A CONVERSATION WITH SOUTH AFRICA’S TOP STARTUP LAWYER
BRADLEY GUMBI 1 million startups #startitup campaign Young entrepreneurs identify five imperatives for action in Africa.
“I have always dreamt of amalgamating my entrepreneurial zeal with my passion for law.”
how to BUILD a startup Issue 10 • January 2017
methodology + guidance StartupGuy shares his insights on how to build and launch a ground-breaking startup in Africa.
Plus
50 STARTUP IDEAS
TO PURSUE IN 2017 Imagine having access to the best resources and top notch advice to help you as you build your next startup thing.
A STARTUP MZANSI PUBLICATION || WWW.STARTUPMAGAZINE.CO.ZA
2 • Startup Magazine • www.startupmagazine.co.za
Startup Magazine • www.startupmagazine.co.za • 3
STARTUP NEWS StartupApp receives 150K queries
Startup Magazine moves to mainstream media
Startup Mzansi to launch StartupFM and StartupTV
ZADNA, Simple Brands, Startup Mzansi partner to put schools online
FEATURES 10 The Startup Revolution Rise of the SA startup ecosystem
14 The Startup Guy Confessions of a startup creator
22 Conversation with Bradley Mixing law and entrepreneurship
Lifestyle 28 The Startup Generation 20 young people making waves 36 How to make a million 5 hard and challenging steps
35 Coworking Spaces A community you can belong to
4 • Startup Magazine • www.startupmagazine.co.za
Startup Magazine • www.startupmagazine.co.za • 5
STARTUP MAGAZINE Publisher and Editor-In-Chief Sandile Shabangu (StartupGuy), iam@startupguy.co.za
FROM THE EDITOR
Cover Photography Raven Photography
THE BIG STARTUP PICTURE
Layout & Production Simple Brands (Pty) Ltd
“The value of an idea lies in the using of it” ~ Thomas Edison
T
his quote from Thomas Edison quickly brings to mind examples of entrepreneurs who acted on ideas and converted them into successful careers and business ventures, thereby setting an example along the way for those of us who may sprout an idea but lack the vision to bring it to fruition.
As a magazine, we want to be
Magazine, there is no better
the go-to resource for startups
time to launch than now: a time
and investors alike, connecting
to celebrate people who are
them to our unique blend of
succeeding and aren’t afraid to
reporting
birth their ideas against all odds.
on
entrepreneurial
Editor Batsiba Maleka editor@startupmagazine.co.za
activity, success stories, new ventures, new opportunities and
We are truly excited to become
business, interventions, policy
part of the social interactions,
directions and notable events.
and as you peruse through this
Marketing Director Lucky Nkumbi, lucky@startupmzansi.org.za Graphic Artist Khulekani Khumalo Proofreader Solomon Nkuna
Contributors Sandile Shabangu Nonhlanhla Simelane Kate Stevens Amanda Coetze Kabelo Shezi Chris Mabena Sibusiso Lubisi Sarah Khoza Adrian Smith John Maswanganyi Community Coordinator Mthunzi Mavuma Contact Details Address: 1 Lente Road, Kempton Park, 1520 Call Center: 0861 STARTUP Cell: 079 761 6308
Office Manager Amanda Coetze Subscriptions hello@startupmagazine.co.za Advertising Sales Director Catherine Smith catsmith@startupmagazine.co.za
Brought to you by:
issue, you will find great effort has We are passionately interested
been put in terms of information,
in the nitty-gritty of what makes
creativity,
and
exposure.
startups really work and celebrate the creative people in all types of
We’d love to get better at what
startups, at all levels, those who
we do, and the most efficient
inspire innovation. We believe this
way to do that is to crawl out
maiden issue which touches on
of our many separate bunkers
interestingly angled topics such as
and share our best ideas with
the Startup Revolution, alongside
you. Hence, it will be great to
an
conversation
get your feedback about this
with Bradley Gumbi (a startup
issue and the magazine itself.
lawyer who has recently joined
Giant thanks to our writers,
Startup Mzansi Foundation) and
contributors and advertisers for
opinion piece on public sector
throwing in with us, and to you our
entrepreneurship among others
first readers for making it all real.
exclusive
help get the wheels turning. This maiden mainstream edition will not be complete without stating how incredibly proud we are of our publisher for having the faith and foresight to embrace this gigantic idea as one of possibility in the wake of worldwide economic gloom. For a magazine like Startup
Batsiba Maleka (Editor)
6 • Startup Magazine • www.startupmagazine.co.za
Disclaimer: The Startup Magazine is the official publication of the Startup Mzansi Foundation. All material is strictly copyright and all rights are reserved. No portion of this magazine may be reproduced externally, wholly or in part, in any form without the written consent of Startup Mzansi Foundation. The views and opinions experessed by the contributors to this publication are not necessarily the views and opinions of the publishers, Startup Mzansi Foundation or its associates. While every effort has been taken to ensure the completeness or accuracy of the published information, errors and ommissions may occur. The publishers, Startup Mzansi Foundation and its associates cannot accept responsibility for any loss, damage or inconvenience that may arise from the unauthorised use of this publication.
Startup Magazine • www.startupmagazine.co.za • 7
startup news StartupApp Receives over 150K queries StartupApp has received over 150000 queries received from startups since its release in April yester year, the Startup Mzansi Foundation said on Wednesday. “The app has received more than 150000 queries from startups, mostly from young people.” the Startup Mzansi Foundation revealed. The StartupApp was operationalised on April 29, 2016, as a one-stop shop to guide, resolve queries and provide hand-holding support to young startups in South Africa. “The app, aims help startup entrepreneurs to quickly and easily navigate and access support, information, mentors, investors, resources, opportunities, events, news and networks to start and grow their businesses,” said Sandile Shabangu, the Founder & Chairman of the Startup Mzansi Foundation NPC. “Startup Mzansi Foundation has also established the Institute fro Startup Leadership & Excellence (Startup Institute) and through the platform would soon be launching an interactive online learning and development module to educate Startups and aspiring entrepreneurs, through various stages of their entrepreneurial journey,” added Ms Amanda Coetze, an executive at the foundation responsible for its Strategic Programmes. In this connection, ecosystem developer and social venture
STARTUP MAGAZINE MAKES MOVE TO MAINSTREAM MEDIA Congratulations
our
will help drive impactful
amazing team of writers,
contributions on a wider
contributors and leaders
platform and setting.
who’ve helped us bring
During the transition phase,
Startup Magazine to where
Startup Magazine had taken
it is today. We extend a huge
a break, but stories and
thank you to Amanda and
messaging have reached
Calvin for their leadership
farther via our mainstream
and dedication in building
partnership with print and
the
broadcast.
Startup
to
Magazine.
We can’t wait to continue working with you as we
We are so grateful for your
extend
amazing contribution to
our
reach
into
mainstream media.
Startup Magazine that we want to take your great
This is an exciting time for
content
us all and we want you to
media and really get the
continue sharing in our
messaging out there.
to
mainstream
success. It’s been a year since the pilot release of
The
Startup
Startup website
Magazine has
also
We now been re-launched have a great providing another and during that time opportunity to platform to change with the amplify your we’ve ecosystem great content watched the Magazine,
ecosystem
as Startup Mzansi
change. now
We
have
a
Correspondents. great
opportunity to change with
It has been a huge honour
the
whereby
to have you as part of our
accelerator Startup Mzansi Foundation has said South African
giving our great team of
ecosystem
team, and we look forward
ranks are steadily growing globally with the number of startups
authors and contributors
to having you grow with us
crossing 4,200.
the opportunity to grow
as we head into mainstream
with us by moving Startup
media.
In its latest report titled “Startup Mzansi - The Historic Rise of
Magazine away from an
the South African Startup Ecosystem”, Startup Mzansi said that
internally focused magazine
Thank you and we look
there was a 100 per cent growth in the number of private equity,
to a vehicle where we
forward to great things
venture capitalists, angel investors, along with a 125 per cent
can
really
ahead together.
growth in funding last year.
your
talent
stories
“The total funding in the South African-based startups was
and
of
mainstream
one of the world’s youngest startup nations with up 80 per cent
opportunity
8 • Startup Magazine • www.startupmagazine.co.za
Mzansi
telling
Entrepreneurs
Communities
estimated to be nearly R3 billion by 2015. South Africa is also founders younger than 35 years,” the report said.
showcase by
media. as
in This
Startup
Correspondents
Sincerely, Sandile
Shabangu
(StartupGuy) President & CEO, Startup Mzansi Foundation
Join Us In Celebrating The Launch Of STARTUP Magazine
ZADNA PATNERS WITH SIMPLE BRANDS TO PUT SCHOOLS ONLINE The .ZA Domain Name Authority has recently partnered with Simple Brands to help put South African schools online. This relationship comes after a very strong need to help digitise South African education system. The project had been initially planned to provide selected schools with an online presence in the form of a website. Speaking for the
authority, Gabriel Ramokotjo,
who is project managing it has indicated that the authority will fully sponsor the STARTUP Magazine is set to officially launch on March 25, 2017. To celebrate,
development of the schools’ web presence.
we will be hosting The STARTUP Magazine Launch and Networking Reception in Johannesburg. Subscribers to the magazine are added to our STARTUP Social distribution list and are invited to all STARTUP events. To join the STARTUP Social distribution list, subscribe to the newsletter at www.startupmagazine.co.za/subscribe
two new media projects to fuel startup entrepreneurship in South africa
is burgeoning, but the stories that we often hear are overseas imports or from long-time-ago successes, most of whom that are way past the early days of their first hires, the challenges of
early-stage
funding,
finding
great mentors, and trusted advice, We live & love startups. Like the small features of a new car, every new startup has its own unique appeal. A (hopefully) needed possible answer to a real-world problem, or a new market not yet identified. Each founder is like a wide-eyed child with their vision of the future, and their startup a part
of
connecting
with
co-founders,
and mistakes, and bootstrapping and........, ok, you get the picture. So way past, that the stories might not yet (and might never) be of much help to the many people who are about to, thinking about, or have
of changing their part of the world.
just started. (Though they are often
And every new startup creator and
to go to select meetups to hear them.)
founder, whether first time out, ‘up-atbat’ again, rookie, or experienced professional, is going to have some challenges; actually, lots of them. More than they can yet imagine. When our founder (Sandile Shabangu) broke free from conforming to what is acceptable to society in 2009, there wasn’t even a startup ecosystem in South Africa. Now, we have one that
inspirational, which is why we continue
But mostly, we wanted to hear the stories of our peers; their challenges and successes, their gains and pains, their learnings and yearnings. But these stories didn’t seem to exist. Which is why Startup Mzansi has been working to introduce StartupFM (podcast series) and StartupTV (video content) to help expose the South African startup ecosystem robustly.
