South Africa
ISSN 2619875 January 2019
SMME Handbook Simon changes 25 feb 2020.indd 1 2019/04/06 4:20 PM
Innovative concepts, flawless execution.
We create. you celebrate.
SMME Handbook Simon changes 25 feb 2020.indd 2 2019/04/06 4:20 PM
ADVERTISING
Define strategies that
work for you.
ON-LINE MEDIA
Development and creation of all
digital advertising media
GALA DINNERS
Grand dinners with a course
CONFERENCES BUSINESS BREAKFAST
Event Solutions that put your Be the first and get a head start
business needs first
PUBLISHING
BUSINESS TO BUSINESS Managing large and small scale
Custom Events publications
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We Lift You Up
CONTENTS EDITOR 10052HM Recruitment.ai 1 2019/02/06 1:19 PM
Gill Lewis
ART DIRECTOR
Sheeth Hanief
12 The future of e-commerce: The
challenges of scaling businesses PHOTOGR APHY
14 Raising questions on Responsible Pixabay
Capitalism Freepik.com
18 Skills: the currency of ADVERTISING EXECUTIVES
the 21st Century Mark Lukama
20 Scaling up your mentorship Jean-Fred Swartz
24 Dimzique Jewellery
OFFICE MANAGER
26 Data the new gold in HR and Sue-Ellen Kruger
payroll departments
30 Getting in their face PRINTERS C
FA Print
34 Rea’Nubia M
Y
36 Transparency Disrupted PUBLISHER CM
Chenica Williams
38 Luthii Leather [email protected] MY
CY
40 Counting Your Organisation’s CMY
Reputation Score? SALES DIRECTOR K
Garth Williams
42 Themba Lize Leather
[email protected]
45 Ruling the cloud
48 Future thinking translates into
energy effi ciency
Garnica Media and Events
Tel: 021 681 7200
Email: [email protected]
www.garnica.co.za
Comair Limited is a proudly In addition, Comair’s non-airline business units include Tourism and Hospitality,
South African aviation and a Training Academy, as well as IT Solutions. The company boasts a rich history
travel group, offering of over 72 years in the aviation industry and has built a family of iconic brands
scheduled and non-scheduled throughout the years. Comair prides itself on its purpose ‘We Lift You Up’, which
All rights reserved. drives its aspiration to lift people up in an inspiring, empowering, passionate
No portion of this book may be reproduced airline services within South and innovative way, in order to render a positive impact in the world. Comair
without written consent of the copyright owner. Africa and the sub-Saharan
The opinions expressed are not to be considered has been independently certified by the Top Employers Institute, as one of the
Top Employers South Africa 2019.
those either of SMME HANDBOOK SA or the Africa and Indian Ocean
publisher, neither of whom accept liability of any Islands, as its main business. #WeLiftYouUp, #ProudlySouthAfrican, #EmployerofChoice
nature arising out of, or in connection with, the
content of this magazine.
SMME Handbook | www.smmehandbook.co.za 4 For more information on Comair, visit www.comair.co.za
10052HM Recruitment.ai 1 2019/02/06 1:19 PM
We Lift You Up
C
M
Y
CM
MY
CY
CMY
K
Comair Limited is a proudly In addition, Comair’s non-airline business units include Tourism and Hospitality,
South African aviation and a Training Academy, as well as IT Solutions. The company boasts a rich history
travel group, offering of over 72 years in the aviation industry and has built a family of iconic brands
scheduled and non-scheduled throughout the years. Comair prides itself on its purpose ‘We Lift You Up’, which
drives its aspiration to lift people up in an inspiring, empowering, passionate
airline services within South and innovative way, in order to render a positive impact in the world. Comair
Africa and the sub-Saharan has been independently certified by the Top Employers Institute, as one of the
Africa and Indian Ocean Top Employers South Africa 2019.
Islands, as its main business. #WeLiftYouUp, #ProudlySouthAfrican, #EmployerofChoice
For more information on Comair, visit www.comair.co.za
PUBLISHER’S NOTE
Bank
Keep on keeping on
Probably the greatest lesson my husband (and outside
business partner) and I have learned over the
past three years in growing our business from
start-up to freestanding, is the importance is the box.
pushing on through the tough times.
Don’t give up, keep your eye on the prize,
stay focussed and, most important, keep the
cash flowing. The drought we have suffered
nationwide (allied now with the latest Eskom
power crisis) highlights how debilitating it is Whether you’re a plumber, doctor, accountant,
for a business when your lifeblood is cut off. craftswoman, fintech, musician or magician, our
business banking platform has all the tools you
Whether than comes in the form of a shortage of need to take your business beyond.
cash, power, water, sales leads or raw materials.
No longer is just looking after the bottom line With user-friendly features like payroll, invoicing,
important, now we also have to keep a beady eye analytics, direct-feed intergration into Xero and more,
on the horizon. Small businesses suffer because Sasfin B\\YOND gives your business the edge.
this is a key function of a financial expert
and, sadly, many small business owners aren’t To find out more, visit sasfin.com, give us a call
financial experts. They are experts in creating juggling acts. As South Africans, we are all about on 0861 SASFIN, or speak to your accountant.
and running their specific budget, not CAs or tax making a plan. Beautiful though our landscape
boffins. is, it is also a harsh environment in which both
This is where we all need to humble the settlers and the indigenous people of the
ourselves, admit our shortcomings, and land have had to struggle hard for centuries to
subcontract such vital services until such time survive.
as we have scaled sufficiently to be able to afford That is the spirit that we as entrepreneurs
quality full-time experts as part of the team. must never lose sight on, as well as never being
Of course, this does add another thing for too proud to cut costs or take on work that might
us to keep an eye on and manage, as the wrong seem ‘below us’. We are living in a land of plenty,
financial expert (or a bad marketing practitioner but that ‘plenty’ relates to the challenges as well
or raw material supplier) can sink a business as the opportunities!
quicker than you can shout ‘ICEBERG’! Here’s to keeping the lights on and the
However, as the SMME Handbook is aimed wheels of small business industry turning.
at established small businesses (rather than
startups), our readers will be used to these CHENICA WILLIAMS
NOTE: This handbook will be distributed to SMME owners through the Department of Small Business Development, Seda, City
of Tshwane, City of Joburg, City of Cape Town, and at all four legs of the Smart Precurement and SAWEC. It will also be available
as a digital publication on www.smmehandbook.co.za
SMME Handbook | www.smmehandbook.co.za 6
10011632 Sasfin - Bank SMME Handbook 210X148_2.indd 1 2019/03/22 17:19
Bank
outside
the box.
Whether you’re a plumber, doctor, accountant,
craftswoman, fintech, musician or magician, our
business banking platform has all the tools you
need to take your business beyond.
With user-friendly features like payroll, invoicing,
analytics, direct-feed intergration into Xero and more,
Sasfin B\\YOND gives your business the edge.
To find out more, visit sasfin.com, give us a call
on 0861 SASFIN, or speak to your accountant.
10011632 Sasfin - Bank SMME Handbook 210X148_2.indd 1 2019/03/22 17:19
TWEET
TWEET
EDITOR’S NOTE TWEEtEd
ROI in a digital economy
POSTOST
The digital world is exploding, and that is today?
TERRIFIC news for the small business sector.
No longer are small businesses hampered by
the cost of entry to the best marketing avenues.
Up until a year or two ago, much of the world’s
marketing focus was still centered around print P
and broadcast media, along with some outdoor, Posted to Facebook
door-to-door and e-mail marketing.
Many small business owners who had their in the last few hours?
finger on the pulse of marketing trends (or who
were fortunate enough to be guided by someone
with their finger on the pulse) have been Or shared on LinkedIn?
benefitting from the power of internet marketing,
but the rapid rate that the internet, social media
and the world of apps have been evolving at has
dramatically changed the marketing landscape IF SOCIAL MEDIA IS SLIPPING
over the past year in particular.
TO DO LIST
Today a small business can get far better If you have no choice but to delegate this SHARESHARE
bang for their marketing buck than the big You, yourself! You are the best person to be
players with their huge marketing departments, driving these messages online but, of course, you DOWN THE LIST, THEN YOUR
external suppliers and mammoth budgets. The might not have the time to do all the legwork,
✔
internet creates opportunities to niche your even though you are the best person to do this, ■ CASH FLOW
marketing messages direct to the most relevant as you are your business. BUSINESS IS MISSING OUT
individuals and companies. The benefit of this ■ CLIENT SERVICE
✔
is that it cuts out all the marketing clutter. No function then, at least, you should have educated
longer are we all receiving masses of marketing yourself to know what the best tactics and trends ON THE GREATEST FREE
✔
messages that are not relevant to us, but this are in this new world of online and social media ■ NEW BUSINESS
narrowing of focus also saves businesses marketing.
because their own marketing spend is now being Most of this information is available free ■ STAFF ISSUES
✔
directed straight at their target markets. This online, so take the time to dig in and learn. MARKETING OPPORTUNITY
ensures that they get a better ROI which, in turn, There is a world of opportunity waiting for
means they become more profitable. small businesses to grab through clever online ■ SOCIAL MEDIA
marketing strategies and content creation but, as OF THE CENTURY.
Hopefully, that translates into an improved with every step of your journey to date, it’s going
economy. to take a bit more hard work.
What this all means is that, as a small business The ROI, however, will be exceptional. Good
owner, you can’t delegate knowledge of this luck … and happy learning. free 20-minute phone consult FOR all SMMES
marketing world. You need to Google and
YouTube how to market your business online. GILL LEWIS, Editor
SMME Handbook | www.smmehandbook.co.za 8
call gary on 082-065-8569
TWEET
TWEET
TWEEtEd
today?
