Follow your passion! "Terms and conditions apply"

Whoever wrote: ‘follow your passion and success will follow' probably ran out of ink before adding 'terms & conditions apply' – By @Lizmania

'Follow your passion, and success will follow.'

That is by far one of the biggest lies I've ever heard from entrepreneurial interchanges! And yes, you heard me right, Lie! Lie! Lie! Now what exactly do I mean by that?

I for instance am passionate about music. I love music! I live music. I breathe music! Everywhere I go, I sing, in a sense my life is some sort of a musical and yes, this is to be taken in a literal sense! Now the problem is that every time I open my mouth to sing, the people around me appear to be experiencing some sort of discomfort. Their faces will disfigure, as if they are tortured. Others will excuse themselves to rather be somewhere else.

One thing is for sure, as much as I love and have the passion to sing, I do not have the ability to sing! If I were to decide to go into studio and start recording an album, the only person who would probably lay-buy my CD would be my ever so supportive mother no doubt.

It isn't always the case that when one follows their passion, the consequence is success. Failure could result too, if perhaps one's passion is not aligned with one's capability! You cannot blindly follow a passion that you clearly do not have the 'talent' or 'gift' that could back it up.

I feel that most entrepreneurial role models sell this passion dream more and tend to forget about yet another important aspect of entrepreneurship, which is opportunity! My take is, there are two ways to approach entrepreneurship, one could be going the 'passion route' or the 'opportunity route'.

Now the latter is mostly discouraged by the top dogs probably because when one is not passionate about something, they tend to not give it their all. That statement is not false at all! But what if I were to come forth and say, "I am passionate about entrepreneurship!"? Yup, that's right, you do get people that have no special attachment to anything in particular but are really passionate about entrepreneurship! Give them ANY kind of an opportunity and they will give it their all and NAIL it!

Going back to my sad story about my lack of vocal talent, let's forget about me for a second and talk about you. Say you are unemployed and struggling to make ends meet. You’re passionate about fashion design but no one can stand the sight of the clothes you make. But when you sing it makes the hairs on the backs of people stand up! You have a voice exactly like Whitney Houston, and as much as it's not your favourite thing in the world to do, when you do it- people listen and they love it! Now struggling as you are, trying to make ends meet, would you not be willing to explore this opportunity simply because you have no passion for it? Wouldn't you be motivated enough about making ends meet to a point where you'd be willing to consider it and subsequently do it with a passion?

Dr Dre is believed to have made more money selling music accessories than he ever made in his music career! Do you honestly think that Dr Dre is passionate about ear phones? I doubt! To me this sounds like a man who is passionate about hustling. We see this everyday, musician making more money out of endorsements than their music careers. Honestly, I doubt Rihanna is as passionate about Mac cosmetics as she is about being on stage!

Now please do not get me twisted here, I am NOT at all implying that passion is not important. All I'm saying is, in the business world, one shouldn’t be so obsessed with this passion concept that it blinds them of opportunities that come their way! Much as 'terms and conditions' apply to going the opportunity route, the same can be said of the passion route.  If you are good at something that you are passionate about, by all means follow your passion. And if you are not, it doesn't mean you can't be a successful business owner.

 

PS: Just because I can't sing, it doesn't mean I can't go into the music business and explore other musical avenues  ;-)    

Pic credit: Google

I have a dream

By @Liz2mania

When I first laid eyes on this pic, I couldn't help but laugh uncontrollably. Somewhere in my laughter though, I stopped and had an epiphany! This person has a dream.

I realized that there were so many lessons that one could derive from this picture. See, this person has a dream and she knows she has to start somewhere. In fact she values her dream so much that, despite the fact that the other piece is still missing, she lays her bed still! (Well in this case, the floor, lol).

We all have dreams. Everybody has a dream! But what is it that you have done that has inched you closer to your ultimate goal? What steps have you taken that show how seriously you value your dreams? We might all have dreams but in all honesty, some people don't display any diligence. Having a dream but not doing anything about it is like going to someone saying you are short of R10 and need them to give you R10 for you to be sorted.

Unacceptable isn't it? A person who is short of R10 should have at least something on hand to show that they have done something worthy of being helped. See that is the thing about investors. They look at what you have done so far and then step in. If all you have is but a dream, that doesn't make you stand out because everybody has a dream.

Often we see people, saying they need funding for this and that but when you check what it is that they have done to earn that funding you get so disappointed. Start somewhere! For instance, if you are a writer who is looking to get a book deal, start by writing a blog. If you want to run a big retail store like Pick n Pay one day, you might want to start by running a spaza shop. That will make investors see how committed you are to your dream. Don't go to investors with nothing - saying you have a dream because...well, let's just say if that man who is short of R10 came to you and asked you for R10 would you help him out? Or would you be willing to help him out if he already had R5 and said he was short of another R5?

