Only 20% of the business incubators in SA focus on information and communications technology – the other 80% support a wide range of other industries.

Business incubators are predominantly an American invention. The concept is that just like a baby needs care and nurturing to grow big and strong, a young business requires a support structure to lay a solid foundation for future growth. SA has only fully caught on to this in the last decade or so, and now has more than 30 public and private business incubators countrywide.

You get two types of incubators: technical and commercial. Technical incubators have expertise in a particular industry and commercial incubators provide business support to any type of business. The industries represented in SA’s incubators include chemicals, life sciences, automotive, metals beneficiation, biotechnology, furniture and wood, steel, biodiesel, agriculture, construction, textiles (clothing), and even small-scale mining.

Most incubators in SA form part of the department of trade & industry’s Small Enterprise Development Agency programme. They do not aim to make a profit from their operations. The few private-sector incubators in SA make money from the businesses they help to grow – either by charging fees (training, rent, and so on) or by owning a share in the business. Some private incubators secure a sponsorship for the businesses they take on, providing the business owner with free support.

So what do these incubators actually do? If you have a business idea that has merit, you would apply for incubation support. If accepted, you would have hands-on business growth support until you “graduated” from the incubator. You would receive support through mentoring, training for employees, marketing and branding, market analysis, strategy and financial planning. Many also provide funding support, either through direct investment or by introducing you to funders.

If you are part of a “physical” incubator you also receive office space and access to reception and boardroom facilities.

SA needs more young leaders to pursue their own business opportunities – and they should not be put off by the idea that their industry is not “sexy” enough. After all, 60% of SA’s workforce is employed by small and medium-sized businesses. So, no matter what your idea might be, you might find that there is more support for you out there than you thought.

Ulrich Stark works as a business development analyst in Johannesburg and is passionate about entrepreneurship, grassroots socio-economic development, and new media solutions in sub-Saharan Africa. He is a former head of Students in Free Enterprise (SIFE) at Stellenbosch University.

Most global stock markets have fallen sharply from their April highs, when jitters about a sovereign debt crisis in Europe brought the 2009-2010 bull market to a sudden end.

Despite a midyear rally, the JSE all share index has fallen 10%. Wall Street’s S&P500 has lost 13%, London’s FT100 has shed 10%, and Tokyo’s Nikkei 300 has dropped 19%. Most markets are now showing little or no growth for the year so far, and some are down.

Worries about Europe’s debt have eased, though the underlying strains and risks continue.

SA banks have reported some improvement , with credit impairments shrinking, but they see little progress in lending volumes. The CEOs all speak of an uncertain economic environment.

The concerns now are mainly about the slow and uneven growth pattern, and the increased risk of a double-dip recession, particularly in the US, where unemployment remains stubbornly high, at 9,5%. In most previous recoveries from a deep recession, employment increased faster.

The problems are partly structural, including too much consumer and government debt, an enfeebled banking system and weak asset prices. Sentiment or confidence is just as important.

Heightened risk aversion, scepticism and weak confidence on the part of investors, businesses and consumers are eroding market returns and helping to restrain — or defer — the recovery. If the mood of uncertainty continues, investors will have to lower their expectations for returns in the medium term. Earlier expectations for a strong recovery in local company earnings over the next two years may also prove to have been too optimistic.

The negative market sentiment is reflected in global investment flows. EPFR Global, a US firm that tracks investments, says flows have shifted decisively towards funds investing in fixed-income assets. It says choppy equity markets are keeping global and emerging market bond funds on course for a record year.

Bonds, as well as emerging market economies in reasonable shape, are being seen as safe havens. Foreign buying of SA equities and bonds has remained positive this year — and, mostly, through the strike by public-sector workers — but there has been a marked preference for bonds in recent months.

In a speech last week, US Federal Reserve Board chairman Ben Bernanke tried to strike a reassuring tone, but also pointed to significant concerns. “In many countries, including the US and most other advanced industrial nations, growth during the past year has been too slow and joblessness remains too high,” he said. “Financial conditions are generally much improved but bank credit remains tight. Moreover, much of the work of implementing financial reform lies ahead of us.”

Though the markets’ main concerns seem now to be focused on the US, the recovery in Europe remains uneven, and austerity measures (mainly cuts in public-sector spending) announced by most large economies in Western Europe could weaken growth prospects — though they should improve longer-term growth potential.

