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competition economic development economic freedom economic policy enterprise development entrepreneurship Events Featured finance funding innovation insights inspiration Investment media Opportunities public policy social enterprise start-ups wealth youth entrepreneurship

Social Enterprise Masterclass Challenges Delegates to Build Sustainable Organisations

The concept of social enterprise has gone mainstream over the past few years, reflecting a desire for new ways to create economic value in a manner that delivers measurable social impact. This year’s Global Entrepreneurship Week kicked off on 10 November at the continent’s largest start-up campus, 22 on Sloane in Bryanston. On Wednesday 15 November, the venue hosted masterclasses on various aspects of entrepreneurship such as social entrepreneurship, funding strategies for small business, purpose-driven enterprise, as well as inclusive growth.

The first session, Social Enterprise and Impact Investment, kicked off with Mbali Zamisa, enterprise Programme Coordinator of the South African Breweries Foundation talking about various SAB Foundation enterprises that seek to fund various small businesses. These include the Tholana Enterprise, which seeks to empower marginalised groups such as women, youth and rural business.

The room comprised mostly of determined and engaged entrepreneurs whose business’ life span ranged from one to five years old. Rudzani Mulaudzi from Grades Match and Nneile Nkholise from Likoebe Innovation Consultants spoke about impact investment and measurement.

No let-down was The Disruptors author Kerryn Krige’s talk on the complexities and contradictions of social entrepreneurship and especially what it really is. Her talk featured many salient questions and statements that served as food for thought for entrepreneurs:

  • How am I going build stability in this organization?
  • Legitimacy and authenticity are inextricably linked
  • Funding social value in a sustainable way
  • Social enterprise blends income methods which enables you to have control over the types of income you bring in
  • It’s not about how much money you get!

 

Other important take-aways were about were remembering that ‘‘your story is more important than your numbers but use numbers to back up your stories (“finance people aren’t as stupid as they look!”), and the importance of doing homework on your investor, needing your investor to offer more than just money, and enhancing your own ‘‘investability’’.

The Future of Sustainable Job Creation talk with Managing Director Zanele Luvuno of Transcend Talent Management explored the ways in which policy creation can aid job creation and exposed challenges with implementing BEE legislation. The objective was to invite professionals to see beyond corporate life and tap into research and business development facilities to pursue small business development.

The last session on Integrating the Township and Informal economy by Sifiso Moyo was a dialogical sitting that had all delegates debating on the ways in which the township could benefit more from entrepreneurial ventures. Moyo asked critical questions that involved historical facts, relevant statistics and real-life case studies to observe and analyse successes and failures of a few entrepreneurial ventures in the township. The theme of the Township Renaissance was an indispensable topic that pushed the entrepreneurs, many who are from the township, to shift mentality and think of innovative ways of serving their communities with the intention of creating a strong township eco-system in which the rand would circulate numerous times and not only once in a context where R2.2 billion rand is generated out of township economy annually. This challenge presented the opportunity for township entrepreneurs to become real and legitimate competitors with big competitors and franchises.

Global Entrepreneurship Week endeavours to host more events in which more entrepreneurs will actively and consciously engage with like-minded peers who have succeeded such as Vusi Thembekwayo, who graced this week’s first event. The Masterclasses were informative, thought-provoking, and mostly motivating to the passionate and driven young youth who came to learn from the best in the business.

Written by: Gabaza Tiba (Makhaya Advisory)

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achievement competition creative economy economic development education enterprise development entrepreneurship Events Featured finance funding Notices Opportunities small business

Polishing your business pitch

Engen Petroleum and Nedbank have partnered with Raizcorp to bring the ENGEN Pitch & Polish programme to cities and towns across South Africa, for the eighth time. The programme helps to educate and grow entrepreneurs.  It teaches entrepreneurs how to polish their business pitch in order to obtain funding.

What type of Pitcher are you?

 

Pitching your business is an essential skill to master in order to grow your business. And, if you want to grow your business, you must be able to pitch it successfully. The way you say things is as important as what you actually say – and could mean the difference between attaining the investment needed – or being turned away. No matter the result, every opportunity to pitch is an opportunity to get better!

 

Now in their eighth year of listening to entrepreneurial pitches, ENGEN Pitch & Polish, in association with Engen Petroleum, Nedbank and Raizcorp, have identified six distinct pitching types. Which one are you?

