An initiative funded by the Flanders Government and implemented through the International Labour Organization

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1 An initiative funded by the Flanders Government and implemented through the International Labour Organization

2 Encouraging an entrepreneurial mindset among youth Stimulating innovative and sustainable enterprises Promoting an enabling environment for SMEs to grow and create jobs Better matching of demand for business development support among SMEs

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4 Competitive business plan competition aimed at lowering barriers to funding for high risk entrepreneurs (startups and expansions)

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7 TOTAL APPLICANTS Total Applications: 769 Women: 247 Men: 522 Youth: 531 FINALISTS Total: 121 Women: 50 Men: 71 Youth: 62 TOTAL WINNERS: 70

8 121 Finalists 23 Categories Best Youth Best Women Best Start-up Best New Best Emerging Best Existing Best Established Best Green Business Best Agribusiness Best Construction Business Best Manufacturing Business Best Social Enterprise Best Social Enterprise (Youth Focus) Best Social Enterprise (Training) Best Tourism Business Best Recycling Business Most Innovative Best ICT Business Best Business Idea Best Sports Idea Best Health Care Business Best Arts and Culture Idea Open Category 12 panels judging two categories 3 judges per panel Judges select top three in each category Final Awards Ceremony announces 1 st, 2 nd and 3 rd place winners in each category Each entrepreneur given 7 minutes to pitch idea Judges score entrepreneurs based on 9 criteria Clarity of Business Concept Understanding of Market/Demand Market Research Done Innovativeness of Concept Entrepreneur's Experience Entrepreneur's Motivation Credibility of Job Creation Sustainability of Jobs Clarity of use of Funds Quality of Financial Information

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10 Aimed at promoting an entrepreneurial mindset among inschool youth

11 How can the education system better prepare young people for the world of work and for a South African labour market where formal employment opportunities are scarce?

12 South Africa s TEA index is lower than other developing countries: South Africa 7.3% 9.1% 8.9% 5.9% Brazil 15% 14.9% 17.5% 15.3% China 13% 24.0% 14.4% 18.8% Of all the age groups, South African youth are least likely to start a business: yrs yrs yrs yrs yrs % 36% 24% 14% 6% % 24% 32% 19% 9% South African s perceive their entrepreneurial capabilities as the lowest of 10 sub-saharan countries Country Perceive d capabilit -ies *Quality of educatio n TEA 2012 Malawi 86% 65 36% Zambia 84% 39 41% Namibia 76% % Ethiopia 74% 85 15% Ghana 86% 62 37% Nigeria 86% 83 35% Botswan a 70% 55 28% Uganda 88% 69 36% South Africa 40% 140 7%

13 Are we teaching our children to think creatively? Are we giving them opportunities to fail and learn from them? When surveyed existing entrepreneurs in South Africa strongly disagreed that sufficient time is devoted to teaching entrepreneurship (and related skills): Schools devote enough time to teaching entrepreneurship Many people can manage new firms Are we encouraging them to take calculated risks? Are we teaching empathy? Can our children solve problems by thinking out-of-the-box? Are our teachers skilled in doing this?

14 What is startup&go? A South Africa-specific version of the International Labour Organization s (ILO) entrepreneurship education curriculum Know About Business (KAB). KAB has been introduced in more than 50 countries over the last 15 years Provides entrepreneurship concepts within the Business Studies course, with the focus more on entrepreneurship and less on business Where is it happening? Grade 10/11 learners at 60 schools in the Free State across five districts 60 Business Studies teachers have been trained and are incorporating the startup&go content into the existing Grade 10/11 Business Studies course Regular monitoring is conducted by subject advisors Grade 12 content is currently being developed These learners will be part of an ongoing longitudinal study into the effectiveness of introducing entrepreneurial thinking to learners while at school (a first in the world)

15 Self-driven learning

16 More cost-effective way to transfer skills and knowledge Self-learning driven Linked to eligibility for funding or training Easier to track an entrepreneurs path Supports classroom training by providing entrepreneurs with practical self-help and tools related to different business learning disciplines

17 Demand driven BDS on a user-pay basis Entrepreneurs provided vouchers to the value of 10% of grant funding

18 Grantees and other programme beneficiaries must engage in compulsory self-learning modules Use of BDS vouchers will be conditional upon completion of relevant self-learning content Disbursement 1 Disbursement 2 Disbursement 3 What constitutes legitimate and decent work Basic business finance Social networking as a marketing tool Choosing the best logos and branding Business strategies to grow my business The value of a website and internet-based marketing

19 Voucher system to support market-driven BDS Entrepreneurs must choose what to spend their vouchers on Before entrepreneurs can redeem vouchers, must undertake training in business topic and achieve Certificate of Completion BDS providers will only be paid on completion of agreed services BDS Menu - Logos and branding - Website design and development - Social networking as a marketing tool - Business plan development - Business finance - Designing performance management systems - Business Strategy - Franchising a business

