SMME NEWS - AUG 2016 ISSUE

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SMME NEWS 4 17 August 2016 Nonto’s Business Corner Find a way to bring new innovations into your business Jabulani Jewellery – Empowering Women of Ndwedwe THE innovation summit hosted at the Moses Mabhida stadium gave the opportunity for young people from various universities in KwaZulu-Natal to present their innovative business ideas. The most fascinating ideas came from very unique solutions provided for simple business models. An excellent example of this was the business idea created by Durban University of Technology (DUT) pupils which is the uber-styled tuckshop that delivers to the needs of students that study late. The business model is simple but very effective using a tablet device the group gets messaged by students asking for whatever snack they need, as well as giving their location, then depending on the distance, they deliver with a bicycle or simple move the mobile tuck-shop to the customers. This idea also makes money through advertising done on the computer monitor on top of the mobile tuck-shop. Being creative with your business requires keeping up with the latest innovations and finding ways to use them within your business to give your company an edge as well as to make business simpler for you. No matter how simple the business model is, even if you work as a street vendor, with the advance with technology you can keep up with the buying patterns of your customers by simply having a barcode scanner app on your phone that will help keep track of your supply and finances. Constantly working on improving your business model is your responsibility as an entrepreneur; seek advice from different experts in different fields such as technology, communications, finance and trading. Services SETA’s Discretionary Grant The Service Seta has introduced grant that helps the employers to cover costs of having learnership and internships programmes within their company. This is called Discretionary Grant. It also goes to accredited training providers such as Elangani college, Africa Mayibuye leadership management and Harambee which are all institutions that help place qualified personal within companies for internships at little to no cost to the company.Having the grant will help meet the objectives of the Human Resources Development Strategy (HRDS), the National Skills Development Strategy (NSDS) and the Sector Skills Plan (SSP). Taking part in Discretionary Project (learning type) has many benefits. Consider the unemployment crisis in the country at the moment this challenge is compounded by the fact that with qualified people lack experience so by the time they come into an office environment they lack practical skills. This can be a major problem for companies who now have to train an employee whilst paying them a full salary. The purpose of an intern is to have someone on board who has the potential to become employed permanently but as the employer you get to train them and test to see how they fit into the company at a lower cost and the experience the intern receives will be invaluable whether or not they join the company after the internship. The other benefit for participating in leanership programmes is that it also give the company opportunity to gain reimbursements, grants and tax rebates. If you pay the Skills Development Levy with SARS, are registered with SETA being sure to submit WSP and Annual training report than you could qualify for reimbursements that go toward the training costs. To find more about this, go to Services SETA website Discretionary project (learning type) has many benefits. Consider the unemployment crisis in the country at the moment this challenge is compounded by the fact that with qualified people lack experience so by the time they come into an office environment they lack practical skills. This can be a major problem for companies who now have to train an employee whilst paying them a full salary. The purpose of an intern is to have someone on board who has the potential to become employed permanently but as the employer you get to train them and test to see how they fit into the company at a lower cost and the experience the intern receives will be invaluable whether or not they join the company after the internship. Participating in leanership programmes also give the company to opportunity to gain reimbursements, grants and tax rebates. If you pay the Skills Development Levy with SARS ,are registered with SETA being sure to submit WSP and Annual training report than you could qualify for reimbursements that go toward the training costs. To find out about this, go to Service Seta website; www. serviceseta.org.za or visit their nearest office to receive assistance. WHEN Paula Goosen first started Jabulani Jewellery, she was not aware of the larger impact she would be having on women’s lives, especially women of Ndwedwe and KwaMashu. Goosen started off as a speech and hearing therapist but even during those years she always loved Zulu beaded jewellery. “I always would wear the beads a lot, but it wasn’t until I relocated to the United States for work that I realized how eye-catching this jewellery is. Whenever I’d be out, people would stop me and ask where I bought my pieces from.” She then decided to become an entrepreneur out of a need to support herself while abroad. So she took the gap in the market for the exotic jewellery and started selling it at fairs and markets out in