Entrepreneurs to take on the UK Third Quarter 2014

EXPORT EDITION

Exclusive chat with Shadow Minister Toby Chance | P26

Interview with entrepreneur development expert Vijay Valla | P10

Spotlight on the International Trade Programme | P9

P9 Off to Queen and Country: The International Trade Programme

P12 MEDO Club: A PA without a payroll

P14 A post-recession employment analysis

P18 Welcome to MEDO!

P21 Structuring your business, advice from an expert

P22 Meet the ITP entrepreneurs!

P36 What does the professor say about development?

P56 MEDO Success story: Sechaba Ngwenya

P58 BBBEE Codes and the focus of development

P60 MEDO Success story: Jeffrey Mulaudzi

P62 An in-depth interview with Judi Sandrock

P65 MEDO advertising value equivalents (AVE) for 2014

P6 The Bjarke business principle

P37 Meet Treppie, MEDO on the move

P45 Tips for entrepreneurs by Wybrand Ganzevoort

P52 MEDO goes social

P55 Tips on social media from a pro

P66 A final word: Company ownership

ContentsMEDO Magazine Third Quarter 2014

Cover story:

Features:

Editorial:

Publisher: MEDO

Editor: Carla de Klerk

Contributors: Bjarke Gotfredsen, Bryden Morton, Chris Blair, freakMike Stopforth, Wybrand Ganzevoort, Ian Scott

Printer: Burlington Dataprint (PTY) Ltd. Tel: +27 11 493 7200

www.medo.co.za

@MEDOnews

MEDOcentre

MEDOcentre

Tel: +27 500 5000

P. O. Box 2331

Houghton, 2041

South Africa

Copyright 2014 MEDO

3www.medo.co.za

FOREWORD

Joining MEDO from a journalistic background grounded firmly in the arts, this question is one that recurred continually throughout this magazine was put together. It also didn’t help that my first project as part of the team was to create this magazine in a time frame of only three weeks... Jumping in the deep end I was put through a bootcamp that finally gave me a definition of sorts revolving around, but not quite there of what enterprise development.

Firstly, it has something to do with sourcing. Sourcing as in the finding of entrepreneurs, treppies for short, being young an old individuals who are excited and eager to create and contribute to South Africa and its economy. Finding these individuals involve various mediums such as interviews, applications and of course our Treppie truck (PAGE 37).

When the entrepreneurs have been located, then the training begins. There is a Business Skills Foundation course and then there’s the International Trade Programme (PAGE 9). Entrepreneurs are

put through various workshops to hone their skills and business savvy with a long list of expert lecturers, for example our own Judi Sandrock (PAGE 62) and Wybrand Ganzevoort (PAGE 45).

As the entrepreneurs grow their skill sets, they are incubated in our various incubators. We even have a new Design Incubator opening up in the Mother City, Cape Town. These spaces offer entrepreneurs offices with computers, internet, telephones and most importantly, each other to create a discursive networking space. Read all about our entrepreneur profiles in this issue to learn how MEDO helped shaped them and their businesses.

After MEDO sourced, trained and incubated the entrepreneurs, then it’s time to go out in the big wide world and sell themselves, like the ITP entrepreneurs are aiming to do in London (PAGE 24).

And that’s it. As simple as that. Or at least that’s how easy it looks as an outsider interviewing the players away from the game. After a bit of incubation, I’ll work on my definition again...

EDITOR’S LETTER

MEDO specialises in Enterprise and Supplier Development (ESD) to satisfy the requirements of South African companies’ compliance with the DTI B-BBEE codes of best practice. All ESD programmes are customised for the industry and sponsoring client.

The team has extensive experience in the mining, oil energy and gas, infrastructure, manufacturing and tourism.

Delivery mechanisms range from a mobile entrepreneurship centre that tours rural areas, enterprise and supplier development programmes to international trade programmes for small enterprises.

From the EditorCarla de Klerk

What exactly is enterprise development anyway?

Till next tim

e,

Carla

4

ENTERPRISE AND DEVELOPMENT EDITORIAL

EXPERT OPINION

The Bjarke Principle:When you are big, buy small; when you are small, buy big!

“If we were a big company, we would own the building, we would own our own data centre, and we would have enough professionals to handle our own email centre.But we are small, so we can’t own and therefore we have to deal with suppliers. Big suppliers.”

ERP package, you want the one that is sold the most, giving evidence to be the most successful package. That of course also means that such a highly successful package comes form a highly successful company, that it is by now a large company. That company will continue to innovate and find best practice around its processes to continue improve both their product and their market share.

If you buy from a small company, you cannot safely assume that the product has the same success behind it, and you most likely don’t have the resources to manage it, yet. The smaller company will offer to implement whatever change you would like, but as a small company you don’t know what you want, you just want the best way of processing business.

Let’s start with a scenario: Buying an accounting/ERP package. When you are a big company with hundreds of employees, you have existed for a while and are therefore set in your ways of doing business. Part of you doing your business a particular way is governance, making sure that everything is done in time, within a specific budget and free of corruption and malpractice. You have streamlined certain aspects of your business to deliver faster, or you have implanted certain technologies to deliver cost-effectively.

For that reason, when you buy a accounting or ERP package, you want to make sure that your package can be fitted to your business, and not that you have to fit your business to the way the package works. If you buy from a large company,

they deliver the package in the thousands, which means they are probably not willing to change the package to your needs. If you buy from a smaller company, however; then the money talks louder, and you can modify the package to fit your unique business needs. As a large organisation, you have the resources to manage this modification, including project-- and change management and testing the package properly. You are in control.

If you are big, buy small.If you’re a small company on the other hand, you are actually looking for ways of improving governance. So as a small company you actually want to start implementing governance by doing it the way that it is done most successfully. If you are going to get an accounting/

big internet access providers involved, including Telkom to save the day as the building has its own provider with a monopoly over the location. We went against our principle and chose to go to a small landlord using a small internet provider. It’s a lesson you don’t need to learn twice, so in Cape Town our landlord is one of the largest in the country and our internet access providers are without a monopoly. We first negotiated with a smaller landlord, but during the process our legal council warned us about the contract being very one sided contract. There were stipulated clauses in the contract that the landlord had unilaterally stricken after the contract was signed, wherafter we were advised to report them to the police for fraud. If we were a big company, we would own the building, we would own our own data centre, and we would have enoughprofessionals to handle our own email server. But we are small, so we can’t own our own, and therefore we have to deal with suppliers. Big suppliers.

If you are small, buy big.This example was based on supply of a software package, but I found this principle true with almost every dealings we have here at MEDO. We used to use a smaller internet company to host our email server, but the email server kept being blacklisted, since other clients of the company used the same email server for spamming. We considered to run our own email server, and while we have our own servers co-located with a large data centre where we run many of our own services, we are not yet ready to tackle the pressure of running an email server effectively. Today we are using the world largest email service provider and it runs like a dream.

We have one of our incubators located at a place where the internet access was advertised as cheap and fast. It turned out to be a nightmare, not very cheap and not at all fast. We built the incubator around the supposition of cheap and fast internet, so now we can’t just move it. We can’t even get any of the

The MEDO Supplier Development ProgrammeThis programme focuses on the particulars of delivering to large companies; companies as explained

above, already have their governance in order, and therefore require some governance from businesses who delivers to them. This governance includes special documentation, such as BBBEE certification,

compliancy proofs, tax clearance certificates and most of the time a completed set of forms allowing the supplier to be registered with their client. Understanding how a large company operates when you have

never worked in one or supplied to one, can be difficult. When you supply to a consumer or to a small company, the payment comes from the owner, and it is easy for the owner to just accept or decline to pay.

But when your payment comes from a large company, the person doing the payment is an employee, and the money paid is not his or hers. For that reason, there are specific governance in place to make sure

that payment is done correctly, without waste, incorrection or fraud. Understanding this fact will also make the small supplier understand, that payment can take time and be delayed if the invoice is not 100% correct. The programme covers many other aspects, such as scalability, just-in-time operation and project

management to name a few.

Small businesses should buy and sell to large businesses, making them growing faster… Professionally.

I have many other examples: We used to rent cars from a small/medium sized company, that rented out cars for less, but they eventually turned out to be more expensive. Today we are AVIS preferred customers. We used to buy the cheapest laptops on promotion, today we have given most of our staff Apple MacBooks. In our 4K studio, we decide to go for Sony Professional equipment, instead of the cheaper Blackmagic Design equipment. We buy our IT equipment straight from the large ICT distributors. We import all our photo-, video-, and audio gear from B&H in New York, the world largest in the field. We import the technology we use in scale directly from suppliers in China. Our Magazine is printed by one of the largest printing houses in Johannesburg.While we do not source products or services from small suppliers, we incubate, train, and otherwise deliver services to small business and train them how to deliver to large businesses. This we do as part of the MEDO Supplier Development Programme.

Bjarke Gotfredsen is the Joint-CEO and co-founder of MEDO. Bjarke has a degree in Information Technology from the Business School in Copenhagen, Denmark. Bjarke arrived in South Africa in 1999 and continued with an MBA from GIBS. Bjarke has always been focused on Technology and Process Innovation, and started MEDO together with Judi Sandrock with a focus on process optimised enterprise development.

7www.medo.co.za6

COVER STORY: INTERNATIONAL TRADE PROGRAMMEFEATURE

MEDO NEWS

Unleashing young and ambitious entrepreneurs onto the world. That is exactly what the International Trade Programme is in a nutshell.

In the beginning of this year, a group of entrepreneurs were accepted into the elite ITP programme that consisted of a series of in-depth workshops hosted by notable lecturers that are considered experts in their respective fields. Those that finished the workshop series were granted the opportunity to show what they’re made of with the Big Pitch that happened earlier this year in Cape Town. Various business men and women acted as judges to choose to best of the best who will be allowed to complete the final leg of the programme in the United Kingdom in September.

This was the first year in which all the participating entrepreneurs were put through to London.

Ian Scott, managing partner from one of South Africa’s ‘Big 5’ accounting firms, Grant Thornton acted as judge on the event. He responded, “I had to choose the best to go over to the UK, but I ended up giving everyone virtually a perfect scrore! After the event when we tallied scores I was so relieved that that was the case with eveyone. The quality of ideas and pitches was so high, everyone got

sent to the UK!” In the UK, travelling between

London and Coventry, the team will be hosted repsectively by the South African High Commission in London and Coventry University. The entrepreneurs are also expected to arrange meetings with prospective UK investors that will not only further their businesses, but foreign exchange as well.

“71% of all new jobs in South Africa come from small or micro businesses, so in the end it’s all about growing the economy. I bleed the rainbow colours of our flag, and I feel as a country we are all in it together, and only together can we wake up the economy and create business opportunities,” CEO and co-founder of MEDO, Judi Sandrock explains.

“As an accounting firm we started up small, but it is integral for us, no matter how much we grow not to lose touch with small developing start-ups,” Ian explains.

After the UK trip entrepreneurs are still granted full support from MEDO, with the hope that the trip will broaden their connections and potentials.

Bjarke Gotfredsen, MEDO operations manager, co-founder and CEO explains more about the ITP programme, “young entrepreneurs are more wiling risk than

big established companies. When they go overseas they are thus also more likely to get international contracts. With small businesses the entrepreneurs deal directly with decision makers, owner to owner, and they make things happen.”

As South Africa is part of the BRICS union with Brazil, Russia, India and China, we are currently part of the new power-economies that control 43% of the world’s population. “South Africa is often seen as bridge or entry point to the rest of Africa, which is why we are part of BRICS and why we need to open ourselves up to other economies like the UK,” Bjarke explains. “In the end it’s all about growing the economy. We need to create a level playing field for the value of money, and against the British Pound we can only do that through international trade.”

On the point of black business development Bjarke furthers that it’s purely an economic move, “20 years on we are still in an economic apartheid. 80% of the economy is still white-owned, I don’t believe business should be taken away from anyone, but we need to develop black businesses to be able to share a piece of that pie. Where the misunderstanding comes in, is no-one will lose anything, the pie, the economy will then just keep growing.”

Off to queen and country!In September we are sending 12 enterprising developing businesses to the United Kingdom where they will be granted the opportunity to pitch to various potential investors from their fields. Watch out London, we are coming to conquer!

MEDO MAKING WAVES

9www.medo.co.za

Youth Development:“I think people who work with young people are very concerned about the future. You need to understand that the only way to change the future, is to work with young people today.” Vijay has spent his entire life working with young people, including developing various enterprise creation programmes for young entrepreneurs. His passion for the youth evolved through realising that there was a dire need for development amongst young people in a world where life starts and ends with access to employment. “Work is the new frontier,” he explains, “a degree doesn’t necessarily mean employment anymore. I help young people not only figure out what it is they want to do with their life, but how they will get there.” Vijay explains that the term youth development stems from a psychological perspective on age-stage appropriate development

that dictates that when a young life develops, it expresses itself in all of the socially defined norms for age-stage achievement. Put simply, this means that a person should complete certain stages at life at the correct age, for example to finish school or start a career path at the appropriate age. “What I am trying to put together is a series of interventions with young people which allowed them in a phased manner, to be trained in business, to develop a business plan and then also be mentored in running the business after securing finance.”

Youth Development Vijay Valla, Youth Development Director of the Department Small Business Development recently sat down with Carla de Klerk to talk about the development of youth searching for success in their career-paths. He answered that the most important thing people involved in youth development and youth alike should realize, is that the issue isn’t just what you want to do, but how you are going to get there.

Education, a paradox:“You have to differentiate between an education and a degree,” Vijay firmly emphasises, “People with an education go to the university of Hard Knocks, people with degrees go to academic institutions and get papers to say they have an education. People who go through life, actually have an education.” Vijay furthers that though both paths have their pros and cons, neither guarantees either success nor money. “If you can understand what people need and you can use your understanding to realise some commercial gain, then there is nothing stopping you from being rich.”

On the topic of being rich, however, Vijay has conflicting emotions as employment has evolved to become a definition of the self. “You have to be able to differentiate between what you do for a living and who you are as a person. Success isn’t money, it’s about who you are, what you are and what you feel will give your life a sense of accomplishment. Don’t define yourself by a qualification or a car.” This is also the exact reason why Vijay puts emphasis on career development in terms of the how and not only the what. “To be a successful entrepreneur you need to be motivated by more than money. It’s about the person you are, which is far greater than the success you’ll achieve in terms of money.”

