VENTURES AFRICA – Africa’s fifth-richest man Dr. Mike Adenuga Jnr. yesterday rewarded the Nigerian national football team, Super Eagles, with $1 million for winning Africa’s biggest football tournament AFCON 2013.

According to a local newspaper The Nation, the Nigerian billionaire businessman announced the donation shortly after the team’s 1-0 victory over Burkina Faso’s Stallions.

Adenuga gave the team’s coach Stephen Keshi, $200,000 cash. He also said that he would take over the payment of Keshi’s 5 million naira ($32,000) salary from March.

Africa’s richest man Alhaji Aliko Dangote earlier gave Super Eagles 130 million naira ($827,000), and promised more donations should the team win the African tournament.

The Nigerian president Goodluck Jonathan, will also host the team on Tuesday at the Presidential Villa, where it is expected the government would reward the team members.

Globacom (GLO) Chairman Mike Adenuga, has been an avid supporter of Nigerian football over the years. His telecom company revived Nigeria’s professional football league after signing several multimillion dollar deals to be the official sponsor of the league almost a decade back.

In 2012, GLO reiterated its commitment to Nigeria Premier League (NPL) with a $2.3 million signing.

Editor’s Note – Last year, Mark Mobius, a renowned emerging markets investor and Executive Chairman of Templeton Emerging Markets Group announced that there may be up to 200 hidden billionaires in Africa. He’s probably right. VENTURES AFRICA’s Intelligence unit is on a mission to traverse the continent and uncover some of these billionaires you’ve never heard about.

VENTURES AFRICA – There’s a new dollar-billionaire on the block, and he’s Nigerian.

Jim Ovia, 58, made his fortune providing financial services to Nigeria’s richest middle class. He is the founder and largest individual shareholder of Zenith Bank, a $4.5 billion (Market Cap) financial services conglomerate after a successful stint in finance in the United States.

Banking was always in Jim Ovia’s blood. Even before he completed his Bachelor’s degree in Business Administration from Southern University Louisiana as a teenager in 1977, he had already enjoyed a stint as a clerk in Barclays Bank, DCO (which now operates under the name, Union Bank). After obtaining his MBA from NorthEast Louisiana University in the United States in 1979, he joined International Merchant Bank as a financial analyst, subsequently rising to become a senior manager in 1987.

In 1990, he co-founded Zenith Bank in Nigeria. Within two decades, Ovia transformed Zenith from a small commercial bank into a fully-fledged financial services conglomerate with operations in Investment, Private and retail banking, staff strength of close to 4,000 people and assets in excess of $8 billion. He was Chief Executive of the bank from 1990 to 2010 when he was compelled by the Central Bank of Nigeria to step down following a directive limiting the tenure of bank chiefs to 10 years.

But Jim Ovia is still the largest individual shareholder of the publicly-listed bank. Through his own name, Ovia owns over 2.7 billion shares (which translate to an 8.75 percent stake in the bank). That stake is currently worth over $360 million.

In 2007, while he was still serving as CEO of Zenith, Ovia founded Visafone - a Nigerian mobile and fixed telecommunications provider. Visafone has become a runaway success. The firm has amassed a subscriber base of about 4 million and is worth at least $400 million according to data compiled by VENTURES AFRICA’s Intelligence unit and our Investment Banking analysts. Jim Ovia owns the company completely. Add these to Ovia’s ridiculously expansive real estate portfolio consisting of dozens of landmark commercial and residential properties in some of Nigeria’s swankiest neighbourhoods (such as The Civic Center in Victoria Island, Lagos) and Aquamarine, an exclusive boat club catering to Nigeria’s richest folks and Jim Ovia is conservatively worth $1.1 billion. By VENTURES AFRICA’s estimates, Jim Ovia is the fourth Nigerian to legitimately attain USD billionaire status after Aliko Dangote, Mike Adenuga and Folorunsho Alakija.

The Nigerian billionaire shows no signs of slowing down. Last November, Ovia’s newly-formed Quantum Luxury Properties signed a multi-million dollar deal with Marriott- the New York-based global hotel group to develop a 150- room five star hotel on the Ozumba Mbadiwe Waterfront in elitist Victoria-Island, Lagos. Construction of the property is expected to kick off later this year.

Ovia is as philanthropic as he is wealthy. Last year, he donated $6.3 million to assist the Nigerian government in its relief efforts for the rehabilitation of victims of the various flood disasters across Nigeria last year. He also runs the Youth Empowerment & ICT Foundation, a non-governmental organization which encourages young Nigerians to embrace information & communication technology (ICT) as a tool for socio-economic change.

Jim Ovia refused to return phone calls to discuss his wealth.

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VENTURES AFRICA – First of, great companies don’t just create great brands, they also create movements. Indeed, it’s always dangerous to make direct business analogies from sport, nevertheless, there are some useful things to learn about brand equity from Kaizer Chiefs. Still, with the majority of the continent hoarse from shouting, urging their teams to glory or to new depths of despair at the AFCON, it dawned on me that this week the Under 30 CEO had to diarize information about brand equity.

One football club from Soweto in Johannesburg, had fascinated me with how easily it managed to leverage the success of its brand as a platform to enter the landscape of a new sport,that is 7’s rugby, whilst managing to maintain the same hype that surrounds the football brand.

Certainly, the club has managed to leverage the success of its brand to create a platform for new products thereby sampling the benefits of having a powerful brand, whilst continuing to be the trendsetter in South African sport. This tremendous value attached to the brand by the paying customers is brand equity and it’s an intangible asset.

Interestingly, they even put together a 7’s Rugby technical team comprising, team coach- Gcobani Bobo, a former Springbok (National Rugby Team player), team manager- Makhaya Ntini, a former national Cricket team player, and team captain- Breyton Pulse, another former Springbok, who are easily recognizable to the rugby community.

Already, I can hear grumblings of discontent, “we don’t have the same marketing budgets or financial resources like them, in addition, the economic climate is currently hostile and we can’t afford brisk spending,” are always the major reasons that emanate from the minds and mouths of most entrepreneurs. However, brand equity is not created overnight. Building brand equity requires a significant effort; you need to invest strategically in market education and the communication channels that you use. Fortunately, the costs of communication have been significantly reduced with the advent of the excessive use of social media,and the social media evolution has become the court of public opinions. Furthermore, the brand will appreciate in value through market share growth, economic growth in profit margins.

In “Managing Brand Equity”, a paper published in 1989, Peter H. Farquhar outlined the most notable stages that are required in order to build a strong brand, as follows:

- Introduction- a hero (quality) product should be introduced with the intended strategy of using the brand as a platform from which you can launch future products. A positive evaluation by the consumer is important and augurs well for the organization.

- Elaboration- a brand should be easy to remember and develop repeat usage. There should be accessible brand attitude at all times, that is, the consumer should easily remember their positive evaluation of the brand.

- Fortification-the brand should carry a consistent image over time to reinforce its place in the consumer’s mind and develop a special and lasting relationship with the consumer. Brand extensions can further fortify the brand, but only when the related products have a perceived fit in the mind of the consumer.

Nigerians are fascinating sometimes, when they embark on any career path they become world class, think Ngozi Okonjo-Iweala, D’Banj, Austin ”Jay-Jay” Okocha etc. These are recognizable names globally; they have managed to create brand equity for themselves by being memorable, and more easily recognizable. Furthermore, the superiority and reliability of them producing a scotching album or a captivating performance on the football pitch is what endears or what endeared them to the global populace, because of the positive association they managed to instill in the minds of people. Not to forget, Africa’s richest man,  Aliko Dangote, who is also among the World top 100, always unwillingly trouble statisticians and wealth teams of publication, who have to endure the pain of going through the same old mundane ritual of validating the movements in their net worth.

Brand Equity describes the value of having a well-known brand name, based on the idea that the owner of the well-known brand can generate more money from products with that brand name than from products with a less well-known name, as consumers believe that a product with a well-known name is better than products with less well-known names, according to Wikipedia. One of the most valuable assets a company can have is brands;and brand equity is one of the factors that have the potential to increase the financial value of your brand.

Normally, when a brand begins to embody the promise about the goods that it identifies- usually a promise pertaining to quality, performance, for example, this can have an influence on consumers’ choice among competing products.

Another case in point, which also validates the importance of positive brand equity, is how Kaizer Chiefs (‘Amakhosi 4 life!’ as loyal fans call them) have also managed to offer insurance products that are not doing badly on the market because in the eyes of the paying customers, the products can be associated with their existing and successful brand, and there is a lower risk of failure from their perspective. Noteworthy is the fact that another real return from having a powerful brand name, is the club’s monumental sponsorship deal with its sponsor Vodacom sealed last year, which could be north or south of R500 million ($57 million) over 5 years, depending on whom you want to listen to and believe.

Interestingly, Kaizer Chiefs have managed to ensure that the brand equity that they borrowed to extend the brand name to the other initiatives that they undertook, didn’t dilute the original brand equity, which is an unnecessary pitfall of brand extension.

Add to that Kaizer Motaung Snr, the founder, has become a personal ambassador for Kaizer Chiefs’ approach both inside and outside the organization.

You can imagine the free publicity the club would generate by rightly making an appearance at the FIFA World Club Championship, a springboard to sealing the status of your brand globally, despite the fact that the Soweto Derby– a match against their arch-rivals Orlando Pirates, is broadcast globally and is a useful brand awareness campaign. Obviously, Kaizer Chiefs has the strongest football club brand in South Africa, and have been positioned as a premium brand, the consistency and authenticity of their products is never in doubt, and the consumer’s perception of the brand is legendary in South African sport. However, it wouldn’t hurt them as a club if they could put together concrete plans to join the annual pilgrimage to the club extravaganza, whose sole invitation card is only available to the African Champions League winners. Unfortunately, the bureaucrats of world football won’t aim a friendly smile in your direction if you try to gate crash the party on your own terms other than the one alluded to earlier because they can only accommodate one African club at the annual extravaganza.

Looking ahead, an enterprise should focus on creating brand equity, and then work out how to invest in the brands that create an advantage. Surely, lack of brand equity will never give you an insurmountable advantage over your competitors, and the ugly fantasy of stagnation of your business will become real. This phenomenon in no way undermines equality of opportunity.

VENTURES AFRICA – Her countenance and demeanour, her confidence and wisdom; there’s something about a strong, influential woman. Strong women that hold the power to make important decisions are becoming with increasing frequency, the norm rather than the exception in everyday African society and business. Leadership, passion and vision no longer wear a purely masculine face and scores of African women are now counted among the founders of the amazing companies that are contributing to Africa’s development. Here are 7 African women, who founded remarkable companies, chosen for their innovativeness, courage, and contribution to economic development and commitment to integrity despite incredible odds:

Divine Ndhlukula, Securico Services, Zimbabwe

One of Africa’s most successful female entrepreneurs, Divine Ndhlukula is the Director of Security Operations (Pvt) Limited, one of Zimbabwe’s largest security groups. Always a businesswoman, Divine did everything from selling clothes to renting out high-capacity vehicles to farming. After a few small successes and one near-fatal failure, she began Securico Services, now a subsidiary of the group, in her small cottage with four employees. By taking advantage of a huge quality gap in the securities industry, she began providing customised quality security services to businesses and steadily, the business grew. Over the next 12 years, she grew the company from 4 to over 3,500 employees. The firm has since become the largest employer of women – having close to 1000 women on the work force – many of them single mothers. Although Divine’s ‘no bribe’ policy cut her off from many government opportunities, her business has grown consistently as has her reputation. She is a recipient of numerous national and international awards including the prestigious Africa Awards for Entrepreneurship in 2011.

Njeri Rionge, CEO Wananchi Online, Insite Limited, Ignite Consulting, Business Lounge, Kenya

Njeri Rionge began her working life as a hairdresser but she always had bigger entrepreneurial dreams. At 19 years old, she began her first business as a yoghurt retailer and soon began trading luxury goods as the opportunity arose. In 2000, she co-founded Wananchi Online, an affordable internet service provider for anyone who wanted to access the internet. Wananchi became East Africa’s first internet service provider oriented towards the mass market. She has since turned Wananchi Online into Wananchi Group, the region’s leading provider of cable television, broadband internet and internet-based phone services. She is also the founder of Ignite Consulting, a business consultancy; Ignite Lifestyle, a health care consultancy; Insite, one of Kenya’s most successful digital marketing companies; and Business Lounge, Kenya’s leading start-up incubator. Njeri Rionge is the quintessential serial entrepreneur, passionate about start-ups. She is widely acclaimed as a speaker and writer, sharing her entrepreneurial experiences with young aspiring entrepreneurs.

