MEDO Magazine, First Quarter 2015

Supplier Development Edition

The BBBEE EffectFirst Quarter 2015

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Copyright 2015 MEDO

Contents MEDO Magazine : First Quarter 2015

Jenni Lawrence talks BBBEE advantages | P20

Spotlight on our Supplier Development entrepreneurs | P32

Cover Stories

Features

Editorials

Publisher: MEDO

Editor: Carla de Klerk

Photographer: Karl Schoemaker, Work at Play Photography & Design

Contributors: Bjarke Gotfredsen, Judi Sandrock, Sarah Martin, Rienzo Colpo, Chris Blair, Bryden Morton

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

www.medo.co.za

@MEDOnews

MEDOcentre

MEDOcentre

Tel: +27 500 5000

P. O. Box 2331Houghton, 2041South Africa

P10 The changing of the BBBEE codes

P20 The BBBEE Advantage

P28 Skills Development: For the better of all

P18 MEDO Supplier Development Programme

P20 MEDO International Trade Programme feedback

P32 Meet our Supplier Development entrepreneurs

P52 Supplier Development: Knowledge is Power!

P73 MEDO is coming for Middelburg

P80 PR: MEDO AVE report

P6 Bjarke Gotfredsen: Fixing the Economy

P16 Chris Blair: Productivity & Incentive Pay

P26 Judi Sandrock: Economic Development

Fathima Amod explains skills development | P28

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From A new year, new BBBEE codes and new advantages.

the Editor Carla de Klerk

A new year brings along with it new clients, colleagues, goals and challenges. It is our responsibility in this regard to take on these challenges head-on and turn them into solutions that become advantages.

The word “challenge” in this context, however, can take on a range of different meanings. Something that most entities struggle with, is the challenge of change, merely because it presents something we are not accustomed to. In this regard, 2015 will be firmly set with the challenge of the changing of the BBBEE codes taking effect 30 April.

In this edition of MEDO we look into these codes that focus specifically on supplier development by soliciting views and experiences from experts in the field as well as entrepreneurs directly influenced by them (PAGE 20). New codes are only a challenge as long as they are new and strange, so we walk both big businesses and small start-ups through this process in this edition (PAGE 10).

We also added the theme of supplier development to this edition’s mix, looking

into some feel-good stories such as our most recent socio-economic tour with Treppie in Port-Elizabeth November last year (PAGE 54). We also like to boast with our most succesful entrepreneurs (and supliers) Josias Motsoeneng (PAGE 56) and Jeffrey Mulaudzi (PAGE 62).

Talking about a new year and new challenges, MEDO is also facing some exciting changes. We have branched out to running offices and incubators in Maboneng and Braamfontein in Johannesburg, and we are also planning to open one soon in Middelburg (PAGE 73). We are also expanding our Cape Town office to a running e-commerce incubator (PAGE 70).

Lastly, be sure not to miss the MEDO calendar and stay up to date with all upcoming MEDO events (PAGE 80). We have an exciting year planned ahead and we’d love to have entrepreneurs and corporates join us in our path to take the new codes by storm.

Let’s make 2015 the year of great profits and solutions instead of challenges. Happy new year all!

Till next tim

e!

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, technology and tourism. Delivery mechanisms range from a socio-economic development programme with a mobile entrepreneurship centre that tours townships and rural areas, enterprise and supplier development programmes to international trade programmes for small enterprises.

FROM THE EDITOR

EDITORIAL

6

SUPPLIER DEVELOPMENT

EDITORIAL

EXPERT OPINION

Fixingthe South African EconomyIn order for any economy to succeed you need to get everybody participating, either by having a job or by running his or her own outfit. You also need to export more than you import and you need to earn more than you spend. Full stop? No. No full stop here. As with everything in life, hardly everything is absolute and economics and politics are more related to theology than science.

By Bjarke Gotfredsen, MEDO co-founder and CEO

What we need to fix, is the difference between rich and poor in which South Africa owns the unflattering world record of having the highest difference between the two classes.

As mentioned, one way of fixing the economy is that everybody either has a job or runs their own profitable business. Youth unemployment (<24 years old) in South Africa is 52,9%. In MEDO we run programmes trying to convince the youth to generate their own job by building their own business. As a young adult you have a higher risk profile because of the genes, but mainly as you haven’t started a family yet.

In Canada SMEs account for 45% of GDP, much of the economy’s growth. That is 60% of all jobs in the economy, and 75% of net employment growth. In the UK SMEs make up 99.9% of the total number of businesses and SMEs provide 59.1% of all private sector jobs. Jobs come naturally from small business. 82% of all jobs in South Africa are provided by the SMEs. All small business owners are looking forward to the day they can hire extra staff, where big business operators are constantly looking at the next round of retrenchment. We need to generate more small businesses to generate an economy where everyone can participate.A closer look at the problem:One of the ingredients in growing a small business is access to capital. One of the ways of narrowing the width between classes, is stopping the rich making more money on the poor instead of going after the rich.

In South Africa risk-willing capital is being used in micro lending to achieve enormous interest takings and profits by granting excessively expensive loans to people without assets, also called unsecured loans. That means that this risk-willing capital is not available as capital injection in small businesses that could grow and generate jobs.

In the US the maximum allowed interest rate is regulated within each state. In California the maximum interest for private individuals is 10% - no exceptions. That is not the lowest, which in some states is as low as 7%. It is also not the highest, which in some states are unregulated.

California is of special interest - pardon the pun, because it is the place where we look to for venture capital and angel investments. It is where the stories such as Netscape come from back in 1995, where they (<24 years old) did an IPO (Initial Public Offering), and created the notion that you could cash out before you built a sustainable business. Also where Google got $25m in investment in 1999 without knowing how to make money on their technology. Because the investors in California can’t make high interest rate loans using their risk-willing capital, they have to do something else to see their money grow. They have to invest in business against equity. And that means they have to have a real interest in the business, not just a superficial interest, like the banks when they give you a personal secured loan in your business. If you invest in the company against equity, you rise and fall with the business’ success. If you extend a personal secured loan, you get your return independently of the business succeeding or not.

Back to the unsecured loans in South Africa: A number of outlets sell cheap TVs, fridges and other furniture to a higher price,

which low income individuals are willing to purchase because the outlet offers the assortment paid over 3 years rather than the full amount cash. If one were to save the same monthly payment over 1 year, the item can be bought much cheaper in a cash based store, where the price point is a competitive parameter, rather than credit becomes the selling parameter. With microlending, a TV for the poor cost 3 times more than the same TV for the rich!

Let me illustrate with an older, but real world example: A cash type outlet owned by JSE listed Massmart is selling a HiFi system for R6400,00. The exact same system cost R11999,99 at an outlet owned by renowned JSE listed micro lending bank. They state that the interest rate is 14%, but a quick check with Excel (=RATE(36;499;-11999,99)*12) shows that the actual interest rate is 28%. Now this payment is subject to, and I quote: “Monthly instalments, credit prices & interest rates may vary from those advertised. Initiation, service fees and insurance applicable”. With other words you are going to pay more per month than R499. When I tried to verify these numbers, I was told that they are subject to my credit profile. So even insurance is more expensive if I have a more stressed credit profile. Oh, and if you imagine that the system was available for R6400, with same payment terms then your interest would actually be 84%, but if you saved R499 per months for a year, you would have the cash to buy the unit.

So you buy some items that you have to pay off over the next 3 years, which means any mishaps in your employment life leads to panic. No school fees, no prober food all because this installment has to be paid first. You cannot really change your job situation; as you have to make sure you can afford paying off these items. It is not a far cry from debt bonding, where workers cannot leave their employment before they have paid off their debt, i.e. slavery.

“The rich would have to stop making money on

the poor and try to make it on the rich.

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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.

To the point:So if we set a legal limit for interest rate to something like 15% pa for consumer/personal loans AND for business loans with personal surety, we will free up risk-willing capital from micro lenders to equity based investments. The rich would have to stop making money on the poor and try to make it on the rich. It will stimulate business investment and it will assure that investors assist business in making success, since

there is no longer money in it for them unless the invested business is succeeding!

We do already have a limit on interest rate. According to the National Credit Regulator (NCR), the maximum interest rate for loans longer than 6 months is 31% per annum. The current prime rate is 9,25% and rich people will get a car and a house loan for 1,5-2% less than that. If we take the above example with initiation fee, service fees, and insurance you will find the

interest rate for poor people is still about 5 times higher than for rich people.

There are plenty of ‘for’ or ‘against’ arguments covering micro lending. Considering South Africa’s way of doing micro lending, it is clear that we should rather do a cold turkey and implement a cross the board maximum interest rate, and then see a short term fall of spending followed by a much stronger structure to build our economy on.

• We need to set a legal limit for all consumer/personal loans as well for all loans to businesses that have personal surety. If a business loan has been co-signed with personal surety of any kind, the loan has to be viewed as a personal/consumer loan. My suggestion is 2 x times the prime rate, which currently would be 18,5% pa. The calculation of interest should also be regulated to avoid loopholes and confusion.• The max interest rate is including any and all fees (service fees, initiation fees, etc), legal fees, late payment fees, insurance and other non-voluntary cost, etc. If the limit is 15% pa, and a banker lends out to 10%, he can still add penalties until the interest and fee amount do not exceed 15%. If the loan starts out on 15%, then no extra fees of any kind from any entity for said loan could be charged. In order not to add fees to the price of the product or service and then gain it back with interest, the product and service should be obtainable for the cost presented without any extra non-voluntary cost.• Any loan taker, who believes he has been overcharged, can bring it to the small claims court, which can request from the lender a full statement of all payments done between the parties. Such statement has to available within 24 hours. And such statement should also be regulated similar to SARS dictating the layout of the IRP5.

If the lender indeed has been overcharging, the loan will be immediately prescribed. And the lender will loose a point similar to the proposed point system for traffic violations. Once all points have been lost, the lender will loose his license to operate as a lender. The 2 different penalties are to pursue two different traits. The prescription of the loan is to induce loan takers to report any violations, and the point system is to circumvent the lenders in calculating an positive ROI expecting only so many of their violations will be caught.• Any loan takers should be able to pay in any larger amount at any time, without it affecting the agreed interest rate, calculated from the day the extra deposit is made. This includes full settlement of the loan, which can only be charged to the agreed interest to the day of the settlement. No warning of settlement needs to be given. Any request to settle has to be responded to by the lender within 24 hours, who in return has to respond with a calculation of the amount to be paid within 24 hours in order to settle. A NCR hotline email or fax can be CC’ed, to maintain records of evidence.• Any lender who fails to respond according to said deadlines, do not have adequate controls and system in place to operate as a lender, and will therefore have their license revoked.

Recommendations for the ‘fix’:

For full article and references, visit medo.co.za

8

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 nonprofit 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 businessesQuality of Delivery

Businesses 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.

The Micro-Economic Development OrganisationMEDO is a group of businesses under the banner of MEDO Holdings (Pty) Ltd that

delivers economic development projects and programmes.

MEDO Club incubation and shared services

Socio- Economic DevelopmentOrganisation (NPC)

Micro Enterprise DevelopmentOrganisation (Pty) Ltd

MEDO Red EnterpriseDevelopment (Pty) Ltd


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10

New Codes New opportunities


FEATURE

MEDO NEWS

By Carla de Klerk

In late 2013 the Department of Trade and Industry gazetted the amended codes of good practice on BBBEE. The amended version was aimed to address various shortfalls of the codes since their introduction in 2007. The DTI gave companies an 18-month transitional period in order to familiarise themselves with the amended codes, and to start implementing them effectively. Replacing the previous seven-pillared code structure, the amended version places emphasis on the following five pillars; ownership, management control, skills development, enterprise and supplier development, and socio-economic development. This year, on the 30th of April, the codes will finally begin to take effect, regardless of differing financial years. This of course means that companies will soon have to align their old scorecards with the new BBBEE rankings should they not comply with the requirements of the amended codes.

One of the major changes to

the codes is that Ownership, Skills Development and Enterprise and Supplier Development will rise to become priority elements. “It is crucial for businesses to not only understand these codes, but also consider strategies that would facilitate compliance simultaneously with the new codes becoming effective in April. That way, businesses can comply, remain competitive and not run the risk of losing clients or work due to not being compliant,” Nicolene Schoeman-Louw, BBBEE consultant recently explained in an article. Jenni Lawrence, managing director of verification services from Grant Thornton echoes this view that companies should largely be changing their strategies. “You get instances such as family owned businesses where ownership isn’t an element they want to implement. Yes, they won’t receive 100 points on their scorecard, but they can still have a good scorecard. They only have to focus more on the other pillars, invest more in skills development,

socio-economic development and enterprise development,” Jenni explains.Ownership:As stipulated in the amended codes, this is a priority and compulsory element. Apart from a few omissions, this code has not undergone major changes. The greatest of these changes is undoubtedly that 100% black-owned enterprises with a turnover of under R10 million (EME’s) receive an automatic level one status, and that greater than 51% black-owned enterprises with a turnover of under R 50 Million (QSE’s) automatically receive a level two contributor value (if they aren’t 100% black-owned).Management Control:This category represents a merger between management control and employment equity. Management control will present a possible 15 points to companies, attainable with regards to a race/position relationship in which employees are hired in.

The amended BBBEE codes of good practice have many companies on their toes. Some with excitement, some with trepidation. At MEDO, we believe knowledge is power, and that you can only fear what you don’t know. So we have compiled a brief explanation of what exactly the new codes entail, and guess what? It’s as easy as counting to 5...

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New Codes New opportunities

Old scorecard New scorecardOwnership

Management Control

Employment Equity

Skills Development

Preferential Procurement

Enterprise Development

Socio-Economic Development

20

10

15

15

20

15

5

25

15

15 (MC)

20 (+5)

40 (ESD)

15 (ESD)

5

Skills Development:With this category weighing 20 points, with a possible 5 points extra, companies will undoubtedly place extra emphasis on skills development. This category refers to development of staff members, as well as learnerships to unemployed citizens. In the development, 70% of the learner’s time needs to be person-to-person development. Should the company decide to take on the learner after a year on the job, the company receives the extra 5 bonus points. Enterprise and Supplier Development (ESD):This category holds the greatest change in structure and weight in scorecard points to companies. With a possible 40 points, ESD is to become the main focus of all companies looking for a competitive BBBEE score. The supplier development portion of the scorecard encourages companies to assist their suppliers who are not fully developed with support and mentoring to ensure

they become sustainable and viable businesses. This leads to the concept of “Empowered suppliers’. EME’s automatically qualify as Empowered suppliers and QSE’s that are greater than 51% and less than 100% black-owned will have to confirm their status as an Empowered supplier through an affidavit and assessment. All other companies will have to have their Empowered supplier status confirmed with a BBBEE agency. All suppliers must have an Empowered supplier status in order to be counted under procurement. Companies looking to have a competitive scorecard will therefore have to reevaluate suppliers to ensure optimal codes are achieved. However, it should be noted that suppliers should be developed before the company can benefit from this procurement structure. Therefore, the codes should be looked at as a guiding process, allowing for the possibility of improvement to the scorecard. After all, only by developing a struggling supplier will a company fully

enjoy its contributions. Socio-Economic development:This category remains unchanged, and continues to refer to development projects in rural and peri-urban communities.

The amended codes will affect some major changes to the way companies engage with BBBEE. This, however, isn’t a bad thing. In fact, these codes offer companies a basic structure that will allow them to approach BBBEE much more creatively, which will actively empower small businesses and suppliers, ultimately leading to an empowered economy. As Jenni Lawrence from Grant Thornton explains, “A little knowledge, especially about BBBEE is a dangerous thing.” Get informed, and get that scorecard ready for 30 April!

A little knowledge, especially about BBBEE, is a dangerous thing...

“-Jenni Lawrence, Managing Director Grant Thornton Verification Services

Go to page 20 to read about BBBEE advantages.

Go to page 28 to read about Supplier Development.

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GIVING SMALL BUSINESS A BIG ADVANTAGE

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Through Tsogo Sun Book a Guesthouse we are able to share knowledge, expertise and experience with 85 entrepreneurs nationally. This is a structured three-year programme that has been endorsed by government and local tourism authorities. Thus far, this successful programme has created over 250 direct and 2000 indirect jobs.