Is entrepreneurship of pressing importance to you?

By @Liz2mania

While lying comfortably in bed one morning, a sharp pain sears through your chest making it hard for you to breath.  You feel your chest tighten as your body temperature rises. The room seems to be spinning. Instantly, it hits you! You’re having the exact same symptoms your father experienced before this illness paralysed him. The doctor had said if he had taken GG in time, he would have survived. Horrified by the turn of events, you hop into your car and heed straight to the hospital, doing 260 on the road. You disobey every road sign and traffic light.  A sense of relief fills your heart when you finally reach the hospital. Rushing to the first nurse you see, you mutter your symptoms. Without even looking up at you, the nurse interjects, handing you a file with the instruction ‘Sit down and fill this out’.  You tell her it’s an emergency and for the first time she looks up at you, pointing to your left, her tone lacking emotion ‘There is the emergency queue’.  The queue could just as well be a four car Gautrain. By now your chest feels like steel, your mouth is dry and you know it’s only a matter of seconds before you take your father’s route. You look around and on your right you see a room where medication is stored.  One container stands out- GG it reads! Your heart beats faster and with your last energy you rush into the room and gulp down a dose of GG. Somewhere in the air you hear the nurse shouting ‘Hey! You can’t go in there! Only now do you see the ‘Authorized personnel only ‘sign.

No doubt, if you were to trade places with the man in our illustration you would have acted exactly as he did! The truth is, when it comes to life and death matters- we apply all desperate measures to save our lives, because we value our lives that much!  When it comes to life and death matters, we ignore all sorts of rules because it is easier to ask for forgiveness than permission.  As an entrepreneur, ask yourself this question, ‘how much do I value my dreams?’  The reality is nobody is ever going to bring opportunities to you. You have got to be brave enough and go grab them yourself!  The world around you might not have the same sense of urgency as yourself, but that should not at all deter you if you know what you want.

Notice what the man in our illustration does:

1.       He doesn't wait for the ambulance to come fetch him. He knows time is a luxury he does not have.

Don’t waste time waiting for that tender. Create your own opportunities. The world will catch up!

2.       The nurse’s attitude is the least of his concerns.

You have no business complaining about the world’s attitude towards what you strongly believe in!

3.       Even though the queue on the left side seemed long, he looked to his right.

Entrepreneurship is a bumpy road, do NOT give up. Keep seeking for solutions.

4.       When he caught sight of that GG, he did not for a second hesitate!

When you catch sight of your GG… Act! Act! Act! Start somewhere; someone is bound to take note of your action. 

Pic: Google

Global Entrepreneurship Week

This is a special invitation to take part in a never been done before online twitter conference. This week long conference will include discussions, comments as well as twitter interviews with entrepreneurs across the board.

Follow this event as it unfolds on our timeline ---» @SayEntrepreneur during Global Entrepreneurship Week, from the 18th of November 2013 to the 24th of November 2013.  The proceedings will commence from 18h00 on those days. Different topics will be tackled on each of those days, using #GEWSA as our trending 'hashtag'. 

Below is the #GEWSA schedule for your ease of reference:


18 November

Topic: The state of entrepreneurship in SA
Guest: World's top speaker and  entrepreneur Vusi Thembekwayo

19 November

Topic: Technology in biz
Guest: Technopreneur Vuyo Rami

20 November
Guest: Our tweepreneurs will be given an opportunity to showcase their businesses on our timeline!

21 November

Topic: Motivation. Entrepreneurial books that inspired you.
Guest: @ReadabookSA

22 November

Topic: Women in biz
Guest: CA and entrepreneur Miss Tsabu Motheo

23 November

Topic: Millionaire 101
Guest: Founder of the project Vusi Thembekwayo

24 November

Topic: Hitting rock bottom and bouncing back stronger.
Guest: Multimillionaire Lebo Gunguluza

Join us as we engage in these exciting entrepreneurial topics during Global Entrepreneurship Week!

understanding money _ Money doesn't grow on trees?

This article is taken from Regenesys Business School


Most of us are familiar with the idiom, “Money is power”. Having money is seen as being equated with being powerful. But how do we gain power over money? Money power is a phrase we can use to describe the state when we master our finances and take control of how we manage them. Money power refers to maximising our incomes or profits, to ensure that we control money rather than money controlling us.