Why youth development matters:“Young people’s prospects must be linked to the infrastructural developmental programme of the country and national development plans. Infrastructure in this country is on its way to becoming world class. The country is becoming more connected from a virtual perspective as well as physical infrastructure and national identity.” Vijay firmly believes that as the youth are the country’s future, therefore more focus should be placed on them. He argues that young people are out in the job-market, willing to make a mark on the country and eager to participate meaningfully in the economy. The problem Vijay has encountered in this regard, however, is that needs and requirements of the job market have evolved over the past 20 years. For example, the job market has shrunk significantly as larger corporations shed their non-core activities. This means that as there are fewer job openings and large numbers of job seekers, companies go beyond just looking at prospective candidate’s qualifications, looking at whether they have appropriate experience or not. Also, young people’s needs have evolved from just social acceptance to a need for economic acceptance. Nowadays, there are no guarantees that the economy will accept you as a player or participant, the only way to guarantee your participation in the economy is to become self-employed and form your own business or enterprise as part of the economy. “When the so-called born-frees reach the business market, you’ll find a profound shift to the positive.” He firmly asserts however, that without work, a young person is deprived access to all the things which make life worth living, like independence, access to education, entertainment and travel.

South Africa and the business sector:“I see a lot of pain ahead for South Africa. But when I look at the youth I feel excited.” Though South Africa’s economy is still travelling on a rocky path, Vijay is looking towards the future with a smile. “If you look at a person that is 20 years old and a country that is 20 years old, you are going to see a lot of parallels. Just as your average twenty-year-old is awkward about her/his identity, so too is our country, South Africa. I see South Africa as being a typical teenager still struggling to define its identity.” Vijay isn’t worried about the economy as is, he is extremely optimistic about its future which is represented through the youth. “These guys are going out there, prepared to accept jobs, carry boxes doing stuff, volunteering because they want to be gainfully occupied and get experience on their CVs. I look at all sectors of youth in this country, and I see people from the different population groups, communities and classes, are beginning to realize that there’s much more commonalities amongst them and between them, and slowly we are seeing the beginning of a national identity being formed.” Though he admits that South Africa still has a bit of growing up to do, he sees its potential in young people and through them the future is looking good, all they need is a bit of nurturing and care.

“Life starts and ends with employment. Today, work is the new frontier”

“When the so-called born-frees reach

the business market you’ll find a profound

shift to the positive”

ENTERPRISE AND DEVELOPMENTFEATURE

& the futureAccording to Vijay Valla

“What I am trying to put together is a series of interventions to treat young people in a phased manner”

EXPERT OPINION

VIJAY’S TIPS FOR ENTREPRENEURS:

1 Realise the value of work:No one becomes successful without physical or intellectual work, and a lot of it at that.

2 Realise the value of experienceIt’s not about just doing things for gain, you have to expose yourself as broadly as possible to fellow South Africans.

3 Be criticalThink of your life in terms of the how, not just the what.

4 Be aware of your enviromentLook how things are done and question whether it is the right way. Opportunity is everywhere, but you need the eyes to be able to see it.

5 Know yourselfYou need to be able to differentiate between what you do for a living and who you are as a person.

11www.medo.co.za10

MEDO Club:Help on the tip of a dial

ENTERPRISE AND DEVELOPMENT FEATURE

MEDO NEWS

Appointing a whole staff to take care of legal, financial, HR and marketing matters is a costly burden often too big to bear for developing businesses. The problem is, however that no matter how small a business may be, someone needs to take care of these issues regardless of financial abilities. Expecting someone to be an expert in each of these fields whilst keeping the businesses afloat is also a far stretch from realistic capacities. Entrepreneurs starting out need help. Development issues aside, being an entrepreneur can be a very lonely path, and someone needs to give them operational help each of them so desperately require.

With MEDO Club, subscribers get access to business, accounting, leads and purchasing power advice. The whole service becomes your own personal personal assistant with the mere dial of a telephone, without the disadvantage of having to rent a space or pay monthly salaries.

The system works on a user-friendly basis of a call centre where entrepreneurs log requests via a call agent who will then further the query for ultimate assistance within 24 hours or less. There is also an easy to use website, medo.club that offers assistance such as tailor-made legal documents like employment contracts or loan agreements, access to how-to guides on finance, tax, IT, legal matters and promotion of products via voucher systems to large databases. Users are also awarded with a list of discounts on travel, office equipment and various restaurants to ensure businesses can be run as cost-friendly as possible.

MEDO Club then furthermore offers a large range of opportunities such as discounts of purchases, IT troubleshooting, training and skills development and an on-call risk manager.

With MEDO Club entrepreneurs are given the opportunity to focus on running their business without sweating over the admin side of things or spending thousands on advisors who require pay by the hour. Starting a business is terrifying, MEDO Club is only trying to make things a bit less stressful than it needs to be.

MEDO CLUB YOUR PERSONAL BUSINESS ADVISOR:Advisor specialists are here to help with-legal advice-financial and tax advice-general business advice-insurance advise

MEDO CLUB YOUR ON-CALL ACCOUNTANT:SMeasy is a simple, convenient online system focussing on finance, business and accounting management. SMeasy is specifically designed for entrepreneurs with little or no accounting experience with the goal of simplifying matters that allow entrepreneurs to worry about their business without the hassle of accounting.

MEDO CLUB, BRINGING THE BUSINESS TO YOU:-Tenders: As a member of MEDO Club you will get access to a free e-mail service that will notify you as soon as new tenders relevant to your line of business, are posted.-Market place: Access our large database of over 2 million customers to run promotions and sales campaigns.-Lead generation: Once registered online, the system automatically matches your profile with business requests received, creating new leads and prospects.

MEDO CLUB YOUR OUT-OF-OFFICE PA:Assistants are on hand 24/7 to ensure specialist assistance with-scheduling of appointments-sourcing promotional gifts at the best rates-making a restaurant bookings for important client meetings-finding the right documentation you need for exporting products overseas-office relocations including liaising with real estate agents in the area, changing address with different service providers and organising movers-calling service providers on your behalf so you don’t have to spend time on the phone yourself-chasing relevant procurement departments to give feedback on your tender submission -finding the right service provider to assist with your website hosting or data back-up-sourcing quality service providers assisting with emergency repairs at the best rates in your area (locksmiths, electricians, plumbers, builders, etc.)

HOW DOES IT WORK?

- Call 010 500 5555

- Provide your company details

- An agent will log your request

- An agent will assist you immediately or get back to you within 24 hours depending on complexity of your request

12

South African Labour Market: A Post-Recession Analysis

Table 1: Labour Market Statistics

The 2008 global recession had a significant economic and social impact in most nations around the world. South Africa was no different in this regard although we only officially entered into a recession in the first quarter of 2009. A recession is defined as two consecutive quarters of negative economic growth and is usually associated with other social ills such as increased unemployment. South Africa has historically been plagued by high levels of unemployment which were exacerbated by the recession. Fortunately, the South African labour market has begun to recover from the loss of employment caused by the recession. The question is: How has the recession changed the landscape of the labour market in South Africa?

Bryden Morton and Chris Blair from 21st Century PAY Solutions Group offer an expert analysis:

Category

Labour Force

Total Employed

Formal

Informal

Unemployed

Discouraged Work Seekers

Labour Force Participation Rate

Q1 2009

17 820 000

13 636 000

9 449 000

2 150 000

23.5%

1 215 000

57.5%

Q1 2011

17 482 000

13 118 000

9 219 000

2 179 000

25%

2 223 000

54.1%

Q1 2014

20 122 000

15 055 000

10 780 000

2 336 000

25.2%

2 355 000

57.2%

*Actual figures reported in the relevant QLFS are used (unadjusted)

Each column represents a different moment in time, essentially a snapshot of the South African labour market. Q1 2009 represents the start of the recession in South Africa and Q1 2011 indicates the labour market statistics, two years after South Africa officially entered into a recession. Q1 2014 contains the most up to date statistics released by Statistics South Africa at the time of writing. The most apparent observation is that the South African labour market suffered in the first two years after entering the recession. The labour force, total employment and formal employment were all at depressed levels in Q1 2011 relative

to their Q1 2009 levels. Interestingly, the informal sector experienced an increase in employment while total and formal employment fell between Q1 2009 and Q1 2011. This suggests a substitution effect between formal and informal employment took place during the first two years after South Africa officially entered the recession. However, as the gains in informal sector employment only accounted for 12.6% of the losses incurred by the formal sector, this substitution effect was relatively weak (Equation 1 shows how this was calculated).Equation 1:This weak substitution effect resulted

in an increase of 1.5 percentage points in the unemployment rate two years after the beginning of the recession. The most concerning figure is that the number of discouraged workers (people that have given up any hope of finding work) nearly doubled from 1 215 000 to 2 223 000 during this period. The labour force participation rate also fell 57.5% to 54.1%. The recession had a significant impact on many individual’s perceptions of their chances of finding employment and created a “veil of hopelessness” within them. Table 2 is a subsection of Table 1 and focuses on the changes in the South African labour market between Q1 2011 and Q1 2014.

Category

Labour Force

Total Employed

Formal

Informal

Unemployed

Discouraged Work Seekers

Labour Force Participation Rate

Q1 2011

17 482 000

13 118 000

9 219 000

2 179 000

25%

2223 000

54.1%

Q1 2014

20 122 000

15 055 000

10 780 000

2 336 000

25.2%

2 355 000

57.2%

% Change

15.10%

14.77%

16.93%

7.21%

0.80%

5.94%

5.73%

*Actual figures reported in the relevant QLFS are used (unadjusted)

Table 2: Q1 2011 Comparison with Q1 2014

As Table 2 indicates, the labour force, total employment and formal employment all experienced a significant increase since Q1 2011. Unfortunately, total employment has grown at a rate lower than the labour force which resulted in an increase in the unemployment rate. Formal sector employment has been the largest contributor to the resurgence in total employment. During this same period, the number of discouraged work seekers has increased by 132 000 people. The labour force participation rate has almost returned to its pre-recession levels. What is concerning is that the

majority of the discouraged workers (which almost doubled within two years of entering the recession) are still discouraged and this number has increased by 5.94% between Q1 2011 and Q1 2014.According to a number of high profile public figures, such as Minister of Finance, Pravin Gordhan; SA’s GDP will need to grow by 7% annually over 20 years to create jobs and reduce poverty. Currently, our GDP growth figures do not come anywhere near 7% and have not averaged above 6% in over a decade. Although the data has indicated certain positive movements in the South African labour market since

Q1 2011, there is still a significant amount of work which needs to be done. One of the longest lasting effects from the recession in the South African Labour market appears to be the “veil of hopelessness” it has instilled within many people. Policies such as the National Development Plan have had little visible success in terms of achieving the 7% growth. In order to undo the damage caused by the “veil of hopelessness” created by the recession, growth in production and employment needs to be at the centre of government’s strategy for creating renewed hope and a better South Africa for all.

Bryden Morton is the data manager at 21st Century PAY Solutions and holds a B.Com degree in Economics. Feel free to contact Bryden at: bmorton@21century.co.za

Chris Blair holds a B.Sc Engineering and acts as CEO for 21st Century PAY Solutions. Feel free to contact Chris at: cblair@21century.co.za

ENTERPRISE AND DEVELOPMENTFEATURE

EXPERT OPINION

15www.medo.co.za14

ALL ABOUT MEDO

Earlier this month, MEDO CEO Judi Sandrock was invited to speak as keynote speaker at the accounting firm Grant Thornton’s Woman’s Day celebrations. Senior employees and various successful business men— and women were invited to the prestigious event in honour of women in the workplace. When Ian Scott, managing partner of the firm introduced our esteemed CEO he commented, “when we started out in accounting, it was predominantly male. Now, it’s predominantly female and

I believe that it has definitely changed for the better!”Apart from speaking at the event, Judi is also nominated for the online lifestyle magazine Spice4life’s woman of the year award, and we can’t help but agree. In her speech Judi furthered on her background and how that shaped her to the powerful woman she has become today. “When I enrolled at university in a Chemical Engineering degree, my mom went mad, she said ‘how can

“A candle loses nothing by lighting another candle, and that’s what knowledge management is all about.” This career move greatly influenced Judi to the developmental side of things and soon Judi created Anglo Enterprise Development’s first entrepreneurial incubator. “I didn’t know what, why and how to do it so I ran the incubator myself for a couple of months,” Judi laughs. The seed for MEDO was thus planted and the first MEDO contract came from none other but Sir Richard Branson to launch the Branson Centre for Entrepreneurship in South Africa. “An important thing I leant from Virgin was the importance of a strong personal brand,” Judi explains, “with Virgin it’s just as much about the brand as the person, and I think that is a very big thing to remember in the development industry.”

Just as Judi rose from height to height, so is MEDO making waves in the South African and global economy. “We can only grow the economy from small businesses and start-ups, so it really shouldn’t be regarded as a competition. We need to help people become enterprising in themselves,” she furthers, “after all, a rising tide lifts all the boats…”

of the year!Woman

you go into business with a bunch of sexist pigs?’” Judi did, however and went to work in the mining industry, a place where women weren’t even allowed to work underground at the time. After mining Judi moved on to the oil and gas sector where she became a specialist on water treatment and purification technologies. Judi then moved on to work for the paper giant, Sappi’s newsprint division. “I was called in one time because they wanted to know why our division worked so productively, why were we the best but when certain people aren’t working everything falls apart,” Judi explains, “that’s when I realised we weren’t sharing our knowledge enough.” Shortly after Judi was promoted to Sappi’s Global knowledge manager,

Below: MEDO CEO Judi Sandrock with Ian Scott at the Grant Thornton Woman’s Day Celebrations

Turn to PAGE 62 for an in-depth feature on Judi Sandrock.