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21 Designed for multiple agency users Helps to track impact and cost of interventions Helps to avoid double counting of jobs created Demonstrates where entrepreneurs need the most support Provides a central point to advertise training opportunities, workshops and events

22 Advisor logs in using user ID Creates profile of entrepreneur Indicates the support that the entrepreneur is seeking, e.g., training, business advice, attending a workshop or seminar Uses system to communicate information relevant to the entrepreneur s sector or business Providers the advisors with a system to track pool of entrepreneurs who are linked to the particular support

23 Example 1: User logs in using any smart device (mobile or desktop) User keys in data that is automatically stored on database to provide ILO and other institutional users (e.g., Detea) with knowledge about the SMEs activities User can also refer entrepreneur to other agencies for support, e.g., Seda, to assist in drafting business plans

24 EXAMPLE Software will automatically request users to input specific data about the entrepreneur and gather info about gender/age, etc. Dropdown menus will prompt user to choose descriptors Name ID Business registered? Y/N Name of business How long has business been operational? (dropdown) Business sector (dropdown) Size of business (dropdown) Type of support needed

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28 User Reports (performance management) SME Landscape (number of SMEs owned by females, youth, etc.,) Statistical data (number of businesses registered, number of zoning permits issued, number of businesses with BEE certificates, number with Tax Clearance Certificates, etc.) Impact (number of jobs created, new businesses started, amount of support provided, type of support, etc.)

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33 enterprize Challenge will consist of: GRANT FINANCE MICRO-FINANCE VOUCHERS

34 ILO GRANT FUNDING + = R100,000 ENTERPRISE DEVELOPMENT FUNDING POOLED FROM PRIVATE SECTOR BANK PROVIDES LOW RISK LOAN BASED ON SHARED INVESTMENT WITH ILO AND ED FUND LESS 10% TO BE ALLOCATED TO VOUCHER SYSTEM = R90,000 VOUCHER SYSTEM BOOSTS ENTREPRENEUR S BUSINESS CAPABILITIES, SKILLS AND KNOWLEDGE MICROFINANCE = = EQUIVALENT TO R10,000 R100,000 10% OF GRANT ENTREPRENEUR RECEIVES BOTH GRANT FUNDING AND A CHANCE TO DEVELOP TRACK RECORD WITH FINANCIAL INSTITUTION

35 Free State and KZN Provinces

36 DESIGN CHALLENGE SPONSORED BY ILO, CUT AND NEDBANK Calls for proposals from engineering students and faculty to present innovative designs Engineers matched with MBA students to present business case to panel of experts

37 Engineers present designs to panel of MBA students and academic experts MBA students select designs that have commercial potential MBA students develop business cases and present these to panels comprised of business and sector experts Panel selects top ten business cases for funding MBA students whose cases win receive recognition and awards Engineers with winning business cases are enrolled in the Science and Technology Park Incubator Incubator supports engineers over a period of three years RESULT INNOVATIVE AND SUSTAINABLE BUSINESSES

38 CO-SPONSORED BY DETEA, CUT AND STANDARD BANK Transversal caterers (53) will compete in a cooking contest to win equipment and cash awards Winning caterers will be enrolled in incubator to establish a restaurant Restaurant model will transition to franchise to open other outlets in province ILO to provide grant funding/micro-finance to selected winners CUT to enroll in incubator and provide dedicated training programme funded by Standard Bank Detea to provide winners with vouchers to purchase catering and restaurant equipment

39 Caterers compete in selected categories, e.g., starters, desserts, main courses A panel of food experts judge the foods presented Caterers can work in teams Cooking takes place on CUT s campus at the Hotel School Those selected receive a combination of cash and kitchen equipment to expand their businesses

40 Outcomes Catering skills improved Catering businesses expand to include restaurant Successful restaurant models can be replicated or franchised More jobs created Ten caterers selected for awards All caterers enrolled in virtual incubator to support the expansion of their businesses Caterers attend courses at Hotel School to help them improve and hone their cooking and presentation skills Caterers are assessed during this period and those with the most potential will be invited to establish a restaurant Caterers will again be assessed one year after restaurant is in operation to determine potential for franchising High potential caterers will be mentored by Development Franchising to develop a franchise model and market the concept to other catering groups

41 Youth Innovation Challenge in conjunction with Durban Innovate Design Challenge with support from Durban University of Technology and Department of Economic Development Other possible Challenges: Green Construction Challenge Best New Tourism Business Challenge

42 SEDF to be more focused on Market-driven Challenges and other initatives Market-driven business development support Encouraging more self-driven learning to achieve practical business knowledge and skills Building capacity of provincial and national structures to capture data about SMEs to assist in Gathering statistics Measuring performance Measuring impact

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