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Design & Layout

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Media Co-ordinator

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Editorial Enquiries

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Online Content

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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 3 · 2019 · www.incub8mag.co.za 9

FRANCHISING

WANT TO GET A FRANCHISE? A SERIAL ENTREPRENEUR TONY DA FONSECA SHARES 5 KEYPOINTS Franchising provides unhindered opportunities for all South Africans to get into business and it's a catalyst for inclusive economic growth; poverty alleviation and equality. BY: TONY DA FONSECA

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FRANCHISING

ranchising is a field of expanding economic opportunity and one of the safest options to getting into business. However, while the failure rate is 10% compared to the 90% rate on independent businesses getting into a franchise is still a decision that must be taken with serious consultation and self-examination. Running a franchise and working within the parameters of a strict operating format may not suit everyone and the pressures put on running a franchise is not for the faint-hearted. Here are some tried and tested nuggets from Tony Da Fonseca, chief executive officer of OBC Chicken and Meat on how to navigate the choppy waters.

 Understand the concept of franchising Many people have a vague idea that you simply acquire a franchise, open the doors and ‘Bob’s your uncle’ – you are now rich and successful! You must fully understand what the implications are of signing a franchise contract that contractually locks you in for a fixed period of time (anywhere from 3 to 10 years) or why you have to pay an upfront fee or ongoing management service fees.

C hoose a franchise business that you’ll enjoy Don’t let the idea of being your own boss cloud your judgement or be swept away by the allure of a well-known brand. Choose a franchise concept that you understand, are familiar with or even have

new and successful concepts will soon have copy-cat businesses which can dilute profitability.

“Besides the obvious legal and financial aspects to buying a franchise that need to be considered, understanding what you are letting yourself in for is as important.” Tony Da Fonseca

some expertise in. Be realistic about your expectations and your ability to manage a stressful business and identify a sector that you know will stimulate you and which will give you great pleasure.

 Do your homework and choose well Wonderful ideas and passing fads don’t make for long-lasting business ventures and you could be buying into a concept that is set for failure. Above all else, check the sustainability of the financial model - those with innovative products and services, protected technology and new growing markets make ideal businesses. Look at the competition as well as most

 Find the right ethical fit You may love the product or service you are investigating and admire the success of the brand but have a niggling feeling that the principals of the business are not what they make themselves out to be. Any uneasy instinct from your side needs to be taken as a warning sign – not necessarily that the opportunity is flawed but that it doesn’t fit in with your own value system and just isn’t a good fit. A franchise relationship between franchisor and franchisee is much like a marriage – you are stuck with each other for the duration of the agreement and it is in both your interests that there is trust and transparency and a genuine compatibility.  Franchising still the best investment option Despite the on-going recession that is impacting heavily on small businesses, the franchise sector continues to be resilient and franchising globally has fared far better than independently owned businesses – largely due to the strong business format and support system inherent in franchising. The business model of franchising is globally one of the soundest business methods and in South Africa has grown to over 700 franchise systems, with over 35 000 franchise outlets and employing over 300 000 people contributing 11.6% to South Africa’s GDP. 

➚ For further information visit www.fasa.co.za or www.franchisebusinessfestival.co.za

Volume 3 · 2019 · www.incub8mag.co.za 11

COVER STORY

HOW REJECTION BECOMES BIG A MOTIVATOR,

AND UNLOCKS SUCCESS Inside the mind of a start-up entrepreneur who turned rebuff, vindictiveness into a path to a successful tech-empire. BY: SIBUSISO MASANGO

hen Rivoningo Mhlari (24), an accomplished techentrepreneur, tapped into the 4th Industrial Revolution to create a vehicle information management system, potential investors slammed doors in his face. Not to be dissuaded by the series of rejections, Mhlari persevered to realise his dream. “I remembered what Mohammed Ali said: ‘don’t quit, suffer now, and live the rest of your life as a champion.’ Perseverance, sacrifice and hard work paid off in the end,” Mhlari says. Today, his company Rikatec, among other triumphs, instantaneously provides a connection to fault detection in vehicles. Rikatec was established in partnership with Jesse Matheri (24), the company employs 12 people. What sets Rikatec apart is that it provides a bouquet of fleet management logistics. These include predictive maintenance for fleets, systems to monitor driver profile and traits, engine stress, wear and tear and other services to improve efficiency, save time and money in vehicle management. This facilitates improved prediction of vehicle longevity, assistance in determining insurance and warranty premiums and can assist in enhancing resale value of motor vehicles.