 

The first three types fall into the category of ‘content pitchers’. These types are either getting it wrong – or right – from a content point of view.

 

The Investor-Ready Pitcher

  • You are the ideal pitcher! Your business case is clear with a defined product or service, which is ready to be taken to customers.
  • You have done your market research and can prove that people want what you are offering.
  • Your sums add up and you can demonstrate a clear Return on Investment (ROI).

 

The Salesman

  • Your pitch is purely sales-focused, with a ‘one-size-fits-all’ approach.
  • Investors want to see the real you and understand your business – they are far more interested in you, than your product or service.
  • Be real and be honest.

 

The Technician

  • Technicians only want to speak about the finer details of their product or service. They use too much jargon and technical terminology. The result is that the investors’ attention is lost as they stop listening.
  • Investors need the whole picture to make the ultimate decision.
  • Focus your pitch on how your business is going to make money.

 

The next three types fall into the category of ‘style pitchers’. These types are, unfortunately, getting it wrong from a style point of view! When you are confident in what you are saying, you will come across as authentic, credible and authoritative in your field.

 

The Floor-Gazing Dancer

  • These pitchers are so nervous they can’t look the investor in the eye. Instead, they stare at the floor and tend to move from side to side.
  • This pitch is hard work for an investor as the movement is dizzying and lack of eye-contact alienating.
  • Resolve to make a concerted effort to stand straight and look people in the eyes.

 

The Mumbler

  • The mumbler speaks incoherently and softly.
  • If investors cannot hear your pitch, they aren’t going to invest in your business.
  • Practice is key to gaining confidence in yourself and what you are saying. Record your pitch and listen to yourself. Become aware of your fillers and replace them with pauses.

 

The Racing Driver

  • You speak so fast that it is difficult to grasp your business offering and model.
  • This can intrigue an investor if spoken with confidence. However, it often leads to an ineffective pitch.
  • Refine your pitch. Shorten it and select places to breathe and connect with the investors. Plan your pauses. Enunciate clearly.

 

No matter the content, or style, of your pitch, a good pitch tells a story and a good story needs refining and rehearsal. As Alan Shannon, head of Nedbank Relationship Banking Sales, says “anything that distracts the audience from your message makes the message less effective.” To learn how to hook your audience, by creating your best business pitch, come to the ENGEN Pitch & Polish workshop and competition.

Author: Engen Pitch and Polish

 

For a list of this year’s workshops, and to experience the magic of ENGEN Pitch & Polish for yourself, visit www.pitchandpolish.com.

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beneficiation competition industrial inputs Investment political economy

ARCELORMITTAL TO PAY R1.5 BILLION FINE FOR CARTEL BEHAVIOUR, COMMITS TO PRICING REMEDY

Media release from the Competition Commission: 

The Competition Commission (Commission) has reached a settlement agreement with ArcelorMittal South Africa Limited (AMSA), finalising all pending investigations and prosecutions against AMSA. In terms of the agreement, AMSA admits having been involved in the long steel and scrap metal cartels, and agrees to pay an administrative penalty of R1.5 billion (one billion five hundred million rand). Furthermore, AMSA has agreed to remedies relating to complaints against its pricing conduct without admitting that its pricing conduct constituted a contravention of the Competition Act. In this regard, AMSA has undertaken that for a period of five years it will limit its EBIT (earnings before interest and tax) margin to a cap of 10% for flat steel products sold in South Africa. In addition, AMSA has committed to a R4.6 capital expenditure over the next five years. The Commission has, in turn, agreed that the settlement will cover all pending cases against AMSA including those that are still under investigation.

Today, 22 August 2016, the Commission filed an application with the Competition Tribunal (Tribunal) for confirmation of this settlement agreement as an order of the Tribunal. The agreement relates to various cases that the Commission has investigated against AMSA, some of which were subsequently referred to the Tribunal for adjudication. The following is a summary of the cases and the Commission’s findings.

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competition competition policy enterprise development public policy regulation small business

Anheuser-Busch InBev wins over South African government

Anheuser-Busch InBev released a media statement yesterday on its negotiations with the South African government on its proposed take-over of SAB Miller. The Competition Commission has an extension until the 05 May to conclude its investigation of this transaction and make recommendations to the Competition Tribunal to either approve it with or without conditions, or block it.