MEDO MAKING WAVES

ENTERPRISE AND DEVELOPMENTEDITORIAL

MEDO NEWS

The SEDO team runs a Mobile Entrepreneurship Incubator called “Treppie” that tours rural areas and disadvantaged communities bringing entrepreneurship as an alternative to endless job-seeking. It is a non-profit company and public benefit organisation. The SEDO team delivers Socio-Economic Development and often the beneficiaries enter the more advanced MEDO programmes.MEDO delivers Enterprise and Supplier Development Programmes, runs Incubators, develops suppliers for large industry and host international trade visits. This business is the core of the MEDO group, with hundreds of beneficiaries across South Africa who have been through programmes, benefit from virtual incubation and listed on the MEDO Supplier Database.MEDO RED delivers Enterprise and Supplier Development programmes for the public sector. All the MEDO programmes deliver B-BBEE points for socio-economic development and enterprise and supplier development.What do we do?We assist entrepreneurs to build and grow their businesses. We ask people to answer three questions:-Are you an entrepreneur?-Do you want to start a business?-Do you want to grow your business?-We have the solutions to help people reach their goals. We deliver this through:-Touring with Treppie running Opportunity Identification -workshops-Introduction to Business Workshops-Foundation Business Skills Programmes-Supplier Development Programmes-National Trade Programmes-International Trade Programmes-Incubation of micro and small businesses

Quality of DeliveryBusinesses need access to markets in order to grow and provide sustainable employment. In MEDO, we are dedicated to ensuring perfect quality of the businesses we introduce as suppliers. We ensure this high quality through:Screening of entrepreneurs and their businesses – MEDO uses a stringent interview and screening process improved over the years, accredited, and shown to produce excellent results. We screen out those who have a sense of entitlement.Supply chain analysis – we engage supply chain professionals to analyse the supply chains of our corporate clients to identify supplier development opportunities. We will never recommend a disruption to your core value chain or compromise your quality of delivery.Effective skills transfer – all our programmes are customised for the client and industry, and delivered by seasoned entrepreneurs in the field. It’s all business with a results focus.Governance – we ensure that every enterprise on our programme is registered correctly, is governed correctly and that all the documentation is in place and verified. There will be no surprises at accreditation time.Media exposure – all our programmes attract the media as the entrepreneurs have inspiring stories to tell. Transformation becomes a brand value for our clients.Footprint - MEDO can deliver in all provinces across South Africa, and has international trade programmes designed for countries where you operate.

MEDO is a group of businesses under the banner of MEDO Holdings (Pty) Ltd that delivers economic development projects and programmes.

Socio-EconomicDevelopmentOrganisation(NPC)

MicroEnterpriseDevelopmentOrganisation(Pty) Ltd

MEDORedEnterpriseDevelopment(Pty) Ltd

MEDO Club incubation and shared services

Contact the MEDO head office at: 010 500 5000Or visit: medo.co.za

The Meta-Economic Development Organisation

Wecome to MEDO

19www.medo.co.za18

Structures“When setting up a business, careful consideration needs to be given to both the legal structure and sureties demanded by suppliers”, Ian Scott, Managing Partner of Grant Thornton in the Cape explains.

When setting up a business the following options are available together with advantages and disadvantages:Sole trader:Advantage: very simple as you just open a bank account and start trading.

Disadvantage: all liabilities are in your personal name and all your assets are thus at risk. Any legal actions e.g. claims by ex-employees for unfair dismissal need to be defended in your personal capacity.

Taxation: Generally taxed as an individual from 0% on a net income of R70 700 to 40% on an income of R673100 and over with a maximum capital gains tax of 13, 3% which is also eligible for the micro tax. Partnerships: The same ss above but net income or loss is split between the partners in the profit/loss sharing ratios agreed. An added disadvantage is that partners can be held responsible for other partner’s liabilities and a new partnership is effective each time a partner changes.Private Company:A closed corporation used to be the simplest legal entity but the new companies act of 2008 made significant changes which means new closed corporations can no longer be formed.

Advantages: A private company where each shareholder is also a director does not require an audit but only a compilation report thus reducing costs, but allowing a separate legal entity which is only pierced if provisions are transgressed. This entity can be sold to a third party.

Disadvantage: Bound by provisions of the companies act.

Taxation: Pays income tax at 28% on net profits. If funds are reinvested in the company no further tax but a dividends tax of 15% if taken out i.e. effective full rate in owners hands is just below the 40% maximum personal tax rate.

This company may qualify for the micro business turnover tax if annual turnover is less than R1m.This tax ranges from 0% on a turnover up to R150 000 to 6% on turnovers over R750 000. If a company does not qualify for micro tax it may be eligible for Small Business Tax. To qualify the owner must not own any other interests in private companies or close corporations and turnover must not exceed R20m p.a.Trusts:These derive from Roman Dutch and case law and are still favoured by many to protect growth assets. They are broadly categorised as either testamentary (i.e. come into existence on the death of the settlor) or inter vivo i.e. they are setup by someone living, the founder who donates the initial capital and walks away. Trusts are managed by trustees, normally 3 (one at least who should be independent) so that the assets can’t be deemed to be part of someone’s estate. The trustees manage the assets on behalf of the beneficiaries who may be discretionary i.e. only receive what the trustees decide or vested meanining the trust specifies what they will receive. A trust needs to have a specified termination date.

Advantages: Assets are removed from a personal estate and estate duty and capital gains taxes can be postponed. If someone owns a valuable asset in their personal name, then on death capital gains tax and estate duty are payable. Estate duty can be 20% of assets over R3.5m and thus these taxes could amount to 33,3%. If this was a bond-free house being bequeathed to someone, they would receive it with a bond of 33, 3% of the value after taxes and that might force the sale of the family home.

Disadvantages: Control of the asset is lost as the previous owner may only be 1 out of 3 trustees. Recent case law has also shown that assets in a trust aren’t necessarily safe from divorcing spouses. Beneficiaries can sometimes find themselves frustrated by trustee’s decisions. SARS may look through the trust and apply deeming provisions to income.

Taxation: Trusts pay income tax at the maximum personal rate of 40% from R1 of net

income, however the conduit principal allows the trustees to distribute income and gains to beneficiaries who then pay taxes at their personal rate of tax as set out above.SuretiesBusinesses can be setup with minimal capital including companies with only nominal share capital. As they have no track record, creditors including suppliers often request personal surety. This applies to all bank debt such as property, vehicles, equipment and overdrafts or business loans. This means that in the case of a problem the bank can call on the surety to pay after the asset has been disposed of, often through an auction where sales prices are low. A person who signs surety and has all assets in his or her name is at greater risk than someone who has most assets in a company or trust as these cannot be used unless that company or trust has also signed surety.

Trade creditors very often attach innocent looking personal sureties when you open an account and if the business fails they call on the signer to repay the business debt personally. When opening accounts care therefore needs to be taken and the personal risk being taken needs to be minimised where possible. Try and trade for cash until a track record is built up and keep a proper record of each surety signed so that you always know where you stand. Try and make the company stand on its own feet and always think very carefully before signing a surety. Protect growth assets when you need to sign personally, know there is a real possibility you could lose those assets. If the surety is called in and you have assets in a trust it is easier to negotiate a settlement with creditors as opposed to when they just need to attach assets.

In conclusion, consult a professional before settling on a structure as the time and or money is well spent. Choose a structure that is appropriate to the business risk you are taking. Try and protect growth assets so they can grow in value over long periods of time. Try to not sign sureties but when you have no choice keep a record and review them regularly.

ENTERPRISE AND DEVELOPMENTFEATURE

EXPERT OPINION

BusinessA structured“As a firm we deal with clients ranging from start-ups to listed companies and multinationals, and it is always important to properly explain the options available. This is especially so because of the large number of start-ups which unfortunately fail within the first few years often with dire consequences to the owners.”

Managing director of Grant Thornton, Ian Scott explains the pros and cons regarding the structure on which you build company:

21www.medo.co.za

N hlanhla Mthembu has a dream to change the wor ld

one conference at a t ime with his business venture, B i z d e v C o n ce p t s . He has a pass ion for socia l development and

educat ion, and B i z d e v i s chas ing that pass ion with

stealthy determinat ion.

Conference with a cause

ENTREPRENEUR PROFILE FEATURE

Coming from a conference coordination background, Nhlanhla had all the skills required at his fingertips for Bizdev. “I used to coordinate events for up to 2000 delegates. It was hectic but I loved it,” Nhlanhla talks about his previous position. After a few years his sister approached him with the opportunity to be a marketing manager for the logistic business she freshly started. “When the recession hit in 2008, we started interacting with other small businesses to create a network to secure clients.” It is through this networking that Nhlanhla realised there was a need within small businesses for basic business training.

“When I realised these businesses severely needed training, I started doing what I did best, organise conferences.” In the beginning conferences ranged between 50-200 delegates from the neighbourhoods of Alexandra, Tembisa and Soweto. The focus of the conferences were that of basic business skills in HR systems and marketing. “I realised they still craved more so we grew to topics of social entrepreneurship and innovation.” Nhlanhla started incorporating NGOs and non-profit organisations, focussing conferences on innovation, collaboration and a sharing economy. “I wanted to build a big community around the common interest of social development,” Nhlanhla explains.

“The big difference between co-ordinating conferences for clients and creating conferences is that I suddenly became a researcher, content developer and editor.” Bizdev Concepts, however, has now evolved to the point that Nhlanhla only needs to manage the conferences. These conferences have

even grown to the point of creating conferences especially for international delegates. But Nhlanhla’s dream doesn’t just end there. He wants to expand to owning conference facilities around the country, building training facilities around disadvantaged communities that will allow entrepreneurs access to innovation training.

Bizdev Concepts is famous for three signature conferences, namely Disrupt Africa; focused on disruptive innovation in Africa, Change-Makers Rendezvous; focused on social entrepreneurial innovation and Juniors Innovation Conference; a conference for grade 10 to first year students about the importance of entrepreneurial development and innovation.

“After joining MEDO, my mind was opened,” Nhlanhla explains, “I never saw the potential for myself to scale to the size I have grown my business. I always saw myself in the community, I just never saw my possibilities.” Apart from the growth Nhlanhla experienced in Bizdev, he is now also looking forward to the possibility of training entrepreneurs himself to help them realise the potential for growth.

“I believe I wil stay here at MEDO for life. I want to remain incubated, it’s good to remain in an environment with other entrepreneurs at a creative level. Here we are constantly innovating, constantly discussing, and as an entrepreneur I feel I need to be in such an environment.”

If Nhlanhla were to give tips to other entrepreneurs it would be to develop yourself, to read everything and to stay independent in your thinking.

“I want to build a big community around the common interest of social development”

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ENTREPRENEUR PROFILEFEATURE

Born and bred Sowetan Abraham Motsoane, had a difficult start to life before unleashing his talents upon the world. “I spent the first two years of my life in hospital,” Abraham explains, “Then the month before I was released my mother passed away.” Abraham was then raised by his grandparents, and he firmly states that they did a “sterling” job. “My grandmother did everything in her power to give me the best, she sacrificed everything for me and I think that might be why I pushed myself to where I am today.” Abraham was identified early in his school career as a gifted child and was awarded a full scholarship to a prestigious private school in Johannesburg. He furthers that this was a largely influential time in his life as he grew a firm passion for reading, “It’s a fact of life, the more you read, the more informed you are. Without the habit of reading you’re not going anywhere.”

After high school Abraham took a year to volunteer at a programme that focused on youth development, after which he was awarded a bursary to study PC Engineering at Damelin College. “I have been very lucky and very privileged in life, I have a knack to be at the right place at the right time.” After graduation Abraham continued into a career in IT where he started falling in love with the training and development side of the job. “In ten years I worked for 12 different companies, and that’s when I realised that there was something, a restlessness

in me that needed to be let out.” During this time Abraham proceeded to various careers as what he refers to as “a beautiful mumbo jumbo” where he ran a car radio alarm shop from his garage to selling women’s beauty products. After being awarded a contract to get international certifications for a local distance-learning college, he started acting as the manager for the computer school faculty. “I realised that the majority of queries that landed on my desk, were largely that of black learners who struggled because they had no computer at home. Being a distance-learning institution you can imagine this being problematic,” Abraham explains. After the idea that the college grant students complimentary computers was shot down by the school principal, Abraham furthers that he took it very personally. “I was angry, incredibly angry, and out of anger I decided to do something,” and so e-Varsity was born.

First Abraham wanted to start a full-fledged university, but decided e-learning was the path to go as it is much more cost-friendly. He quickly partnered with a computer-manufacturer and an UK content provider and soon there was nothing stopping Learning e-Varsity Online. “The deal I have with students is regardless of what they study, is that they kan keep their laptop, as long as they finish their degree. If they drop out, we take it back.” Learning e-Varsity Online offers a range of courses varying from IT, accounting, finance to a

range of soft skill courses. Abraham’s policy regarding applications is that he accepts everyone, no matter their educational history, “whether you have matric, grade 3 or nothing, I believe that if you have the willingness and desire to learn, you must be granted the opportunity.”

After joining numerous entrepreneurial incubators, Abraham finally joined MEDO. “I’m always on the internet looking for things, I saw MEDO, applied and came in for an interview,” Abraham explains. At the interview Abraham furthers that he immediately felt so at home that he started selling his business before he was even interviewed. “MEDO’s values resonated with me; the first thing they told us was never to be late and always help your fellow entrepreneurs. I knew that this was a place where I would be able to grow.”

Looking to 2015 and beyond Abraham wants to branch Learning e-Varsity Online into an online business school specialising in MBA courses. “Africa Online is a project I am currently working on, I want to bring an accessible world-class business institution to Africa,” he eagerly explains.

Before branching out to conquering the world on an educational level, however, Abraham is keeping on running Learning e-Varsity Online to reach its full potential whilst living out his life philosophy, “You can never know it all. Everyday is an opportunity to learn, so don’t waste it.”

Opportunityuniversity When Abraham Motsoane saw

a gap in the distance -based ter t iar y educat ion sec tor

whi lst work ing at a col lege as a computer school manager, the

fur thest thing f rom his mind was star t ing his own inst i tut ion.

Now, a couple of years later Abraham is the dean, manager and mastermind behind about

the enterpr is ing business, Le a r n i n g e -Va r s i t y O n l i n e .

