11 April 2013

Success stories from the VW Business Support Centre in Uitenhage

The VW Business Support Centre in Uitenhage is one of the sites at which Raizcorp runs the ARIZE Comprehensive Enterprise Development (CED) programme. The following success stories from the VW Business Support Centre show the impact that Raizcorp's ARIZE CED programme can have on small businesses.

For more information about the ARIZE programme, visit the Raizcorp website at www.raizcorp.com.

Click on the captions of the images below to view each of them in full size.

Success Story: Sithembiso Foster of Ezethu Tours
Sithembiso Foster of Ezethu Tours

Success Story: Tanya Kisten of Khanyisela Training
Tanya Kisten of Khanyisela Training

Success Story: Ashwin Doolabh of Jags Quality Treats and Spices
Ashwin Doolabh of Jags Quality Treats and Spices

It’s not just about more entrepreneurs


South Africa doesn’t just need more entrepreneurs, it needs better entrepreneurs

South Africa is one of the more poorly-performing countries with regards to entrepreneurial activity. Of the South African population, only 9.1% are in the process of setting up a business or have started a business that is less than 3½ years old. Even though this figure is low, increasing the number of entrepreneurs will not automatically lead to economic growth.

According to the Global Entrepreneurship Monitor (GEM) Report, developing economies specifically need a healthy percentage of high-expectation entrepreneurs, which are entrepreneurs who plan on starting businesses that will employ at least 20 people. High growth entrepreneurs have been shown to generate a significant proportion of the new jobs, wealth, and taxes in the economy (Autio 2007).

Pitch & Polish has been established over the past four years to help solve this crisis in South Africa by developing a programme that helps entrepreneurs become more successful. This is a forward-thinking and strategic approach to stimulate entrepreneurial activity. The objective is to steer the country’s development towards commercially viable innovation.


Click here to go to the Pitch & Polish website



The purpose of Pitch & Polish is to nurture businesses; in concordance with the GEM report, they believe that establishing businesses within smaller communities there will be job creation, poverty alleviation and economic growth.

Business incubators such as Raizcorp play a pivotal role in stimulating entrepreneurship. Channelling the transfer of knowledge between established big businesses and emerging small enterprises can be solved with programmes such as Pitch & Polish.

A contestant at the Regional Pitch & Polish held in Secunda on 06 April 2013

Creating high-growth entrepreneurs is no easy task. Entrepreneurs need to be able to sell their ideas, raise funding and communicate effectively. Research has shown that 82% of the best entrepreneurs in the world are the main salesperson in their organisation. Unfortunately the large majority of entrepreneurs in South Africa don’t know how to pitch their ideas, business and themselves.

This is where programmes likes Pitch & Polish add great value, as they aim to address this problem by teaching entrepreneurs to deepen their understanding of their business and then to sell the idea. It is an interactive learning experience with instant feedback on how to better present their businesses. These real world skills are invaluable to any entrepreneur trying to start and grow a successful business.

Locally, entrepreneurs who introduce products or services that exhibit a range of innovation should be encouraged as they have the potential to significantly impact the employment growth and increase economic and social health.

Pitch & Polish audience members actively take part in the workshop and competition

“Pitch & Polish is the application of theory. There is an abundance of talent and innovation in smaller towns, and these entrepreneurs need access to knowledge in order to analyse their business and determine its viability. Then to be able to communicate their vision and strengths to seize opportunities that present themselves”, says Allon Raiz, a World Economic Forum member and CEO of Raizcorp.

Nelson Mandela’s words aptly describe the path to growth, “Education is the most powerful weapon which you can use to change the world”.

The winners of the Secunda Regional Pitch & Polish event

04 April 2013

R12 million business support and development available for 51% black-owned businesses

ACUMEN enterprise extension programme launched by Investec and Raizcorp


Investec and Raizcorp have partnered to provide business support and development worth R12 million to entrepreneurs. The partnership between Investec and Raizcorp allows selected entrepreneurs to take part in the ACUMEN enterprise extension programme.