Jalila Mezni, Société D’Articles Hygiéniques (SAH), Tunisia

Jalila Mezni is the co-Founder and CEO of Société D’Articles Hygiéniques (SAH), Tunisia’s leading manufacturer of diapers, tissues and feminine hygiene products. Together with her ex-footballer husband, Mounir el Jaiez, Mezni began the business in 1995. Jalila left her job as the Vice President of a Tunisian bank to start SAH, leaving behind the bank’s bureaucracy and limited impact. Despite a difficult first few months, SAH soon began to gain a share in the feminine products market and by 2012, her company laid claim to over 45 percent of the market for feminine products and diapers. The company has since grown from 24 employees to over 1,000 and from one starting factory in Tunisia, to others in Algeria and Libya. Jalila Mezni envisions a future where SAH continues to expand and create jobs in a world region ravaged by unemployment and political instability, and she is working towards it. She was a finalist for the 2012 Africa Awards for Entrepreneurship

Tabitha Karanja, Keroche Breweries, Kenya

Tabitha Karanja broke an 87-year old spell when she announced that her successful alcohol production company, Keroche Breweries, would be producing the first ‘truly Kenyan’ beer, Summit Lager. A daring businesswoman, Tabitha went into the fortified wine industry with her husband in early 1997 and for over a decade battled with large multinationals and fierce competitors that used both intimidation and brute force to push her out of business. Against all odds, Keroche Breweries not only reinvented itself but became the first Kenyan manufacturer of beer. Her enterprise has grown from a small factory with three rooms to a multi-million dollar facility that employs hundreds of Kenyans. Keroche beers now claim 20% of the east African beer market, a market once considered impenetrable. In 2010 she was awarded the Moran of Burning Spear (MBS) award by his Excellency President Mwai Kibaki for her efforts to liberalize the Kenyan liquor industry.

Ola Orekurin, The Flying Doctors, Nigeria

Doctor Ola Orekunrin is the founder of West Africa’s first emergency air ambulance service, The Flying Doctors. Raised in the United Kingdom by foster parents, Dr Orekunrin became widely known for becoming England’s youngest doctor at age 21. In a tragic loss, one of her younger sisters died from a sickle cell anaemia crisis. Ola knew that her sister’s death could have been prevented if there had been adequate emergency care and an air ambulance, so setting out to reduce the numbers that die in the same manner, she started The Flying Doctors. Despite the enormous challenge of gathering both government and private support, overcoming rejections and raising funds, Ola has established a business of great social impact. She is the recipient of several awards and honours.

Ndidi Nwuneli, LEAP Africa, AACE Foods, Nigeria

Ndidi Nwuneli is a household name in Nigeria and Africa. She is the founder of LEAP Africa, an organisation committed to developing “an army of committed change agents”, young men and women, business owners and social entrepreneurs that are focused on making a difference in their countries and communities. With a focus on Leadership, Effectiveness, Accountability and Professionalism, LEAP has transformed thousands of young people and led to the initiation of thousands of change-projects across the country. LEAP is also a known publisher of leadership literature. After handing over the reins of the organisation to the new Executive Director, Ndidi went on to found AACE Foods, an agribusiness and agro-processing company. By sourcing, processing and distributing fruits and vegetables within West Africa, the company improves nutrition levels, aids farmers and creates jobs. Ndidi’s commitment to social and economic transformation through leadership and entrepreneurship sets a high standard for African women.

Susan Mashibe, TanJet, Tanzania

Born in Kigoma, Tanzania, Susan Mashibe decided early in life she would fly. She dreamt of life as a Delta Airline 777 Captain, traveling the world. Yet circumstances surrounding the September 11 terrorist attacks brought her back to her homeland, jobless and with only prospects for being underemployed. At the suggestion of a South Africa client, Susan turned her skills and experience as Tanzania’s only aircraft engineer and FAA-certified commercial pilot into TanJet, a private jet logistics firm. TanJet provides services for companies and individuals that own and operate private jets and her clients include Fortune 500 company executives, military flights, monarchs, Heads of States and celebrities. In 2011, she was selected to participate in the Fortune/US State Department Mentorship programme for promising women global leaders. She continues to expand TanJet’s operations and inspire young women to pursue careers in aviation.

These are only 7 of the thousands of African women who founded amazing companies. Do you know one? Please comment below.

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VENTURES AFRICA – Brian Tracy once said,”You work eight hours per day for survival; everything over eight hours per day is for success.” And Andile Khumalo made a candid remark not too long ago when he said, ”Over my years in business, I have grown to appreciate, immensely, the art of DOING. Most entrepreneurs want to see themselves as the Thinkers, the Strategists, and the Innovators. Nobody ever wants to be the Doer.”

Entrepreneurs might have an appetite for risk taking and wealth generating but what drives them and distinguishes them from an over achieving employee is the desire to create. Ownership equates to wealth creation.

Most employees have financially crippling debts because of the belief that a higher salary guarantees their net worth. When you drive that latest sports car funded by the bank, in reality what it means is that the bank is letting you drive their car or have their asset on a temporary basis, if you miss one or two repayments you are doomed, the bank can repossess their car or asset depending on your relationship with your banker.

Don’t get me wrong; let’s get honest, a salary does not represent your net worth, you are in actual fact owing a company, services in exchange for monetary reward. You owe them services until the end of the month for them to pay you. Without ownership of the means or factors of production the best you can achieve is a relationship of providing your service in order to receive payment for the productivity that you have achieved.

There is nothing wrong with being an employee. However, for instance, when we say Bill Gates, Warren Buffet, Carlos Slim Helu, Patrice Motsepe, Aliko Dangote, Strive Masiyiwa etc’s net worth is so much, we basically mean that their assets minus their liabilities is worth so much.

Therefore, realistically, what makes the risk takers and wealth creators thick?

Entrepreneurs have mastered the fact that feelings and motivation don’t produce results, only action is something that will produce it. For example, knowledge and creativity can’t help you to become successful if you don’t take the first step to start your business or own factors of production.

Everyone has knowledge and is very creative, persistent and patient, however the differentiator is that most of us are not entrepreneurs; we are working for another company or public services. We represent potential of being entrepreneurs because of our lack of willingness to take action.

Mindsets should move from “I can’t do that“, to one of “I can do that.” Entrepreneurs move past the dream stage and create new horizons for humanity. A vision, inspiration is the defining image of an entrepreneur. The vision should be backed by a thirst to acquire the ability to learn what is needed to make that vision become a reality.

Money is a by-product of entrepreneurship. The desire of entrepreneurs is to create change and growth. The main reason why most start-ups fail is because not everyone who starts a business is an entrepreneur. Most do it out of desperation, because of the desire to make a quick buck. A desire to make a quick buck not backed by a want to create change and growth is speculation.

Do you think Edison would have made 10,000 attempts to create a light bulb that burned for several days if his objective was a quick buck? However, some speculators become successful entrepreneurs accidently. The power of effecting change is more intoxicating, especially at a time when entrepreneurship is a viable option for job creation in most of the economies whose growth is being hindered by shrinking economic activity.

The greatest entrepreneurs take action that revolutionize business, whilst opening opportunities for others and changing the way we think and live.

Ideas alone are absolutely worthless unless something is really done about them, rather than sitting around talking about them. Your action should be linked with the ability to display exceptional ability to create new ideas and finding new solutions to problems.

Despite the fact that you believe you have the billion dollar idea; it is highly likely that many others have thought about doing the same thing; however, success only comes from flawless execution. A great strategy alone not backed by hard work won’t win a battle. You will learn a lot more things from taking action rather than hypothesizing.

Not giving up and trying again, when failures do happen is perhaps more important.

Alex Kirshbaum, President of NUE Agency, once said,”In our business, success is defined by action and innovation.”

Mark Cuban, owner of the Dallas Mavericks basketball team and Chairman of cable network HDNet Inc, in his book wrote, “It doesn’t matter how many times you fail. You only have to be right once and then everyone can tell you that you are an overnight success.”

Always remember that execution, execution, execution is all that matters, and people won’t care about the number of your failures, when you change lives and become an agent for economic growth.

The world we live in today is a consumer-driven economy, and we have an innate desire and need to tell the world, ”look at me, notice me, i am unique and i count.” Therefore, take time to create quality and the rest will follow. Success is not a matter of destiny. Success is the result of endless determination and action.

Anthony K. Tjan in an article titled “Can Entrepreneurs Be Made” remarked that, ”Turning that passion into a business reality obviously requires executing on it. It requires guts. Unimaginable amounts of potential lie dormant because people don’t have that minimum threshold of guts to just initiate and not overthink it.”

VENTURES AFRICA – Telkom Foundation, in conjunction with Continuing Education at the University of Pretoria, today launched its Entrepreneurship Programme aimed at up-skilling 350 business-minded youth and women delegates in South Africa, to start and grow businesses.

According to Telkom Foundation Head, Sarah Mthintso, “Entrepreneurship is an important vehicle towards job creation and it is for this reason that the foundation is investing in empowering entrepreneurs and aspiring entrepreneurs with the requisite skills and knowledge needed to venture into this area”

She stressed that Telkom aims to fight poverty and reduce unemployment of youth, graduates, and women through the programme.

Candidates have been selected from databases of various South African government agencies and other organizations working with entrepreneurs and aspiring entrepreneurs.

The training programme is aimed at different levels with varying criteria. The Telkom Foundation funding accommodates 100 unemployed youth graduates in Gauteng to receive Entrepreneurship Development training and mentorship; 100 unemployed youth with no businesses in the Northern Cape to receive Business Start-Up training and mentorship; 100 small business owners in the Free State to receive Basic Entrepreneurship training and mentorship.

Also, 50 business women in Gauteng to be trained and mentored within the Women Entrepreneurship Development Programme.

The training duration for the different programmes ranges from 5-10 days, and mentorship, which is support given to candidates after training, ranges from 30-50 days.

It is envisaged that similar initiatives will occur in other provinces.

The company noted in an official statement that: “The training programme is well researched and is set to make a meaningful, sustainable impact for the candidates.”

South  Africa, Africa’s largest economy, with a population of 52 million people has a disturbing 23.9 percent rate of unemployment which has sparked various protest, youth unrest, and xenophobia.

Telkom is a leading communications services provider in South Africa and on the African continent. The group generated free cash flow of 2.1 billion rand ($237 milliom) for the year ended 31 March 2012.

VENTURES AFRICA – As an afterthought, this is in no way meant to undermine neither the importance of institutions of education nor the academics that impart knowledge into our future leaders, for a small fortune. However, have you ever wondered why most professors are neither millionaires nor billionaires, and why it’s the simple guy who chooses to be an entrepreneur who racks in the millions or the billions?

Puzzling as it may, anyway,ask the professor one simple question and the answer you get is complicated, and sandwiched by theories. However, ask the simple street-wise capitalist about business success and one of the first things they will teach you is the art of salesmanship. It’s as simple and straight-forward as that, according to the street-wise capitalist.

An encounter with a street-wise capitalist this past week left me with a thirst to improve my salesmanship skills. The street-wise capitalist’s assertion is that for every person who knows what sales means, there are probably a thousand people who don’t understand the art of selling. In as much as this is a crazy assertion which made me assume the street-wise capitalist should be insane, it later dawned that most people get it all twisted between marketing and sales.

I have since made a commitment to dedicate the rest of my professional life to know absolutely everything to do with the skill or art of selling and how to effectively present persuasively, and ultimately to get more customers. Moreover, tonnes of my energy will be spent on reading every book on salesmanship i can get my hands on, if i want my business to grow.

The reality is that technological advancements in the developed world – being spurred by the rise of the internet – are rendering the salesperson redundant because people can look up prices online and most probably won’t require the seductive sales pitch. The sales job is not only losing its appeal, sales forces are being replaced by technology. However, the good news is that in the developing world there is still so much space for the old-fashioned salesperson, because salesmanship is still personal based on a close relationship between a salesperson and customer.