The Startup Mzansi Foundation has also plegded support to train young people to possess the required skills (website design and development) needed to push the project.
The foundation, through its
Institute for Startup Leadership & Excellence will be training selected entrepreneurs in
Mpumalanga
and
KwaZulu
Natal.
“We are very excited to be involved with ZADNA and Simple Brands to help South Africa move forward and are positive about the
impact such a project will
make towards the betterment of lives of not only the beneficiaries of the project but also the prospect of transferring new skills to young entrepreneurs in the provinces.”, accentuates Sandile Shabangu, Founder and Chairman of Startup Mzansi Foundation. SM
Startup Magazine • www.startupmagazine.co.za • 9
the startup revolution More and more young people are joining this movement and Startup Mzansi Foundation has created a strong network of stakeholders to promote entrepreneurship in Mzansi.
In a country of around 50 million people, 60 percent are below the age of 35 years. This might of human capital can be converted into a highly productive resource by improving the quality of education, imparting management training, developing skills and providing opportunities to participate in the mainstream economy more effectively. Every year public and private colleges and universities churn out a large number of graduates in both technical and management disciplines. In the absence of proper career counseling, however, most of them face great difficulties in finding the right opportunities in the marketplace. The mismatch of talent and opportunities is not only producing more unemployed and frustrated youth, but also causing severe damage to the social fabric of South African society. These young people can only use their strength and abilities if South Africa can offer conducive work environment.
10 • Startup Magazine • www.startupmagazine.co.za
the view that by landing a job, they would be able to start earning immediately, whereas starting a business takes much more time and risk before profits are realized. They identified social pressure, particularly from parents who have funded their education for years, and expect them to provide financial support to the family. Having said this, due to a reduction in job opportunities a large number of young people, both men and women, showed interest in experimenting with entrepreneurial careers. To build youth understanding of the policy process and the dynamics of doing business in Mzansi, Startup Mzansi signed a memorandum of understanding with universities. From time to time, the Foundation invited students to various policy dialogues and seminars. These were mainly focused on entrepreneurship and policies that are key stumbling blocks to promoting an entrepreneurial culture in Mzansi. Since Mzansi’s dawn of Democracy in 1994, government has focused on the development of large-scale industries to the neglect of policies to promote entrepreneurship and small business.1 Advocacy and Awareness The foundation picked the Draft National Youth Policy as a key policy reform initiative.
The
foundation
identified
four components in the draft policy that required improvement: entrepreneurship, In order to help youth realize their
job market and to look at possibilities
microfinance, skills development, and
potential and create an environment
for diverting their thinking towards
internships.
conducive to their success, the Startup
entrepreneurial careers. Focus groups
policymakers, young business professionals,
Mzansi Foundation has supported youth
with stakeholders revealed that if a
people from academia, and students in an
entrepreneurship on multiple fronts.
platform to guide youth on business
intense consultative process. This initiative
The Foundation has advised youth on
opportunities existed and mentorship
greatly helped in changing the mindset of
entrepreneurial, engaged them in policy
were
start
the public sector, which started to realize
discussion, created channels for youth
considering entrepreneurial careers as
that youth should be provided opportunities
leadership
activities,
alternatives. Startup Mzansi learned that
by creating an entrepreneurship ecosystem
and promoted the culture and spirit of
Mzansi youth have excellent business
in Mzansi.
entrepreneurship.
ideas, but lack implementation strategy as
in
foundation
Career Options and Barriers
accessible,
they
might
Startup
Mzansi
engaged
well as knowledge about laws, rules, and
With greater involvement of youth in the
regulations for starting a business.
Foundation and increasing interest in the
In 2012, Startup Mzansi Foundation took
advocacy campaign, the Startup Mzansi
the initiative by engaging youth in a
In brainstorming sessions, students
Communities was started, which until now
consultative process. Funded by Simple
identified lack of funding for startups as one
has been the key driving force in promoting
Brands, Startup Mzansi’s objectives were
of the biggest barriers to entrepreneurship
entrepreneurship culture.
to understand youth views about the
development in the country. They were of
Communities representatives are also part of
Startup Mzansi
Startup Magazine • www.startupmagazine.co.za • 11
UPSTARTING SOUTH AFRICA'S NEXT- GENERATION STARTUP CREATORS "We strive to be the recognized leader in startup success, renowned for the quality of our teaching, learning, applied research and innovation."
ABOUT THE INSTITUTE Startup Institute for Leadership & Excellence is Africa’s only accredited Higher Education Institution dedicated solely to developing High Impact Entrepreneurs running startups across Africa, creating new wealth and jobs for all its people Whether for students, faculty and staff members or partners, we want to be the preferred choice for programs and services among post-secondary institutions.
Our programs will give you the skills, mindset, and network to find a job you love, doing work that matters. We’ll help you leverage your passions and build the technical skills, culture skills, and network that will launch you into the innovation industry in the areas of web development, web design, digital marketing, or sales and account management. Uniquely positioned at the center of tech ecosystems in Jozi, Durban, and Cape Town, we’ve designed our programs to open new doors for you. In addition to expert training in the most in-demand skills, we offer personalized career mentorship and connections to the people and companies that will advance your career.
Through our flexible program delivery and leveraging of technology, we encourage those we welcome to the Institute, as well as the entire community, to be lifelong learners.
WHY CHOOSE US? Accredited and registered academic qualifications
A highly experienced and qualified faculty of lecturers High calibre mentors and awesome network
CONTACT US Phone
:
0861 STARTUP (7827887)
:
study@startupinstitute.co.za
Website
:
www.startupinstitute.co.za
12 • Startup Magazine • www.startupmagazine.co.za
In partnership with:
Scan the QR code
the managing committee, sub-committees,
face when it comes to venturing into
that the government consider creating
and are now becoming young leaders of the
entrepreneurship. The aim is to initiate a
real business development centers for
Foundation. We also shared with them the
wave of entrepreneurial development that
incubation and mentorship of students to
democratic system in business associations
not only encourages potential entrepreneurs
help aspiring entrepreneurs. They said that
such as election processes, the role of
through technical assistance, mentoring and
government support is needed to promote a
managing committees, and other leadership
capacity building, but ultimately contributes
culture of entrepreneurship and universities
positions.
to the overall economy by creating job
should introduce entrepreneurship subjects.
opportunities, and revenues for businesses
Participants also suggested that chambers
Through mentorship programs, Startup
as well as the government. Several Captain
of commerce should provide platforms to
Mzansi members are invited by universities
of industry and government are expected
help students along in their entrepreneurial
and youth organizations to offer lectures
to speak at the assembly, about how
career.
that inculcate a spirit of entrepreneurship
entrepreneurship can promote economic
in youth. Startup Mzansi has also supported
growth, peace and prosperity.
universities in introducing entrepreneurship
In order to understand how corruption impedes the startup process, Startup Mzansi
as a subject and encouraged students to
In partnership with several partners Startup
undertook an initiative to conduct an
take internships in the private sector to
Mzansi will hold events. Other partners
anti-corruption survey. The survey report
get a feel for the business environment.
in these events are the ZA Domain Name
“Unpacking Corruption” presents opinions of
This initiative has increased the number
Authority and Vaal University of Technology.
the business community on the perceptions,
of business plan competitions and now a
The students underline the need to develop
manifestations, causes, effects, and remedies
few universities have established incubation
a better entrepreneurial culture by making
of corruption in South Africa. This document
centers on their campuses.
entrepreneurship an integral part of
will become part of an advocacy campaign
educational curriculum. They are of the view
by Startup Mzansi Foundation to improve
In 2017, Startup Mzansi is organising a major
that private sector support in mentorship
the South African business environment by
youth assembly on the theme of “Inspiring
programs at college and university levels
addressing needed reforms. An important
a New Wave of Entrepreneurship.” The
could greatly help in promoting an
message of the report is that corruption
main focus of the assembly is to promote
entrepreneurial culture in the country.
is viewed as a governance issue, which
the culture and spirit of entrepreneurship
includes poor law enforcement, archaic
amongst the young individuals of the
During consultations students also discussed
regulations, and a weak internal compliance
country. The gathering will highlight the
several challenges they expected to face
system. Learn more at
main challenges and opportunities youth
while starting a business. They demanded
www.startupmzansi.org.za. SM
Dreams are worth chasing. #STARTUPMZANSI
#STARTUPMZANSI
Startup Magazine • www.startupmagazine.co.za • 13
I am on a mission to positively impact the world through the use of my innovation capabilities. #IamStartupGuy
14 • Startup Magazine • www.startupmagazine.co.za
STARTUPGUY
SANDILE SHABANGU CONFESSIONS OF A STARTUP ENTREPRENEUR
I
n
the
fast
paced
them and own your mistakes and use your
and
failure as a learning curve so as to curb
technology driven world,
such from happening in furure. The ball
startup entrepreneurs are
really is in your court.
YOUR PRODUCT
challenges. I am saying this because I
My journey as entrepreneur dates back
WAY BEFORE
too have experienced such in my journey
to my high school years when I was
towards building my own dreams.
challenged with a challenge of either
information
often inundated with some pretty great
MARKET AND SELL
BUILDING IT
fitting into the crowd or distinguish myself. WHO IS THE STARTUPGUY?