According to the statement:

‘An agreed approach has been concluded between the South African Government and Anheuser-Busch InBev SA/NV (“AB InBev”) in relation to the public interest conditions that will be recommended to the Competition Commission and Competition Tribunal in connection with the proposed acquisition of SABMiller plc (“SABMiller”) by AB InBev. The package of commitments addresses employment, localisation of production and inputs used in the production of beer and cider, empowerment in the company, long-term commitments to South Africa and participation of small beer brewers in the local market.’

The commitments include:

  • R1bn investment to support small-holder farmers as well as to promote enterprise development; local manufacturing, exports and jobs; the reduction of the harmful use of alcohol (including making available locally produced low and no-alcohol choices for consumers) and green and water-saving technologies. Part of this fund will finance 800 new emerging farmers and 20 new commercial farmers to produce barley, hops, maize and malt for the company, with the strategic intent to create additional jobs in the agricultural supply chain.
  • No involuntary job losses in South Africa as a result of the transaction
  • The company will maintain its total permanent employment levels in South Africa as at the date of closing, for a period of five years
  • The company will work government to reduce the harmful use of alcohol, including through introducing and promoting no-alcohol and lower alcohol products, including through brewing these products locally where possible.
  • The company will maintain South African Breweries’ current Zenzele BEE share-scheme until the scheme expires in 2020, and within two years of deal closure, outline its long-term empowerment commitments beyond 2020
  • AB InBev’s regional head-office for Africa will be located in Johannesburg
  • AB InBev already has a secondary listing on the Johannesburg Stock Exchange
  • The company will support the participation of small craft-beer producers in local markets

Minister of Economic Development Ebrahim Patel is quoted as saying “South African Breweries – the SABMiller predecessor – has been an important company in the South African economy for many years. This transaction is by far the largest yet to be considered by the competition authorities and it is important that South Africans know that the takeover of a local iconic company will bring tangible benefits. Jobs and inclusive growth are the central concerns in our economy. Our competition laws specifically provide for consideration of the employment and public interest impact of mergers and acquisitions. Following the announcement of the proposed acquisition of SABMiller, the South African government carefully evaluated the likely impact on jobs, small businesses, farmers and economic empowerment. We engaged with AB InBev to identify commitments that can ensure that the transaction has a net benefit for the country. The commitments made by the company are the most extensive merger-specific undertakings made to date in a large merger. In our view, they meet the requirements of the competition legislation. The agreed terms will be placed before the competition authorities for consideration.”

Carlos Brito, CEO of AB InBev added: “We are pleased to have reached this agreement with the South African Government. As we have stated from the outset, we are excited about the growth opportunities and the role South Africa will play in our combined business. Recognizing South African Breweries’ important contributions to South Africa’s economy and society, our commitments seek to build on this deep heritage and we believe there is a huge amount that the two companies can achieve together to the benefit of all stakeholders.”

The company says that the agreement above will be provided to the Competition Commission for consideration as part of its assessment of the competition and public interest impact of the proposed acquisition. That assessment will culminate in a recommendation by the Commission to the Competition Tribunal.

See the rest of the statement here

Categories
competition competition policy Media Release

Competition Commission welcomes World Bank study

MEDIA RELEASE FROM THE COMPETITION COMMISSION

The Competition Commission welcomes the World Bank annual economic update released yesterday, 02 February 2016. The study found, among other things, that the Commission is the most active competition authority in Africa and is ranked among the best authorities in the world. This finding is consistent with the Global Competitive Report 2015-2016 which ranks South Africa 13th out of 140 countries regarding the effectiveness of its competition policy.

The World Bank also found that South Africa’s Competition Authorities have actively detected and sanctioned cartels in sectors that provide key inputs to households and firms. These include sectors such as food and agro processing (e.g. poultry, grain, and milk), agricultural inputs (e.g. fertilizer and animal feeds) and construction inputs and scrap metal. Between 2005 and 2015, the Commission detected and sanctioned more than 76 cartels (excluding cartels in the construction sector). The Commission’s success in the detection of cartels is attributable to its effective corporate leniency policy and multiple raids.