Without sales companies would not exist. It’s always surprising those departments such as research and development, marketing, strategy are most of the time endlessly analysed by theorists whereas the front-line of any business is often ignored. As a matter of fact the sales force is the lifeblood of any business.

Furthermore, it doesn’t matter that your product is of a superior quality, as long as there is no ability or effectiveness in selling or in presenting persuasively your product to the customers, that product will be a failure. This further validates the earlier notion about professors; they master their trades but not salesmanship.

Donald Trump’s greatest skill is of being salesman extraordinaire, and he provided a unique set of insightful personal opinions and guidelines on business transactions in his bestselling book, The Art of the Deal. Mark Stevens noted that, “Think of The Donald as a salesman on steroids. And in this lesser-recognized role, Trump practices the art of the thrill.”

Furthermore, Mark Stevens remarks that, “never do things for your customers and prospects in a small way. Make it big and important or don’t do it all.” A salesperson has to go the extra mile for their customer or prospect in order to persuade them to buy their product, whilst also making them feel special. Although, budget constraints are always the battlefields for many a battle between finance and sales, however, it’s regrettable that no one will at any given time remember another run-of-the-mill pitch or event, but an over-the-top pitch or event will make you the winner because the challenge and opportunity before you, is always to be the one indelibly imprinted on their brains despite how many salespeople your customers and prospects have come in contact with.

A good salesperson develops a close relationship with their customers or prospects and be willing to listen more times than they speak themselves. That way you create an impression of having an understanding of the age-old rule which states that, “the Customer is King,” and without them you will be out of business. Moreover, one has to note that there is a thin dividing line between being exploited by customers for their sole enjoyment, whilst they enjoy the benefits of a newly found hobby, and having a constructive sales discussion. Every sale pitch has to be constructive, even without getting the sale then, it has to create the groundwork for a future sale.

For instance, an interesting story that fascinated me a while ago, about being able to develop a close relationship with a customer through listening and engaging them to achieve repeat sales to them, is about Aaron Hall. Nokia, that former top dog in the mobile-phone business, on learning that Aaron Hall had travelled for 400 miles to New York City to be the first person in line for the unveiling of the Nokia Lumia 820 and 920 smartphones, the company blogged about it. This was reciprocating the excitement the 32 year-old systems administrator had in his desire to see the two smartphones. According to Brian Patrick Eha, the immediate result: a devoted customer felt appreciated, and Nokia showed that it treats its customers as individuals. Any salesperson worth their salt knows that they should go beyond treating their customers as just an undifferentiated set of numbers.

Geoffrey James in an article about the Traits of Highly Successful Salespeople wrote the following: Buyers and sellers are emotional human beings, which is why great salespeople are always masters at managing their own emotions. Based upon his observation, highly successful salespeople cultivate assertiveness, self-awareness, empathy, problem solving, and optimism as emotional traits.

Patricia Fripp remarked that, “You don’t close a sale; you open a relationship if you want to build a long-term, successful enterprise. It is not your customer’s job to remember you. It is your obligation and responsibility to make sure they don’t have the chance to forget you.”

VENTURES AFRICA – 2013 is the United Nations International Year of Water Cooperation. To mark this year’s water celebration, attention will be placed on the importance of freshwater and sustainable management of freshwater resources.

Last year, I did a feature on Ludwick Marishane, the CEO of Headboy Industries. Ludwick is the brain behind DryBath™, the world’s first and only bath-substituting skin gel, which he invented in 2008 while he was still an undergraduate. His invention won him the Global Student Entrepreneurship Award (GSEA) at the Global Entrepreneur Week (GEW) for two consecutive years (2010 and 2011). To mark this year’s event; Marishane’s company, DryBath™, is organising a no-bath weekend to encourage water management (saving).

In this interview, Ludwick talks about his company role in marking the international year of water cooperation, the essence of saving water in this modern age, his business challenges, lesson learned, and his future plans,

VA: Please tell us about yourself (aside being the CEO of Headboy Industries) – your background, hobby, fond memories?

LM: I’m a recent graduate from the University of Cape Town. I grew up in both rural Limpopo and Johannesburg, so I have experience on both sides of the income-level fence. My hobbies include critically analysing movies, hiking, and reading philosophy and psychology books. My fondest memory was when my baby brother was born. I had been an only child for 17 years, but nothing was more exciting than having him come into my life.

VA: 2013 is the international year of water cooperation, what is your company doing to mark this event?

LM: We were not aware of the theme given to the year, but we had already decided to launch our first DryBath™ No Bathing Weekend in July this year. While developing our campaign, we became aware of the year’s theme and realised the great possibility for synergies.

VA: What is this year’s theme for the project and what is the synergy between it and your plan?

LM: 2013 is the  United Nations International Year of Water Cooperation, focusing attention on the importance of freshwater and advocating for the sustainable management of freshwater resources. It also focuses on how the world’s aqua-system is used to benefit humanity in a sustainable manner. We believe DryBath can play an integral part in assisting society to achieve that objective.

VA: You are organising a no-bath weekend from 5 to 7 July which will coincide with the fourth anniversary of the invention of DryBath™ and the celebration of this year’s international World water day; what does your company aim to achieve with this programme and how hygienic is the idea of not bathing?

LM: Our personal goal is to get people to skip 10 million baths this year, but our campaign goal is placed at a modest 1 million baths. We want to make people aware of the wasteful act of unnecessary daily bathing, and we’d also like to bring awareness to the adverse health effects of too much bathing.

If you research the history of bathing, you’ll realise that daily bathing only became prevalent in the 40s as a way to practice good hygiene for those who did heavy physical labour. We have abused that practice and now bathe two or more times a day. This has lead to our skins becoming sensitized by all the purifying chemicals in the water, and that’s why every new skin lotion is always touted to be twice as moisturising as the last. We bathe all the time and try to repair that damage with expensive lotions which we shouldn’t need in the first place. We want companies and communities to get involved with the campaign.

VA: Your goal is to get at least 10-million people to hygienically skip a bath once a week during 2013, why is saving water crucial in this generation?

LM: Some popular research theorises that water-shortages will reach extreme levels from the year 2030, and I believe that “wars” will be fought over water in a similar way to how they have fought over oil. I’m far from a believer in climate change, but the scarcity of water is a very real problem, and it is something that is far removed from the citizen of a developed economy, but can be the difference between life and death for a person at the bottom of the pyramid.

VA: Tell us about your product, DryBath™, and what it does? What is the inspiration behind formulating this product?

LM: DryBath™  is the world’s first and only bath-substituting skin gel. You simply put it on your skin instead of bathing, and it will provide you with a cleansing effect that mimics the effectiveness of bathing. It won’t feel as great as bathing, but it will sure leave you feeling fresh.

I invented the product in high school when a friend didn’t want to bathe. As a teenage boy, I knew I wasn’t a fan of bathing, mainly because I found it tedious sometimes, but also because I liked the smell of my body’s natural pheromones.

VA: How has your growing up in Motetema influenced creating DryBath™?

LM: I moved to Motetema in the 9th grade – a move which gave me great anxiety because I was turning my back on a great Catholic school and the advantaged lifestyle I had with my dad in Johannesburg. In retrospect, the move to Motetema was the most important decision I made at that age, and living there really gave my life purpose by showing me how much change was still needed in the world.

Headboy Industries aim to become Africa’s most innovative conglomerate, making products that improve society, how far has your company come along since it officially began operations in 2008?

We’ve completed the development and commercialisation of DryBath™. We have spent the last two years developing the world’s first entrepreneurship league, we plan to take it live in 2014 and we already have partners in Russia that want to replicate it there. The company is profitable and we expect revenues to triple this year.

VA: Shed some light on the development of the world’s first entrepreneurship league

LM: The entrepreneurship league is going under the name of the “Art of Business Challenge (ABC)”. It is a youth development enterprise that leverages the youth’s interest, advertisers who are dying to reach the 15-24 age-group, and the low entrepreneurial drive within society’s youth. It is going to be teaching youth stuff they can’t learn in a classroom, and we aim to make the process more entertaining for the television spectator than the FIFA World Cup. The league has been under development for 2 years now.

(You may view Marishane’s short presentation of how it works here)

VA: I read somewhere that DryBath™ is manufactured commercially for clients such as hotels, music festival organisers, major global airlines and governments for soldiers in the field but it is not yet available for consumer use; why is this and when will this be made available for consumer use?

LM: We have realised that our team is not passionate about the retail side of business, and we also didn’t have the capital necessary to service the household consumers with the quality we would want them to have. We have started negotiating distribution deals for countries all over the world, and we will be choosing great partners who can sell the product to the retail consumer. Selling to corporate organisations has been our main priority because our value proposition to them allows us to donate sachets to charity.

VA: How have you been able to market a novel product to the public?

LM: People’s general attitude to bathing has been very entertaining to us. Our surveys revealed that almost everyone finds it tedious sometimes, but society’s general attitude is that not-bathing is a taboo thing to do. On average, people already skip bathing once a week, but they feel very guilty about it. DryBath™ allows these people to have a very convenient substitute without the guilt of feeling dirty for not bathing. Our marketing has been very frank and has aimed to make everyone become more accepting, if not enthusiastic, about skipping baths.

VA: What challenge(s) did you face marketing DryBath™/getting the product accepted and how far have you come with these challenges?

LM: We had a great deal of difficulty in designating the product into a category. Being a new health care product, we had to decide if it was a medicine (which would require clinical trials, etc), or if it was a cosmetic. After consulting with the authorities, the final designation was “cosmetic”, and that has really made it simpler for us to distribute the product worldwide. Customers still find it hard to get the concept in their heads, and we have decided to produce marketing videos to help with that, but we have noticed that detractors often change their mind about the product after the concept has lingered in their minds for a week or two.

VA: You have experienced some failures and challenges as a young entrepreneur/innovator before achieving success with the creation of DryBath™. Can you share some of these failures and how has this experience help you in your present business venture?

LM: My journey has been riddled with projects that were too big for me, too resource-intensive, and those which were too early for society. I invented a healthy cigarette in the 10th grade, but realised I didn’t have the resources to take on the tobacco industry. I failed to become South Africa’s biodiesel baron in the 9th grade because I was too young, and I authored a mobile dictionary and magazine supplement which society just wasn’t ready to publish.

However, with each entrepreneurial failure, I learned skills that optimized me for future opportunities. I also think DryBath hasn’t finished its journey yet, and that it may still fail at some point in the near future, but it has taught me business skills that will make my next venture an even bigger success.

VA: You are/were a student social entrepreneur who has combined schooling with entrepreneurship. How practical is this and does your academic discipline play a role in managing your business, Headboy Inc?

LM: I think the best time to get a business off the ground is while you’re still a student, being at university was a great incubation phase for the company and I. I studied a commerce degree, so the learning definitely added substantial value to the business. Being a student entrepreneur also posed a difficult challenge, but I found that the more I worked on the business, the better I did at school because the work ethics translated well between the two.

VA: As a student, how did you get the start-up fund for your product and what advise will you give young entrepreneur in getting start-up funds?

LM: I was rejected by all the venture capital firms, and I had no security to secure a loan from any bank. However, I did enter business plan competitions, and I quickly realised that they were the best way to raise funds for my business. I raised over $50, 000 from competitions, and they also provided valuable media attention, access to potential clients, and validation for the company and product.

VA: You have served as an intern with Goldman Sachs, operate as campus ambassador for Google (among other internship) and you were once the Global Student Entrepreneur of the Year; how far has these internships and accolades help you as a young entrepreneur/innovator?

LM: The Goldman Sachs internship was my first job ever, and it made me realise how much I hated being an employee. It was a great opportunity to be in London during summer, and I got to work with some of the sharpest minds in the world. The work we did gave me insight into securities sales & how I might do an IPO one day. The other internships were in start-ups generally, and they felt more aligned with my way of working. All in all, the internships and awards have added substantially to my network, and I often tell my mentees that an entrepreneurs’ network must be more valuable than their business, otherwise it becomes useless.

VA: What do you think young entrepreneurs should emulate when they are starting their business?

LM: The most important skill you need to cultivate is the ability to teach yourself things very quickly, and to fail very quickly in order to learn. If you work on something you’re truly passionate about and have social support for the work you’re doing, the rest sorts itself out.