Tapping into the offerings of the 4th Industrial Revolution Rikatec uses big data and analytics to provide valuable information that helps reduce operational costs, in the process creating much needed jobs. The never say die spirit, saw Mhlari being included in Forbes Africa’s prestigious list of the continent’s 30 leading tech entrepreneurs whose innovative businesses are shaping their societies. When his idea was rejected by a number of game changing institutions and insurance companies he had approached, Mhlari turned to Plan B. Forbes Africa reports that he founded a marketing consultancy, where he hosted events and advised small business on strategy; made money and funded the development of Rikatec prototypes. He also made a noise about the difficulties of support and funding for tech start-ups. It earned him a R500,000 investment to commercially test the product in exchange for 5% equity in the business. Former US President Barack Obama had young people like Mhlari in mind when he challenged the youth to take the baton and chart a new course for a better future through innovation and creativity. Obama was in town recently to pay tribute to Nelson Mandela and deliver the 16th Nelson Mandela Lecture.

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Like Madiba, Mhlari never allowed challenges to stifle his growth and destiny. Born in Phalaborwa a mining town in the north of Limpopo, Mhlari, like Madiba moved to Johannesburg to pursue his dream. At the age of 13 he enrolled at Saint John’s College boarding school. Entrepreneurship had always been in Mhlari’s heart and at school he ran a night tuck shop for the boys in the boarding house which serviced them during study breaks. Having matriculated he moved to the University of Cape Town where he studied Business Science Finance with Accounting. The idea of information management system for cars struck Mhlari when he was attending a business summit in Cape Town. “I thought of using cellphone technology to improve efficiency in the operation and servicing of vehicles. My business partner (Matheri) and I conducted extensive research and came up with the business model.” Rikatec got its breakthrough in 2015 when they pitched their idea to the Department of Economic Development and Tourism in the Western Cape and received a R25 000 grant. The partners used that money to develop their first prototype. They got a novelty search and everything came together six months down the line. Having collected enough data, they decided to

COVER STORY

“I remembered what Mohammed Ali said: ‘don’t quit, suffer now, and live the rest of your life as a champion.’ Perseverance, sacrifice and hard work paid off in the end.”

Rivoningo Mhlari

Volume 3 · 2019 · www.incub8mag.co.za 13

COVER STORY

"Making the impossible possible through technology is our primary goal."

Another hurdle is that whilst South Africa has over the years achieved great milestones in terms of science, technology commercialise the invention and approached Skeg product developers. Rikatec is a compelling creative space where team members are given the opportunity to express themselves and push their talent to the limit. “Making the “impossible” possible through technology is our primary goal,” says Mhlari. The company provides service to insurance industry, financing houses and fleet management companies. As with all success stories, challenges that threaten progress abound. For Mhlari and Matheri, the youthful disposition means they have to put extra effort to dispel fears that they are novices fresh from varsity and without experience.

and innovation, more still needed to be done to deal with technophobia. Apart from business Mhlari is involved in a non-profit organisation called “Phambili Mzansi” which is a youth run organisation for future leaders. When asked about transformation in South Africa Mhlari feels that the country is headed in the right direction. He notes that a lot of ground still has to be covered in terms of gender equity. “We try to walk the talk by empowering women. For instance, the majority of our management comprises of black women,” he says. Mhlari’s short term goal is to see Rikatec listed on the JSE. “I think I have a national responsibility to list Rikatec as an African

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brand that can service international markets listed on the stock exchange,” said Mhlari. Mhlari is optimistic about the direction that the country is taking, saying the improved confidence is likely to lead to a better outlook for growth and investment. However, Mhlari says more needs to be done to involve more young people in the direction that the country should take. “I think the President should tap into the potential of companies like Rikatec to unite young people across divisions of race and political lines to build a better and prosperous South Africa by taking full advantage of the advent of the 4th Industrial Revolution.” Mhlari urges support for SMMEs and community-based co-operatives to ensure inclusive growth and job creation. To wind down Mhlari enjoys travelling, participating in sport. He likes to listen to Kiernan Forbes (AKA) and internationally he admires Drake Graham. 