Click here to apply for the ACUMEN programme

The innovative ACUMEN enterprise expansion programme will take 12 gifted entrepreneurs on a two-year programme towards increased profitability. ACUMEN is designed for growth-hungry entrepreneurs who require support to take their business to the next level. Valued individually at R1 million, the Raizcorp ACUMEN programme is open only to the most ambitious and tenacious entrepreneurs.

The ACUMEN programme consists of high touch entrepreneurial support and development valued at R1 million per selected entrepreneur over the course of two years.

Investec has chosen to partner with Raizcorp, an internationally recognised business and entrepreneurship development provider, to support and develop small business owners with high growth potential. Over a period of one to two years, Raizcorp manages to increase the profitability of over 95% of the businesses it supports.

Commenting on the partnership, Investec CEO Stephen Koseff said: “Entrepreneurship has always been integral to Investec’s culture and is embodied within our core values and philosophies, how we conduct ourselves and the activities in which we engage. Investec has always supported entrepreneurs, realizing the importance of the role they play in our economy. The partnership with Raizcorp is aligned with our strategy to support and develop small business owners with high growth potential.”

The 12 entrepreneurs selected for the programme will be assigned a dedicated team of five Raizcorp Guides, who will focus on strategy, finance, marketing, sales and personal development. These Guides have all been trained by the Raizcorp Guiding Academy.

Furthermore, entrepreneurs and their staff members will also have access to Raizcorp Learning, one of the incubator’s core offerings, consisting of courses and workshops tailored to the unique needs of entrepreneurs.

Applications are open for entrepreneurs who are active full-time in their 51% or more black-owned business. The business must already have been trading for at least 12 months with an average turnover of at least R50 000 per month.

Those interested in applying must fill in an online application before 17 May 2013. The application form is available online at www.raizcorp.com.

Investec’s backing of the programme will result in these entrepreneurs being able to realise their potential through the creation of a more attractive business profile, both for investors and procurement processes.
For more information, contact Raizcorp directly on 011 566 2000 or email Andisa Ngqwebo (andisan@raizcorp.com).

Raizcorp CEO Honoured Guest at Incubation/Enterprise Development Exhibition with Dr Rob Davies, Minister of Trade & Industry


On 22 February 2013, Raizcorp CEO Allon Raiz was an Honoured Guest of the American Chamber of Commerce in South Africa at an Incubation/Enterprise Development Exhibition, at which he participated in a panel discussion that included Dr Rob Davies, the Honourable Minister of Trade and Industry.

Click here to go to the American Chamber of Commerce in South Africa's website

Exhibition

The exhibition, which took place at the American Consulate in Sandton, showcased what is being done by American companies in terms of incubation and/or enterprise development.

The Minister of Trade and Industry was present to view and discuss the various exhibits with the business representatives, and he participated in a panel discussion along with other experts, including Allon Raiz.

The purpose of the initiative was to profile the contribution of American business to South Africa; to profile the projects that the businesses are involved in; and to enable companies who have not yet embarked on similar projects to benchmark successful and sustainable projects.

The Honourable Minister of Trade and Industry, Dr Rob Davies

Panel discussion

The panel discussion was based in the ongoing debate surrounding the value of business incubators within society. The Minister indicated that the government is supportive of incubators and the role they play in fostering the establishment and growth of small enterprises. This support is backed up by the recent announcement that the Small Enterprise Development Agency (seda) of the Department of Trade and Industry (dti) would be launching 250 incubators in eight provinces nationally. Over the past six years, seda has been able to establish 1 210 small businesses with its current 38 incubators in various sectors.

During the panel discussion, Raiz indicated his views on business incubation in South Africa. “Raizcorp defines business incubation as a combination of both physical and non-physical support to selected entrepreneurs offered by providers who have a provable intervention methodology that creates results.”

Raiz said that Raizcorp uses both growth and sustainability to determine the success of the businesses that participate in its programmes. “The way that many incubators determine their success is to look at how many of their businesses still exist three years down the line. Raizcorp uses a different metric, however. We look at four metrics: turnover, profitability, net asset value, and jobs.”