VA: What are your future plans for the business?

LM: We plan to launch even more long-term products to the market and change the world one product at a time.

VA: Any word for young entrepreneurs that may/are following in your footsteps?

LM: Do it for the love of power…the power to control your life, the power to change society, and most of all; the power to live your dream. If you don’t feel like pursuing that power, then you’re not working hard enough.

Let’s hear your opinion on DryBath™. Follow us on Twitter @Venturesafrica /leave your comments below.

VENTURES AFRICA –  At the 10th Anniversary dinner and awards of The Global Professional Achievers Award (GPA) held in Accra, Ghana, a certain Tonyi Senayah, a young Ghanaian businessman in his late 20′s and CEO of Horseman Shoes, was awarded the YOUNG ENTREPRENEUR OF THE YEAR 2011.  Receiving the award Tonyi said, “I believe in Ghana and also believe there are a lot of opportunities in Ghana and pray the youth take advantage. The vision of Horseman Shoes is to be the biggest footwear manufacturing company in Ghana and beyond in terms of employment and brand preference.”

Today, Horseman shoes is a footwear manufacturing company that makes quality and fashionable footwear with the finest leather. Some of the company’s products are men’s dress shoes, Unisex sandals and slippers, School sandals and Security boots. But just how did this young entrepreneur get into the business of shoemaking? The shoemaking entrepreneur has also undergone series of training programs some which include leadership, business management and financial management. In his chat with Ventures Africa, Tonyi tells us about his passage into entrepreneurship, his shoe making business, challenges, aspiration and hope for his business. As a young entrepreneur himself, Tonyi advise young entrepreneurs to step out of their comfort zone and not let the fear of failure hold them back.

Entrepreneurial journey

When asked if he had always wanted to be an entrepreneur, Tonyi said: “I would not say I had always wanted to be an entrepreneur but I had always wanted to drive change. I had always wanted to be part of a solution to our challenges instead of sit and complain. And it so happened that I found the opportunity to start with the unemployment situation among the Ghanaian youth.”

Starting his business

Tonyi started his business, Horseman shoe, while he was an undergraduate at the University. He started by buying from manufacturers in November 2009 and by August 2010, he had opened his own workshop and employed artisans.

“The business idea came when I first bought a locally made shoe for myself and anytime I put them on I had unending compliments. Friends became interested in owning pairs. It then dawned on me that there’s an opportunity to make a viable venture out of it for myself and the craftsmen who usually operate on very small and informal scale. The whole idea was to migrate these guys from their corner shops into a factory”

“I also wanted us (Ghanaians) to move away from the patronage of second hand products. I believe we deserved something new and decent for our souls rather than pre-owned stuffs imported from Europe.  So we have to create something by us and for us”, he added.

Migrating shoe makers from their corner shops into a factory

Horseman CEO explained that “It was just a matter of identifying these young people who had the desire and passion for it. I scouted for them and got others through recommendation. I’m still on the search for more young artisans.”

Horseman Shoes, its target audience and distinguishing factor from its counterpart in the African market

“We have a range of products and each range has its targeted audience. Our products include men’s dress shoes targeted at the young professionals and the working class. We also have female flat shoes made from leather, our unique local fabrics: GTP and Kente. We manufacture school sandals for senior high schools and we do also safety boots for industries and the security.
What set us apart from other manufacturers is that, our shoes especially for the men and women are handcrafted with genuine materials. Our shoes are a blend of quality, comfort and style. We also make bespoke shoes.”

Why the name Horseman Shoes?

“Horseman represents the unique features of horses. They are fast, strong; they have stamina and are beautiful.  These are what our brand stands for. We want to associate with the young people who aspire greater heights in their various fields of endeavor. It takes determination and focus to achieve. So like the horse, they have to keep running in horseman shoes,” Tonyi explains.

Sourcing for materials internationally?

Currently we source raw materials from local importers who import from Europe and Asia. But very soon there are certain materials we will be sourcing directly from suppliers.

Creativity in the shoe making business

Business has certain principles that must be followed if you want to be successful, regardless the industry you find yourself in. Creativity is the fulcrum of the industry (fashion) I operate. If you don’t have it you cannot stay in business.

Challenges starting the business + lesson learnt managing the challenge(s).

The challenges we face as an infant enterprise are numerous but are however surmountable. One of the challenges is the availability quality human resource. Getting young people with the right attitudes and the willingness to start small is very difficult. Easy access to finance is also another great challenge we face as young enterprises.

Experience of failure as an entrepreneur?

Tonyi says “Whoever has not experienced failure probably has not tried anything before. I encountered a lot of failures and challenges. I think that’s one of advantages of starting small. You make small mistakes and you learn from them. I had no business background in terms of academic or experience starting my business. So I obviously had difficulties in managing certain aspects, especially finance. I’ve lost some money before due to poor management. And I’ve learnt a great deal of lesson from it.”

Doing business in Ghana?

Doing business is Ghana is not easy I’m sure just like many other developing countries. But generally there’s condusive atmosphere in terms of political stability, security and macro economic growth that facilitate business.  There are however some institutional challenges young enterprises encounter such as taxation among others which we hope to sort out through advocacy.

Most significant and exciting experience since venturing into the business world

I have had quite some few high points but what comes readily to mind is having the rare opportunity to represent Ghana in the US President’s Young African Leaders Initiative 2012. I had the opportunity to network with sixty (60) other participants from all over Africa.

Experience as the representative of Ghana in the US President’s Young African Leaders Initiative 2012

It was such a huge and varied set of experiences I had being part of the US President Young African Leaders Initiative. To start with, the recognition by the US embassy in Ghana in nominating me indicated that somebody is watching whatever you are doing. Because it is not a program one applies to attend but they rather identify you.

Pitching Horseman Shoe to investors and buyers

There were several platforms where I pitched my business to investors, buyers and many other groups.

Meeting other 60 young people from the continent was a networking opportunity to expand social, political and business ties. It also created a platform to network and share ideas with American businesses. I did an internship with an American Branding and Advertising for two weeks which gave me a lot of insights for my brand building.

Minimum start-up capital for shoe making Business

Using his case as an example, Tonyi said although he cannot say there’s a stated minimum capital requirement for shoe making and for that matter many other businesses. But he started his shoe business with only 100USD.

Company’s worth today

About $90,000

Will he say Horseman shoe business is successful and why?

It depends on what indices you are using to measure success. Unfortunately success is often measured in materiality. But in my own small way, I would say Horseman Shoes has been a success so far. It is a business I created out of nothing and today I am known for Horseman Shoes. There has always been the perception that made in Ghana products are of inferior quality but I’m very happy to see that my shoes defeated that misconception. I think it is a feat to be proud of. We can also measure our success in the creation of employment for other young people. Although it’s not a significant number, putting food on the tables of 10 people is a starting point.

Horseman shoes in the near future

The vision of Horseman Shoes is to build the biggest footwear manufacturing company in Africa in terms of employment and brand preference. In line with our vision, we hope to create employment for several hundreds and thousands of the Ghanaian youths. We also hope to expand our product line to include belts, wallets, bags and other fashion accessories. In pursuance of all these we seek to build a world class brand.

Business outside Ghana?

“Currently I don’t have any business outside Ghana,” he says.

Expansion plans

Of course there are plans to expand within the sub region and other parts of the world. But it’s a step at a time. We want to grow organically.

Other venture apart from the shoe business

Currently all my time and resources are devoted to the nurture of my infant business – Horseman Shoes.

If he is not into shoe making business, what else?

Very interesting question. I believe God has a purpose and a role for every individual and I think he would have used me in some other way.

Mentors in the business industry

I have quite a few people I look up to as mentors – both local and international entrepreneurs. One of such people is Prince Kofi Amoabeng, CEO of UT Holdings in Ghana. He’s a very real and practical person but highly principled. Another person whose story inspired me is Richard Branson of Virgin Atlantic. I got encouraged when I read his book – “Loosing My Virginity.”

Advice to budding entrepreneurs

What I will say is there are a lot of opportunities around us. It is often not the biggest of ideas that works but rather the small ones. The most important step is the beginning. Young people should step out of their comfort zone and try. They should not let the fear of failure hold them back. With the right attitude and determination; nothing cannot be achieved.

VENTURES AFRICA – With all the coverage regarding the Motsepe family, and David Beckham pledging their earnings to philanthropy, one wonders if these are isolated incidences and whether in South Africa in particular these are rare displays of generosity and magnanimity, or are other South Africans in fact actively involved in philanthropy but operating below the radar?

Indeed the vast majority of wealthy South Africans are involved in giving. Our recent report which surveyed High Net Worth (HNW) giving in South Africa for 2010 (The Giving Report) showed that 93.5 percent of HNW donors in South Africa gave money, time or goods to social causes during the year under review. Giving is a way of life for these donors, with most having given to social causes for at least 10 years.

The second version of The Giving Report will be available this year and the findings, to be published in October 2013, will enable us to establish the impact the financial crisis may have had on philanthropic initiatives. Anecdotally, through our work in providing philanthropy services to donors, we believe that the impact has been quite significant. Before 2008 when the economy was booming both locally and internationally, South Africa’s donors were setting up their own foundations and committing to philanthropy in heart-warming numbers.

However with the majority of South Africans already hit hard by the financial crisis over the last few years, most are finding themselves in circumstances where perhaps some of their charity actually needs to start at home, by providing for adult children whose businesses have taken a severe knock or to protect retirement provisions that have not performed quite as expected. This year with the markets having improved we hope to see a change with more HNW ndividuals having more certainty on their own financial situations. Also, the added tax advantages mentioned in therecent Budget may go some way to encouraging South Africans to give more. We just last year made submissions to Treasury in this regard as part of the Private Philanthropy Circle with the purpose of encouraging philanthropy and it is heartening to see that they seem to be taking steps in a positive.

The true test of giving comes in difficult times. The financial crisis has in fact shown how those who had set up long term structures, funded with a view to being able to give well into the future, have indeed been able to continue their giving. The importance of this is all the more apparent as many Non-Profit Organisations have struggled to continue their work due to the knock on effect of the crisis on their funding

Some question the need to publicise the recent actions of Patrice Motsepe and David Beckham, but these actions have certainly prompted conversation – placing giving and philanthropy firmly in the spotlight, leading us to look at our own endeavours and what we are doing or could be doing regardless of magnitude. It comes down to commitment, to taking that next step and to not only enjoy the arts but to perhaps fund a foundation to unearth and foster South African musical talent. Rather than bemoan the unemployment problem in our country, we need to find and support solutions that fund bursaries and scholarships.

VENTURES AFRICA – More and more we get the opportunity to pay our respect to African off-spring who have made a success in first-world countries. A new snapshot of success is that flavoured with individuals who have not only made a success of ‘giving’, but in turn has aided others to make such a difference as well.

We introduce Eric-Vincent Guichard, a son through blood and experience of the African soil. Eric’s background makes for a fine read, but is nothing compared to the impact and difference he is making for others, through others!

Armed with stints at the World Bank as a portfolio manager and technical adviser to sovereign and multilateral institutions worldwide, Eric is also an alumnus of the venerated Harvard Business School.

We chat to Eric about Homestrings, a successful investment avenue for making a difference.

The world needs more of this, especially Africa.

VA: Eric, paint a realistic yet pragmatic picture of life in rural Guinea during the 20 years you spent growing up?

EVG: My parents met in the 60s – during the heyday of the African political independence movement. We lived in Fria, a bauxite exploitation town run by the French. Seku Ture, the leader who led Guinea to independence, emphasized Africanism and education in a rural setting for all. I walked 2-3 miles to Tige, a rural school with an aluminum roof and benches that were holdovers from the colonial period. The roof leaked heavily during the extended rainy season and we spent a third of our time cultivating maize, tapioca and corn; later, in Boke, making mud bricks from an open fire stove. At the time these experiences seemed normal. As I got to Senegal and exposed to more modern education I realized the disparity of my experience.

VA: Besides our new found resources that the rest of the world all of a sudden has become interested in, what is your experience of how people (in developed countries) view Africa and its people?

