Practical lessons from South African entrepreneurs
South Africa needs more entrepreneurs. The valuable contribution small businesses make to the economy and in addressing challenges such as unemployment and inequality has been well documented. An investment into nurturing young entrepreneurs is an investment into a better socio-economic environment for all South Africans.
This is the opinion of Heather Parker, consultant at LevelUp, a collaboration between retail consumer finance provider RCS and the TSIBA Ignition Academy. Launched in 2018, LevelUp is a business development and innovation acceleration programme. Each year, LevelUp onboards a cohort of small business owners to a tailored programme aimed at enabling, facilitating and inspiring the participating entrepreneurs in growing their ventures.
The programme introduces the entrepreneurs to RCS’ broader partner network, providing opportunities to strengthen their ties to the wider business community and build relationships with other like-minded innovators. Participants also receive mentorship from subject-matter experts who help each enterprise navigate whichever business area may be proving difficult for them.
Parker adds that for many self-starters the drive to own and run a successful business is more of a need than a want – many ambitious individuals would be keen for employment in the formal sector. However, given that youth unemployment remains staggeringly high, there is great survival value in equipping young people with the skills and tools they need to succeed in the business environment.
Recent years have seen several of the businesses within LevelUp community make significant strides forward, not only in achieving commercial milestones but also in creating social impact. One example is GreatFuel, now the leading biofuel producer in Limpopo and a small business on a mission to promote sustainable energy production and to reduce waste and carbon emissions.
Passion is the driving force. Resilience is the fuel
Founder and CEO of GreatFuel Hope Mapheto (LevelUp class of 2022) has used the LevelUp opportunities well. However, her warning to others starting off on the entrepreneurial journey is that it takes real grit and hard work. “Although owning your own business offers a larger degree of flexibility compared to being an employee, getting that venture off the ground requires double the amount of effort, resources and time, especially in its first few years. Becoming an entrepreneur is incredibly rewarding, but it is also very challenging. To persevere in the face of obstacles and setbacks takes resilience – this, above all, is an entrepreneur’s greatest asset,” she says.
Phiwa Nkambule (also from Level Up class of 2022), co-founder and CEO of Ipoxcap, shares a similar sentiment: “Starting a business is a marathon, not a sprint,” he says. “There will be times when you want to give up – but if you keep going, you will eventually succeed.”
Start with the problem
For endurance, Nkambule adds, it is important to do the research to understand the market and the competition, and to be passionate about the problem you’re setting out to solve. “When you’re passionate about your business, it will be easier to stay motivated when things get tough.”
LevelUp mentors Dennis Mhangami and Zolani Matebese both emphasise the principle that successful ventures begin with good problems. “It’s important to look for relevant societal problems to solve rather than creating a solution in search of a problem,” says Mhangami, founder and lead consultant at The Startup Coach.
Matebese, founder and CEO of Sendoff, has some idea of how this may work. “Look for popular trends, books, businesses or social pages that relate to your skills and activities,” he says. “Then see what problems people are having: look for Reddit reviews, visit HelloPeter and other complaint websites. Find a trend, then find a way to solve that problem. Do this for five or six of your skills and favourite activities – this is the list of potential businesses you may start.”
There’s power in team
Get help, says Reshieda Panday (Level Up class of 2023) and founder of Seconds 4 Good. “The entrepreneurial community is filled with individuals who share your values and are willing to offer guidance or even collaborate with you.” This is something most LevelUp businesses stress.
“Build a strong team,” Panday says. “No one can build a successful business alone. Surround yourself with talented people who share your vision.”
Mapheto confirms she has discovered along her own journey that hiring a capable team is imperative. As she explains: “As business owners, we spend so much time nurturing our businesses and formulating our ideas into viable strategies, and it’s because of this that we often think we are the best people for the job – whatever that job may involve. But not hiring the right people can be a startup’s downfall. At some point, we need to let go of our attachment to our ideas and allow our team to do what they have been hired to do.”
Don’t be afraid to fail, but look after yourself
Don’t be afraid to fail. “Starting a business is risky, but it’s also an incredibly rewarding experience,” says Nkambule. “If you’re willing to put in the hard work and learn from your mistakes, you can be successful.”
The process of learning and growth is inherently tough. “Nevertheless, success depends on this process. Embrace every opportunity to learn, both from your successes and your failures. Through it all, practise self-care. Prioritise your physical and mental well-being, as it’s crucial for your success in both work and business,” Panday concludes.