POSTOST
P in the last few hours?
Posted to Facebook
Or shared on LinkedIn?
SHARE
SHARE
IF SOCIAL MEDIA IS SLIPPING
TO DO LIST
DOWN THE LIST, THEN YOUR
■ CASH FLOW
✔
■ CLIENT SERVICE
✔
ON THE GREATEST FREE
■ NEW BUSINESS BUSINESS IS MISSING OUT
✔
■ STAFF ISSUES MARKETING OPPORTUNITY
✔
■ SOCIAL MEDIA OF THE CENTURY.
free 20-minute phone consult FOR all SMMES
call gary on 082-065-8569
E -C OMMER CE
The future of
e-commerce:
The challenges of
scaling businesses
At present, e-business in Africa remains a
challenge. It may be better than it ever has
been, but the truth is that lower literacy and
internet penetration levels continue to limit
the growth on the continent.
11 www.smmehandbook.co.za | SMME Handbook
E -C OMMER CE
The lack of internet penetration through Africa track the regulation - or lack thereof - across
will not remain the status quo for long, as infrastructure issues, handling of cash, wallets
smartphone proliferation increases, data costs and alternative payment methods that they
decrease and usability improves. Wallets, now are not accustomed to. They want a one-stop
commonplace, are an excellent example of this, payments provider to get them to these markets
bypassing the continent’s challenges around so they don’t have to deal with the complexities.
depositing, withdrawing and transferring cash, Karen Nadasen, Country Manager of PayU
as well as buying airtime and electricity. South Africa, the country’s leading payments
provider, explains that the role of a ‘payments
Africa represents one of the world’s finest intermediary’ will be critical, having already
untapped markets, pointed out by MTN’s dealt with the complexities in these countries
Herman Singh during his presentation on and created its own relationships, partnerships
‘Scaling in Africa’ at the recent edition of and agreements but underpinned by the
Africacom. Unpacking the success story that credibility, infrastructure and proven results of a
is Jumia, Africa’s largest online marketplace, global brand.
he illustrated that the growth of the platform “Global Enterprises do not have the
across the continent is comparable to, if not time to make mistakes,” says Nadasen.
more impressive than, In addition, 41000 active “Hyperlocalisation means we are knowledgeable
merchants in the ecosystem offered over 6.1 about the markets we are in and ‘speak’ the
million products ranging from hotels, to real local language. This is particularly important
estate, jobs, TV, airtime, restaurants, flights and with regards to licensing. As we know, some
more. markets in Africa are not as regulated as SA, but
“Africa’s e- and m-commerce opportunity this is starting to change. Our partnerships in
has a potential client base of 400 million SA, Kenya and Nigeria have been an essential
internet users, and a rapidly emerging middle- springboard as we branch out through these
class expected to grow by 54% between 2020 ‘hubs’ to cover the rest of Africa.”
and 2030 and decreasing data costs in some The opportunities will be compounded as
countries - there have been 43-45% decreases in Sub-Saharan smart device growth is now the
the lowest data plan in both Egypt and Nigeria fastest in the world. As literacy levels increase,
between 2016 and 2017,” comments Singh. amidst Africa’s new dawn, digital services such
Additionally, in building out financial as microfinance will improve lives and enable
ecosystems - stores that offer a diversity of people to do business, while marketplaces will
products or even online “malls” - Africans will bring products and stores to people so they can
no longer be limited by their location, as long make purchases – assuming enterprises like
as logistics and payment issues can be solved. Jumia continue to expand the delivery network
Singh stated that Jumia has created a network and solve logistics challenges.
of over 4000 logistics partners in order to work “From an African perspective, we use
across the 15 countries they had been working our single integration point for merchants
in. And payment by cash at this stage was still to springboard into Africa using our global
commonplace, causing significant challenges. infrastructure - leaders in emerging markets in
With respect to payment, enterprises on the India, Eastern Europe, and Latin America - and
continent are seeing the opportunity as well then hyperlocalising the expertise through
as global merchants now eager to be active our groundwork in Africa, offering cross-
in Africa, but need to understand and fast- border execution on payments, compliance
SMME Handbook | www.smmehandbook.co.za 12
E -C OMMER CE
Karen Nadasen, PayU South Africa
and fulfilment. It’s our experience across these fulfilment and logistics, merchandising, location
emerging markets that has allowed us to deliver and maximising customer insights.
a UX that works in these types of market, Research firm Statista estimates that the
keeping it simple and accessible.” ecommerce sector in Africa’s 54 countries and
In his “What it takes to win” conclusion, 1.25 billion people generated $16.5 billion in
Singh outlined why Jumia has been Africa’s revenue in 2017 and forecasts revenue of $29
most successful online case study to date. He billion by 2022, despite internet penetration
attributes the company’s explosive growth to lying at only 35 percent. The potential most
10 factors - establishing a community of users, certainly exists.
building trust, access to the channel itself, a
robust payment and micro-payment partner, www.payu.co.za
13 www.smmehandbook.co.za | SMME Handbook
SUSTAINABILITY
Raising questions on
Responsible Capitalism
Technology change and climate change are two of the biggest driving
forces in the world today, but the corporate world and small business
need to play their cards responsibly, writes Andy Wales
We’re seeing an unparalleled amount of emissions reduction. For us at BT, we calculated
change to adapt to over the next few decades, we would need to reduce our carbon emissions
and nothing is as important as the huge by 87% by 2030 and by 100% by 2045. This
task of limiting global warming to 1.5°C. The puts us on track to be a Net Zero business well
business community will be key to achieving before 2050, which scientists advise is the only
that change, but it will need a different way to avoid the most catastrophic effects of
kind of capitalism. Climate leadership climate change.
is a fundamental part of the responsible This is where technology plays a surprisingly
capitalism that’s needed. pivotal role – we can harness the technological
change we are seeing to support our climate
Last year’s UN report brought the dangers action goals. The ICT sector is unlike other
into sharp focus: we have eleven years to keep sectors in two key ways. Firstly, it is reducing its
temperatures to only a 1.5°C rise by the end of carbon impact year on year. The world’s leading
the century. If we don’t, the consequences will technology and communications companies such
be disastrous. Scientist predict our coral reefs a Google, Apple, Amazon and here at BT, have
will be completely wiped out. We’ll have many committed to 100% renewable electricity by 2020.
more days of heatwaves, causing heat-related BT is already 100% in the UK, and this includes EE
deaths and more forest fires. Ten million more with its 30m mobile phone customers.
people will be affected by rising sea levels by The results can be seen: the digital sector’s
2100 at 2°C of warming than 1.5°C. combined emissions declined about 15%
The extremes of weather last year showed between 2010 and 2015. And the projection is
just how quickly our climate is already that emissions will be less than 2% of global
changing: we had incredible temperatures of carbon emissions by 2030. This is good for the
more than 30°C in the Arctic Circle. There bottom line – a combination of switching to
were wildfires burning across Scandinavia, and renewables and energy efficiency measures has
Africa experienced its hottest ever recorded saved us £250m at BT over the last decade.
temperature of 51°C in Algeria. We can expect The second key difference, and this is
these records to continue to be broken if we probably more important, is that the digital
don’t take action. sector helps other sectors be more sustainable.
So, what does it mean to be a leader on Take renewables for example. With intermittent
climate action? Put simply, it means aligning supply, we need a smart grid to balance that
your business model to a 1.5°C world. This supply with the demand for energy. Connected
means having a relentless focus on carbon technologies make this all work.
SMME Handbook | www.smmehandbook.co.za 14
SUSTAINABILITY
Andy Wales
The same with the transport sector. with their supply chain. Speaking with suppliers
Matching travellers with the quickest modes about your sustainability goals can help to
of transport at the right time can help avoid speed up the transformation needed. Every
gridlock in cities. Recent research shows year at BT we invite our key suppliers to a
connected technologies could take 20m cars off competition we call ‘Designing our Tomorrow’.
the road by 2025. Technology will make electric This encourages them to innovate to make
and autonomous vehicles the norm, reducing our products more sustainable. If our peers
air pollution, making our streets safer, and are asking for the same changes, then it sends
saving lives. signals to suppliers to invest in new solutions,
A recent study by GeSI, a global NGO creating new sustainable markets. The recent
focussed on sustainability in the technology focus on plastics and alternatives is a perfect
sector, showed the extent of what technology example.
could achieve. For every tonne of carbon As 2020 draws closer, and the time we have
emitted by the technology sector, up to 10 to act starts to dwindle, responsible capitalism
tonnes could be saved in other sectors in will be shown by the businesses that adapt.
the economy. They’ll need to adapt to the new technologies
As WWF recently reported: ‘The biggest role that are being innovated, and use technology
that the digital sector can play is in contributing to adapt their business models to a sustainable
effective solutions to other sectors, influencing future. Those that work in collaboration with
consumer and producer behaviour and leading others, such as their suppliers, will find that
the transformation of our energy systems.’ adaptation much quicker, easier and more
Technology has the power to help us fruitful for their business.
innovate our way to a sustainable economy.
This isn’t just technology use within your Andy Wales is the Chief Digital Impact &
own business. Most businesses could do more Sustainability Officer of BT
15 www.smmehandbook.co.za | SMME Handbook
TREND S
Skills: the currency
of 21st Century
Africa Internship Academy’s (AIA) major plan this year is to set up an
‘Africa Youth Skills & Data Badge’ across the continent where young people
will be required to undergo a particular training to get certification.