EVG: I think that Africans, especially in the Diaspora, are taking control of the image. You are starting to see a migration in Western perceptions that is similar to what happened to Asians in the 70s and 80s when we went from derogatory images to more modern and progressive projections. Key to that transformation was economic performance. Africa, writ large, is at the inflection point of this transition in perception.

VA: What are some of the things you can remember, that you thought of after leaving Guinea for the USA to study?

EVG: Well, my mother, an amazing woman who probably deserves her own column, made that transition easy for my brother and I, by making sure we were exposed to the African-American realities through books, stories and letters. Also keep in mind that I was born in Brooklyn and began living in Guinea at the age of 6. The move to the US for school presented its own cultural adjustments. I was most impressed with the accessibility to knowledge and the “can do” attitude that permeates the American culture – very liberating.

VA: What keeps you busy at the moment?

EVG: Growing Homestrings is my key priority. We have some exciting branded products we will be rolling out this year – so stay tuned and connect with us on Twitter @Homestrings and on our Facebook and LinkedIn pages! I also manage institutional funds at Gravitas Capital in Washington, DC – that presents its own challenges, but I am happy with how that is going. We just published our 2012 performance, and we are pleased.

VA: You are making continued success of Homestrings. Tell us how the concept came about?

EVG: Thank you. Before starting Homestrings, I worked for 6 years at the World Bank and a further 16 for a boutique asset management and advisory firm I founded, called Gravitas Capital. Over that time I found that I could not find a way for people like me to invest in projects back home while still benefitting from the returns made in the institutional asset management space, by private equity fund for example.

So, I created a web portal to allow African Diaspora experienced investors to make a difference back home while also making the 20-30 percent+ returns that before now were only available to institutional investors (Homestrings catalog 2012 annualized returns net of fees nears this). But the thing is that while I was creating it, enough of my non-African friends mentioned that they had been looking for a way to personally invest in this way that I realised that it was not just something that the Diaspora would use, and Homestrings is now marketing more widely to any investor with US$1000 plus to invest in emerging markets.

VA: So Homestrings is an investment vehicle to make a difference while earning a return?

EVG: Absolutely. Our investments aim to focus on the “productive sectors” of the economy, in other words, the sectors and organisations that will help to generate long term sustainable development for the community and wider country as well as generating financial returns. However, we are a user-driven vehicle and therefore will respond to requests for regions for investment. We always love to hear the views of members and interested parties so please don’t hesitate to get in touch with us on Twitter (@Homestrings), Facebook or through our LinkedIn group.

VA: What is the best sort of return one can expect, granted that each product in the portfolio is different?

EVG: The Homestrings catalog 2012 annualized returns net of fees nears the 20-30% returns that until now were only available to institutional investors. We identify investment opportunities that are well vetted, structured and transparent so that the investors which are using the platform can have access to those due diligence elements. We go beyond the call of duty to provide the same level as institutions the kind of due diligence information that people want to have access to.

VA: Has Homestrings become even more relevant among the international investor audience given turbulent economic conditions in the developed markets?

EVG: I think it’s true, given the current economic climate in developed markets, that international investors are increasingly looking further afield to achieve outsized returns. The World Bank and other international organizations and media outlets are championing Africa’s increasing stability and resilient growth as a potential counter to the malaise that had settled over developed economies. The continent’s economy grew around 4.5% last year, according to the African Development Bank, and hosts an emerging consumer class that the bank said was already as large as one-third of Africa’s one billion people, comparable with China and India.

The continent provides a wealth of opportunity and we are increasingly seeing interest from a broad range of investors using Homestrings to gain access to that potential.

VA: Any other developments you see for the African continent?

EVG: Based on current trends, I predict a growing number of African professionals returning to Africa and participating actively in investments and businesses in their home country or region to build growth there. Good news for the continent.

VENTURES AFRICA – Entrepreneurs never sleep, nor should people who want to be involved in entrepreneurship, because sleeping is a rare commodity. Things do not always go to plan. The story of entrepreneurship has an inclination that suggests that it’s a survival of the fittest jungle, which offers the thick-skinned an opportunity to make something, and anything of their desire to create change and growth.

In reality, capitalising on strengths and overcoming weaknesses are essential entrepreneurial abilities in this unforgiving cut-throat environment. An environment, in which for every budding entrepreneur who has things turning out favourably for them, there are probably a thousand budding entrepreneurs who have to shed tears of disappointment, frustration, regret, perhaps with a familiar feeling contorted in anguish. As hard as they try to create change and growth, the end result is ultimately always out of their hands usually.

I came across an article by Ed Hatton about an entrepreneur who had asked if it was advisable to start a clothing business without the ability to sketch or draw designs. She has a good eye for trends and understands the clothing manufacturing process.

These things shouldn’t matter. None of it should matter. But it does, and it’s not only a feeling confined to this lady alone.However, it has provided me an opportunity to elaborate on the need to critically identify strengths and weaknesses by entrepreneurs-to-be, irrespective of a frail carrot of financial success dangling in the distant future.

Regardless of moral and financial support from family and friends, the starting point for any entrepreneur-to-be is to undertake a comprehensive evaluation of their strengths and weaknesses, if they want to acquaint themselves with being a successful entrepreneur.

All too often, entrepreneurs-to-be always believe that writing a comprehensive and impressive business plan, and looking for funding is the gateway to success in their endeavours to become entrepreneurs and forget to do a proper evaluation of themselves. Business plans can be deceiving; no wonder many then become frustrated when they can’t get start-up finance, since all their hopes are misplaced on a business plan. One venture capitalist, once remarked to me that he looks for the strengths and weaknesses of the people who bring any business plan to him, because anyone can get a very good advisor to prepare a business plan for them, however, strengths and weaknesses is reality at its far harshest, and can’t be easily missed even at a cursory glance.

Ed Hatton in his response to this entrepreneur states that, ”This entrepreneur-to-be has identified her major strengths and weakness. This is smart thinking. All too often would-be entrepreneurs simply dive into their dreams without evaluating their talents and skills, and then become frustrated when they can’t get start-up finance, can’t attract customers because they lack a vital skill, or simply do not understand the complexities of the business they wish to enter. In this case her strengths of having an eye for trends and understanding the manufacturing process are significant advantages in a business where being the first with a trend is huge competitive advantage. She worries about her inability to get her ideas on paper, and correctly so. If she can’t overcome this weakness then all the talent for spotting trends can’t be turned into saleable garments.”

Competitive advantage is a vital concept in business language, and it’s widely accepted that chances to gain competitive advantage improve with familiarity to your own surroundings. Furthermore, now that the entrepreneur-to-be has identified a strength or weakness, it provides an opportunity to define an entrepreneurial career that has a strong foundation for potential success in the future. For instance, possible creative solutions to this insurmountable weakness can be thought out and the best solution implemented. Being aware of the weakness of the inability to sketch or draw designs, the two most obvious solutions that come to mind are either to attend fashion design classes where one can learn to draw or sketch on paper, or electronically. Secondly, there is a possibility to outsource the drawing responsibilities to a skilled clothing designer. However, outsourcing needs careful research because there can always be conflict of interest if the designer also has his or her own products.

Realistically, an entrepreneur can’t merely rely on a business plan to drag them over the success line. It has to start somewhere, and the weaknesses also provide a vital source of relevant information about what the capital requirements would be? If you get that right, the achievement will be worth noting. As unlikely as it seems, a business plan prepared based on a comprehensive evaluation of a SWOT(Strengths, Weaknesses, Opportunities, Threats) analysis of the individual entrepreneurs doesn’t guarantee that everything will be smooth sailing, in truth; it provides a backbone on which to build a sustainable business upon.

Lessons are always learnt; however, without a real-life example some facts don’t make the slightest of sense. Steve Jobs the acclaimed, most revered and marque technological innovator extraordinaire, whose claim to fame and fortune, was being the face of the innovation monster Apple, before the South Koreans became tired of all the Apple ululations, and all the superlatives in conjunction with narratives heaped upon the Cupertino, California based technology giant, is a prime example.Samsung decided to do the unthinkable, undertaking a manoeuvre that bordered on being a suicidal and ridiculous gamble, rather than the bravery that has led to their invasion into Apple’s fortitude.

Most importantly, though, the unspoken bond between Steve Jobs and Apple enthusiasts turned him into a rock star of technology. To put it into perspective, Steve Jobs was to technological innovation, what Michael Jackson was to pop music. Nonetheless, a scratch under the surface reveals that under the charismatic personality, was a technically challenged individual, he was not anyway near being the designer of any of the great products, albeit, Steve Jobs was great at motivating people to go beyond their limits. Furthermore, Steve realized his technical shortcomings and never let that be a hindrance to bringing to the world, products that people didn’t realize they needed. I have always realized that some of the entrepreneurs, who have enjoyed phenomenal success, build their success from realizing opportunities that lie before them, and then, evaluate their weaknesses in relation to the opportunity, before looking for people who are talented in that sphere, if they have any skills limitations.

For instance, during the early years after Apple had been founded, Steve Wozniak not Steve Jobs was responsible for the early designs of Apple products. “I wanted to design a machine that did something,” Wozniak said years later. “On a TV, you turn a knob and it does something. On my computer, you pushed a few buttons and switches, and lights would come on.” That was Steve Wozniak’s goal and he succeeded: things could happen.

Furthermore, anyone who has bothered to read about the computer-animation revolution would have realized that it was the genuine talent of John Lasseter, plainly put, who produced the full-length animated feature films that propelled Pixar to iconic status, and not Steve Jobs. No wonder, Disney wanted to use him as a negotiation pawn, whenever it was time to negotiate with Pixar, since they couldn’t re-engage him after having frustrated him as a new graduate, which led to his exit from Disney.

The moral of the Steve Jobs case is that he knew his technical shortcomings when it came to innovation, and realized that to be a success he had to be surrounded by the best talented people to achieve his goals. If he didn’t realize his weakness, we might not have got all these great and wonderful products that we attribute to the brilliance of Apple, at the times we got them. More often, i bump into frustrated individuals who just jumped onto the entrepreneurial ship without realizing the fact that they had to evaluate themselves first, before even thinking about looking over the fence to do a SWOT analysis of the competitor. Entrepreneurship is about building sustainable businesses, and therefore is not a casino where speculators looking for a quick buck go to, to get their desires fulfilled. Realistically, what kind of business can you build if you don’t know your weaknesses, and what future can you hope for your business to have?

VENTURES AFRICA – Let me count the ways Shana Kay, young and certainly dynamic has hit the technology scene in South Africa. Not only is she a young entrepreneurial executive but also someone who’s tenacity has earned several accolades. To name a few, Shana is backed by experience in web development, programming and project management. As a result of steaming ahead, Infointeg has picked up a SAB (South African Breweries) Kick-Start award and she was listed as one of the Mail&Guardian’s 100 Young People to have lunch with.

We also probe the mind of Marc Elias – CEO @ Seed Engine to find out about his fascination with Infointeg

Let’s get to know more about IntelliCred.

VA: Shana, thank you for chatting to us. Tell us how Infointeg started?

SK: Infointeg (the original name of the company), which has recently changed to IntelliCred, was the result of frustration by my partner, Kevin Derman and I, when trying to find credible information online. We would search for new suppliers or need to validate information potential suppliers would give us, and there would be no way for us to verify this. From this frustration, Infointeg (from information integrity) was born.

VA: You are based in Johannesburg now. What sparked this move?

SK: At the end of 2010, financial resources where running thin. Everyone loved our idea, but bootstrapping the business meant we could only go so far, and decided that we should move to where the decision-makers resided.

VA: I have met many entrepreneurs over the last few years. What makes being an entrepreneur so special for you as a young African woman, in South Africa?

SK: I love South Africa, in spite of the negative publicity it is receiving right now. Being alive in a “free” society (where there is still much work to do), is an exciting space to be in. There are many initiatives geared toward women entrepreneurs, and if you do your homework and get the timing right, you can benefit. I’ve been fortunate to do other things such as my time to do inspirational talks to girl-learners in order to encourage them to study technology as a career and use my networks to raise funds and toys for my Annual Toy Drive.

VA: You have picked up some useful accolades along the way. Paint a pragmatic picture for aspiring female entrepreneurs out there on what type of work-rate goes into achieving such success?

