Recent research has revealed that there is a decline in locally owned youth businesses, causing concern for South Africa’s unemployment figures.
More impactful business development support that provides entrepreneurs with robust business basics is needed to increase small business success rates, while a decline in youth owned businesses has emerged as cause for concern given South Africa’s dire unemployment figures.
These are just some of the findings of South Africa’s largest entrepreneurial survey, the Real State of Entrepreneurship in South Africa 2017, announced by Donna Rachelson, Seed Engine CEO, incorporating Seed Academy and the WDB Seed Fund. Conducted by Seed Academy and now in its third consecutive year, the survey is the biggest and most widely referenced of its kind. This year’s survey, which canvassed over 1,200 entrepreneurs, expanded its scope from start-ups to all entrepreneurs at any stage of business development to gain valuable insight on the true state of entrepreneurship in South Africa. “Encouragingly, we are seeing the gap between the number of male and female entrepreneurs start to narrow as women represented 47% of entrepreneurs surveyed. This gives some indication that efforts focused on the development of women owned businesses are beginning to pay off. Similar initiatives are now urgently needed to develop youth entrepreneurs so that entrepreneurship is viewed as a ‘real’ career option,” notes Rachelson.
Expanding on the success of previous years, the 2017 survey sharpened its focus on the challenges faced by entrepreneurs in key areas such as access to funding, business support and skills development. Although some 65% of survey respondents were in possession of a post-matric qualification and a sizeable majority at 85% had at least one year’s work experience before starting a business, many entrepreneurs indicated that they require education specific to the practicalities of running a business such as marketing support and business planning. Rachelson says that while Centres for Entrepreneurship at TVET colleges are making strides in entrepreneurial education, both the public and private sectors need to look at what more can be done and how this kind of education could be incorporated into both basic and tertiary curricula.
Interestingly, 33% of entrepreneurs that have been in business for more than two and half years attribute the primary reason for their success to cultivating strong personal networks. This finding bears some correlation to the fact that 95% of businesses are funded by a combination of owner’s funds and funds from owner’s friends and family. “What we can interpret from this is that entrepreneurs place a high value on cultivating strong trust-based relationships that can help the business owner with access to markets and other opportunities including access to financing, both of which were stated as the most pressing challenges by 67% and 43% of entrepreneurs respectively.”
Rachelson adds that only 18% of entrepreneurs surveyed have attempted to secure funding from banks or development funding institutions like the IDC or DTI. “Some entrepreneurs indicated that they simply don’t know where to go for funding especially in light of the fact that most early-stage business funding requirements are below the R100k threshold. There is certainly a case to be made for funding providers to revise certain requirements to better accommodate the unique needs of small and early-stage businesses. Of course, one unfortunate implication of self-funding is that growth potential is limited to the owner’s own pocket and diminishes the ability for a small business to increase capacity, hire more staff, and make a more meaningful impact on the South African economy.”
This year’s survey has also revealed that the top sectors represented by respondents are Information Technology (IT), Business Services, Construction, and Advertising, Marketing & PR. These are however weakly aligned to the South African government’s priority sectors of Manufacturing, Construction, Utilities, and Telecoms, indicating that more aggressive efforts are needed to incentivise businesses development in these key priority sectors.
According to Rachelson one important aim of the survey is to positively influence the entrepreneurial ecosystem in South Africa by providing the basis for robust engagement for policy makers and providers of financial and non-financial support to business in South Africa. In addition, the research functions as a useful touchpoint to help educate individuals thinking about starting a business, and those already running businesses, about the current challenges and opportunities facing entrepreneurs in South Africa.
“With each survey, we learn something new that challenges us and the broader entrepreneurial ecosystem in South Africa. Armed with concrete new insights we are better equipped to make significant changes to the way we support entrepreneurs,” says Rachelson.
YouTube Music announces Smart Downloads, SA playlists
The service has introduced Smart Downloads which takes allowing users to store and play hundreds of tunes offline, automatically.
The latest updates from YouTube Music, for subscribers of its Music Premium and Premium services, include a new feature that allows users to switch seamlessly between a song and its music video for an uninterrupted experience.
It has also introduced Smart Downloads which takes the work out of downloading music, allowing users to store and play hundreds of tunes offline, automatically. YouTube Music has also announced new playlists for South Africa.
