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Cape shack fire solution heads for Bangladesh

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South African social enterprise, Lumkani, has developed a fire detector to help prevent the occurrences of shack fires. Since winning the Chivas Regal social entrepreneurship competition, Lumkani has made great strides as it takes the solution abroad.

Bangladesh is one of the countries with a large number of people living in fire-prone slums.

Lumkani seeks to address the challenge of shack fires and to minimise the displacement of families in South Africa’s urban informal settlements. As one of the top five global finalists in The Venture, Lumkani walked away with $75 000 to use for business development.

In partnership with humanitarian organisation World Vision, Lumkani continues to work towards social change, and is finalist in the Google Impact Challenge in Australia, where the winner will receive a $575 000 grant. Winning the grant may mark the beginning the company’s foray into global markets.

Co-founder and Director David Gluckman says winning The Venture competition helped Lumkani improve its technology and research other products it can tie to the device. The company has thus far installed more than 8 500 devices in big and fire-prone informal settlements like Masiphumelele in Cape Town and Imizamo Yethu in Hout Bay.

The Venture has absolutely helped us and continues to; we have been able to scale up on research and development and we’ve launched a new version of the product, which is easy to manufacture, better design and we’ve been able to put in lots of new software,” says Gluckman. “It’s also allowed us to scale up our marketing and sales, get the right resources and extend our product range offering.”

In future, Lumkani plans to develop a device that will look to include the capability to alert communities of other risks such as storms, tsunamis and floods.

Shelley Reeves, Marketing Manager: Scotch Whisky at Chivas Regal, says it is heartening to see Lumkani getting international recognition for its innovation: “This is a truly innovative venture that has a big impact on social wellbeing, and Chivas Regal is proud to be the enabler who helped Lumkani get the recognition they deserved through The Venture.

“Its continued success has shown that entrepreneurship can be an effective tool to socio-economic problem solving. We encourage many other creative thinkers to come forward with their ideas as part of The Venture so that each year we can build on the network of social entrepreneurs working together to combat social issues,” says Mrs Reeves.

The third year of The Venture competition was launched and both established and aspiring entrepreneurs can submit their business plans on www.Theventure.com to stand a chance of winning a portion of USD 1 million; represent South Africa on a global stage and win  R350 000.  Competition entries close on 05 November 2016.

Sharing his winning formula, Gluckman says disruptive ideas are those that solve people’s real problems.

“Be honest with your product. I always tell entrepreneurs to develop products or services that are needed; products that solve real challenges faced by people.”

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Half of SA mobile phone users avoid data activity

Research shows 87% of South Africans have cellphones, but 50% have data issues and a quarter struggle to find a place to charge them

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A Pew Research Center survey of 11 nations has found South Africans second most likely to avoid doing things on their cellphones because of fears of data charges. The 50% of users who report this fear is second only to Lebanon, where 66% avoid data use.

As ownership of mobile phones, especially smartphones, spreads rapidly across the globe, there are still notable numbers of people in emerging economies who do not own – or even use someone else’s – mobile phone, a Pew Research Center survey of 11 nations finds. However, in this department South Africa scores well, with only 13% not having phones – in line with a median of 6% of adults in the countries polled do not use mobile phones at all, and a median of 7% do not own phones but instead borrow them from others. 

These mobile divides between have and have-nots are most pronounced in Venezuela, where about a third of adults (32%) do not own or use mobile phones, India (30%) and the Philippines (27%).

At the same time, the new findings show that mobile divides also exist among those who own phones. A median of 46% in these countries say they frequently or occasionally have difficulties getting reliable phone connections, 37% say it can be a challenge to pay for their phones and 33% report finding places to charge their phones is a problem at least occasionally. In addition, a median of 42% report frequently or occasionally avoiding some activities on their phones because they use too much data. 

In some countries, mobile owners’ challenges are particularly striking. In Lebanon, for example, 77% of phone owners report having problems getting reliable mobile connections, and about two-thirds (66%) say they avoid doing things with their phones because those activities use too much data. In Jordan, nearly half (48%) report having trouble paying for their phone, while in Tunisia four-in-ten (40%) say it can be a challenge to find places to recharge their phones. 

“The spread of mobile phones brings a variety of benefits to users in emerging economies, and they can clearly spell out what appeals to them about the arrival of a phone in their lives,” says Laura Silver, senior researcher at Pew Research Center. “Still, our survey shows that these devices bring new challenges and headaches to users at the same time they open up new divisions in their societies. It turns out that digital divides take several forms in these countries.” 

Beyond those concerns, there are other issues that can disrupt life for some phone users and sharers. Around three-quarters or more of mobile phone owners in every country except India report concerns about identity theft, and around nine-in-ten or more in Mexico (95%), Colombia (94%), Tunisia (90%), South Africa (89%) and the Philippines (89%) say they are at least somewhat concerned about the issue. 

For mobile sharers, concerns about device security can also play a role in why people choose not to own their own devices. While cost is the primary reason mobile phone sharers give for why they do not personally have a phone (a median of 34% across eight countries reports this), the second most commonly cited reason is that a previous mobile phone was lost, broken or stolen. 