I took the latter and must really admit that
I am a Social Startup Creator [entrepreneur]
it was such an easy task not. Reason being
and have founded several startup
that I used to compare myself with my
companies. I am the Creator of Startup
peers and quite honestly such a behaviour
Mzansi Ventures and its Foundation.
has proven to me the notion that “if you
My interests lies in how people use
compare yourself to others, you may
technology, I believe that technology
become bitter or vain, for always there will
is only useful if people use it and how
greater and lesser persons than yourself.”
people, education and technology can be merged together to better the lives of
While I could easily catch up with my
ordi- nary citizens in Africa.
counterparts academically and otherwise, there were many things I was excluded
MY
JOURNEY
AS
A
STARTUP
ENTREPRENEUR Often times, one
to do, simply because I could afford them not and this was mainly due to my family’s
finds themselves
socioeconomic status. A challenge still
confronted by a wall of some sort, failure,
faced by many young people, even in the
rejection etc. Serious deliberations ought
so called democratic South Africa. I come
to be made as to how to best solve such
from an average family. We had food and
a predicament. The question is to whether
clothes, roof over our head, the basics.
to go over the wall or bring it down or
Even though I do not really know where
just dig a hole to go beneath it. This is
such came from. God?, Government?, the
where resilience comes in – some pretty
Church? I was a kid but knew that we were
good tactics needed here. If you make the
really not poor.
Two roads diverged in my life. One was leading to a confined environment, filled with all the wits and comfort. The other one was leading to a challenging expedition to explore a completely diverse world of People, Education, Technology and Entrepreneurship. I took the latter.
wrong choices, you gotta learn to live with Startup Magazine • www.startupmagazine.co.za • 15
Fast-forward to the older me. It’s the year 2009, I move to the
in Chemistry so as to become a chemist. By the end of my first
place of Gold, Joburg, to scout for greener pastures. I had
academic semester in Chemistry, I changed to the Computer
applied to attend university and because I was one of the high
Sciences department as well as adding Law and Marketing
school course chower, I got accepted and did Actuarial Science
modules. I’m excited about the new things I’m learning here
but dropped out way before Shabalala scored Bafana Bafana’s
but what really excites me the most is the connections I make
first goal in the 2010 World Cup...This was mainly because the
outside my academic work. International travels, conferences,
entrepreneurial seeds in me have started sprouting.
good wine, nice life... This is the peak of my academic life. Couldn’t be much grateful!
I remember back in 2010, while many people were caught up in “Feel it, it is here” spirit, I founded Simple Brands (Pty) Ltd and
During the last session of my short course on Self Awareness
worked for several months building a website design software
and Empowerment, several questions come into play. Why do I
for schools. I was working on an alpha version for several weeks;
do the things that I do, why even attend this university, why am
then, I began to connect with potential clients and show them
I here? What is it that I am trying to prove and to whom? What is
what I had done in order to get feedback (and hoping to turn
the one thing that I am longing for in my life. Change becomes
some of them into tangible clients).
the answer to the last question. But why, I ask myself. A journey of self exploration starts.
I was excited to start showing my “baby” to the real world. But no magic happened ... People were just not that interested in
I then realise that I am because of who I was yesterday. I owe
what I had built. After a few more weeks it started to become
it to my roots to do things out of the ordinary. Suddenly, I get
clear that I was working on something that my clients didn’t
channelled to the right train of thoughts...
want or maybe they didn’t know that they want at all. According to me, my product was solving a problem, but NOT according to
I want to disobey what history poisoned people to think,
my prospective clients.
that I cannot be like Sir Richard Branson, Charlie Chapman or Michalangelo or Aristotle and never will I make a covenant with
I came to the conclusion that all these months spent working on
failure or mediocrity. I am going to rise above the average. After
my brainchild had been:
all I am Sandile Shabangu, the StartupGuy, an extraordinaire who is on a mission to create positive social change and
• a waste of time;
contribute to human progress.
• a waste of money, and; • a waste of energy.
I find myself in the midst of a sick society. I realise my inspiration in life and my true purpose. I then develop my personal
I must admit that it was a serious blow to my pride.
model, the PETE Model. I’m passionate about People, Education,
Uncomfortable moments right there.
Technology and Entrepreneurship (what I call PETE) and aspire to become a champion in this. I am upwardly mobile and not
Since that day I have read hundreds of articles about
stuck in my station in life. I’m not guilty about making money or
entrepreneurship; I have connected with startup leaders from
spending it. The rest is history.
all over the world, been to dozen conferences... I even attended the University of Cape Town and GIBS... All in order to better
The company I founded, Simple Brands has now grown to
understand how to build successful businesses.
become a Digital Marketing Agency for Startups. Because of the hardships I had experienced when I founded my startup,
And since then I have been exposed to a methodology which
issues of getting unbiased support, I get motivated to start
generates much more success. It increases your chances
another organisation, a Non Pro t Company this time, that will
at succeeding. Today, I use it to build all my products and
help young entrepreneurs launch their startups with the best
services (I even used it to build Startup Mzansi Ventures and it’s
resources available. There’s gotta be lots of people involved.
Foundation): Startup Mzansi Foundation NPC, a youth startup development
“Marketing and selling the product. Then, building it.”
organisation that facilitates the creation and growth of startups. It is basically a social venture accelerator helping startups.
It’s now 2012, I had moved to Cape Town the previous year and
Once you get the taste of being your own boss, it becomes very
had decided to put on my academic belt and enrolled for a BSc
difficult to ever go back to being a “part in the wheel” within
16 • Startup Magazine • www.startupmagazine.co.za
“
Being an entrepreneur is not right for everyone.
a big corporate environment. Nowhere else can you get
until the business has “legs”. If you need the comfort and
the thrill of making senior level decisions across a wide
security of bi-weekly paychecks to cover your bills or
range of business topics (e.g., strategy, nance, marketing,
lifestyle, don’t get involved in the early stages of a startup.
technology, operations). The buck stops with you (literally!), and the success or failure of your business falls squarely on
Lastly, being an entrepreneur is not right for everyone.
your shoulders, based on the decisions made by you and
Make sure you have a real appetite for the risks at hand,
your team. That may sound a little daunting, at first. But,
a real passion for your product and a rampant con dence
trust me, it is very exciting.
in your ability of building a great startup, before jumping in. But, once you do make the leap, hang on for one of
But hey I must say that there are some pretty great
the wildest rides of your life!! As start- ing and growing
challenges in the jouney as a startup entrepreneur. The
your own business really is one of the most-rewarding life
obvious one would be living broke.. Let’s face it, it is not
experiences you can have.
easy ploughing all your hard-earned savings into a risky startup, not getting paid in the early months of getting the
I hope you have enjoyed this journey. Make sure to keep
business off the ground and not being sure where your
abreast with development with Startup Mzansi to help you
next paycheck is coming from.
build the next STARTUP THING. And, be sure to share them with your entrepreneurial friends who may also find them
Unfortunately, unless if you are wealthy from other means,
useful for building their own startups. SM
launching a startup with hopes of a long term payback, often comes with the strings of living very sparingly
ends january 31 terms and conditions apply
Startup Magazine • www.startupmagazine.co.za • 17
18 • Startup Magazine • www.startupmagazine.co.za
INTRODUCING
the StartupApp® A one-shop for startups and investors in South Africa
A
everything you need to start and stay started in business. in one place
t a fundamental level,
Startup Mzansi Foundation to create
• Provides them with access to existing
starting a business, sole
the StartupApp. StartupApp is an online
learning resources (tutorials, templates,
proprietorship,
dashboard that:
case studies) and live support;
non-
profit or social enterprise
• Supports them along the continuum of
requires much of the same knowledge,
• Provides a meeting place and voice for
enterprise growth from startup to rampup
skills
entrepreneurs;
to acceleration;
South African entrepreneurs continue to
• Aggregates resources and support
• Provides a marketplace for entrepreneurs
struggle with navigating the ecosystem
available to entrepreneurs based on their
to find co-founders, exchange services
and finding the support they need. South
location, demographic profile, stage of
and post jobs; and
Africa thus needed a one-stop shop for
firm development and industry;
• Feature inspiring articles, multimedia and
startup inspiration, support, learning and
• Connects them to online and in-person
case studies to encourage South African
connectivity - one that is free, online,
networks, communities and associations
entrepreneurs to think bigger, think
dynamic, easy-to-use, comprehensive,
of relevance to them;
globally, be sustainable, and leverage
personalized and user friendly.
• Informs them of events and opportunities
innovation and technology to grow.
and
understanding.
However,
to learn and connect with others in the This is what has fueled the folks the
community;
Learn more at www.startupapp.co.za. SM
Startup Magazine • www.startupmagazine.co.za • 19
startitup
campaign
2017 is the national year of the startup
T
“At a time when South Africa’s biggest issue is youth unemployment, businesses and governments must work together to help young people develop an entrepreneurial mindset.“ Sandile Shabangu
The #StartupItUp2017 aims to help create and build
Startup Mzansi Foundation NPC has offered an incredibly low
an entrepreneurial South Africa and help existing
startup cost of R250 for new businesses to get registered.
businesses grow and expand by offering reliable business support to all those involved.
GROW UP Existing companies can join the #StartItUp2017 campaign and in
The campaign
return get help and
has
main
support from all the
branches: Start
2
campaign supporters
Up – encourag-
to grow their startup.
ing the formation of new busi-
All supporters cover
nesses;
Grow
a range of issues that
Up – helping
growing companies
existing compa-
face with a mixture of
nies grow and
experience of growth
expand
with
management
practical
solu-
campaign support-
tions and advice
from
ers.
from all campaign partners. JOIN THE CAMPAIGN START UP
All existing businesses and potential new businesses can join the
The campaign aims to help inspire at least 10 000 young South
campaign and get the help from the #StartupItUp2017 support-
Africans to create new businesses and offer the right advice and
ers. You can join us by visiting www.startitup.co.za.
support for them to form and sustain their newly formed startups. South Africa leads Africa in being the quickest and easiest place to
The campaign is looking for more supporters prior to an offi-
create a business and we want to use that advantage to start an
cial launch and has a number of new supporters that will be
entrepreneurial spirit within South Africa.
announced shortly. Whilst 10 000 new startups is a big goal, we believe that our initial supporters have got us off to a good start.
To help achieve the goal of helping 10 000 new startups, the
20 • Startup Magazine • www.startupmagazine.co.za
If you would like to become a supporter please contact us.