Overall, Raiz is positive about the role that incubators play in creating economic growth, but he sounds a note of caution: “In many instances, incubators are deemed to be the silver bullet, but they are certainly not. They are part of the answer, provided they are designed properly to achieve the desired results. Many incubators are not.”


Entrepreneur Carlson Dudtz in life-and-death struggle against the 96% small business failure rate


A new cartoon series by Allon Raiz, CEO of Raizcorp, presents an insider’s take on the daily trials and tribulations of entrepreneurs


Avoiding the 96%, a new cartoon appearing weekly on Entrepreneur Magazine Online and monthly in Entrepreneur Magazine, gives its readers a peek behind the scenes in the life of its main character, an archetypal entrepreneur: Carlson Dudtz, a candle manufacturer with greater entrepreneurial ambitions.

The title of the cartoon refers to the fact that 96% of South African small businesses fail within 10 years. In this difficult environment, the entrepreneurial journey is a lonely one. Avoiding the 96% is written from the perspective of entrepreneurs, and reflects how they see themselves, allowing them to relate to the challenges that Carlson faces.

Avoiding the 96% is the brainchild of internationally recognised entrepreneurship expert Allon Raiz, serial entrepreneur, CEO of Raizcorp, and member of the World Economic Forum’s Global Agenda Council for Fostering Entrepreneurship. Raiz has distilled his deep insight into the world of small business owners into these cartoons. In each strip, entrepreneurs and other readers are treated to the author’s wry view on the often mundane challenges that Carlson stumbles upon in the pursuit of his glamorous dream of owning and growing a successful business.

Meet Carlson Dudtz in Avoiding the 96%

The experience of writing two bestselling books for entrepreneurs, Lose the Business Plan and What to Do When You Want to Give Up, led Raiz to the belief that the stories of the day-to-day challenges that entrepreneurs face also deserve to be told. Raiz commented, “Like many entrepreneurial ideas, Carlson was born at 02:13 on a Tuesday morning, after an extremely long working day!”

The cartoons in the series fall into two broad categories. The first covers those that reveal an often unspoken truth about what entrepreneurs do to survive, and the other those that are simply situationally funny. “In my dealings with entrepreneurs, I’ve often come across stories that, apart from being funny, also encapsulate various aspects of what being a true entrepreneur really means, including resilience, hard work, perseverance… and being able to keep your sense of humour!”

Always entertaining, often enlightening, sometimes bittersweet: Carlson’s experiences of the highs and lows of his entrepreneurial journey has been published weekly on entrepreneurmag.co.za from February 2013.


11 January 2013

Raizcorp beneficiary company wins 2012 Zululand Chambers of Commerce and Industry Business of the Year Award


Five companies on Raizcorp’s ARIZE CED programme at the Richards Bay Prosperator were nominated for the Zululand Chambers of Commerce and Industry (ZCCI) Awards 2012 for: Emerging Business of the Year, Small Business of the Year (two nominees), Medium Business of the Year, and Tourism Business of the Year.


Smiso Investments, owned by Mamiza Makhathini, walked away with both the Medium Business of the Year and the Premium (Overall) Business of the Year awards.

Makhathini established her company in 2006 with a friend, and Smiso Investments has since grown tremendously, topping the R15-million turnover mark.

‘After only six years, Smiso Investments now employs 87 people with a full catering complement of chefs, servers, managers and administrative staff, and has secured lucrative catering contracts for Foskor, Sappi and the Richards Bay Coal Terminal,’ says Makhathini.

According to the Zululand Observer, Makhathini says one of the keys to the success of her business is that she only hires qualified and capable staff. ‘Qualifications are paramount. Too many businesses go under because people are hired out of emotion, and not according to the job description.’

‘I believe in positive competition, and stealing workers from a rival company only breeds negativity. On top of that, running a successful business is not just about the money, it is about making sure that your clients are happy.’ Makhathini says she made every effort to learn all she could about the catering industry. ‘If you want to run a successful business, you need to have certain skills, and it must be run in a professional way.’

‘So many businesses do not make it because their owners simply do not understand how to run a company properly, but there is help available.’