The AIA is a successful youth employment either connect them with employers looking
accelerator in Ghana that provides work for entry-level talents or incubate them to
readiness and entrepreneurship programs for launch their idea through the organisation’s
secondary and higher education students as Business Starter Pack Program.
well as graduates to gain entrepreneurial and
employability skills. Following this stages, the Its ideas and methods have won the Social
academy proceeds to assign mentors to and Enterprise Award in 2017 as well as the
SMME Handbook | www.smmehandbook.co.za 16
TREND S
is in creativity and innovation skills, poor
social networks, limited resources to look for
work, poor attitudes of graduates towards job
opportunities, and unavailability of funding
capital for entrepreneurship.”
Trainings, internships, mentorships as ideal
tools to bridge gap between unemployment and
employment in Africa. To make change happen,
Emmanuel and his co-founders decided to
launch AIA in 2016, with a combination of work
training, internships and mentorship.
They decided to implement a program
called Work Integrated Learning Program
(WILP), a practical and effective way of
providing relevant and progressive skills to
young people. According to Emmanuel, the
ultimate goal of the program was to make
youths, especially to be work-ready.
“The goal is to make them work-ready. We
teach them about design thinking, emotional
intelligence in the workplace, financial literacy
skills, entrepreneurial skills, presentation/
communication skills and organizational
skills. The training is then complemented
with internship placements in companies with
active mentoring, offered by 50 companies and
150 experienced mentors,” said Emmanuel.
recognition of the African Union as one of This was a golden combination of training
Africa’ best tools for youth development. followed by internships and mentoring.
Africa holds a very high rate of youth According to Emmanuel, the results of
unemployment. In Ghana, about 120,000 young the students they worked with have been
people graduate from various institutions with remarkable. Out of the 195 fellows who
about 10% getting employed after the first year have graduated from the program, over 32%
of completion. Over 16% will never work in have moved into self-employment, 28% are
their lifetime, yet every year, thousands of job now full-time working staff in various
vacancies go unfilled. Employers have trouble corporate organizations, 11% are working
finding people who are ‘ready for work. part-time, 9% are volunteers, 15% are working
“Youth unemployment in Ghana is basically on contract and 5% still in school. This is an
not because there are no jobs in Ghana”, incredible impact.
says Emmanuel Leslie Addae, co-founder As a youth impact social enterprise,
of the Africa Internship Academy (www. entrepreneurial and employable skills are
AfricaInternshipAcademy.com). “There is the perfect keys to unlock job opportunities
a mismatch between the jobs available in in Africa and, as such, all their programs are
the country and the young people who are tailored to shape and develop these skills
desperately searching for work. The gap in people.
17 www.smmehandbook.co.za | SMME Handbook
TREND S
TODAY’S THE DAY TO
GET THE RIGHT FINANCIAL ADVICE
FOR YOU AND YOUR BUSINESS.
Emmanuel stresses that they usually give his partner, again came out with an innovative
more attention to the 21st century skill-set. and the easiest job search platform on the
“There are several, such as communication continent. Talentsinafrica is currently on the
skills, networking skills, research skills and rise in Africa, giving opportunities to many
team work skills. Teamwork forms an integral people to find their unique talents, skills, and
part of life. One must be taught how to abilities and find jobs that complement their
integrate properly with people of different skills perfectly.
background and orientation. Interaction, “We observed that training and equipping
collaboration, negotiation and compromise are people with skills was very good, but we
some essentials of an excellent teamwork.” needed an additional platform that could
Emmanuel takes pains to highlight that connect these people with active recruiters
AIA programs also teach young people across Africa. We realized we could utilize our
organizational skills, to properly plan tasks and numerous contacts we have over the years got.
to learn time management. Since we have direct contacts with active entry
“We also hope to spark creativity. We talent recruiters across Africa, we decided that,
believe a creative mind triggers success and after training people, we will give them the
excellence,” he said. opportunity to sign on a platform that could
Since the academy was founded, its connect them directly to these recruiters in
programs have been very consistent in the Africa. This was how TalentsinAfrica.com came
years. According to Emmanuel, sponsorships about,” added Emmanuel.
are the main source of survival over the years. “We launched the platform in Ghana,
“Finding partners and sponsors have not Rwanda, Kenya, Nigeria, Tanzania, Senegal
been easy. The first partner we had for the and Cote D’ivoire. We believe that a workable Partnering with Old Mutual means working together, for your success.
AIA internship program was Ecobank, they solution in Ghana can easily work in other part
agreed to host our fellows after the four weeks of Africa since we share similar problems. It is Old Mutual has the right solutions to address the needs of your business, as well as the life you’ve
integrated learning program. As I speak to you our aim to have presence in every part of this created for you and your family, the investments you’ve worked so hard to build and what you’ll leave behind
we have about 50 organizations that host our continent, but we want to pilot it in these six when you’re not here anymore.
fellows for additional one month internship at countries first.” Short-term insurance for commercial,
their various organizations. Apart of training The academy’s major plan this year is to corporate and personal needs.
young people, the other major task is to find set up an ‘Africa Youth Skills & Data Badge’ Trade credit insurance against
partners who will fund as well as host the across the continent where young people will non-paying customers.
interns after the program. We leverage on our be required to undergo a particular training YOU AND Enterprise financing and business support
YOUR
relationships with corporate companies to to get certification. This initiative sought to BUSINESS for entrepreneurs.
support the program. With regards to finding create a skillset mindset and attitude among
mentors, we normally do Mentors call, where higher education students in Africa. This is an Affordable employee retirement savings,
group death and disability benefits.
we get people to volunteer to mentor fellows.” important motto of AIA: Skills have become
In Africa, finding a job is not as easy as it the global currency of the 21st century’!” Personal savings, income protection, business
assurance, succession and estate planning.
may seem, irrespective of one’s skills, abilities,
or experience, they still are unable to find jobs, People Initiative Foundation - To get the right financial advice for you and your business speak to your financial adviser or broker
those who are fortunate enough to land one, www.peopleinitiativefoundation.org or visit www.oldmutual.co.za/smme for more info.
are probably not a good fit for the job, hence Africa Internship Academy - @OldMutualSA Old Mutual South Africa
the poor output of services. Emmanuel and www.AfricaInternshipAcademy.com
SMME Handbook | www.smmehandbook.co.za 18
Old Mutual is a Licensed Financial Services Provider
TREND S
TODAY’S THE DAY TO
GET THE RIGHT FINANCIAL ADVICE
FOR YOU AND YOUR BUSINESS.
Partnering with Old Mutual means working together, for your success.
Old Mutual has the right solutions to address the needs of your business, as well as the life you’ve
created for you and your family, the investments you’ve worked so hard to build and what you’ll leave behind
when you’re not here anymore.
Short-term insurance for commercial,
corporate and personal needs.
Trade credit insurance against
non-paying customers.
YOU AND
YOUR Enterprise financing and business support
BUSINESS for entrepreneurs.
Affordable employee retirement savings,
group death and disability benefits.
Personal savings, income protection, business
assurance, succession and estate planning.
To get the right financial advice for you and your business speak to your financial adviser or broker
or visit www.oldmutual.co.za/smme for more info.
@OldMutualSA Old Mutual South Africa
19 www.smmehandbook.co.za | SMME Handbook
Old Mutual is a Licensed Financial Services Provider
MENT ORSHIP
Scaling up your mentorship
A ‘scale-up’ needs a different sort of mentorship
to a start-up, explains Wayne Hartman
Leading an organisation can be lonely, certainly be limited in capacity.
so having a coach or mentor makes a real The new hires aren’t as close to the founder,
difference. This is especially true when you are so deliberate steps have to be taken to maintain
an inexperienced CEO in a small start-up or the culture of the organisation. Energy levels
a fledgling scale-up. No surprise! What is not dissipate as the organisation grows and the
well understood, however, is that the type of strong egos that created mojo in the start-up
coach or mentor that is needed shifts as you phase now start causing problems for people
move from start-up to the scale-up. One size who joined to do a job and they, for the most
definitely does not fit all, in this case. part, aren’t interested in the quirks and foibles
of eccentric founders. ‘Other people’s money’ is
According to Wayne Hartman, lead coach and now involved, and a more balanced approach to
mentor in the 10X-e Accelerator Program, the risk-taking is required to satisfy external funders
typical start-up CEO is in a race to develop the or investors.
company’s business model while scratching
together the funding to keep going. Two very different stages with
“They are experiencing technical and very different solutions
financial problems on a day-to-day basis and “An environment of risk-taking focused on
everyone does everything. There are wonderful technical problems shifts to a more conservative
energy levels, mostly from that founder to a world where managing people is the biggest
small team enthused about the mission amidst problem facing the CEO. What makes for
the daily chaos that the founder and team are success in the cases of a start-up is often a
trying to order.” hindrance in the case of a scale-up business.