Startup Magazine • www.startupmagazine.co.za • 21
so why did you start your business? a conversation with a lawyer turned startup creator words by bradley gumbi
P
eople launch their own business for a variety of reasons, whether it’s spotting a gap in the market, moving on after redundancy or pursuing a hobby. Some motivations are better than others and it
has been said by many “successful” business owners that one of the worst reasons to start a new business is just to make money – there are far less painful ways to do that! Don’t get me wrong, a business obviously has to make money but setting one up for that reason alone could be setting yourself up to fail. Surely you have a greater goal? A goal that having the money generated by the business will enable you to achieve: retiring early so you can go travelling, spending more time with your family or making a real difference to the world in some way. Money can certainly enable you to do these things but shouldn’t be the main focus and as Colin Wright says, “Chase your passions and money will come. Chase money and you may never find your passions” People trying to make a “quick buck” or looking for an overnight formula to get rich are missing the point. Unless you are chasing something more than just money, you will give up easily. Running your own business is one of the hardest things you can do and the road is challenging so you need to have a “mission” to guide you and get you through the tough days. Plus, you miss out on the fun of running your own business: the challenge. I see my involvement in our business like a game, a game where I am both creator and player; there are some loose rules and paths to victory but ultimately it’s fluid and up to me. This is the essence of why I love running our business: I dictate the terms. I decide who plays this game with me, how we play
22 • Startup Magazine • www.startupmagazine.co.za
and how we win. And taking this concept
the full story – where have you been and
a step further, if you lose the game (your
where are you going?
business fails), you can start again and try another business.
You don’t need to have a “mission” per se and global domination isn’t for everyone,
Some business owners can forget why
regardless of what the current rhetoric
they started playing the game because
is on “businesses of scale” however, it is
they get ground down by the pressure
important to consider why you’re running
of running their own business. It’s not
your own business. What’s your purpose?
difficult to lose your way and forget why you started your business, after you wade
One of the thought-leaders in this area
through bureaucracy, accounts, marketing
is Simon Sinek, author of the Book, “Start
and everything else in between – plus,
with Why”, and he argues that people buy
you still need to deliver your goods and
“why” you do what you do and not neces-
services to customers. And then there’s
sarily “what you do”.
competitors, the economy and technological changes!
One of the many examples Sinek cites is the Wright brothers, who successfully pio-
Ironically, you may have set up your own
neered the first manned-flight. He argues
business to give you freedom and control
that the odds were stacked against them:
in your life, however, the very opposite
their rivals were better funded, received
is now the case – the entity you set up
much more press attention and had a
to help you achieve your goals now con-
“better” qualified team, however, despite
sumes you and prevents you from doing
all of that, it was the Wright brothers who
so! Instead of spending more time with
achieved their goal first. Why? Because
your friends and family, you see them
they had a burning passion.
This feature was made possible by Amanda
less. Instead of travelling the world, you are unable to take even one day’s holiday.
Sinek suggested that their better-funded
Instead of doing what you want to do,
competitors were only doing it “for the
you are at the mercy of your business,
money” and proof of this is that they
which dictates your actions. But it doesn’t
gave up the day after the Wright brothers
have to be this way!
achieved the goal, as opposed to finding out how they did it or wanting to improve
Remember why you set up your business.
on their method. He condenses a lot of
It may not have been obvious or explicit
these ideas into this excellent 20 minute
at the time but there will be a reason.
TED talk, “How Great Leaders Inspire
Check in with yourself, is this still your
Action” and we highly recommend it.
desire? If so, figure out how to change the rules of your game to make it more
“The two most important days in your life
fun and so you can win; if not, maybe it’s
are the day your are born…and the day
time to find a new game.
you find out why. – mark Twain.
What’s Your Purpose? What’s your “WHY”?
So what about you, what game are you
I like hearing peoples’ stories and, more
playing? And more importantly, why?
importantly, why they do what they do.
Why did you launch your business?
Yes, I can read their website and marketing literature, but that doesn’t give me
Some business owners can forget why they started playing the game because they get ground down by the pressure of running their own business.” Startup Magazine • www.startupmagazine.co.za • 23
24 • Startup Magazine • www.startupmagazine.co.za
5 things you need to know about IP 1.
Every
business
owns
some
Intellectual Property (IP) – whether startup or SME it’s important to identify what this is at an early stage; do you know yours? You may have a trademark, patent, design or something protected by copyright but it’s important to know the difference. These intangible assets add value to your business and can give you a competitive edge. 2. A brand isn’t automatically protected – even if you are a private company or you possess a domain name for your website you still need to register a trademark and logo with the Companies & Intellectual Property Commission (CIPC). This is because someone else may have a similar name or brand to you. 3. You need to do your homework! Research
into
intellectual
property
protection is key; it can be a time consuming process if you don’t know
I have always sought and dreamt of an amalgamation of both my passions; entrepreneurship and law.
where to start. The CIPC website is the best place to start, you can search online for current trademarks and logos. 4. If you have innovated recently you need a patent – if you have invented something recently the chances are you will require a patent to prevent your idea from being copied. A patent covers how products work, how they are made, what they do, how they do it and what they are made of. Even if something similar exists in the market place, you may have discovered a new way to bring this product about in terms of how it is made and a point of difference exists between them. 5. Exactly what a patent protects – it gives you 20 years of monopoly on the market to produce your product. It also allows you the upper-hand in legal action against anyone challenging your product; for example this might be someone trying to import a copy produced without your permission. SM Startup Magazine • www.startupmagazine.co.za • 25
5 steps to create a marketing plan Put together a detailed marketing guide for business growth.
W
hile your business plan generally outlines your entire business, a stand-alone marketing plan focuses specifically, and in more detail, on just that one function. When business owners want to dive deeper into their marketing strategy, they will likely put together a detailed plan that outlines their marketing goals—as well as the steps needed to accomplish them. Here’s a five-step process for developing a marketing plan that will help you achieve your goals for business growth.
STEP 1: LOOK INWARD Think of your company as if it were a person with its own unique personality and identity. With that in mind, create separate lists that identify your business’s strengths, weaknesses and goals. Put everything down and create big lists. Don’t edit or reject anything. Then, find priorities among the bullet points. If you’ve done this right, you’ll have more than you can use, and some more important than others. Kick the less important bullets off the list and move the ones that are important to the top.
STEP 2: LOOK OUTWARD The next list you’ll need to make outlines your business’s opportunities and
5 SOCIAL MEDIA MISTAKES YOUR STARTUP MUST AVOID
26 • Startup Magazine • www.startupmagazine.co.za
threats. Think of both as external to your business—factors that you can’t control but can try to predict. Opportunities can include new markets, new products and trends that favor your business. Threats include competition and advances in technology that put you at a disadvantage. Also make a list of invented people or organizations that serve as ideal buyers or your ideal target market. You can consider each one a persona, such as a grandmother discovering e-mail or a college student getting his or her first credit card. These people are iconic and ideal, and stand for the best possible buyer. Put yourself in the place of each of these ideal buyers and think about what media he or she uses and what message would communicate your offering most effectively. Keep your identity in the back of your mind as you flesh out your target markets.
STEP 3: FOCUS ON STRATEGY Now it’s time to pull your lists together. Look for the intersection of your unique identity and your target market. In terms of your business offerings, what could you drop off the list because it’s not strategic? Then think about dropping those who aren’t in your target market. For example, a restaurant business focused on healthful, organic and fine
➊
STARTING WITHOUT A PLAN. If you’re tempted to skip creating a social media strategy for your business that outlines your goals and the resources you’ll need to accomplish them, don’t do it. By developing a plan, you create a critical foundation on which the rest of your social media efforts are based.
dining would probably cater to people more in tune with green trends and with higher-than-average disposable income. So, it might rule out people who prefer eating fast-food like hamburgers and pizza, and who look for bargains. The result of step three is strategy: Narrow your focus to what’s most in alignment with your identity and most attractive to your target market.
STEP 4: SET MEASURABLE STEPS Get down to the details that are concrete and measurable. Your marketing strategy should become a plan that includes monthly review, tracking and measurement, sales forecasts, expense budgets and non-monetary metrics for tracking progress. These can include leads, presentations, phone calls, links, blog posts, page views, conversion rates, proposals and trips, among others.
STEP 5: REVIEW OFTEN AND REVISE Just as with your business plan, your marketing plan should continue to evolve along with your business. Your assumptions will change, so adapt to the changing business landscape. Some parts of the plan also will work better than others, so review and revise to accommodate what you learn as you go.
➋
TIMING SOCIAL MEDIA POSTS POORLY. One of the biggest mistakes I’ve seen startups make is not knowing who the customer is and how he or she behaves on the social web. A report from my marketing analytics firm KISSmetrics shows that tweets posted at about 5 p.m. have the highest chance of being clicked on and shared.
How to launch a social media marketing plan Don’t waste time on Facebook and Twitter. It only takes 24 hours to roll out this game plan.
I
t only takes one day—24 hours—to launch a social media marketing strategy for your startup. That is, if you know how to spend your time. To keep you from entering the social media time vortex, here’s a step-by-step, hour-by-hour guide to designing, building and rolling out your own web 2.0 marketing plan. Ready? Begin! 00:00 - 02:00 CREATE A SIMPLE WEB PAGE The fact is, no matter what social media webs you spin, your business still needs a single, easy-to-find web space that defines your brand message, matches that brand to basic search terms customers might use to find you and provides clear and accurate contact information. Tools to use: Do not bother with pricey web designers or developers. Basic website tools like those from Google Apps, Windows Live and Intuit Websites offer powerful low- or no-cost web services that work perfectly well.
what will emerge is a coherent, up-to-date personal and professional image of you and your company. 12:00 - 14:00 GO REAL-TIME WITH TWITTER You are ready to add in the fast-twitch marketing muscle of Twitter. Tools to use: Start with a personal, rather than a company, Twitter feed. The goal here is to follow your customers, tweet about what’s relevant to your business, retweet content that’s interesting to your customers and offer short, concise thoughts on your market. A few tweets a day is more than enough.