SK: I am humbled at the term accolades. It has taken many years of hard work, social sacrifices, including moving away from my beautiful Cape Town, and many sleepless nights to get to where I am and it will not stop anytime soon.

Success (and I never think I am close) is not an overnight success. My first company was co-founded with two partners, while finishing my degree (which also started later in life). Studying and working fulltime is a juggling act of note. I would attend a lecture, then meet a client, then run back to a lecture.

After graduation, my days and weeks started blurring into each other. Weekends were typically not time off and typical work days were anything between 12 and 14 hours a day. Entrepreneurship is a road that is full of opportunity and full of challenge which can take any form. The key is to know when and how to pick your battles and have a mentor who can keep you on the path to success.

VA: what are some of the innovative products the company has slithered into the market?

SK: Our first product, the Infointeg Trust Seal, launched and was short lived when Verisign (the number one leader in SSLs) brought a competing product onto the market. We could not compete head-on with marketing against this global giant due to lack of financial resources and parked the product. Since then we built on and transformed this technology into a White Label product called IntelliCred.

VA: What is Infointeg working on at the moment?

SK: We’re working on a product called IntelliCred, an online brand risk management tool, which allows companies with memberships (such as the Cape Chamber of Commerce, BEESA, Softline, SABS etc.) to protect their brands, control their members and grow their revenues, by means of a visible trust seal, controlled by the company and displayed on the members website. Visit www.intellicred.com for more information.

VA:  What is shaping the technology market at the moment?

SK: Mobile and application development, social media and online trust. Rachel Botsman presents a Ted talk on the economy of trust and how social connections and trust is driving business. I see more and more security-related and trust products entering the market. I also see social media embedding itself more and more into products to bring centralisation and convenience together. Mobile and application development is being shaped by the plethora of tablet and smart devices entering the market. Companies are starting to move away from fancy websites and pushing their users to their applications instead, saving more features for mobile.

VA: Let’s bring Marc in here. Marc welcome! What is Seed Engine?

ME:  Howzit!  Seed Engine is a business accelerator.  We are the bridge between business incubation and venture capital.  We accelerate a maximum of 10 ventures per programme, 3 times per year, over a 13 week programme that we’ve designed to explode high growth businesses into both local and international markets.  We provide seed capital, intense mentorship and coaching, office space, meeting rooms, basically everything entrepreneurs need, as well as direct access to investor and distribution networks to join in on each explosion.  We don’t take any fees, simply equity.  That means that our skin is in the game with our ventures.  If they succeed so do we.  That way the relationship can only be win win.

VA: What is your role or place in the market at the moment?

ME: Seed Engine’s role is quite simple.  In many ways the brand is positioned as the epicentre of South African entrepreneurship.  Over the next few years we obviously plan to venture up north to the rest of the continent, but we still have a little while to wait.  Seed Engine is the elite enabler of growth, success and best startup practice.

VA: Identifying new markets and companies can be complicated. What attracted you to Infointeg?

ME:  It’s quite simple:  a concept that we hadn’t seen before, and thus represents an opportunity that we are proud to have under our portfolio.  We looked at the nature of the opportunity together with its leader of course, Shana.  Her ambition, experience and drive was the selling point, over and above her business idea.  We bring on the champions’ champions and Shana is just that – she’s got the potential to be the real deal.

VA: Based on current market shifts and patterns of technology development, what makes Infointeg stand out, from a South African perspective?

ME: From a South African perspective, there’s nothing like it.  That makes it unique and defensible.  The product development is also designed and developed in such a way that it will cater for seemless innovation, enabling us to keep ahead of the market and avoid complacency.  That being said, the marriage between the founder and the tech is key.  No single element can work and progress without the other.  It makes the business a gem.

VA: If you feel there is a global perspective, please elaborate?

ME:  Absolutely!  That’s why she’s here.  The scalability and scope of the venture.  The value proposition is vital in this analysis, and we are confident we’ve got it, if not getting it right and ready to bring national pride to Shana, a South African FEMALE entrepreneur.

VA: We have had the social platforms developed like Facebook, Myspace etc. What is next from an Angel Funder perspective? What you looking for from fledgling ICT companies, going forward?

ME:   This is always a tough one to predict.  From a B2C perspective, there’s been a lot of keen interest in innovative file storage solutions, bio-medical and process innovations and education methodologies.  That being said, angel investors can be as unpredictable as the general consumer base.  The truth is they often don’t know exactly what they are looking for.  The trick is to monitor investment market movements and innovate upon the analyses.  From a B2B perspective, like IntelliCred, they have taken a fairly static and one sided offer and created a 2 sided market – something nearly impossible to come up with if we’re stuck in traditional and unproductive business practices and decision making processes.  IntelliCred is well ahead of the curve and it’s our intention to build it into a market leader and retain that position.

VA: Briefly, what process is followed if Seed Engine is approached by a start-up ICT company?

ME:  Thanks for asking that, just go onto www.seedengine.co.za and click apply.  You can also find us on Facebook and Twitter (Seed_Engine).  Once we’ve seen the application and researched the potential opportunity, we conduct a series of interviews with the teams of founders and make a decision and/or offer from there.

VA: Does South Africa innovate on a scale that is globally competitive?

ME: Without doubt.  The concept of Prepaid, the companies like Thawte, and entrepreneurs like Shana tell me that there is room in the international market for South African innovations.  What we lack are large pools of talent that are supported by a national culture of entrepreneurship.  I’m not saying there’s no talent, I’m saying that the good ones are going to work for corporates.  And I’m not saying South Africa doesn’t have entrepreneurs, I’m saying that the market doesn’t seem to go out of its way to support local innovations until they have undergone supernormal growth.  Adoption of new solutions is key.  Once we’ve got that as a unified national celebration, then we’ll be able to regularly make global headlines for reasons other than political.  We need to build a few wins for the country, that what we’re doing every day – starting with Shana’s IntelliCred and her 5 fellow Seed Engine ventures.

VA: Why not?

ME:  As I said there’s a cultural issue.  Moreso, there’s a dependency and entitlement mentality that has become a national epidemic due to many things, but obviously centred around historical politics and economics.  We need to focus on skills development that can compete globally, it’s not about giving someone something to do, and it’s about being better than the rest of the world at doing it.  Let’s start with education.

VA: What is key to innovative ICT development in the SADC region?

ME:   Differentiation, innovation and market disruption.  But an idea is not a business without execution.  The key is getting started.  The future of each of the ideas is dynamic and depends the on the skill and determination of the founders as well as the defensibility of the core business.

VA: For you both: What roles will ICT and innovation play in economic development over the next five years and are we geared for this?

SK: Attending a business event last year, the CEO of the company rattled of stats in terms of revenue made and where the money was being spent. It was made clear that companies generating large revenues directly contribute to economic development in terms of tax and salaries paid and most importantly supporting local suppliers. An important aspect to note about these large firms is that they were once start-ups. Entrepreneurs creating businesses and employing local talent will play a crucial role and technology allows business to do so much more. Creating new and innovative products to solve local problems first, with an international growth plan, should be more of a focus even at the start-up phase.

Are we geared for this? The initiatives that exist, in my opinion, could do with more marketing and as South African entrepreneurs, our tendency is to not give entrepreneurs who have failed, a second chance. The entrepreneurial support eco-system exists, it needs more support.

ME:  I strongly believe that companies like Seed Engine are changing the landscape for years to come.  We can boast skills and ideas so there’s plenty room to grow and pioneer new solutions and innovative companies.  Are we geared for it?  From an educational perspective we haven’t even started to make a dent in the raw talent out there.  From an infrastructural perspective, we are far behind where we need to be regarding connectivity etc.  And finally, from an investment perspective, the funds are there, but we need to apply a non-banking approach to venture capital and build the start-up ecosystem from the inside out rather than the outside in in order to create something sustainable and conducive to organic growth.  At some point, we also need to get passed the idea of being led by political circumstances and start to lead it instead.  That’s when the culture will be celebrated and supported.

Thanks for chatting with Ventures Africa!

VENTURES AFRICA – The Anzisha Prize, hosted by the African Leadership Academy in collaboration with The MasterCard Foundation, is inviting young businesspeople from around Africa to enter for its latest youth entrepreneurial competition.

With $75,000 in cash prizes, the prestigious Anzisha Prize aims to reward young African entrepreneurs who are making positive impact by transforming their communities through initiative and innovation.

There is also a $10,000 Energy Prize which will be awarded to the applicant who demonstrates ingenuity in developing sustainable renewable energy sources.

The Anzisha Prize which will close entries on April 1, 2013, is open to entrepreneurs from around the African continent aged between 15 and 22. Entries can be completed at the official site either in English or French.

Finalists will win an all-expense paid trip to the African Leadership Academy (ALA) in Johannesburg, to attend a weeklong entrepreneurship conference and awards gala.

Winners will share $75,000, courtesy of The MasterCard Foundation, and be given networking and learning opportunities to take their projects to the next level.

Twenty-one- year-old Andrew Mupuya of Uganda was announced as the grand prize winner of last year’s Anzisha Prize thanks to his paper bag production company, Youth Entrepreneurial Link Investments (YELI).

Past winners have included Kenya’s Diana Mong’are who founded recycling company Planet Green and became an evangelist for environmental conservation in her community, Ghana’s Yaw Duffour-Awuah who at the age of 16 launched a micro-lending company which has now grown to a financial services company, and Antoinette Furaha from the Democratic Republic of Congo who began a small micro-credit services company that invests in and empowers young refugee women in Uganda.

VENTURES AFRICA – Who is an entrepreneur? Are entrepreneurs born or made? Are some, more entrepreneurial endowed than others?  I need to know! These questions and many more has kept me pondering for a while now and I had to do an inquiry to get an answer. Though the term, entrepreneur, is often thrown around in the business world today, I had not taken a conscious consideration of what it actually means until recently. I suspect many reading this piece may be having a similar experience, so join me in this discovery to getting answers.

According to Wikipedia “The term entrepreneur is a loanword from French, and is commonly used to describe an individual who organizes and operates a business or businesses, taking on financial risk to do so.”

Over time, scholars have defined the term in different ways. Here are some prominent definitions:

“An entrepreneur is a person with a high need for achievement [N-Ach]. He is energetic and a moderate risk taker.” – David McClleland

“Entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services.” – Schumpeter

“An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource.” – Peter Drucker

“Entrepreneurs take initiative, accept risk of failure and have an internal locus of control.” –  Albert Shapero

Out of the definitions above, none was able to answer my question of are entrepreneurs born or made? or are some, more entrepreneurial endowed than others? So my quest went on for a while… But, not long after I came across ‘my saviour‘ in a book titled “Instinct: Tapping Your Entrepreneurial DNA” written by Thomas L. Harrison.

Thomas Harrison in his master piece (Instinct: Tapping Your Entrepreneurial DNA), posited both scientific research and anecdotal evidence to suggest that entrepreneurs have inborn predisposition to thinking in a certain way that contributes to their success. Such predisposition needs to be switched on by certain behaviours, but it’s there from the beginning. It’s instinctive. It doesn’t necessarily guarantee success, but lacking it seems to be pretty clear marker for failure in any entrepreneurial endeavor. He added that though, research in this area is in its earliest stages, he believed that lab science will increasingly confirm his day-to-day practical experience and observations.

As a result of the foregoing, he was able to establish two concepts that is worth taking to heart - entrepreneurial behaviour and entrepreneurial personality! Entrepreneurial behaviour covers the learning part of entrepreneurs which is usually expressed while Entrepreneurial personality covers the genetic side of entrepreneurs which is usually acted out.

Marks of entrepreneurs that often guarantee their success in business are ability to instinctively pounce on opportunity, being unstoppable in pursuit of a vision and being able to persuade others of the value of an idea. These marks he said, are often a function of people’s personality traits. Meaning he believes that entrepreneurs have a DNA that wires them for success called the DNA of success!

And at this point in my reading and inquiry, I had to pause, think, mediate and sum-up the courage to voice out and ask on this platform, what is your opinion here - Are entrepreneurs born or made? Are some, more entrepreneurial endowed than others?  Please share your thoughts in the comment section below.

Till next time, we are all work in progress…Nothing ventured, nothing gained.