This week’s newsletter offers financial wisdom to help you come to understand money power so that you can overcome the “tax” you are paying by not being financially literate. But please note that while this newsletter provides key insights, it should not be seen as offering financial advice and you should consult a professional and make your own assessment of your financial options.

Money power

Many people think that get-rich quick schemes like buying a lottery ticket are viable strategies for increasing wealth. But there is a great quote by Ambrose Bierce, “The lottery: a tax on people who are bad at math.” As this quote suggests, people who don’t understand basic calculations are likely to lose more money than they gain. To avoid becoming a victim of this “tax”, wealthy people will tell you that you first have to start understanding money. You have to realise that financial success will elude you until you understand that money is earned not won. Hard work and systematic planning, coupled with a deep understanding of money power, are the only ways to ensure you reap financial rewards.

The first step

The first step to gaining power over money is often the hardest. This is because the first step is to convince yourself on the most fundamental level that you do not want to lose money and that you want money power.

While this may sound easy, it is not an intellectual decision you can simply make – it must be something that you come to believe in your heart and in your soul. It involves discovering why you have hang-ups about money and getting this out of your system. Money is not a mysterious entity always floating out of your grasp – it exists around you as a form of tangible exchange. But you need to be open to the possibility that you can potentially get more of it than you have now to start the journey towards gaining more power over money.

We are taught a lot of things about money. The older generation has the sayings, “Money does not grow on trees” and “You have to work your whole life before you will have enough money”. While these old adages have some element of truth in them, more essential to gaining money power is building a positive relationship with money, otherwise no matter how hard or how long you work, money will never stay in your pocket for long.

Save

The next step is also a difficult one. Saving money can be very challenging. The amount of money you can afford to save depends on your income, your assets, and your expenses. But you should be trying to save at least 10% of your annual disposal income. This will ensure that after 10 years you have a sizeable sum saved up.

Saving is its own reward and you will soon see that adjusting your attitude towards saving changes your relationship with money. When you start seeing more ways to save – you also start seeing more ways to earn, and soon you will be starting to grow your savings.

Research also shows that having a savings mind-set goes hand-in-hand with successful saving. By looking at how you can save in everything, you start building up real money power.

It is tempting to spend money you have saved on instantly satisfying your material desires. But before you make hasty buying decisions, read the rest of this newsletter.

Budget

If you want to make and save money, there is no other alternative but to budget. What is proposed here is budgeting with a difference.

Budgets are important, not only because of the reflection of how much money you are spending, but also because of the reflection of what you are spending your money on. Your budget allows you to see if you are wasting money on non-essential items.

Some of the key questions can be compiled as an ABC budget:

What am I spending on that is really essential? (A)
What am I investing into – and what will it bring me? (B)
What am I spending on that I should not? (C)
We all know that A is what we should focus on. But B is just as important – you need to look at increasing the value of shares, properties, and other investments you might have that are increasing your ability to earn.

The best sign that you are heading towards financial trouble is if you budget to spend more than you earn. This will only result in the accumulation of debt. This is why while budgeting might be hard initially; it is worth the effort because it helps you to spend within your means, while contributing to your savings account.

Budgeting is a useful tool to evaluate if expenditure is necessary. You can simply classify expenses as an A, B or C and, if you are honest with yourself, you will soon be spending money on the right things. Budgeting is linked to the controlling of expenses.

Control expenses

Controlling expenses is very important. Some people try to save by cutting down on essential spending. This is not saving – this is starving yourself and your dependents.

Controlling expenses is the art of spending money on what you are supposed to and not on what you don’t actually need. In addition, if there are lower-cost alternatives to things you do need, you must pursue these instead. However, be wary of cheap imitations that lack the quality of the original product. You need to find the right balance between buying what you actually need and buying this at the most reasonable price for what you are getting.

Controlling expenses ensures that you keep as much money as possible. By understanding where your money is going, and where you are straying from your own budget, you will start to understand what is causing you to waste your money. You may have to go back to the budget many times before fully understanding where you are going wrong.

To have money power is to compare the expenses plan with the budget and see the differences and understand them. Learning from the past and using this information in the future allows us to learn more about money from the plan and budget than we may learn from any other financial format.

Invest

As your savings increase, the next step is to invest – or to make wiser decisions if you already have investments. Investing requires you to understand what you are investing in. As per a previous newsletter, you have many choices regarding investment opportunities and you should invest in the most viable, logical and financially sound of these.

Before you get carried away, make sure you know how an investment works. This means understanding the entire investment process, as well as understanding the specific investment that you are making. Make sure that you monitor an investment to get from it what you expect, and hopefully more than this.

