SANZAF ENTREPRENEURSHIP TRAINING CENTRE

SANZAF BURSARY PROGRAMME SANZAF SKILLS TRAINING PROGRAMME

SANZAF ENTREPRENEURSHIP TRAINING CENTRE

We measure our success by the ability of clients to run their households without the support of welfare services

OUR PROGRAMME • Incubation type programme

Training

Funding

• Teaching skills necessary to run small owner-managed business Mentoring

• Delivered over seven weeks • Candidates are referred by SANZAF’s Welfare Department or walk-in off the street

Usually we are the place of last resort after exhausting family, friends and community support structures Problems include lack of finances, unemployment, low income, as well as emotional and psychological stress

PHASE 1 ASSESSMENT • Interviewed to understand their emotional / psychological state • Aptitude and attitude towards running own businesses assessed • Ability to read, understand and write English • Ability to count and perform basic arithmetic calculations, • Credit/Criminal clearance

A negative status often prejudices a candidate’s opportunity to contract business should they succeed in accessing funding

PHASE 2 TRAINING

• Generating Business Ideas • Entrepreneurship Skills • Legal Issues

• Site Selection • Finances • Project Management • Sales and Marketing • Strategy

The business skills component is structured and delivered such that each session is a building block towards the business plan which candidates submit after their training, i.e. in the seventh week

PHASE 3 BUSINESS PLAN

Internal Assessment • Business plans first assessed by facilitators to ensure that they are appropriately completed • Site visits also conducted to get a sense of fit between business idea and location External Assessment Business plans are then sent to independent external assessors who conduct a detailed feasibility assessment

If both internal and external assessors approve then the business is funded

If not successful, candidates are given an opportunity to fix and improve their business plans and re-submit

PHASE 4 FUNDING

Capital Funding • Up to USD 5,000 start-up capital • Including costs for fixtures & fittings, equipment and stock • Payment direct to suppliers / service providers on invoice

Safety-Net Funding* • Assistance for three months with all household and business running expenses, including rent, electricity, transport, etc.

The “safety-net” allowance can exceed the Capital Funding and helps candidates further capitalise their start-ups. If utilised correctly, candidates can potentially increase the value of their business by up to 50% over a three month period

PHASE 5 MENTORING

Financial Performance Reports • Submitted fortnightly • Helps track cash flow and shows evidence of business activity • Early warning signal for potential failure and if detected early enough, appropriate business rescue can be initiated Site Visits by Mentors • Conducted once a month • Helps verify report/performance • Opportunity to share challenges

Although we have limited control over the candidates after funding them, we try and provide whatever practical support and advice we can by offering a mentorship service which also acts as a Monitoring and Evaluation (M&E) mechanism. This is done through site visits and timely submission of cash flow reports

CONCLUSION • Over 800 candidates trained • Over 450 candidates funded • 60% success rate

• Success is due to the right mix of Training – Funding – Mentoring • Delivered in simple language

• Based on experiential learning • Short / Quick turn-around time

While the majority of candidates are still at survivalist level the programme affords them an opportunity to build reputational collatarol (and financial history) so that they can access funding from financial institutions if they require same

PROFILE OF CANDIDATES BY GENDER Male 55%

vs

Female 45%

80 70 60 50 40 30 20 10 0 2006

2007

2008

2009

2010

2011

2012

2013

PROFILE OF CANDIDATES BY AGE

Average Age:

Under 25 (8%)

25 to 40(19%)

Over 40 (73%)

100 90 80 70 60 50 40 30 20 10 0 2006

2007

2008

2009

2010

2011

2012

2013

BUSINESS PLANS SUBMITTED vs BUSINESS PLANS APPROVED

100 90 80 70 60 50 40 30 20 10 0

Submitted Business Plans 75% Funded Business Plans 57% (43% of total)

2006

2007

2008

2009

2010

2011

2012

2013

AVERAGE SUCCESS RATE 60%

Successful

Failed

50 45 40 35 30 25 20 15 10 5 0 2006

2007

2008

2009

2010

2011

2012

2013

DISBURSED (2010 – 2013)

Start-Up Capital

Welfare

Admin

Total

2010

152,000

58,800

36,000

246,800

2011

154,400

128,000

42,000

324,400

2012

230,000

182,300

42,000

454,300

2013

16,300

130,000

48,000

34,100

Total

699,400

499,100

168,000

1,366,500

Amounts quoted in USD

PROFILE OF BUSINESSES FUNDED Tuck Shop Phone Repair Seamstress Film Studio Quilt Manufacture Laundromat Curtain Manufacture Photography GD. Printing Motor Trimming Tie-Dying Stationery Supply W/screen Repair Bakery Stand Manufacture Car Wash Public Phones

Hair Salon Clothing Retail Tailor Sweet Distribution Transportation Flower Decor Upholstery Perfume Retail Jewellery Mnf. Bread Delivery Appliance Repair Welding Car Care Products Ozone Therapy Acrylic Nails Buy and Braai Dried Mango Prod.

Take Away Bookkeeping License renewals Shoe Repairs Crèche Canteen Electrician Hair-Care Products Mechanic Cleaning Service Tool Hire Panel Beating 2ND Hand Car Retail Food Trailer Art Studio Security Services Diamond Evaluation

Internet Café Carpenter Gardening Services Safety Gear Supply Barber Shop Catering Fruit and Vegetables Hardware Car Spare Retail Health Care Products Beauty Therapy Candle Making Silk Screen Printing African Artefacts Plumbing Cement Resurfacing Gardening Services

SANZAF BURSARY PROGRAMME

With over 92% pass rate over 95% of the candidates find employment within a year of graduating.

BURSARY BIG PICTURE

• Average undergraduate degree costs USD 3,000 • 25% of income set aside for education (various initiatives)

• Bursary budget of USD 1,2 million (2014) • 92% average pass rate over last 6 years

• 95% of graduates find full time employment within a year

BURSARY GENDER • Selection based on merit – results • Percentages mirrors trends at Universities • Average Age = 22 years

Females

58%

Males

42%

0%

10%

20%

30%

40%

50%

60%

70%

BURSARY INCOME • Priority given to lower income families with good results Income Bands $000 - $100

# 13

$101 - R200

8

$421 - $300

16

$301 - $400

10

$401 - $500

7

$501 - $600

6

$601 - $700

7

$701 - $800

7

$800 - $900

15

$901 - $1000

12

>$1500= 5% $300 $1000 $600