VENTURES AFRICA – First and foremost, after years of writing, there is always a realization that the dilemma is certainly the razor-thin margin between fact and fiction. The tiny margin is enough to attract a broad spectrum of opinions, which is the most prominent upside of being a writer. In all fairness though, the most important part of being a writer is to be informative to your readers. In reality, I have to say; it’s extremely telling that the majority of people don’t seem able to make the distinction between entrepreneurship and small business ownership.

Sometimes, something is so obvious it needs to be stated: in as much as entrepreneurial ventures and the small businesses may have much in common, however, there are significant differences between them. Add to that the fact that nobody can necessarily argue otherwise, not even the small business owners themselves. On that basis, even if many people seem to have made it acceptable to use the terms “entrepreneur” and “small business owner” synonymously, still the issue remains; there is a glaringly big difference between the two. This is not necessarily intended to create confusion in your minds. This is simply – a cautionary tale of how rapidly the word entrepreneurship in my humble opinion, because of its elasticity, now refers to any small business for most.

We need to educate ourselves and our governments that there is a big difference between entrepreneurship and small business ownership. One Andile Khumalo, aptly stated it in the only best possible way, when he remarked, ”The later is a plumbing business that has hired 15 people in the past 10 years and will continue to hire 15 people for the next 10 years. The former is a malaria testing kit made by two coloured gentlemen in Cape Town, which currently hires 10 people and because it has signed up an international pharmaceutical is about to build a factory in Goodwood.” In a sense, our misconception about the two, is the reason due to a need to be self-employed we have small businesses sprawled across the entire African continent under the pretext that it’s entrepreneurship.

But while there are stories of successful African businesses, entrepreneurship on the continent is littered with those who are not so lucky and are having to endure eventful sojourns in the trenches. Entrepreneurship should be the poster child for capitalism, where smart private money should support productivity and provide a handsome and bountiful return to investors for their high risk appetite.

For many in Africa, mistaking entrepreneurship with having a small business has created the prevalent opinion that no one is financing businesses, and this unfortunately is the reason why entrepreneurs can’t get their ventures off the ground. Even though, tangible proof of this opinion can’t be revealed, contrary to this popular belief, the most promising businesses in Africa are getting funding from any corner of the globe.

From a personal perspective, entrepreneurship is so important from a job creation, economic growth and financial point of view. The reality is that we all might claim to know the differences; however, some of the major differences between entrepreneurial ventures and small businesses are the following:

Amount of Wealth Creation

Substantial wealth is the fruit of a successful entrepreneurial venture, most importantly; substantial would represent profits in excess of several millions. In as much, as both entrepreneurship and small business ownership create self-employment for their founders, perhaps most importantly, entrepreneurship doesn’t just replace traditional employment with another income stream. It creates a sack-full of riches that translates to a sizeable fortune for the owners far beyond their wildest dreams.

Let’s face it: it is highly unlikely that when Aliko Dangote set about starting his trading enterprise, he ever thought that he would have the Dangote Group reportedly employing 26,000 people in Nigeria alone. However, during the old days small family businesses used to be the norm, nonetheless, nowadays entrepreneurial ventures are creating millionaires and the lucky ones become billionaires in a short space of time. It’s no longer news that Aliko Dangote is Africa’s richest man, and is also among the World top 100 richest. He is a certainty to continue, unwillingly, to trouble statisticians with validating his net worth. He recently announced plans to construct cement plants in Iraq and Burma, on top of the fact that his cement company is already constructing similar plants in Ethiopia, Zambia, South Africa, Senegal, Cameroon, the Republic of Congo and several other African countries.

Furthermore, Dangote wants to build a $7 billion refinery facility in Nigeria, which would annually process 400,000 barrels of petroleum, according to media reports. Aliko Dangote surely is not a small business owner, he is an entrepreneur.

Speed of Wealth Creation

It’s never debatable that generating several million dollars of profits is a possibility over the lifetime of a successful small business. However, entrepreneurial ventures create wealth at a quick-fire rate and this is where we can distinguish the two -small businesses generate million dollars at a slow rate, whilst, entrepreneurial ventures generate million dollars at a breath-taking rapid rate. For instance, when Dr. Strive Masiyiwa decided that the telecommunications industry was the sector from which he would make his fortune as an entrepreneur, he set-up Econet Wireless. Even though, he engaged in a well-documented prolonged legal battle with the Government of Zimbabwe for an operating license, it didn’t stop Econet Wireless Zimbabwe from listing on the local bourse, less than a year after being finally granted a license and commencing operations. Within a few years, Econet Wireless Global had spread its wings into a few African markets and even set-up a Head Office in Johannesburg, South Africa. From being the last mobile-operator to get an operating license, to being the leading mobile-operator in Zimbabwe, Econet Wireless Group is a diversified telecommunications group with operations and investments in Africa, Europe, South America and the East Asia Pacific Rim. Once again, Dr. Strive Masiyiwa is not a small business owner, he is an entrepreneur.

Risk

If thought carefully, every type of business enterprise has an element of risk attached to it, nonetheless, entrepreneurial ventures are defined by high risk- otherwise, with the incentive of sure profits many entrepreneurs would be pursuing the idea and the opportunity would no-longer be very attractive. Normally, when risk is high, the odds will also be high that the rewards in-turn is bountiful as long as the plan is not botched. From a negative angle still, if the plan is botched, the losses from the failure could be so huge that the entrepreneur might lose big-time and take a long-time to recover. For example, not that you have to run your businesses like a casino, however, everyone knows that fortune favours the brave, and when you go to the casino and bet big, if you are fortunate enough you will reap a big fortune, and if you lose you will not only lose your fortune, you will also attract misery upon yourself. Some people even go to the extent of taking their own lives because they can’t withstand the humiliation, or the fact that they might be teetering on the brink of bankruptcy. This is exactly the same principle with entrepreneurial ventures, when you get it right you make a fortune, however, the downside is that when you lose, the losses might be of epic proportions.

Innovation

Mostly with small business little innovation is required; however, entrepreneurial ventures might need to exhibit substantial innovation to build sustainable businesses. Importantly, innovation may be in the product or service itself, or in the business processes used to deliver that product or service. Competitive advantage is very important for any business, and innovation contributes to achieving it. Having a competitive advantage over your rivals, results in wealth creation. For instance, the most notable example of this is the Apple and Samsung jostling for the smartphone market. Fortunately, this article has been written a day after the launch of the Samsung Galaxy 4 in New York. Even before the product has hit stores, superlatives are being used to describe the launch of the product, as compared to any Apple launch of its products. Innovation no-longer just ends with the design and production of the products; it has extended its arm to the product launches and marketing campaigns. To expect a small business to engage in these extravagances, is like, to put it bluntly, like Chester Missing stated,” expecting Bloemfontein Celtics to win the Soweto derby, it will never happen because Bloemfontein Celtics will never play in the Soweto derby.”

More often than not, we are captivated by countless rags-to-riches tales of scrappy underdogs chasing entrepreneurial success under the pretext of small business ownership, and likewise, the opposite, small business success under the pretext of entrepreneurial ventures. The sooner we can draw the thick line between the two, the sooner economic development in Africa can be spearhead by the real entrepreneurs who are seeking to create change and growth.

VENTURES AFRICA - “The child must know that he is a miracle, that since the beginning of the world there hasn’t been, and until the end of the world there will not be, another child like him.”  -  Pablo Casals

Such children become World Economic Forum – Young Global Leaders. And so, thanks to a loan from his mother, Patrick started his small business selling mobile phones.

Clearly an entrepreneurial head on his shoulders, Patrick has shown and demonstrated vision. Parallel to this foresight is the ability to action his vision. These are certainly then the true traits of a global Leader. This is definitely an African leader.

We take a depth look at a young man, beyond his years in vision and thought and find out more about his underlying passion that has yielded success.

Patrick, thank you for your time.

V: So some history on your ascension in the business world highlights you were nine when your mom gave you a loan. What was life like back then?

PN:  My siblings and I come from a very humble background; both my father and mother are teachers by profession. Education was the number one priority in our home. I was born in Tanzania but attended primary in Botswana and South Africa where my father worked before coming back to Tanzania for my secondary school education.  When I was 15 years, cell phones had just started to gain popularity in Tanzania, scratch recharge cards were scarce so I mobilised fuel station pump attendants in my hometown of Arusha to sell calling scratch cards – vouchers. I made relatively good profits at the time. By the time I was 18 years; I finished my secondary education and had a gap year before going to university. It was during that time that I took a loan from my mother and a free return ticket to Hongkong was offered to me by a close family friend and I started trading in mobile phones, doing regular trips to and fro. I did the business for 1 year and it was during that time, I spotted the long term opportunity in solar and decided to venture into it. Initially, due to the technical background required in the trade, I had to study about renewable energy, focussing on solar power then setup shop with our first office in Arusha and embarked on domestic and small scale installations. I did all the installations myself at the time.

V: Having evolved into the businessman you are in turn the positive repercussion is a role model of course. How were you raised and from then to now, what is the bond like between yourself and your mother?

PN:  My siblings and I grew up with teachers for parents. They were not just normal teachers, but dedicated teachers who loved their profession. I’m happy to say that my siblings and I attained valedictorian positions in our respective classes throughout. We would have schooling at school and schooling done at home – tuition, of which my mother handled that part. Focus on education remained key when growing up for all of us. I look back at all that I was taught throughout that various stages on my life and I am eternally grateful as it made me who I am today. Knowledge is invaluable and discipline towards work cannot be substituted. I was taught on the importance of discipline and hard work. There was no reward without effort.

My mother and I are very close, like any mother and son naturally are. Her trust in my work has never wavered and in turn moulded me at the time when I needed it the most, boosting my confidence. My father has always been there to advise me along every step of the way. I am blessed that I have a very supportive and loving family. Taking the path to do business wasn’t an easy swallow for academicians but my parents and siblings were there to offer support and even manage my office, throughout each stage.

V: We bet you were not expecting this question. How much did your mother loan you?

PN: My mother gave me the equivalent of  $1,800.  Being a teacher, Mum couldn’t afford more at the time.

V: How many phones did you sell when doing the phone business?

PN:  When doing the cellphone business, my target market was the mass market in the rural areas. They could only afford to spend $20 – $25 at the time. I sold well over 5,000 units.

V: Every person has at least one positive, strong characteristic. Which one or few were accentuated as just a kid running a business?

PN:  Discipline, trustworthy, industrious, creative, resourceful, punctual and loyal.

Gone are the days that we say ‘no hurry in Africa’ or ‘hakuna matata’. International business is done with global checklist, it doesn’t matter if the company is European, American or African; performance is expected.

V: You’ve built a successful company at a very young age. Looking back what do you appreciate most?

PN:  I appreciate and value every lesson I learnt along the way. Truth, honesty, integrity and zeal towards work. I believe that our current success is a product of all the many challenges that we have overcome, together with the awards we have received with great humility. I remain humbled by all and hope we get offer more in line with our company’s vision and mission for many more years to come.

V: As a result of your efforts with Helvetic Solar Contractors and Helvetic Group, what is the actual impact in Tanzania and how much is there still to do?

PN: Helvetic Solar Contractors has installed over 2,000 small and medium scale solar power and solar water heating systems in Tanzania government institutions, United Nations works, homes, school, clinics, dispensaries, hospitals, off grid lodges and hotels in Tanzania. We have also been awarded contracts in neighbouring countries like Kenya, Uganda and Rwanda.

With Helvetic Group we have supplied over 1MW of solar panels for direct use, to retailers, for projects in the region as wholesalers. We built a strong online platform so we are able to interact with regionally with great ease and 24 hour support system.

Helvetic Solar Contractors has a lot more that it can do. We have rolled out 26 agents in Tanzania that are already selling our small package product range. We are looking at increasing that portfolio so that we have more agents in the region so as that we continue our direct link with rural communities that need our products the most. I am happy to say that our agents cover every region of Tanzania and now also taken on 3 agents in Uganda. We have been able to penetrate and build a strong network with electricians and hardware stores throughout.

We welcome investors, strategic partners and project promoters to further our company’s vision and mission towards rural electrification in Tanzania and rest of East Africa.

V: Traditionally, alternative energy systems are expensive. How does Helvetic Solar solve this problem, especially for Tanzania and elsewhere in Africa?