This is an extract of a larger story from the Financial Mail. For the full story, click here.

The YWIF mentorship project, traditionally a three-day annual summit, drastically revised its vision for 2010. It hosted three formal events over the year, inviting the top students of UCT from all faculties. The opening dinner was at the Lord Charles Hotel, where guest speaker Dora Sithole, editor of True Love magazine, set a demanding precedent for the rest of the year’s speakers. This event was followed by a panel discussion with several working women, enabling the students to think through challenges that they will face in the workplace. Management consulting firm McKinsey then held a workshop in the second semester, engaging with students about what drives and sustains successful women leaders.

For the programme duration, students were also divided into smaller groups, each assigned a mentor from its field of interest. This allowed the women to gain an understanding of various job opportunities available, as well as reap practical advice regarding their career paths.

The final event in Camps Bay began with an opening address by the chief economist of the Absa Group, Jeff Gable. He amused the audience, joking that much of his time is spent choosing a catchy phrase that epitomises Absa’s view on economic prospects. For March 2010, this was “Party continues, but watch the punch bowl”. His most recent phrase is “Rebound, but no raging bull market”. He said Absa continues to be more optimistic than its competitors, yet the comma in both phrases signifies its awareness of risks. These risks include European debt and Chinese bubbles, while domestic constraints of inventory levels and electricity shortages likewise present cause for concern.

Nyagaka Ongeri, head of global finance and risk solutions at Absa, followed with some practical advice on following a career in investment banking. Drawing on the opinions of various women working in the bank, he advocated the importance of networking. He encouraged the students to be assertive in making a conscious effort to create relationships. He also highlighted the value of investing in an active working relationship with a mentor.

The evening ended on a high note – a wine and chocolate tasting presented by Bilton wine estate. Young Women in Finance project leader Ann-Maree Tippoo then closed the evening and handed out Absa’s Dictionary of Finance to each student.

As the participants left they spoke among themselves about the value they had derived from the year-long programme. One commented, “It has opened my eyes to the job opportunities available.”

Picture by James Hu

While it may not come as a complete surprise that there are high-placed criminals in the public services though, it is however shocking to find similar behaviour in the hallowed halls of higher learning.

Take former Harvard University student Adam Wheeler (pictured) for example. The US (Milton, Delaware) student, who was charged with 20 counts of larceny, identity fraud and pretending to hold a degree, was also charged for faking his credentials to get into the esteemed college.

Wheeler, who was admitted to one of the US’s most prestigious universities in 2007, was close to getting his degree when the institution began to question his work and his credentials, according to a news report on TheBostonChannel.com.
But by then his scheming had enabled him to gain $45 000 (about R330 000) in financial aid, grants and scholarships.
At home earlier this year, the Times newspaper reported that the National Student Financial Aid Scheme (NSFAS), set up to help the country’s neediest students was being defrauded by students.

Although thousands of students do not qualify for the R2.3bn scheme because their parents earn above the set threshold of R122 000 a year, many are submitting sworn affidavits to universities declaring that they are supported by their poverty-stricken grandmothers.

Their behaviour has been dubbed the “Granny Scam”.

A first-year student from the University of KwaZulu-Natal, who for obvious reasons wishes to remain anonymous, said she did not feel guilty about lying about living with her grandmother in order to secure a loan.

“My parents were aware that I had given my granny’s details [to apply to the scheme]. I was forced to go this route as I otherwise would not have qualified. Maybe I will feel guilty if I don’t succeed with my studies,” she said.
Financial aid offices in universities around SA have confirmed that many of their students were going the “granny route” to secure loans.

Experts say the qualifying threshold should be increased – up to R300 000 over the next three years, one university vice chancellor advised.
“It’s very difficult to get to the bottom of it as there are a lot of truly genuine cases where people – especially those from the rural areas – really don’t have the financial means and were truly raised by their grandparents because their parents either died or abandoned them,” says Luyanda Bheyile, financial aid administrator at Rhodes University.

Bheyile said although it hasn’t been extensive common occurrence at the university, they have had a few cases with one student being expelled when it was discovered he had lied to obtain financial  assistance from the university.