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Supplier DevelopmentThe programme, which has been developed by MEDO, has been successful with corporate clients looking to develop suppliers for preferential procurement.Beneficiary Identification Engagement with local communities encourages enterprise owners to apply for the programme, and the current suppliers to the corporate are also assessed. Those who are identified as suitable beneficiaries are invited to interview for the programme.Screening of ApplicationsThe MEDO team has a methodology for assessing the applicants and screening high potential entrepreneurs. The entrepreneurs are assessed as individuals to determine whether they have strong self-management and the levels of endurance required to grow a business, and a propensity to honour commitments. Their businesses are assessed too. The MEDO assessment methodology has been tried and tested, and found to produce low dropout rates. The approach is one of inclusion as exclusion is counter to the values of the team. It is anticipated that at least 25 business owners are selected for each Supplier Development Workshop Programme. Entrepreneur AssessmentsPrior to the workshops, each business owner is assessed by a MEDO Mentor, and a development plan will be drawn up for them. On completion of the workshop programme the business owner is assessed once again to determine the extent of knowledge transfer during the programme as well as their progress with their development plan.Supplier Skills & Productivity Development Workshop ProgrammeA two-day a week, six-week programme is delivered in the selected local area (50km radius). The topics included in the practical skills workshops are:-Personal leadership, identification of and leveraging personal

strengths-Planning and scaling the business for local and national trade – offerings, markets, pricing -Wastage identification and reduction-Operational optimization through speed, economies of scale and quality control-Managing people, motivation, attracting and keeping top people, Labour relations (Employer –Employee)-Sales and marketing techniques for local and national markets, -Client and customer relationship management-Managing finance, cash-flow and breakeven, managing debt, applying for finance and the impact of interest over time-Safety and quality management regulations pertaining to the industry to be engaged-Communications and public relations, reputation management-Management control system development and implementation-Technology and an enabler and acceleratorOn completion of the programme the business owners have access to on-going support and services. The corporate client receives feedback on each attendee to inform the procurement process.Benefits of the Programme-Development of the suppliers’ business skills and productivity benefits the corporate’s procurement-Increased supplier sustainability builds the corporate’s sustainability-The development of the programme and the monitoring and evaluation will support delivery of Supplier Development requirements in line with the DTI BBBEE code requirements-Support for the corporate brand and communication of the business’s activities, products and services through the public relations attracted by the programme. Community engagement and reinforcement of the corporate as a good corporate citizen.

The BBBEE codes are changing, MEDO is ready!

With new BBBEE codes taking effect April this year, many companies are expected to face confusion regarding correct do’s and don’ts. No fear! MEDO is ready for the new codes and we have already amassed success with our supplier development programmes!


FEATURE

MEDO NEWS

8

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16

How can we Achieve Higher Wages in South Africa? Productivity and Incentive Pay


EDITORIAL

EXPERT OPINION

The South African economy is encumbered by labour disputes and strikes which are often centred on wage disputes. The first two months of 2014 have proved to be no different, with the platinum sector strike seeing approximately 200 000 workers on strike. The main reason for the strike appears to be remuneration - unions and their members feel the current remuneration levels are too low for the nature of the work they perform.

In an article published on News24 (21 February 2014), economist Johan van Tonder said that increasing the amount paid to workers would have a knock-on effect and stimulate demand in the economy. This however, would take time to reflect. Therefore, in the short term, although companies would increase their wage bill, this would not be met by the same increase in demand. There is also no guarantee that increased pay would be met by a similar increase in productivity. This would drive up the marginal cost of the product and hence the cost of the product to the consumer. This could cause companies to shed jobs - or even close

down - until the market reaches a new equilibrium.

In a press release on 23 February 2014, Economic Freedom Front leader Julius Malema said that should the EFF be voted into power he would increase the salaries of public servants by 50%. He said that this would be funded via higher taxes imposed on the private sector. This approach to increasing pay in the public sector neglects the link between pay and productivity. Increasing the taxes on the private sector could cause an exodus of companies in the South African market who would view the tax burden as excessively high - consequently shedding

more local jobs. This asks the question: If simply raising pay can have many harmful issues attached to it, then how can we increase pay and productivity?

In microeconomic theory, firms will increase production until the point where marginal revenue equals marginal cost (MR = MC). If the marginal costs to the company are increased by 20% (ceteris paribus) without the price of the product (marginal revenue is equal to price in this case) increasing it will result in a lower quantity of goods being produced - as can be illustrated in Figures 1 and 2 (Price on the Y axis and Quantity on the Y axis):

Figure 1 illustrates that a company will produce goods until the marginal cost (MC) = Marginal Revenue (MR) (in Figure 1, this occurs when 7 units are produced). The rationale is that at this point the difference between the average cost (AC) and average revenue (AR = MR since MR is constant) is maximised, resulting in the highest profits. After the marginal cost function is increased by 20%, the new profit maximising level of production is 6 units. The two most important features in Figure 2 are that the profit maximising level of production has decreased and the distance between

the average cost and average revenue (since MR = AR) curves have decreased at the equilibrium point. This means that the effect of the increased marginal costs is a lower production level and a lower average profit (which will result in a lower total profit). If the increase in the cost of doing business is large enough, no level of production will yield a profit.

It should be clear that an increase in costs without an associated increase in productivity can have a disastrous effect on the profitability of a company. The marginal cost of a product is defined as the additional

cost incurred in creating that product. Therefore a doubling of wages will have no effect on the marginal cost if the produced quantity is doubled as well. This suggests that the answer to the question of: “How can we increase pay and improve productivity?” would be the implementation of a short term incentive scheme (STI scheme) which is linked to a clear, quantitative and reliable set of performance. In South Africa, the STI schemes tend to form a larger part of the total remuneration of an employee as their job grades move up in (as illustrated in Table 1):

Figure 1 Figure 2

By Chris Blair and Bryden Morton, 21st Century Pay Solutions Group

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Table 1 shows that at the median, STI as a % of total guaranteed package (TGP) displays an increasing trend as the job level increases. If higher-value, well-managed and independently-evaluated STI schemes could be equitably rolled out at the lower grades in the South African economy, this could result in a win-win situation for labour and business. As a result of increased productivity triggering higher remuneration pay outs (STI scheme), labour would receive higher salaries. On the other hand, the increased productivity would help to nullify the impact of higher salaries on the marginal cost of producing goods and therefore the profit maximisation equilibrium of the

firm would not as heavily affected.The South African labour market is

pushing for higher salaries. Employers are resisting because of the impact this has on their competitive position. STI schemes have the potential to give both parties what they want by linking increases in pay to conditions that target levels of productivity. Such a scheme would only work if all parties involved accept the conditions. Therefore great care should be taken when setting up the performance management policy. If all parties believe the metrics are clearly identified, fair and can be objectively measured, then such a policy could result in a situation where both parties win.

andikoe.deviantart.com 2008 A

B1 6%

B2 6%

B3 7%

BU 7%

C1 9%

C2 10%

C3 10%

CU 11%

Paterson Grade STI as % of TGP

A1 6%

A2 5%

A3 6%

DU 21%

EL 25%

EU 38%

FL 55%

FU 62%

D1 9%

D2 14%

D3 13%

Chris Blair, MEDO Chairman and Chief Executive Officer of 21st Century Pay Solutions Group (Pty) Ltd, has consulted to over 500 organisations - both in

Southern Africa and internationally. Chris holds a BSC Chem. Eng. and MBA in Leadership & Sustainability and is registered as a Chartered Human Resource

(CHR) Practitioner with the South African Board for Personnel Practice (SABPP). He is also accredited as a Master Reward Specialist through the South African Reward Association (SARA). Areas of specialisation include incentive schemes, cost benefit analysis, financial modelling, breakeven

analysis, feasibility studies, shareholder value, performance management systems, salary structures, total cost of employment, share schemes,

organisation design and policy development. He is considered to be one of South Africa’s leading experts in share scheme design for both listed and

unlisted companies. Chris has published numerous articles on remuneration and he has appeared in the press for expert views on the subject.

Feel free to contact Chris at: [email protected]

Table 1

Bryden Morton, is the Data Manager of 21st Century Pay Solutions Group (Pty) Ltd. He holds a Bcom (Hons) in

Economics and has also dipped his feet into completing his Masters. Bryden has worked in the field of Economics since 2008 and has even lectured on the subject at the University of Pretoria. Bryden has been a key analyst at 21st Century Solutions Group for the past 3 years and is continuing to

build on his passion and expertise, the field of Economics.

Feel free to contact Bryden at: [email protected]

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In November 2014, seven start-up entrepreneurs entered the big leagues by completing the MEDO Supplier Development Bootcamp. Sponsored by BT Global Services, the intensive week long bootcamp had the entrepreneurs critically assessing their small businesses and rebuilding them as sustainable suppliers for large business. Oliver Fortuin, BT head of operations in Sub-SAharan Africa gives context to the programme, “at BT we see Transformation as our contribution to the economy and not tick-box compliance. We have partnered with MEDO over the last three years on our International Trade Programme introducing small black owned ICT a businesses to UK markets. We found that these beneficiaries added value as suppliers in our value chain and with this Supplier Development Programme we have expanded the scope of opportunities available.”The five day bootcamp brought together supply chain expertise, business development specialists and sessions on personal leadership. “With increased opportunities to sell to big business comes added responsibilities, “ adds Nolu Tutani, MEDO Programme Manager. “Having all the governance in place is simply the ticket to the game, being black owned does not entitle the business to getting the sale. Running a sustainable and scalable enterprise takes great self discipline”.The week culminated in a presentation event at which the entrepreneurs were introduced to BT executives and MEDO partners. Presantha Naidoo, BT finance manager remarked that her team sees opportunities to engage with the entrepreneurs as suppliers, and in some cases for multiple

year contracts. “Supplier Development is global best practice and not something we do in South Africa in isolation to score points” . The points however will be very welcome in BT’s next financial year with the revised BBBEE scorecard . “Transformation needs to be aligned with the global strategy in the case of Multinationals so that it adds value instead of consuming profits” chips in Judi Sandrock Co-Founder of MEDO. “Enterprise and Supplier Development is leveraged by successful global companies as one of the tools for increasing

business sustainability and optimizing efficiency. The DTI is now catching us doing the right things with the revised codes.”The bootcamp was only the beginning of the journey for the entrepreneurs. For another 10 months they receive mentorship from a supply chain specialist and support from MEDO Club.

MEDO, short for Meta Economic Development Organisation delivers projects from rural entrepreneurial awareness through enterprise and supplier development to international trade programmes. Since 2008 the MEDO team has engaged with over three thousand entrepreneurs across South Africa, and conducted five international trade visits.The MEDO Supplier Development Programme is customised for the sponsor to ensure value addition in the supply chain.

MEDO Club (PAGE 74) comprises a shared service of legal, accounting, marketing, HR and procurement support. The team arranged networking events to give the members access to markets and exposure to the knowledge shared by industry and subject matter experts.


FEATURE

MEDO NEWS

MEDO MAKING WAVES

Taking Supplier Development

to Great HeightsSupplier Development is becoming one of the most important focuses in South Africa. Economically and socially speaking, we have a great need for entrepreneurs to address critical skills shortages. MEDO is spearheading intense workshop programmes all over South Africa aiming to empower entrepreneurs by providing the training and skills required to become the best business -men and women they can be. Taking on one business at a time, our entrepreneurs are moving forward to become some of the most sought-after suppliers around.

“Running a sustainable and scalable enterprise

takes great self discipline

“We have partnered with MEDO over the last three years. We found that these beneficiaries added value as suppliers in our value chain and with this Supplier

Development Programme we have expanded the scope of opportunities available”

-Nolu Tutani, MEDO Project Manager

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Supplier Development Bootcamp photo diary:

Images:Top: All the participating entrepreneurs, as well as MEDO project manager Nolu Tutani.Left: Entrepreneur Deenin Padayachee hard at work on his Lean Business Model.Above: During the week all the entrepreneurs worked to complete individual Lean Business models, identifying both strengths and weaknesses in their companies.


FEATURE

EXPERT OPINION

The BBBEE advantageThe changing of the codes:“With the new codes, to be implemented on 30 April 2015, there are definitely more financial expenses and administrative burdens. But I think people are going to get creative with it. It’s a mind-shift in the end, people need to stop seeing the codes as a penalty and start looking at it as an opportunity to improve their business. A good BBBEE scorecard makes businesses more competitive and achieved properly, is a sure way to get a return on their investment. Multinational companies look at a country’s infrastructure before investing, its utilities, infrastructure, policies and labour relations. If we get BBBEE right it’s going to improve the skills level in our country and improve the country’s prospects as a destination for foreign investment. The basics of the matter are - if you lift up the people, the country will go up as well. How can that be a negative thing?”How can BBBEE be positive?“We all live in this country, so we all have to contribute to this country. You can’t put all of the burden on political parties or the government; people need to start seeing BBBEE as social responsibility. If you are developing a country through enterprise and supplier development initiatives, you are empowering people to get off of grants and therefore easing the burden on the tax payer. If you

develop the economy so that there are more people in the tax paying pool, you can put more money into developing other areas, such as infrastructure and education. It’s simple, if you have more people contributing the economy, there is more money to go around. To verify or not to verify…“I predict a lot of companies are going to follow the five stages of grief regarding the new codes. Denial, anger bargaining, depression, acceptance! We are seeing them all. There is going to be a lot of denial and bargaining until people get used to the fact that they live and work in South Africa, it is the reality of the country and is much needed to bring equal opportunity to the country. Our proactive clients have started converting their scorecards to what they will look like under the new codes, and although the amended BBBEE codes require more administration and spend than the previous version, they are looking for ways to overcome these obstacles. The key is to see it as a long-term investment, not a penalty. In most cases, it is not a legal requirement to be BBBEE compliant, rather, it works through peer pressure. It only becomes a requirement if you’re applying for a license or a government incentive, but you need to remember that even though you might not do business with the government, you probably have customers who

do. In the end, BBBEE can make you competitive in your industry, so you need to weigh up your risks carefully. BBBEE is an investment.“BBBEE is an investment in your country, it’s a PR investment, it can give you a competitive edge and it’s a marketing tool. More and more sales managers contact us, pushing for certification for their company. Again, it’s all about your mindset. Use the code to your advantage, whether it be through marketing or social consciousness - don’t fall into a negative trap about it. What I love about MEDO, is that rather than cursing the codes, they rolled up their sleeves, rubbed their hands together and said, ‘Let’s get to work. Let’s make this happen.’ We need more companies that are open-minded and positive about the opportunities the new codes offer rather than the difficult parts. What I’ve seen from what MEDO is putting together, is that the people they are working with are the people that are more likely to succeed. Together we are pushing the message that it’s about making BBBEE work for companies and work for our country.MEDO and Grant Thornton are partners in the verification process of the BBBEE scorecards, with Grant Thornton acting as code experts ensuring efficient spend on development projects.

Grant Thornton’s Managing Director of verification services, Jenni Lawrence sat down with Carla de Klerk to discuss the changing BBBEE codes and the potential advantages it can hold for corporates and the economy.

21

“People are often very negative about BEE, and that’s because they often

fail to see the positive benefits of it. Looking for the good, you see

companies actively trying to make a difference within the communities and for

their own staff. When you look at enterprise development, skills

development and socio-economic development you see something that

makes an actual difference in the country.

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The solution? Develop entrepreneurs!


FEATURE

MEDO NEWS

Delving into the topic as to how small to mid-sized companies can participate in the mining supply chain, MEDO CEO Judi Sandrock called a spade a spade, “We need to build alternative economies around the mining sector. Small towns build themselves around one resource, we need to open resources so that communities have something to fall back upon.” Fellow panel speaker Mmbabatho Matiwane BBBEE manager, PetroSA furthered on this through touching upon BBBEE, “We need to keep the economy of the local community going, so there is nothing to defend about BEE as it is economic development. In most countries they need to empower the minority, South Africa needs to empower the majority, being youth, women and black people.” Regarding BBBEE she further mentioned that though suppliers are technically good, it is at the side of Business Management where they are lacking. Wanda Chunnett, director of Turner & Townsend echoed Mmbabatho and Judi in stating that emergent suppliers are technically competent, but desperately require the implementation of a more formalised business system.”

Justin Pitt, managing director of Safika Resources talked on import and export issues, also highlighted the issue of people development, “We need a rejuvenation in the industry, and the biggest thing keeping us from that is skills development. There is a severe shortage of professionals. To succeed, South Africa needs to anticipate success, and the only way to do that is to invest in people.” His solution to the problem was simple, “We need entrepreneurs, we need to set up an environment focussed on entrepreneurship.” Claire McMaster, group HR manager from the MSA Group furthered that the

greatest flaw regarding this is that people need to realise university degrees aren’t tickets to life, technicians, people who can directly apply their skills need to be developed.

“The incubator support programme came from Minister Rob Davies’ visit to super fast developing countries, which we are implementing in South Africa now. Only when we collaborate and work together to develop South Africa from the ground-up, can we build a sustaining economy around reserves,” Judi ended her speech and concluded the conference.

At the 2014 Local Content Conference hosted by the DTI and Total in Cape Town, international and local big and small businesses came together to discuss local content and local development in the South African mining industry. MEDO CEO, Judi Sandrock headlined the panel discussion that looked at developing small to medium-sized companies in the supply chain.

Images:Left: Owen Tobias, Judi Sandrock, Mmbabatho Matiwane, Wanda Chunett and Paul Eardley-TaylorTop: MEDO CEO Judi Sandrock during her speech.

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Go to page 54 to read about MEDO’s mining incubator in Middelburg opening April 2015.

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SUPPLIER DEVELOPMENT FEATURE

MEDO NEWS

BREAKING NEWS: A NEW TREPPIE IS COMING TO TOWN!

As of March 2015, MEDO will be travelling around South Africa in a brand new Treppie, with a FSR800 ISUZU truck, a total 25% bigger than the original. Sponsored by ISUZU Trucks, Treppie will commence its travels in George and journey throughout the whole of South Africa by stopping at each of ISUZU’s 250 branches nationwide.