02:00 - 06:00 CONNECT WITH YOUR CUSTOMERS ON LINKEDIN LinkedIn has all the information on your best customers laid out right where you can find it. Tools to use: All you need is a solid personal profile touting your experience, why someone would want to do business with you and about a half-dozen recommendations.
14:00 - 18:00 TINKER WITH SOME COOL STUFF Before you go live, take a few hours to test-drive some of social media’s latest tools. Foursquare: The goal is to reward loyal customers with preferential treatment and discounts. Groupon: This tool lets you offer a deep discount on a single day for a single product to drive awareness and business. But be careful, your operation may be flooded with deadbeats who have no intention of returning to pay full price. ShareSquare: This site uses customizable barcodes that can be loaded with company information and placed into printed materials, where customers then use their smartphone cameras to capture the encoded info.
06:00 - 12:00 PROFESSIONALIZE YOUR FACEBOOK IMAGE Facebook is fabulous for posting an up-to-the-minute log of what you and your business are doing. Tools to use: You will need a personal Facebook profile and a business page. By regularly posting fresh links, posts, images and branding information, slowly
18:00 - 24:00 TEST. ADAPT. UPDATE. REPEAT. Now comes the critical part: learning to keep things manageable. Considering the power and potential of even one of these tools, it’s easy to get distracted by the sheer vastness of it all. Don’t sweat it. You only need to serve a few new customers.
➌
BREAKING SOCIAL MEDIA RULES OF ETIQUETTE. Don’t start a social media campaign without having at least a basic understanding of some of the rules. Here is a simple list I follow: 1. Start conversations by asking thought-provoking questions. 2. Don’t follow someone on Twitter, then unfollow them when they unfollow you. 3. Promote other people as well as your own brand. 4. Don’t spread yourself too thin.
➍
FAILING TO MEASURE SOCIAL MEDIA SUCCESS. Although it might not be easy to measure something like a conversation, you are able to measure factors such as your total online community size, the number of mentions of your brand across the social web and all the traffic referred to your business’s website. These useful tools can help: PageLever, Simply Measured and SocialMention.
➎
IGNORING YOUR COMPETITORS. Knowing who your competitors are and what they are doing is just as important as knowing everything about your own business. To keep an eye on your competitors over social media, look at their website, locate their social media icons, sign up as a fan and start watching what they do. It’s just as important to see what their fans are saying and use those reactions to improve your own business.
Startup Magazine • www.startupmagazine.co.za • 27
it’s boom time
for the Startup generation
There has been a flurry of new businesses launched by youthful entrepreneurs seeking creative ways to survive the global economic squeeze, writes Catherine Smith
j
obs are scarce and economies
Startups are mushrooming all across the
To gear you up for your entrepreneurial
tight, but around the world young
business landscape – but many of these
journey, today we profile 20 top young
innovators and startup creators
will shut shop even before they declare
people making waves in South Africa
are rising to the challenge. People
it open to the market. Some will float for
through their creative entrepreneurial
such as South African-born Elon Musk,
a while, struggling to swim against the
skills.
the founder of SpaceX and Tesla electric
challenges that every startup is faced
cars; actress Jessica Alba, who created
with, and eventually drown or give up.
This compilation of inspiring young
the a multibillion dollar company from
And then, there will be those who will
entrepreneurs who are making a
environmentally friendly nappies; and
rise up to the challenges and change
difference in South Africa is by no
Facebook founder Mark Zuckerberg, are
the face of an industry, partially because
means a definitive list, but we feel the
inspiring the youth not only to earn their
of foresight and partially because they
20 people under the age of 40 have the
fortunes but to make the world a better
understood what they were up against
entrepreneurial, innovative spirit to lead
place at the same time.
and planned better.
South Africa to a prosperous future.
28 • Startup Magazine • www.startupmagazine.co.za
Thatiso Dube FASHION Designer Thatiso Dube’s label Galxboy, began in 2008 while he was still in high school, but back then it was known as Cheeseboy – a T-shirt brand funded by a R20 000 investment from friends and family, and inspired by what girls do because of boys, and boys because of girls. While working on his own personal brand, as well as designing for Amakipkip, Dube rebranded his 2008 startup as Galxboy in 2012, and opened his first store in 2014, hitting the R1 million revenue mark. Naturally, the brand stayed loyal to two things: its vision and design. Galxboy, as a high-end, street-focused
hopes will be valued forever. She’s certainly
Mkize has brought much-needed diversity
tapped into this sentiment successfully
to comics, where, as the artist explains,
– you’d be challenged to find a South
young South Africans have never had
African model, stylist or magazine team
a superhero with which they share
not in love with Famke’s beautiful designs.
appearance, language, experience and environment. Through his project, Mkize
Nick Kaoma FASHION
is exploring both the power of comics, as well as their ability to empower.
Nick Kaoma co-founded lifestyle and fashion brand Head Honcho in 2008
Mkize also paints as a method of
and has been making great strides
documenting his ideas. His subjects
in the industry ever since. The fashion
are generally African, and his focus
house,
is to explores the complex nature
a
which
household
has name,
quickly
become
specialises
in
that makes up this modern man, his
producing streetwear under two names:
environment, predisposition and culture.
Head Honcho and 15 Grand, which he co-founded with partner Mzoxolo Gcwabe.
Inga Gubeka CREATIVES
After growing impatient with his studies,
Not only is Inga Gubeka the creator of one of
Nick dropped out and worked as a waiter,
the most unique and interesting products
then as a sales executive, blogging in his
in the country right now, he recently
spare time. He used the streets of Cape Town
became the first man on the continent to
designs and creative work for Galxboy.
as his classroom while working towards
have a Glenfiddich whisky named after him.
Famke Koene FASHION
brand, Nick made strategic connections,
Best known for the wooden cylindrical
linking with powerhouses like Miller’s
backpack he designed, as well as his range
and Play Energy drink, as well as with
of iPad cases, lamps and clocks, 28-year-old
local stars AKA and Lulo Cafe, attracting
Inga established his brand Indalo Decor
widespread coverage and becoming the
back in 2012. Originally an interior design
first local brand to be stocked in Shesha
company, Inga decided to change the
and Sportscene outlets countrywide.
focus to accessories, while maintaining the
fashion brand, clothes South Africa youth and is taking South African street fashion to a more competitive level in terms of design. Dube presently manages all
A familiar sight at design shows and markets around the country, Famke Koene has steadily built her jewellery brand into one of the most recognisable and sought-after in South Africa. Based in Cape Town, Famke produces simple and beautifully designed sterling silver and brass lifestyle pieces as well as bespoke and original engagement rings and wedding bands. After completing a year at the prestigious Design Academy in Eindhoven, Netherlands, Famke returned to Cape Town to study at the Cape
a career in fashion. After launching the
natural aspect of the brand (‘Indalo’ means Ranked fourth on the Forbes Africa’s Most
nature in Zulu and all products are made
Promising Young Entrepreneurs in 2014, he
out of eco-friendly woods and leathers).
also found his place on Mail & Guardian’s M&G 200 Young South Africans list in 2013.
Loyiso Mkize CREATIVES
Inga’s
passion
for
innovation
and
entrepreneurship has led him to some exciting projects, like the whisky case he designed, and he’s recently opened his
Loyiso Mkize is a South African designer
second store in Braamfontein. Counting
and fine artist who got his start in comics
Alek Wek
Design and Manufacturing in 2010.
as an illustrator for the long-running Supa
amongst his supporters, it’s safe to say that
Strikas soccer series. He has since founded
Inga is going somewhere and his plans to
Since Design Indaba 2011, Famke has been
his own visual arts and communication
expand overseas this year are testament
company, Loyiso Mkize Art (Pty), which is
to his ‘go big or go home’ mindset.
Peninsula University of Technology where she received her diploma in Jewellery
stocking boutiques around Cape Town and Johannesburg, while selling out at shows and markets such as Design Indaba and Kamers vol Geskenke, The Collective and The Neighbourgoods Market. Geometry and bone castings have been the signature themes around which Famke constructs imaginative and striking jewellery that she
responsible for publishing his energetic
and
Candice
Swanepoel
Kwezi(‘star’in Xhosa and Zulu) which follows
Maps Maponyane CREATIVES
the tale of a teenage boy as he discovers
Starting his career as a model and
his superhuman abilities amid the daily
entertainer, Masego “Maps” Maponyane
hustle of the fictional Gold City – a modern
quickly rose to stardom after his
metropolis inspired by Johannesburg.
first campaign in 2009. From the
South African superhero comic book,
Startup Magazine • www.startupmagazine.co.za • 29
GQ Best-Dressed List to being voted Cosmopolitan’s Sexiest Man in 2013, Maps continues modelling today, making regular
appearances
in
magazines
that have turned his dream into a reality.
Sparks flew and the two created a masterful art piece that was followed by
Regina Kgatle SOCIAL INITIATIVES
a number of productions. These included Prisoner 47674: The Untold Legacy of
– and on screens, red carpets, runways
Cleverly disguising educational content
Andrew Mlangeni, as well as The People
and billboards around the country.
in arcade-style games, Regina Kgatle is
versus The Rainbow Nation: a documentary
blurring the boundaries between learning
produced in collaboration with MTV which
After venturing into presenting, writing
and play. Her company, Educade, offers
followed the #FeesMustFall movement.
and acting, he added ‘entrepreneur’ to
a selection of games that are suitable for
Having since made a number of appearances
his lengthy list of appellations when he
the national curriculum, and each game is
in local publications, the creative says
launched his first fashion label, and joined
housed in an Educational Arcade Machine
that he is driven by many things, but of
specialist bank and asset manager Investec
made from e-waste and other recycled
tantamount importance is reminding
as a brand ambassador. Most recently, he’s
materials. Educade emphasises the positive
South Africans how great our nation is,
teamed up with the founders of Tuta-Me, an
role of teaching through technological
and to inject a sense of positivity where
app designed to place and connect tutors
platforms,
of
possible. If this doesn’t make a noteworthy
with learners – taking care of branding
play as a learning incentive. Over time,
impression, we’re not sure what will.
and marketing to ensure that students
Kgatle hopes, her arcade games will
know how to get what they need to excel.
not only address gaps in the education
Intimidating? Nah. At the end of the
system, but will also instill a love of
Emmanuel Bonoko SOCIAL INITIATIVES
day, Maps is just an all-round nice guy.
learning in the children who play them.