Pay others to bring you money

One of the simple principles of investment is that you need to pay other people during the investment process. This means that you may need to pay someone else in order for you to get an eventual return on your money.

This principle applies if you invest in a financial instrument or even in starting a business. At some level you are, in essence, paying other people to bring you money. Once you realise this, you can get better at managing this process.

Cash is king

Whether you are running a mega corporation, a small business, or simply just a household, managing cash flow is very important. If you understand where the cash is coming from and where it is going to, you can plan for expenses and investments appropriately. While it is important to make a profit, it is also important to have positive cash flow.

As individuals, we often only work with cash flow and never evaluate if we are spending more of it that we earn. Both measurements are important.

Be the expert, rather than paying experts

The best way to make money is to become an expert. To determine where your expertise lies, you might like to ask yourself the following questions: What would other people employ you to do for them? What makes you an expert in your field and can you make money from this?

To really understand how this works, you may have to study how people who have proven their expertise make their money. You can assess them by asking, what do they do? We live in a world where many individuals claim to be experts. Now it is your turn to step up and be the expert in a suitable field.

You can become an expert in anything – even people who just have opinions get paid for them. Find someone who is willing to pay you for your expertise and you will be onto a winning formula. The next step may be to figure out how to offer your advice so that you can cultivate a market that can pay you for this.

Get paid for what you do

There is a mantra that states that whatever is worth doing, is worth getting paid for. This view may be slightly narrow-minded depending on a variety of circumstances, but it is always important to determine if the activities you are involved in should actually be producing money.

You can also look at making money using the ABC method we discussed earlier in order to ensure that your income is contributing to the accumulation of wealth.

Understand the hidden bottom line

A discount is usually given as a promise of conducting future business transactions. However, by offering discounts upfront, you are discounting yourself upfront by teaching your client bad habits. Clients will come to expect cheaper services or goods and they will tend to take advantage of you. It is fair to be negotiable in your dealings with people – but understand the real cost price and also the real limits in terms of what is non-negotiable.

In a negotiation you must not go below your bottom line. It is better to walk away when you reach the hidden bottom line and you realise there is no pleasing the other party without sacrificing your own profits. Never do business that does not bring profit.

Increase your ability to earn – educate yourself

Education is an investment that allows you to learn more about managing and growing your money power.

Lastly, the only difference between being poor and being wealthy is the extent of your knowledge, as well as the limits of your imagination. Real money power is available to those who know about financial concerns, but who also have the ability to visualise money power and let their thoughts translate into action that ensures the growth of their wealth.

Fuel your imagination today by teaching yourself the skills of money power as well as how to manage people and businesses, through your business studies.

Conclusion

Gaining money power is possible if you practice the tips highlighted in this newsletter. If you have the patience to save, if you can implement the financial planning and budgeting skills we discussed, if you can discover your expertise and if you work hard at cultivating your expert skills, while maintaining a healthy dose of imagination and innovation; this will ensure that you attain power over money rather than money having power over you.



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SOUTH AFRICAN INSTITUTIONS PROVIDING FUNDING FOR ENTREPRENEURS

The following is a short list of institutions that offer funding for entrepreneurs. It is not comprehensive. Government is in the process of restructuring and streamlining its funding programmes and is moving them from the Departments in which they are lodged to the Department of Economic Development. It is hoped that the process will result in easier, simpler and speedier access to funds from Government.

1. Business Partners Limited
Business Partners is an investment company for small and medium enterprises. The company invests between R250 000 and R15 million in SMEs across all sectors, with the exception of farming, on-lending and non-profit organisations.

Investment financing is offered for businesses at all stages of development, including start-ups, expansions, outright purchases, management buy-outs, management buy-ins, franchises, tenders and contracts. The company also manages a number of specialist funds, which provide investment financing for defined-profile entrepreneurs.

Business Partners also has a range of support services for the entrepreneur. This includes property management consultants, mentors who are allocated according to the company's needs and access to other expertise need to ensure the success of a business.
Contact:
E-mail: enquiries@businesspartners.co.za
Web: www.businesspartners.co.za
Tel: Cape Town: 021 464 3600
Durban: 031 240 7700
Johannesburg: 011 470 3111


2. Commercial Banks
The commercial banks have specialist SME divisions, providing finance for qualifying entrepreneurs. Visit the banks’ websites to find out about their products and services, and their criteria to obtain finance.