Apart from a brand new truck, Treppie is also going to be kitted out with a brand new interior, offering entrepreneurs workstations at which they can apply for MEDO programmes or use the internet facilities to look for employment. “Having had over four years experience with the old truck, we have come to learn what works and what the unique requirements are of the truck,” Bjarke Gotfredsen, MEDO CEO explains. “We are powering all technology with Solar Cells and an Inverter, which makes us energy independent meaning we can set up shop anywhere regardless of facilities or infrastructure. We are also using state of the art technology to ensure the fastest internet speeds possible,” Bjarke explains the new upgrades. The truck will also boast with a small meeting space where opportunity recognition workshops and basic business skills workshops will be held.

MEDO Treppie manager Azola Qhina describes her

aspirations for the tour, “We are hoping to find a truckful of enterprising entrepreneurs, and the fact that we will be travelling throughout South Africa, we will have the greatest ever opportunity to do so.” Treppie will be in action this year three weeks per month, and will therefore hold nothing back when moving into communities. “I foresee that we will help a lot of entrepreneurs not only better their business skills but effectively empower them to find opportunities around them after our various workshops,” Azola adds.

MEDO CEO Judi Sandrock also explains, “We are delighted to bring the new Isuzu Treppie to communities in what we believe presents a great opportunity for us to assist in the development of emerging enterprises – a vital sector spearheading economic growth in our country. In doing this we have also created a unique opportunity for large organisations to involve themselves with these businesses and in so doing to advance their Enterprise Development and Supplier Development strategies.”

The Treppie team will consist of four permanent members who will take on life on the road with great zeal. “I cannot wait to begin,” Azola explains, “we have an amazing strategy and we are all looking forward to the incredible individuals we are about to meet on this tour.”

Go to page 54 to read more about previous Treppie Tours.

Taking on a tour covering the entirety of South Africa, Treppie, MEDO’s mobile entrepreneurship incubator, is taking on it’s biggest project yet in partnership with ISUZU Trucks. Travelling three weeks each month on a mission to recruit and develop entrepreneurs, Treppie will become the greatest socio-economic developmental programme in the country.

Image: The state-of-the-art FSR800 ISUZU truck that wil be the new Treppie as of March 2015.

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ISUZU Big Pitch:SUPPLIER DEVELOPMENT

FEATURE

MEDO NEWS

Meet the next-big-things of tomorrow

“The presentations of all the participants were very good. You could see that a lot of work and passion has gone into it, and that’s the key of entrepreneurship. You need to sell yourself, and people need to see the personality behind the product,” Craig Uren, ISUZU CEO furthered after the presentations. After each entrepreneur was granted five minutes on the dot to do their presentations, the room was opened up to a networking session where entrepreneurs also exhibited their products and services. “From my perspective we all had to start somewhere, so we need to give these guys a chance. In the end we are all partners, and without them we won’t be able to sustain our business,” Craig explained ISUZU’s involvement in the investing in small businesses.

Khethi Ngwenya, founder of Schoolmedia furthered on his experience of the day, “As a small business it’s a dream for me. I’m not able to speak directly to or get all these

corporates in one room, as it is easily very difficult working on your own. I now look forward to further communicating with these big guys.” Judi Sandrock, MEDO CEO explains that all businesses, even the giants of today started small, “businesses don’t arrive fully hatched and it’s exactly for

this reason that it is important to develop small businesses.”

“Being part of this programme was really a privilege,” Natasha van Niekerk from PCD Assessments furthered, “I have learnt so much not only about my business, but actually how to do it and even more importantly how to speak to people.” The Business Skills Foundations Programme is specifically aimed at entrepreneurs in this regard to improve the

basics of business management.“Our success is their success,” ISUZU Trucks CEO Craig

Uren concluded, “You have to feed off partnerships, alliances, suppliers, and customers, it’s all interlinked, it’s a process and I believe the programmes such as these are working.”

In August 2014, six budding entrepreneurs had five minutes to sell their various businesses to a room full of executives, experts and potential investors. They just finished the MEDO Business Skills Foundations course, sponsored by MEDO and ISUZU Trucks, and before pitches even began, MEDO CEO Judi Sandrock warned, “Be careful of these entrepreneurs, they have been trained to network!”

“We all had to start somewhere, so we need to give these

guys a chance.-ISUZU Trucks CEO, Craig Uren

Image: Craig Uren, CEO ISUZU Trucks

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Meet the “Big Pitch” presenters:

ISUZU Big Pitch:

Images clockwise from the top:

-Linda Ngcobo, Mema Referral Recruitment.

-Kethi Ngwenya, SchoolMedia.

-Innocentia Masimene, Blue Lenz Pictures.

-Yolandi van Niekerk, PCD Assessments.

-Deenin Padayachee, Little Thinker.

-Abe Motsoane, Learning e-Varsity Online.

“Big Pitch” is a MEDO concept where entrepreneurs have five minutes to deliver an elevator-pitch to fellow entrepreneurs and business executives. The aim of the exercise is to empower entrepreneurs to be able to approach corporates in an engaging manner.

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EDITORIAL

EXPERT OPINION

1. UnemploymentThe first change in perspective is the term unemployment itself. To me, unemployment is not simply about people not working; it’s a shortfall of citizens creating work. As we look to sustain and spur economic growth, I believe government and industry should spend more resources to help create companies first and foremost (and I don’t mean more parastatals).

A key element of this is making the process as simple as possible to develop a business, particularly the registration process. The faster individuals can start a business, the greater the potential for jobs to be created at an accelerated pace.

An important part of helping start-ups start out, is establishing a support system for those with ambition, tenacity and skills to boldly start their own enterprise. This includes successful business people to act as mentors, family members providing emotional encouragement and a network of fellow entrepreneurs with whom ideas and setbacks can be discussed. It is within the best interest of all those involved in this support network to have a young business grow in order to create jobs and more effectively contribute to economic growth and community upliftment.

2. Established BusinessesAnother perspective we must take on is the myth that established businesses create the majority of jobs. South Africa’s small and medium enterprises (SMEs) are the true engines of growth. The role of SMEs in driving economic growth is undisputed, but what’s essential is ensuring these businesses remain nimble enough to recognise opportunities and act upon them. Graduates from universities and even matric, must be encouraged and equipped to not simply get a job, but to create their own companies. I’d take a generation of employers over a generation of workers any day.

3. Our NationThe other South African perspective that needs to be corrected relates to how we present ourselves as a nation. Representation of black people and women in senior management positions in the private sector has increased from less than 10% in the 1990s to over 40% percent today. In the end it’s about creating equal opportunities for all and it is incredibly heartening to see a startup grow from struggling business to becoming a reputable supplier or even starting foreign trade with clients overseas. That would not necessarily have happened if the BBBEE codes weren’t in place to act as incentive for development. Looking at it from a business point of view, the BBBEE codes boost our economy. The more entrepreneurs that are out there building sustainable businesses, the more money there is to go around. South Africa finds itself at a strange place and we can only go forward by building from the ground-up.

4. Economic TransformationThe last perspective worthy of examination is the framework in place to encourage economic transformation across South Africa’s business sector. Clem Sunter wrote about establishing an Entrepreneurial Economic Empowerment Programme (EEE); something I wholeheartedly endorse. Under the proposed EEE programme, large companies would be measured on their contribution toward developing small businesses. Think BBBEE, but specifically focused on shared responsibility between large and small businesses.

South Africa’s entrepreneurs can be the lifeblood of our country’s economy, but in order for this to be a reality, several perspectives need to change. As much as I believe in job creation to improve the economy, in practice I’m most interested in transforming business prospects into profitable employers.

If South Africa’s economy is to continue to see healthy growth, we need more people actively involved as employers, and not just employees. Creating employment is one, if not THE most important challenge for South Africa, and if we are going to tackle it effectively, a change in perspective is required on several fronts.

Economic growth = economic entrepreneurshipBy Judi Sandrock, MEDO co-founder and CEO

Judi Sandrock is the joint-CEO and co-founder of MEDO. Judi has a degree from Wits in Applied Chemical Engineering, an MBA from GIBS and holds various cum-laude diplomas in marketing and project management. Judi’s first foray into the Enterprise Development space was as VP at Anglo Zimele where she started the small community fund and opened the first 14 Hubs located around Anglo’s various operations. Judi also started the Branson Centre of Entrepreneurship, spearheaded by Sir Richard Branson before she started MEDO in 2011 with Bjarke Gotfredsen.

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FEATURE

EXPERT OPINION

“Way back in 2001 I set up a nonprofit training agency. We travelled all over Africa and did a lot of training and clinical research. Prior to that I worked for the National Institute of Health and Human Development for their global training team where we did government training, development and research globally. Masoom Training Solutions was then founded in 2011, where I brought all that knowledge and experience with me, which is why we can do what we do.” Masoom Training Solutions is a recruitment and training agency, taking on university graduates to groom and place in the workplace. With the new BBBEE codes placing stern emphasis on skills and training development, holding a potential 25 points of the overall score, agencies such as Masoom are going to become important pillars to lean on for a most corporate companies.

“The reasoning behind the code prioritising skills development is completely sound. Anyone who understands skills, and the problems we are facing in this country will understand why the pillar exists. We have an incredibly high unemployment rate, and we are not meeting critical and scarce skill shortages. The new code will start to address these issues.” In this regard, Fathima is a firm believer that learnerships and internships will have a bottom-up effect in the workplace and the economy. “A lot of graduates can’t get jobs because they don’t have experience. With the new codes they will receive the opportunity to

get first-hand experience in the workplace and even have the possibility to go further with the company. As 70% of all time and spend needs to be on actual one-on-one training and development, this pillar can’t be outsourced, the new codes are focusing on real, accredited training.” Before Fathima takes up potential beneficiaries for learnerships, students first go through an intensive screening process, where they take psychometric, mathematic, english spelling and grammar and interpretation assessments. “Apart from wanting to groom them to succeed, we want to place the right people in the right position. For the new codes to work and really affect change, these students need to add to the productivity of the company,” Fathima explains.

Before anyone is placed in a position, Fathima does a training needs analysis of the company in order to identify exact positions that the company needs filled. “When I go there, I walk the managers through the process. I want to see the right people, in the right position being truly trained so that they can increase productivity. I want the company to be able to say that they want to keep that person on for another year, because he or she has become a valuable asset over the learnership period. I want companies to use the code in this way to their advantage, as an investment in their own productivity.” For this to be successful Fathima explains that the effort needs to come from both sides, from the student as well as the corporate. Where students

may have an entitled attitude, the corporate may rush the learnership as just another tick on their BBBEE scorecard. This is also the reason that Fathima identifies positions in the company where a learnership candidate will be useful as well as screen and train candidates before sending them to the workplace. “The focus needs to be on the productivity of the learner in the learnership, not the number of learners in the workplace for learnerships to be successful. Learners must contribute to the business, being fully engaged in the business, caring for it as though they are shareholders. To do that both parties must work together, and that is where I come in.”

“We all know how important skills development is, but what we truly need in South Africa is meaningful and substantial skills development. That is embedded in the new code, however, often in the implementation of it, that spirit is lost. People should engage with the experts, to try and incorporate that into meaningful and substantial training, to truly develop something significant to the country. The goal with learnerships is to say that you will from now on be employable forever more, and in South Africa that is a big statement to make.”Fathima and Masoom Training Solutions work as partners with MEDO, ensuring efficient and productive skills development aligned with the BBBEE codes. Working together to build a better economy, for all.

Trained pharmacist, Fathima Amod has been involved in training and skills development her entire 20-year career. An expert of the field, Fathima works with Masoom Training Solutions to recruit, groom and train graduates to be taken up in corporates on a learnership basis. With the new BBBEE codes placing emphasis on skills development, Fathima is becoming integral to the BBBEE certifcation process. Carla de Klerk caught up with her to find out more about the skills development process and how it can be used to a business’s advantage.

Training & teaching for the better

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FEATURE

MEDO NEWS

Innovation in DiversityMEDO accepts entrepreneurs from all walks of life and all business sectors over South Africa. Look for example at our two star entrepreneurs Jeffrey Mulaudzi and Josias Motsoeneng who respectively work in the tourism industry in Alexandra and the electromechanical repair and maintenance service in Middelburg. Diversity is a key component to our entrepreneurs’ success and something we incorporate into all our programmes.

Go to page 18 to learn more about our Supplier Development Programme.

Fresh from the 2014 BT and ISUZU Supplier and Development Programme (SDP), entrepreneur Pascal Nderitu commented, “I loved that we were all different businesses in different fields, we all worked together to build each other’s businesses without throwing any punches.” Pascale is the founder of PolAmco, an agency that designs sustainable energy alternatives. Mlungiseleli Tyatyaza fellow graduate of the Supplier Development Programme and quantity surveyor responded to Pascal that the diversity of the entrepreneurs helped him think outside the box, “usually I only come into contact with entrepreneurs in my field, now I see a whole new range of processes and strategies.”

“Only through diversity can innovation take place,” Judi Sandrock MEDO CEO furthered, “people from different cultures and backgrounds think differently and that’s when you’ll find ideas you never would have thought of.” Deenin Padayachee, also SDP graduate and creator of Little Thinker, a development system for kids, brings Judi’s view into application, “In order to be innovative, you need to see something differently. By having a diverse workforce, you are able to bring different viewpoints, gender, age and even religion together. This allows you to come up with better ideas and solutions that others in the market may not be able to see.”

For the SDP programme, we hosted a social media marketing company, a cleaning service agency, an online university, a sustainable energy designer, a quantity surveyor and an early-development programme creator. During the workshop these entrepreneurs were often found working together in finding solutions to their identified problems and as they created a Lean Business Model over the course of a week. There was a constant exchanging of opinions, views and suggestions. “When you are developing any business, you need to diversify and not focus on your own product or service. That way you get to solve multiple problems experienced by clients and customers,” Tabisa Kiyane from Zeelema Domestic Solutions explained.

“We all struggle with the same problems,” entrepreneur Abraham Motsoane fro Learning E-Varsity Online furthered, “at the programme we aren’t confined to stereotypical influences of our particular field and that’s actually quite liberating.” Abe has been on three different MEDO programmes over the past year and he’s determined to continue this trend in the future, “Innovation is a key ingredient in being successful these days. You’re only competitive as long as you’re innovative and at MEDO we are constantly looking for solutions towards that goal.”

Are you an entrepreneur?

Do you want to start a business?

Do you want to grow your business?

Do you want to import and export?

MEDO IS CALLING ALL ENTREPRENEURS:

Building the economy one job at a timeCall us: 010 500 5555 Visit us: medo.co.za

- Turn your idea into a business- Develop business management skills- Become an effective leader- Build a strong & effective team- Develop a strong customer base- Build strong networks & profitable relationships

What does MEDO offer?

33

Michelle Buthelezi grew up in the township of Ennerdale in the far South of Johannesburg. “The area was filled with young people with most being unemployed and serious drug abusers. I recall our house being broken into over five times when we moved there.” Even though Michelle’s family couldn’t afford sending her to university, she was dead-set on pushing herself to the top. “I took a chance by applying for a job that needed three years of experience, it was a large company, well-known for selling event tickets and seemed like the dream place to work for.” Michelle eventually convinced the manager to hire her over the phone, and just like that she started up the corporate ladder.

“I absolutely hated having a boss, and life gave me one of the worst bosses,” Michelle recalls, “but it was ultimately for a good reason, I remember constantly thinking ‘if I had a company, I would do this differently’ and so I unconsciously wrote notes in my mind on how I would run my business.” Michelle started behaving like a manager in this regard, becoming an expert on each sector of the company, whether it was working on the switchboard, rewriting the training manuals and learning the company systems. “Agents from the company would come straight to me if they needed assistance with client queries. I almost felt as though I was running the office. I learnt from my manager what not to do in a leadership position, and I learnt from the people what they really need from the company.” Three years after starting, Michelle cut

the cords and started her own social media business. Although social media and marketing was where Michelle succeeded, she lacked on the IT side, and that is were Bongani came into the picture.

Bongani Khumalo grew up in Tembisa raised by a single parent. “Being raised by my mother made me the man I am today, I was taught from the start to be independent and always make a plan when the going gets tough,” Bongani explains. After high school Bongani went to study IT and worked a couple jobs as a technician. “I figured if I open my own company I’d make more and the idea of being my own boss appealed to me,” and soon after going solo Bongani was able to sustain himself. “Being an entrepreneur is survival of the fittest. You constantly need to innovate and be flexible to adapt to any changes in the environment.” After designing a website for Michelle, the pair decided to team up and so a big ‘change of environment’ came to Bongani. “I needed something extra, a spark, some ‘oomph’, and Michelle just brought all that and more to the table.”

Michelle and Bongani, the ‘Freaks’

from Techno Freaks offer a range of services to reach targeted audiences, sharing valuable information focused on retaining costomers whilst delivering a combination of IT solutions and online marketing. “We create online experiences and communities for brands to have people who believe in their product to become proud ambassadors of their brand,” Michelle explains. Although the BT and ISUZU workshops were the pair’s first MEDO experience together, Bongani has previously taken part in MEDO programmes and it was thus that he was sure Techno Freaks would benefit. “Previously I learnt a lot about governance and managing a business holistically, and I see great potential for MEDO to channel us in the right direction towards our growth,” Bongani explains. “The programme made me answerable to the uncomfortable and hard questions of my business. It taught me to section and order my business and to keep a steady head,” Michelle chips in.