Additionally, a median of 29% of mobile owners in these 11 emerging economies report they have frequently or occasionally experienced problems finding information online in their preferred language. This problem ranges from 17% of mobile owners in Jordan to 37% in South Africa – the highest of all countries surveyed.

Other key findings from the survey include: 

Nonuse tends to be more common among adults with lower levels of income and education. In the Philippines, for instance, 10% of respondents with more education say they do not use a phone, compared with 38% of those with lower levels of education. This pattern exists in all 11 countries surveyed. Similarly, across most of the nations, older people are more likely than younger people to be non-users. 

Non-users are divided over whether they would like to own a mobile phone in the future. Venezuelan non-users stand out for their keen interest in acquiring a mobile phone; 86% of mobile phone non-users in Venezuela say they would like to get a phone in the future. Elsewhere, these numbers vary markedly, from around half or more desiring a mobile phone in South Africa (65%), Colombia (61%) and Tunisia (52%), to fewer than half in Mexico (41%), the Philippines (35%), India (31%) and Lebanon (9%). 

In some countries, issues of technological literacy are particularly pronounced. For example, around a quarter of Indians (26%) say the primary reason they share a phone is because it is too complicated to use, followed by Mexicans (11%) and Filipinos (10%). 

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MUST you buy into Black Friday? The pros and cons

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Black Friday, once only a North American marketing frenzy, has become a critical entry in the calendars of South African retail business owners.

Research published by Stats SA says that historically, the most important month of the year for retail trade is December, when many consumers are on holiday and go Christmas shopping. But December 2018 was a tough month for retail in South Africa with the volume of sales falling by 1,4% year-on-year.

The poor performance of retailers in December followed a fruitful November, when Black Friday boosted sales to 2,9% year-on-year.

Dov Girnun, CEO of Merchant Capital, an innovative fintech funder that provides working capital to retail SME’s across the country, says Black Friday presents a moment in time in the sales cycle, and business owners still need to consider whether the concept will make sense for their business’s growth.

“Small business growth is a delicate balance between doing what works and taking advantage of the right opportunities. Retail business owners should carefully weigh up the pros and cons before being swept away by the Black Friday wave,” says Girnun.

Girnun outlines the following pro’s and con’s that retailers should consider before jumping on the Black Friday bandwagon.

Shopper enthusiasm

Pro: Savvy customers look forward to a good bargain. They actually plan their year-end spending around this one retail event. They believe that they will enjoy savings and great deals which will often prompt larger spending and additional ‘treats’ for themselves.

Con: There was a time when festive season shopping mainly occurred in December. Black Friday has changed this. What was normally a very good festive season trade, can now mean rapidly reduced December turnover. Retailers need to work this new spending habit into their projections and stock flow.

Significant noise

Pro: If you can deliver agile marketing messaging and have a tactical social and email marketing campaign behind you, you may well be able to fight the clutter and up your sales in a meaningful way. 

Girnun says: “In our experience, small businesses use the funds we lend them for anything that will be additive to the growth of their business: to hire more employees; buy new equipment; refurbish their store; buy more stock – and even for marketing – they don’t necessarily have to be elaborate plans, but each funding step is crucial to the next.” 

Con: As a small business you are up against the big guys: large retailers with huge marketing campaigns behind them. Certain larger retailers will even offer loss-leaders to draw in customers.

Shed old stock for small business growth

Pro: Small business growth is often the difference between sitting with old stock or shedding your load. Black Friday is a great way to encourage take-up of old redundant inventory. Making way for the new.

Con: On this day, over any other, customers are price-sensitive. They expect a good deal otherwise will gladly shop elsewhere. Heavy discounts might be the only way to win that sale over your competitor. But this is often a discount that isn’t worth the sale.

Scaling up for traffic

Pro: Black Friday is a marketing vehicle to assist in scaling up your customer traffic. It is a unique opportunity to attract new customers and satisfy existing ones. Just make sure that your store has the capability to restock quickly and check customers out efficiently.

Con: Sub-par in-store or online service can have a negative knock-on effect on your brand. So make sure you employ more staff and security on the day and upgrade your online systems so that they can carry an abnormal load should it arise.

Realising retailers’ eleventh-hour cash needs and taking the rapid evolution of technology into account, funders like Merchant Capital have the capability of assessing and approving a loan in just 24 – 48 hours, offering retailers an opportunity to scale up if need be at lower risk.

What are your competitors doing?

Pro: If your competitors are in the space, this may mean it’s good for your vertical. Simply being there may be a good way to claim your stake in some way.

Con: If you aren’t in the game, you can almost guarantee it will be a bad sales day. But FOMO alone (Fear Of Missing Out), is a dangerous hill to climb. So think clearly and make decisions that are right for your business!

Girnun says: “The jury is out as to whether Black Friday makes sense for all small businesses. But what is very clear is that retailers need to think long and hard about capacity, strategy, bottom-line, and long-term impact before committing to partake in Black Friday.”

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