Seattle, America. According to her, this is a movement of women empowering women. “As a speech and hearing therapist I had no business training at all, and that lack of knowledge often cost me a great deal”, she said. Figuring her way through the product research and development phase of the business was a challenge. “Americans were a bit bigger in size so the design of the product had to be reconstructed, and whenever I had the product delivered from South Africa it would sometimes be broken. So I also had to learn about quality and packaging”. When she came back home to South Africa and decided to start Jabulani Jewellery in the country from which the beaded designs came from. She sought help from various women who were skilled with beadwork these women came from areas such as Ndwendwe and Kwamashu. Working alongside the team of bead workers has been an empowering journey for Goosen. “Being a woman in business can be hard we struggle with people not taking us seriously , furthermore the challenges faced by women in the rural areas are Compounded by the affects of HIV and AIDS with women being the only bread winner in a home where they also have to take care of grandchildren. The women I work with inspire me they a strong powerful people. It is a wonderful thing to see how these women have changed through empowering themselves from women from small towns that didn’t even have bank accounts to savvy women who are independent and smart with a great business sense. ” Paula is also aware of another change happening amongst women in business “ There is a rise of the movement of women empowering women, which is amazing, the support is more than welcome” 26 years later with bead artists numbered between 70-100, Jabulani Jewellery continues to work and despite all odds has managed to break into the market with clients from tourist shops in South African airports as well as abroad as far as France. Goosens advice for other women who want to turn their passion into a business is to persevere, build tenacity and also learn how to say no. “In the beginning of your business out of sheer naivety you will have the urge to please everyone even if it’s to the detriment of your company, learn what you can and cannot handle this will save you time and money.” Funding Understanding the National Empowerment Fund Nontobeko Duma THE National Empowerment Fund (NEF) is one of the funding agencies that are controlled by female Chief Executive Officers. She is Ms Philisiwe Mthethwa, a product of the women struggle of 1956 which was led by Lilian Ngoyi, Helen Joseph, Bertha Mashaba and others. The purpose of the NEF is to encourage black people to be in business and become entrepreneurs. The NEF assists black entrepreneurs to access funding. The fund provides assistance to black youth, women and men, communities and businesses to grow sustainable and successfully businesses. They are four main NEF Categories of funding. iMbewu Fund: This subdivision deals with entrepreneur finance, procurement finance and franchise finance. This fund supports black entrepreneurs who are starting up a new business or expanding an existing one. This contribution takes the form of offering debt counselling, quasi-equity and equity finance products. The funds contribution ranges from R250 000 to a maximum of R10 million uMnotho Fund: This division specifies in finance, new venture finance, expansion capital, capital markets, and liquidity and warehousing. This fund is available to black entrepreneurs who manage or own businesses, new ventures, expanding existing business. It is also available to entrepreneurs who want to buy a share of equity in black and white owned businesses. The contributions from this fund range from R2 million to R75 million. Rural and Community Development Fund: This NEF fund has subdivisions in acquisition, new venture capital, expansion capital and start-up/green categories. The creation of this government fund is to promote sustainable change in social and economic relations along with supporting and developing the rural economy by financing sustainable enterprises and co-operatives. This NEF funding ranges from R1 million to R50 million. 3. Strategic Projects: This fund handles empowerment objectives. The aim of the government fund is to increase black participation in earlystage projects. These projects need to have economic merit and the ability to deliver on the government’s development mandate. How Can You Apply for NEF Funding? The processes begins with evaluating your business firstly By conducting a, self-needs analysis to determine how the NEF funding can assist your businesses needs and which offer is best suitedThen you must provide an application form and a comprehensive proposal with evidence that supports the commercial viability and financial position of your business. After you’ve submitted your application to the NEF, it will assess your information for final approval and receiving of funds. The NEF website offers a checklist to ensure you include everything needed when applying for funding. You’ll need to meet all the requirements or your application won’t be successfully considered. This process can take up to six weeks. If your application is successful, it could take up to three to four months to receive NEF funding. For more information about the NEF fund, visit www.nefcorp.co.za. Email general enquiries to info@ nefcorp.co.za Or call the following numbers +27 (0)11 305 8000 or 0861 843 633 (call centre).