PN:  I am happy to say that the Government of Tanzania is an example for other countries in Africa to follow. Solar and Wind products have NO VAT or import charges. This incentive has enabled us to lower the cost for the end user.

We are members of associations and NGO’s that have tailored outreach programmes towards rural electrification.

We work with donors and nongovernmental organisations closely in solar power projects throughout the region.

We also offer direct credit facilities for solar power installations for rural communities that have good track record.

At Helvetic, we strive to lower our cost for products and installations by offering FREE installation package throughout Tanzania as connection charges for solar in Tanzania had been far too high before Helvetic Solar Contractors came into the scene.

V: Helvetic sources their technology from the US and Europe. Last year I visited China and there is some pretty cool things happening there. Do you foresee any future surge in competition from the east?

PH: Indeed. Our company’s vision remains geared towards offering quality solar products at an affordable cost. China has already overtaken US and Europe in solar panel production.

The company is always looking for quality, affordable but reputable suppliers. It is true that at the moment US and European products remain expensive and they really haven’t focussed enough on the potential market in Africa, both small scale and large scale.

We are in talks with leading manufacturers in US and Europe so as to promote their products more in the region. It is my hope that this will yield results. Meanwhile, China remains a force to be reckoned with.

V: What is the biggest trade-off for Africa in terms of alternative energy at the moment?

PN: Africa is currently experiencing energy deficiencies both for domestic and industrial use. In order to achieve its development aspirations, Africa must increase its energy supply to catch up to, and keep up with, growing energy requirements, while avoiding adverse environmental consequences. Simultaneously, the international community has reached consensus that power generation based on fossil fuels (coal, oil, and gas) is the major contributor to climate change and aims, therefore, to reduce greenhouse gas emissions.

The main source of energy in Tanzania is still biomass (fuel-wood and charcoal), which accounts for about 85.5 percent of total energy consumption. Only about 14 percent of the population has access to electricity, but power consumption is growing at the rate of 11 – 13  percent per annum. Where electricity is available, the quality of supply is poor and blackouts and other service interruptions are common. The relatively high cost for businesses associated with maintaining a reliable supply of electricity via use of private generators during blackouts puts pressure on Tanzanian firms to increase product prices to recoup these costs, thereby becoming less competitive against similar products from firms in other countries.

V: Do you think setting up solar research farms i.e. funded by manufacturers of wind or solar technologies could be cost effective for Africa, as an initial alternative of course?

PN: Indeed. Feasibility studies have been done to prove that it is quite cost effective and the case in point. It remains the interest of manufacturers to work with companies such as Helvetic to grasp the opportunities that lie ahead with such ventures.

V: Any chance of you looking for the next nine year old “Patrick Ngowi” via a funded programme?

PN:  A lot has transpired over the last nine years and I believe that a lot more is yet to come in the next nine years. I am a entrepreneur and passionate environmentalist. ‘Going Green’ is my primary goal and without a doubt I will engage in any sound programmes to further my interests.

V: Lastly, Patrick Ngowi’s ideal getaway?

PN: I am proudly Tanzanian and happy to say that our country is truly blessed with great scenery and unique locations ranging from Serengeti plains, Ngorongoro crater, Kilimanjaro mountain, Zanzibar Island and many more. For me, these are my ideal gateways. It will take me awhile to complete a full circle around this and it surely does it for me at the moment.

Again, thank you for taking the time. Ventures-Africa

VENTURES AFRICA – Nigerian billionaire and Chairman of Atlas Oranto Petroleum International Limited, Prinze Arthur Eze has donated 1.8 billion naira ($12 million) to a Nigerian Church charity, St. Stephen’s Anglican Deanery and Youth Development Centre, for youth development.

The oil tycoon made the donation in Lagos at the church’s fund raising bazaar presided by President Goodluck Jonathan.

The event had in attendance, Visafone Chairman Mr Jim Ovia, Capital oil Chairman Chief Ifeanyi Uba, A-Z Oil Chairman Chika Okafor, Arik Air Chairman Sir Joseph Arumemi–Ikhide, billionaire Mr Oba Otudeko, and Tony Elumenu.

6 billion naira was generated at the close of the fund raising bazaar with Arthur Eze’s donation being the largest.

President Jonathan, whose hometown church was the beneficiary of the fundraiser, said the church was put in charge of the Youth Development Centre because of the track record of missionary churches for funds effectiveness and community development.

VENTURES AFRICA – One of the world’s best schools for entrepreneurship, Babson College has announced it will award Ghanaian entrepreneur Mr Patrick Awuah with a Honorary Doctor of Laws degree.

Mr Awuah founded the Ashesi University College in 2002 in Ghana. It is a private, accredited, non-sectarian college associated with institutions such as the Microsoft.

Ashesi’s mission is to train a new generation of ethical, entrepreneurial business leaders in Africa and to nurture excellence in scholarship, leadership and citizenship.

The US-based Babson College named Mr Awuah, a former programmer at Microsoft, among three persons as 2013 Honorary Degree candidates for their outstanding entrepreneurial leadership.

The other two are Kip Tindell, Chairman and CEO, The Container Store; and Saras Sarasvathy, Associate Professor, Darden School of Business, University of Virginia.

They will all be honoured at Babson College May 18, 2013 at a ceremony, according to a statement issued by the College March 13, 2013.

“Patrick Awuah Jr. will receive an Honorary Doctor of Laws,” Babson said while both Tindell and Dr Sarasyathy will each receive an Honorary Doctor of Humane Letters.

Mr Patrick Awuah has been recognized globally for creating a bold and innovative educational model in Ashesi University College that offers the promise of transforming higher education in Africa.

“This new kind of liberal arts university, established in Ghana in 2002, educates young people in critical thinking, ethical service, and entrepreneurial leadership,” Babson said.

For his inspiring accomplishment of developing and leading an institution to educate Africa’s next generation of leaders, he was nominated as a Global Leader 2007 by the World Economic Forum.

In 2009 he won the John P. McNulty Prize from the Aspen Institute as an extraordinary young leader making creative, effective and lasting contributions to his or her community.

In 2010 he was recognized as Ghana’s 8th most respected CEO and the winner of the Educational Development Millennium Excellence Award in Ghana.

In 2012, the Haas School of Business at UC Berkeley presented him with its 2012 Leading Through Innovation Award.

He holds Bachelor degrees in Engineering and Economics from Swarthmore College, an MBA from UC Berkeley’s Haas School of Business, and an Honorary Doctorate from Swarthmore College.

VENTURES AFRICA  - As hordes of Under 30 CEOs emerge, changing phenomena to norm in African business, the need to equip a vibrant business savvy generation with the necessary tools to create sustainable businesses is of utmost importance. However, the question is: How and at what cost?

Diary Of An Under 30 CEO, in its own way, is partly playing a part by disseminating information on how to build sustainable business and the principles young entrepreneurs need to imbibe, so as to avert the dangerous explosion of   youth unemployment on the continent before it becomes a continental catastrophe. At a time when investing in Africa, is the most used phrase at business forums globally, the challenge for African governments is how they can get their idle youths to join in, on the gold rush to exploit the resources abundant on the continent.

There have been false dawns, and a lot of encouraging nationalist rhetoric about entrepreneurship. Even though this is not racially inclined, the realities of entrepreneurship on the continent should hit home to everyone. It’s never too late to reverse the self-entitlement perceptions of funding that is prevalent among the young black African community; the best we can do, is not get used to expecting that every business has to be heavily funded externally first, for it to get off the ground.

At this juncture, it is no wonder that it seems to be easier for young white Africans, and Africans of Asian origins to start business ventures at an early age, whilst their black counterparts seem to always hit brick walls. Amongst most aspiring black African entrepreneurs, a self-entitlement mind-set has been cultivated, that without funding, they can’t be able to get any business venture off the ground. No other explanation springs immediately to mind for this mind-set and its origins, however, most African governments have failed the young black entrepreneurs, through creating hope among these aspirants, through various initiatives that have eventually benefited the few well-connected ones.

Although there is always scepticism accompanying any government initiative towards developing the entrepreneurship spirit, it is noteworthy, that some African governments are making small strides in trying to foster entrepreneurship on the continent. Moreover, it’s in the public domain that most of these initiatives are failing to achieve the intended goals. Falling victim to corruption, nepotism, and reckless abuse of the funds become the order of the day. This leaves the young black entrepreneurs frustrated and disillusioned, because so many place all their hope on the benevolence of their governments. The ending ruins all enjoyment of what goes before.

This as it may, passes the onus into the hands of the aspiring entrepreneurs, to grab the bull by the horns and chart their own road maps to success. Whenever it’s possible, an entrepreneur should own businesses outright. Not that we want to promote selfishness, however, in the same vein, we want to encourage a shifting of the mind-set from a sense of depending heavily on external funding  and not have the courage to build a capital base internally, step-by-step.

Outright ownership of a business means that you make all the money for yourself. It’s always awesome to have your own money at risk, and then have to live each passing day with the consequences of your decisions regardless of whether they are good or bad. Whenever you will take on the risk, the end result is to reap the rewards. Furthermore, the better you are at managing risk, the better chances you have of reaping more rewards. By allowing yourself to take calculated risks that don’t spiral out of control, you get yourself into a situation where your options will be good ones when the big pay check arrives, however, the risks should be measured, that it won’t be hard to see any realistic alternatives, because there are always several negative consequences when the penchant for risk-taking is irrational.

In a sense, it’s never debatable that some people need funding, but giving investors equity solely means the money and in many instances, control of the business isn’t in your hands. Your creativity or ingenuity will never shine when for every idea you have; you need to consult the investors, to get approval on whether that idea satisfies their investment policies. Don’t ever forget that this is your baby and if you want it to be part of a lasting legacy then you need to see it through to the end. Even if you are bootstrapping, know that it’s war out there in the trenches, and that tough times don’t last but tough people do. Therefore, your business will always get to a stage where it will be able to generate enough cash flows even without getting external funding, through proper management systems; the sky is always the limit.

For instance, because of growth some organizations reach a stage where there are no better options for raising finance rather than listing on local or international bourses.  However, the most important element of which one has to be able to retain as much control of the business, so that you always get the required approval of voters to push through your ideas. Even though, due to rapid growth some entrepreneurial ventures have to list on local and international bourses, thereby diluting the shareholding, however, most times the faces of the organizations mostly have control in those businesses.

It’s a fact that you can’t control the destiny of a business, if you are like an outsider watching on. How can you have the ability to direct the culture of your company when you are a minority shareholder? You will always be influenced by the decisions of the more powerful ones. Outright ownership allows you to choose the people you work with. Decisions of hiring and firing don’t have to be consulted too much, because the most important thing is to surround yourself with positive people who can give you confidence, and the optimism you need to keep moving forward, to achieve your goals. Work with people who you know will help you achieve success.

Sherry Phelps of Southwest Airlines said, ”The first thing we look for is the ‘warrior spirit’. So much of our history was born out of battles- fighting for the right to be an airline, fighting off the big guys who wanted to squash us, now fighting off the low-cost airlines trying to emulate us. We are battle-born, battle-tried people. Anyone we add has to have some of that warrior spirit.” Hire for attitude, skills can be taught, unfortunately passion can’t. You can’t have the liberty to create your own recruitment policy with someone breathing down your neck. Like every other game, the more you play the better you get. You learn to recognize the good opportunities from the bad ones, by being in the frontline directing operations, not being directed.

Even if you have to start small in your shack, don’t despair, all these big global corporates started from somewhere, and mostly it was humble beginnings. No matter your business model, there is always space for everyone and everything, as long as you can contribute to improving people’s lives. Aliko Dangote aptly summed the opportunities inherent on the continent, in his statement below.

Unfortunately, if you are Africa’s richest person, you get mentioned everywhere, and be quoted at every given time because the serious people always have something to learn from those that have made it before them. Likewise, Diary Of An Under 30 CEO is no exception, to be the best learn from the best, and therefore we will end this week’s diary entry with a quote from Aliko Dangote.

“The opportunities are here, the growth is here. Where else do you get this type of growth? Maybe Asia, but the difference we have from them is that we are starting from a low level. The return on investment takes out the risk. Foreigners will not invest if locals are not doing so. We must lead or nobody will come. The economy of America was not established by the Chinese,” said Aliko Dangote