DISRUPTORS

What you don’t know about Uber Eats, Taxify As society rapidly shifts to an on-demand world it is amazing how technology is driving change in the way we live, work, procreate and play.

ber Eats and Taxify are some of the disruptive technologies whose value proposition is convenience. We spoke to Caitlin Peters and Marilin Nooren who unpacked Uber Eats and Taxify, respectively. 1. UBER EATS This is an American online food ordering and delivery platform launched by Uber in 2014 and based in San Francisco, California. When did Uber Eats start in South Africa? Uber Eats was launched in 2017. The platform will celebrate its first birthday in September. Who is the target audience?? The Uber Eats app is open to everyone. Where is it accessible in South Africa? Uber Eats is available in Johannesburg and Cape Town, Stellenbosch, the West Coast and Pretoria. Where does the company see itself in the next 5 years? In the next 5 years Uber Eats sees itself at the forefront of the techspace. The team is determined to push the boundaries to meet the changing needs of users. Is the app user-friendly? Using the app is super easy. Wherever you are, whatever time it is, you can press a button and have great food delivered. How does it work? 1. Download the app and add your delivery address. 2. Choose from the full menu of Cape

Town’s best restaurants. Place your order and follow along as your meal is prepared and delivered! Uber Eats automatically uses the card on file, so you never need cash. As there are a wide variety of restaurants partnered with Uber Eats the prices vary from meal to meal. However, there is a booking fee for Uber Eats at a flat rate of R20 no matter the basket size.

partners drive their own cars as Taxify does not own a fleet.

How user-friendly is the app? Everyone with a smartphone and access to the internet can easily download and use the app. Taxify development and design team has put a lot of effort into making the app as user-friendly as possible and will continue to do so.

How does one become part of Uber Eats? The Uber Eats website has all the details for delivery partners or partner restaurants. The following requirements apply: • You must be 19 years old or older. • You must have a driver’s license, regular insurance, and proof of vehicle registration, 1 year of driving experience • Vehicle requirements: 1996 or newer for cities that allow EATS-only profiles. Otherwise vehicle requirements are the same as UberX. 2. TAXIFY Taxify is an Estonian international transportation network company headquartered in Tallinn, Estonia. It operates in 19 countries through a mobile app that allows people to request a taxi or private driver from their smartphone. What is the criteria used to be a Taxify driver? All drivers must apply online and go through a training in Taxify’s office. All driver-partners need to have a professional driving permit. By law, one should be 21 years or older to hold a PrDP for a passenger vehicle. There is no maximum age limit to be a driver. One driver can register maximum two cars. Taxify is an IT-platform that mediates rides. Driver-

What methods of payment can one use? There are two payment methods: cash and in-app payment (credit card). Driver ratings are calculated based on the average rating of last 40 rides. Are there areas where Taxify is not available if yes which areas are those? Taxify is currently available in Johannesburg, Cape Town and Durban. Plans are afoot to expand to new cities later in the year. Any challenges to the business? Future plans? The speed of economic and technological changes can mean that the right path yesterday may not work today. Taxify’s business model is very flexible and dynamic. The South African market holds massive potential given the size of the population and that over a million rides happen on a daily basis. Ultimately, we aim to change the way that people move within the city, create jobs and transform the transportation ecosystem. Competition is good and we believe there is room for several players in the ride-sharing economy. We believe that Taxify can effectively contribute to healthy competition by improving the quality of service, motivating driver-partners and offering affordable prices to riders. 

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ESD OPPORTUNITIES

hilst it is opportunities galore for the country’s SMEs to be viable concerns, several challenges stifle growth and sustainability. The Enterprise and Supplier Development element of the amended B-BBE Codes is not only vital to an organisation’s scorecard but has the potential to empower many and positively contribute to the South African economy. However, there is a general lack of resources and intimate knowledge about the Enterprise Development and Supplier Development scorecard requirements. Therefore, engaging with the right incubator to drive the process will benefit both the “contributing organisation” and beneficiary alike. Whether you are a contributor or a beneficiary there will be some challenges to the process.

