Page 14 - KZN BUSINESS SENSE Vol3 No3

YOUTH MAKING INROADS TO A BRIGHTER FUTURE

elping small businesses To date Ithala has disbursed centres and industrial estates in operates from the Cato Manor His company, Ngcobo Business
to thrive at a time R878 600 000 to nearly 700 rural areas, Ithala supports the SMME business centre. Group, has been registered
Hwhen South Africa’s businesses, resulting in over 8000 KZN Provincial Growth Strategy and ongoing engagements
unemployment rate is at a 14- jobs being created. Plan to revitalise the industrial Potato sack farmer, with potential buyers are in
year high, will be key to reducing economic hub of Amajuba. Busi Mntungwa, has place. Ngcobo will be attending
the high rate of unemployment Of these, 28% are women-owned established her business on an innovation boot camp in
and putting an end to businesses and young people Several winners from the 2015 a farm in Ashburton, near Canada courtesy of TIA after
generational poverty. comprise nearly 40% of Ithala’s and 2016 Inkunz’isematholeni Pietermaritzburg after signing which he will join a mentorship
loan book. Youth in Business programme a lease agreement with Ithala. programme to implement the
This is the belief of Ithala spearheaded by Ithala are now Busi is currently being mentored learnings gained from his trip.
Development Finance The Amajuba Fashion Cluster thriving in their respective by InvoTech with support
Corporation whose mandate (AFC), a non-profit company, was industries of operation. from non-profit organisation, Inventor of the “Tyke Bike”,
is to deliver development and conceptualised and established Nkululeko Khumalo, has had
empowerment solutions and by Siboniso Mazibuko, a local The programme encourages Enactus, to ensure solid returns engagements with eThekwini
encourage participation in all youth in the Amajuba District young people to come up with on the project. Municipality to assist him with
sectors of the economy through Municipality, in response to the innovative and unique business Martin Ngcobo who created research for implementing
employment creation, skills growing unemployment rate concepts and enter these into a the “Instant lite firewood” his business idea in Durban.
transfer and training. amongst women and youth in the competition with the top two Khumalo will also be attending
district. At least 300 businesses in winners taking more than R450 received working capital the innovation boot camp in
The quarterly labour force the dominant textile and clothing 000 worth of business support for 12 months from Ithala Canada and benefiting from the
survey released by Statistics industries in the municipality for innovative business ideas in towards business costs such as
South Africa revealed that the have afforded 30 000 workers a various sectors. product testing at the South TIA mentorship programme. 
unemployment rate is 27.7%. livelihood. African Bureau of Standards,
About 58% are young people As the strategic partners in transportation and other For more information on Ithala visit www.
aged between 15 and 34 years To support the initiative, Ithala Inkunz’isematholeni, InvoTech variable business expenses. ithala.co.za or call 031 907 8911.
old. In total, although more provided 1 500 square metres of and Technology Innovation
than 140 000 people had been land at its Madadeni Industrial Agency (TIA) have a seed fund
employed, the number of job Estate near Newcastle to enable programme in place that assists
seekers had increased by more the fashion cluster to extend the qualifying KwaZulu-Natal-based
than 430 000. Amajuba Textile and Clothing clients to develop proof of concepts
Training Centre (ATCTC)
“Such a dire situation requires facilities. and prototypes for their innovative
collective intervention from the technology-based ideas.
public and private sectors to The Centre was established with Inventors of the Iziko Stove -
stimulate the economy and create the purpose of closing the skills Luthando Msomi, Lindokuhle
jobs,” said Themba Mathe, Ithala development gap and to stimulate Duma and Simthembile Sibhayi
Acting Group Chief Executive. employability among the youth
in the area. The programme - have seen their business concept
“With Youth Month upon us, is supported by the Provincial elevate to the next level, thanks to
this should serve as a constant Department of Economic Ithala. New welding equipment
reminder of the plight of youth Development, Tourism and has been purchased to boost
and the moral obligation we Environment Affairs (EDTEA). production; the brand identity for
have as ordinary citizens and the business has been developed
corporates to help elevate As the pioneer of the and the business is now fully Iziko Stove inventors, Luthando Msomi, Lindokuhle Duma (pictured) and
marginalised communities.” development of commercial registered as “Iziko Stoves” which Simthembile Sibhayi, have seen their business concept elevate to the next level

IDENTIFYING, ANALYSING AND ASSESSMENT OF RISK

Helper Zhou puzzle. Since the operational should be clearly stated and their judgement analysis. All negative GM was trapped in the grip of
and positive variables which
and external environments are
T he defined, now it will be important as well. The major output to this animate each identified risk a seemingly “low probability”
possible limitations highlighted
probable failure as a result of
phase is the famous risk register.
including risk relationships should event, which led to the recall of
for the company to determine all
risk register should not be treated
he said, “There is a tendency to
development sorts of adverse factors emanating It should be emphasised that the be included in calculating the 3.1 million vehicles. In his words
from these environments. At this
probability of occurrence known
of a risk stage risk sources are classified, as a static document, but as the as likelihood. As Analysis and underestimate the risk…It is
management these mainly include physical, entire process of risk management Assessment are almost seamless relatively easy to say, ‘Well, it’s a
plan includes a social, political, operational, is repetitive the document should phases, the latter phase will low probability risk, let’s go on.’
number of steps. legal, economic and cognitive be continuously updated as well than play an important role in It may be a very low probability
The first step environments. The phase can be so as to reflect the correct picture grouping risks into categories as event, but those low probability
is establishing tackled in the form of simple but of what the company is potentially well as ranking them based on the events have a way of materialising,
the context probing questions: What might up against in its operational overall score (quantitative impact). and we’ve got to understand what
of a business happen? How? When? Why? environments. This phase precedes This allows for the mathematical happens if we do it”.
operations, Brainstorming sessions can be the Risk Analysis stage, which definition of consequences of each
Beyond the assessment phase,
which was discussed in the key in conducting this process; largely utilises the risk list or an risk category to the vulnerable there comes yet another set
April edition of KZN Business members fully answer these key all-encompassing risk register. elements of the business.
Sense. The next three steps interrelated questions, which in of important phases, that of
Business continuity risks can
Risk Analysis is the process of
are identifying, analysing and turn necessitate identification of defining and ascertaining the be easily identified at assessment treatment and monitoring
and communication, which
assessment of risk. risk events and their relationships. probability of identified risks. stage as the coefficient of each risk will be fully looked in the next
At this stage it is important to
Again note that no step is more capture all possible risks as they This stage is closely linked to that category is established. However, instalment. 
important than the other and come to mind and populate the of Risk Assessment as these two there is need to avoid the danger
there is no short cut whatsoever stages involve determination and of neglecting low probability risks T: 031 201 0788
to achieving a fully-fledged, master risk list so as to aid the establishment of the impact of all as these can turn out to haunt the M: 073 176 5014
development of an accurate and
enterprise wide risk management comprehensive Risk Breakdown risks in the risk register and as will company in the medium to long helper@sigmaintl.co.za
plan. Structure (RBS). be depicted by the RBS. term, like what happened with www.sigmaintl.co.za
Risk Identification follows after All assumptions made under- The probability of all identified General Motors (GM).
establishing the context, this stage risks are established, this can The GM chief economist warned
is as important as the former pinning business operations or be done through historical data about this in light of his company’s
the envisaged business activities
just like one piece is to a jigsaw analysis, risk scoring or expert huge loss of US$300 million when

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