The Freaks don’t only have a passion for their craft, they also have experience that perfectly balance with each other’s strengths and weaknesses ready to set the online marketing world alight. “Being an entrepreneur means sharing the untapped, rich, valuable and potent resources that are locked away within me. It means making a difference in the world on my own terms with no-one telling me what my limits are,” Michelle adds. No, there’s no telling what the limits are for this potent company…Follow the Freaks: www.tec41.co.zaTwitter: @TechnoFreaks_SA

Masters Of marketingMichelle Buthelezi and Bongani Khumalo were both involved in their own separate ventures until they met each other. The rest was history and their joint venture, Techno Freaks sprang to life. Focusing on social media and online marketing, the pair brings something else to the table as they not only specialise in online marketing, but also in IT solutions.

“The programme made me answerable to the uncomfortable

and hard questions of my business. It taught me to section and order my business and to

keep a steady head


FEATURE

SDP ENTREPRENEURS

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Tel: +27 (11) 467 9233/8998Fax: 0866 105 [email protected] Box 2835, Northriding, 2162

Public Relations

Exhibition and Event PR

Media Planning

Promotions

Promotional Items

“Lebo M”


FEATURE

MEDO NEWS

MEDO MAKING WAVES

talks export and international relationsLebohang ‘Lebo M’ Morake, also known as ‘the spirit of the Lion King’, having composed and put together the hit musical, The Lion King is an inspiration to all entrepreneurs wanting to get their names out to the world. On the day of departure, Lebo M visited our International Trade Programme entrepreneurs as they were on their way to take on the UK.

Deliverance:“The first thing you need to know when you start a business, especially one that reaches to overseas audiences is that the concept of ‘African time’ needs to fly out of the window. If you are five seconds late, and I’m not talking minutes but seconds, you lose precious business. Another thing, when you do receive business, you need to deliver what you have promised, and you need to deliver quality work.”

Quality:“With importing and exporting, you are entering a highly competitive global space, if you’re not going to deliver work on a quality standard, someone else will jump at the opportunity. Quality is a sense of pride in your work, and without it, you won’t take you’re business anywhere. Once people have lost faith in you or you’re business because of sloppy work, they are never going to hire you again. The last thing in the world that you want is a bad track record, because people don’t forget.”

Proven track record:“People hire you when they know you can deliver, no one wants to pay big money to a chancer. The only way you’ll ever get a good track record is by delivering quality product, respecting people’s time and playing by their rules, easy as that. The only reason I was hired for The Lion King, was my track record, people knew they could trust me, and I would recommend all of you become obsessive about that as well.

Success is a perception. In the end it’s all about not abusing opportunities,” Lebo M started his talk in a room full of entrepreneurs hanging on his lips. I work on three principles: deliverance, quality and a ensuring a good track record. Even today I make sure that I don’t slip on any of these.”

Giving some final advice to the entrepreneurs taking on the UK he encouraged them not to be wasteful, “you are there for a purpose, for business and not definitely not to party”. He furthered that with trips like these, focus is key, “There’s always competition. Discipline yourselves to become better each day.”

Ending the talk he gave some final encouragement for entrepreneurs who won’t come back with any business, “I worry about people that don’t know what’s it like to be rejected. Rejection makes you work hard and appreciate your success so much more. Now is a very important time in your growth, embrace every aspect of it.”

Image (from left):Unathi Tunzelana from Flavalite Innovations, Lebo M, Sibongiseni Tunzelana from Flavalite Innovations, Sapho Maqwazima from Umoyair Communications.

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Thinking Bigby starting small

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Thinking Bigby starting small


FEATURE

SDP ENTREPRENEURS

After working as an accountant and audit manager throughout South Africa and England for 10 years, Deenin Padayachee decided it was time to take a break from the corporate world to become a stay-at-home dad for his two young kids. After researching various development programmes for his children without any luck finding a suitable product, Deenin decided to step back into the corporate world. “I saw an opportunity in the market and was willing to take a risk by starting a business. Being a stay-at-home dad, I also needed to find a way to contribute to the family financially. Being an entrepreneur lets me do this as well as allows me precious family time as I am able to plan my working day around my kids.”

Little Thinker offers kids between the ages of 0 to three a variety of simple and affordable development programmes and activity sets aimed to strengthen and encourage core development milestones. “The early years between 0 and 3 have been identified as crucial to a child’s development and if we can assist them at this early age, imagine the possibilities to South Africa if all kids could grow up to be well-developed functioning adults in society.” Deenin is absolutely burning with passion regarding early-age development, and is doing everything in his power to ensure Little Thinker’s success. The Supplier Development Programme is Deenin’s second interaction with MEDO, where earlier in 2014 he completed the Business

Foundations Skills workshop as well. “I am hoping that MEDO will continue to provide the valuable guidance and support it has done for me in the past and help me grow the business to be one of the key market players in early childhood development not only in South Africa but also globally. I would not be where I am today with my business if it were not for the guidance and support that I have received from MEDO.”

Looking to the future 10 years down the line, Deenin still sees himself at the helm of Little Thinker, “hopefully not so involved in the current day to day activities as I am doing now but able to concentrate on strategy, growing the business and adding a CSI element to help uplift and improve impoverished communities” he chips in. His ultimate dream for Little Thinker is to become the leader of early childhood development programmes worldwide, “if your dreams don’t scare you, they’re not big enough” he enthusiastically adds.

“Besides the economic input and job creation opportunities, I am hoping that our products would have a greater impact at both grassroots level as well as suburban families by providing a means to jumpstart learning and development in children. We must be able to influence learning in a way that ensures children are given the best opportunity to set themselves, and society up for success.”

At the BT and ISUZU Supplier Development programme, Deenin was offered the tools and skills to reach his goals. By setting up a Lean Business Model, he was forced to better understand, fine tune and explore Little Thinker in ways he previously never considered. “By preparing a Lean business model canvas, facets of the business that were problematic suddenly jumped right out at me. I really needed to take a step back and relook certain aspects of my business in order to move forward.”

“Entrepreneurship is one of the key factors to create employment in South Africa, Deenin furthers, “It allows people who have lost their jobs in the corporate sector to actively contribute to the growth of South Africa whilst being able to earn a living.” Deenin and Little Thinker are prime examples of the power entrepreneurs hold to South Africa by building the nation by starting with its smallest people.Follow Deenin and Little Thinker: www.littlethinker.co.zaTwitter: @littlethinkersa

Deenin Padayachee, accountant turned stay-at-home-dad turned entrepreneur has two traditionally contrasting passions. He loves kids and business, which he elegantly merged into one through

his venture, Little Thinker. Seeing a gap in the market searching for development programmes for his newborn son, Deenin plunged

into the world of child development and hasn’t looked back since.

“By preparing a Lean business model canvas, facets of the

business that were problematic suddenly jumped right out at me.

I really needed to take a step back and relook certain aspects of my business in order to move

forward.

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FEATURE

MEDO NEWS

The ITP - made possible by MEDO - connects large companies with emerging and smaller enterprises to encourage trade between the UK and South Africa. Judi Sandrock, Co-Founder and Joint CEO of MEDO, explains that the Programme was initiated following the visit of Prime Minster David Cameron to South Africa in 2010 and the announcement that the two countries were aiming to double trade between the two by 2015.

“We realised that while the larger companies collaborate, import and export between the two countries, our entrepreneurs and smaller businesses do not, and that we needed to change this, so in 2012 we introduced the first Programme,” MEDO CEO Judi Sandrock explains.

Judi adds that she is very happy with this particular intake of entrepreneurs, which saw over 100 applications. Of these, 34 businesses were invited for an interview with 13 finally being selected to go on the tour.

“Every year the calibre of applicants improves. We like to believe that this is not only because our entrepreneurs are getting more sophisticated, but because word is out that the Programme is valuable and worthwhile applying for.”

The UK trip comprises of eight-days filled with events organised by MEDO and meetings set up by the entrepreneurs themselves. While exciting, the trip can be quite daunting, so before setting off to the UK, the selected businesses attend a boot camp in Cape Town to help them to prepare. “This preparation includes the setting up of meetings with relevant UK contacts prior to leaving South Africa,” Judi adds.

The UK trip included meetings with three incubators in London as well as a visit to the Accelerator, a large, well known business incubator based in Shoreditch, London. “The group learnt how the Accelerator works, what it offers businesses and how entrepreneurs across

the globe can collaborate. As it is part of London Metropolitan University, the UK team were also able to share insights from its start-up programmes for both its students and alumni,” Noluthando Tutani, Project Director of MEDO explains.

This kind of exposure to international incubators allows the entrepreneurs to interact with entrepreneurs from across the globe and to share experiences and even business ideas.

The group attended the Women 2.0 City Meetup Event, where entrepreneurs discuss their businesses and share advice and tips. The trip also included a visit to Coventry University (the Programme’s third visit) and a visit to Disruptive Media as well as a tour of the BBC in London.

“We also went to South Africa House and met the Trade Commissioner. Our Programme was presented at South Africa House earlier in the year as an example of a programme that achieves transformation using the Broad Based Black Economic Empowerment (BBBEE) Codes successfully. It was personally very rewarding to bring our entrepreneurs back to showcase what smaller SA businesses are doing and what they are capable of,” Nolu adds.

Apart from the deals the entrepreneurs are able to secure for their businesses, the trip often leads to them undergoing a mind shift that allows them to broaden their horizons, equipping the entrepreneurs to take their businesses to the next level. “Too often we as South Africans we do not view ourselves as world class. When the entrepreneurs interact with their UK equivalents, they realise that they are good enough - and in many cases better - and therefore they can operate on a global scale. This insight leads to an increase in their confidence and the realisation that they should stop confining themselves and start reaching out for more opportunities,” Judi explains.

Dale Simons, Owner of MiDO

Technologies adds to this, saying: “Travelling to the UK with MEDO has given me a 3D perspective of my business which is not always possible when you are caught up in the day-to-day running of an organisation.”

He furthers that the trip has confirmed that his business is relevant to the international market. “I believe that MiDO Technologies is aligned to global trends and is therefore well-positioned for future growth.”

Based in Stellenbosch MiDO Technologies is a community-focused IT consultant. “Our business was well-received in the UK and we have formed new relationships and the promise of future strategic support.”

Helen Banda Bain, Owner of Banda Business Services, exclaimed the UK amazed her. Her business is female-owned and managed based in Durban, focusing on quality business services including the design, hosting and managing of websites. She speaks with excitement about the trip. “I took a new business venture to the UK and presented it to Jennifer Garret, one of the UK’s most sought after business coach and speakers. My venture is a social enterprise focusing on young women and we will be combining programmes and adding value to each other’s projects going forward,” she explains.

She also presented her venture to the PA of Diane Abbott, a MP in the House of Commons who supports numerous projects for black women in business, Helen furthers that they will be sharing contacts and collaborating in the future.

AC Electromech Maintenance Services provides predictive and preventative machine health monitoring technology to the mining and agricultural sectors. Co-owner, Josias Motsoeneng enjoyed a particularly successful trip, signing amongst others, a non-disclosure agreement with Tandem Asset Finance.

Josias also met with Energy Loss

Proving their worthin the UK

The fourth International Trade Programme made possible by MEDO and the DTI to the United Kingdom has seen the triumphant return of 13 local entrepreneurs, most with new business and all with new ideas and great contacts.

Compiled by Sarah Martin

39

Surveys and Oil Analysis. Both of these companies’ products will add value to their business. He is also in the process of drafting a service level agreement with Monition Limited following fruitful discussions in the UK.

Josias furthers that the trip was invaluable in assisting his company’s growth. “The fostering of business relationships in the UK will confirm our status on the global business map and it will allow us to pursue technological advancement in our sector locally.”

Umoyair Co-owner Khaya Cokoto is also pleased with the results of the trip. “We had a productive meeting with Orange Mobile which has led to a follow-up meeting with the head of Orange Africa on our return to South Africa.”

Sibongiseni Tunzelana, Co-owner of FlavaLite Innovations found the trip fast paced, but a great opportunity. “A highlight

for us was the visit to Coventry University where we formed partnerships with some of the entrepreneurs based there.”

The business, which pioneers innovative products for IT service delivery has already developed convenient and secure e-ticketing services, aims to return to the UK soon in order to follow up on further appointments. “We have a number of leads that require discussion documents and service level agreements that we are in the process of completing.”

For Innocentia Masimene the owner of Blue Lenz Pictures, a film production company, her business has returned home evolved. “This trip has been such a success and while there is a lot of work that needs to be done now, I am so excited.” She made contact with four businesses, forming relationships with all of them, from providing content, to assisting her with her own programme, to

the donation of film equipment. Following a four hour long meeting

with an Irish-based software development company, James Coetzee, co-owner of Quick Connect Wireless, says they will be using the Irish company’s systems in South Africa, while the Irish company will be assisting them to market their Bluetooth technology in the UK. “We are also doing a due diligence but I am not at liberty to give out any details on the deal quite yet.”

PCD Assessments met with three suppliers who specialise in the development of psychometric tools. Co-owner Yolandi Van Niekerk, says they are in talks with one of the companies regarding the opportunity to introduce a special product to the local market. “The other companies we met with are keen to establish partnerships in order to distribute their products here.” To read more visit: medo.co.za

“Every year the calibre of applicants improves. We like to believe that this is not only because our entrepreneurs are getting more sophisticated, but because word is out that the Programme is valuable and

worthwhile applying for-MEDO CEO Judi Sandrock

40

Cleaningwith cause

Tabisa Kiyane started the domestic agency, Zeelema Domestic Solutions with the mindset of “cleanliness is next to Godliness”. Pulling along this mindset, Zeelema has grown from agency, to recruiting, training and specialised cleaning facility effectively wiping away all competition. Starting with a love of the environment, Zeelema not only contributes to the economy, it does so in an eco-friendly way.

SDP ENTREPRENEURS

FEATURESUPPLIER DEVELOPMENT

Tabisa started from humble beginnings in rural Eastern Cape in the small village of Mceula. As her mother worked as a domestic worker in Johannesburg, Tabisa and her five siblings were taken care of by her grandmother. “My grandmother believed believed in me so much, that every time I feel discouraged I remember how she would have been disappointed if I didn’t see things through.” This support structure spurred Tabisa on throughout her school career to the point that she matriculated top of her class, winning every award in the district. It wasn’t just her academic capabilities that attracted attention, however. Realising in school that her family was a bit more poverty-stricken than the rest of the kids in her class, Tabisa started selling biscuits and Russian sausages to her teachers, which afforded her spare money to add to the household. Although Tabisa was able to fund a few expenses with her small venture in school, she couldn’t scrape enough money together to go to university. That, however, didn’t slow her down in the slightest. “My refusal to accept the situation and the determination to find solutions is what pushed me to be who I am today.” After school Tabisa moved out of the Eastern Cape and started selling various products working on a commission. Seeing a need in the market for well-trained domestic staff, Tabisa had an artillery of selling

experience behind her as she took the plunge with Zeelema Domestic Solutions.

“I believe cleanliness is next to Godliness and that it has a direct impact on our health and optimum productivity in our lives. I also experienced first-hand through my mother the challenges that domestic workers go through.” With no resources Tabisa started Zeelema and in the beginning did all the cleaning herself. Today she boasts of a team of well-trained cleaners, a supervisor and a multitude of trained domestic workers placed in sustainable employment.

“Being an enrepreneur means long working hours and continuous research on your offerings and your market. It means that you are first in the office, and also the last to leave. But there is a great thrill in building a business from scratch and see it become a vehicle to create employment and empower the masses.”

After another MEDO graduate recommended Tabisa join the team, she was selected for our recent BT and ISUZU Supplier Development programme. “I learnt how to develop a

business model which includes profiling my customer, identifying problems, finding solutions, finding a unique value proposition, identifying marketing and distribution channels, developing a cost structure and identifying revenue streams. I then also learnt how to turn my business into a brand, doing financial reporting and the art of networking with potential investors.”

In ten years Tabisa sees Zeelema becoming a recognisable brand of choice for those who care about good quality and the environment. In addition to training and placements, Zeelema only uses eco-friendly cleaning materials that they produce themselves. “I have extensive experience in cleaning and I have grown to appreciate clean surroundings. My love for the environment made it an easy choice for me because cleanliness contributes positively to our environment.”

“I am powerful beyond measure and I am in charge of my destiny,” Tabisa proudly states. She sees Zeelema shaping South Africa in the long-run by creating jobs for those without skills and formal education as well as contributing to the environment by using eco-friendly products. Tabisa is indeed in charge of her own destiny by refusing that life dictates itself onto her, and that makes her an incredibly powerful entrepreneur to watch out for.

“There is a great thrill in building a business from

scratch and see it become a vehicle to create employment

and empower the masses

42

The thing is, is that when things get tough, we look at others (the big businesses), and decide that they have two things that we don’t: Money and Skills. So we figure that the money we’ll get one day (because we’re optimists, we entrepreneurs) and we look to the area that we think we can impact most immediately – skills.

This is great, except that the more we do it, the less it really fundamentally changes things. I’m not saying for one second that skills development, learning the art of doing business is not a good idea. The let-down here is when we rely on skills to fix things, change the environment or create success. This is where we get stuck.