17 August 2016 SMME, what you should know SMME NEWS 5 Understanding Costing and Pricing By Phumelela Projects Most new businesses do not make a profit immediately and they need 3 to 6 months to start up and get going. It is important to have a budget for this period so that you can calculate exactly how much money you need to have before you can start your business. It is a good idea to have money for at least 3 months before you begin. A budget helps you to do this. Remember that if you need to have money for 3 months then when you add up all the costs you need to multiply them by 3 so that you know the total amount of money you will need to keep your business going for the first three months. Your budget helps you to list all the costs and expenses in your business. There are three major costs – start up costs, fixed costs and variable costs. Your salary is fixed cost and must not be confused with your profit. The profit needs to go back into the business to buy supplies and help your business grow. Examples No matter what type of business you wish to start, you need to determine whether you can make a profit or not. No-one goes into business if they cannot make a profit. People who make and sell their products are called manufacturers. A service usually involves selling a skill you have – like mending shoes or fixing a roof or being a hairdresser. Retailers are people who purchase goods in order to resell them. You need to understand how the different business owners calculate their costs so that they can work out their prices to ensure that they make a profit. Manufacturing example In this example we take a person who has a business making wooden shop signs. We will not include start up costs in this example. We will include the payment of the loan that was taken out to cover the start up costs. This loan repayment amount is included under fixed costs. One of the first things that needs to be done is to work out how much signs can be made and sold in a month. When you know that you can work out the variable costs and the fixed costs so that you can calculate the total costs. Only after you know the total costs can you work out what you need to charge for each product (sign) so that you make a profit. To be continued OPPORTUNITIES Youth Develolopment GLOBAL ENTREPRENEURSHIP NETWORK STARTUP OPEN 2016 COMPETITION FOR ENTREPRENEURS (ALL EXPENSE PAID TRIP TO JHB) Application Deadline: September 30th 2016 Startup Open is a global competition that is open to entrepreneurs from any industry with a new business that has yet to raise any outside capital from angel investors, venture capital firms or other formal sources of seed funding. FIRE AFRICA AWARDS 2016 FOR PROJECT PROMOTING ICT DEVELOPMENT IN AFRICA (FULLY FUNDED TO 2016 INTERNET GOVERNANCE FORUM IN MEXICO & USD3 000 CASH PRIZE) Application Deadline: Friday, 2 September 2016 The Fund for Internet Research and Development – FIRE Africa- is one of Africa’s leading Grants and Awards programmes designed to encourage, support and develop innovative online solutions to Africa’s education, information, infrastructure and communication needs. The FIRE Africa Awards seek to acknowledge innovative initiatives in Africa that have made a concrete contributions through the use of information and communication technologies and have had a proven impact on the region’s social and economic development. Apply online at: http://www. fireafrica.org/awards NYDA ENTREPRENEURSHIP DEVELOPMENT PROGRAMME The Entrepreneurship Development Programme offers a range of services through the awareness and structured training programmes offered at the NYDA branches. The awareness programme offers the following to groups of young people in communities or at the NYDA branches: 1. Basic Entrepreneurship skills 2. Characteristics of an Entrepreneur 3. Basic Business Requirement These training courses are offered as a full course or modular courses depending on the specific needs of the young person. Interested parties are required to complete the training application form available from www.nyda.gov.za or visit the closest NYDA branch. Calling all film makers THE Micro Budget film programme aims to support local emerging filmmakers and encourage the production of content in order to stimulate the local film industry. The Durban Film Office is calling for submissions for Micro Budget films for its 2016/2017 