“Some say their parents are unemployed while they are not. Luckily we have a system – we do an ITC check for every claim of unemployment. Instead of the normal credit check we just find out whether the parent is employed, because in order to apply for credit you need to have a job and one has no reason to lie about your employment if you really need credit,” he says.

“Most of these students’ parents work for the government. Fraud is a problem but we don’t have the capacity to deal with it,” Roekus de Villiers, director of financial aid at Tshwane University of Technology, said.

“We have managed to catch out people like that, so in most cases we find out before we give out the loan,” Bheyile said.

Enforcing the law on such fraudulent behaviour is quite difficult in SA, especially because in most cases, the perpetrators are just genuinely desperate to get out of their dire financial situations.

“We would however like to move away from accepting sworn affidavits as anyone can fraudulently get one from a police station, but distinguishing between a genuine and fraudulent affidavit is a difficult exercise, even for the police,” Bheyile said.

Picture courtesy of www.bostonist.com

Giliomee made one thing clear “It’s time for the bus to stop.”

According to him, the university has wasted countless hours and resources and energy on a debate that has been going nowhere for years. He argued that it was time for students to take a pro-active approach and demand a resolution.

But the question remains: do students really care enough to take a stand? Is this a battle worth fighting?

This year the debate was reignited by the university’s decision to introduce parallel-medium classes within four faculties.

This meant that first years within the Engineering, Economics and Management Sciences, Natural Sciences and AgriSciences faculties can now choose between lectures conducted in English or Afrikaans. In 2011 the faculty of Arts and Social Sciences will also follow this model.

This model has replaced the T-option (double-medium education), where a lecturer uses Afrikaans and English in one class, ideally on a 50/50 basis.

Chris Fick van Niekerk, vice-chairman of the Adam Tas Student Society, which promotes the Afrikaans language and aims to represent Afrikaans-speaking students at the university, says students’ voices are not being heard on the practical implication of the language models.

“The management at the university chooses to implement an incomprehensive evaluation system. If there is such a system, it is not at all a transparent one, which means students cannot hold them accountable.”

He also says that the Student Representative Council (SRC) and the Academic Affairs Council (AAC) are being very vague, evasive and hesitant to support a pro-Afrikaans language model.

“There would have been a lot more controversy about the affair if all Afrikaans-speaking students weren’t able to understand English. Most students choose to keep quiet and to be apathetic about the issue because they do not want to be labelled,” says Van Niekerk.

Chairman of the SRC, Gerhard Wiese, says they support the university Board’s decision to implement parallel-medium education in 2010.

He says: “It gives wider access to students who do not understand either English or Afrikaans; it contributes to the academic success of students and it will ensure that there is a place for Afrikaans as an academic and scientific language at the university.”

The chairman of the ACC, Neil de Kock, says: “We do not support any official language model – we merely represent the academic affairs of students.” De Kock argues that the language model is irrelevant because each of the nine faculties follows their own model and that the ACC has to support students from each faculty.

Stefan Meyer (23), a postgraduate student in Afrikaans, says he doesn’t care about the language debate. “It’s all the fat cats at the university who discusses the issue. Students don’t care.”

According to Tom Henson (21), an international science student, students do not even know what the current language model is. “Language has never had a negative impact on my studies. My fellow students and lecturers have always been very helpful when I do not understand Afrikaans.”

It is impossible to predict how long the language debate at Stellenbosch University will continue. It is clear most students are apathetic about the issue and that organisations like the SRC will not step up and demand clarity or resolutions.

The question also remains as to how productive and meaningful the debate really is. Are decision makers at the university merely being distracted by a small issue when there are much bigger things to discuss?

It is indeed time for the bus to stop.

Or, maybe it’s time for students to take the wheel.

The forum, which in its sixth year, has created a platform for students from 30 nationalities across five continents to come together. Discussions centred on sustainable development, synergy and the role of citizen participation. Due to the advantage that lies in cumulative knowledge and insights, the topic was an extension of the previous editions. Empowering and identifying agents of change was a central theme in 2008. In 2009 the focus shifted to the nature of the changes that were necessary. This year, delegates participated in a cultural dialogue regarding each individual’s responsibility in affecting this change and how we can practically go about boosting our actions in the new decade.