Sure, by adding a new skill-set to your toolbox, you absolutely have a new foundation from which to create success. Things start to happen differently because you are trying something new and are doing something new, something out of your comfort zone. But have you noticed that it happens for a while and then starts to slip? All of the new knowledge and skill that you have brought into the business tends to disappear, replaced with the way you did things previously.

Einstein was definitely onto something when he said: “The significant problems that we have

cannot be solved at the same level of thinking that created them”. What we’re really talking about here is that the more we try to intellectualise and “upskill” the problem, the less you are going to shift it. What we need is a fundamentally different approach that is simple and obvious, but that eludes many of us most of the time.

Before looking at this alternative approach, I’d like to challenge you to look at where you have been making your choices and decisions from so far.

If we look at the psychology of the human being, a significant portion of all of our choices/decisions comes from how we think and how we feel at the given moment – these are the primary informer of our actions. On the surface that sounds right and rational – actions informed by logical thought and emotional reason. If we dig beyond the surface, we may see a different picture.

The reality is that our thoughts and feelings are random experiences

that happen constantly in our minds, our psychology. They fly in and out of our mind, impacting our experience of life, our businesses and each other without any real understanding of where they come from. If you explore the mechanism of the brain then a wonderful and disturbing realisation is available for you: the fact is that we do not control or author our thoughts and feelings.

The easiest explanation to start this process off is to remind you that feelings are generated by chemical infusions and reactions in our brain. This is why psychiatry is such an effective science. If you want to change the way a person feels, just mess with the chemicals in their heads. So this is not the most reliable source of powerful decisions. You don’t get to choose the chemical and hormonal reactions in our heads (unless we take certain substances and this of course is often not legal, nor advisable).

Thinking is a little more complex. Ultimately to understand the source of thinking, we need to understand the brain. The brain has the function of storing and working with information. It does this, using billions of nerve cells that spark electricity off one another in particular routes that cause what we know as thought.

One of the systems in our brain

“It is tough being a small business owner. Besides from the constant challenge to ensure healthy cash flows, manage staff, quality, service/product delivery, customer demands and finding customers, we also have to navigate the treacherous waters of unstable economic and socio-political environments.

BecomingConscious of SuccessBy Rienzo Colpo

Big companies struggle too, but they have teams of experts that have considerable resources to chart their way through. Small business owners on the other hand, don’t get to do this – we need to rely on something different; a whole different set of faculties and if we are really good at it, a bit of magic...

“Your behaviour is currently informed by your relationship

to your thinking, feeling and your subconscious

programmes

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is the subconscious and the job of the subconscious is to act like a massive and very powerful recording device. It records every moment of our lives from the womb to the last moment we live in full HD, 360°, all 5 senses, what we see and don’t see etc. Along with this recording process, it is designed to identify patterns of behaviour under repeated circumstances/experiences and stores these as “programmes” if you will, in order to use again later. This includes our thinking and feeling.

Just think back to learning how to drive – how with repetition, over and over of doing the clutch, accelerator, indicators, checking your mirrors has now allowed you to do it on “autopilot”.

So at future instances, where certain circumstances arise, the subconscious uploads the programme most relevant so that we have a tool to respond to these circumstances, and along with that comes the same thinking and feeling that we previously experienced. Does that sound a little bit like “Goundhog Day”? Do you often have the feeling that “you’ve

been through this all before”? It was William James who said that “the average person rarely achieves but a small portion of his or her potential”. Possibly this is because we rely too heavily on our uploaded subconscious programmes to determine our response or reaction to circumstances, and to easily slip into “best practice” or the way things were done previously, without exploring beyond what we know, what we think and indeed what we feel.

What could we do that expands the use of our brain? The first thing to recognise is that no matter what your skill set is, the thing that is going to fundamentally impact your business is your behaviour. Your behaviour is currently informed by your relationship to your thinking and feeling and, your subconscious programmes. If you allow them to control you “autopilot” style, then your results are pretty much going to be what they’ve always been. No matter what we’ve done in the past, how we choose to act from now on, is going to create the results we experience now and in the future.

The alternative approach I offer you is to connect absolutely clearly with your vision for yourself, and for your business. Ask yourself the following questions: -What is the step that I need to take that serves the vision that I have? -What commitment can I make right now to create action here? -What would it take for me to be incorruptible in this commitment? Then go and do it.This approach is about not only behaviour shift, but also choice to be in action. This always creates more success than any skill you bring into your business. It is never dependent on optimal circumstances – just on you being your word.

Just go and ask Herman Mashaba, Mark Shuttleworth, Richard Branson, Oprah Winfrey, Bill Gates and many others. Become conscious of your thoughts, become conscious of your success.

Visit Beyond Coaching:www.beyondcoaching.co.za


EDITORIAL

EXPERT OPINION

Rienzo Colpo, expert consciousness coach and chief operating officer at the Beyond

Coaching agency was recently involved with MEDO as lecturer at the BT/ISUZU/Rennies

supplier development programme. Rienzo not only opened the entrepreneurs’ eyes as to

becoming conscious of themselves, he urged them to become conscious of decisions. He left the entrepreneurs dumbstruck but ready to take on business challenges with a clear

and open mind.

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After growing up in Kenya, Pascal went on to finish a degree in Computer Systems Design. Thereafter he went on to work for various multinational companies where he was granted the opportunity to work and travel across the globe. “I am who I am today because of having traveled, lived, worked and interacted from people all over the world and I have never looked back,” Pascal chips in excitedly. Life in the corporate world, however, could not contain Pascal, “I became fed up of being answerable to toxic, insecure bosses operating in regimented organizations, each trying to outdo the other.” Leaving his travels behind him, Pascal tried his hand with many IT-related ventures. “In IT I achieved some success, but for some reason, I always felt pigeon-holed and therefore unable to think laterally.” After a friend nudged him into the direction of sustainable energy, PolAmco was born and Pascal never looked back. “I have found my purpose and I enjoy what I’m currently doing. I am the architect of my own destiny, and the money and goodies will follow upon that.”

“Sustainable development is not about government handouts to those in need but creating an environment that in the long term benefits and transforms lifestyles.” Pascal’s dream for PolAmco is to ensure that its brand of portable solar lamps become a pervasive feature as phones amongst the population off the national grid throughout the whole of Africa. “My dream project would be to take an entire town off the national electricity grid and use that experience to develop an iterative model which becomes the

benchmark for sustainable development in the renewable energy sector.” The BT and ISUZU Supplier and Development workshop was Pascal’s first experience with MEDO, and asking him where he sees this relationship going he merely answers, “to infinity”. “On this programme I learnt that building a business requires knowledge, patience, hard work and a thick skin. If you fail, fail fast, get up, dust yourself off and consider changing direction.”

“Entrepreneurs need the know-how to navigate the complex procurement processes of large corporations while at the same time giving these organisations while at the same time giving these organisations the assurance that the SMME can deliver on expectations,” Pascal furthers around his experience of supplier development. He explains that in this regard what he takes away from the programme is diligence. “If your business is to succeed, you have to be diligent and accountable to yourself and your

stakeholders.”Pascal has big

plans for the future of PolAmco. He doesn’t just want to branch out internationally, he wants to transform the way people use energy. In ten years he sees PolAmco as a multi-million dollar company, majority-owned by

staffers, “Our pace will not be dictated by investment bankers, but by our own capabilities.” Pascal’s light is burning bright, and MEDO is only stoking his fire, sustainably of course… Follow Pascal and PolAmco: www.polamco.co.zaTwitter: @polamco_

Going green, Burning bright


FEATURE

SDP ENTREPRENEURS

“Entrepreneurs need the know-how to navigate the complex procurement

processes of large corporations while at the same time giving

these organisations the assurance that the SMME can

deliver on expectations

Pascal Nderitu stumbled into the field of sustainable energy development after a

referral from a friend. The referral quickly turned into something bigger,

something that kept him awake at night until he finally started PolAmco, a company dedicated

to sustainable energy by designing and installing wise energy alternatives. Taking on the continent

one solar lamp at a time, PolAmco is becoming

South Africa’s next giant of sustainable energy.

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Abraham had a startled start to life being raised by his grandmother after the passing of his mother at only two years of age. “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 recalls. From an early age, Abe was identified as a gifted child and was offered a range of bursaries and scholarships to prestigious private schools in Johannesburg. After high school, Abe was again awarded a bursary for his tertiary education and went on 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.” Jumping into an IT career straight after graduation, Abe started climbing the corporate ladder and in ten years found himself working at 12 different companies, “that’s when I realised that there was something, a restlessness in me that I needed to let out.” Abe was always interested in training and development rather than pure, cold IT he even spent a year in his youth volunteering at a development programme, and so he decided to fuse his talents, skills and interests into one.

Abe’s path to Learning E-Varsity Online wasn’t exactly a moment of epiphany, however, after leaving the corporate world Abe proceeded to a career in what he refers to as “a beautiful mumbo jumbo” where he ran a car radio alarm shop from his garage

and sold women’s beauty products. Eventually after working as a manager of a computer school for a distance-based university, Abe got his ‘aha’ moment, “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.” Abe quickly secured rights for content from a UK provider and also made a deal with a computer manufacturer and Learning E-Varsity was able to fly.

“The deal I have with students is regardless of what they study, they can keep their laptop, as long as they finish their course. If they drop out, we take it back,” Abraham explains. 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 if you have the willingness and

desire to learn, you must be granted the opportunity.”

Earlier this year Abe was part of the MEDO International Trade Programme as well as the Business Foundation Skills Programme. When he heard about the BT and ISUZU Supplier Development Programme, Abe leapt for the opportunity again. “MEDO benefits you as a person, as well as your business. We as entrepreneurs are all struggling with the same problems, MEDO offers solutions through access to knowledge.” With guidance from MEDO Abe is looking to turn Learning E-Varsity into a great employment opportunity by building a management team. He sees E-Varsity growing into Africa’s number one online business school. “I’ve set myself a goal to use as much as I can to use what MEDO provides,” Abe adds, “they thoroughly add to my business and they have opened my eyes in terms of its scalability.”

“I see an entrepreneur as someone who has the ability to see problems and provide innovative solutions to those problems. I realised Learning E-Varsity required some tools to upscale, and after this programme I can finally put myself in my customers’ shoes in order to provide those solutions.” Abe has big dreams for E-Varsity and upscaling won’t only be a benefit to his pocket, but one to the whole of South Africa.Follow Abraham and Learning E-Varsity: www.learningevarsity.com

“I see an entrepreneur as someone who has the ability to see problems and provide innovative solutions

to those problems

Upscaling LearningAbraham ‘Abe’ Motsoane has a dream to educate South Africa with the most accessible means possible, namely the Internet. Don’t have access? Learning E-Varsity Online gives all its students laptops and portable Internet access. Don’t have any qualifications? Abraham has a policy to accept students regardless of experience, whether they have matric or not. The only catch is that you only get to keep the laptop if you finish your degree. Watch out, Learning E-Varsity will jumpstart tertiary education with the greatest incentives possible.

SDP ENTREPRENEURS


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MEDO MAKING WAVES

The MEDO Mobile Entrepreneurship Centre, also known as “Treppie” is one 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 Treppie has honed two very successful entrepreneurs, namely Jeffrey Mulaudzi (PAGE 62) from Alexandra and Josias Motsoeneng (PAGE 56) from Middelburg who continued 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 International Trade Programme. Each person is also given basic training in computer skills and an email address.

Should entrepreneurs not be chosen for workshops or programmes, Treppie also hosts a variety of mini-workshops in business skills development.

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 four years of good service underneath its belt, the Treppie programme has completed successful workshop tours in Durban, Cape Town, the Eastern Cape, the Northwest Province, Mpumalanga and Gauteng without showing any signs of slowing down. As of March, MEDO will be driving around in a brand-new state-of-the-art truck.

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

“Treppie”Because we reach out to entrepreneurs regardless of their locations


FEATURE

MEDO NEWS

Go to Page 23 to read about the new Treppie which will be in action as of March 2015.

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FEATURE

MEDO NEWS

Reverend Jesse Jackson visits MEDO!

“Poverty is weapon of mass destruction!” Reverend Jackson exclaimed to the adoring crowd. He furthered that apartheid has long stopped being the enemy, now it is time to focus on poverty and job creation in South Africa. He incited the crowd to say with with him, “I am somebody, respect me!” as a means of empowerment.

After his emotive speech, Mayor Ben Fihla directed Reverend Jackson to Treppie, MEDO’s mobile entrepreneurship incubator. During the week of the Reverend’s visit, Treppie toured the Motherwell township, offering business development workshops, as well as giving entrepreneurs the opportunity to sign up for MEDO programmes. Reverend Jackson entered Treppie, and even tried out the workstations for himself, with MEDO project manager Nolu Tutani showing him how to apply for MEDO programmes.

After his visit, he stood on Treppie’s steps with the mayor whilst waving the South African flag with the crowd singing their support. At the Reverend’s departure, the crowd of about 100-people filed into Treppie one by one to register themselves for programmes and workshops that were to be hosted during the rest of the week.

Poverty truly is a weapon of destruction, and only when the community is empowered by being able to provide for themselves will this enemy be defeated. Treppie is just one of many MEDO projects that aims just this, to empower communities through the gift of skills.

“We are standing here today, on holy ground,” famed activist Reverend Jesse Jackson started his speech to a crowd of dancing supporters and MEDO entrepreneurs at the Nelson Mandela Peace park in Motherwell, Port-Elizabeth. He visited the Eastern Cape as guest speaker at the Govan Mbeki memorial lecture in Port Elizabeth. For the tour he went throughout the area looking at community development projects to see how far South Africa has come in its first 20 years of democracy.

Images:Top: Ececutive Mayor Ben Fihla and Reverend Jesse Jackson outside Treppie.Below: MEDO project manager Nolu Tutani shows the mayor and Jesse Jackson around the inside of Treppie.

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Mlungiseleli started his career as videographer for family events such as graduations, weddings and funerals whilst he was studying to become a quantity surveyor at the Nelson Mandela Metropolitan University. “I would typically have events from Thursday to Sunday, however the business never prospered as most clients were family friends which meant payments would always come late, if they came at all,” Mlungiseleli remembers. He gave up on his filmmaker dreams, finished his degree and opened his quantity surveying practice. After working a few part-time jobs during his studies, he knew that he would never be able to work for any company, and that’s exactly why he immediatly jumped into his own ventures. “When I started working I hated the feeling of having to think up excuses for being late in the mornings. From my first formal employment I told myself that I can’t live like that for the rest of my life.”

Mlungiseleli went into quantity surveying after realising early in his school years that he had a knack for numbers and metrics, “I had to choose a career that dealt with numbers, and I met a guy who drove my dream car that happened to be a quantity surveyor. That’s how I ended up in this field and I have no regrets,” Mlungiseleli laughs. Although Mlungiseleli’s life goal was to work for himself without a boss above him, it is actually because of his ‘boss’ that he ended up with MEDO. “My wife and business partner called me and advised that I must go to MEDO’s website and apply for their programmes. She is the boss, and I had to do what she said so I applied without

asking any questions. I sensed from her excitement that this was going to take the business in the right direction.” His wife definitely nudged Mlungiseleli in the right direction as Kini was chosen to be part of the BT and ISUZU Supplier Development Programme. “I have learnt the art of striving to be unique in any business venture. I also learnt that when approaching clients for opportunities to concentrate on providing solutions to their pains rather than merely providing a service to them.”

Ten years into the future Mlungiseleli sees himself managing a group of highly profitable companies with Kini Quantity Surveyors being one of them having branched out nationally as well as the whole of Africa. “We provide professional

cost consulting advice and cost management services to the construction industry. In Africa, infrastructure and development is still a challenge, however.” Mlungiseleli firmly asserts in this regard that he sees

Kini actively working to create a better South Africa, “I see Kini Quantity Surveyors contributing towards employment, stimulating the country’s economy and contributing towards the GDP.”

“Being an entrepreneur means being a risk taker, being your own boss, and creating opportunities for others. It’s all about saying ‘watch me do it’.” There’s no doubt about it, Mlungiseleli is an entrepreneur at heart, and we are sure we aren’t the only ones to ‘watch him’ do great things in the future.Follow Mlungiseleli and Kini: www.kini.co.zaTwitter: @foxxido

“Being an entrepreneur means being a risk taker, being your own boss, and creating opportunities for

others. It’s all about saying ‘watch me do it’

Quality in Quantity SDP ENTREPRENEURS


Mlungiseleli Tyatyaza from Kini Quantity Surveyors always knew he was born to be an entrepreneur. Describing Kini as “the accountants of the construction industry”, Mlungiseleli has big plans ahead for his first venture.

52

A note on the MEDO Lean Supplier Development Bootcamp

The MEDO Lean Enterprise and Supplier Development programme sponsored by BT and ISUZU and hosted by MEDO, recently happened in November 2014 where we took six budding entrepreneurs for an intensive 5-day workshop aimed at giving them skills to deliver effectively and grow sustainibly.

All the entrepreneurs we come across want to sell to big business because they think that’s where the “Big Bucks” are. This cannot be farther from the truth as the road to bankruptcy is paved with promises of high volume contracts and discounted prices. Take a look at how we prepare both buyers and sellers for the era of Supplier Development.