Makhathini is a firm advocate of programmes such as those run by Raizcorp, which help entrepreneurs understand basic business principles and equip them with the skills, tools and expertise they need to succeed. ‘I could not have done this without them,’ Makhathini said.

Award winners in Raizcorp’s ARIZE programme


2012 saw a number of companies in Raizcorp’s ARIZE programme being nominated for – and winning – major national industry awards. Congratulations must go to the following ARIZE programme beneficiaries and the corporate principals behind them:

Khomotso Choma, Turnkey Group (BHP Billiton Energy Coal SA) – winner of the Govan Mbeki Housing Award for the Best Informal Settlement Project of the Year 2012

Khomotso Choma - Raizcorp success story

Danny Tong, Investong General Products and Investments CC (T-Systems) – winner of the Business of the Year Gold Award 2012 for Service Excellence




Amelia Ramphadi: Amelia Women Project (FLSmidth) – winner of the Department of Trade and Industry’s Best Performing Quality Intervention 2012 award



National Pitch & Polish entrepreneurial competition winner is a “greentrepreneur”


Competition participants reflect the growing profile of social entrepreneurs in South Africa

The national Pitch & Polish entrepreneurial competition reached a thrilling climax at a glitzy final event at The Venue in Melrose Arch on 20 September 2012. The 2012 competition clearly reflected the rapid growth in South Africa’s social entrepreneurship sector, and in particular, the abundance of entrepreneurs who spy opportunity in environmentally friendly enterprises. All three of the finalists, Alan Butler, Bhongolwethu Sonti, and Criytone Revanewako, fell into this category of “greentrepreneurs”.

Out of the 174 online entries received for the competition and the venue-based wildcard entries, 25 entrepreneurs were selected to participate in the opening rounds. A further 9 entries battled it out on the airwaves during the wildcard round presented by SAfm, the Pitch & Polish media partner.

The 2012 Pitch & Polish finalists (L-R): Criytone Revanewako,  Bhongolwethu Sonti, and Alan Butler
The winner
Criytone Revanewako was selected by the final panel of experts as the winner for this year. His company approaches environmental issues from a recycling perspective, using slag generated by the ferrochrome smelting industry to produce economically useful products cheaply and sustainably, such as paving and building bricks, road construction material, roofing and flooring tiles, pre-mixed and ready mixed concrete, and numerous others.

Social entrepreneurship
The rise of social entrepreneurs and greentrepreneurs, such as these finalists, represents the growing awareness amongst South Africans of the importance of sustainability in all aspects of life, and therefore a bright spot in the country’s otherwise problematic economic outlook. Social entrepreneurship expert Bill Drayton, quoted in the Social Entrepreneurship Teaching Resources Handbook, characterises a social entrepreneur as, “someone who cannot come to rest, in a very deep sense, until he or she has changed the pattern of social concern across all society... they simply will not stop because they cannot be happy until their vision becomes the new pattern. They will persist for decades.”

Given the high potential for needed positive social and environmental change that these entrepreneurs represent, the Pitch & Polish programme developed and run by South African small business incubator, Raizcorp, is an example of how corporate South Africa can generate education and business development opportunities for smaller businesses, while ensuring that sustainable social development goals are also met.

The Final Panel of judges
Impact of informal business skills training
Bronwyn Echardt, the Pitch & Polish Programme Leader at Raizcorp, the small business incubator that develops and runs the programme around the country, attributes much of its success to its combined education and entertainment format.

Echardt said, “Research by Laurie Scholtz on the impact of social entrepreneurs’ education and business skills training, published in 2011, showed that only three forms of informal business skills training have a significant impact on the success of social entrepreneurship organisations, namely: business experience, networks, and workshops and conferences. Pitch & Polish is currently the only competition and workshop platform nationally that combines all three of these types of training.”

In addition to the intensive training that the competition entrants received at the free workshop events around the country, sponsored by Engen Petroleum (Pty) Ltd, 1 651 combined audience members received a full day’s expert training on the fundamentals of entrepreneurship.