The founder CEO needs help in navigating the
What does a scaling business look like? ocean between the two and surviving in the new
“Once the business model is nailed down, it is world - one that is often alien! These differences
time to grow, to scale the business and you can’t are often not understood due to a lack of prior
scale chaos. The chaotic world of the founding experience. A good coach and mentor helps
team begins to change because if you scale the with the realization of the differences and the
disorder, it will eventually collapse under the adaptation processes,” adds Wayne.
weight of complexity,” says Wayne. While he believes the attributes needed in
Thus, order and systemisation become the a coach / mentor do shift, there is much that is
focus, allowing a cut-and-paste approach with common to both environments:
replicable processes. Technology is needed to Chemistry and a sense of humor need to fit
run the business, not just deliver the product. together. Building a business is stressful and
An organisation has to be built using specialists you, as CEO, need to get on well and be able to
instead of your family and friends who might feel comfortable with sharing your highs as well
represent a cheaper cost option but will almost as your lows;
SMME Handbook | www.smmehandbook.co.za 20
MENTORSHIP
As a founder CEO, you are likely to be a • An ability to inspire because the founder
strong-willed individual who believes you know CEO environment is a lonely place and you
more than you actually do. Persuasiveness will need encouragement; and
and persistence are needed from a coach to • Courage to step away if the coach can no
get the right outcomes for the growth of the longer add value!
business as well as for the personal growth of
the individual leader; So, a lot is common, but what changes from
Relevant experience. The coach and mentor start-up to scale-up? What should a coach or
needs to have seen what good looks like … and mentor have in their toolbox for this specific
bad! Scars and the associated war stories add to stage of business growth?
that credibility, so when looking for a coach and A bias towards processes is critical,
mentor look for someone who has spent time in pushing the CEO to anchor processes each
the trenches; time a problem gets solved, resulting in big
Empathy balanced with honesty. When wins. Map the key processes and define what
things are a mess that message delivered by the good compliance looks like and how it can
coach has to land in a way that is tough on the be measured;
subject but soft on the CEO; Understanding how systems and
• Asking questions rather than giving answers, automation make scaling easier will help
being willing and able to shift from big the coach encourage less manual ways to
picture to detail when needed; make things happen. Operations become more
• A sense of realism and an understanding of predictable and delivery more reliable. You
what is achievable; cannot get happy customers at scale with lots
21 www.smmehandbook.co.za | SMME Handbook
MENT ORSHIP
TOGETHER ON THE
of manual processes; them, but I just don’t see what, for example, my
Efficiency and value-for-money make psychologist friend Steve does. Sometimes what
an appearance. Cash demands ramp up he sees is the key to solving a problem. ROAD AHEAD.
significantly as you grow. Low cost, DIY The same goes for operating financial
solutions vs spending money on comprehensive controls. I get 90% done but my good friend
solutions. A corporate background will certainly Henry is my go-to guy when the business needs
equip the coach with many examples of over- intensive financial care.
engineering systems and bureaucracy. You want The people side is often the biggest
the structure without the red tape, just enough shift. Culture is a crucial element in scaling
to get the job done efficiently in a resource-light effectively! The ego-driven founder CEO
environment; cannot be a d*ck anymore, especially when the
The coach needs to know a lot more about business footprint spans numerous countries.
many more subjects to be able to coach and You need to guide movement in this space! It Growing the economy requires scanning the road ahead.
mentor in a scale-up environment. From agile helps if the coach and mentor has managed Horizon 2030 is a strategy that will turn SANRAL
start-up, industry and funding know-how to culture elements in businesses themselves. into an organisation that better meets the needs
a wider range of knowledge from strategy Understanding the type of people needed for of the South African people and economy. We
development and execution, broader financial, the game plan and different roles is important. I are reviewing our operating and funding models
customer and stakeholder management, sales have seen conservative managers (not leaders) as well as ensuring that our Transformation Policy
& marketing, operations, to systems, processes destroy an entrepreneurial culture in a matter of prioritises ownership, equitable access, community
and people! months. On the flip side, entrepreneurs need a empowerment, entry into rigid supply chains
The coach and mentor cannot possibly steady hand in supporting the structures of and SMME development and support in the
know every topic in sufficient depth to guide the business. construction and related industries. We are
a scale-up organisation through the detail In my experience, the combination of an working together to enhance our core functions
of every change needed. But the coach will entrepreneur CEO and a more conservative and drive greater effi ciency.
have a network of specialists for support and CFO works in this case. Needs will shift, and
judgement to know when to call on them or the coach will need to guide organisational For more information and to comment on
refer them elsewhere. I am an experienced transition. our Horizon 2030 strategy, email us at
generalist who knows lots about lots of things, “Above all else, the coach and mentor have [email protected].
but not everything about everything. to find a way to make the process fun – both
The coach needs a healthy dose of mentor and your mentee need to look forward To comment on our Draft
humility and the ability to judge when they to your interactions,” concludes Wayne. Transformation Policy, email us at
need someone with more knowledge than [email protected].
themselves. Personality and habit profiles would Wayne Hartmann is the founder of H2 Business
be an example in my practice. I have worked Consulting and a lead coach and mentor in the You can also visit our website or write
with them for many years and can interpret 10xe Accelerator Program. to us at PO Box 415, Pretoria, 0001.
We also accept hand-delivered
comments at our regional offi ces in
Pietermaritzburg, Port Elizabeth,
Western Cape or Pretoria (Menlo Park).
(See website for addresses.)
SANRAL. Beyond roads.
An agency of the Department of Transport.
SMME Handbook | www.smmehandbook.co.za 22 Reg. No. 1998/009584/30
1804 Sanral Horizon 2030 layouts Final A5.indd 1 2017/11/01 9:15 AM
STRAP
TOGETHER ON THE
ROAD AHEAD.
Growing the economy requires scanning the road ahead.
Horizon 2030 is a strategy that will turn SANRAL
into an organisation that better meets the needs
of the South African people and economy. We
are reviewing our operating and funding models
as well as ensuring that our Transformation Policy
prioritises ownership, equitable access, community
empowerment, entry into rigid supply chains
and SMME development and support in the
construction and related industries. We are
working together to enhance our core functions
and drive greater effi ciency.
For more information and to comment on
our Horizon 2030 strategy, email us at
[email protected].
To comment on our Draft
Transformation Policy, email us at
[email protected].
You can also visit our website or write
to us at PO Box 415, Pretoria, 0001.
We also accept hand-delivered
comments at our regional offi ces in
Pietermaritzburg, Port Elizabeth,
Western Cape or Pretoria (Menlo Park).
(See website for addresses.)
SANRAL. Beyond roads.
An agency of the Department of Transport.
Reg. No. 1998/009584/30 23 www.smmehandbook.co.za | SMME Handbook
1804 Sanral Horizon 2030 layouts Final A5.indd 1 2017/11/01 9:15 AM
SEDA PR OFILE
Dimzique Jewellery
Yvonne Manyiki is the owner of Dimzique Enterprise,
a bespoke jewellery manufacturer that offers individual
items made with unique, modern African flair.
Tell us about Dimzique Enterprises? I spent most of my childhood life in Lesotho
Dimzique Enterprise creates unique designs which is where I attended primary school
of earrings, bracelets, necklaces, rings, barefoot education and completed my high school
sandals, hand jewellery, and other fine bead education in Ficksburg. I am currently enrolled
work combined with leather. in the Start and Manage a Small Business Short
course with University of Cape Town.
What inspired you to start your business?
My mother was very creative and from early Share with us the story of how you started
age I was inspired by her work, and it was also a your business?
way to demonstrate my creativity. Secondly, the I came to Cape Town in 2002 and my first job
rising cost of gold has opened up a gap in the was working on one of the market stalls in the
market for more affordable costume jewellery. city. I saved money and worked hard because I
I wanted to take advantage of this gap and wanted to start my own business and this took
provide customers with jewellery pieces that are a long time but eventually I was able to start
stylish and elegant without being excessively my own business. In 2006 I registered a sole
expensive. proprietor company called Yvonne Designs
I am a 35-year-old mother and wife, I was and the company was buying and selling ladies
born in Ficksburg, a town at the border of South accessories such as jewellery, watches, bags and
Africa and Lesotho, in the Free State Province. hats, and my first stall was at Top Deck in Cape
SMME Handbook | www.smmehandbook.co.za 24
SED A PR OFILE
Town Train Station. silver findings, for weaving and threading we
From 2007, I started to make my own wire use fish line for added durability and rigidity to
and beaded jewellery, and I found a good spot the product. Where needed, a strong beading
to set up my market stall at Riverside Mall in thread is used to enhance flexibility.
Rondebosch. I ran this stall until 2011 when a
mall renovation and the change of management How would you define your target market?
forced me to find another location to operate Middle class women between 20 to 60 years of
from. I took a break and in 2012 I attended age across all race and religions, and including
many workshops at the Cape Craft & Design locals as well as tourists.
Institute (CCDI), and later I learned how to do
weaving and beading with seed beads through What was the biggest lesson you have
a combination of a great beading book and learned since establishing your business?
YouTube videos. I also did a few beading classes Never go into business unless you are willing to
and in 2013 I registered a new company called part ways with your hard-earned cash. Starting a
Dimzique Enterprise. business is not cheap, one loses a lot of money
before beginning to realize the fruits.
How did you come up with the
name for your company? What plans or goals do
In 2013, I registered a new company called you have for the future?
Dimzique Enterprise. The name Dimzique does We hope to supply boutiques and be able to
not have a meaning, it is the combination of the showcase our products in well-established
first three letters of my name and my spouse’s local and international exhibitions, as well as to
nickname - Dimpho and Mzandile (nickname export our products.
Mzi), and then we added “que” at the end to
complete the name. The company steadily What do you enjoy most
developed a good client base and has been about the work you do?
growing ever since. Seeing my clients happy. Doing what I like and
We showcase our products at various Craft doing it the best way. Being able to create jobs
Food Markets in Western Cape, such as the and opportunities for people who are willing to
Country Market, Lourensford, Kirstenbosch and learn.
other established markets like Kamers, Decorex,
Cape Town Jazz Festival, and so on. We are now Advice for other women entrepreneurs?
members of Proudly South African and also Have faith, be self-driven and be a risk taker.
part of Tsogo Sun Entrepreneurship program Follow your passion, not the money. Don’t
and our products are available online at www. be an island, surround yourself with people
dimzique.com. who believe in your dreams, find a mentor or
accountability partner such a spouse or family
What type of products do you produce and member and friends. Don’t rush into earning
what material do mostly use? a salary from your business, but rather take
We design a variety of unique, high-quality time in building the brand by re-investing your
jewellery pieces such as necklaces, bracelets, earnings back into the business. If you can
rings, earrings, barefoot sandal and hand borrow money from friends and families, do so,
jewellery. Our products are made of glass pearl the bank must be the last resort.
beads, crystal beads, freshwater pearls, wood
and seed beads. We use nickel free and sterling www.dimzique.com
25 www.smmehandbook.co.za | SMME Handbook
HUMAN RES OUR CES
Data the new gold
in HR and payroll
departments
Data is set to become a key component of
every human resource strategy, and the impact
on small business could be massive.
