SANZAF ENTREPRENEURSHIP TRAINING CENTRE
We measure our success by the ability of clients to
run their households without the support of
welfare services
• Incubation type programme
• Teaching skills necessary to run small owner-managed business
• Delivered over seven weeks
• Candidates are referred by SANZAF’s Welfare Department or walk-in off the street
Usually we are the place of last resort after exhausting family, friends and community support structures
Problems include lack of finances, unemployment, low income, as well as emotional and psychological stress
OUR PROGRAMME
Training Funding
Mentoring
• Interviewed to understand their emotional / psychological state
• Aptitude and attitude towards running own businesses assessed
• Ability to read, understand and write English
• Ability to count and perform basic arithmetic calculations,
• Credit/Criminal clearance
PHASE 1 ASSESSMENT
A negative status often prejudices a candidate’s opportunity to contract business should they succeed in accessing funding
• Generating Business Ideas
• Entrepreneurship Skills
• Legal Issues
• Site Selection
• Finances
• Project Management
• Sales and Marketing
• Strategy
PHASE 2 TRAINING
The business skills component is structured and delivered such that each session is a building block towards the business plan which candidates submit after their training, i.e. in the seventh week
Internal Assessment• Business plans first assessed by
facilitators to ensure that they are appropriately completed
• Site visits also conducted to get a sense of fit between business idea and location
External AssessmentBusiness plans are then sent to independent external assessorswho conduct a detailed feasibility assessment
PHASE 3 BUSINESS PLAN
If both internal and external assessors approve then the business is funded
If not successful, candidates are given an opportunity to fix and improve their business plans and re-submit
Capital Funding• Up to USD 5,000 start-up capital• Including costs for fixtures &
fittings, equipment and stock • Payment direct to suppliers /
service providers on invoice
Safety-Net Funding*• Assistance for three months
with all household and business running expenses, including rent, electricity, transport, etc.
PHASE 4 FUNDING
The “safety-net” allowance can exceed the Capital Funding and helps candidates further capitalise their start-ups. If utilised correctly, candidates can potentially increase the value of their business by up to 50% over a three month period
Financial Performance Reports• Submitted fortnightly• Helps track cash flow and shows
evidence of business activity• Early warning signal for
potential failure and if detected early enough, appropriate business rescue can be initiated
Site Visits by Mentors • Conducted once a month• Helps verify report/performance• Opportunity to share challenges
PHASE 5 MENTORING
Although we have limited control over the candidates after funding them, we try and provide whatever practical support and advice we can by offering a mentorship service which also acts as a Monitoring and Evaluation (M&E) mechanism. This is done through site visits and timely submission of cash flow reports
• Over 800 candidates trained
• Over 450 candidates funded
• 60% success rate
• Success is due to the right mix of Training – Funding – Mentoring
• Delivered in simple language
• Based on experiential learning
• Short / Quick turn-around time
CONCLUSION
While the majority of candidates are still at survivalist level the programme affords them an opportunity to build reputational collatarol (and financial history) so that they can access funding from financial institutions if they require same
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10
20
30
40
50
60
70
80
2006 2007 2008 2009 2010 2011 2012 2013
Male 55% vs Female 45%
PROFILE OF CANDIDATES BY GENDER
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10
20
30
40
50
60
70
80
90
100
2006 2007 2008 2009 2010 2011 2012 2013
Under 25 25 to 40 Over 40
PROFILE OF CANDIDATES BY AGE
Average Age: (8%) (19%) (73%)
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10
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2006 2007 2008 2009 2010 2011 2012 2013
Submitted Business PlansFunded Business Plans
BUSINESS PLANS SUBMITTED vs BUSINESS PLANS APPROVED
75%
57% (43% of total)
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5
10
15
20
25
30
35
40
45
50
2006 2007 2008 2009 2010 2011 2012 2013
Successful Failed
AVERAGE SUCCESS RATE 60%
DISBURSED (2010 – 2013)
Amounts quoted in USD
Start-Up Capital Welfare Admin Total
2010 152,000 58,800 36,000 246,800
2011 154,400 128,000 42,000 324,400
2012 230,000 182,300 42,000 454,300
2013 16,300 130,000 48,000 34,100
Total 699,400 499,100 168,000 1,366,500
Tuck Shop Hair Salon Take Away Internet Café
Phone Repair Clothing Retail Bookkeeping Carpenter
Seamstress Tailor License renewals Gardening Services
Film Studio Sweet Distribution Shoe Repairs Safety Gear Supply
Quilt Manufacture Transportation Crèche Barber Shop
Laundromat Flower Decor Canteen Catering
Curtain Manufacture Upholstery Electrician Fruit and Vegetables
Photography Perfume Retail Hair-Care Products Hardware
GD. Printing Jewellery Mnf. Mechanic Car Spare Retail
Motor Trimming Bread Delivery Cleaning Service Health Care Products
Tie-Dying Appliance Repair Tool Hire Beauty Therapy
Stationery Supply Welding Panel Beating Candle Making
W/screen Repair Car Care Products 2ND Hand Car Retail Silk Screen Printing
Bakery Ozone Therapy Food Trailer African Artefacts
Stand Manufacture Acrylic Nails Art Studio Plumbing
Car Wash Buy and Braai Security Services Cement Resurfacing
Public Phones Dried Mango Prod. Diamond Evaluation Gardening Services
PROFILE OF BUSINESSES FUNDED
SANZAF BURSARY PROGRAMME
With over 92% pass rate over 95% of the candidates find
employment within a year of graduating.
BURSARY BIG PICTURE
• Average undergraduate degree costs USD 3,000
• 25% of income set aside for education (various initiatives)
• Bursary budget of USD 1,2 million (2014)
• 92% average pass rate over last 6 years
• 95% of graduates find full time employment within a year
BURSARY GENDER
42%
58%
0% 10% 20% 30% 40% 50% 60% 70%
Males
Females
• Selection based on merit – results• Percentages mirrors trends at Universities• Average Age = 22 years
BURSARY INCOME
>$1500= 5% >$1000 -<$1500 =23%
>$600 -<$1000= 30%
>$300 -<$600k= 18%
<$300 = 25%Income Bands #$000 - $100 13
$101 - R200 8
$421 - $300 16
$301 - $400 10
$401 - $500 7
$501 - $600 6
$601 - $700 7
$701 - $800 7
$800 - $900 15
$901 - $1000 12
• Priority given to lower income families with good results
BURSARY VALUE ADD
• At least 4 workshops held with students per year
• Students exposed to Islamic literature / content at workshop
• Students encouraged to attend short courses in
– Time Management
– Critical Reading and Academic Reading Skills
– Memorisation Skills
– Exam Strategies
– Listening Skills
– Stress Management
BURSARY PILOT PROGRAMME
• Mentorship programme only introduced in 2014
– Mentors drawn from past graduates and interested professionals (pro bono)
– Mentors assigned to students from same/similar field
– Mentors link with students using technology UNLESS student requests face-to-face contact
– Encourage excellence
– Provide advise and support