ABSA Bank: www.absa.co.za
First National Bank: www.fnb.co.za
Nedbank: www.nedbank.co.za
Standard Bank: www.standardbank.co.za


3. Khula Enterprise Finance
Khula Enterprise Finance Limited is an agency of the Department of Trade and Industry (DTI) established in 1996 to facilitate access to finance for SMMEs. It is one of the funds being transferred to the Department of Economic Development. Khula provides assistance through various delivery channels. These include commercial banks, retail financial intermediaries (RFIs) and micro credit outlets (MCOs).

Contact details for some of the Khula products are not available. Where this is the case, the following contact details can be used:

Contact:
E-Mail: helpline@khula.org.za
Web: www.khula.org.za
Tel: (012) 394 5560/5900
Toll free: 0800 118815

3.1 Small Business Growth Trust Fund
This non-sector specific fund is a partnership between Khula and Fabvest Investment Holdings (FABCOS). It provides:
• Finance start-ups, expansions, bridging finance and asset based finance to qualifying SMEs
• Qualifying SMEs with the necessary infrastructural support and resources
• Fosters entrepreneurship within the SME sector and
• Reaches out to SMEs in priority provinces of South Africa
• Migrates Black businesses from the informal sector to formal sector
Loans range between R10 000 and R3million per portfolio entity with a repayment period not exceeding 5 years.
Contact Details
Tel: (011) 421 2939
Cell: 082 901 2813
Email: info@sisonkefund.co.za

3.2 Izibulo SME Fund
The Izibulo SME Fund is a partnership between Khula and Metropolitan Life Limited and The Median Fund (Pty) Ltd. Its purpose is to:
• Provide early-stage funding to SMEs (improve access to finance);
• Provide SMEs with necessary infrastructural support and resources;
• Foster entrepreneurship for men and women in the SME sector;
• Reach out to SMEs in far-flung areas of South Africa;
• Encourage meaningful economic participation of historically disadvantaged South Africans;
• Invest in equity and debt, loans, loans convertible into shares (ordinary or preference shares);
• Purchase shares (ordinary or preference shares);
• Purchase debentures or convertible debentures (convertible into ordinary or preference shares);
• Purchase warrants, options and other securities of, or relating to portfolio companies;
• Provide consulting services, skills facilitation and development to portfolio companies;
• Provide working capital, expansion capital, the purchase of capital assets, refinancing of existing debt obligations;
Excluded investments include buy-back/purchase of shares from a third party in the portfolio company.

3.3 Identity Development Fund (IDF)
This non sector – specific fund is a partnership between Khula and Identity Development Fund (Pty) Ltd (IDF). Its objectives are to:
• Create long-term growth from profitable portfolio investments in SMEs
• Promote BEE (black women and youth)
• Provide both debt and or equity funding (50%/50%)
Repayment periods range between 3-5 years for start-up/early stage companies of R250 000 to R3million, emerging /MBO and expansion of R3million to R7.5million and R7.5million to R30million for community projects.
Contact Details
Tel: (011) 351 2900
Fax: (011) 351 8900

3.4 Enablis Acceleration Fund
The Enablis Acceleration Fund is a partnership between Enablis Financial Corporation SA (Pty) Ltd and Khula Enterprise Finance Limited. It is currently capitalised at R50m. Its purpose is to:
• Improve access to early-stage funding to SMEs
• Reach out to SMEs in remote/rural provinces
• Create new sustainable jobs.

It offers equity and or debt instruments over loan periods that do not exceed 60 months.

Eligibility:
• South African SMEs that are accredited by Enablis Entrepreneurial Network
• Black owned and women entrepreneurs for start-ups and/or expansion of the business.
• SMEs involved in all sectors - ICT, transport, tourism, agriculture and services industry.
• SMEs that need working capital and or asset finance.

3.5 Khula-Akwandze Fund
The Khula-Akwandze Fund (KAF) is a joint venture between Khula Enterprise Finance Ltd (Khula) and Akwandze Agricultural Finance (Pty) Ltd (Akwandze). Its purpose is to provide agricultural development loans to small and medium scale sugarcane growers and contractors within the sugarcane production value chain in the Nkomazi region of the Mpumalanga Province. The Fund is managed by Akwandze.

The following loan instruments are offered to meet financing requirements:
• Crop establishment/re-establishment
• Ratoon management (crop maintenance)
• Purchase and installation of above ground irrigation equipment
• Installation of fixed irrigation infrastructure
• Electricity supply
• Contractor bridging loans and
• Right-to-occupy (RTO) rental bridging loans.