Emmanuel Bonoko is a social entrepreneur
and
the
importance
that makes you want to do better. In 2012,
Donald Nxumalo CREATIVES
In 2013, Kgatle was invited to Kuala
when he was just 21, he founded the
Lumpur for the Global Entrepreneurship
Ebonoko Foundation with the aim of serving
To fund his fourth year of study in
Summit, to discuss the importance of
others and fostering leadership, youth
Interior Design at Tshwane’s University of
innovation and social entrepreneurship
empowerment and entrepreneurship. One
Technology, Donald Nxumalo did what
in addressing pressing global issues.
of their main initiatives is a book drive that’s
most 20-year-olds wouldn’t do: he started
The following year, Facebook flew her
seen over 12 000 books collected over
a business. His idea was to approach local
to the US where she received an award
the years and donated to under-resourced
shops in his area and offer to redesign their
recognising young students changing
schools, charities, libraries, prisons and
spaces for a fee. Surprisingly, it worked.
lives through technology. Kgatle has
community centres. This has led to other
From
had
also been listed on Mail & Guardian’s 200
successful projects undertaken by the
an
a
young
age,
appreciation
architecture,
Young South Africans (2013), and on the
foundation, including youth mentorship
antiques and design which prompted
Young People in International Affairs’ Top
programmes,
him
to
study
for
Nxumalo
Interior
campaigns,
and
35 under 35 African Leaders (2012) list.
career expos and seminar workshops
use his skills to fund his education.
In addition to Educade, Kgatle is also
focusing on business and leadership.
After
graduating,
Design
bursary
worked
the co-founder of LAM (Life After
for 18 months and then entered SABC
Nxumalo
Matric) a Non-Profit Organisation that
Most recently, he established the South
3’s Win A Home competition, in which
offers
previously
African Entrepreneurship and Business
interior designers were challenged to
disadvantaged
support
Awards, to recognise leaders who’ve
meet Steyn City’s promise of creating an
and mentorship beyond the classroom.
developed the economy through job
upmarket lifestyle resort. Nxumalo ended
matriculants
from
backgrounds
creation and development. But he isn’t
winning the competition and becoming
Lebogang Rasethaba CREATIVES
the preferred designer for Steyn City.
The South African-born writer, director and
African entrepreneurs featured on the
Fast forward a couple of years, and
filmmaker, returned to the motherland
Forbes Africa 30 under 30 list in 2016,
Nxumalo now has clients in Zimbabwe
after completed his Master’s in Film
was named a Lead-SA Hero by Radio
and Kenya, has flown to London to
Studies in Beijing, China. Upon his arrival,
702 and The Star newspaper in 2014
decorate, and runs his own business –
armed with great filmmaking skills and
and was featured on Mail & Guardian’s
DNX Interior Design. Although winning
fluent in Mandarin, he was approached
list of influential people in the same year.
the competition exposed Nxumalo to a
by his friend and fellow artist, Spoek
market he may not have reached alone,
Mathambo, to produce a video on the
In empowering the youth to start their
it is both his determination and passion
electro music scene in South Africa.
own initiatives, Emmanuel is taking serious
up making it all the way to the end,
30 • Startup Magazine • www.startupmagazine.co.za
just handing out awards, he’s receiving them, too. He was one of the five South
Startup Magazine • www.startupmagazine.co.za • 31
steps towards transforming the country. Humble, disciplined and
is prepping for a trip up Mount Everest without bottled oxygen.
devoted to making a difference, he may be starting out, but he’s already achieved more good than most hope to in a lifetime.
Neftaly Malatjie SOCIAL INITIATIVES
While his self-determination, successes and limit-pushing adventures are feats in themselves, it’s his need to give back that really sets him apart. He recently started the Monde Sitole Educational Strategies Foundation to develop a culture
Social entrepreneur Neftaly Malatjie appreciates the importance of
of achievement and excellence in education. The charity’s
young people and the impact they have on society. That’s one of
overarching aim is to get 700 000 of SA’s children back into
the reasons why he gravitated towards youth empowerment and
the classroom. No easy feat, but one he continues to work
has been working with young people since the tender age of 14.
tirelessly towards. Another offshoot of his foundation is The Desert Rose Adventure Club – an outreach program that works
The Diepsloot-born changemaker wanted to alleviate some
with boys from different backgrounds, channeling their zealous
of the nation’s poverty-stricken areas so he started his own
spirit into activities such as rock climbing and bouldering.
outreach program in 2005: The Diepsloot Youth Project (DYP), an organisation that offers career guidance and activities
His zest for life is inspiring and never ending – as we write this,
to young people in order to keep them off the streets.
Monde is currently leading a girls’ expedition up Kilimanjaro to fundraise money for education and the empowerment of women.
Following DYP, Neftaly set up the Southern Africa Youth Project, a by providing life-skills training and resources to those in need and
Thato Kgathlanye SOCIAL INITIATIVES
then working with them to find job placements. Passionate about
Uncovering creative solutions to seemingly impossible problems
change and constantly seeking new challenges, Neftaly also
has always been part of Thato Kgathlanye’s mission. As the founder
launched Zubuntu Management, a property agency, and has since
and CEO of Repurpose Schoolbags, she’s tackled everything from
set up small ventures on the side, establishing a furniture-making
the plastic pollution crisis to issues of education and poverty. Her
business, a branding and printing business and various retail stores.
latest solution is school backpack that’s been crafted from recycled
Non-Profit Organisation which focuses on up-skilling young people
Monde Sitole SOCIAL INITIATIVES
materials and fitted with a solar panel that charges up during the day so that it can be used as a light for studying after school.
In 2011, Monde Sitole was just 21, and he’d already acquired
Recycled plastic shopping bags are turned into a workable textile
an impressive amount of accolades, from attending school
and a retro-reflective material is incorporated into the design,
on board the SV Concordia that crossed the Atlantic Ocean,
improving the visibility of the backpacks, and therefore the
to climbing Mount Elbrus in Russia, Denali in Alaska and
safety of the children subject to early morning walks to school
Kilimanjaro in Kenya. Now 26, the adventurer, alpinist, poet,
in the dark. The bag is then fitted with a solar panel that charges
entrepreneur and youth leader from Khayelitsha is still on his
up during the child’s day at school and transforms into a solar
quest to summit the seven highest mountains in the world and
lantern that can be used to study for up to 12 hours afterwards.
broadcasting soon 32 • Startup Magazine • www.startupmagazine.co.za
host. If her name doesn’t ring a bell, we’re
ICT entrepreneur and innovator pieced
Repurpose
pretty sure you’ve been living under a rock
together the beginnings of moWallet,
Schoolbags, and the Rethaka company
or, worse – living life without the internet.
creating an application that would connect
as a whole (a for-profit, woman-owned
Bonang is perhaps best-known for
spaza shop owners with their customers.
business seeking to uncover solutions
breaking new ground in being the only
So, what makes moWAllet special? For
in places where there seem to be
face of Revlon outside of the United States.
starters, it caters for both smart and
none), Kgathlanye and her team will
She’s since launched a lingerie line with
feature phones using a USSD platform that
continue to drive social change, present
Woolworths, and her production house,
supports both – giving spaza shop owners
sustainable solutions and inspire others.
Bonang Matheba Entertainment. Already
a better chance to communicate with their
the recipient of more awards than she knows
audience, allowing them to distribute social
what to do with, we’re pretty sure that we’ll
products, vouchers, offers and food parcels.
Through
their
work
at
Buhle Ngaba MEDIA As the founder of KaMatla NPO and author
continue to see a lot of Bonang in future. The application has achieved much since
is bringing much-needed diversity to
Siya Beyile MEDIA
local children’s literature. Prompted by
Fashion bloggers seem to be a dime a
4th runner-up in GAP ICT Awards 2014
the singular and white narrative often
dozen these days, but few are able to turn
and is part of the Maxum programme
relayed in popular children’s literature,
their passion into a career and make a
(Incubation) at Innovation Hub Pretoria –
Ngaba set out to empower young
name for themselves in the process. One
proving that its arrival was long overdue.
South Africans of colour to write both
person who’s succeeded is Siya Beyile, the
themselves and their stories into existence.
owner and founder of The Threaded Man.
of The Girl Without A Sound, Buhle Ngaba
its inception, winning first prize at the first Start-Up Weekend Soweto 2014,
A leading fashion and lifestyle destination
Katlego Maphai TECH
With KaMatla NPO’s efforts focused on
for the African man, the blog features
Together with three friends, Katlego
developing the arts in underprivileged
style advice, pieces on top brands, trends,
Maphai co-founded Yoco, a mobile POS
communities, Ngaba is determined to
grooming tips and events. He also has a
startup that supports small to medium
create a legacy of storytelling among young
styling consultancy and offers services such
businesses
black South Africans by restoring them with
as content production and trend insights.
Identifying card payment options as a large
the agency and power required to express
Named by Forbes as one of Africa’s most
setback for new businesses, Yoco is a Point-
their own narratives, as opposed to seeking
influential people under 30, Siya went on
of-Sale Payments venture that reduces the
out those found in lands far, far away.
to snag the part of Creative Director of
complexity of processing card payments.
Fashion at this year’s South African Music
Using the Yoco app on a smartphone or
Her children’s book was born in defiance of
Awards (SAMAs) — all in the space of three
tablet alongside the integrated mobile
the fairytales of her childhood which often
weeks, proving that the young gentleman
card reader, businesses can now securely
spotlight a white princess narrative whilst
is surely a force to be reckoned with.
accept cards at their stores, or on the go.
reflecting little truth of her own reality as
with
smart
technology.
Through her writing, acting, and inspiring
Desmond Mongwe TECH
work at KaMatla NPO, Ngaba has and will
The winner of last year’s #HackJozi
of entrepreneurs in Africa, and small
continue to empower black youth to find
competition, moWallet, is an innovation like
businesses are its top priority. It prides itself
their own voices in a world where they
no other. Brought into being by Thato Selau,
on being a technology-driven, customer-
are often disempowered and dismissed.