Allon Raiz addresses the International Women’s Forum for the Economy and Society in Deauville, France


Allon Raiz, CEO of Raizcorp, was an invited member of the African delegation that attended the 8th Edition of the Women's Forum Global Meeting held on 10-12 October 2012 in Deauville (France), with the theme “Wanted: 360° growth”. This was the first time that a major delegation from the African continent attended the Forum.

Founded in 2005, the Women's Forum for the Economy and Society is the world's leading forum looking at major social and economic issues from women's perspectives. It promotes the empowerment of women world‐wide, as well as the networks of collaboration that enable women's voices to be heard with clarity and force.

According to the Women’s Forum, the African delegation was composed of 40 leading, visionary and remarkable women and men, from business, politics, sciences, social entrepreneurship, academia, the arts, media and philanthropy. The delegation represented this year’s special focus on Africa in the main programme.

The only man in the African delegation, Allon Raiz participated in a high-level panel discussion on how Africa can create more high growth entrepreneurs. Raiz indicated that attending the Forum has led him to a new understanding of the challenges women face in the workplace, whether as entrepreneurs or employees.

He said, “I thought I understood how the fight for equality in the workplace was progressing and the issues that underlie it. However, research presented at the Forum suggests that approximately 40% of women would prefer not to be promoted to C-suite level. This leads to interesting questions around why women don’t want these roles and whether there may be other ways of contributing at that corporate level.”

“This is a particularly important challenge to consider when other research indicates a strong positive impact on the bottom line when company boards reflect gender and cultural diversity.”

A range of debates on economic growth and gender issues in Africa included discussions among more than forty men and women from countries ranging from Ethiopia to South Africa. Discussions focused on models to sustain economic growth in Africa, which is forecast to reach 5% in 2012; the use of new technologies among African women; and gender stereotypes across the African continent.

Summaries and webcasts of key debates from the 2012 Global Meeting can be found at the website www.womens‐forum.com.

Raizcorp CEO participates in the World Economic Forum Global Agenda Summit


The 5th World Economic Forum (WEF) Summit on the Global Agenda took place in the United Arab Emirates from 12-14 November 2012. Raizcorp CEO Allon Raiz participated in the Summit as one of the 15 members of the WEF Global Agenda Council on Fostering Entrepreneurship.

“Being able to give voice to the realities of entrepreneurs in the developing world at this gathering of intellectual luminaries from all parts of the world was indeed a great privilege,” said Raiz.

The three-day Summit saw members from across the 88 Councils in the Network of the Global Agenda Councils collectively identify issues and solutions that address serious global challenges in areas such as finance and economics, geopolitics, the environment, society, and technology. The purpose of the Summit was to nurture the ideas and to frame the debates that will shape the agenda at the WEF Annual Meeting in Davos in January 2013.


The hive-like setting of the Summit
More than 1 000 of the world’s foremost experts from academia, government, business, civil society, and media convened to discuss the world’s most pressing issues. Working in a hive-like setting, the various Councils were encouraged to develop actionable programmes for the WEF.

“It was gratifying to see that our thinking in South Africa is quite advanced in some areas,” says Raiz. “In terms of programmes to foster entrepreneurship, the importance of context-specific scale was highlighted. It is important not to lose sight of the fact that entrepreneurship in the developing world is rooted on a local scale. It wouldn’t be truly meaningful to extrapolate an example of entrepreneurial thinking such as Bill Gates to the context of a developing country such as Mali without taking the scale of local economic activity into consideration.”

The deliberations at the Summit highlighted various themes and concerns that will be addressed to the world’s leaders at the 2013 Annual Meeting. These concerns are drawn together in the theme for the 2013 Annual Meeting: “Resilient Dynamism”.

Raiz said, “On a personal level, I was extremely proud to be able to work alongside several South Africans on various Councils. Being immersed in the highly academic yet output-focused atmosphere of the Summit was an unrivalled learning opportunity, which has allowed me to bring the latest thinking back home for the benefit of our entrepreneurs.”

To find out more about the ambitious scope of the WEF Global Agenda Council Network, click anywhere on the following graphic.