This year, data will become an enabling Ian McAlister, General Manager of CRS
resource for Human Resources (HR) and Technologies, says that even though
Payroll departments to fundamentally many companies consider HR and Payroll
change how these critically important departments a necessary evil that keeps the
components operate inside a business. The cogs in the machine running, this will change
result will be more engaged employees that thanks to the benefi ts data will unlock.
help drive organisational growth. “It has become far too easy to view HR
SMME Handbook | www.smmehandbook.co.za 26
HUMAN RES OUR CES
and Payroll as a grudge component in future-forward technology. In some respects, HR
organisational strategy when the likes of and Payroll provide the bedrock on which the
artificial intelligence (AI), augmented reality, modern business is built.”
cloud computing, connected devices, and
the like are more exciting from a perception Overcoming compliance concerns
perspective. Yet, without these departments, no However, before one can hope to capitalise on
company can hope to make any inroads with data, HR and Payroll must remain cognisant of
27 www.smmehandbook.co.za | SMME Handbook
HUMAN RES OUR CES
regulatory aff airs and the evolving compliance to exclusively IT departments, the cloud is
landscape. The adoption of the Protection permeating virtually every aspect of
of Personal Information Act (Popi) and how business today.
organisations should manage the personal “This year will see Microsoft launching
data of customers will become even more two data centres in the country with Amazon
critical this year. following suit next year. Already, many
“Best eff ort is no longer good enough. When organisations are using the cloud. This
it comes to safeguarding data (whether it is will continue over the coming months with
customer, corporate, or employee), businesses businesses becoming less reliant on physical
can ill aff ord any mistakes. Financial fi nes and on-premise infrastructure. In many respects,
reputational damage can quickly snowball out this will also enable organisations to transition
of control. If anything, this focus on Popi should their HR and Payroll into a hosted environment
see HR and Payroll departments put serious centralising much of the job functions that
consideration into what they print, how often are typically spread out over multiple offi ce
they print, and why they print. Perhaps we will locations.”
fi nally see the paperless offi ce emerging in the As the year unfolds, companies who are
coming months.” open to embracing change in HR and Payroll
Along with this is that small matter of tax will gain much-needed competitive advantage
and ensuring all the relevant fi lings are done on over those who do not. Of course, organisations
time. As is evident by reports from last year, the do not blindly have to embrace every trend, but
eFiling system is under increased pressure and select the ones most relevant to their immediate
there seems to be the distinct possibility business needs.
of it crashing. “Data must underpin everything an HR and
“That saying about death and taxes hold Payroll department does. The digital business
even more true in 2019. Given the complexities needs to eff ectively integrate and analyse the
of corporate governance, salary structures, value data can bring for not only its employees
and even the momentum generated by the gig but its strategic outlook as well,” concludes
economy, decision-makers must give serious McAlister.
consideration to how returns are fi led and At Nice Beard Studios, our superpower is
when they do so.” www.crs.co.za
meticulous attention to detail. We strive to
Building data momentum deliver innovative and precise outcomes that
While initially thought to cause disruption of
the negative kind (think job losses), AI presents make our clients smile. Whether you are after a
business with fresh opportunities to revitalise
HR and Payroll. AI can deal with calculation and simple brand refresh, an entire corporate
data tasks with aplomb leaving employees to
focus on delivering better strategic value. image overhaul, or a full-blown video
“AI can access, analyse, and extract value production, we add the nice touch.
from the treasure trove of data companies have
at their disposal. It can also more accurately
determine exemptions on taxes, insurance, and
so on to give more money back to employees.”
Part of the move to AI entails delving
into cloud computing. While once relegated
FOR MORE INFORMATION OR TO TAKE A GANDER AT OUR PORTFOLIO GIVE US A CALL:
SMME Handbook | www.smmehandbook.co.za 28 Email: [email protected], [email protected] | Whatsapp/Cell No: +27 71 244 0681
Website: www.nicebeard.co.za
TRAVEL
Getting in
their face
For all the innovation around virtual
conferencing and online meetings,
there’s still nothing that can replace
the value of face-to-face contact
when growing an SME business.
Business travel is an essential part of growing Negotiate deals with
any small to medium-sized company as hotels and airlines
it allows business owners to expand their Grunewald explains that generally SMEs don’t
horizons and forge new contracts. travel often enough to have set contracts and
negotiated deals with suppliers such as airlines
The downside, however, is that business travel and hotels. However, negotiating preferred
also represents a large part of any company’s agreements can be a smart way to reduce
expenditure, making it an especially daunting company expenses.
challenge for SMEs for whom every penny “By using a TMC that specialises in SME
counts. Travel expenditure often features among travel programmes and has global buying
the highest expenses for an SME, after salaries, power and partnerships in place with suppliers,
rent and IT expenses, because investing in companies can leverage preferred rates that
travel is essential for the company’s growth. we have negotiated, and our relationships
Andrew Grunewald, Flight Centre Business with suppliers to get special benefits, such as
Travel Brand Leader, shares some tips for SMEs avoiding having to pay up-front deposits when
on managing their corporate travel: renting a car,” says Grunewald.
SMME Handbook | www.smmehandbook.co.za 30
TRAVEL
Remember: booking cheapest doesn’t says Grunewald, companies often fail to realise
always equal saving costs that ‘small’ extras, such as ticket change fees,
“When you are running a business and trying early check-in, taxes and visa costs can drive
to organise your own travel, you’ll consider the up expenses considerably. If your company
immediate implication of cost, without thinking has significant extra spending on items such
about how that decision could have an impact as parking and WiFi, you should consider
down the line and cost you and your business a negotiating to include these in the room rate.
whole lot more,” adds Grunewald. Alternatively use a TMC with the buying power
A practical example of this is booking the to have these deals in place already.
cheapest airfare or the cheapest hotel room, he
says. “A good travel expert will work with you Timing is everything
and understand your company well enough to Did you know some hotel room rates fluctuate
advise when you would be better served with a over 10 times a day? The way in which hotels
more flexible ticket if you are prone to changing manage their inventory means there can be
your travel plans frequently,” says Grunewald. multiple rates for the same hotel room. Searching
When it comes to SME business travel, through multiple websites to try and source the
31 www.smmehandbook.co.za | SMME Handbook
TRAVEL
best rate can be time-consuming, and there are
no guarantees you are finding the best deal.
Grunewald explains that FCBT employs
a Global Hotel Programme which actively
searches multiple websites and hotel deals
across our global locations to continually look
for the very best accommodation rates. He says:
“This means your TMC can still come in at a
competitive rate, regardless of whether or not
the hotel’s rates are fluctuating.”
For flights, the time of booking can also
make a considerable difference on your bottom
line. Says Grunewald: “You can save up to 21% of
your travel spend by simply booking flights in
advance. In fact, business travellers can pay up
to 200% more for airfares purchased one day out
from travel.”
Keep track of what you’re spending
You can’t hope for savings if you don’t
understand the scope of your total travel spend,
from significant expenses to smaller items
that fly beneath the radar, but which add up to
substantial amounts, such as extra baggage fees
or airport parking.
When employees travel to meet colleagues
or clients or attend conferences or trade shows,
they incur expenses – a business dinner here,
an Uber fare there. The link between travel
and expense management is fundamental and
natural, yet few companies manage them as part
of a consolidated agenda.
Grunewald explains that one reason for
not rolling out an end-to-end programme is
that business owners often don’t realise just
what controllable costs these are, and how an Don’t forget to keep the travellers
integrated workflow generates savings at in your company happy
every level. “Often inefficiencies hide in In addition to the minefield of rules that
plain view,” he says. govern travel – from flight change fees to visa
Travel and expense management, or T&E requirements – travel is highly emotive. You’re
management, is about creating a framework dealing with people’s time and comfort, and
to incorporate travel and expenses under the their productivity, as a result, may be impacted
same banner of data management, streamlining negatively.
the travel booking, expense reconciliation and Grunewald explains: “If your business
reimbursement processes. traveller is responsible for closing an important
SMME Handbook | www.smmehandbook.co.za 32
TRAVEL
deal for the company, flying them on the red-eye Although it might seem counter-intuitive
the same morning instead of paying for a night to spend additional money to outsource your
in a hotel may be completely counterproductive company’s travel planning, enrolling the help of
and actually end up costing you money. This is a Travel Management Company that specialises
what the travel industry calls traveller friction. A in business travel could actually help you save
top tip for SMEs is not to skimp on travel to the a considerable amount of time and money and
detriment of their staff’s ability to perform. No help you manage your travel needs in a smart
matter what size your business, traveller friction and efficient way.
could end up costing you a great deal more than
what you think you initially saved.” www.flightcentre.co.za
33 www.smmehandbook.co.za | SMME Handbook
SEDA PR OFILE
Rea’Nubia
Rea’Nubia designs are a celebration of sophistication, strength, beauty and
elegance. Created by Nolitha Quma, the product range stretches from ready-
to-wear office fashion to imaginative evening and cocktail wear, as well as
tailor-made occasional pieces and a range of timeless Fashion accessories.
Tell us about the fashion desperately wanted to train women from South
produced by Rea’Nubia? African townships, women who were untrained
Rea’Nubia designs are a celebration of and unskilled but who I knew could be upskilled
sophistication, strength, beauty and elegance. to do the work for my brand and other brands
We are a clothing and fashion brand for men around, as that would offer them immediate
and women operating from my home in employment as well as future opportunities.