If you are wondering what the responsibility of affecting change entails and what it means to “boost your actions”, I invite you to consider the following:

In the last century there has been a universal shift in the aims and incentives that populate the world of capitalism – companies have become socially aware entities; individuals have embraced an ethical component of consuming. On a global scale, it seems that the world has adopted a set of morals which sees companies encouraging awareness of their impacts on society and the environment. This “triple bottom line” atmosphere is what encourages sustainable development; however, once we depart from the buzz surrounding sustainable development these days, we realise that it is a very different reality once we consider implementation and practical aspects. The reality of employing and promoting sustainable development is very different in a developing nation compared to the industrialised world.

Developing countries, like SA and Argentina, have limitations and challenges unique to their situation which impedes the possibility of merely implementing the sustainable development policies of the first world. These challenges and limitation cannot be ignored. Rather, innovative approaches to implementing sustainability measures and passionate leadership structures must bridge this gap. The SABF seeks to identify 100 such young leaders and unite them over three days to build a support network, exchange best practices and as a whole, promote sustainable development.

Since 2004, more than 500 young individuals have participated, debated and learnt from this very experience. This year was the first time in the history of the event that three participants from the African continent were welcomed, representing SA (myself), Zimbabwe and Nigeria. Continuous emphasis was placed on the importance of this achievement and the necessity of both continuing and expanding the representation of the African continent at the SABF. There is a great deal to learn and share among young individuals from different developing nations who experience first hand the global challenges of today.

Various problems are experienced in a parallel manner by Africa and South America: SA is a primary exporter of gold and it is often suggested that if value is added prior to exportation it would serve as a significant boost to the Gross Domestic Produce (GDP) of our country. Exporting manufactured products rather than raw materials is a popular argument for the improvement of a country’s economic position. Argentina finds itself in a similar position, being a prime exporter of raw leather instead of leather products. The SABF creates a platform where these types of shared problems can be debated. Delegates have the opportunity to present and learn from case studies which they are then able to integrate and promote in their respective environments.

It has been my experience that the opportunity for converting ideas and debates into actions following such a summit is often questioned by onlookers. I tend to have a very bright-eyed approach to any opportunity to share with others the realities in SA, the challenges we face as youth regarding unemployment, skills development, education, poverty and civic engagement. Thought the SABF, I was fortunate to meet with 99 other individuals from all around the world that shared my sentiment. The three days were filled with presentations, workshops and activities aimed at fostering a continuous dialogue between delegates and sparking difficult questions that ranged from the role of youth in the conflicts of the Middle East to the viability of micro credit financing projects in rural areas of North Africa. The answers and ideas that were offered enriched each of our perspectives and gave us the opportunity to think outside of the box that was our immediate geographic boundaries.

The SABF experience was more than merely an exchange of mutually-beneficial ideas, It represents a collaborative fusion of passion for change with an important component dedicated to the practical implications of this fervour. Given that previous editions of the SABF have sparked the creation of entrepreneurship ventures, non-profit organisations and support networks, I harbour a great amount of anticipation and trust that the ripple effect of the sixth edition of the SABF will not be smoothed out soon. As was emphasised numerous times by delegates, it has become increasingly necessary that young people strengthen their actions and expand their capacity through collaboration and synergy. The SABF is an opportunity that seeks to fulfil exactly this need. With intensive planning and a magnitude of experiences it offers delegates, this summit certainly goes a long way towards extracting and sharing valuable transferable knowledge.

Many people stand amazed at the fact that a single essay, which serves as your application, has the ability to open up doors all the way to Argentina – but in reality, the SABF is about gathering 100 students from all around the world who share the same passion. This passion is defined in the theme of each year’s forum: Boosting our actions in the new decade for sustainable development and citizen participation. If your essay speaks of the commitment, knowledge and innovation that will make you a pro-active and inspiring delegate – then 40 business leaders, 99 brilliant other delegates and tango parties might be part of your calendar in 2011.

IMAGE: Travelholica

SIFE International operates in more than 40 countries with 10 of them from Africa including Egypt, Ghana, Zimbabwe and Nigeria. The not-for-profit organisation works with leaders in business and higher education to mobilise university students to make a difference in their communities and give them the skills needed to become socially responsible and effective business leaders.

To participate in the annual competition, students formed teams and applied business concepts to develop outreach projects that improve the quality of life and standard of living for people in need. The best programme and presentation would be awarded by a panel of judges made up CEOs, industry players and members of the SIFE board.