Here’s how you can tap into Incuvest support The South African business landscape provides many opportunities for Small and Medium Enterprises (SMEs), and black owned entities in particular. BY: GERALENE VAN WYK

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➚

ESD OPPORTUNITIES

Incuvest, a leading South African incubator founded in 2011 to empower SMEs reach their full potential, is standing in the gap to provide forward looking solutions to entrepreneurs. “Incuvest addresses some of these challenges, through being a one-stopsolution for contributors and assisting qualifying black owned beneficiaries in an extended and successful way,” says Geralene van Wyk, Operations Manager. Opportunities to the beneficiaries in Incuvest’s acceleration program: • When a beneficiary enters the Incuvest program an in-depth needs analysis is conducted to determine where to start; • The beneficiary’s legal and financial compliance is dealt with, by ensuring that they comply with all relevant legislation. This also ensures that they are eligible for tendering opportunities in different sectors; • Beneficiaries are assisted with skills to write impactful business plans; and • Monthly workshops that focus on the self and business development of every beneficiary, are conducted in consultation with the latter. “As cash flow is one of the biggest threats for a small business, we do assist and educate in this regard. Most issues surrounding cash flow relate to how the cash is being managed. Incuvest advises a beneficiary on money management matters with the option to assist them in securing financial aid. Incubators such as Incuvest, upon approval, will support a beneficiary in the form of a grant,” Van Wyk says. Opportunities to the contributors towards the Incuvest acceleration program: • Navigating one’s way through B-BBEE compliancy, status and levels can be a complicated and confusing process. Incuvest assists and support a

"As cash flow is one of the biggest threats for a small business, we do assist and educate in this regard.” "

address. A holistic approach needs to be followed, to foster real change and solutions. Core challenges of both beneficiaries and contributors need to be faced and tackled. Enterprise and Supplier Development incubators, can be a wonderful vehicle for real change and growth if it is utilised and managed in a proper and controlled way. The Incuvest team has a passion for developing and empowering beneficiaries, ensuring that their dreams are realised. The end result that Incuvest as Incubator wants to achieve, is ensuring that the beneficiaries in the program become self-reliant and sustainable businesses that contribute to the economy of South Africa. “We are also committed to our contributors who make this possible. We are committed to a convenient, transparent and flexible process for all the parties involved,” she says. 

contributor through the process. The amended Codes place emphasis on Enterprise and Supplier Development, as priority elements. • Contributors can dictate their involvement. Contributors are not limited to only contributing grants, Incuvest welcomes their mentorship and education as part of the program. • Beneficiaries are monitored closely, and are transparent about their progress and success, contributors can therefore rest assured that their contributions are put to good use. “Contributors can help in creating sustainable employment, in a country with an unemployment figure of 27.7%. We are very proud of the 336 (and counting) jobs that were created through this program,” Van Wyk says. Incubators, like Incuvest can no longer choose which challenges they want to Volume 3 · 2019 · www.incub8mag.co.za 17

5 Tips FOR SMES TO ATTRACT MILLENNIALS 18 www.incub8mag.co.za · Volume 3 · 2019

Millennials have been under the microscope for a number of years now, with many organisations carrying out extensive research about this generation, their needs and how businesses can meet their demands. This has led to various stereotypes about the characteristics and behaviours of a group of millions of people born over a 20-year period.

MILLENNIALS

s the largest consumer group in the world today, it is impossible to ignore the impact the youth has will have as they settle into their prime spending years. Their impact will be particularly keenly felt in Africa, where millennials have overtaken their predecessors – the Baby Boomers – as the largest demographic. South Africa alone has over 14 million millennials, for instance, making up approximately 27 percent of the population. What makes this so important is the fact that Africa’s youth are driven by different concerns and realities than their global counterparts. “This makes it critical for businesses operating in Africa to understand the unique challenges and opportunities of the continent’s millennial customers, and their buying behaviour in order to be able to build meaningful relationships with them and give them the level of service they demand,” says Mike Higley, Vice President Operations, FedEx Express Sub-Saharan Africa. Here are 5 key insights into the youth psyche: T ech savvy and are increasingly choosing to shop online – and with a mobile-first approach Improved access to the internet, greater mobile penetration and increasingly easyto-use and navigate online experiences make consumers, especially African millennials, more likely to shop online. According to the PayPal and Ipsos third annual cross-border commerce report, South Africa’s online spend is forecasted to grow to over R53 billion in 2018. In 2016, 43% of adults in South Africa shopped cross-border. 1

▼ “This makes it critical for businesses operating in Africa to understand the unique challenges and opportunities of the continent’s millennial customer.”