25www.medo.co.za

Development:behind the scenes As Shadow Minister of Small Business Development, Toby Chance’s job

as opposition party counterpart to Minister Lindiwe Zulu, is to hold the government accountable to its promises. Having recently sat down with Carla de Klerk, Toby chatted about nitty gritty legislation details behind the broad field of development that has the potential to restrict as well as unleash the industry.

An entrepreneur at heart“Small business development is most definitely a passion of mine. I find a thrill in it to see a business succeeding and the impact that has on its owners,” Toby explains. As he has spent most of his life either owning or running a small business he furthers that it has become something quite close to his heart. “You feel like you’re having a positive impact on people. Not just their back pocket but also their sense of worth, their self esteem, the fact that they can provide for their family, send their kids to school,” he explains his passion for the field. As

Ministry matters:“On a narrow definition, the minister’s job is to manage the agencies that she inherits from the BTI and economic development sectors such incubator support programmes, cooperative support programmes, small enterprise finance agencies, and other initiatives which has been set up to actively support small business whether it be non-financial or financial support programmes.” As small businesses comprise about 50% of the country’s economy, he adds that financially there is actually very little that the Department of Small Business Development can do for owners and entrepreneurs. “The broader mandate is thus actually far more important, such as getting the labour minister to relax labour legislations or to go to the minister of finance and say that small businesses need tax incentives,” Toby explains. The problem he highlights in this regard, is that small business development isn’t being taken seriously enough by other departments. “Today, the economy is still extremely concentrated on large businesses who control supply chains which in many instances do not include small businesses. “It’s not in their interest to create or

develop a small business sector because that creates competition,” Toby firmly believes that small business development is in this regard largely restricted by legislation that caters to big businesses, essentially cutting the small guys out.

Legislative matters:“The current legislation around business development was formed in the early 90s and hasn’t been revised since. This is shoving small businesses to the side.” Toby explains that the department’s goal for small business development is essentially to change restrictive legislature. “We need to relax legislation which makes it difficult for businesses to start up, such as all the red tape around forming a business, for example getting a registration, tax certificate, tax clearance, and VAT registration. All of these things are immensely time consuming,” Toby comments, “Once you get the business up and running, you need to be incentivised to employ people. Small businesses need to employ people to get work done but when the prospect of having to get rid of that person is so difficult, it’s a disincentive to employ people. Tax incentives then need to be set up for small businesses, such as that they don’t have to pay tax if they’re a certain size, or not to be taxed on profits but on turnover. At the moment the legislation doesn’t allow for investments to be written off, if it were, greater incentives would be there for venture capitalists to put their money out there.” He further adds, that as they don’t have jurisdiction over

most of the departments that have these influences over small businesses it, is key to have open lines to the Department of Education, Tertiary Education, Finance and Labour.

Developmental matters:“Entrepreneurship is a quality that some people have and some people don’t. Those that do have it essentially see a need that needs to be satisfied, and comes up with an innovative way of satisfying it. Enterpreneurship starts with the imagination. It starts with having your nerve endings very sensitive to the world in which you are operating.” Toby explains mentorship and guidance is key to unleashing the creative mind of an entrepreneur, “I would recommend an intuition like MEDO because entrepreneurs get guidance and most importantly they start networking. All businesses are different but they all have the same problems.” Toby lastly adds that it is important never to give up on business, “most businesses fail because they give up too soon. Only after years of breaking your head against a brick wall step away, and not a moment sooner.”

“I find a thrill in it to see a business succeeding and the impact that has on its owners”

“Entrepreneurship starts with the

imagination. It is satisfying a need

innovatively”

TOBY’S TOP TIPS

FOR SMALL BUSINESSES

1 You need a target audienceYou need to be sure you are satisfying a need and you need to identify exactly who you are aiming at.

2 Grow organicallyDon’t expect to shoot the lights out overnight. A sustainable business takes time to grow.

3 It’s all about relationshipsEnter partnerships very carefully. If you need a partner make sure that you have a very strong, sustainable relationship.

4 Always avoid debtTry to use your own resources as far as possible. Debt has a way of growing bigger and bigger overnight.

ENTERPRISE AND DEVELOPMENTFEATURE

EXPERT OPINION

South Africa is still a developing country, he adds that small business development is incredibly important and should in fact receive a priority mandate. A few years ago Toby decided to step away from the sidelines into politics for exactly this reason, “it’s no use complaining unless you try to do something about it,” he jokes. “That’s why I was so excited to get this job because I now have a broader mandate by not just running a small business myself but hopefully influencing the environment in which small businesses can thrive.”

27www.medo.co.za26

As a child, Helen and her sister were raised by their grandfather in KwaZulu-Natal. “We were brought up on life lessons of survival, without any female influence in our lives,” Helen explains. At the mere age of 15 her grandfather passed away, however, and she was sent to a children’s home in Durban. Irregardless of her situation, education remained one of her most cherished priorities. “I was passionate about school, and I didn’t even mind when I was always referred to as the teacher’s pet,” she jokes. When Helen became a mother at 19, her outlook on life changed completely, “I knew from then that I had to make my life worthwhile for the sake of my daughter.” For the next couple of years Helen moved to and fro between homelessness to moving to a new home on a monthly basis. “We survived it, and now I have a beautiful 14-year-old daughter, I am a strong woman who dares to dream and live because of it!”

Before Banda Business Services, Helen’s first venture was a private gym that failed shortly after opening. She then moved on to a steel and fabrication business where marketing and safety were her key responsibilities. “I was driven and passionate but had no direction and plan in place. Jumping into the deep-end of marketing, my passion for online marketing began.”

Helen’s current venture, Banda

Business Services focusses on social media and marketing by creating profiles and brands for businesses through website development and various social media platforms. Though Helen now specialises in communication technology, Helen

only became computer literate in 2009. “My first computer was a gift and I had no idea what to do with it. At the time daughter was the PC whizz of her class, so she instructed me step by step how to use Ms Word,” Helen explains, “she was so patient, and now we laugh at the mistakes I used to make.” Helen still has no formal computer training, she rather opts to google videos should there be anything she doesn’t know. Ironically it is precisely this method of learning that gave birth to Banda Services. “I joined a webmasters forum and began asking all kinds of questions. The response was amazing as I had directors of corporations directing me. From there I started using free software to

create profiles for friends…and here I am now!”

“Being an entrepreneur means that I am a game-changer. I do not follow what society has instructed, instead I take risks, I dare to dream and I work towards building a legacy.” Helen sees the value of entrepreneurship not only in her own self-fulfillment but the fact that she can create employment, mentor the youth and have an impact on her community, which is very close to her heart.

Helen joined MEDO earlier this year as part of the International Trade Programme and hasn’t looked back since. “I learnt so much! From presentation and networking skills to understanding my industry and conducting proper research. I don’t think my private gym would have failed if I had the skills I do now,” she explains. What is the most valuable thing she learnt from MEDO? “Being bold and knowing that no-one knows my business like I do.”

Being stagnant is not something Helen is accustomed to. She has leapt from opportunity to opportunity no matter her situation. Her passion and drive is definitely something that will be pushing her far in the social media marketing industry. “I am addicted to what I do. I learn and grow daily and am blessed to be in an exciting industry. The thrill is when clients say: WOW! The look of satisfaction on their faces is priceless,” Helen energetically explains.

“Being an entrepreneur means that I am a game-changer. I do not follow what society has structured, I take risks, I dare to dream”

Jumping in the deep end

ENTREPRENEUR PROFILE FEATURE

The rising social media giant Banda Business Services’ Helen Bain burns with a passion to learn. After learning how to use a computer by her 9-year-old daughter she has grown from strength to strength to becoming a specialist in the field.

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CONTACT US TODAY013 243 5313

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ENTREPRENEUR PROFILEFEATURE

A connectedpassion

Cousins Brandon Mul ler and James Coetzee share a pass ion for t wo things in l i fe : entrepreneurship

and internet . Having star ted their business,

Q u i c k C o n n e c t W i r e l e s s as students, these boys don’t

see their company as a ser v ice provider, as much

as a provider of inf in i te poss ibi l i t ies.

From an early age managerial chartered accountant Brandon Muller and business manager James Coetzee knew they were going to go in business together, it was quite expected stemming from a family of entrepreneurs. Before even thinking about internet, the cousins experimented with various ventures, including starting a couponing business and importing sunglasses for selling. “We have a long list of projects that flopped, but we also have very successful ones,” James jokes. As students the cousins started developing their latest venture Quick Connect Wireless by supplying residential complexes the luxuries of wifi. Today, a mere handful of years later the business has developed so far that it is supplying Oppikoppi, one of the world’s largest music festivals with wireless internet.

To Brandon, who still works part-time as financial consultant in Cape Town, the business serves a dual purpose. “I love the thrill of building a business up from scratch to the point that it could be managed on its own,” he explains that his dream for Quick Connect is to be bought up one day and managed without him, “but on the other hand I have a great passion for the internet industry. I see internet as a tool of infinite possibilities, and I love being able to give that tool to people.” Looking to the future, both Brandon and James see the themselves working on new projects with Quick Connect Wireless being run by new hands. “I want to stay in the internet industry, however,” James adds eagerly,

“if I had a dream it would be to connect the whole world, just because of all the possibilities that represents.” Neither of the pair are skilled in IT or the technical aspects of internet, but both are intoxicated with the whimsical, magical opportunities the field offers.

What makes Quick Connect stand apart from other internet providers is that they provide service that goes over and above than merely providing internet. “We want to build on top of just providing internet. We know one day the whole world will be connected, so the question is, what more can we do? And our answer is to provide service to densely congested spaces,” James explains. “Our goal is to keep things as simple and clean as possible. No logins, passwords, no waiting,” Brandon adds.

The cousins came in contact with MEDO after being urged to do so by their contacts at the Branson Institute of Entrepreneurship. “We pride ourselves on chasing down all opportunities, and with MEDO we realised the importance of being in contact with other entrepreneurs,” Brandon furthers. On that point James adds, “At MEDO the opportunities we’re offered are definitely amazing. In terms of exposure we couldn’t have asked for more.”

These cousins are definitely on their way to the big leagues, whether it be with Quick Connect Wireless or a new venture in the future. “If I can give any entrepreneur a tip it would be to go for it. It’s not the entrepreneur that fails, it’s the idea, and everything has to fail at least once,” and with that, Brandon ends off the interview on an exciting note.

“We want to build on top of just providing internet. So the question is, what more can we do?” -James

“I see the internet as a tool of infinite

possibilities, and I love being able to give that

tool to people” Brandon-

As the daughter of a restauranteur, Innocentia spent her life travelling from city to city. On finishing matric, she went through five primary schools and three high schools ranging between Polokwane, Durban, Port-Elizabeth and Johannesburg. “I think the experience of constantly moving greatly affected me in a good way,” Innocentia explains, “I can relate to people from all walks of life and I’m adaptable to almost any situation.” That is definitely not a bad skill for someone to own in the film industry, “some directors are such drama queens and divas, and I think I have a great gift to handle any type of person in a professional yet practical manner,” Innocentia jokes.

Graduating from high school, Innocentia knew her life was to be directed into the arts. She decided on a career in film and enrolled herself at the Boston Media House in Johannesburg in video production the very next day. “I have a love of telling stories, and with film I don’t just tell it, I create it.” Coming from a musical background, she wanted to find a way to combine film and music, her two great passions. Unbeknownst to her then that she would end up owning a company that would major in music videos, Innocentia put music in the background and started specialising in film editing at the college. “I put in so many hours when I was studying, I was always at school. I wanted to learn about the industry from the ground up, and I wanted to know everything,” Innocentia explains burning with passion. Upon graduation, Innocentia walked into an editing job with a big production house. “I think took the job for my parents’ sake. I hated being stuck in an office, I have always been a free spirit, and so after six months I decided to leave.”

In the beginning Innocentia promoted her business only through word of mouth, filming conferences for

some of her old production contacts. It didn’t take long for Blue Lenz Productions to become a respected and well-known brand in its own right however. Blue Lenz has even started branching out into community development, taking equipment to underprivileged schools and teaching them the basics of film-making. “I try to facilitate the process, so that the kids own their stories. In the film industry experience is key and I am trying to offer these kids an opportunity to not only tell their stories but to learn skills that they can use for the future.” Another speciality of Blue Lenz

is the little-known world of archive footage. “Libraries and documentary makers have such a need for shots of Africa and its environments. I have the footage, but I want to create more, I want to keep the view on Africa fresh.”

Innocentia joined MEDO earlier this year when she was accepted to the Business Foundations course. “I had no idea what it was,” she laughs, “but I knew I was going to learn a lot!” Here she learnt basic business skills that she is now employing on a full-time basis in Blue Lenz, “punctuality and business etiquette is probably the greatest thing I’ve gained appreciation for. Everyone at Blue Lenz also now appreciates the value of time, ours and that of the client’s.” Going through the Foundations Business Skills course and the International Trade Programme course Innocentia gave herself homework to do everyday to ensure she fully understood and grasped all the concepts.

For the future Innocentia sees Blue Lenz dipping more into the educational space, not only developing young filmmakers in schools, but to create educational programming. “I want to address social topics that affect a South African audience. What I learnt from the work in the schools, is that everyone has a story to tell. An I want to tell it, educationally.”

The right angle

“I have a love of telling stories, and with film I don’t just tell it, I create it”

ENTREPRENEUR PROFILE FEATURE

I nnocent ia Masimene has a ver y specia l tool for l iv ing out her love of te l l ing stor ies. This tool i sn’t mechanical , i t ’s a business. A blooming business by the name of B l u e Le n z Pi c t u r e s that i s rock ing the boat in f i lm industr y shores. This young lady has nothing holding her back , as the only thing she bel ieves in , i s “ AC T I O N ” !

34

What does the professor say?

ENTERPRISE AND DEVELOPMENT FEATURE

EXPERT OPINION

1) How would you define social development?Social development is the process that results in the advancement of

communities so that the needs of communities are met and everyone lives a decent and productive life.2) How would you define social development in South Africa?