cycle. This its third year in operation. The programme seeks to develop a local model and brand of low budget film-making that is cost effective, practical and commercially viable. The Durban Film Office defines ‘emerging’ filmmaker as having acquired some experience producing a work which has earned industry or public attention, and is aspiring to write ,direct or produce feature film length works. The Micro-budget Film Programme offers R150,000.00 for production of a feature length film. This programme specifically targets fiction feature projects, and will run for a period of 12 months with an aim of producing 5 micro budget films per year. For more information one can visit; www. durbanfilmoffice.com. Project Submissions must be delivered to: Durban film office, 11th floor Rennie House, 41 Margaret Mncadi Avenue Durban. The officials of this project emphasised that emailed submissions will not be accepted. The person to contact is Sibongiseni Shangase or Nosipho Hlophe on 031 311 4788 or email Sibongiseni.shangase@durban.gov. za or nosipho.hlophe@durban.gov. za. Submission deadline: 31 August 2016 Avon Peaking Power Plant sponsors KwaDukuza Resource Centre’s MST Programme The Sappi KwaDukuza Resource Centre has successfully implemented a tutorial programme in Mathematics, Physical Sciences and Technology materials development for Grade 12 learners. This dynamic programme focused on learners from Qoqulwazi Secondary, Shakaskraal Secondary and Nonhlevu Secondary School. The programme took place during the July vacation. The response was overwhelming thus a strict selection process was adhered to. Learners were visited at schools and the programme was outlined. Selected learners had to complete application forms and thereafter attend orientation. The programme commenced on the 4th of July and a timetable was implemented covering classes for Maths, Science, Careers and basic computing. Due to the generosity of the programme sponsors, Avon Peaking Power Plant, learner’s transport costs as well as refreshments were taken care off. The education department representative Mr T Woodraj visited the centre to address learners on the values of a good matric pass as well as sound benefits an excellent tertiary education would bring to their lives. Jabulile Mathlako, a representative of Avon Peaking also attended the programme and interacted with learners to ensure they gained the maximum exposure from the programme. In maths and science classes the tutors covered topics which the learners found difficult to grasp. Computer theory and practical lessons were also covered with the learners, were they had to learn basic components, word processing and surfing through the internet. Career building classes helped learners gain some insight into career fields and learning skills. New Head Office for Ithala Xolani Nxumalo ITHALA Investment Corporation Limited has moved its head office from Umlazi to a posh building in Point Waterfront, in Durban. Its new building is known as Ithala Trade Centre. The Manager for Social Corporate Ms Sithandiwe Dimba, told SMME News that the rationale behind this move, is that this financial institution needed a bigger space so as be a one stop shop. She further said Ithala has tailor made packages for the SMMEs since its main mandate is to provide access to financial products and services in area where such offerings have been unavailable. Ithala has embarked on a programme of women and youth empowerment. It is conducting Ithala Women in Business workshops in all 11 districts of KwaZulu-Natal and Durban Metro. Amahhovisi amasha oMnyango wezeNhlalakahle eMandeni ASEVULWE ngokusemthethweni amahhovisi amasha oMnyango wezeNhlalakahle eMandeni, evulwa ngu Ngqongqoshe walo mnyango esifundazweni saKwaZulu-Natal uNkk. Weziwe Thusi. Umcimbi wokuvula la mahhovisi ubusehholo lomphakathi KwaSundumbili, iSibusisiswe. UNkk. Thusi utheleke eMandeni ehambisana nozakwabo uMnu. Mxolisi Kaunda wezokuThutha, naye obezohlaba isoyi lokwakhiwa kabusha komgwaqo uP415 okuzodla imali eyizi R45 million. Lo mgwaqo uxhumanisa idolobha lase Mandeni nebhishi lalapha iTugela Mouth, oHwebede. Bemukelwe yiMeya yaleli dolobha uMnu. Siphesihle Basil Zulu, onxuse uNgqongqoshe wezeNhlalakahle ukuba alethe amahhovisi akwa SASSA eduze kwalana amasha ukuze kusizakale abantu abaningi abawadinga kakhulu.
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