Eligibility
The beneficiary must be a registered Mpumalanga sugarcane grower with the South African Sugar Association;
• Have a Cane Delivery Agreement (CDA) with Tsb Sugar
• Have authority to occupy the land they are farming (freehold, leasehold, right-to-occupy)
• Be a citizen of the Republic of South Africa
• Be black owned (>50% black owned) or black empowered (>25% black owned)
• Be viable and creditworthy, or
• A registered contractor with Tsb Sugar that provides services to growers (e.g. cane cutting and cane haulage).
In addition, the beneficiary must be:
• A citizen of the Republic of South Africa
• Black owned (>50% black owned) or black empowered (>25% black owned) and
• Viable and creditworthy.

Loan Size
Depending on the type of agricultural activity being financed, the maximum loan limits for the different loan instruments range from R1,300 to R15,500 per hectare.

Contact Details:
Akwandze Agricultural Finance (Pty) Ltd Tsb Sugar Mill, Mhlati Farm Malelane, 1320
Tel: Malelane - 013 791 1396 / Komatipoort - 013 723 4247
Fax:Malelane - 013 791 1175

3.6 Anglo-Khula Mining Fund
Anglo-Khula Mining Fund is a joint venture between Anglo American plc and Khula Enterprise Finance to provide financial assistance to junior mining projects.

Product
• Equity and or debt instrument with individual investments between R1m and R20m per project
• Equity stake will not exceed 49% of the issued share capital of the investee company.

Who qualifies?
• The owners of the investee company must be involved on a permanent basis, in the day-to-day management and operations of the investee company
• The owners of the investee company must contribute to the investee company from their own resources to ensure commitment and risk sharing
• The investee company shall comply with all necessary legal requirements as well as Anglo American’s standards and procedures regarding environmental and safety policies
• Deal flow of the investee company should emanate primarily from contracts between the investee company and Anglo and its subsidiaries.

3.7 Khula Credit Indemnity Scheme
The scheme provides access to finance to people who wish to start or expand small to medium sized businesses but do not have sufficient collateral / security to support facilities provided by participating banks. The scheme covers facilities from R10 000 to R3 million.

Who qualifies?
• Owner-managed businesses - the owner should be involved in the day-to-day running of the business on a full-time basis
• Business activity must be situated in the Republic of South Africa
• Business must be conducted with a profit motive and be economically viable
• The borrower must be able to repay the bank facility
• Individual or person holding a controlling interest must be a citizen of the Republic of South Africa
• Borrower with proven and sufficient entrepreneurship, knowledge, skills and experience directly related to the nature of the business
• The entrepreneur must provide own contribution towards a start-up or expansion of the business

Access is via any of the following retail financial intermediaries:
• Nedbank Ltd
• ABSA Bank Ltd
• First National Bank Ltd
• Standard Bank of South Africa Ltd
• Khula Regional Offices for assistance with a business plan development and/or advice on which institution supports the scheme. The financial institution will assess the business plan and facilities application in terms of its lending criteria.

3.8 Non-Bank Retail Financial Intermediaries
Non-bank Retail Financial Intermediaries are independent organisations or companies, which are lent money by Khula on a wholesale basis to on-lend to SMEs. Since RFIs are obligated to repay Khula, they use their own lending criteria to on-lend Khula`s funding. However, each RFI has to contribute towards the achievement of Khula`s developmental impact objectives, such as providing funding to SMEs which are black owned, women owned and from rural areas. Khula restricts its RFIs to on-lending a minimum of R10 000 and a maximum of R3 million per SME.

Purpose of RFIs
• To provide a funding alternative to SMEs, who would otherwise not be able to obtain funding from the commercial banks;
• To provide financing solutions to SMEs operating in niche markets, where traditional financial products would otherwise not be able to meet the financial requirements; and
• To provide Khula with a vehicle to facilitate access to finance to previously non-bankable SMEs operating in rural areas.

Geographic Spread of Existing RFIs
Khula currently has a network of non-bank RFIs represented in Gauteng, Kwa Zulu-Natal, Eastern Cape, Western Cape, Free State, Limpopo and Mpumalanga. Although there are RFI branches in Gauteng, Kwa Zulu-Natal and the Western Cape, priority is given to provinces other than the three latter provinces.

Contact:
E-Mail: helpline@khula.org.za
Web: www.khula.org.za
Tel: (012) 394 5560/5900
Toll free: 0800 118815


4. Communities Fund and Small Business Hub Programme and Small Business Hub network
The programme supports small and medium enterprises, facilitating entrepreneurial opportunities and the subsequent creation of jobs in communities located in the vicinity of Anglo American Mines.