Carol Dutton and Desmond Mongwe, the
centric organisation, made up of thinkers,
app caters to the large number of SA mobile
builders and connectors. Maphai and his
users who’d previously been neglected
team are dedicated to further developing
by
Yoco’s services and functionality, and
well as those of young black South Africans.
Bonang Matheba MEDIA
recent
technological
As a company, Yoco is passionate about empowering the growth and development
advances.
Starting her career as a kids’ show presenter
their passion is reflected in the positive
at the tender age of 15, Bonang quickly
The founder and Chief Technical Officer
impact they have already made on
rose to stardom, racking up awards and
of moWallet, Desmond, had suspected
small businesses across South Africa.
accolades along the way. From presenting
there was a way to connect the township-
SABC1’s Live Amp to holding a spot on
based portion of SA’s sixty million
South African radio station Metro FM, she’s
registered cell phone users with their
Mixo Fortune Ngoveni TECH
been busy ever since — working as a model,
immediate surrounding businesses and
Gone are the days when geekery
MC and businesswomen, and Top Billing
business owners. To address this need, the
was associated with all things nerdy
Startup Magazine • www.startupmagazine.co.za • 33
and boring, and up-and-coming tech enthusiasts have Mixo Ngoveni, the founder of Geekulcha, to thank for that. Founded in 2013, Geekulcha came to life after Mixo was selected to represent Tshwane University of Technology at the 2010 Microsoft Imagine Cup. Mixo recalled how he felt underprepared, lacking the adequate skills training to compete. Not wanting anyone else to go through what he had, he started building a network of young minds and established his ICTfocused initiative, with the hopes of bringing together skilled and creative young minds who wished to collaborate and receive further skills training in Information Technology-related fields. Just a few short years later, the organisation connects over 3 000 young people and has received both local and international acclaim. Geekulcha has since been profiled and published by the World Bank and Infodev and has seen Mixo make Mail & Guardian’s 2015 list of Top 200 Young South Africans and Sowetan’s Top 100 Young Bosses list in both 2015 and 2016. Mixo has not only made tech initiatives accessible to young
“Whether you’re preparing to launch your first startup, seeking connections to industry leaders or just curious about entrepreneurship, we have the resources to help you start and stay started.”
www.startupmzansi.org.za
people, but through his organisation has made them an enjoyable experience with projects like Random Hacks of Kindness, regular hackathons and digital training programs.
Nothando Moleketi TECH Identifying a need in South Africa for affordable, leading-brand smartphones from a trusted source, food writer and former consultant Nothando Moleketi co-founded ReWare, a business that sells preowned, high-end smartphones across South Africa. All ReWare smartphones are accompanied by a one-year guarantee, offering consumers as-good-as-new products at well below their original cost. Moleketi says that ReWare’s primary focus is reliability. To ensure the products are reliable, each phone that passes through the ReWare system must complete over 40 tests to check it is fully operational. The second-hand phones are inspected using specialised diagnostic tools to determine if any work might be needed, such as a new battery fitted, the screen replaced or new speakers fitted – while previous user data is wiped from the phone and its operating system is updated to the most recent version. After these rigorous checks, phones are given the stamp of approval and made available to purchase. Beyond extending smart technology to a wider South African audience, ReWare is also making a positive impact on the environment by keeping smartphones in people’s hands and out of toxic landfills – and Nothando makes it all look effortless. SM
34 • Startup Magazine • www.startupmagazine.co.za
Real Entrepreneurs Start, Pitch & Sell
pitchalot www.pitchalot.com
Startup Magazine • www.startupmagazine.co.za • 35
HOW TO MAKE A MILLION 5 Hard, Challenging Steps To Becoming A Millionaire I remember telling my uncle at a very young
(or at least not wealthy), living in an apart-
age how I would become a millionaire by
ment, and having very little besides a full
25. He gave me the non-sarcastic, yet mostly
tank of ambition and a fierce dedication
skeptical “I bet you will my boy.”
to win. How do you reach your goal? How do make it to the millionaires’ club? More importantly, how do you do it while keeping
But shockingly, I did.
a good name, not killing yourself with stress, And while money seemed to be the focus
and still creating a life full of relationships
during my early pursuit, it became my fur-
and joy?
thest concern over the past several years.
sandile shabangu (startupguy)
“
Interestingly, success has a way of prioritizing
Here’s what I’ve learned over the past several
what drives us.
years. My advice is not easy or quick, but it’s more likely to work than the sea of get-rich-
But let’s say you’re like me 7 years ago: broke
IT’S VERY DIFFICULT TO BECOME A MILLIONAIRE AS AN EMPLOYEE.
36 • Startup Magazine • www.startupmagazine.co.za
1.
quick programs that litter the internet.
Flip Your Money Motivation Upside Down
By age 22, I was nowhere near a net worth of R1 million. I still had some debt, still lived in an apartment, but I was at least taking a R36000 yearly salary (that’s like R3000 per month) from my own company. Progress was being made.
And then my heart changed. After asking myself the question, “If
But I didn’t take their money.
Jesus started a company, what would it look like?”. My motivation shifted from financial success to impact success.
Instead, I gave it to them for free and often. Sometimes I would drive 10,000 visitors to an author’s website just because I loved
I launched Simple Brands, a digital agency with a social focus of
their book. This naturally created the reciprocator effect. And
helping startups build their brands and succeed online.
as a result, these people felt slightly indebted to me. In return,
“BECOMING A MILLIONAIRE WASN’T EVEN ON MY RADAR.”
they would make introductions to other successful leaders, set me up with companies who would purchase very expensive ad campaigns, and ultimately became close acquaintances of mine.
In just three years, we had almost 50 employees, R2.5 million in
GENEROSITY IS LESS LIKE AN ARROW AND MORE LIKE A
revenue, and had given over R1 million to charities. I then wrote
BOOMERANG, IT COMES BACK TO YOU.
a national bestselling book about it called The Startup Recipe: A Guide for Young Startup Creators.
So be generous. But first, create something of value to give. For me, it was an audience. What is it for you?
The takeaway was this:
SEE MONEY NOT AS THE PRIMARY GOAL BUT AS A BY-PRODUCT OF HELPING A MILLION PEOPLE.
3.
Shift From Making Money To Creating Awesome Stuff
I’ve met too many people who create businesses to make money. And then I’ve met people who create businesses to fuel their
You’ll never become wealthy without helping people. It’s that
passion.
simple. What massive problem can you get lost in? What human needs are begging for you to solve them?
2.
But there is a major difference here. People make things because they want to make money; the more things they make, the more
Start Playing The 5x Generosity Game
money they make. What they make doesn’t really matter that much to them – they’ll make anything as long as it pays. The other wants to make money because it allows them to make
Adam Grant (a Wharton professor) proves in his book Give And
more things. They want to improve their product. They want to
Take that people who give and give often are more financially
build a movement. They want to create another book, another
successful than those who don’t. But it’s more complex than just
community, another film. They love what they make and they see
being generous. In my experience, you must have something of
making money as a way to do even more of what they love. They
value to be generous with.
dream of building a company that creates the best products… and money just happens to be the way they can fuel their
If your goal is to become wealthy, you must surround yourself
passions.
with wealthy people. The problem is, wealthy people don’t need much from anyone. And to be honest, they are on guard from
While it’s very possible to find a meaningless product that can
everyone needing something from them.
generate a million rands, most successful entrepreneurs learn that making money with what you love is more important than
I quickly learned what successful people truly needed
to make money to make money. I think the great Walt Disney said
was momentum. Their success was dependent upon their
it best:
consistent growth, reach, and influence. But how could I offer this? In 2010, I began acquiring large social media accounts from anyone who would sell them to me. I ran these accounts by posting inspirational content, quotes, and viral images. But it was my audience that many authors, influencers, and business owners needed to further their success. Later that year, I began having a variety of influential individuals offer to pay me to post their book or products or links.
“WE DON’T MAKE MOVIES TO MAKE MONEY; WE MAKE MONEY TO MAKE MORE MOVIES.”
4.
Spotlight Your Talent And Become A Master Startup Magazine • www.startupmagazine.co.za • 37
One of my favorite quotes is, “Obsessed is the word lazy people
be great. And a few years down the road, you’ll be world-class.
use to describe dedicated souls.” And the word obsessed and
And then, probably without even noticing, you’ll also be a
millionaires go quite well together–almost like a disease you
millionaire. At least that’s how it worked for me.
want to catch. An addiction at it’s purest form, yet manageable by its greatest victims. If you know me well, you’ll learn I am fanatical. Everything I do is at a 10. My extreme dedication has left my 20’s riddled with the footprints
5.
Most Importantly, Launch Your Dream & Kill The Employee Mentality
of sacrifice and lost experiences. But it’s also the reason my family
It’s very difficult to become a millionaire as an employee.
can enjoy our children, take vacations, and work only when we
Starting your own business is truly the path of least resistance.
want to. But I can hear your thoughts now, “I don’t know how to start a But at the core, I have always been focused on one thing.
business.” But neither did I. Late in 2013, I shifted my heart from building to teaching. My mission was to share what I’ve learned
BECOME THE BEST MARKETING PERSON I KNOW.
and to help people create a business and life they love.
It’s this vision that has forced me to read almost 100 books on
After pretty much locking myself in my office for over 160 hours,
the topic, to dive deep into design theory, to get beyond talking
I came out with Startup Mzansi Ventures and its Foundation.
and generate results, and to understanding what truly makes the
A social venture accelerator to help aspiring entrepreneurs,
human mind work. I think Steve Jobs said it best:
innovators and dreamers start their own business. An initiative that would take everything I know about developing ideas and
“BE UNDENIABLY GOOD THE WORLD CAN’T IGNORE YOU.”
turning them into profitable ventures. Even more, I packaged it up into easy to understand, beautifully designed, and affordable programs. The magazine you’re reading now was part of dream.
What can you become the best in the world at? What keeps you up at night? What part of your personality is primed to succeed?