The updates all reflect features that are popular on the global leader in music streaming, Spotify, and that have been key to its growth.
YouTube said in a statement on Friday: “Imagine listening to a new track by your favourite artist in the YouTube Music app and having the ability to seamlessly switch over to watch the music video – no pauses, no interruptions, just a simple tap that keeps the music flowing. This standout new feature from YouTube Music allows YouTube Premium and YouTube Music Premium subscribers to make a seamless transition between a song and its music video for uninterrupted listening and/or watching. Whether you’re in the mood for listening or watching (or a little of both)… it’s all here – no app switching required.”
With Smart Downloads, YouTube Music automatically saves music at night, when connected to Wi-Fi, helping subscribers to use less mobile data, enjoy a smoother updating experience and save up to 500 songs offline using Liked Songs playlist as well as other playlists and albums.
Previously, music lovers could use the Offline Mixtape feature to download up to 100 songs, specifically chosen for them based on what they listened to most on the platform. Now, with Smart Downloads, they select the number of songs they would like automatically downloaded by toggling their YouTube Music Settings. This means YouTube Music Premium subscribers with Smart Downloads enabled on their mobile devices can now access hundreds of tracks regardless of connectivity.
This feature is currently available on Android, with plans to bring it to iOS in the future.
Click here to read more about YouTube Music playlists, and find out what is inside them.
Make cars, not waste
Jaguar Land Rover is trialling an innovative recycling process which converts plastic waste into a new premium grade material that could feature on future vehicles.
It’s estimated that the amount of waste plastic is predicted to exceed 12 million tonnes globally by 2050*. Today, not all of this plastic can be recycled for use in automotive applications – especially in vehicle parts that are required to meet the most exacting safety and quality standards.
Working in conjunction with chemical company, BASF, Jaguar Land Rover is part of a pilot project called ChemCycling that upcycles domestic waste plastic, otherwise destined for landfill or incinerators, into a new high-quality material.
The waste plastic is transformed to pyrolysis oil using a thermochemical process. This secondary raw material is then fed into BASF’s production chain as a replacement for fossil resources; ultimately producing a new premium grade that replicates the high quality and performance of ‘virgin’ plastics. Importantly, it can be tempered and coloured making it the ideal sustainable solution for designing the next-generation dashboards and exterior-surfaces in Jaguar and Land Rover models.
Jaguar Land Rover and BASF are currently testing the pilot phase material in a Jaguar I-PACE prototype front-end carrier overmoulding to verify it meets the same stringent safety requirements of the existing original part.
Pending the outcome of the trials and progression in taking chemical recycling to market readiness, adoption of the new premium material would mean Jaguar Land Rover could use domestically derived recycled plastic content throughout its cars without any compromise to quality or safety performance**.
Chris Brown, Senior Sustainability Manager at Jaguar Land Rover, said: “Plastics are vital to car manufacturing and have proven benefits during their use phase, however, plastic waste remains a major global challenge. Solving this issue requires innovation and joined-up thinking between regulators, manufacturers and suppliers.
“At Jaguar Land Rover, we are proactively increasing recycled content in our products, removing single-use plastics across our operations and reducing excess waste across the product lifecycle. The collaboration with BASF is just one way in which we are advancing our commitment to operating in a circular economy.”
This is the latest example of Jaguar Land Rover’s commitment to addressing the challenge of waste plastic. The company has collaborated with Kvadrat to offer customers alternative seat options that are both luxurious and sustainable. The high-quality material, available initially on the Range Rover Velar and Range Rover Evoque, combines a durable wool blend with a technical suedecloth that is made from 53 recycled plastic bottles per vehicle.
Jaguar Land Rover has already met its 2020 target for Zero Waste to Landfill for UK operations. This includes the removal of 1.3 million m2 – equal to 187 football pitches – of plastic from its manufacturing lineside and replacing 14 million single use plastic items in business operations.
Together, these efforts are driving towards Jaguar Land Rover’s vision for Destination Zero; an ambition to make societies safer and healthier, and the environment cleaner. Delivered through relentless innovation to adapt its products and services to the rapidly-changing world, the company’s focus is on achieving a future of zero emissions, zero accidents and zero congestion.
** All Jaguar and Land Rover vehicles tested have achieved a Euro NCAP 5* rating.