Khayelitsha. Our range includes ready-to-wear
for the home or office, imaginative evening How has the market responded to your
and cocktail wear, as well asto tailor-made offering of quality craftsmanship?
occasional pieces and a range of timeless Because my products are bespoke and I am
fashion accessories. from Khayelitsha - and my brand is not yet
well known - my market is very limited. Most
What inspired you to start your business? people want to wear a brand that is already well
I started producing fashion items in school known. In the space I live in it is so difficult
and the idea was that immediately after school to get people to buy into a new, local product,
I would work in the corporate world for a regardless of the quality of the product.
company such as Truworths or Foschini. I knew Cost is another factor, as it is not going to be
I wanted to start a business so my plan was that cheaper than other brands because everything
I would start a business after working in the is done here at my home. I don’t use cheap
corporate world for five years to allow me to labour overseas to do my sewing and I buy
make my mistakes and get my learnings done everything myself in smaller quantities which
in the corporate world so that I could enter lowers my margins, but the positive side is that
the small business world wiser and with more it also allows me to be flexible and able to react
money. Unfortunately things didn’t pan out as I quicker than the big retailers to sudden trends.
planned because I couldn’t get a job, so instead
I started the business straight away and had to What is the niche that your
learn as I went along. fashion items sit in?
I offer high quality clothing that is relevant
What were your aims in to the market now, today and that is on trend,
starting your own business? so that means I use good quality fabrics and I
The reason I start Rea’Nubia fashion was create authentic designs, but the brand is still
because I thought it was important to own largely unknown so people as slow to move to a
my own brand, but I also wanted to provide purchase decision at this stage.
employment opportunities by training my That is changing as I grow my brand
own seamstresses. That was the plan and I recognition and keep my products in the
SMME Handbook | www.smmehandbook.co.za 34
SED A PR OFILE
marketplace. Young professionals from other
parts of the country have responded well to my
products when they have been on sale at markets
in other parts of the country, with customers
from Joburg really taking a liking to my style and
what I have produced. My goal is to establish a
footprint in Joburg in the next year as I know that
I have a client base waiting there.
What lesson has this taught you about the
market demand for your fashion?
In Africa people want trends so I was convinced
no-one would want to buy my clothes, but right
now there is this consciousness that is going
around among African buyers that people want
to know who is making their clothes. So there is
that market out there, we just need to find it.
What is important is positioning in terms
of marketing and finding who these people are
and where they are. Another mistake I made was that I wanted
As Africans we just need to find where our my brand to be what I pictured in my head, so in
markets are and, when we find our market, the beginning I designed what I wanted to make
and people will start to buy when they see the and then I was surprised when people were
quality that we produce locally. not responding by buying my fashion. Then
I realised it was because it was not what the
What have been the challenges and market was looking for, so then I really started
opportunities of being a black woman to study my market and the kind of people I
owned company? wanted to attract by considering what people
Entrepreneurship on its own is not easy and I would want. That was a big mistake to just make
always say you have to have a dash of craziness assumptions about what the public were looking
in you in order to survive. It is tough, plain for in terms of fashion.
tough as it’s a journey less travelled and our The other mistake was not having a team
families don’t get it. I am the oldest of three behind me. A team is very important but as I
girls and I am expected to have a job and be didn’t have any funds I couldn’t get a team to
able to help out having come from the kind of help me so I exhausted myself - fashion is a
background that I come from and, as a black long process that is mentally and physically
woman, there are certain expectations of you. demanding.
I have since realised that I am my most
What mistakes have you made that others important resource and that, as the business
can learn from? owner, you are all that you have when you
I have made so many mistakes! I think pricing have not yet built up structures, so you need to
when I was ‘younger in business’ was a major take care of yourself and I didn’t do that in the
mistake as I just cut myself dry and I just bled beginning.
on the floor with my pricing. My mistake was
that I just wanted people to buy. www.reanubia.co.za
35 www.smmehandbook.co.za | SMME Handbook
TE CHNOL OG Y
Transparency
Disrupted
Technology may be disrupting the digital
frontier but it is having an equally disruptive
eff ect on how organisations engage with
people, writes Howard Feldman
Digital disruption has gone from the dark
tale of the digital monster that hides under
the business bed to a fact of business life.
The highway littered with the bodies of
organisations that didn’t listen to the noise
or pay attention to the change. According to
the Accenture Disruptability Index, 63% of
organisations are currently in the throes of
disruption but only 20% believe that they are
ready for it.
While some industries may be deeper in the
disruptive storm than others, all need to look
to how they can harness digital and really look
to inventive ways of engaging with it. With
technology continuing to evolve at a fantastic may not have turned belly up and died, but they
rate, it is simultaneously changing the way in have lost market share, reputation and customer
which the business operates. respect. These qualities may not sound like
Social media is one very strong case in point much but when damaged, they take a long
– it has empowered the customer and made time to repair.
the business accountable. This new level of Perhaps one of the biggest challenges that
customer engagement and communication has companies have to face right now is the move
spent the last few years fundamentally shaking from their ‘old world’ view, the one that has
the foundations of the business. Suddenly the them appearing as close to perfect as possible,
consumer has a voice and this voice has a very real to the ‘new world’ view. The organisation has
impact on sales, reputation and business growth. to accept that they can and will make mistakes
The companies that stopped, pivoted and and that these are potentially advantages and
communicated quickly with openness and opportunities. They can help the business keep
transparency were the ones that thrived. Those in alignment with the change that is sweeping
that continued to operate behind closed doors the world.
SMME Handbook | www.smmehandbook.co.za 36
TE CHNOL OG Y
Howard
Feldman
Mistakes, a willingness to learn and work with experts to help them. The ability to
transparency in an age where the things that remain transparent and communicate openly
were swept under the carpet are suddenly makes a huge diff erence in an increasingly
being exposed, is a golden ticket to customer suspicious world.
engagement and reputation management. Every organisation should take the time to
To this end, every organisation needs assess its customer base and make decisions
someone who takes control of their social accordingly. It is critical that they engage
media engagement and interactions. The with their consumers where they are most
most important factor is responsiveness and if active and in the most relevant ways. From
nobody is monitoring social media or has this reputation to engagement to transparency, it
as part of their role, then it is likely that balls is time for every organisation to disrupt how it
will fall and customers will notice. Companies communicates with its markets and customers.
also need a clear approach to transparency.
The parameters around it need to be defi ned. Howard Feldman is a businessman,
If there isn’t clarity on this, then they should philanthropist and social commentator
37 www.smmehandbook.co.za | SMME Handbook
SEDA PR OFILE
Luthii Leather
Luthii design and manufacture quality leather bags and
accessories for the local market, including for boutiques as
well as offering ‘custom makes’ for clients.
What products do you manufacture? blankets, sandals, hats, belts, and cushions,
Luthii manufactures a wide range of leather food holders and so on.
products such as laptop bags, backpacks, ladies I decided to call this production entity
and men’s bags (classic and casual) as well Luthii to incorporate genuine leather and wood
as genuine leather accessories such as belts, materials to make lasting wares like bags, as
table mats, coasters, tablet covers, wine holders, this nostalgia drives my creativity. I enjoy co-
bracelets, wallets and clutch bags. We also creating products with other people - even my
create corporate gifts such as restaurant menu clients - because it just sparks fresh thinking
covers, luggage tags, passport holders, key rings, for me all the time and the result is that we
mouse pads and business card holders. We end up with a product that offers so much
also offer a service of sourcing and supplying more than I might have been able to create on
corporate gifts such as branded t-shirts, jackets, my own. I enjoy making unique products for
bags, uniforms and similar products. clients who value timeless pieces.
What inspired you to start your business? How has the market responded to your
The person that inspired me most was my offering of quality craftsmanship?
mother who took us through school by knitting The customers are excited about the bags and
jerseys and making clothes. I developed the all my wares as they find them affordable and
urge to start a business because I found that appreciate that they are good quality products.
I was very creative. I started participating in They even like the idea that the materials are
putting jerseys together and made interesting all sourced in South Africa and that all our
scatter cushions which I sold to family friends products are made by local people.
and acquaintances for pocket money when I When clients come up with ideas and they
was at school. manage to incorporate them in their bags then
I also wanted to make a difference by they tend to value the bags more and see them
creating a brand which would start small as good investments. For the cattle owners,
and eventually create opportunities for other they love the fact that even the skin hide
people to earn a living, either as employees, provides a livelihood to people like us.
traders or learners. My dream is to create
a lasting brand which would be part of our What lesson has this taught you about
legacy for the generations to come. market demand for your products?
I grew up in a community where children The demand in South Africa is still there,
played together using small wooden sticks but the pricing must be competitive as the
(luthi) to count, start fire and create homemade economy and inflation are a huge contributing
dolls from this simple natural material - wood. factor that have an impact on sales. The
Cow leather was used to make different personal disposable income is gradually
things like floor mats, chair covers, throw-over reducing due to the economic pressures, so
SMME Handbook | www.smmehandbook.co.za 38
SED A PR OFILE
sustainability of a business if there are
seriously competing needs and products in the
market.
What have been the primary reasons your
business has reached this stage?
I make sure that I go to exhibitions and use
social media avenues to promote Luthii, but
I also offer lay-byes so that customers can
buy and feel the product. I also have brand
ambassadors who are based in different towns.
What is the best advice you have received
about running a sustainable business?
