Tag: Global Report

SA’s leading entrepreneurial competition now open for entries

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We are excited to announce the launch of the 2016 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS!

Now in its 28th year, this renowned competition pays homage to courageous South African entrepreneurs who dedicate themselves to their enterprises / businesses driving growth, creating much needed jobs and contributing towards economic development in the country.

The contribution of local entrepreneurs to the South African economy is widely underestimated: small and medium enterprises (SMEs) contribute close to 50% of South Africa’s gross domestic product (GDP) and generate more than 60% of new jobs created in the economy.

While the country has recently experienced tough economic conditions that may not necessarily enable SMEs to grow, opportunities do exist for those entrepreneurs who continue to identify gaps in the market and transform these into viable businesses. We need to make a concerted effort to recognise and honour these entrepreneurs who continue to inspire others to venture into the world of business.

Last year’s competition winners are examples of those who have succeeded in their industry and possess true entrepreneurial spirit – persevering no matter how impossible it may seem at times.

The 2015 Entrepreneur of the Year® overall competition winners, Gil Oved and Ran Neu-Ner, co-owners and founders of The Creative Counsel (TCC), were recently awarded the All Africa Business Leaders Award (AABLA), which recognises game changers on the continent. They were also acquired last year by French advertising giant, Publicis, in a deal understood to be the biggest in South African agency history. Most importantly, this year TCC launched an incubator programme for black-owned businesses as a way to inspire and grow the next generation of entrepreneurs.

2015 Innovator of the Year and Medium Business Entrepreneur of the Year® title winners, Nadir Khamissa & Ahmed Shaazim Khamissa – owners and founders of Hello Group – were also recognised by the EY Southern Africa World Entrepreneur awards platform due to their remarkable tenacity and determination in building a leading business in the local fintech space.

Why do we run this competition? Let’s look at the statistics…

The average level of employment generated per entrepreneur is very low, with only 4.5% of South African entrepreneurs offering employment to 20 or more employees. However, the positive impact that entrepreneurs can have on job creation is huge (as illustrated above), and in order to activate this potential, SMEs need more support and acknowledgement.

This is supported by the latest Global Entrepreneurship Monitor (GEM) 2015 / 2016 Global Report which states that while, on average, 42% of working-age adults in the monitored economies see good entrepreneurial opportunities in their markets, as many as one-third of potential entrepreneurs are constrained from starting a business due to the fear of failure.

This reveals that South Africa needs to pro-actively address this fear of failure by creating an entrepreneurial ecosystem that celebrates entrepreneurs’ hard work and achievements. An environment where entrepreneurship is promoted as an aspirational career path and viable employment option, rather than a back-up plan to unemployment.

With this competition, we want to celebrate and promote excellence in entrepreneurship. When SMEs are established and grow, new employment opportunities are created, staff is trained and skills are developed, company profits increase and ultimately the economy flourishes as a result.

Why should entrepreneurs enter?

The Entrepreneur of the Year® competition, sponsored by Sanlam and BUSINESS/PARTNERS, is a platform to reward and acknowledge entrepreneurs’ hard work. Prizes valued at R 2 million can be won, which includes cash prizes of R425 000. Competition winners will also receive valuable mentorship support, networking opportunities and national media exposure.

What are the categories?

  • Emerging Entrepreneur
  • Small Business Entrepreneur
  • Medium Business Entrepreneur
  • Job Creator of the Year
  • Innovator of the Year

There are also two additional Entrepreneur of the Year® award categories that can be awarded at the discretion of the judging panel, namely:

  • Lifetime Achiever
  • Judges Prize

Please see more on each of the categories’ requirements here.

What are the judges looking for?

The competition will continue its search for entrepreneurial talent in all sectors of the economy. The judges are looking for entrepreneurs that have succeeded against the odds, either by carving out a niche market for the product or service offering, or by succeeding in a very competitive environment. Perseverance and endurance, innovation and agility are some of the qualities we look for in the entrepreneur.

There are also a number of quantitative competition measures, such as turnover growth, profitability, owners’ equity growth, positive cash flows and job creation that play a part in the competition’s judging process.

How can you enter?

Entrepreneurs interested in entering the competition can download entry forms online at http://www.eoy.co.za/entry-form/ as well as interact with fellow entrepreneurs and entrants on the competition’s social media platforms www.twitter.com/@EOY_SA and www.facebook.com/EOY.SA.