In South Africa, with our historical challenges, social development is concerned with meeting community needs in an equitable and fair manner, ensuring the well-being of all citizens.3) What is the importance/value of social development?

The value of social development is that if citizens’ needs are met and they live a decent life, then that country prospers. The country is more productive, it can meet the needs of its citizens and peace and stability are evident.4) What about social development makes you tick?

The fact that we can make a significant difference in the lives of young children and their families through innovative, creative and affordable development programmes.5) If you were granted infinite recourses to launch any development project, what would you do and why?

I would take what already exists, which are quality early childhood development programmes that are replicable and benefit children significantly, and I would take them to scale ensuring that every child has access to a quality early childhood development opportunity before entering formal school.6) How does entrepreneurial development fall under the infrastructure of social development?

Entrepreneurial development and activity is essential for the development of a community and a country. It is critical since it develops the economic aspects which are so important. Where an economy is thriving, we see that the social aspects of life are generally taken care of. 7) South Africa is divided economically between the very rich and the very poor. What would you define as the roles of social development in this context?

South Africa is divided economically and this is why economic

development must accompany social development if we are to ensure a better life for all. Developing only the social aspects of communities without economic development will not take our country very far. So any development must be socio-economic development. To bridge the gap we need simultaneous social and economic development.8) Do you think it’s the responsibility of big corporate businesses to help out the small guys?

Business certainly has a role to play in supporting the social and economic development of communities. Big businesses can share their skills, expertise and resources with small enterprises. They can purchase goods and services along their supply chain from small enterprises.9) Should businesses only invest money or also time? What would you define the ethics of this kind of development?

Businesses have the financial resources to invest in small enterprises and they also have huge amounts of social and intellectual capital to invest. Investment of skills and expertise can be hugely beneficial to the social sector. The ethical consideration in this kind of development is that any contribution or support must be respectful and appropriate and without “strings attached”.10) How can one avoid that social development becomes just another hand-me-down?

We can avoid that social development is just another handout by respectfully listening to communities, by intervening in an appropriate manner and by getting involved beyond money only. Business can use its wide range of skills and vast resources to benefit communities.11) What would you say is the answer to unemployment? Is entrepreneurship a possible answer?

The answer to unemployment is that our children and youth need to be appropriately trained and skilled. Then small business needs to be supported by government as it is small business and small enterprises and entrepreneurs who create jobs, driven by consumer demand.Successful entrepreneurs can be created through building a national ethos of entrepreneurship, through focusing more on Economic and Management Sciences in schools and by removing unnecessary regulations and “red tape” from the business environment.

Professor Er ic Atmore has over 35 years exper ience in the f ie ld of socia l development. The prof i s

even holding a senior posit ion in the subjec t at the Univers i t y of Cape Town’s Socia l Development

depar tment. We went to speak to him on why development matters.

ENTERPRISE AND DEVELOPMENTFEATURE

MEDO NEWS

The MEDO Mobile Entrepreneurship Centre, also known as “Treppie” , is on of MEDO’s flagship touring programmes. On the face it is a truck fitted with ten computer workstations, internet access and a small meeting area. Cimbling deeper into the mechanics of the machine, it is the first point of contact between MEDO and entrepreneurs in rural and peri-urban communities.

According to Nolu Tutani, MEDO project manager, “The goal is to engage with the community and encourage entrepreneurship.” She furthers that the Treppie has honed two very successful entrepreneurs,

namely Jeffrey Mulaudzi from Alexandra and Josias Motsoeneng from Middelburg who continued to the to the International Trade Programme in the UK.

Treppie operates on the basis that anyone who has a business is allowed to use the computers in order to apply for MEDO programmes, such as the Business Skills Foundations course, the Supplier Development programme and of course ITP. Each person is also given basic training in computer skills and an email address.

Should entrepreneurs not be chosen for the flagship programmes run at the MEDO offices, Treppie also hosts a variety of mini-workshops in business skills.

These workshops are either held outside the truck or a local community centre when numbers warrant it.

Often visitors to Treppie aren’t quite entrepreneurs to the true word, but rather people with ideas who are wanting to start a business. These would-be entrepreneurs are then invited to attend the “Idea to Business” full-day workshop to get the creative enterprise ideas flowing.

With a couple of years’ good service underneath its belt, Treppie has completed successful workshop tours in Durban, Cape Town, the Northwest Province, Mpumalanga and Gauteng without showing any signs of slowing down.

After all, everyone, no matter their location deserves the opportunity to become enterprising.

Meet Treppie: MEDO on the move

MEDO MAKING WAVES

37www.medo.co.za36

ENTREPRENEUR PROFILEFEATURE

After starting his career with a degree in mechanical engineering from the Cape Peninsula University of Technology, Dale migrated over to IT as soon he started working. “I was always interested in the tools that IT offer. I am fascinated by the way that computer systems can structure and simplify a life.” After grounding his IT experience as a system consultant and software developer, Dale decided to leave the Cape Town hustle and bustle and move closer to his hometown of Jamestown to be closer with his family. It was here in the Cape wine-lands that he accepted a job from a famed wine farm as IT manager. “This was probably one of the most significant times of my life. I hand-developed IT technicians by looking for people who had no formal training in the field.” Community and social development has always been a great passion in Dale’s life. Apart from starting the Jamestown Heritage Trust, he also started an education trust, Friends of Stellenzicht to restore a local high school.

Working as director of IT on the wine farm, did not quite fulfil Dale intellectually or emotionally. “It was a very cushy place to be,” Dale laughs. Though the job might not have been a challenging enough space that his mind yearned for, he was granted amazing opportunities nonetheless. The estate had a policy to give employees to opportunity the learn skills in whatever field they chose, one year Dale even completed a short course in Xhosa. In this regard he decided to try out a life coach. “I felt I needed to do something, I felt

uncomfortable in both mind and body,” he describes his mindset at the time. After enlisting the help of a body and mind coach Dale became, in his words, a new person. “I started mountain-bike-racing, I started reading, I suddenly had goals I wanted to chase. I was a house on fire! I always knew I was a leader and now I was put on course to become a social entrepreneur,” and shortly after Dale stepped away from his cushy office job to pursue his own ventures.

“If I could change one thing, I wish I joined a MEDO incubator sooner. I was arrogant coming from a high-ranking position, only now do I realise I really didn’t understand what it meant to be an entrepreneur.” Walking away from

the wine farm, Dale consulted numerous business contacts as to how to go by his brainchild of MiDO Technologies. “I found myself in a conundrum. I was completely alone and I was trying to marry community development and IT, back then these two concepts were worlds apart.” As fate would have it, however, Dale was looking for education software and this is where he stumbled on to a MEDO graduate who sold the softwares. He looked up MEDO on the internet, applied and the rest was history, or rather is now forming Dale’s future.

“MEDO changed the way I looked at business. I learnt that an entrepreneur should be about his business, not in his business. I basically had to divorce myself from the business which allowed me to look at my business plan critically.” Dale also realised that as an entrepreneur he had to walk around with his eyes wide open, seeking opportunity from every nook and crevice. Being integrated with a community of other like-minded entrepreneurs Dale mentions that they started forming a type of ecosystem, serving their individual purposes with each other.

Looking forward, Dale’s dream for MiDO Technologies is to empower his community through technology. “We want to give organisations the tools to do their

job with improved communication and data management. People get lost in technology. Funders want to see how many lives are affected before investing. I want to give those people the tools to do so.” Dale also has an apprenticeship project in the pipeline to mentor

young IT graduates in business and communication skills. Through this project he will not only grant young people valuable experience and knowledge, but will have the manpower to offer non-profit organisations in his community service at the lowest possible rates.

When all is said and done Dale is a successful businessman, entrepreneur, technician and community developer. His story, however can be taken up in two words which he describes as his life purpose: “Empower people.”

Empowerment through technology

“I am fascinated by the way that computer systems can structure and simplify a life”

Dale S imons, head of M i D O Te c h n o l o g i e s f rom Jamestown

in the Western Cape is an entrepreneur and communit y

developer with a noble pass ion. H is goal in l i fe i s to empower

his communit y through the communicat ion power of

information technologies and he is s lowly but surely reaching

that goal . . .

39www.medo.co.za

ENTREPRENEUR PROFILE FEATURE

Where

Being raised deep in the Eastern Cape by professional parents, Unathi and Sibongiseni grew up with certain expectations in mind. “My father was a businessman and my mother an academic at the University of Fort Hare, so we were definitely influenced and shaped that we were also expected to rise to great professional levels,” older sister Unathi explains. After school Unathi majored in English and Philosophy at the University of Fort Hare where her mother worked as academic. Seven years later when Sibongiseni finished school she opted to go into a differeent direction and moved to Pretoria to study IT.

After graduating, Unathi found her first foothold in showbusiness as a presenter for the morning news show, Good Morning South Africa after which she furthered her interest in media, marketing, the arts and even radio. She also moved on to producing various short films centred around social awareness issues such as xenophobia. “I guess that makes me the nerd of the family,” Sibongiseni jokes. She chose to learn the different aspects of IT through different cultures and she did so by travelling through Holland, the UK, the US and Canada. “I think Holland shaped me to who I am today,” Sibs explains, “the Dutch are a very courageous people, and where I was raised to be very subservient, my sense of adventure was awakened.” Sibs continued to work around the world, where she even ended up at Google headquarters as she had the intense desire to learn as

much as possible about the field of analytics, from the leaders of the world. Hard work is not something unusual for the sisters, however as Sibs completed her Doctorate degree in analytics, and Unathi is currently finishing up her Masters degree in media studies.

Asking the sisters on their definition of the term entrepreneurship, they answer as one person by completing each other’s sentences, “It is about creating an environment and opportunity to solve a business need that furthermore creates a sustainable economy.” Their business venture, Flavalite Innovations was launched in 2010, and what makes them a unique and notable analytics company, is that they don’t only calculate and report on clients’ returns from various marketing platforms, they also create marketing strategies in terms of content that appeals to the designated target markets. “Where our competitors only focus on the digital side, we do online and offline analytical measurement with an expert background in marketing as well,” Sibs explains. “This is definitely a passion of ours,” Unathi furthers with Sibs quickly cutting in, “this is our field of expertise in which we’ve been working in for the past 16 years, it really is a blessing to be able to do it with my sister, my best friend.”

Apart from Flavalite, the sisters also gave rise to a non-profit organisation Loveolution that is soon to be released as its own private company, that aims to help young

people do postgraduate degrees and get work, as well as mentoring young artists by pairing them with an expert of the field. “We want struggling artists to be able to show a product, their potential without all the red tape of contracts and copyright deals. We take a potential hip-hop artist and pair them up with an award-winning artist of that industry, and together they create a product that solely belongs to the artist,” Unathi expains.

The sisters joined up with MEDO after being encouraged to do so by other entrepreneurial development organisations. “We learnt so much,” they both voice simultaneously, “we learnt about pitching, closing deals, time management and most importably personal leadership,” they further. Looking to the future the sisters want to take both Flavalite and Loveolution global, “we want to create a dream-team of rock stars of analytics and arts,” Sibs excitedly explains, “we want to create leadership innovators of various different crafts and marry them together,” Unathi adds.

Talking about their personal and business relationship, the sisters are exceptionally close though Unathi firmly states she is definitely, “the big sister” with Sibs adding, “yes,she is so protective!” They work together on a basis of respect and operate from spiritual and emotional intelligence. “Respecting each other and our clients at the same time, goes a long, long way,” Sibs explains, and Unathi agrees fully on this subject.

S ibongiseni Maqhwazima and Unathi Tunzelana are

s isters f rom t wo ver y di f ferent f ie lds of interest , namely ar ts

and sc ience. With Fl a va l i t e I n n o va t i o n s , these t wo

conf l ic t ing f ie lds marr ied, creat ing a f ront runner of

analyt ics in i ts c lass.

art meets science

40

“As a kid I found it fun to sell things,” Khethi explains on his early start in the business world. Growing up in Alberton and Soweto he furthers that he was a very hyperactive child and so grabbed at every opportunity that presented itself. “I even sold sunglasses to my schoolteachers at a stage,” Khethi laughs. At 16, however, when Khethi joined the Soweto Business Chamber’s organisation, Young Entrepreneurs of Soweto his first steps were taken to the formal business world. This experience of going to class every Saturday, working on awareness issues about crime and HIV, would later act as instigation for his current venture, SchoolMedia.

“A year after I joined the organisation, I was elected as CEO and it became my responsibility to mentor students in ‘how to start a business.’” This was the moment Khethi began to see a gap in the educational market. “I went to school in an upmarket suburb, and I realised that there was so much more that I knew, that my classmates at the business school didn’t,” Khethi explains. And so he decided on his focus and passion in life; he wanted to get relevant information to young people. “I first thought about creating a youth club or a youth magazine. But neither of those ideas were

either practical or very reachable to young people. That’s when it hit me: Billboards! Advertising!” And SchoolMedia was born.Asking Khethi whether SchoolMedia is a cold business or burning passion, he

answers firmly, “seeing informational material and initiatives in schools is what drives me. I wake up every morning to see more information and opportunities awarded to the youth.” SchoolMedia sells A1 size to 6 metre-long advertising boards to schools. Brands use the space to advertise whilst providing information such as how to apply for university, how to be environmentally conscious and even offers information around fashion and clothing. “This concept furthers education largely through competitions and topics that the advertisers host. Like the cleanest and greenest school will win movie tickets, or they will list physical activities to do.” Khethi further explains that the relationship with information and

well-known brands is a very important marriage to reach learners effectively. “When it’s a recognisable brand you are guaranteed attention and because it’s a well-known brand promoting the information, and it actually accredits

what is being read.” Khethi joined MEDO

earlier this year, although he has been applying since 2011. “I think I’ve finally matured enough,” he jokes. He reached out to MEDO as he explains he has no formal education apart from

finishing high school. “I always knew I wanted to go into the corporate industry, but I had no formal knowledge of it. I learnt as I went along, but I needed that bit of clarity on the whole dynamics of running a business.” Did MEDO change the way he does business? “No, I was always on track,” he states, “they just helped me to make it more, to turn up the volume.”