This year’s competition saw 24 teams battle for first place and the opportunity to represent SA at  the international contest in Los Angeles, USA, from the 10 – 12 October this year.

Team UP, in collaboration with Neltropica Fruit and the Tshwane Market, managed to turn perishable fruit that would have otherwise been wasted into dried fruit products, creating a viable and profitable business, and winning the judges’ hearts. .

Each team was given about 37 minutes to organise and present their business concept, and were then subjected to a gruelling questioning session by the judges.

The event, now in its ninth year, was attended by, among others, Graham Briggs, CEO of Harmony Gold Mining (a major SIFE SA sponsor), Venete Klein, chief corporate affairs and sustainability officer at Absa bank (also a big sponsor) and guest speaker Nick Christelis of Christelis and Associates, a business strategy consultancy.

FMCampus observed first-time finalists, the University of Zululand (UNIZULU) and the reigning champions of last year University of KwaZulu Natal’s presentations.

Unizulu, which got the runner-up position, worked in a number of areas, such as  farming using waste by-products; retailing (helping hawkers manage their productivity better) and catering using organically grown vegetables from their farming initiative.

One of their more ambitious projects would allow electricity savings using kinetic energy from motor vehicles to power traffic lights. They are in talks with various stakeholders, including their municipality, to institute the concept.

Unizulu’s 11-member team indirectly affected the lives of about 1200 people through their activities.

The KwaZulu Natal team even managed to cross SA borders to work with SIFE Solusi University in Zimbabwe to the benefit of a community there.

“We salute you for all your caring initiatives,” Klein of Absa said.

Last year’s winners University of Kwa-Zulu Natal were however bumped off to third place while Durban University of Technology was placed fourth, with  CIDA City Campus, University of Cape Town, University of Stellenbosch,and the University of the Witwatersrand all bagging fifth place.

“These are the future of SA right here,” Christelis said in his keynote speech to the delegates.

Last year the SIFE team from the University of KwaZulu-Natal represented SA for the third consecutive year at the ninth annual SIFE World Cup event in Berlin, Germany, where they competed against teams from the other 40 participating countries.

This time the appearance of patronage can be traced to the top. Some individuals, including the president’s son, Duduzane Zuma, could be greatly enriched by gaining ownership of mineral rights in a questionable process. Unease about the process has become more widespread.

The National Union of Metal Workers (Numsa) has commented scathingly on what it calls “the ArcelorMittal and Imperial Crown Trading looting scheme”. Minerals & resources minister Susan Shabangu’s decision last week to place a moratorium on new awards of mineral rights demonstrates that even government has concerns.

These events raise important questions: how are BEE policies working, what are the achievements and weaknesses — and are the effects in line with government’s intentions?

In more than 16 years, BEE has achieved many successes and some failures. It started in the early 1990s with companies such as Thebe Investments, launched by senior ANC officials, and Nthato Motlana’s Corporate Africa, which gained control of New Africa Investments (Nail).

Thebe remains a successful enterprise, and there are other enduring black-controlled businesses. Some have grown through strong share price gains, buoyant markets and productive investment.

Among these are Patrice Motsepe’s African Rainbow Minerals, with a R34bn market cap, and MTN (R225bn market cap) which is run by CE Phuthuma Nhleko. One of the most successful is the unlisted Royal Bafokeng Holdings, a community-based investment company . It started with royalties from Impala platinum mining . Under chairman Kgosi Leruo Molotlegi and CE Niall Carroll, a former investment banker, it has diversified into mining, financial and industrial investments.

At its financial year-end last December, it had a R30bn investment portfolio and minimal debt.

Throughout these years, there has been debate about how BEE can best be achieved, and it has worked — but also created risks and unease on many fronts. In an institutional or legal sense, rules of the game were set through the Broad- based Empowerment Act of 2003 and the publication of industry codes and charters over the next few years. These changed the way companies and other stakeholders think about the process.

However, ownership of equity in companies and access to other assets such as mineral rights still play a big role in the process. This is where some old themes and questions are constantly at play. Since the charters and new regulations came into effect , most big companies have done deals over the past few years.

The Sishen/ArcelorMittal case has attracted special attention, partly because valuable mineral rights are involved and there are individuals who have direct links to senior politicians.

This is an extract of a larger story from the Financial Mail. For the full story, click here.