The SMME Sustainability Summit is aimed at promoting a culture of enterprise development as well as to share best practice among emerging entrepreneurs on how to guard against the pitfalls that lead to business failure.
With high levels of unemployment, particularly among young people, South Africa has adopted a drive to promote enterprise development as a means to encourage self-start initiatives, to contribute to economic growth and create opportunities for employment and livehoods.
Of concern is that according to Research, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months. South African entrepreneurs are also not insulated from this reality. This then prompted a need to undertake this initiative in the form of a Summit with various elements.
South Africa’s SMEs are estimated to account for over 60% of employment, according to an Abor and Quartely report, compared to a global average of 77%.
What’s more, they have an exceptionally high failure rate – in May 2014, Monister of Trade and Industry Rob Davies noted that as many as 70% of the country’s SMEs fail in their first year – giving us one of the highest failure rates in the world.
According to the Global Entrepreneur Monitor (GEM) report, only 10.6% of South Africa’s adult population is involved in early stage entrepreneurship and another 2.9 % have been operating for more than three and a half years. The latter figure puts South Africa in fourth last place across the entire GEM study.
According to Bloomberg, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months. A whooping 80% crach and burn. Reason 1: Not in touch with customers through dialogue Reason 2: No real differentiation in the market – lack of unique value proposition Reason 3: Once value proposition is there: failure to communicate value proposition in a clear, consice and compelling way Reason 4: Leadership breakdown at the top – founder dysfunction Reason 5: Inability to nail a profitable business model with proven revenue streams Reason 6: Poor marketing Reason 7: Poor financial understanding and management
• Create a platform for emerging entrepreneurs to have a dialogue among themselves as well as established entrepreneurs/business pioneers • To create a platform to learn best practice in running successful enterprise • Provision of information on available funding options and requirements for funding • Presentations on topics covering: sourcing access to markets; sourcing funding; budgeting; marketing; identifying value proposition • Providing a network opportunity between entrepreneurs and opportunity providing institutions as well as potential product buyers • Share information on available opportunities for growth of enterprises • Provide a platform for entrepreneurs to exhibit their products offerings
1. Innovation 2. Budget and cashflow management 3. Effective sales pitching 4. Effective marketing and brand positioning
• Early stage entrepreneurs • Growth potential entrepreneurs nding options and requirements for funding • Growth potential entrepreneurs nding options and requirements for funding • Accomplished entrepreneurs • Government departments/Agencies • Private Sector Companies • Incubators • Venture Capital Firms/Angel Investors • Media Houses
Establishing a niche within increasingly saturated markets Value chain creation – and access to markets Innovation and its implications for businesses in the future Budgeting and cash-flow management Brand positioning – Your company as a brand Available funding options for SMMEs both from government and the private sector
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