Khethi’s dream for SchoolMedia is to start playing a major role in education. “I want to go into the whole world of media, software and hardware, and I want to bring that into schools.” That dream might not be as far down the rabbit-hole as he thinks however, judging by how far he has come for an under 30-year old yuppie.

ENTREPRENEUR PROFILEFEATURE

Born to sellK hethi Ngwenya’s entrepreneur ia l ventures began at the tender age of s ix se l l ing hair produc ts in his aunt ’s sa lon. At 12 he owned his own sta l l se l l ing f i re crackers to the local communit y. At 17 he ac ted as CEO for the organisat ion the Yo u n g E n t r e p r e n e u r s o f S o w e t o . Now, f inal ly K hethi i s running his own business, S c h o o l M e d i a and he isn’t even c lose to s lowing down…

“Seeing informational material and initiatives in schools is what drives me. It’s why I wake up every morning”

43www.medo.co.za

Tips for entrepreneurs

TREPPIE TIPSEDITORIAL

EXPERT OPINION

You will have competitionOne of the things you might need to consider

if you pursue that big contract with the large corporate is that you are not the only one doing this. Normally a company becomes large by embedding the same recipe successfully over and over again. A large company is, by its very nature, risk averse and it would not like to move away from the recipe that it has used successfully so many times in the past. Normally, therefore, if the corporate really needs your services, there is already someone offering your services. You therefore need to think carefully what you will be selling that makes you different – and remember, only one company can compete on price.You’re in it for the long run

I meet many entrepreneurs who get despondent after meeting a company representative twice and not getting the opportunity to submit a proposal. When doing business with a corporate there are so many things that influence a purchasing decision and one of these things is time. People take time to make decisions and corporates take even longer to make decisions. You should therefore be prepared to wait and to follow up and then wait, and follow up. In some cases a company already has a contract in place for the service that you would like to offer them. If this is the case then you need to find out when that contract is coming up for renewal and start working on the relationship now even if the contract only ends in two years time.When you view the sales process as a learning process then questions are a great tool to learning

Rudyard Kipling wrote a poem (The Elephant’s Child) starting with the following lines:

I KEEP six honest serving-men  (They taught me all I knew);

Their names are What and Why and When  How and Where and Who.

These six honest serving men can teach you a lot about where you are in the purchasing process as well as in the mind of the buyer. Don’t be scared

to ask a buyer what their thoughts are by asking well phrased questions such as: “By when do you require a solution in place?” or “What are the things that you need to still consider before making a decision?” A

good sales person can listen extremely well, without getting too emotional about the responses.

Build a relationship with the right personMany small companies believe their way

into a large company is through the procurement department. In most cases though the procurement department is an administrative entity that seeks to compare prices between commodities. When you sell to a corporate it does therefore not help to sell your uniqueness to the procurement department. Simplistically stated, they don’t really care about what makes you unique, as their focus is on what makes you the same so they can negotiate your costs down. If you are competing on adding value by offering a unique product or service, your relationship should be with the person in the company who understands what you sell. Seek to build a relationship with the end user first and then rather ask them to put you forward when the next opportunity comes along.Having a contract does not mean you have money in the bank

I once had a supplier phone me to tell me that he has had a vendor number for a number of years, but has received no business from our company. I thanked him for letting me know that we no longer needed his services. Having a vendor number means that a company has identified you as a possible business partner, but not that they are using you as a business partner. The same could be said for having a contract in place. Having a contact means that there is a strong likelihood of doing business with you. Unfortunately not all contracts get used.

By Wybrand GanzevoortDuring my time in the procurement department of a multinational company I have seen many small companies make mistakes in the way in which they approach large companies. The below are some tips to consider when doing business with corporate. One of the first suggestions that I would make to any small company starting out is to create a recognisable brand. Not only will the corporate associate a recognised brand with less risk to them, but you might at this stage also have the volume to meet the demands that they will place on you.

“

45www.medo.co.za

A business bond a family bond

Growing up in a small town in the Northern Cape, the sisters had a firm grounding in the importance of family and community values, “We grew up between nothing and nowhere so there really wasn’t much else to focus on,” older sister Yolandi jokes. When the girls were older, the family moved to South Africa’s biggest rural city, Heidelberg as their parents wanted to stay in a sheltered community, “I think they wanted to keep us out of the big bad city, but I guess we were just bound to end up here!” sister Natasha adds. PCD Assesments runs from Pretoria but they also reach out to various towns in Mpumalanga to Cape Town. “I wouldn’t say that we have a small-town-mentality, we rather have a great advantage as we are able to communicate to both worlds of people,” Yolandi explains their marriage of communication and business skills.

Straight after high school, Natasha knew her path was to be in the study of people as she studied Psychology at the University of Pretoria until Honours level after which she completed her Psychology Council Exams. Yolandi, on the other hand took a different path to her current occupation as she worked as a real-estate agent for ten years before joining her sister in the psychology field. Next year she is also graduating with a degree in Industrial Psychology from the distance-based university, UNISA.After working for a company that did

psychometric tests for miners, Natasha decided she wanted to move into the industry on her own. “We really struggled to get into the mining industry,” she explains, “then one day we were approached by a company that offered different type of tests that focused on reaction abilities, and so we started in the trucking industry.” Yolandi furthers that the industry is also quite close to their heart as their father was almost run over by a mining evaporator. “If he didn’t have quick reflexes and a quick reaction to the situation, we would have been without a father today,” Yolandi sternly adds.

Their psychometric tests are accredited by the Medical Council of South Africa and are based on scientific findings from Karl Jung and Meier Briggs. “We base everything on research that has been proven over and over again,” Natasha explains. They have mainly five areas of focus in their tests, namely reaction (speed and logic), stress tolerance, concentration, non-verbal IQ tests and a personality test. “We have proof from our clients that testing drivers before allowing them on the roads significantly lowered their accident rate,” Yolandi boasts. “I guess the main thing it comes down to, is that truck agencies need to ask themselves before hiring a driver, is whether they would give that person the key to their truck or their Mercedes. And the truck is always the more expensive.”

Yolandi and Natasha joined MEDO earlier this year as they felt they did not have enough knowledge to manage their business to reach its full potential. “We felt the knowledge that we owned was only going to take us so far, we felt MEDO could open doors for us,” Yolandi explains. The most significant things they learnt from MEDO was the value of PR and clarity on understanding corporate traffic.

Looking to the future, the sisters are branching out to a fully equipped training centre for truck drivers. “We want to train these drivers in a year-long programme, not only how to drive safely, but also what to do in emergency situations,” Natasha explains. They are also working in collaboration with truck agencies so that graduates will be employed after the training. A dream project that is still in the pipeline is that they want to expand the training centre to a child training centre. “We want to test the kids of the truck drivers in their potential capabilities, but more so, we want to encourage them in studies to give them exposure in a huge array of subjects,” Yolandi furthers.

It is often said that one should never do business with family, however it seems in the scenario of PCD Assesments this rule does not quite apply. “We get mad at each other, but in the end of the day we are connected by something more than a partnership, we will be bound to each other for ever,” Yolandi explains with little sis Natasha eagerly agreeing.

ENTREPRENEUR PROFILE FEATURE

Sisters Yolandi and Natasha van N iekerk share a love of psychology and are pushed for ward by their eagerness to understand how people work . Their jo int venture, P C D A s s e s s m e n t s specia l ise in psychometr ic tests that look at the potent ia l and capabi l i t ies of t ruck dr ivers, mak ing South Afr ican roads a l i t t le safer for a l l .

46

Kopano N tsoane has taken his chi ldhood love of v ideo gaming and turned i t into

an educat ional game - changing device. H is business M o d e r n E n t e r t a i n m e n t i s s lowly but

surely on i ts way to creat ing the gaming epicentre of Afr ica with custom designed games for both educat ional inst i tut ions

and corporate businesses a l ike. What i t a l l comes down to, however, i s that i t i s merely

a pass ion he managed to turned into a real i t y…

ENTREPRENEUR PROFILE FEATURE

Growing up, Kopano lived with his grandmother in the township of Kwa Thema in the Ekurhuleni district. As a kid, video-gaming was Kopano’s favourite pastime. He even turned it into the favourite pastime of the other kids in the community as they were constantly showing up to play on his Play Station 2. This is where the business man he was born to be woke up as he started charging the neighbourhood kids per half-hour to play. “I used to sleep in my bed and there would be knocks on the door for kids who wanted to play. Then I got up and let them, I mean I was getting paid for it in the end!” Kopano laughs. And that is where it all started, in a bedroom in his grandmother’s house with a PS2.

After graduating high school, Kopano’s dream was to go to university and to study Economics. This didn’t quite work out and he was forced to find employment. He started working at local airline, Khulula in the customer service department and later moved on to become a flight attendant. “I hated working. The main thing I wanted was to go to university, but I just couldn’t make that happen,” he explains. After leaving the airline, Kopano remembered the gaming days in his grandmother’s house, which

gave him an idea and the next thing he did was starting to draft a business plan. “When I left work, harsh reality kicked in, I needed money somehow. I think that was the greatest motivation I’ve ever felt.”

Still working from his grandmother’s house, Kopano bought a gaming consul and restarted the business of charging people to game. Quickly one consul grew into three. “It was in this time that I started researching the gaming industry intensely to find out what I could actually do with my business,” Kopano explains. After being drawn to the realm of educational games, a friend gave Kopano an educational game that was created in the US and not sold in South Africa. “Looking at the gaming that happened in my bedroom, every time someone came to play a game they started improving. This escalated until they could play the game in one sitting until the end without batting an eyelid. That’s the basics of learning.” Kopano then decided to take his consuls to schools, where institutions took immediately to the concept as it was unheard of at the time. “I’d set up a soccer game at the school and although it seems like a recreational pastime the kids would be learning unconsciously about teamwork, rules,

and a vast array of skills that no one would ever have thought of.”

Modern Entertainment continued to grow to the point that he employed a team of people that custom designed games for clients. “We can design anything. Something to educate about product development, to team-building, even to science,” Kopano furthers, though he states no matter the subject they always yearn for it to be fun. He refers to their content as “social games” as it is aimed to resolve a type of problem unconsciously. Kopano is even in the process of learning the design process himself.

Joining MEDO has changed the way in which Kopano does business significantly. “One of the greatest things I learnt was the art of sales, and not just the business, but myself as well. I take myself seriously as a businessman now.”

Kopano’s dream is to create African-based content. Content for Africa, by Africa as he puts it, to revolve around issues that is actually being experienced in Africa. “I want that when people think about gaming in Africa, they think of us. The gaming industry is larger than Hollywood, yet in South Africa it is very small. There is so much potential for education, and I want to use it.”

The game-changer“I’d set up a soccer game game at a school, and although it seems like a recreational pastime, kids would be learning unconsciously about teamwork, rules and a vast array of skills no-one would have ever thought of”

48

Sapho was born and raised in rural Eatern Cape by a mother who practiced as a nurse and father who was an entrepreneur. “My father and mother’s struggles and successes taught me to hone my instincts, to preserve and to hone a strong sense of the self,” Sapho explains mentioning that his family was also closely involved with the apartheid liberation struggle. Being shipped off to boarding school at a young age, Sapho furthers he learnt to be incredibly independent and self aware. Even as a young man Sapho knew his life path would lead to becoming an entrepreneur, “In my matric profile I wrote ‘Invent something and become a millionaire’ under future ambitions. This was quite a bold move, especially for someone who wasn’t one of the highest performers in class,” Sapho jokes. Struggling financially at university to complete his degree in graphic design, Sapho started various small businesses from his dormitory room to make ends meet. “This was the time when I realised how important cellphones were and would be in the future as unconventional means to communicate became a priority to save money.”

Coming from a rural town in Transkei, Khayelethu was raised by her grandparents. Where her grandfather was involved in the apartheid struggle, she explains her grandmother acted as counterpart providing a very balanced life. “She instilled values of Christianity, education and good behaviour. She was a big disciplinarian, which helped me to

remain focussed throughout life. After her grandparents passed, she went to live with an aunt who provided for her by sending her to school and university. “I watched my aunt and uncle, work tirelessly to provide for us,” she explains. It is also thus no surprise that when Khaya moved to Port Elizabeth to study construction management at the Nelson Mandela Metropolitan University, that she also worked tirelessly acting as chairperson and president to various campus societies.

It is also here at NMMU where Khaya and Sapho met as students, and from the get-go they already wanted to go into business together, “He was very enthusiastic and passionate about business, and we talked about opening a photography and art shop together.” That dream never became realised as Sapho’s proposed business plan was turned down. He realised then that even though not everyone will believe in your idea, you need to believe in yourself and keep on pushing. Shortly after, Sapho moved away and the two never exchanged new contact details.

After graduation Khaya worked at the Nelson Mandela Metropolitan Municipality, where as fate would have it, she ran into Sapho only a month on the job. By that time Sapho was already running a business with his brother, but the pair decided to start another one together. With only five months on the job, Khaya resigned and their joint venture, X Spark Design and Advertising was born. “This was challenging due to

the lack of funds, knowledge and skills, but what we lacked we quickly learnt,” Sapho explains.

UmoyAir is actually a consequence of X Spark, as Khaya and Sapho saw a need for an affordable means of advertising and market reach. UmoyAir is thus a mobile communications company focusing on client advertising. “We made mistake after mistake, we were literally laughed at and we came extremely close to be taken advantage of by chance takers and losing everything. But we were determined and kept pushing,” Sapho states.

Sapho and Khaya joined MEDO after a client at another developing agency forwarded them an email about ITP applications, and they haven’t looked back since. “I’ve garnered a great value for time,” Khaya explains, “Time is crucial, so get to the point.” Sapho sees the MEDO experience the same as that of a diamond in the rough, “We were the right kind of coal, but needed intense pressure, we rediscovered ourselves.”

Looking to the future the pair sees UmoyAir on the forefront of IT solutions in Africa and to be listed on both the JSE and NYSE. Both add that by then they wants to grace the covers of Forbes Magazine. “All big businesses were once start-ups. I see UmoyAir as not only a South African giant, but an African giant. Our dream is for UmoyAir to stimulate innovation and help bring solutions that will impact positively on the lives of all Africans,” Khaya firmly states.