The closing date for the competition is National Youth Day, 16 June 2016.

SA’s leading entrepreneurial competition now open for entries

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The contribution of local entrepreneurs to the South African economy is generally underestimated. Small and medium enterprises (SMEs) contribute close to 50% of South Africa’s gross domestic product (GDP) and generate more than 60% of new jobs created in the economy. This is according to Ben Bierman, chief financial officer at Business Partners Limited (BUSINESS/PARTNERS), who was speaking at the launch of the 2016 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, in Johannesburg today.

Now in its 28th year, this renowned competition pays homage to courageous South African entrepreneurs who dedicate themselves to their enterprises / businesses driving growth, creating much needed jobs and contributing towards economic development in the country.

The latest Global Entrepreneurship Monitor (GEM) 2015 / 2016 Global Report states that while on average, 42% of working-age adults in the monitored economies see good entrepreneurial opportunities in their markets, as many as one-third of potential entrepreneurs are constrained from starting a business due to the fear of failure.

Speaking at the event, Bierman says that South Africa needs to pro-actively address this fear of failure by creating an entrepreneurial ecosystem that provides support and business finance and celebrates entrepreneurs’ hard work and achievements. “When SMEs are established and grow, new employment opportunities are created, staff is trained and skills are developed, company profits increase and ultimately the economy flourishes as a result.”

Bierman says that while South Africa has recently experienced tough economic conditions that may not necessarily enable SMEs to grow, opportunities do exist for those entrepreneurs who continue to identify gaps in the market and transform these into viable businesses. “We need to make a concerted effort to recognise and honour these entrepreneurs who continue to inspire others to venture into the world of business.”

He points to last year’s competition winners as examples of those succeeding in their industry and possessing true entrepreneurial spirit – persevering no matter how impossible it may seem at times.

“The 2015 Entrepreneur of the Year® overall competition winners, Gil Oved and Ran Neu-Ner, co-owners and founders of The Creative Counsel (TCC), were recently awarded the All Africa Business Leaders Award (AABLA), which recognises game changers on the continent. They were also acquired last year by French advertising giant, Publicis, in a deal understood to be the biggest in South African agency history. Most importantly, this year TCC launched an incubator programme for black-owned businesses as a way to inspire and grow the next generation of entrepreneurs.

“Our 2015 Innovator of the Year® and Medium Business Entrepreneur of the Year® title winners, Nadir Khamissa & Ahmed Shaazim Khamissa – owners and founders of Hello Group – were also recognised by the EY Southern Africa World Entrepreneur awards platform due to their remarkable tenacity and determination in building a leading business in the local fintech space.”

The Entrepreneur of the Year® competition, sponsored by Sanlam and BUSINESS/PARTNERS, is a platform to reward and acknowledge these entrepreneurs’ hard work. Prizes valued at R 2 million can be won, which includes cash prizes of R425 000. Competition winners will also receive valuable mentorship support, networking opportunities and national media exposure.

Bierman says that in 2016 the competition continues its search for entrepreneurial talent in all sectors of the economy. “The judges are looking for entrepreneurs that have succeeded against the odds, either by carving out a niche market for the product or service offering, or by succeeding in a very competitive environment. Perseverance and endurance, innovation and agility are some of the qualities we look for in the entrepreneur.”

Bierman adds that there are also a number of quantitative competition measures, such as turnover growth, profitability, owners’ equity growth, positive cash flows and job creation that play a part in the competition’s judging process.

Entrepreneurs interested in entering the competition can download entry forms online at www.eoy.co.za as well as interact with fellow entrepreneurs and entrants on the competition’s social media platforms www.twitter.com/@EOY_SA and www.facebook.com/EOY.SA. The closing date for the competition is National Youth Day, 16 June 2016.

Simple budgeting is better for a tough trading environment

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By Kobus Engelbrecht, spokesperson for the 2016 Entrepreneur of the Year® competition sponsored by Sanlam and Business Partners Limited

Just as the South African finance minister needs to ensure that the national budget is realistic and attainable, local entrepreneurs need to ensure they have their annual budgets in optimal order. The effective planning and prioritising of a budget is one of the most important elements of a business, and key to the future of a business’ financial well-being.