“

Decisions Decisions Decisions. All the MEDO entrepreneurs know how to pitch their offering to the right person to get a “yes”. When selling to an individual or a small business, it is the same person who decides what they want, who we deliver to, and who pays the bill at the end of the day. And they usually pay straight away. When selling to a large business, one team decides on the specifications, another one goes out on enquiry and often a third committee makes the decision. We need to deliver before we invoice, and may not be paid for 90 days. The decision-making process can take many months too, and a small business can go out of business waiting to enter this Big League.

The question to ask is “apart from you, who else will be involved in the decision?” Entrepreneurs are eternal optimists and too often believe that the person engaging them is the final decision maker, only to learn that they need to take it to their superiors, or that it will only be budgeted for next year. In a large organisation we need to map out the role players, and find our who can say “yes” and who can say “no”.

Money Money Money. Over the

last number of decades, buyers in big business have been encouraged to negotiate the lowest price and to delay payments as long as possible. We encourage our clients to consider not the lowest price, but the best price for both parties - the price at which the client gets great value for money and the supplier can make a profit to feed sustainability. Invoice financing costs a small business up to 3% per month which they need to build into their pricing when selling to companies renowned for delaying payments. In South Africa we have BBBEE incentives to pay early, so we encourage our clients to pay as soon as their systems allow. “Time is Money” has now become “Time scores Points”.

Entrepreneurs need to be acutely aware of all their input costs as well as the cost of the time they may have to wait. Discounting to get the deal is not good for anyone.

Be careful what you wish for. There are very successful businesses that have clearly decided not to sell to large industry, and rather to focus on selling to individuals and small businesses. Pam Golding is an example, an entrepreneur who has built a globally competitive real estate agency still selling to individuals after decades of growth. Deenin Padayachee was on the MEDO Supplier Development Programme in 2014, and he decided that he was going to stick to his target market, parents with young children, resisting the temptation to build an offering for a corporate market he may not appeal to. To the other extreme is Pascal Nderitu who provides solar power equipment, and he needs to move large volumes to big companies and municipalities, and cannot sell one or two units to individuals.

Entrepreneurs need to understand their businesses and markets, where they want to play as well as where they don’t want to play. Focus on the target.

“Entrepreneurs need to understand their

business and markets, where they want to play as well as where they

don’t want to play. Focus on the target.

The big leagues: Why is Supplier Development so different?

By Judi Sandrock, MEDO co-founder and CEO

53

It’s not all about me. When we invite entrepreneurs onto the MEDO Supplier Development Programme, we make sure that they know that we will take them away for a week on a “Bootcamp”. We need to test if the business is strong enough to cope without the entrepreneur for a week, because if it is not, it is probably not strong enough to supply to big business. We come across many entrepreneurs who cannot let go and they believe that nothing can happen without them being around. This means that they can never take a holiday, or heaven forbid, that they or their loved ones cannot get sick and be cared for. If we want to build a business that can provide an income when we are around, we have to let it grow beyond just “me”. One of the reasons we build businesses is to create wealth and value, and if the business is nothing without the founder, its not worth anything to the marketplace.

In the early days of MEDO, I was often asked by our clients if there were others in the team who could deliver, and I understand this as too often a small business gives the impression that it cannot scale to become a large

one. We had to be ready to prove that it was not just the Bjarke and Judi Show.

Entrepreneurs need to develop those in their teams and to introduce then to clients, so that they don’t look like the One Man Band.

Supplier Development is not new. The Japanese have been developing their suppliers for decades, and methodologies like Just in Time supported Japanese manufacturers to become world leaders. Supplier relationships can be as important as customer relationships, as in a big business we want to know that we can rely on our suppliers and that they’ll be around tomorrow, and the next day.

We cannot keep large inventories of input materials and need our suppliers’ deliveries to be synchronised with our demands. Sustainable suppliers need multiple year contracts so that they can hire great people, and finance equipment and technology.

Entrepreneurs need to develop their own suppliers as well as be prepared to be developed.

The MEDO Supplier Development Programme attracts applicants from across South Africa, and the team takes the candidates through a rigorous screening and interview process. In 2015 the Supplier Development Bootcamp will be delivered in Cape Town during which the entrepreneurs will undertake the grueling task of repositioning their businesses to become sustainable suppliers to large industry. The programme focuses on governance and scaling a business to meet demand, and culminates in a Supplier Showcase presentation session to private and public sector supply chain professionals. MEDO provides ongoing support with shared services, legal, accounting and marketing assistance, as well as introductions to markets.

SUPPLIER DEVELOPMENT EDITORIAL

MEDO NEWS

“We need to test if the business is strong

enough to cope without the entrepreneur for a week, because if it is not, it is probably not

strong enough to supply to big business.

Judi Sandrock is the joint-CEO and co-founder of MEDO. Judi has a degree from Wits in Applied Chemical Engineering, an MBA from GIBS and holds various cum-laude diplomas in marketing and project management. Judi’s first foray into the Enterprise Development space was as VP at Anglo Zimele where she started the small community fund and opened the first 14 Hubs located around Anglo’s various operations. Judi also started the Branson Centre of Entrepreneurship, spearheaded by Sir Richard Branson before she started MEDO in 2011 with Bjarke Gotfredsen.

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MEDO NEWS

Treppie takes on Port Elizabeth

MEDO MAKING WAVES

Go to page 23 to read more about Treppie’s plans for 2015.

The MEDO team headed to the windy city of Port Elizabeth, taking ‘Treppie’, our mobile entrepreneurship incubator to hunt for entrepreneurs. Setting up shop in different areas in the Motherwell district for the week, countless entrepreneurs and soon-to-be entrepreneurs walked through their doors eager to develop their skills.

“We received such a warm welcome from the community, and even more, we found so many interesting and inspiring entrepreneurs to join our programmes,” MEDO project coordinator Nolu Tutani described her response from the tour. “What I found particularly amazing, was that most of these guys’ passions are to develop their businesses into the community. With the workshops we hosted, this was a very important theme to them”.

In partnership with ISUZU and the Nelson Mandela Bay Municipality this tour was made possible, and it gave incredible results. “On the first day, there was at least 100 people who came to visit us,” Megan Ridley, MEDO project assistant exclaimed.

Some of the visitors to Treppie include George Fulatella, a writer and poet selling furniture from his garden. Another

is Mama Pearl, a lady who sells designer towels. “We offer knowledge and advice through training, providing the skills to manage their businesses effectively,” Megan explains, “We encourage them to sign up to our database at the mobile incubator so that we can contact them when we offer programmes.”

The great thing about Treppie, however, is that it is not only the community learning from MEDO, it is often a reciprocal exchange. “This trip has definitely opened my eyes,” Megan furthers, “Seeing how hungry the people are for skills and development, being so eager to grow has even encouraged me to step my life up a bit.”

Apart from recruiting potential entrepreneurs for MEDO programmes, Treppie also gives the opportunity for job-seekers to use the facility to search and apply for positions. “We want to anybody who has the want and hunger, to benefit from MEDO,” Nolu Tutani explains.

We are sure we have recruited one of the greatest numbers of quality entrepreneurs in Treppie history, and we are confident that Treppie can only go higher from here. Watch this space, Treppie is going to take the whole of South Africa by storm!

Images:Left: Treppie parked in Port Elizabeth.Top: Megan Ridley helping Mama Pearl to register for MEDO programmes.

Stay up to date: blogs to followGoing online is the future of all businesses. E-commerce is a wave

that is already flooding most service and product delivery businesses via websites, Twitter, Facebook and much more. The Internet provides

large scale opportunities for nearly any industry to go viral towards world-domination. If you’re still in the process of getting yourself accustomed to

the online realm, follow these local blogs to get you online-savvy in no time!

JOB VINE

DELOITTE

IDEATE

OUT THINK

TICKERTALK

Voted best Educational and Business blog at the 2013 blog awards, Job Vine is your key go-to site for career advice, basic skills how-to’s and regularly features local inspirational entrepreneurs.-jobvine.co.za/blog

An international forum set up to discuss issues that affect the global business community. It’s not a requirement to participate, but you’ll search hard for a better place to get informed!-globalblogs.deloitte.com/deloitteperspectives

Ideate, your one-stop solution for business tips, resources, success stories, interviews and business ideas. Find here a library of information on marketing, finance, ICT and sales to mention a few.-ideate.co.za

South Africa’s number one E-commerce blog will give you all the tools you require to succesfully set your business up on the Internet. They will help you step-by-step from beginner to an advanced level.-outthink.co.za

Tickertalk: where traders and investors network. Looking for advice, alternative ways to trade and invest, a forum to compare results and progress, to link up to learn, teach, and generally “raise the bar”? Look no further!-tickertalk.co.za


MEDO NEWS

Go to page 70 to read about MEDO’s E-commerce incubator opening its doors in April.

56

MEDOMAKINGWAVES

Josias Motsoeneng from AC Electromech Services is no stranger to MEDO having been on no less than three programmes and three International Trade visits to the UK. He is also one of the most successful entrepreneurs that MEDO has churned out of its systems. Apart from being a benchmark businessman, he also happens to be one of the nicest guys around. Carla de Klerk had a chat with him about AC Electromech, his past ventures and the general pros of being an entrepreneur.


FEATURE

MEDO NEWS

Of business & relationships

“Being an entrepreneur for me means living in an uncertain world with the objective of long terms benefits,” Josias explains. He is a tall, athletic man with a friendly face and a welcoming disposition. His positivity is contagious and it suddenly isn’t so hard to see why success seems to follow him.

Josias grew up in Orlando East and spent most of his childhood in the dusty streets of Soweto and Johannesburg. “I was never an academic”, he recalls his school years, “I enjoyed sports and culture activities, so I kept myself busy with athletics until I matriculated without ever worrying what career I wanted to pursue.” After matriculating, Josias joined ABSA bank where he worked for four years before setting up his own business. “I learnt a lot about the financial services industry, quality control, negotiating skills, risk assessment and credit management. ABSA was a great platform to understanding the corporate environment, the risk involved in business and the long-term rewards.”

After tapping as much knowledge as he could from ABSA, Josias ventured to Middelburg with a business partner where he started a property investment and agriculture business late in 2007. “Our business did extremely well against our competitors and we became benchmarkers for Middelburg property

investment.” Sadly, the partnership and business dissolved as his business partner passed a few years on. Josias, however, continued his pursuit of success when he acquired a keen interest in AC Electromech Services, which was then a small electrical and maintenance company. He joined Electromech as its marketing director and catapulted the small company to the maintenance giant it is today. “My business is surely my passion. Every morning I look forward to building new relationships and maintaining my loyal customers with quality service.”

“I am an entrepreneur because I enjoy the freedom of being independent generating my own income. It also gives me great humility to see my clients’ businesses thrive because my business.” AC Electromech assists companies in reducing failure in the production plants and maximising profits through predictive and preventative maintenance. “Our technology and equipment can assist companies in the metals, pharmaceutical, wind power, marine, paper, coal, quarry, cement, food and drink industries and much more,” Josias excitedly adds. In ten years Josias sees AC Electromech as a well-recognised player in the field of infrastructure and strategic asset maintenance, with himself being in a secure financial

position to enable him to contribute to the Middelburg community on a large scale. Josias joined MEDO years ago when our mobile entrepreneurship centre, Treppie visited Middelburg, “I was looking for an opportunity to stretch my business network, and MEDO was right there showcasing themselves.” Josias is still actively involved in MEDO events and workshops, “I learnt basic business foundation skills, networking skills and marketing skills to name a few. My relationship with MEDO is still growing, however, and I do believe that I still have a lot to learn and share with the MEDO family.”

If Josias were to give tips to any starting entrepreneurs, he puts the emphasis on relationships. “Relationships are critical in the survival of your business, collaboration will be instrumental with competing industry leaders and marketing continuously even during the quiet season will help your business weather the storm. Execution of your services will be the deciding factor whether you’ll get more referrals or not.” Concluding his speech, he returns again to relationships, emphasising “RELATIONSHIPS, RELATIONSHIPS, RELATIONSHIPS!” A great mind for business and a great person to talk to, or maybe its just his superb networking skills he’s showing off…

YOU JOIN A TEAM.M

cCan

nJH

B91

2499

YOU DON’T BUY A TRUCK,

The purchase of an Isuzu truck is the beginning of a relationship.It’s a long-term commitment from us to ensure that your truck is always on the road and keeping your business moving. Our aftersales service is not just a service, it’s an ethos.

Customer Care and 24 Hour Roadside Assist call 08600 ISUZU (47898).For more information or to locate your nearest Dealer, visit www.isuzutrucks.co.za

YOU JOIN A TEAM.

McC

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JHB

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YOU DON’T BUY A TRUCK,

The purchase of an Isuzu truck is the beginning of a relationship.It’s a long-term commitment from us to ensure that your truck is always on the road and keeping your business moving. Our aftersales service is not just a service, it’s an ethos.

Customer Care and 24 Hour Roadside Assist call 08600 ISUZU (47898).For more information or to locate your nearest Dealer, visit www.isuzutrucks.co.za

UK Trade Councillor Thobile Mazibuko: “The Youth is Our Future”

On a recent International Trade Programme (ITP) trip to the United Kingdom, we gave a handful of budding entrepreneurs the opportunity to network and arrange meetings with potential clients and investors to encourage forein trade. Stopping off in London, we headed to the historical Trafalgar Square where Trade Councillor Thobile Mazibuko hosted the meeting at the stately South Africa House, where she sat around a table with our entrepreneurs to discuss issues of trade, export and development.

“When you enter a border you become ambassadors flying the South African flag,” Trade Councillor Mazibuko started the conversation, “and that’s what you need to remember when trying to engage in business, you need to be sure that you are either export or import ready, and that you can deliver.” She furthered that the most important aspect of any kind of business is to deliver quality service, on time and thus build up a lasting reputation. “And those of you that aren’t returning to South Africa with deals, don’t take it to heart. Learn about you experience, things don’t happen immediately. See how other people do their business, and see how you can implement that in you business. That’s the basics of development.”

After a couple of entrepreneur questions regarding how the department can support them in trying to branch out to the UK, Ms Mazibuko answered, “Our goal is to create jobs. If your business will create jobs whilst promoting South Africa, we want to hear from you about what we can do for you. We will support anything as long as it is beneficial to the South African people.” All the entrepreneurs then introduced themselves as well as their businesses while Ms Mazibuko listened with interest. “I am passionate about development, and from what I can see this is development at its best,” she furthered. After a range of questions and discussions the Trade Councillor urged the entrepreneurs to come into contact with her as soon as possible to engage in further support, “Remember, I’m here to serve you,” she passionately ended the visit.

Images:Top: UK Trade Councillor Thobile Mazibuko, MEDO CEO Judi Sandrock, MEDO project coordinator Nolu Tutani.Middle: MEDO ntrepreneurs attentive to the discussion.Below: Thobile Mazibuko deep in a discussion on trading and exporting.

Go to page 38 to read more about the International Trade Programme


FEATURE

MEDO NEWS

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FEATURE

MEDO NEWS

$$$Budget speech 2015:

What it means to your budget

True to his word in the Medium Term Budget Speech (October 2014) Minister of Finance Nhlanhla Nene focussed the 2015 Budget on reducing costs and the time has come to raise tax revenue. He indicated that the savings that South Africa had accrued during the good economic times - which preceded the global financial crisis - had been used to shield South Africa from increased taxes in recent years. Bad news - the economic growth forecast for South Africa in 2015 has been revised downwards from 2.5% in October 2014 to 2%. This has been as a result of the disruptions in the power supply which have led to load shedding and loss of productivity. The Minister announced that increasing and stabilising the power supply are among the priorities that have been outlined in the Budget (a loan of R23 Billion granted to Eskom). Good news - improving service delivery has also been included in the priorities listed, via improved efficiency rather than employing additional staff.

The additional revenue required in order to finance government’s expenditure and reduce the budget deficit will come from a number of sources, mostly impacting you, the individual consumer. Income tax for all employees earning more than R181 900 per annum will increase by one percentage point. This may seem somewhat regressive in that those who pay 25% would earn feel

the 1 percentage point increase more than those at the 40% for example. However, Minister Nene announced that this increase combined with the inflation adjusted increase in the medical tax credit and primary rebate would result in net tax relief for anyone earning below R450 000.

For those who live in Gauteng, the “user must pay” principle is scheduled to continue as the chief source of funding for the Gauteng Freeway Improvement Project. Government announced that it would assist in the funding of the debt and details as to the amount would be announced this year. E-tolls are not necessarily going away! This in conjunction with increased fuel taxes, depreciation of the rand against the dollar and the expected rebound of the oil price in the coming months means that transport costs are going to go up significantly. The fuel tax will increase by 80.5 cents cumulatively; 50 cents per litre allocated to the Road Accident Fund and 30.5 cents allocated to the fuel levy. The electricity levy will increase from 2.5 cents per kilowatt hour to 5.5 cents per kilowatt hour for the duration of the supply shortages. Minister Nene also stated that Eskom would approach the National Energy Regulator of South Africa (NERSA) to ask for a higher electricity price per unit. “Sin taxes” are to increase as usual with a beer costing 15.5 cents more per bottle, while wine increased by 15 cents

per bottle and spirits by R3.77 per bottle. The increase in the “sin tax” per pack of 20 cigarettes will be 82 cents. When all of the above taxes are added up the, it is clear that consumers will have to tighten their belts in 2015 as a result of these increased cost pressures.