Communicate with brands mainly through social media Social media has completely changed how young Africans interact with companies. Immediate access to information and brands has changed the relationship between businesses and customers, as well as the way customers approach buying products. The continued growth of social media – with 191 million active social media users across the continent (172 million of whom access social media through their mobile) – has meant that peer reviews and referrals online carry more weight than traditional advertising; peer-written content is millennials’ most trusted source of information. 2

3. 3

Demand personalised customer experience They expect brands and businesses to not only know what they want, but to provide it. And the results of a bespoke approach speak for themselves: brands that create personalised experiences see revenue increase by six to 10 percent. Small businesses have an advantage in this area, as there is more opportunity to get to know and build more meaningful relationships with customers than, where the same can be difficult in big businesses. 4. 4

ant to co-create bespoke products W to meet their unique needs They prefer brands that emphasise unique offerings that allow them to express themselves over mass-market alternatives. Co-creation is more than just a buzzword; 40 percent of millennials want to have a say or play an active role in co-creating the products that they spend their money on. 5 Loyal – but you have to earn it Research by Accenture indicates that millennials differ significantly from other generations when it comes to the concept of loyalty – and South African and other African customers differ even further. For instance, 88 percent of South Africans are loyal to brands that protect their private information, 67 percent are loyal to those that give those personalised discounts or special offers, and 52 percent are loyal to brands that support a cause that they value 

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INNOVATION

R6 MILLION SAVINGS FROM A SOLAR WATER COMPANY SYSTEM Poor rainfall and incessant drought is largely to blame for the challenges in South Africa’s agriculture sector, a situation that is threatening food security. Solar water pumping presents lasting solutions to the challenge. BY: LUIS E PEREZ

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INNOVATION

ccess to water is crucial for sustainable agricultural development. This is especially true for South Africa, a country endowed with vast tracks of farmable land without access to rivers, dams or other sources of water for irrigation. As a result,

an irrigation dam from a nearby river. This enables drip feeding irrigation using solar energy. Once this system is in full operation it is estimated that it will generate savings of close to R6 million to its owners. Within three years it will have been paid off. With a useful life of more than 20 years it is a certainty that

many areas are not available to farming purely due to the elevated cost of bringing water from very long distances or the building of electrical network required to operate borehole pumps. Farming remains vitally important to the economy. It is estimated that some 8.5 million people are directly or indirectly dependent on agriculture for their employment and income. South Africa has both well-developed commercial farming and more subsistencebased production in the deep rural areas. Agricultural activities range from intensive crop production and mixed farming in winter rainfall and high summer rainfall areas, to cattle ranching in the bushveld and sheep farming in the arid regions. Solar Water pumping is the solution to this problem for many reasons. For one thing, it is a low-cost option which allows the placement of boreholes right where the water is needed. The water is pumped to targeted areas utilising borehole pumps powered by Solar Panels. This is a welcome departure from a pump powered through the national grid, which is expensive and at the whim of power availability. The concept is really simple; since the solar energy only peak for a few hours per day, solar pumps are only operational between four to five hours per day. During

this technology will become the cornerstone of the profitability of this farm. This is a worthy intervention to the continent’s food security situation. The food challenges in Africa are multipronged. The population is growing, but it is threatened by low farm productivity exacerbated by weather changes, shorter fallow periods, and rural-urban migration that deprives farming communities of young people. 

Luis E Perez

this period the solar panels generate enough power to pump water to the required daily levels. 1. The water is stored in tanks and is distributed through the force of gravity to the areas of need. Up 30, 000 litres can be pumped per day. 2. Another plus is that the solar power can be installed directly by the farmers themselves, even in the remotest of areas, at half the cost of running a generator. 3. Moreover, government offers a tax incentive for renewable energy a move that can reduce the capital outlay costs for the first year by up to 30%. A good example is the recent inaugurated 75Kw pumping site at a pecan farm in Cradock, Eastern Cape. This solar pumping system was designed to pump almost 1 million litres of water per day to

"Another plus is that the solar power can be installed directly by the farmers themselves, even in the remotest of areas, at half the cost of running a generator."

Perez is Managing Director of Easy Power. He boasts over 20 years of very varied international experience in the commercial sectors of the energy, oil and gas and renewable energy. Born in Spain, Perez has a Mechanical Engineering Degree and a Masters in Turbomachinery design

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DID YOU KNOW

THE SHOE, THE ARTIST, THE WINERY: HOW TO EXPLORE SA’S TAPESTRY OF BEAUTY, WONDER Since the dawn of democracy South Africa has become one of the most popular leisure and business travel destinations in the world.

