Blog - Page 11 of 32 - Prime Solution

Incubation Support Programme Handbook

Date posted: 26.06.2015 | Author: Harry Bovensmann

Lack of understanding the business incubation concept is one of the main reasons that applicants fail to meet the criteria of the Department of Trade and Industry’s Incubator Support Programme (ISP). Therefore, DTI presented the South Africa Business Incubator Establishment Handbook. The handbook is a the result of a partnership between the department and the United Nations Development Programme (UNDP) and was launched in a bid to assist applicants to create business incubators in their communities. It aims to provide applicants with an overview of what needs to be understood when applying for the Incubator Support Programme (ISP).

Since inception, 225 applications have been received of which 134 were non-eligible and 32 were rejected by the adjudication committee, the minister said. Many of the applications received were not in alignment with the incubation programme. The discovery was that applicants did not understand what incubation was about and many were rejected because the applicant did not understand the criteria needed to qualify for the ISP.

Other reasons for not meeting the programme’s criteria were failure to team up with an industry partner and applications not being aligned with the programme. In addition to this, 14 of the 48 approved applications worth R222 million have been cancelled.

The handbook is a resource for anyone interested in establishing an incubator and is structured around four key questions which are what are incubators, how to choose the right incubation strategy, how to execute an incubation strategy and what support is available in South Africa and how can this be utilised.

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SMME: Funding key issue

Date posted: 11.06.2015 | Author: Harry Bovensmann

The main problems entrepreneurs face are finding customers, funding, a lack of guidance and entrepreneurs’ tendency to wear too many hats, according to a survey of over 900 start-up entrepreneurs. Seed Academy, a school for entrepreneurship, surveyed entrepreneurs who have been in business less than five years.

The results showed that while entrepreneurs faced key challenges, the majority were startlingly positive and motivated to grow and develop their businesses. These challenges confirm that entrepreneurial development should be aimed at providing business education, helping to create a network, offering tangible guidance to find customers and of course, preparation to raise funds at the most appropriate time for the business.

Funding emerged as a key issue. Only a small percentage of entrepreneurs fund their businesses from the vehicles formally established to support them. This raises questions regarding the accessibility and effectiveness of funding programmes.

Innovative funding mechanisms

The creation of innovative funding mechanisms is important. Pension and provident funds do not currently invest in early stage businesses, as their mandates prevent this and they are not incentivised to do so. They should be mandated to spend a small component (even as little as 0,5%) of their allowable 10% (under regulation 28 of the Pension Funds Act) on venture capital funds. When invested, this will create significant momentum for the entrepreneur ecosystem.

The growth of incubators and accelerators is becoming a powerful tool for entrepreneurial development and early-stage business growth in the ecosystem. Additional funds need to be allocated by Government to support incubators and accelerators which should be managed on behalf of Government by these entities. It is key that the incubators and accelerators be measured based on their success and performance as to the management of funds.

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GDP down to 1.3 % in first quarter

Date posted: 04.06.2015 | Author: Harry Bovensmann

South Africa’s Gross Domestic Product (GDP) slowed to 1.3% in the first quarter of 2015, Statistics South Africa (Stats SA) reported on Tuesday.

This was down from a 4.1% increase in the fourth quarter of 2014. The main contributors to the increase in economic activity for the first quarter of 2015 were the mining and quarrying industry (which contributed 0.8% based on growth of 10.2%,) finance, real estate and business services (which contributed 0.7% based on growth of 3.8%.)

According to Stats SA, the positive growth in mining and quarrying was due to higher production in the mining of coal and mining of “other” metal ores including platinum while the growth in finance, real estate and business services was due to increased activities in banking from financial intermediation services and equity, bond and other financial markets in auxiliary activities.

The wholesale, retail and motor trade, catering and accommodation industry also contributed to economic activity at 0.2% based on growth of 1.2%. Meanwhile, the growth in the wholesale, retail and motor trade, catering and accommodation industry was due to an increase in turnover in the wholesale and retail trade divisions.

However, negative contributions were recorded by the agriculture, forestry and fishing industry (-0.4%) and the manufacturing industry (-0.3%.) Economic activity in the manufacturing industry reflected negative growth of 2.4% due to a lower production in the following divisions: petroleum, chemical products, rubber and plastic products and wood and wood products, among others.

When compared with the same quarter a year ago, the economy fared better (expanding by 2.1% from the fourth quarter’s 1.3%), but this mainly reflects the impact of last year’s strike-inflicted base. According to Nedbank economists, the economy is still expected to grow by a subdued 2.2% in 2015 as a whole. This is helped by moderately firmer retail activity and some recovery in mining off last year’s low base. However, the upside will be contained by load shedding, lower international commodity prices and subdued global demand, said the analysts.

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SMS marketing for small business

Date posted: 21.05.2015 | Author: Harry Bovensmann

According to Text Marketer’s top ten mobile marketing stats 2015, 76% of people report that they will check their SMS/Text before an email; 70% of users feel brands can get their attention faster via SMS/Text and 64% of customers feel that brands must connect with them through SMS/Text. The majority of mobile users rarely leave home without their devices, meaning businesses are able to connect with their audience, wherever they may be.

Targetting is key

It is crucial that businesses ensure that they are speaking to the right target audience through the correct applications and platforms using accurate databases. This guarantees a well-received message and positive response. Once the target audience is profiled, customised messages should be crafted taking such elements as language, style, interests, age and environment into consideration. This will result in relevant and familiar messages that resonate with the recipient.

Make it interactive

With the competitive growth of smartphone usage, SMS, combined with voice and email, give businesses the perfect opportunity to engage with their audience using multiple touch points. This can also be supported by offering the recipient the option to respond at no charge. A message accompanied by a picture, link or video heightens interest and engagement.

Perfect your timing

It is very important for any business to know when and how many messages to send to their customers. Mmobile campaigns shouldn’t be an after-thought to a marketing campaign – they should be an integral part that are proactively created and scheduled. This gives the business control over the campaign and gives the customer a more or less idea of when to receive messages from the brand, which builds anticipation. With a limited budget it’s important that small businesses avoid sending out messages unnecessarily or at the wrong time which may encourage opt outs.

Campaign calendars are a great tool to use in this regard as all messages and mobile target lists can be scheduled.

Remember Opt In and Out options

Whether the business thinks that their message is unique and appropriate, SMS marketing relies on recipients to opt in. That means the target audience must first sign up to receive messages about deals and promotions before receiving them.

When a recipient opts in, it is certain that they are interested in the brand, the product offering or service. On the other hand, opt in also gives the business a clear view of who is interested or not interested. This saves time for the recipient and saves money for the business. Messages must have a clear and visible opt out and when a recipient opts out, they should not be bothered again.

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