Purpose
The fund assists entrepreneurs with seed and working capital through loan finance of up to R1 million per project at preferential interest rates. Beneficiaries must operate in Anglo’s business unit areas and comply with the black economic empowerment (BEE) criteria set by the Mining Charter.
The Communities Fund works hand in glove with a network of 13 Small Business Hubs which are staffed and financed by Anglo’s platinum, coal, iron ore and diamond businesses and are located in their respective areas of operation.
While the fund assists micro enterprises with seed and working capital, the hubs extend a guiding hand to entrepreneurs at walk-in centres.
These hubs offer practical support to emerging business owners and aspiring entrepreneurs in the form of business plan assistance and management training and coaching. The hubs also offer telecommunications, internet, printing and meeting facilities while giving entrepreneurs advice on the day-to-day running of their businesses.
The Communities Fund provides loan funding of up to R1 million per project. Businesses applying for finance must operate within 50 kilometres or within the labour sending area of an Anglo American mining operation serviced by a hub. The entrepreneur must be a member of the local community.
Contact:
SBH Team Lizette Moll Fax: 086 656 4713
National representative: Henry Snyman Tel: 083 527 2123

www.smallbusinesshub.co.za


5. Industrial Development Corporation - (IDC)

The Industrial Development Corporation of South Africa Ltd (IDC) is a self-financing, national Development Finance Institution that promotes economic growth and industrial development in South Africa.

5.1 IDC Gro-E Scheme: The IDC is investing R10-billion over the next five years through its Gro-E Scheme. It offers financial support to start-up businesses, including funding for buildings, equipment and working capital. It also funds companies wanting to expand provided that they show an ability to create jobs and operate in sectors supported by the IDC which include:
• Green industries, which include renewable energy, energy efficiency, pollution mitigation, waste management and recycling, and biofuels
• Agricultural value chain, including agro-processing
• Manufacturing, focusing on advanced manufacturing; automotive, components, medium and heavy commercial vehicles manufacturing; clothing textiles, footwear and leather, forestry, paper and pulp, and furniture; metals fabrication, capital and transport equipment; pharmaceuticals; plastics and chemicals
• Mining value chain, including downstream mineral beneficiation, mining and mining technologies
• Tourism and high-level services, which includes business process services and tourism
• Media and motion pictures, which has to do with media pictures production, the media value chain of broadcasting (radio and television), media expansion including new media, music value chain, and film production and animation and
• The knowledge economy, to do with health care, information and communications technology and biotechnology.

Criteria:
• Start-up businesses, including funding for buildings, machinery and working capital;
• Existing businesses for expansionary purposes;
• Businesses that demonstrate economic merit and have prospects of acceptable profitability to be able to service their obligation;
• For the duration of the funding period, businesses whose maximum cost per job does not exceed R500 000 relative to the total funding required;
• Broad-based Black Economic Empowerment certification from an accredited verification agency, where applicable; and
• Businesses operating or expanding in South Africa.

Loans are given at prime less 3% with a minimum of R1-million and a maximum of R1-billion per project.

Contact:
Email: callcentre@idc.co.za.
Website: www.idc.co.za.
Call Centre: 0860 693 888


6. South African Investment Network
This is an online platform that connects entrepreneurs seeking business funding with “angel” investors looking for investment. They maintain that they have access to R83 billion to invest. They connect global and local investors and entrepreneurs.

Contact:
Website: www.investmentnetwork.co.za.


7. Sasfin Private Equity
Sasfin provides private equity funding for entrepreneurs. It is a versatile form of funding that allows enterprises of any size to unlock their potential without burdening them with excessive debt. Sasfin Private Equity invests its own capital in the client’s business and also provides support and guidance to grow the value of the companies in which they invest in the form of strategic insight and, where necessary, operational, financial and governance input.

Contact:
Email: msegal@sasfin.com
Web: www.sasfin.com.
Tel: 011 445 8001.


8. The International Tourism Marketing Assistance Scheme (ITMAS)
ITMAS provides partial compensation to businesses for certain costs incurred for activities aimed at promoting tourism to South Africa. It assists South African companies to market their tourism products in foreign countries by way of brochures, manuals, multimedia presentations, computer-based marketing information or any other international marketing materials. Reimbursement is provided for the design, compilation, production, printing, reprinting and distribution of material to market the products internationally. Assistance will only be provided for materials that were specifically produced to market tourism products in foreign countries.

Contact:
Department of Tourism to register as participants in the scheme.