It is essential to have effective financial
management, stock management as well as
knowing who your competition is. It is also
vital to be looking at trends and being aware
of what is happening around you and in the
many people are unable to afford the luxury global marketplace.
bags. My response to this has been to create
the value entry bags which are more affordable What mistakes have you made
for the market while, for students, I even that others can learn from?
mix canvas and leather for durability and Not engaging with your staff can be a serious
affordability. problem. This is crucial so that you understand
I need to use more avenues to market the people on your team better in order to be
our products as there is stiff competition in able to motivate them when they are going
CapeTown and beyond. We are on Facebook, through a difficult time in their personal
Instagram, Itarazen online market and we have lives. Anyone with issues at work slows down
the Luthii online shop. We also have stock productivity.
holders who are retail partners in Franschhoek
called Big Love Collaboration and at the What have been the challenges of being a
Colosseum hotel in Century City. woman and running your own company?
It is not easy to juggle everything that is
What have been the key challenges to involved around running your business, raising
making the step from start-up to an two kids, being a wife and a daughter. It is
established business? not easy and one needs to prioritise and keep
The common challenge is the capital outlay everybody around you happy.
to buy equipment that would improve
productivity in manufacturing. The marketing Advice to other women entrepreneurs?
channels are also costly and, without Be strong, remain focussed, take each day as it
marketing, it is almost impossible to get comes, be willing to learn and do your best not
the consumers to know and understand to be demotivated by mistakes.
your offering.
This may affect the rate of growth and www.facebook.com/luthiileather
39 www.smmehandbook.co.za | SMME Handbook
BRANDING
Counting Your Organisation’s
Reputation Score?
The reputation management conundrum should be as high
on the list of priorities for every small and medium-sized
owner as it is for the leader of a big business.
The average corporate reputation score of last practice for organisations to know and share
year’s reputation research studies conducted their reputation scores,” advises le Roux.
by Reputation Matters, a proudly African Le Roux mentions that reputation research
reputation research company, was 78.4%, will assist business owners and CEOs who
which represented a 2.2% decline from 2017 believe that things aren’t as pristine as it should
(80.6%). This score is based on ten reputation be in their organisations.
studies conducted amongst internal and “The data helps form a base to work from
external stakeholder groups across different and it identifies priority areas within the
industries in South Africa during the course organisation that needs extra focus, especially
of 2018, compared to nine studies in 2017. when recovering from a crisis situation. For
those on the other side of the spectrum with
“Before we start patting ourselves on the back a spotless reputation, the results will provide
that the average corporate reputation score bragging rights based on scientific research,
for 2018 is a distinction, we appreciate that the and also help the business to be proactive and
sample of 10 is most certainly not representative navigate any uncertaintly that could result in a
of all businesses in South Africa. It does crisis scenario that could catapult them quite
however highlight the conundrum that many quickly into the disaster zone,” says le Roux.
who work within the reputation management
space are faced with; not everyone wants their The year that was, 2018
reputation measured or managed,” says Regine Reputation Matters’ robust measurement tool,
le Roux, managing director of Reputation the Repudometer®, measures 10 dimensions of
Matters. an organisation that statistically works out what
Decision makers of reputation studies your organisation’s reputation is.
either believe that things are so dire within the “A reputation is not just about clever
organisation that there would first need to be marketing and public relations, it is taking a
drastic changes before investing in a reputation serious look inside the organisation first before
research study, or on the other side of the engaging in any type of communication with
spectrum, they believe that their reputation is stakeholders,” adds le Roux.
perfect. The main reason for the decline in the
“We are definitely seeing an increase in research results from 2017 to 2018 is related
corporate South Africa taking an interest in to the purpose of the business. There was a
their reputations. Unfortunately those who substantial drop of 3.4% around this aspect.
really need to, aren’t. It should become common Stakeholders require a lot more information
SMME Handbook | www.smmehandbook.co.za 40
BRANDING
in terms of an organisation’s purpose, both operate from an ethical, stakeholder inclusive
in terms of their strategic intent, for example, perspective and influence not only the sector in
where the organisation is going and how they which they operate, but the larger environment.
are going to get there, as well as corporate This also includes who you align yourself with;
governance practices. do your alliances make business sense and are
It is equally important to align the business’ you partnered with like-minded organisations
strategic intent to purpose driven activities. who have similar values?
In other words, making sustainable social
contributions; people want to know that the 3. Partnerships
companies that they are supporting are socially An incredibly important aspect this year is to
responsible. Stakeholders also want a lot more focus on stakeholder value. What value do you
transparency when it comes to understanding provide your stakeholders, and how does this
which companies and individuals the business affect their wellbeing? Stakeholder relationships,
is aligned with. 2019, the year to be proud of both internally and externally, should be
your reputation maintained equally and fairly by organisations.
“Companies will need to be a lot more What has also been confirmed from the
transparent about their reputation scores. research, is the importance of having updated
Understanding your reputation and pain points stakeholder databases in order to effectively
will help you to build your business so that communicate with your audience.
people will want to be associated with you and
conduct business with you. It will help with “Leaders will be under even more scrutiny
making better business decisions. and society’s magnifying glass this year.
“We believe that sharing Repudometer® Leaders need to be focussed on purpose driven
scores should and will become part of due leadership; they should be the voice of the
diligence processes in the future,” adds le Roux. organisation and build principled partnerships
To proactively manage your corporate both internally and externally. What better way
reputation this year, le Roux advises that to show their success by sharing their reputation
organisations consider the following three P’s scores,” concludes le Roux.
as a start:
www.reputationmatters.co.za
1. Purpose
Ask yourself: What is the main purpose of
the business and is it still relevant? Do your
stakeholders know what you are offering?
Do a quick test and ask a few of your key
stakeholders to verbalise in eight words what
it is that they think your organisation does, as
this will help you to ascertain whether you are
on track.
2. Principles
Can you fluently answer what your business’
values are and whether it is entrenched in your
organisation? Ethics, reputation and values
are all interlinked. Organisations need to
41 www.smmehandbook.co.za | SMME Handbook
SEDA PR OFILE
Themba Lize Leather
Themba Lize Leather manufactures genuine leather products from their base in
Franschhoek outside Cape Town. Passionate about leather, their products are
designed and handmade with care by Themba Lize, a second-generation leather
crafter who has perfected his skills - and those of his team - over the years.
What inspired you to start your business?
My father used to fix shoes and I would assist him
and that experience allowed me to work out how to
make my own shoes when I was in primary school.
There was also an older guy nearby who was
making shoes so I decided to go and join him and
became his student. He taught me the invaluable
skill of making patterns so that’s where I really
started and I never stopped.
I kept on growing my craft and my client base
unless I landed a deal to supply 15 sandals to Sun
Goddess. It took them three or four days to sell
those shoes out at just one branch and then they
kept on ordering more from me.
At that time I was working alone and sleeping Over time I started getting interviews with local
in the workshop, which was a container structure. papers and I would be referred to companies such
I had such a passion for leather that I packed as Woodheads to help with overflow orders they
everything I had and went to stay there for nine needed to outsource. I still get my leather from
months and 11 days so that I could keep up with Woodheads and they often refer clients to me.
the orders. I cooked there and did everything from
the workshop. My friends thought I was sick and What was one of your most challenging
I even lost my girlfriend because of the hours that moments in setting up your business?
I was working, but I told them this is what I love At one stage I was employing two gentlemen
doing and I needed to go flat out in order to make to help me with hand-stitching in the early days
enough money to survive. when I didn’t have any machines and we worked
I have never lost my passion for creating together until I lost my business after a fire in the
with leather. V&A Waterfront market, where I had moved from
where I started working in Langa.
How has the market responded to your I lost everything in that fire as I was too small
offering of quality craftsmanship? to afford insurance back then, and my losses
The market has responded very well and I kept on included 180 pairs of shoes, a whole lot of raw
hearing from people that they really appreciated materials and R7000 in cash, which was the
the final product as it was so neat and carefully takings from my sales at a nearby market. It was a
made. People were amazed at the standard of work bitter blow and very hard to overcome and I had
I was able to produce working by hand. to stay at my uncle’s place for some time. I was
SMME Handbook | www.smmehandbook.co.za 42
SED A PR OFILE
heartbroken and it took a lot of effort to recover that money to be kept separate because you that
from that setback. money is vital to keep your business in operation
for the next few months. You also have to have
What were the key challenges in targets for income and expenses so you can keep
transforming from a small start up an eye on your cashflow, because the stress of
into an established business? running out of cash can cripple your business
Even today finance is a major challenge, as is and can become a huge mental stress.
the business side of things. Like most small You also have to talk to people and ask
business owners, I don’t know that much about questions - don’t sit at home and think that
business and finance as my background is in my you know it all, rather go out and find out from
passion, which is working with leather. I have others how they do things in order to learn from
done short courses in business management their experience and their mistakes. Speaking to
and I have studied deeper some of the areas people also helps you to build up your network
that are important for business owners to have and a strong network can often help your
an understanding for, but I am also getting business through some tough times.
assistance from my wife and a friend who has
experience in business management. How are you expanding and
SEDA are now helping me to buy machinery what is your target market?
that will help my business move to the next level We are expanding the product range into items
as well as investigating other funding options, such as leather bags, which has been a self-taught
while Cape Winelands and Woodheads have skill. I keep an eye on what other people are
both been incredibly supportive by helping me doing and what the international trends are, right
to acquire machines that my business needed from the look and style to materials and colours
to expand. used. Although I would love to sit in my own
corner and do what I want, I have learned that
What is your best advice for someone you have to stay relevant to what consumers want
wanting to run their own business? and what the trends are.