Small business was handed a boost by the more generous tax regime for businesses with a turnover under R1 million. Companies with a turnover under R335 000 will not pay any tax while the maximum rate would be reduced from 6% to 3% in order to assist small business development. Apart from this, the rest of the company’s tax regime (already high by world standards) remains unchanged.

In summary, the main focus of the budget speech was centred on promoting economic growth through incentivising small business. This will be funded by cutting back government expenditure while increasing tax revenue. How the budget speech affects you:

Middle and higher income groups - an additional 1 percentage point in income tax.

All consumers including the lower income groups – increased fuel and transport costs and electricity costs resulting in knock-on price increases.

It looks as if it will be a year in which consumers will have to trim excess spending in order to compensate for increased prices.

By Chris Blair, MEDO Chairman and 21st Century Pay Solutions Group

In summary, the main focus of the budget speech was centred on promoting economic growth through incentivising small business. This will be funded by cutting back government expenditure while increasing tax revenue.

“

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Jeffrey is a young, vibrant man emanating with life and energy. It’s no wonder that at the mere age of 23, Jeff has built up an ever-growing tourism empire in the heart of Johannesburg. “I am a young entrepreneur who wants to make a difference in Africa”, Jeff eagerly starts of his interview. Growing up in Alexandra, Jeffrey was used to seeing tourists drive through the historical township. What always bothered him, however, was that they were always in busses, closed off from the community and the environment.

“I wanted to speak with them, interact with them, maybe practice a bit of my french, but I could never get close enough,” Jeffrey explains. “Touring in a bus is like visiting a zoo. I wanted people to communicate and interact with Alexandra and its people.” In school Jeff had a French hockey coach who taught him a few phrases, and it was also this coach that pushed Jeffrey into business at the tender age of 18. “For the Soccer World Cup he had a few friends who came to visit South Africa, and he asked me to give them a tour of Alexandra by bike, afterwards they paid me some money and I used that to buy two bicycles, and from there my cycling business just kept growing.”

“An entrepreneur is someone who takes initiative to create job

opportunities in communities. It is an instigator for change in society. Entrepreneurs are responsible for satisfying their clients, staff and their community at large. It offers tremendous freedom and exercise of creativity and that’s how I would define myself.” Jeffrey is one of those few individuals who has been able to take not one, but two of his passions, cycling and his hometown and turn it into a successful business, and he isn’t thinking of stopping just there yet. “ I want to start a bicycle sharing system over South Africa, and one day extend over the whole of Africa. Bikes are the idea medium to make everyone, rural or urban mobile and so make a lot of people’s lives much easier.” He sees this goal slowly being fulfilled by branching Alexandra Bicycle Tours out slowly to different parts of Johannesburg, and then spreading to the rest of the country. “I see my business shaping a better South Africa by first and foremost building its economy through creating jobs and hiring local people, his dream of creating a mobile South Africa will flow naturally after that.

South Africa is a tender subject for Jeffrey as it is so obvious that he loves the country, especially Alexandra intensely. “Apart from its economic value, I want people to become aware of Alexandra and through Mulaudzi

Alexandra Tours put the area on the map of a tourist “must-do”, instead of just another township in Johannesburg.” In the three-hour tour Mulaudzi Alexandra Tours offers, Jeff takes visitors to to a local shebeen, various heritage sites, Nelson Mandela’s old house when he lived there, a hostel tour and even finishes the tour off with a local beer tasting.

Jeffrey joined MEDO in 2012 via Treppie, our mobile entrepreneurship incubator. Applying for some programmes eventually led to no less than four programmes, including an international trade visit to London. “Working with MEDO I have learnt incredibly valuable skills such as marketing, presentation, sales and many more which I still incorporate into my business on a daily basis.”

Jeffrey is the type of guy that is always busy with something and seemingly never sits still. Even now, after the interview he is ready to rush off to his next tour happening in just over and hour. Besides putting heart and soul into Mulaudzi Alexandra Tours, Jeff honestly seems to be enjoying every moment of it. And why not? He is young, successful and gets to work on his passion on a daily basis.Visit Mulaudzi Alexandra Tours:www.alexandratours.co.za

MEDOMAKINGWAVES

23-year-old Jeffrey Mulaudzi was born to do business. His venture Mulaudzi Alexandra Tours was started when he was still in high school, after taking a favourite teacher for a tour of his hometown Alexandra in Johannesburg. Now four years later, Jeff has expanded to two tours a day, taking tourists for a three-hour bicycle tour to be etched in their memories for years to come. Carla de Klerk had a chat with the entrepreneurial prodigy.


MEDO NEWS

Cycling to success

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FEATURE

MEDO NEWS

Don’t worry about imitation“

Over many years I have woken in the middle of the night sweating about a competitor who seems to be imitating us and then I remember Dr Bob’s words. The thoughts quickly change from unease to creativity, as I am suddenly inspired to leave our old ideas to our competitors to pick the bones. We will come up with something ground breaking that our clients will be happy to support.

Every market becomes more and more commoditized over time, and we make sure we are always just beyond that soul-destroying ‘event horizon’ of commoditization. There have been times when we realize that one of our great inventions has over a few years become a yawn, and we gladly hand this market to those who are desperately copying what they think we do.

True innovation is about a great idea, implemented. Every day I meet people who think they have a great idea, yet seldom do I meet someone who has implemented a simple idea, well. The value is not in the idea itself, it’s in the faultless execution. We can look at a market offering and think “oh, I can do that easily” until we try. I always thought that Ernie Els had an easy job until I took up golf...the the better the player, the easier it looks.

We’ve never ever been the cheapest, but we’ve always been

the best value. Our value proposition varies from client to client like the cliché ‘beauty is in the eye of the beholder’. This also makes us difficult to imitate as the value is the product of what ‘value’ means to the client and the innovation we reserve only for them....and the relationship between us.

A commodities market is crowded by vendor bashers and discounting wheeler dealers. Value and pricing are perpetually eroded until no one wants to buy and fewer want to sell. If we find ourselves opposite a buyer who is only interested in price and not value, who throws the competitor’s quote down in front of us, we respond “Be our guest! Take their offer”.

I know it’s hard to walk away as small businesses always need the money, but sometimes we have to realised that with people who only think about price, we will be the ones ‘paying the price’ in the long run. This type of client will not provide sustainable business as we are only as good as our last price.

Focus on innovating to stay one step ahead, and talk about value, not price.

Building a business is like becoming that professional golfer. Take the time that it needs, build the credibility and skill, grow from profit not promise, and sustainability will be your reward.

Dr Bob Buckman, a career changing mentor said to me, “don’t worry about protecting you IP because you are worried your competitors will copy you. Keep innovating and they will always be playing catch up!”

By Judi Sandrock, MEDO co-founder and CEO

Judi Sandrock is the co-founder of MEDO, the Meta Economic Development Organisation, and at the writing of this article is programme managing the Transformation Programme for Isuzu Trucks SA. Craig Uren of Isuzu (imaged right) demonstrates “Treppie”, the Isuzu sponsored Mobile Entrepreneurship Incubator, one of MEDO’s innovations. Treppie has been touring South Africa since 2011 and the team has recently acquired the latest in Isuzu Truck technology.

65

MEDO in Middelburg


FEATURE

MEDO NEWS

As of April, MEDO will be opening it’s doors in Middelburg with a mining incubator for entrepreneurs in the surrounds. Being the first of its kind in the area, this incubator is sure to shake the rocks of the mining industry.In April, MEDO will delve into new territory in Middelburg in Mpumalanga to jumpstart entrepreneurs in the mining industry. MEDO will run an incubator over 3 years that will be able to support more than 20 entrepreneurs at a time. Entrepreneurs will be handpicked based on their skills, knowledge and scalability potential.

“Middelburg is in the centre of the country’s mining hub,” Bjarke Gotfredsen, MEDO CEO explains, “that’s why it’s the ideal place to develop entrepreneurs in the industry.” Bjarke also furthers that entrepreneurs are being developed to act as suppliers for mines in the area in the future, which is why the entrepreneurs will take a skills-intensive journey with MEDO in order to become efficient and quality suppliers.

The incubator will provide assistance to the entrepreneurs through mentorship and knowledge sharing workshops forcused on business skills. “The incubator will consist of a walk-in centre front office,

with work-and conference facilities where we wil provide business development training skills, office equipment facilities, free telephony and wifi and office stations to the succesful applicants we take on,” Nolu Tutani, MEDO project coordinator explanis. The incubator will also

focus on mining-specific issues such as procedures and safety guidelines.

Noluthando will be the driving force behind the project through hand-picking the entrepreneurs, managing the incubator and acting as the link between the entrepreneurs and MEDO. “Middelburg is in the heart of mining territory, which is ideal to offer assistance to entrepreneurs in this field”.

After the opening of the Middelburg incubator, MEDO would have successfully opened five incubators nationwide, others being namely in Maboneng, Braamfontein, Cape Town Citybowl and Cape Town Airport Industria.Visit medo.co.za for more information.

“Middelburg is in the heart of mining

territory, which is ideal to offer assistance to

entrepreneurs in this field.

-Nolu Tutani, MEDO project manager

MEDO on the Road: The International Trade Programme taking the UK by Storm


PHOTO DIARY

MEDO NEWS


PHOTO DIARY

MEDO NEWS

A look inside our Supplier Development workshop:

SUPPLIER DEVELOPMENT PHOTO DIARY

MEDO NEWS

Treppie: Taking on PETake a look at the pictures on the road from our mobile entrepreneurship centre

70

MEDOMAKINGWAVES

Veronica Shangali, MEDO veteran and e-commerce guru uses her business, Wavunow to not only bring South African crafters to the world, but also empowers them through technological knowledge. As MEDO is busy opening up its newest incubator, an E-Commerce focused space, Carla de Klerk had a chat to one of our own E-commerce stars about the industry.

Online and on fire

“I am addressing a market access challenge for crafters. E-commerce for underprivileged businesses is unique, as the area is not a favourable one. But it is my passion. I have always wanted to work in development of communities in Africa, and I have derived so much satisfaction being on this journey.” When Veronica steps into a room, people sit up and take notice. She is one of those unique individuals that demand attention and respect. What is incredible about her, however, is that though she carries a wave of confidence with her, she is also one of the friendliest, warmest people around. Maybe that’s the secret to Wavunow’s success, her business attitude that catapults the venture in empowering artists and crafters that don’t necessarily have her strength.

“E-commerce is a way of doing business where goods are exchanged in a cost effective way,” Veronica explains, “Many overheads such as rent and staff are significantly reduced. It breaks time, geographical and location barriers, shrinking the globe literally to the size of your palm.” The problem Veronica identifies in this regard is that not everyone, especially in a digitally deprived country such as South Africa, has the means to use and reap the benefits of the online business medium. For this reason, Wavunow serves a dual business strategy that incorporates a training element to crafters, teaching them how to list products online which includes basic

marketing strategies, as well as providing a platform to actually sell products. “In the online realm, competition is extremely high. Consumers can easily compare costs and value, and they can also get bored very quickly if the site becomes stagnant. In this sense E-commerce is, and should be ever-changing.” To keep Wavunow a number one go-to site Veronica thus enforces the use of ratings, a customer care centre as well as incorporating social media to enforce top-level consumer engagement.

“Almost anything you do as a business today may end up requiring an E-commerce platform. We are the future as we are a borderless business, and that’s why we need more focus and investment on the medium,” Veronica explains. She furthers that currently knowledge is one of the biggest challenges starting-out entrepreneurs struggle with in the industry. “It may appear to many that you need to be IT savvy, but this is not true. You only need to be ready to do business and apply the best infrastructure to go with the fast pace of the industry. I think that’s why a lot of people are afraid of it.” As E-commerce requires less manpower and resources, the field is ideal for starting entrepreneurs looking to start a business without any financial backing, the how-to however, remains a struggle for many who look into this field. “Things change constantly, E-commerce has an ever-changing

pace. Start your research now and don’t be left behind,” Veronica urges.

“I think it is fantastic that MEDO is opening up an E-commerce incubator! It will help to speed up the process to reach out to potential E-commerce business owners.” The incubator will open its doors later this year, and since it is located conveniently next to the Cape Town International Airport, goods will be shipped in and out in no time. “This incubator is exactly what South Africa needs, it will assist businesses to start straight with online shopping, instead of doing it the old fashioned way by starting with a shop,” Veronica explains.

E-commerce is the way to go in the modern era. That is where the money lies, and that is where the rest of the world also lies. MEDO has recognised this phenomenon and this is exactly why we are investing in an incubator to engage and develop the entrepreneurs of tomorrow. “Wavunow’s presence improves quality of products and increases sales which in turn creates jobs for the crafters,” Veronica explains her business model, “We are up-skilling communities to be comfortable selling and interacting online, which opens a whole world to communities and can translate to other job opportunities. We are stimulating the economy from the bottom up!” Let’s start from the bottom and get the economy online, and on fire.Visit Wavunow: www.wavunow.com


FEATURE

MEDO NEWS

71

MEDO’s E-commerce

incubator will open it’s doors as of April 2015 in

Cape Town. Visit medo.co.za for more information.

72

The Price of Micro EnterpriseThe City of Cape Town recently launched a workshop series all over Cape Town in Bellville, Rylands, Khayelitsha, Parow, Athlone and Mitchell’s Plain focusing on the support and development of micro and informal businesses.

“We want to engage with the community on a local level,” micro enterprise support workshop coordinator Nadia Ringquest explained at the Rylands leg of the project in November 2014. “We want to disseminate information, but also include an interactive element in order to make these sessions tangible rather than telling small business owners what to do,” she explains. The workshop is structured around a communal business assessment in order to establish where businesses lack in terms of skills, and then follows unto a ‘round-robin’ of workshops where entrepreneurs choose fields that interest them. These workshops topics discussed in lectures included: how to do business with the City of Cape Town, how to engage with the city, costing and pricing, basic record keeping and formulating a business’ vision. In later workshops there were also on-on-ne sessions with SARS. During these lectures, entrepreneurs were urged to interact with the lecturers as well as each other, to talk about their experiences and struggles. The workshop was then concluded with a mass networking session where each entrepreneur was given 10 seconds to introduce his or her business.

MEDO CEO Judi Sandrock, in charge of the cost and pricing workshop explains, “micro enterprises are one-man to five-man shops and in this case are often informal businesses. It is a particularly interesting field as you’ll often find that these businesses operate on completely different business models than bigger industries. We’d like to change that.” Judi hosted a range of workshops on the often troubling field

of costing and pricing in this regard. “I find that these businesses often have problematic relationships to money, almost feeling guilty to make a profit. But the fact of the matter is, you aren’t sustainable unless you make profit and that means pricing your goods or services according to quality, pricing your time, pricing your risks and under no circumstances giving anyone discounts.”

“We’ve realised that many of the businesses have questions around the formalisation of a business, tax and financial management,” Nadia explains. She also furthered that the workshops focus on a severe feedback session in order to find the exact needs of the community and to answer these queries over the next year at the following three workshop series.

After two rounds of lectures, Judi opened the floor for a networking session aimed to get entrepreneurs talking about how they can work together. “We want entrepreneurs to source supplies and products locally, which is why we implement the networking session,” Chiara Baumann, project manager and Rylands area representative explained. As the workshop ended the hall was filled with entrepreneurs talking in pairs and exchanging business cards. The workshop was repeated in February and will happen again in May, when the entrepreneurs will come together again armed with questions, ready to further their businesses to new heights.

One can only imagine benefits to come when entrepreneurs, experts and the government work together to build support structures for the local economy. “After all, a rising tide lifts all the boats,” Judi added.

Images:Top: MEDO CEO Judi Sandrock lecturing during the workshop.Bottom: Nadia Ringquest, Timothy Page and Chiara Baumann, organisers of the workshop series.


FEATURE

MEDO NEWS

Cyc le th rough the h i s to r i ca l t ownsh ip o f A lexandra fo r a once

in a l i f e t ime exper ience

Alexandra Bicycle Tours offers bicycle rental and bicycle tours within Alexandra township.

Our tour focuses mostly in culture, history and lifestyle of the community in Alexandra.

We take tourists around the township on bicycles, bikes and walking tours as we show

them our heritage sites and the township as a whole.

W h a t ’ s t h e i t e n e r a r y ?

I N T R O AT 1 3 t h AV E N U E N E X T TO A L E X A N D R A S TA D I U M

S E E Y O U R TO U R G U I D E ’ S H O M E

V I S I T TO T H E L O C A L D AY C A R E

B E E R TA S T I N G AT A S H E B E E N

V I S I T TO A C H U R C H

V I S I T TO A S C H O O L

V I S I T TO T H E H O S T E L S

PANORAMIC VIEW OF ALEXANDRA

V I S I T M A N D E L A’ S H O U S E

Mulaudzi Alexandra

Tours

T E L : 0 6 1 3 6 5 7 6 9 5

“

Jeffrey Mulaudzi

Mulaudzi Alexandra Tours Founder and CEO, Jeffrey Mulaudzi

Over a 3-hour tour you’ll explore first-hand the sights and experiences only Alexandra can

offer, by bicycle of course...