If you have a business idea and don’t know where to begin, join the thousands of dedicated students chasing their dream here
If you can harness your ability to focus, fight off discouragement,
at StartupMzansi. It’s not a sales pitch. I don’t need your money.
and press into your gifting eventually you’ll be good. Then you’ll
It’s just my way of helping my next million people. SM
38 • Startup Magazine • www.startupmagazine.co.za
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Startup Magazine • www.startupmagazine.co.za • 39
THE GROWING
POPULARITY OF
COWORKING SPACES CO-WORKING SPACES ARE BOON TO YOUNG SA STARTUPS WRITES KATE STEVENS
T
he growing popularity of coworking is not solely
they actually started out of garage and grew bigger because they
an urban trend. It is a reflection of the way work is
didn’t have one thing which entrepreneurs have, the co-working
changing. We can see a lot more demand for flex-
space. In the days where work contentment has happen to a key
ibility and being able to work distantly, and folks
inspiration for majority of the workforce, all these factors have not
want more of a sense of community through their lives which
only helped co workers but also gave Indian start-ups to start fol-
extends through these co-working spaces. Most startups are asso-
lowing their dreams from the co-working space.
ciated in co-working spaces as a place for small and big companies. South African startups are flocking to hip co-working spaces
Coworking is a more advanced process in the west but in recent
as a means of connecting digital nomads with the communities
times it started gaining popularity In South Africa, co-working
that co-work there. According to a Forbes survey, co-workers are
space startups gets an opportunity to stay focused on the
happy with the Coworking spaces they work from. Around 90% of
products they are building without inconvenience about the
people surveyed felt persuaded and contented, 68% considered
accessibility of essential supporting infrastructure. Working from
more purposeful and 71% felt that they have enhanced their
home can lead to isolation and working from a coffee shop can
creative abilities.
be disturbing therefore co-working spaces have develop into a admired choice. Not only co-working hubs diminish the early
Coworking is slowly changing the landscape of the South African
cost of renting a business space, it does offer a great networking
start-up ecosystem. Apart from a simple yet cosy office space
opportunities. It helps in getting the correct advice for startups
which glowing the finances of bootstrapping startup to VC fund-
from the active community and provides solutions to similar
ed startups, these co-working spaces are building a community
problems. In my opinion, a good co-working space in South
not only competes with you but also gives you a shoulder when
Africa offering better networking opportunities by organising
you fall down. While the ideas of entrepreneur’s sounds like mad-
workshops, seminars with industry leaders, reducing the amount
ness to the rest of the world, whereas the community finds them
of office overheads, providing hygienic working conditions and
revolutionary and mentors these young startups to ideate their
that too is pocket friendly with ease on access at the same time.
madness into a business plan. All of the big names we have today
Co-working provides comfortable workspace, conference rooms,
40 • Startup Magazine • www.startupmagazine.co.za
networking with startups community, free
space where individuals, teams and start-
or discounted access to events, access to
ups can work from, gain knowledge, meet
mentor network and high speed leased
up and be enthused to act productively.
line internet. Thus, a boon to Young South African startups which literally offers open
Learn
work stations for easy communications
Coworking
and networking. A startups connect pro-
Partnerships at www.startupmzansi.org.za
vides a collaborative and affordable work
more
about Program
Startup
Mzansi
and
Space
Co-working spaces are a boon to Young South African startups. They literally offer open work stations for easy communications and networking.”
Startup Magazine • www.startupmagazine.co.za • 41
42 • Startup Magazine • www.startupmagazine.co.za
IT IS MORE THAN A MAGAZINE. IT'S A MOVEMENT The Digital version of Startup Magazine is now available on Apple iPad and Android tablets
Startup Magazine • www.startupmagazine.co.za • 43
44 • Startup Magazine • www.startupmagazine.co.za
I am a young entrepreneur, and here’s how you can help me
“ I am innovative, I have a global mindset, I want to learn. I seek out advice and support when it is available. I make a significant impact on my community and bolster the economy by creating jobs. I am a young entrepreneur.”
The young entrepreneurs of South Africa hold the key to solving our youth unemployment problem, but we must help them to achieve their potential. Their key concerns are as follows:
I need training
I need help with access to funding
66%
73%
say access to funding remains very or somewhat difficult in their countries.
say entrepreneurial skills need to be specifically taught.
I need a more supportive culture
51%
expect government programs providing education, funding and profile raising to have a high impact.
I need my contribution to be recognized I need innovative funding
49%
believe innovative funding platforms will accelerate entrepreneurship.
I need support for those who invest in me
41%
support tax incentives for investment in small businesses.
50%
think the promotion of entrepreneurs’ role in creating new jobs will have a high impact on entrepreneurship in African countries in the next three years.
I need a streamlined tax and regulatory system
I need society to tolerate failure
29%
23%
rank a “reduced burden of government regulation” as an important factor in accelerating entrepreneurship.
say business failures are perceived as barriers to future business prospects.
startup mzansi has therefore responded with the initiatives below & more
Startup Magazine • www.startupmagazine.co.za • 45
THE PUBLIC SECTOR ENTREPRENEUR – A NEW TYPE OF LEADERSHIP words by riaan steenberg When you put
private providers that compete for the
Many predict that the future of
public sector and
same business. In order to be effective
government in emerging
entrepreneur in the
both the public sector and the private
markets are
same sentence it is
sector effectively compete for the same
fundamentally
tempting to think
“business” while providing a public
changing to
of tenderpreneurs
backbone that serves the needs of the
essentially provide
or corrupt officials
masses.
these types of
running businesses
parallel economies
Public servant leaders need to have more in common with entrepreneurs
on the side. This article highlights the
The quasi market model is often used
that serve people that
emerging idea that the public sector
in housing, electricity, health-care,
cannot afford in order to
needs more entrepreneurial and
insurance and increasing in areas such as
protect basic human rights and social
innovation skills to keep improving
security, education, retirement services,
security – while letting the markets
service delivery and making the business
publications and the host of other
regulate normal supply and demand. This
of government work.
services that government gets involved
type of quasi-market economy, which
in.
is prevalent in most of the developing
With government taking on responsibility
world, requires innovative policy, strong
in many countries to run key services – it
A quasi market often leads to a situation
legislative oversight, effective regulators
has created what is known in economics
in which government has a relative price
and entrepreneurial skills to make it
as quasi-markets. The basic idea of a
advantage while the private provider has
work. The quasi market approach has
quasi market is that while government
a relative quality advantage. In order to
the benefit of protecting against market
is running a specific service – it needs
equalise between the have’s and the have
failure while having the benefits of
to remain as efficient as if regulated by
not’s – this type of model is employed
competition and choice. In markets
market forces.
more often in critical needs areas with a
where this is not feasible there will be
view to letting the market become strong
classical state run organisations and
The basic idea in the quasi-market is that
enough over time to make the need for
additionally increased regulation of the
government purchases bulk services
government to intervene less.
private sector.
on behalf of citizens, while there are
46 • Startup Magazine • www.startupmagazine.co.za
The devolution of control in government
Public servants that have a good
to a unit or departmental level has
understanding of the needs of business
They also both drive innovation.
seen a massive increase in the need
and the ability to run public sector
Innovation requires someone that
organisations on business principles
understands what the parameters and
are rare. Increasingly there is a need for
non-negotiables are and to ensure that
leaders to learn the high-level business
actions put in the required frameworks
skills that allow for effective delivery,
for innovative delivery – without flouting
while having to transplant these ideas
regulations and practices.
for entrepreneurial and innovation management skills in the public sector.
It is seen that an entrepreneurial Head of Department takes risks, backs hunches, creates and seizes opportunities. But they must also be a motivator and leader, creative resource investigator, communicator and ambassador, while at the same time possessing a clear vision, objectives and strategic plan. All this happens in the context of strong
into the framework of regulation and the complex world of politics and public
Entrepreneurs can also learn from public
administration.
servants – as the types of solutions that get created in the public sector often
Yet, a public sector organisation gets
is focused on being comprehensive
judged on the same service parameters
controls, checks and balances and public
and to address the root of the problem.
as all other organisations. These days it is
Moving beyond basic opportunism and
accountability.
not uncommon to speak to a (efficient)
looking at all aspects of a solution seems
government call centre and to get
like a luxury for the entrepreneur – but
The entrepreneurial role is then generally
statements and updates via web-based
it is essential for an institution that will
seen in four parts:
interfaces and new technology.
stand the test of time and judged by the public.
1. the characteristics needed to fulfil the
So what are the ideal characteristics of a
role;
successful future government employee
While it is tempting to think of the public
2. the competence to evaluate activity
that leads others? Combining the results
sector as an ineffective mechanism for
in the external environment linked to a
from several respondents and some
social delivery, we must realise that
market awareness, and
surveys, the top characteristics seem to
globally many people are inspired to
include: Self awareness, Authenticity,
serve others as public servants.
3. the ability to develop and manage a flexible, innovative organization, and 4. finally, the organisational skills to link
Reputation, Highly ethical, Master listener, Ability to communicate,
The quasi-market structure that is
the strategy and the execution to the
Optimism, Ability to execute on
a common trend in governments
required socio-economic value for the
promises and Inspiring followers.
worldwide seems to dictate the need for
participants.
specialist management and leadership Compare this to the list below that is
skills in government that draws from
typical characteristics of an entrepreneur.
effective business practices.
to spot and take advantage of
Self-belief, Tenacity, Passion,
Public servant leaders need to have
opportunities for the institution while
Tolerance of ambiguity, Vision, Ability
more in common with entrepreneurs
ensuring that the ideas selected for
to convince others, Flexibility, Rule-
and create new models and frameworks
implementation provide a good “fit” with
breaking
for delivery that is based on innovation,
The entrepreneurial manager needs the ability to scan the external environment
the mission of the institution itself. This
risk management and sustainable
type of socio-economic opportunism
While these are not the same there is a
is required to identify and mobilise the
similar spirit in that both are positive,
required resources to fulfil the needs of
committed individuals that inspire others
Entrepreneurs can also learn from
people – which is often labelled service
to move forward. The entrepreneur and
governments who must be concerned
delivery.
the public servant is motivated by a vision and the reward follows from there.
development.
with executing their solutions for the long term and balancing costs with social impact. SM
Startup Magazine • www.startupmagazine.co.za • 47
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