You must know what you want to become, what I have never had a strongly defined target
you want to do and you must just hang in there. market but we focus on two categories of
Along the way there will be challenges left, right professionals - those aged 25-35, and then
and centre but if you love what you do then no professionals between the ages of 35-55.
matter the challenge you will have the strength
to go on. You also need hope - a lot of people What are your plans for the future?
ask me how I became what I am today and my My aim is to get a good team working with me
answer is simply that I started young in primary as I see the Themba Lize brand getting bigger
school and kept doing it for more than 20 years. and bigger. It will become essential to have a
manufacturing plant running in an industrial
What mistakes have you made area as that will enable us to start producing a
that others can learn from? greater quantity of products so that we can start
In terms of money, not knowing what to do with supplying a few boutiques around South Africa.
the money that comes in from your business, Later on I would love to have my own outlets to
how to manage it and how to make the most of supply, as well as supplying retailers overseas. I’m
it. I have learned about the importance of having not stopping at all!
your own personal account and not dipping into
your business account - your business needs www.thembalizeleather.co.za
43 www.smmehandbook.co.za | SMME Handbook
TELE C OMMUNICATIONS
The fi bre freeway
South Africa’s roads and pavements are being churned up at a rapid
rate so that IT companies can lay fi bre. While some homeowners
have been irritated that the bricks on their driveway haven’t been
relaid perfectly, on a positive note the benefi t to South Africa is
going to be massive, writes Chris Marshall of IP Cloud.
Fibre is set to revolutionise life for South source of income for many people.
Africans at home and, especially, in their One day in Joburg I actually saw some guys
businesses. We estimate that within the next pulling the copper wires right off the telephone
three years the fi bre network should cover just poles … while the police cars were driving past!
about the whole of South Africa. The situation has become epidemic in South
Africa and the authorities simply don’t have the
People are not going to recognise themselves manpower to police the entire infrastructure. If
because everything is going to operate better, you take mild steel to the scrap yard you’ll get
faster, quicker, and it’s actually going to take 68 cents a kilo … on copper you’re getting R47 a
some time for people to speed up their own kilo. The problem is that you need to pull up a
operations and their thinking in order to adapt lot of copper in order to feed a family for a week
to the world of fi bre connectivity. - and then next week you need more copper.
That’s a great problem to have and it is This is part of the vicious cycle for South
the best news for small businesses, who are Africa but, sadly, it is a situation that is not
best-placed to take advantage of the benefi ts of sustainable for these families. Equally, the
increased speed in their operations. damage done to the economy by the theft
Fibre is replacing the analog system which is of copper runs into the tens of millions of
now all but redundant, and one of the problems rands just to repair the damage, let alone the
of that system was that it relied on copper wires economic impact of those businesses suff ering
for transmitting voice and data. This copper has from not functioning productively. For South
a very high value and, in South Africa, where Africa, the cost to repair that lost copper could
so many of our people are desperate run into a thousand rand a kilo in manpower
just to put food on the table, this and recabling alone. I reckon it would be
has become a natural cheaper to pay the guys R100 a kilo
SMME Handbook | www.smmehandbook.co.za 44
TELE C OMMUNICATIONS
Chris Marshall
NOT to steal the copper! businesses can run productively and it gives
The answer is jobs … and fi bre plays a key small businesses in particular the best chance
role in that answer. of maintaining profi tability. The result of that
Fibre is a total game-changer as it is dug (along with the faster connectivity speeds)
down at a certain depth that makes access means more jobs for South Africans.
diffi cult, but it is also ‘cased in’ so there is no That’s what we all want to see in 2020
value in recycling the cable. On the positive and beyond.
side, at least there is a lot of civil work (ie
digging holes to lay the cables) that goes www.ip-cloud.co.za
behind it which creates jobs.
The fi bre network is also far more stable
and adaptable than the analog system. In any
telecommunications connection you need a
redundancy or ‘failover system’ so, for example,
at IP Cloud we don’t rely on only one undersea
cable - we utilise six. If one cable goes down
then we jump over immediately to the
next cable.
This rapid adaptability
ensures that
45 www.smmehandbook.co.za | SMME Handbook
INNO VATION
“Intrapreneurs”
to lead innovation
Employee “intrapreneurs” could hold the key to unlocking
innovation for South African business faced with the twin
challenges of growing local productivity and jobs, as well as
keeping pace with rapid global technology advancement and
the demands of increasingly sophisticated consumers.
President Cyril Ramaphosa, in his opening added.
address to the SA Investment Conference While examples abound of game-changing
in January 2019, highlighted that “we are innovations that emerged (often by accident)
determined to build a country that is driven from within a company workforce – Sony’s
by enterprise and innovation” while the World Playstation and 3M’s Post-It notes are two such
Bank has urged South Africa to harness its examples – Dr Van Coller-Peter believes that
“largely untapped potential for innovation”. successful intrapreneurship relies not only on
individuals who have the right “natural ability,
Dr Salome van Coller-Peter, head of the personality, curiosity and guts”, but also on an
MPhil Coaching Management programme enabling corporate environment.
at the University of Stellenbosch Business “If innovation through intrapreneurship
School (USB), says that “change is now the is to be more than a one-off lucky break, then
only constant. Companies embracing it are encouraging it must be a decision made and
succeeding while those that don’t are forever supported by top management. It must be
playing catch-up, and this is where encouraging organisation-wide and institutionalised, with an
and rewarding intrapreneurship can make the empowering environment that fosters a culture
crucial difference.” of co-creativity – allowing for risks to be taken,
By supporting and rewarding idea within boundaries, and mistakes to be made,
generation within the company, those with and offering worthwhile recognition or reward,”
smart ideas are more likely to stay within the she said.
company, which in turn benefits the business She points to the example of First National
in staying ahead of the game in a highly Bank, which last year awarded over R10.5-
competitive business environment. million to employees who came up with “game-
Intrapreneurs – employees who think and changing innovations” to re-invent banking
act like entrepreneurs, and who are driven processes and use technology to provide better
to uncover new opportunities and find new service to customers. FNB has awarded R54.5-
ways of doing things – are valuable sources million to staff since launching the programme
of innovation and sustainable competitive in 2004, and have implemented over 10,000
advantage because of their inside knowledge employee-generated ideas.
of the business and organisational culture, she “Organisations need to make the decision
SMME Handbook | www.smmehandbook.co.za 46
INNO VATION
to encourage employee innovation, to create monitor and evaluate progress.
a culture of allowing mistakes, risk-taking “A forum for pitching new ideas and
and taking initiative and to recognize such inventions is an option, but it must be led by
employees publicly.” people with influence and decision-making
Dr Van Coller-Peter says the financial power, as well as an appetite for creativity,
benefits of innovation need careful renewal and a healthy measure of risk-taking,”
consideration too. “Rewards and recognition are she said.
one thing, but there may also be a need to think Flatter, less bureaucratic organisations
about further incentives such as co-ownership of (in particular the majority of SMMEs) are
intellectual property or patents,” she said. more conducive to intrapreneurship, as well
Business needs to “think intrapreneurship”, as “recruiting with intent” to find employees
she said, taking a leaf from leading innovators with the right abilities and attitudes, she said,
such as Google by allowing thinking time, time although entrepreneurial flair is not suited to
to work on innovative ideas, allocating financial all positions and the creative risk-takers need to
resources, establishing a system for proposing be balanced with employees with attention to
and approving new ideas, and deciding how to detail and execution abilities.
47 www.smmehandbook.co.za | SMME Handbook
ENVIR ONMENT
Future thinking translates
into energy efficiency
Electric cars, lightbulbs communicating,
fuel-efficient heavy-duty vehicles all have
moved from drawing board to market.
“Transport is one of the largest causes of rise to 1.5% with current and planned policies,
greenhouse gas emissions, particularly in but in the Efficient World Scenario, the annual
South Africa, which has a high ratio of cars, improvement rate could be over 2.5%. Non-road
taxis, buses and trains all using fossil fuels,” transport (aviation and shipping) could see
says Barry Bredenkamp, General Manager annual efficiency improvements of 3% between
Energy Efficiency for the South African now and 2040.”
National Energy Development Institute Bredenkamp believes that the next big jump
(SANEDI). will be provided by LED lights.
“Essentially motherboards with a bulb,
“Green fuels are being developed for diesel many of these lights are already marked as
consumers, particularly buses and electric cars Li-Fi enabled. Li-Fi uses the light spectrum,
are moving from drawing boards to parking lots. as opposed to Wi-Fi, which uses the radio
Electric vehicles make sense economically, again spectrum. This spectrum is already overcrowded
when viewed over the life cycle of the car,” he adds. across the world because of the rapid uptake
The initial cost is outweighed by no services of Wi-Fi. Li-Fi will be broader, faster and will
and a replacement of a battery every couple of enable anyone with an LED light to be able to
years. Already car parks are installing electric connect to the world. Streetlights, traffic lights,
vehicle charging outlets and, what adds to their shops, offices will all act as routers and this will
energy efficiency is that these are mostly solar change communication in ways we cannot even
powered, thus reducing electricity usage. begin to imagine.
The International Energy Agency (IEA) “What is needed is a radical change in
recently released its ‘Efficient World Scenario’, human behaviour – one that looks at the long
which highlights the potential for transport term effects of purchasing an item versus the
energy demand to remain flat between now and immediate costs, that weighs up our children’s
2040, despite doubling activity levels. air quality against coal power stations; that
“At an end-use level, the average passenger understands that reducing water and waste also
car could be as efficient as today’s best hybrids contributes to energy efficiency,” concludes
and over 40% of the global car fleet could be Bredenkamp.
electrified,’’ adds Bredenkamp. “The annual
rate of efficiency improvement for trucks can www.sanedi.org.za
SMME Handbook | www.smmehandbook.co.za 48
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Client Journey SP
Client
SP Client
BA
BA
Seda Success Story: RV Footwear
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