In South Africa, over one in four business exits are due to financial difficulties. This is according to the recently released Global Entrepreneurship Monitor (GEM) 2015 / 2016 Global Report which states that, globally, a lack of profits or finance accounts for more than half of business discontinuances.

Good budgeting sense and awareness will play a pivotal role in leading a business through tough economic and trading conditions. In the current marketplace South African entrepreneurs find themselves operating in, money is tighter than usual. Apart from consumers feeling the pinch and cutting back on their spending, financial institutions are also tightening their lending criteria, making it increasingly difficult for entrepreneurs to access additional funding if it is needed.

During challenging trading conditions, greater attention should be given to budget allocation. Although forecasting and developing a budget in a challenging economic climate can be difficult, it is necessary for the survival of a business.

Extra time should be spent on reviewing and narrowing budgets, as without a well-managed budget, a business can easily find itself in trouble. Not only will a clear budget and targets offer direction at management level, but it will also assist staff at an operational level.”

Here are four ways an entrepreneur can stay on top of their finances in 2016:

Stay in touch:

Market information and research are key ingredients to maximise opportunities and minimise losses. Interact regularly with your clients, employees and suppliers and make a concerted effort to stay up to date with new developments that may benefit, or hinder, your business. If you are aware of what your market requirements are ahead of time, you can minimise incidents of loss.

Buckle up:

By doing a quick inventory check, a business owner can quickly refine excessive costs. These costs may include small items, such as coffee or office printing, or something much larger, such as a work process that could perhaps be conducted in a more efficient method. Entrepreneurs should be encouraged to communicate these cost cutting initiatives to their staff and encourage employees to get involved. Often you find that a business’ employees may not be fully aware what the minor daily expenses at the office can quickly add up after a year, or even in a month, in real terms on the business’ turnover.0

Be Realistic:

Cash-flow needs to be closely managed and should not be rigid in theory to make the entrepreneur feel more positive about the financial future of the business. Businesses need to continue to spend money during this downturn to continue operations, but just at a more sensible rate. Provisions however should be made in the cash-flow to account for economic downturns and how the business will prepare for prolonged periods of a downturn while it waits for the next positive business cycle.

Back to basics:

One of the many reasons it is difficult to keep track of money spent is due to the cashless society that businesses operate in. While a good way to avoid unnecessary and overspending is to make use of cash payments, this isn’t always realistic. Instead, entrepreneurs could treat their budget books as cash payments and log all transactions as and when they take place. It may seem like a tedious activity, but it doesn’t need to be a complicated system – a simple excel sheet could work. Not only does this help to closely watch budgets, but an entrepreneur can also be updated with his business’ transactions daily.

Simple budgeting is better for a tough trading environment

Posted on by Webmaster

Just as the South African finance minister needs to ensure that the national budget is realistic and attainable, local entrepreneurs need to ensure they have their annual budgets in optimal order. The effective planning and prioritising of a budget is one of the most important elements of a business, and key to the future of a business’ financial well-being.

This is according to Kobus Engelbrecht, spokesperson for the 2016 Entrepreneur of the Year® competition sponsored by Sanlam and Business Partners Limited, who says that good budgeting sense and awareness will play a pivotal role in leading a business through tough economic and trading conditions.

The recently released Global Entrepreneurship Monitor (GEM) 2015 / 2016 Global Report states that a lack of profits or finance accounts for more than half of business discontinuances. In South Africa, over one in four business exits are due to financial difficulties. “In the current marketplace South African entrepreneurs find themselves operating in, money is tighter than usual. Apart from consumers feeling the pinch and cutting back on their spending, financial institutions are also tightening their lending criteria, making it increasingly difficult for entrepreneurs to access additional funding if it is needed.”

Engelbrecht says that during challenging trading conditions, greater attention should be given to budget allocation. “Although forecasting and developing a budget in a challenging economic climate can be difficult, it is necessary for the survival of a business.

“Extra time should be spent on reviewing and narrowing budgets, as without a well-managed budget, a business can easily find itself in trouble. Not only will a clear budget and targets offer direction at management level, but it will also assist staff at an operational level.”

Engelbrecht offers entrepreneurs the following advice on how to stay on top of their finances in 2016:

Stay in touch:

Market information and research are key ingredients to maximise opportunities and minimise losses. Interact regularly with your clients, employees and suppliers and make a concerted effort to stay up to date with new developments that may benefit, or hinder, your business. If you are aware of what your market requirements are ahead of time, you can minimise incidents of loss.