Email: callcentre@tourism.gov.za
Switch Board Number: 012 444 6000
Switch Board Fax: 012 444 7000

Physical Address:
17 Trevena Road
Tourism House
Sunnyside
Pretoria
0001

Postal Address
Private Bag X424
Pretoria
0001


9. African Contractors Finance Corporation (Pty) Ltd
A Miscellaneous Business Credit Institution

42 Bath Avenue
Johannesburg,
Gauteng 2196
South Africa

Tel: 011 256 9400


10. Business Finance Promotion Agency (BFPA)
The BFPA has several products.

10.1 Impact Bridging Financing
Funding is provided for emerging and established contractors in the form of bridging finance and performance guarantees for businesses in the construction industry.

10.2 Khula Emerging Contractors Fund.
Financnce is aimed at departrmetn of Public works and other government contracts associated with infrastrucuture development.

10.3 Smart Choice Order financing
This scheme does not require collateral and payments are ceded to the Business Finance Promotion Agency

10.4 BFPA Classic Loan
Term loans up to R150 000 over a maximum period of 3 years offered

10.5 Flexi Payroll Based Loan
Personal loans based on payroll deductions and salary advances up to R5 000

Contact:
Comsec Complex, Grahamstown Road, Sydenham
Port Elizabeth , Eastern Cape
Phone : 041 487 0190
Fax : 041 487 0192
www.bfpa.co.za

11. National Youth Development Agency: National Youth Fund
The fund aims to mainstream and integrate youth development for sustainable livelihoods by initiating, facilitating, implementing, coordinating and monitoring youth development interventions aimed at reducing youth unemployment and promoting social cohesion

Requirements:
• Youth (35 and younger) must hold greater than 50% of the shares in the company;
• Must be a previously disadvantaged South African youth
• The youth must be operationally involved in the business;
• Must demonstrate commitment to the venture;
• The venture must be economically viable.
• The following types of ventures are excluded from funding: Gambling, Tobacco Property development and illegal practices.

Contact:
Call Centre: Tel: 08600 96884 Fax: 086 606 6563


12. The Land and Agricultural Development Bank of South Africa (Land Bank)
The bank is a development finance institution (DFI), wholly owned by Government, whose mandate is to support, promote and facilitate the development and transformation of the agricultural sector. It has a responsibility to support Government’s efforts to increase access to land, provide support for emerging farmers and raise rural incomes.
Products and Services
12.1 Mortgage Loans, including loans to well-established commercial farmers or agri-businesses that own fixed agricultural property and want to buy land, consolidate their debts, and or other purposes linked to agriculture.
12.2 Special Mortgage Bonds for Farmers who were previously denied the right to buy land and/or who
o Have the potential to become successful farmers
o Own land in towns or cities can get Special Mortgage Bonds
o Are historically disadvantaged and are first time buyers of agricultural land
12.3 Medium Term Loans in the form of cash credit accounts. Clients’ financing are aligned with and according to their agricultural needs.
12.4 Installment Sale Finance which provides an option for farmers who want to buy movable farming assets and equipment.
12.5 Installment Sale Finance (Livestock)which offers clients an opportunity to purchase large breeding livestock (e.g. bulls, cows).
12.6 Establishment Loan for perennial crops, typically for establishing sugar cane plantations, citrus and deciduous fruit orchards, timber plantations and vineyards for table and wine grapes.
12.7 Short term (seasonal) loans which are tailored to meet important financing needs in the agricultural production cycle including the provision of advances for crop intakes, production requirements, production credit and other related services that includes the handling, manufacturing, packing, processing, storage, transport and marketing of agricultural products.
Contact:
Email: info@landbank.co.za

Tel: 012 686 0500

Open For Business - New small business profile interviews

Request: Am looking for new small businesses, less than 12 months old to profile...a journey into their lives. Media: SmallBusinessNews.co.za

Deadline 25 January 2013


Below I've compiled a list of questions to be answered:

1. How would you best describe your business in 50 words?
2. What inspired the creation of your business and when was it launched?
3. What problem is your business solving?
4. What is your profession by training?
5. Failure is part of running a business, what backup plan do you have in this regard?
6. Without startup capital there is no business, how is your business funded?
7. What sets your business apart from the crowd?
8. Where is the money in your business, explain your revenue stream?
9. Since trading, what milestone(s) has your business accomplished?
10. Selecting the ideal business address comes with its own unique challenges...what factors contributed to the choice of your current address?
11. Your business has to be running even when you're not around, what is the composition of your staff?
12. How important is branding for your business and what strategies have you employed?
13. Customers make or kill a business...how do you attract them?
14. Who is your business role model and why?
15. What are your long term plans for the business?
16. How do prospective customers get hold of your business?


Name: Muzi Mohale
Email: support@smallbusinessnews.co.za
Position: Blogger
Media: SmallBusinessNews.co.za
Beat: Business
Region: South Africa
Deadline: 01/25/2013