ENTREPRENEUR PROFILEFEATURE

The sky is the limit

Sapho Maqhwazima and K hayelethu Nontsana Cokoto are a par tners to keep

up with . Their mobi le adver t is ing agenc y, U m o y A i r i s mak ing headl ines as being

crowned the nex t best thing in South Afr ica . Having met at univers i t y the pair k new

their re lat ionship was that of the strongest k ind, a business re lat ionship. And together

they have not only star ted one, but t wo successful companies, with the newest and

most notor ious being U m o y A i r .

51www.medo.co.za

SOCIALTRAINING

MEDO NEWS

Out & About:Training 2014 Big Pitch

SOCIAL TRAINING

MEDO NEWS

& Bootcamp& Treppie

53www.medo.co.za52

SOCIAL SEEN AROUND THE WORLD

MEDO NEWS

Out & About:Taking on the UKThe South African High Commission in London

TREPPIE TIPSEXPERT OPINION

FEATURE

Entrepreneurs who “get” social media

Entrepreneurs who don’t “get” social median

Brands that “work” in social media

Do it yourself!

Outsource to a freelancer, or someone nin your organization who is

empowered to do the work on your behalf.

Brands that don’t naturally “work” in social media

Use your personal brand and your passion to build an audience and drive engagement. Add

humanity to your brand through your own identity.

nSteer clear! Spend money on search marketing, search engine optimization or

better sales people.

How to succeed in social mediaMike Stopforth, social media wizard and entrepreneur has created a whole business empire, Cerebra, out of the wonderful marketing powers of social media. Learn from the social media giant himself on how to optimize your online presence:

I run a company that helps other companies make sense of social media. We field many enquiries from business owners and small to medium sized enterprises looking to leverage social media for marketing and collaboration purposes but are seldom able to take that work on. On many occasions I tell those potential clients that I think the solution to their social media quandary is within their power, and I always refer to the same matrix to illustrate that point:

The matrix acknowledges that there are companies and brands that naturally work in social media – as an example fashion designers, art dealers, sports industry, and so on. Some brands struggle to find their fit in social media – it’s tough for say a plumber, or a construction company, or a conveyancer (as random examples) to appear “sexy” as brands online.

Similarly, different people feel differently about social media. Some gravitate towards it naturally, almost addictively. Others despise it! And many of these people are entrepreneurs. To expect your brand (the commercial embodiment of your personality) to flourish in social media if you yourself do not, you are facing a schizophrenic threat.

Looking at the matrix and the first quadrant in particular. Logically, social media marketing for entrepreneurs with a natural knack for social media, and a company that just works online, should be a no brainer! Simply do what you do, but with a refined strategic approach that meets business objectives

beyond likes and followers. The second quadrant applies to

entrepreneurs who have a natural knack for social media but a company or product that doesn’t. My advice here would be that they use their personal brand to build equity around the company or product, in much the same way as would happen in the “real” world. You pick a plumber because you or a friend trusts him or her, not because they have a great ad or billboard!

The third quadrant addresses the entrepreneur with little to zero technical or social media aptitude but a company, brand or product that does. Here my advice would be to outsource your social media strategy, content creation and community management to a small agency, freelancer or someone in your organization who does have a natural slant towards social media.

The fourth quadrant is the no go zone. There is no sense investing time and energy in social media if you hate it and your brand has

no relevance there! Rather spend money on search marketing or better sales people!

A final cautionary tale – while most social media platforms are free to use and free to register a profile on, they are not necessarily free to engage on. Successful engagement requires significant amounts of investment in time and energy and creative thought.

Good luck in your social media adventure!

If you do decide to take social media more seriously please check out the free resources

and downloads at Cerebra’s website – www.cerebra.co.za/resources - designed to empower you and your staff for more

profitable social media engagement.Cerebra is not the only thought leader

providing you with tons of useful information online. There are multiple LinkedIn groups,

webinars, reports, eBooks and more available to you and your team – almost all free – that will fast track your social media success story.

55www.medo.co.za54

ENTREPRENEUR PROFILESUCCESS STORY

FEATURE

Directly after finishing high school, Sechaba took a job at ABSA bank as a bank teller, “My parents weren’t too keen on the idea of a GAP year, so if I were to take a year off, I was expected to spend it working,” Sechaba laughs. Through ABSA Sechaba was given the opportunity to study a B. Banking degree through UNISA, the distance-based universit. Although it took him a few years to graduate the course, he firmly states it was something he most definitely did not enjoy. Over the next few years Sechaba moved between various banks and investment firms, always climbing up higher in the ranks with every move. “I enjoyed every position in the banking environment, except payments,” Sechaba jokes. When ABN AMRO decided to close offices in South Africa where he was working as credit analyst, Sechaba decided it was time to move on to Event AMI, his first entrepreneurial brainchild.

“Working for a company, earning a salary every month is great, but it is no way to live. You get comfortable and your brain gets fat, you stop thinking about ways to improve things around you,” Sechaba explains his jump to becoming an entrepreneur. In 2012, Sechaba was part of the International Trade Programme Group in London where investors saw the potential of Event AMI

and offered to buy it off him. “Event AMI was a lot of fun, but I am not really an eventing type of person, so it was really convenient to sell. We had a lot of big contracts, but we didn’t have the capital to handle it, so it was time to step out.”

After Event AMI, Sechaba took a few months to clear his mind and then Creditable was born.

“Creditable is software that allows anyone to lend money. Banks are terrible and analytical so this allows companies to loan money to those who want to do stuff, but can’t,” Sechaba further explains that with his background in banking he knows the ins and outs of the loaning process that often weighs customers unfairly. “If more people have access to better capital, more people can start-up and create. I am a firm believer that people and companies should form credit unions because only when you have money, can you make money.” Asking Sechaba whether Creditable

was born as result to his failed attempts to receive a loan for Event AMI he merely laughs.

Sechaba joined MEDO for a reason very different to other entrepreneurs, “my friend had a crush on a girl at MEDO and made me sign up with him,” he laughs. After seeing what MEDO was about, he decided to stay regardless of the girl, “I was all out of ideas at the time, and I realised I

needed some help.” He furthers that at MEDO the most significant thing he learnt was reading people, “you need to know who can and cannot give you business whether it be through body language or the words that come out of their mouths,” he explains.

10 Years down the line, Sechaba is looking to hand

Creditable over to “someone younger and smarter” as he explains that is the natural life thread of a sustainable business. “I’d say after that my dream project will be to run the South African Reserve Bank and to create a super-bank for Africa. Currency is the base of stability for any country, and I have a few ideas how to implement that.” Until then, however, Sechaba is helping business by business, person to person receive fast and effective loans as he explains, “starting a business is effectually the only way to take people off the street and down the line build hospitals, roads and schools.”

“Working for a company, earning a salary is no way to live. You get comfortable and your brain gets fat”

The thrill of creatingSechaba Ngwenya has a keen eye for business and a passionate heart to go with it. After selling his successful ticketing business, Event AMI, he is currently building up his next project, Creditable. Sechaba is one of MEDO’s greatest success stories, and we thought it was high time to learn more about the man behind the business.

MEDO SUCCESS

56

The intention in the 2007 BBBEE codes has been to link the various elements of the codes so that your BBBEE transformation plan becomes your social and economic development plan. In this way the elements in the codes where development is required would lead to the elements in the codes where outcomes would be measured.

So for instance, the area of Enterprise Development was intended to contribute to Preferential Procurement and the area of Skills Development was intended to contribute to Employment Equity. Unfortunately these paths were not clear which led to many companies doing work in the areas of Skills Development, Enterprise Development and Socio-Economic development that were not linked to the four outcomes based elements of Employment Equity, Management Control, Ownership and Preferential Procurement.

With the amended codes the DTI has forced us to consider the linkages between the different elements. The way that they have done this in the area of Enterprise Development is by introducing Supplier Development and

combining Enterprise Development, Supplier Development and Preferential Procurement into the same element. The significance of Enterprise and Supplier Development has also been highlighted in that it is now scoring more points than any other element which forces us to consider it as part of a value chain approach to development.

The value chain approach to development

The value chain approach to development that is used in Enterprise and Supplier Development (ESD) is not unique to South Africa and is a major international approach to economic development, especially in developing nations. The value chain approach has an emphasis on localisation, requiring companies to determine how they will be sourcing their imported products nationally. What the amended codes have done is to allocate specific targets to each area within ESD. In this change Supplier Development and Preferential Procurement receive the bulk of the point allocation making us view it as a priority.

What makes Supplier Development different from Enterprise Development?

Broadly speaking, through Enterprise Development you could previously focus on developing any company that was more than 25% Black Owned. There was no need for these companies to supply to you.

Supplier Development now specifically targets the gaps that your company has in the areas of Preferential Procurement. This relationship is made clear through the contracting bonus points that you could achieve by contracting from companies that you are developing. In the future you will therefore only be able to claim Supplier Development points if these companies are supplying to you.

The goal therefore is to sustainably develop companies in your enterprise development efforts to an acceptable standard of service delivery, before they will be supplying to you. Once these companies have entered your supply chain you can go about developing the companies through a long term contracting relationship in order for the companies to become sustainable and deliver the intended volumes over a longer period of time.

The emphasis in the Amended BBBEE codes is on

The DTI has a tough mandate. Broadly speaking they need to encourage economic growth and simultaneously transform the wealth disparity between black and white South Africans in the country. At this stage many have asked why BBBEE has not ended yet and unfortunately the answer lies in that progression around transformation has been slower than anticipated. Wybrand Ganzevoort, Lean Enterprise and Supplier Development consultant, offers a comparative analysis of Enterprise and Supplier Development between the amended and previous BBEEE codes.

Do transformation practitioners require a new skillset?

With the change in the codes many transformation practitioners are finding that the skillset required in the Enterprise and Supplier Development area is significantly different than that required from the other elements of the codes. Skills such as contracting, procurement, value chain analysis, core business skills and change management are now expected in this field in order to consider the holistic business ecosystem when developing an ESD plan.

This will force many South African companies up the transformation maturity curve in order to deal strategically with many more small suppliers than they had previously dealt with. In the case of the procurement department a much stronger cross functional skillset will now be required for many more suppliers than the traditional core strategic suppliers.

Is Supplier Development a new concept?

Even though Supplier Development is relatively new to the South African landscape it has a rich international history. One of the benchmark companies that has made use of Supplier Development has been Toyota, leading to such a level of success that companies all around the world have made use of the practises in the Toyota Production System.

Toyota had a view that if they were to develop their suppliers, that advantage would positively impact on Toyota itself. Put very simply, Toyota believed that if they could develop their suppliers they would have a

reduction in cost, an improvement in quality and an increase in delivery or throughput. These then are the major goals of most international supplier development programmes.

What makes South Africa unique regarding Supplier Development?

South Africa’s needs are slightly different to that of the rest of the world when we think through what is required in the area of Supplier Development. Many SMME’s that have been developed in the past are facing serious barriers to entry in order to supply to large South African companies.

Previously Supplier Development could be done on any size of company that was more than 25% black owned. The amended codes specify that Enterprise and Supplier Development can only take place on suppliers that have a turnover of less than 50 ZARM and are more than 51% Black Owned. Further to this, added bonus points were created in the codes for job creation.

The goal of supplier development in South Africa is, therefore, not only to focus on the quality of products and services, but also the sustainability and growth of SMME’s.

The requirements expected from a Business Development Support Provider

In the past much of the attention given in the area of Enterprise Development support has been associated with sales. This will not change as it will always remain the focus of any small company. Attention will still be given to increased turnover, managing the sales pipeline and managing cash flow, but closer

emphasis will now be placed on the delivery mechanisms associated with the increased demand and quality.

In the future, a strong emphasis will also be placed on Operational Management and Continuous Improvement methodologies linked to quality improvement. Service Level Agreements will start to become an instrument in the Supplier Development process which will emphasize areas such as Mean Time to Deliver and Delivery in Full on Time.

Does Lean Manufacturing benefit Supplier Development in South Africa?

If we simplify the definition of Lean as a method to enhance and deliver consistent value then it becomes quite rational to see how Lean will benefit South African organisations. Working in the supply chain of a multinational company I have been surprised at how many companies have sought to compete based on the business they have conducted in the past. These companies have assumed that they will deliver in the future and have not been able to define the value that they add to the companies that they are supplying to.

When their contract comes up for renewal they realise that they are offering a commodity and suddenly find themselves negotiating based on cost. Lean supplier development will assist companies in determining value from the customer’s point of view, embedding practises of continuous improvement in consistency of delivery and leading to value offerings rather than commodity offerings. If done correctly supplier development will have significant benefit to both the customer as well as the supplier.

Enterprise Development

Supplier Development

Preferential Procurement

Written by:

Wybrand GanzevoortDevelopment

ENTERPRISE AND DEVELOPMENTEXPERT OPINION

FEATURE

59www.medo.co.za58

ENTREPRENEUR PROFILEFEATURE

SUCCESS STORY

“Touring in a bus is like visiting a zoo. I want people to communicate and interact with Alexandra and its people”

At only 22, entrepreneur Jeffrey Mulaudzi has achieved more in the business world than most other 22-year-olds currently graduating from university ever will. His venture Mulaudzi Alexandra Tours was started in 2010 when Jeff was still finishing school where it evolved from showing friends around, to a notable must-see tourist attraction.

MEDO SUCCESS & community

Conversation

Jeff was born and raised in Alexandra Township in Johannesburg where he lived with two siblings and his mother who was a domestic worker. He explains at school he was very restless and wanted to be unique in everything until he finally found an outlet for his restlessness through hockey. Hockey was also what awarded him a bursary at an upmarket school which led him to start Mulaudzi Alexandra Tours. “I had a French hockey coach and in 2010 I gave him a tour of my hometown of Alexandra by bicycle. He enjoyed it so much he immediately called up four more of his friends. With the money they gave me I bought two more bicycles and the business was started,” Jeff explains.

“I love Alexandra, it is a very special place to me. After learning a bit of French from my hockey coach, I always wanted to speak to the tourists that were constantly coming through, but I could never get to them as they almost never left their busses,” Jeff explains. Bicycle tours were thus the perfect medium for the young tour-guide as suddenly tourists were able to interact with Alex, instead of just seeing it.