Buckle up:

By doing a quick inventory check, a business owner can quickly refine excessive costs. These costs may include small items, such as coffee or office printing, or something much larger, such as a work process that could perhaps be conducted in a more efficient method. Entrepreneurs should be encouraged to communicate these cost cutting initiatives to their staff and encourage employees to get involved. Often you find that a business’ employees may not be fully aware what the minor daily expenses at the office can quickly add up after a year, or even in a month, in real terms on the business’ turnover.

Be Realistic:

Cash-flow needs to be closely managed and should not be rigid in theory to make the entrepreneur feel more positive about the financial future of the business. Businesses need to continue to spend money during this downturn to continue operations, but just at a more sensible rate. Provisions however should be made in the cash-flow to account for economic downturns and how the business will prepare for prolonged periods of a downturn while it waits for the next positive business cycle.

Back to basics:

One of the many reasons it is difficult to keep track of money spent is due to the cashless society that businesses operate in. While a good way to avoid unnecessary and overspending is to make use of cash payments, this isn’t always realistic. Instead, entrepreneurs could treat their budget books as cash payments and log all transactions as and when they take place. It may seem like a tedious activity, but it doesn’t need to be a complicated system – a simple excel sheet could work. Not only does this help to closely watch budgets, but an entrepreneur can also be updated with his business’ transactions daily.

SA entrepreneurs need your love this Valentine’s Day – they are creating jobs

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Are we, as a society, showing enough appreciation to our local entrepreneurs, and expressing just how important they are to kick-starting South Africa’s sluggish economy? This is the questioned raised by Gugu Mjadu, spokesperson for the 2016 Entrepreneur of the Year® competition sponsored by Sanlam and Business Partners Limited.

In light of Valentine’s Day later this week, Mjadu says that South Africans should consider channeling some of their love towards family, friends and associates who have taken the inspiring leap into entrepreneurship. “While entrepreneurs should be acknowledged regularly for their efforts to society, they are often the unsung heroes of a country’s economic development and job creation.”

She points to the recently release Global Entrepreneurship Monitor (GEM) 2015 / 2016 Global Report which revealed that from the 60 economies surveyed in the report, on average, 68% of working-aged adults perceive entrepreneurs to hold a high status in their respective societies and 61% believe they receive positive attention in the media.

Mjadu says that given small and medium enterprises (SMEs) are a major contributor to job creation and economic growth, this percentage should be much higher.

“Societal attitudes indicate how entrepreneurship is regarded in an economy, and can, in turn, impact potential entrepreneurs’ ambitions in the future. This month of ‘love’ (February), as commercial as the day may be, offers the ideal opportunity to celebrate with an entrepreneur you may know, and provide the reassurance and acknowledgment that their hard work and contribution is appreciated and isn’t in vain. By doing this, we are ensuring that those around us, especially future generations, see entrepreneurship as an inspiring and celebrated career option.”

In an efficiency-driven economy such as South Africa, two thirds of working-aged adults perceive entrepreneurship as a good career choice. The 2015/2016 GEM Global report also revealed high societal values about entrepreneurs in South Africa as the country ranked 15th out of 60 economies in terms of the status given to entrepreneurs.

While these figures paint a positive picture, Mjadu says that more needs to be done to express and elevate entrepreneurs’ status in society. “Entrepreneurship in South Africa is still largely driven by necessity, rather than opportunity. We need to celebrate entrepreneurs more often in order to encourage entrepreneurship as a viable career option, rather than a fallback plan. This is one of the core reasons the Entrepreneur of the Year® competition sponsored by Sanlam and Business Partners Limited was launched originally as it serves as a platform to showcase entrepreneurs’ efforts and achievements.”

Mjadu however stresses that society at large can, and should, play a much larger – and daily role – in ensuring that entrepreneurs feel supported while pursuing this tough journey.

“Starting a business venture on your own can be difficult and lonely, but the love and support of those close to you make the challenges more bearable, which could be a determining factor between failure and success. So when you next visit your local supplier, friend, or family member who has started a business, give them a hug and thank them for their hard work and contribution to South Africa’s economy,” concludes Mjadu.

Make your appreciation public! This Valentine’s Day – post a photo on Twitter of you hugging an entrepreneur or proving your entrepreneurial love with the hashtag #HUGanEntrepreneur (@EOY_SA)