SME South Africa panel discussion at the Global Entrepreneurship Week (Festival) that took place in Maboneng focused on small business challenges and what can be done to overcome them.
Does South Africa have funding problems? How can we build a culture of entrepreneurship among the youth? These were just some of the issues tackled as SME South Africa hosted its GEW panel discussion ‘Building a culture of entrepreneurship’ at the Festival of Entrepreneurship.
The panelists were made up of entrepreneurs and thought leaders including Karabo Songo, MD and founder of Olive Communications, Stephen Read, MD and founder of incubation programme Field – an organisation specialising in grassroot-level entrepreneurship education – and Gareth Jane, Startup Technical Strategy Advisor at Microsoft BizSpark South Africa, who specialises in technical guidance for startups.
Do South Africa entrepreneurs have a funding problem?
The panelists all acknowledged that funding continues to be a challenge for many entrepreneurs. Read said while there is money available for entrepreneurs, access to it is a challenge. He suggested that entrepreneurs approach everyone they know, from the private sector to government institution like Small Enterprise Development Agency (Seda) and the Department of Trade and Industry (DTI).
“Knock on every door,” Read said. He also emphasised the need for entrepreneurs seeking funding to customise their business plans to what’s relevant to specific investors.
“Entrepreneurship has been sold from a handout perspective” – Karabo Songo
“Find out what your funders want from you more than anything else, that’s the business plan that’s needed.”
Songo echoed this sentiment, saying that investors are looking for a return on investment and that it was up to the entrepreneur to be clear about how they would achieve this.
He also said that many entrepreneurs often seek funding without a thorough understanding what they plan to do with it, and that the focus has to shift from seeking funding to offering great ideas, great services and products.
“The more you understand what you need the money for, the less you will need the money,” Songo said.
On promoting a culture of entrepreneurship among youth
South Africa has one of the lowest rates of entrepreneurship globally? The panel discussed what can be done change this. All three panelists highlighted the role of the individual in succeeding as an entrepreneur. Songo said that while the private sector and government had a role to play, it was up to the individual.
“Entrepreneurship has been sold from a handout perspective, rather than an initiative where you propel yourself to greatness,” he said.
Read said that it all comes down to the entrepreneur’s focus and determination.
“Entrepreneurs have the ability to keep going and failing, getting up and carrying on,” he said.
Jane felt that not enough was being done to tell the South Africa’s entrepreneurship story. He gave the example of Vinny Lingham, the South African techpreneur operating out of Silicon Valley in the US, who earlier this year completed a $50 million deal.
“We are not Silicon Valley, we are not Tel Aviv or London. We have to find a South African path. It will be different, I believe, but better,” he said.
The role of education in fostering a culture was also discussed. Read said he would like to see innovation being taught in schools “to encourage students to find new ways, their own ways to do something because that’s what you are going to do as an entrepreneur – find a gap and a solution.”
Songo said teaching entrepreneurship in the South African context would not only help to break the mould of the kinds of professions children are expected to enter, but also expose them to new definitions of entrepreneurship.
PARTNER CONTRIBUTION: SME SOUTH AFRICA AUTHOR: Lebohang Thulo
