Kabokweni PACA: Kabokweni PACA: Opportunities for business, Opportunities for business, entrepreneurship and local entrepreneurship and local economic developmenteconomic development

What is PACA?What is PACA?

Participatory

Appraisal of

Competitive Advantage

Involving local stakeholdersTransfer know-how to local

stakeholders and businessesDo a quick scan of the local

economy Identify strengths, skills, talents

and opportunities Identify business and LED

opportunities

What have we been doing?What have we been doing?

Interviews with businesspeople and stakeholders in Kabokweni and Nelspruit

Miniworkshops with– hawkers– dressmakers– small business estate entrepreneurs– artists and crafters– group-based business projects– taxis– business start-ups– retail trade.

What is the structure of this What is the structure of this presentation?presentation?

Diagnostic of the economic structure of Kabokweni

Misperceptions about the economy of KabokweniBusiness opportunities in KabokweniSuggestions and proposals

– for business start-ups– for businesses– for business collaboration– for the community

Follow-up.

Diagnostic of the economic structure Diagnostic of the economic structure of Kabokweniof Kabokweni

Strong points of the Kabokweni Strong points of the Kabokweni economyeconomy

Vibrant industrial and small business estatesHigh purchasing power in the communityMany, many business opportunities

– unserved needs of families and individuals– unserved needs of businesses

Some competent entrepreneursSome individuals with very good skills and

business vision.

Weak points of the Kabokweni Weak points of the Kabokweni economy #1economy #1

Weak business acumen and skills – among persons who aspire to become

entrepreneur– among existing businesses– lack of entrepreneurial ideas– absence of innovative ideas.

Weak points of the Kabokweni Weak points of the Kabokweni economy #2economy #2

Lack of information– about local suppliers and customers

• there is still taxi transport to Durban!• there is a hardware shop at the MEEC

Industrial Park 1!– about good business practices– about sources of support and advice– about promising markets.

Strong points of the Kabokweni Strong points of the Kabokweni communitycommunity

Willingness to learn more Interest shown by many stakeholders in LED

initiativeHunger for change and actionStrong participation in our PACA miniworkshops.

Weak points of Kabokweni Weak points of Kabokweni communitycommunity

Very few associationsLittle contact, communication and exchange

between businessesExpectation that LED is about “funding”People believe in funding, not in

entrepreneurshipEnormous security problem.

Misperceptions about the economy of Misperceptions about the economy of KabokweniKabokweni

Misperception No. 1Misperception No. 1

Kabokweni is a rural area

Fact:Kabokweni is an

urban area, and even the rural areas around it are not very rural

Misperception No. 2Misperception No. 2

There is no money in Kabokweni.

Fact:There is actually a lot

of money and purchasing power in Kabokweni.

Misperception No. 3Misperception No. 3

Customers buy only in the big markets.

Fact:Customers buy a lot of

things locally, but only – if they are treated in

a friendly manner and

– if the shop has something interesting to offer.

Customers like variation and special offers.

Misperception No. 4Misperception No. 4

The lack of funds is the main obstacle when starting a business.

Fact:The main obstacle is

lack of entrepreneurial skills: – inability to identify a

promising, innovative product

– inability to identify a promising market segment

– inability to under-stand the customers.

Misperception No. 5Misperception No. 5

The purpose of a business plan is to get funding.

Fact:The purpose of a

business plan is to think about all the aspects of the business and understand all the risks and opportunities.

Misperception No. 6Misperception No. 6

You can start a business without the vaguest notion of what it involves.

Fact:To start a successful

business, you must understand your product, the production and the customer very well.

Misperception No. 7Misperception No. 7

Government is there to support unviable businesses and business ideas.

Fact:Government money is

taxpayer money. Taxpayers want their

money to be spent wisely, not to be wasted on unviable businesses and business ideas.

Misperception No. 8Misperception No. 8

Training will solve all the problems.

All artisans can be turned into entrepreneurs by doing basic business training.

Fact:Successful

entrepreneurship has a lot to do with personal features of the entrepreneur.

Many persons are not up to the challenge of being an entrepreneur.