W W W. A L E X A N D R ATO U R S . C O . Z AJ E F F @ P U B L I C B I C Y C L E S . C O . Z A1 3 8 - 11 AV E N U E , A L E X A N D R A J H B , 2 0 9 0

Cyc le th rough the h i s to r i ca l t ownsh ip o f A lexandra fo r a once

in a l i f e t ime exper ience

Alexandra Bicycle Tours offers bicycle rental and bicycle tours within Alexandra township.

Our tour focuses mostly in culture, history and lifestyle of the community in Alexandra.

We take tourists around the township on bicycles, bikes and walking tours as we show

them our heritage sites and the township as a whole.

W h a t ’ s t h e i t e n e r a r y ?

I N T R O AT 1 3 t h AV E N U E N E X T TO A L E X A N D R A S TA D I U M

S E E Y O U R TO U R G U I D E ’ S H O M E

V I S I T TO T H E L O C A L D AY C A R E

B E E R TA S T I N G AT A S H E B E E N

V I S I T TO A C H U R C H

V I S I T TO A S C H O O L

V I S I T TO T H E H O S T E L S

PANORAMIC VIEW OF ALEXANDRA

V I S I T M A N D E L A’ S H O U S E

Mulaudzi Alexandra

Tours

T E L : 0 6 1 3 6 5 7 6 9 5

“

Jeffrey Mulaudzi

Mulaudzi Alexandra Tours Founder and CEO, Jeffrey Mulaudzi

Over a 3-hour tour you’ll explore first-hand the sights and experiences only Alexandra can

offer, by bicycle of course...

W W W. A L E X A N D R ATO U R S . C O . Z AJ E F F @ P U B L I C B I C Y C L E S . C O . Z A1 3 8 - 11 AV E N U E , A L E X A N D R A J H B , 2 0 9 0

75

Expecting one person to be an expert in each field neccesary to effictively run a business, whilst keeping the businesse 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 YOUR PERSONAL BUSINESS ADVISOR: Advisor specialists are here to help with-legal advice-financial and tax advice-general business advice -insurance advise

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:Giving you the time to enjoy your business


FEATURE

MEDO NEWS

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 cam-paigns.-Lead generation: Once registered online, the system automatically matches your profile with business re-quests received, creating new leads and prospects.

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.

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.

Want in on the deal? All MEDO entrepreneurs automatically added to our shared services provider MEDO Club and from there it’s as easy as 1,2,3:

- Call 010 500 5555 or visit www.medo.club- 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.

76

MEDO Cape Town:A Tech-Haven for entrepreneurs

What will we see in the incubator?The main design intent is to resolve the internal spaces to suit the needs of MEDO offices by Building an auditorium conference room, individual and collective office spaces, separate meeting rooms, and work spaces for entrepreneurs.What will make the MEDO office a unique, interesting and exciting space?The position of the building itself; the concept of the incubator which directly translates itself in the architecture of the offices; and MEDO itself as an exciting, innovative and relevant company for 2015 and the future.What is the inspiration behind the design?The expansive views of the city, Table Mountain, and the sea horizon are always present from the inside of the offices. The spaces are arranged in such a manner that each of these view points become a prominent outlook from the interior. Building of an elevated level with certain industrial character seemed relevant as the offices also enjoy a full view of the Cape Town harbour from the 27th floor!Is the design aimed to be solely aesthetically pleasing, or does it implement practical features adding to how the office will be run?The design is intrinsically informed by the use of the office and its operations. The Medo offices design follows the function that the company needs. In addition to this, the industrial aesthetic in combination with transparency (achieved by glass partitions) enhances the collective and incubatory essence of the company.How will the design of the space effect work productivity?The spaces are designed in such a manner that encourages

interaction among all staff at all times, but still allowing for privacy and confinement when necessary. The privileged position of the offices and its expansive views of Cape Town and its magnificent surrounds also add to the upliftment of the ambience, which is enhanced by the layout of the space.As the office will run as an entrepreneur incubator, how will the design create a creatively stimulating space?The hierarchy of the spaces in intentionally blurred by using transparent dividers, yet there are areas which enable special interaction among people, providing a sense of importance (for example the oval meeting room, which creates a sense of intimacy yet is expansively open to the best views of the city) The incubator will be tech-focused, how does the design add to the greater theme of tech?The reception area is proposed to house an information wall behind the reception desk. The idea is to have an exciting display of MEDO projects, concepts and ideas. The auditorium and oval meeting room have incorporated green wall and screens, as well as certain furnishings throughout the office that will carry incorporated services, such as power and data.In your professional opinion, does a person’s work environment effect their work? How?There is ever more research and exploration into the way buildings and spaces affect human beings and their abilities, creative energies and performance in the work place. One cannot deny that well designed spaces, and congenial work environments contribute significantly to ones state of mind and productivity. As Winston Churchill said, “We shape our buildings, and afterwards our buildings shape us.”

To learn more about Luis, visit: miraarchitechts.com

World renowned architect, Luis Mira is the creative brain behind MEDO’s newest incubator situated on the slopes of Table Mountain looking over the harbour. After construction starts early this year the incubator will be opened as Cape Town’s leading tech-incubator asssiting entrepreneurs interested in anything from space engineering to IT. Luis sheds some light on his innovative design of the incubator.

77


FEATURE

MEDO NEWS

See the plans for MEDO’s Cape Town tech-incubator, showcasing the double-storied wonder situated on the top 27th floor of the Metropolitan building in the heart of Cape Town. Watch out Western Province, MEDO is about to reach new heights within your borders!

79

PR SUPPLIER DEVELOPMENT

FEATURE

EXPERT OPINION

like a PRO:The biggest thing a small business needs to know is that public relations is not the ‘privilege’ of big business. In fact, it could be argued that it is a necessity for smaller and medium sized businesses, start-ups and entrepreneurial organisations as no other avenue will give you bigger bang for your buck than a cost effective, well implemented Public Relations (PR) campaign. In addition to being more cost effective than traditional advertising, good PR will result in the media and your consumer or target market supporting your product or service through published pieces and on social media. We all know that adverts are paid for and that the company is trying to sell us something, so an ‘endorsement’ from a third party – such as the media – increases your credibility. Credibility that can help in not only generating sales, but also interest in your business from potential partners and investors.

What is PR? Essentially it is the ‘strategic management of relationships between an organisation and its many publics using communication to achieve understanding and insight, to realise goals and meet objectives.’* Ultimately, the end goal is to generate positive public awareness of a company, its spokespeople, products and services.

However, it’s not as simple as telling the media and potential

customers what’s so great about you. In fact that’s probably the best way to ensure that they won’t talk about you. The relationship between your company and the media should be mutually beneficial - in other words, what can you give the media that is of value to them? The most obvious is a newsworthy or interesting story that adds value to the publication. For example, you either need to provide a journalist with a news story such as the launch of a new product or service that will significantly impact in a certain field - or you need to give real insights or tips and advice that will enhance a journalist’s article on a specific topic.

To ensure this, PR should be handled by professionals – this could either be through an agency or an internal person. However if you are handling your PR internally, it is a mistake to simply hand this function to an employee with little or no experience. The media are professionals and will not appreciate being hounded by a non-professional person who isn’t to grips with PR. Remember, one bad experience with the press can cause significant damage to your brand.

Another avenue for promoting your business is of course via social media – an important element of any PR campaign. While this still requires the input of professionals, many people nowadays are comfortable in this

space – and if you apply a few basic techniques, is a medium that can be managed by your company until you have additional resources. However, commitment is key – as you would need to generate regular content. With regards to the content – this is king! Post informative, creative and customised content and remember in the social media space, you are encouraged to think out of the box using humour for example or by taking a stance or commenting on a topical issue.

There are a wide variety of tools the PR industry utilises to engage in an effective PR campaign and as a small business you will certainly benefit from the skills employed.

For more information on the basics of PR consult resources such as PR Newswire who have a fantastic PR Toolkit providing practical tips and advice for smaller businesses - www.smallbusinesspr.com

To maximise your social media interactions and campaign use a resource such as eSocialite. This South African developed product is a quick and convenient way to update all your social media accounts by allowing you to easily send regular updates to all your social media accounts from one place at the same time. To contact Sarah, email:sarah@thelime .co.zawww.thelimeenvelope.co.za

What small businesses need to know about public relationsBy Sarah Martin, MEDO’s PR wizard from The Lime Envelope

www.medo.co.za

MEDO EnjOy MOrE Of thE spOtlightThis year to date MEDO secured over 14 million rands worth of media coverage in various print and online publications and broadcast interviews. All articles have been positive in tone.

Enjoy MEDO in the spotlight.

in the news

Oct/Nov 2014

Over the past year to date MEDO secured over 14 million rands worth of media coverage in various print and online

publications and broadcast interviews. All articles have been positive in tone, buillding onto the solid foundation

of the MEDO brand.

IN THE NEWS

81

MEDO Advertising Equivalent (AVE) Report: August-December 2014

MEDO IN NUMBERS

MEDO NEWS

Publication

Daily Sun (Cape)

www.teensonline.co.za

Power FM - 98.7

www.htxt.co.za

Sowetan

Daily Sun (Cape)

Daily Sun (KZN)

Daily Sun

CNBC Africa

www.sowetanonline.co.za

www.b2bnews.co.za

www.marketingtimes.co.za

www.marketingspread.co.za

www.news24.com

www.fin24.com

Daily Sun (Cape)

Kingfisher FM - 103.8

Bay FM - 107.9

www.mype.co.za

www.rnews.co.za

Kingfisher FM - 103.8

Bay FM - 107.9

Nqkubela FM - 97.0

PE Express Indaba

www.fin24.com

www.chefmag.co.za

www.hospitalitymarketplace.co.za

www.publicityupdate.co.za

Die Burger (Oos Kaap)

www.themarketingsite.com

www.drinkstuff-sa.co.za

www.fastmoving.co.za

www.publicityupdate.co.za


www.fastmoving.co.za

Cosmopolitan

www.transportworldsfrica.co.za

www.marketingupdate.co.za


www.bizcommunity.com

Date

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30-Aug-14

18-Sep-14

18-Sep-14

18-Sep-14

26-Sep-14

26-Sep-14

30-Sep-14

15-Oct-14

17-Oct-14

18-Oct-14

18-Oct-14

20-Oct-14

20-Oct-14

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1-Dec-14

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4-Dec-14

5-Dec-14

15-Dec-14

Content

Local goes international

Breathing fresh air into mobile advertising

In-studio Interview with Judi Sandrock, on The Power Hour

Inspiring and teaching SA’s rural kids through the lens of a video camera

Advice for entrepreneurs

Ready for success

Ready for success

Ready for success

Interview with Judi Sandrock, CEO of MEDO with My Business Rule

Helping entrepreneurs contribute to the economy

SA Entrepreneurs prove their worth

SA Entrepreneurs prove their worth

SA entrepreneurs prove their worth in a internationally

SA entrepreneurs gain insight, deals in UK

SA entrepreneurs gain insight, deals in UK

Recharged and ready to make a success of life

Telephonic Interview with Dee Lukes and Noluthando Tutani

Telephonic Interview with Illana Lai and Noluthando Tutani

Mobile entrepreneur incubator headed for Port Elizabeth

MEDO “Treppie” comes to Nelson Mandela Bay

In-studio interview with Dee Lukes with Noluthando Tutani, and Andy

Matiwane, representative of the Nelson Mandela Bay Municipality

In-studio interview on Community Matters with Noluthando Tutani, and

Andy Matiwane, representative of the Nelson Mandela Bay Municipality

In-studio Interview with Anelisa Anesh Nkwali with Noluthando Tutani, and

Andy Matiwane, of the Nelson Mandela Bay Municipality

Treppie hits the townships

Entrepreneur tour visits Port Elizabeth

Top speakers and on-trend topics at IFEA’s The Hub seminar



Sosiaal

Big names in the mix for IFEA 2014Africa’s BIGGEST food & drink event



IFEA 2014 ends on a high note

IFEA 2014 delivers world-class food and drink expo for global market

IFEA 2014 delivers excellent food and drink expo for global market

AWESOME WOMAN: Meet 2014’s standout achievers, trailblazers in

respective fields, and they embody the attributes we most admire

Start-up success through “treppie” truck

Isuza Trucks partner with MEDO to equip start-ups with the right skills

Proven Entrepreneurial Programme grows small business

Supplier development programme a success

Advertising cost

R18 591,24

R17 500,00

R149 400,00

R19 110,00

R4 849,98

R28 013,15

R10 237,22

R27 783,54

R220 000,00

R22 680,00

R17 500,00

R19 250,00

R27 500,00

R28 800,00

R31 500,00

R17 358,97

R 19 800,00

R20 918,70

R15 000,00

R11 250,00

R46 200,00

R26 796,00

R32 400,00

R10 877,74

R9 800,00

R2 500,00

R2 000,00

R2 590,00

R2 083,32

R2 750,00

R2 500,00

R2 000,00

R2 590,00

R2 750,00

R2 000,00

R60 064,76

R2 000,00

R2 907,00

R44 000,00

R38 200,00

PR value to client

R74 364,96

R70 000,00

R597 600,00

R76 440,00

R19 399,92

R112 052,60

R40 948,88

R111 134,16

R880 000,00

R90 720,00

R70 000,00

R77 000,00

R110 000,00

R115 200,00

R126 000,00

R69 435,88

R 79 200,00

R83 674,80

R60 000,00

R45 000,00

R184 800,00

R107 184,00

R129 600,00

R43 510,96

R39 200,00

R10 000,00

R8 000,00

R10 360,00

R8 333,28

R11 000,00

R10 000,00

R8 000,00

R10 360,00

R11 000,00

R8 000,00

R240 259,04

R8 000,00

R11 628,00

R176 000,00

R152 800,00

Totals: R1 024 051,62 R4 096 206,48

Compiled by The Lime Envelope: www.thelimeenvelope.co.za

82


MEDO NEWS

Pen it in! MEDO Calendar 2015:

tsogosun.com

EXPERIENCE YOUR PERFECT ESCAPE

Everyone has their own idea of the perfect break. A holiday with loved ones, the thrill of the casino floor

or the imagination of theatre. Whatever yours is, Tsogo Sun has the variety you need, with 14 casinos and

over 90 hotels in South Africa, Africa and Seychelles.

Experiences shape your life, escape to ours.

For more on the options available to you, visit tsogosun.com to choose your perfect escape. Tsogo Sun

has a choice for everyone.

Southern Sun Elangeni & MaharaniSouthern Sun The CullinanSouthern Sun Montecasino

Montecasino

Foundation Business Skills Programme-Cape Town & Johannesburg

Over a course of six weeks, a group of handpicked entrepreneurs will come to weekly workshop sessions dealing with the basic concepts every business needs to know in order to succeed. The programme will culminate in a “Big Pitch” where the entrepreneurs receive the opportunity to sell their ideas to a room full of big corporates and potential investors.

13 March-17 April

13 April-24 AprilTreppie takes on Mpumalanga!-Mpumalanga Province

Our socio-economic mobile incubator, Treppie, will take on the roads of Mpumalanga to provide basic business training and MEDO programme opportunities to entrepreneurs located in rural and peri-urban areas. Driving around with our new state-of-the-art truck as sponsored by ISUZU, this will no doubtedly be a tour to leave a lasting impression on the community.

Supplier Development Bootcamp-Cape Town

After a strenuous interview process, we take a handful of budding entrepreneurs for an intensive week-long workshop programme. These workshops are aimed to fine-tune entrepreneurs to become reliable and efficient suppliers to big corporate companies.

28 June-3 July

Entrepreneur Networking-Johannesburg

Apart from knowledge sharing workshops that arm entrepreneurs with a basic business skill knowledsge, MEDO encourages entrepreneurs to master the art of networking, something no classroom can teach. After all, business is about who you know just as much as what you know!

30 April

See some of the highlights of MEDO’s 2015 calendar. Be sure to visit medo.co.za for more exciting news.

UK International Trade Programme process-South Africa & England

Starting in April, MEDO will start looking for entrepreneurs who are looking to- and have the potential to scale their business to the level of foreign trading. After an extensive interview process, the programme will offer a series of workshops to the participants, wherafter the entrepreneurs will take part in a week-long bootcamp to better equip themselves for the journey. The workshops also culminate in a “Big Pitch” where renowned business -men and women will handpick the top entrepreneurs who will be taken to the UK where they will be afforded the opportunity to meet potential clients and investors. Be sure to stay up to date at medo.co.za for the progress of the programme.

1 April-25 July

Pen it in! MEDO Calendar 2015:

tsogosun.com

EXPERIENCE YOUR PERFECT ESCAPE

Everyone has their own idea of the perfect break. A holiday with loved ones, the thrill of the casino floor

or the imagination of theatre. Whatever yours is, Tsogo Sun has the variety you need, with 14 casinos and

over 90 hotels in South Africa, Africa and Seychelles.

Experiences shape your life, escape to ours.

For more on the options available to you, visit tsogosun.com to choose your perfect escape. Tsogo Sun

has a choice for everyone.

Southern Sun Elangeni & MaharaniSouthern Sun The CullinanSouthern Sun Montecasino

Montecasino

YOU DON’T BUY A TRUCK, YOU JOIN A TEAM.

McC

ann

JHB

9115

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MEDO Magazine, First Quarter 2015

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Transcript of MEDO Magazine, First Quarter 2015