oasting, as it does, a tapestry of fauna and flora, cultural diversity and a forgiving climate, the country is a basket of wonders waiting to be explored. You can see it all in just one country. Here are two treasures to sample: 1. The Shoe Guest House Situated in Ohrigstad, known as the gateway to the Panorama Route and nestled at the foothills of the Drakensberg Mountains, close to the Blyde River Canyon, God's Window and Potholes, this treasure is a must see. This highly scenic area is packed with beautiful waterfalls,

viewpoints, historic towns and cultural heritage sites. What is The Shoe about? The Shoe, legend has it, is where the ‘old lady’ lived with her many children. Except the furniture of the ‘old lady’, The Shoe has a small museum featuring the history of the Valley as well as an art gallery. This place is operated by Dr Ron van Zyl, his wife Yvonne and children. There is also a curio shop and tea garden. From The Shoe is the entrance to the Alpha Omega Cave. The Shoe was built in 1990 to be a landmark and tourist attraction.

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Dr van Zyl was born in Cape Town in 1950. He grew up around the Cape, then joined the South-African Navy in 1968 to 1974 when he left to settle near Ohrigstad. His brother Pastor Paul van Zyl as well as his parents had already moved here, and he started the Alpha Omega Bible Garden on the way to the Echo Caves. Here he built the 16-metre-high rock face, called ‘The Dammed’ depicting tormented figures in “Hell”. Whilst living there he met his Yvonne, married her and moved away to a small piece of land a local farmer gave them. Once again, they built a shop which they called ‘Ron’s Art’ which they stocked with their own artwork and curios. Their

DID YOU KNOW

two children Michell and Aldo were born and eventually in 1990, through the help of a friend and partner, they bought the current property on which The Shoe is situated to this day. After The Shoe was build they started to develop the rest of the property. Accommodation facilities, restaurant, curio shop and tea garden came into being over the following years. In 1996, Ron was able to accomplish his dream - he started building the Cave. Easter Weekend of 1999 their son, Aldo took the first tour through this special man-made Cave in which the spiritual

As already alluded to, the Alpha Omega Cave came into existence because of the vision Ron had many years ago. Tourists or guests that come to visit The Shoe and the Cave are guided through seven underground rooms in which the Spirit World is depicted. The 7th room is a small Chapel where weddings can be held. The Shoe Ministries also has a Guesthouse and a Restaurant. The accommodation is luxurious, stone build, chalets with indoor fireplaces, kitchens, TV and bathrooms. braai areas, swimming pool, pub, games and hiking trails. Groups of up to 38 people can be

2. The Rooiberg Winery The story of Rooiberg Winery – situated in the renowned Robertson Wine Valley of South Africa – is that of a group of pioneering wine farms alongside three rivers surrounding the Rooiberg Mountain, which overlooks the cellar and its source vineyards. Here at the more than a half century old Rooiberg Winery, with its striking red land art, you find an exciting expression of wine diversity and quality born from a unique set of ecological features. Today a private company with 29 shareholder members who operate 20 farms and with exports to several

world is explained by sculptures, sound and lighting. Pictures can be viewed at the reception area. (website: www. theshoe.org) After he received divine inspiration to paint a large painting in 2005, the very painting used as an introduction to the Cave tour, a transformation took place in their lives. Many other divinely inspired paintings came about and Ron wrote his first book, called ’The Line’. This new transformation was made official and in 2007 through the establishment of “The Shoe Ministries” of which Ron and his family are the founding members. The Shoe Ministries now makes it their mission to teach people about true Christianity. The Cross of Jesus Christ is the centre of their teaching.

accommodated. Weekend seminars are held for church or cell groups. Wedding receptions and conferences for up to 70 people can be held in the main restaurant and smaller groups of 15 – 25 in the two smaller venues. Throughout all of this Ron has written nine books, painted numerous paintings and carved an unbelievable amount of sculptures, he conducts teaching seminars, and still do guided tours through their man-made Cave. He has obtained his Doctors Degree in Theology and his books are available from The Shoe Ministries directly. He still lives and works actively with his family on this current property today. He continues to write, build, sculpt and paint.

countries, Rooiberg has shown a remarkable growth spiral following its founding on 14 April 1964, as well as the ability to harness nature into excellent wines for the global market. The winery this year processed record 16 340 tons of grapes and its emphasis on quality production has yielded increasing accolades, while at the same time being a leader in clean and green production practices and nature conservation. With the largest Chair in Africa as a beacon to this well-established awardwinning winery and the only love-lock wall at a winery, one will find more than just great wines. With a cosy Bistro, specialized bakery and our traditional farm stall, Rooiberg is a sure stop for passers-by. 

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Incub8 Magazine Edition 3

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Editors note

Foreword