Business opportunities in KabokweniBusiness opportunities in Kabokweni

Business opportunities in business Business opportunities in business servicesservices

BookkeepingBusiness plan advice

and assistanceApplication form

assistanceAssistance in

preparation of CVsBusiness information,

business directorySewing materialsLow-cost cleaningRecycling

Joint cooling facility for hawkers

For-profit SMME support centre

Motorcycle courier specialising in parts and supplies

Inventing and selling innovative business ideas

Skills development ...

Business opportunities in consumer Business opportunities in consumer productsproducts

EntertainmentSports Swimming pool Internet café Ice-creamSecurity-related products ...

Suggestions and proposals for Suggestions and proposals for business start-upsbusiness start-ups

Options in entrepreneurship, 1Options in entrepreneurship, 1

Acquire a business plan

Submit business plan for funding

Obtain funding

Acquire a BMW or Buggy

That won’t work!

You need a veryconvincing business

plan to qualify for funding!

Options in entrepreneurship, 2Options in entrepreneurship, 2

Purchase business plan

Submit business plan for funding

Use that money justlike a wage

Money is gone, thereis no business

That won’t work, either!

You cannot be an entre-preneur and

a wage-earner at the same

time!

Options in entrepreneurship, 3Options in entrepreneurship, 3

Go throughskills course

Use your skills toproduce something

Try to find customersfor your product

Can’t find customersfor your product

That won’t work, either!

You mustproduce

whatcustomers want, not what you

want!

Options in entrepreneurship, 4Options in entrepreneurship, 4

Understand the behavior of people

Identify businessopportunities

Match opportunitieswith your skills

Product demanded by customers

This is the onlypromising approach!

Suggestions and proposals for Suggestions and proposals for businessesbusinesses

Suggestions and proposals for Suggestions and proposals for businessesbusinesses

Put more focus on customer careResearch the needs of your customersMake yourself familiar with main trends in your

sectorGet innovative product ideas

– from TV soap operas– from magazines– use trips to identify new product ideas

Read! Read business books!

Suggestions and proposals for Suggestions and proposals for business collaborationbusiness collaboration

Suggestions and proposals for Suggestions and proposals for business collaborationbusiness collaboration

Monthly meetings of business sectors to exchange experience and discuss common problems

Joint hiring / sharing of security guardsOrganize meeting between taxis and small

businesses to identify unmet transport needs.

Suggestions and proposals for the Suggestions and proposals for the communitycommunity

Suggestions and proposals for the Suggestions and proposals for the communitycommunity

Develop a youth scheme to fight crime and conflict

Learn from the experience of other communities– in promoting business– in uplifting the community– in fighting crime and violence.

Follow-upFollow-up

Follow-up #1 -- Business Follow-up #1 -- Business opportunity: Prepare and market a opportunity: Prepare and market a Kabokweni business directoryKabokweni business directory

Potential entrepreneurs can take up this idea: – Walk around and identify businesses in

Kabokweni who want to be listed– Listed businesses pay a small fee = income of

entrepreneurThe Development Facilitation Unit in the council

is willing to offer some facilitation for an emerging business in this field

Persons who would like to take up the offer for facilitation must submit a proposal to Robert Malele until 13 December 2002

Follow-up #2Follow-up #2

Workshop with Business Development Manager of Kruger Mpumalanga International Airport (KMIA)

Who is invited?– Every business or emerging entrepreneur

related to tourism When and where?

– Thursday, 28 November, 10:00, Kabokweni Community Hall

Follow-up #3Follow-up #3

Open day at Regional Training TrustWho is invited?

– Everybody interested in skills developmentWhere?

– Located next to small business estateWhen?

– Saturday, 11 January 2003, 09:00

Follow-up #4Follow-up #4

First Kabokweni Business MeetingWho is invited?

– Existing businesses– SMMEs from Kabokweni– Entrepreneurs who are in business already

When and where? – 22 January 2003, 10:00, Kabokweni Community

Hall

Thank you for your attention!Thank you for your attention!

The PACA TeamThe PACA Team

Dr Jörg Meyer-Stamer (PACA-Consultant)Gabriele Trah (GTZ)Peter Mathibela (MRDP/GTZ)Dumi Mhlongo (MRDP/GTZ)Manie Ferreira (Mbombela Municipality)Robert Selo Malele (Mbombela Municipality)Elphus Maseko (Silulu Investment)