Jeffrey takes tourists to various heritage sites around Alexandra including a school, Nelson Mandela’s house, a shebeen and Mogudu. “Touring in a bus is like visiting a zoo, I want people to communicate and interact with Alexandra and its people,” Jeff explains.

Jeffrey joined up with MEDO after being introduced to the company through the Treppie van. He explains that the experience taught him to be more adventurous in his business and move out of his comfort zone. “I learnt how to improve my business to generate money through being professional. When it is something so close to your heart it is often difficult to distinguish yourself from your business,” Jeff explains.

Looking towards the future Jeffrey sees Mulaudzi Alexandra Tours as a feature part of the soul of Alexandra. “I want people to become

aware of Alexandra and put it on the map of something tourists feel they ‘must do’.” He furthers that there is often quite a lot of negative focus on Alexandra as a township, he wants to change that image through creating awareness about its rich history. On the topic of entrepreneurship

in South Africa, Jeffrey’s view is the same as that of his business, “people need to create jobs in order to unleash South Africa to its true potential,” he explains. Jeffrey furthers that though he knows one of his strong points won’t ever be in academics, he knows he is a

creator to the true sense of the word, “and that is exactly where I thrive, where I get the freedom to decide on how the business should be managed, where I get the chance to be innovative and therefore fill gaps in the economy. Entrepreneurship is truly a very important and special thing.”

Jeffrey’s life-long dream, apart from Mulaudzi Alexandra Tours is to become a chicken farmer in the Pietersburg area, “for now my passion is cycling, but one day I hope that the tours can be self-sustained, because then nothing will stop me from farming.”

61www.medo.co.za60

MEDO PROFILEMEDO NEWS

FEATURE

What is your background? How did you get where you are today?When I was a kid I went to two government schools, HA Jack in Highlands North and Sandringham High, followed by a degree from Wits University. I grew up in Johannesburg and lived there until January 2014 when we moved to Cape Town. From 1884 I studied Chemical Engineering followed by Marketing Management, project Management and finally a MBA in 2006.

How did MEDO come to life? Bjarke and I realized that we needed to brand what we did in Enterprise Development, so we formalized MEDO in 2011. From 2008 we had been doing Enterprise Development and other projects as consultants and it was only when we created MEDO that we developed focus. Since then the business has exploded.

What is MEDO about, what are its goals? MEDO is the Meta-Economic Development Organisation, and the focus is on economic development. Our goal is to “build the economy one job at a time” and that drives everything we do.

Would you say MEDO is a career or a passion? It’s both. I’ve finally found the one thing that I’m deeply passionate bout, can be best in the world and it drives my economic engine, to quote Jim Collins from his book “Good to Great”.

What did you learn from the development industry? I’ve leaned that everyone wants to make an honest living and gain dignity at the same time.

How would you define the term “entrepreneurial development”? Entrepreneurship is a mind-set, and entrepreneurial development is all about opening up people’s minds to think creatively and in an enterprising way.

What according to you does the term “entrepreneur” mean? An entrepreneur is someone who takes control of their destiny and creates their own future and wealth, without

waiting for it from elsewhere. Entrepreneurs take responsibility and they don’t blame and point fingers at commerce and government when they can’t make ends meet.

What makes you tick about entrepreneurial development? When I hear that one of the MEDO Entrepreneurs has signed a deal and created another job, I feel a great sense of achievement. After 20 years of going after my own success I get a kick rather from others succeeding.

Are you also an entrepreneur at heart? Very much so. I’ve always had some kind of enterprise going, from the time I started selling marbles at school when I was 9. Even in my corporate roles I was very enterprising and always grew the business unit I was running, sometimes faster than the company could handle. I was always very popular at board level and hated by my managers, as I ignore politics and never knew my place. When I left the corporate world in 2008 I was doing myself and my boss a favour. Many entrepreneurs experience the same and struggle to succeed until they build their own business.

Where do you see yourself and MEDO in the next 10 years? All I know is that I will be happy. I‘ve learned in life that opportunities arise that we can never anticipate, so I don’t even know where we’ll be in a year from now.

Do you only teach entrepreneurs, or are you also taught in the process? I often feel that I learn much more from the entrepreneurs than I impart to them. I do know that if my sessions were not of value, the entrepreneurs would leave, and they currently don’t.

If there was only one thing you can teach developing entrepreneurs, what would you tell them? If you aren’t selling you aren’t eating.

What is your life ambition? To be happy and for those I love to be happy.

The mind of MEDOCo-founder and Co-CEO of MEDO Judi Sandrock is much more than a mentor to coutless entrepreneurs. She is an entrepreneur herself. Having spent years climbing up corporate ladders her own company MEDO is showing no signs of slowing down. We sat down with Judi to pick the brains behind the enterprising corporation.

“An entrepreneur is someone who takes

control of their destiny and creates their own

future and wealth without waiting for it from

elsewehere.”

62

IN THE NEWSDTI’S first youth entrepreneur incubator opened by MEDO

DTI’S first youth entrepreneur incubator opened by MEDO

Bruce Whitfield interviews Judi Sandrock

BUSINESS BROTHERS

Entrepreneurs Enter “The Den” Again

ICT traders network in UK

Entrepreneurs bring British business back home

MEDO entrepreneurs return to SA after successful international trip

SA entrepreneurs conquer the UK

Opportunities for SA entrepreneurs

ESD Schemes ensure growth for small black owned mining businesses

Judi Sandrock interview

Small Business in budget benefit

Business & Technology

Treppie assists disadvantaged entrepreneurs

ARE WE THERE YET?

MEDO FOR UK & SA BUSINESS LINKS

Judi Sandrock interview

Nothing to report by the DA

Smart Procurement World Western Cape - Agenda

National Trade Programme supports local entrepreneurs by funding

MEDO ICT entrepreneurs return to SA (07h00)

MEDO ICT entrepreneurs return to SA (10h00)

MEDO ICT entrepreneurs return to SA (12h00)

Enterprise Development requires going to where entrepreneurs are located

Judi Sandrock

2014 speakers

MicroVision: About Us

Trade programme supports entrepreneurs with travel costs

SA Chefs and Tsogo Sun team up

BT Global Services continues support for MEDO, boost SA entrepreneurship

Tsogo Sun’s guesthouse finalists announced

Tsogo Sun’s guesthouse finalists announced

BT takes local entrepreneurs overseas

ENTREPRENEURSHIP: International programme

MEDO to help subsidise business trips

Telephonic Interview - Noluthando Tutani, Project Manager of MEDO.

Telephonic Interview - Noluthando Tutani, Project Manager of MEDO.

Get into international trade with ICT incubator

Telephonic Interview - Noluthando Tutani, Project Manager of MEDO.

Calling all microentrepreneurs and representatives of trade associations

Telephonic Interview - Noluthando Tutani, Project Manager of MEDO.

MEDO and dti showcase at South Africa House - London

National Trade Programme launched to support local entrepreneurs

South African entrepreneurs conquer the UK and bring business back home

Telephonic Interview - Noluthando Tutani, Project Manager of MEDO.

MEDO and dti showcase South African enterprise and supplier development

MEDO and dti showcase South African enterprise and supplier development

Telephonic Interview - Noluthando Tutani, Project Manager of MEDO.

Telephonic Interview

Hopefuls make their pitch

MEDO - Business Boot Camp 2014

Hopefuls make their pitch

Innovative apps may result in ITP trip to Britain

Telephonic Interview - Helen Banda Bain, Owner of Banda Business Services.

TREND: Support for local business could boost SA’s economy

Q & A with entrepreneur Judi Sandrock

Final phase of the International Trade visit selection process Trade programme

Trade programme to take business to the UK

SA startup wants to give you phone calls for free

Small business compete for seat on UK plane

Breathing fresh air into mobile advertising

Breathing fresh air into mobile advertising

Small businesses compete for seat on UK plane

FEATURE: The week in startups

Countdown to business success

Countdown to business success

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6-Mar-14

13-Mar-14

24-Mar-14

24-Mar-14

24-Mar-14

27-Mar-14

1-Apr-14

1-Apr-14

1-Apr-14

1-Apr-14

2-Apr-14

4-Apr-14

9-Apr-14

10-Apr-14

24-Apr-14

12-May-14

12-May-14

19-May-14

20-May-14

22-May-14

29-May-14

13-Jun-14

17-Jun-14

17-Jun-14

18-Jun-14

18-Jun-14

19-Jun-14

22-Jun-14

23-Jun-14

23-Jun-14

24-Jun-14

27-Jun-14

27-Jun-14

27-Jun-14

28-Jun-14

7-Jul-14

8-Jul-14

10-Jul-14

16-Jul-14

21-Jul-14

21-Jul-14

24-Jul-14

25-Jul-14

25-Jul-14

28-Jul-14

29-Jul-14

29-Jul-14

29-Jul-14

R7 645,00

R11 467,50

R216 640,00

R111 918,40

R36 300,00

R65 731,96

R14 724,60

R11 396,00

R12 100,00

R23 750,00

R14 276,46

R212 000,00

R46 030,53

R33 375,20

R22 787,25

R6 000,00

R25 250,00

R135 000,00

R3 349,33

R2 750,00

R26 900,00

R108 500,00

R103 000,00

R108 500,00

R8 250,00

R2 750,00

R2 750,00

R2 750,00

R3 520,00

R2 750,00

R8 547,00

R5 390,00

R2 750,00

R15 750,00

R21 175,00

R15 750,00

R212 000,00

R249 000,00

R33 275,00

R29 040,00

R30 800,00

R52 580,00

R16 170,00

R12 100,00

R30 250,00

R22 176,00

R27 225,00

R19 800,00

R36 000,00

R105 000,00

R21 889,00

R11 000,00

R31 418,40

R20 901,33

R105 000,00

R18 150,00

R28 750,00

R19 800,00

R17 360,00

R15 750,00

R37 500,00

R16 800,00

R16 800,00

R25 000,00

R3 500,00

R64 792,81

R49 587,00

R30 580,00

R45 870,00

R866 560,00

R447 673,60

R145 200,00

R262 927,84

R58 898,40

R45 584,00

R48 400,00

R95 000,00

R57 105,84

R848 000,00

R184 122,12

R133 500,80

R91 149,00

R24 000,00

R101 000,00

R540 000,00

R13 397,32

R11 000,00

R107 600,00

R434 000,00

R412 000,00

R434 000,00

R33 000,00

R11 000,00

R11 000,00

R11 000,00

R14 080,00

R11 000,00

R34 188,00

R21 560,00

R11 000,00

R63 000,00

R84 700,00

R63 000,00

R848 000,00

R996 000,00

R133 100,00

R116 160,00

R123 200,00

R210 320,00

R64 680,00

R48 400,00

R121 000,00

R88 704,00

R108 900,00

R79 200,00

R144 000,00

R420 000,00

R87 556,00

R44 000,00

R125 673,60

R83 605,32

R420 000,00

R72 600,00

R115 000,00

R79 200,00

R69 440,00

R63 000,00

R150 000,00

R67 200,00

R67 200,00

R100 000,00

R14 000,00

R259 171,24

R198 348,00

TOTALS: R2 830 99938,77 R11 323 755,08

MEDO IN NUMBERSMEDO NEWS

Advertising Value Equivalent (AVE) for MEDO Programmes in 2014Publication Date Content Advertising cost PR value to client

64

In the old Company Law of South Africa, we had a company type called Closed Corporation (CC). This type of corporation only allowed individuals to own a CC business. A CC could own other (pty) ltd type companies, but a CC itself had to be owned by an individual. This individual became a member of the CC and was by definition also a director of the company, with responsibilities like a directing a limited register company. Another rule was also that all members had an equal share, so if the company had 3 members, each would own 33,3% of the CC.

Back then it was easy to establish the percentage of black vs. non-black ownership, or female vs male ownership, which is important for corporates that want to use said company according to the BBBEE act. The ownership was registered at CIPRO (now CIPC), and the CC documents was the law when it came to assist with enterprise development.

The law has changed, and its not possible to register a CC anymore, one has to register a proper (pty) ltd if one wants to get enterprise development assistance. But CIPC don’t care who owns the company, they only care about who is directing the company, the directors as per the CoR documents. They are responsible for the running of the company, and that is what CIPC is tasked to control. But it is the ownership of the company that determines the points a corporate gets, when either using the company as a supplier or assisting with enterprise- and supplier development. However, the ownership is not registered with CIPC, that is up to each company to keep a shareholder register and issue shareholder certificates to each owner. Many small companies do not have such documents in place because nobody actually asks to see them.

How do we then determine whether a company

is qualified to receive enterprise- and supplier development certification? The BBBEE certificates state the percentage black ownership and female- and black female ownership, so we ask the small companies to get a BBBEE certificate. Any registered accountant or auditor can issue a BBBEE certificates to companies that have a turnover of R10m or less, and obviously any SANAS approved accreditation bureau can do it as well. How do they determine the ownership? They ask the directors and that is it, it goes into the BBBEE certificate.

The problem is that it is easy to “forget” some ownership in order to get a better looking BBBEE certificate to achieve the benefits of a Level 1 BBBEE certificate.

In a world were ownership doesn’t matter it would be all right to have the governance of shareholder register- and certificates being a private “contract” between the owners, but when it becomes a competition factor, then it is important that this register is under the same governance as it was the case with the CC.

The CIPC should maintain a shareholder register, which each company can participate in on a volunteer basis. If they don’t participate, then it must be assumed that receive no benefits on their BBBEE certificate. With such a register, it is possible to always check a company’s owner status, and in case of complicated owner structures, with companies owing part of other companies, one can traverse in the register and get a final ownership calculation issues with regards to black/non-black/female/male ownership.

While such a register is being constructed, it might be a good idea also to have a register of issued BBBEE certificates in general, to avoid the growing fraud on these certificates.

BBEEECertification

A FINAL WORD EDITORIAL

EXPERT OPINION

On companyOwnershipBy Bjarke Gotfredsen

“How do we then determine whether a company is qualified to receive enterprise- and supplier development certification?”

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