Page 23 - IDC

8 CITY PRESS, 26 JUNE, 2016
A
PROJECT IN
PARTNERSHIP
WITH THE
IDC
Hard work, help from
the Awethu Project
and a loan from the
Youth Fund helped
Thulani Ntshuntshe
grow his start-up into
a successful and
profitable company
BORN FOR IT Entrepreneur Thulani Ntshuntshe no longer dreams of a house in Sandton; he wants to ‘live for something that is bigger than myself’
R89m
CHRISTINA KENNEDY
business@citypress.co.za
hen Thulani Ntshuntshe was 13, he
would charge the girls 50c each and IDC APPROVALS FOR
run to the school tuck shop to buy YOUTH-OWNED
food for them so they could avoid
the queues. Then he would buy his BUSINESSES
Wown lunch from the proceeds. IN 2013/14
The following year, this enterprising youngster upped
his game and became a “loan shark” of sorts: he would
go to his school in Johannesburg’s northeastern suburbs
with a bag full of coins, and for every R1 he lent his
school friends to buy sweets, he demanded they repay
him R2.
“It was built on zero knowledge of interest rates – on
both sides,” the 26-year-old entrepreneur chuckles today,
more than 10 years later.
“But I managed to make more money from that than
from my pocket money. I think that is where the
entrepreneurship bug bit.”
Today, Ntshuntshe is CEO and co-founder of Five Star
Fire, which supplies and maintains portable firefighting
equipment for businesses in the greater Johannesburg
area. The firm inspects and tests fire extinguishers, hose
reels and hydrants to ensure they comply with safety
regulations.
Operating from offices in the historic Constitution Hill
precinct in Braamfontein, Five Star Fire’s clients range
from owners of private residences to large corporates
such as Nestlé.
This start-up was born thanks to the mentorship of the
Awethu Project, a business incubator, as well as a
R1.3 million loan from the Youth Fund – which was
jointly set up by the Small Enterprise Finance Agency
(Sefa), the Industrial Development Corporation and the
National Youth Development Agency to ignite a new
generation of business go-getters.
But it has not always been plain sailing for Ntshuntshe,
though he maintains he is grateful for the pitfalls he has
encountered along the way.
Born in Tembisa on the East Rand, he completed high
school in Highlands North and enrolled to study human
resources at the Tshwane University of Technology. But
he dropped out in his first year, realising he was not cut
out for it.
“I met someone from high school and we decided to
do something entrepreneurial together. We ran a
construction company for four years,” he recalls.
“We kept throwing money into it and it never took off,
but the lessons we learnt were invaluable.”
Somewhat disillusioned but not bowed, his interest was
piqued when Awethu invited him to attend a presentation
– and even offered to reimburse his taxi fare.
Awethu eventually helped him set up a mobile
Using his passion to prepare his nest egg
LIESL PRETORIUS
business@citypress.co.za
Eric Thoka’s tiny home village is more than 300km from
Johannesburg, where he works in television.
But rural Ga-Mphahlele in Limpopo is never far from
the 25-year-old’s thoughts. He dreams of starting a
chicken farm, which would create employment in an area
where youth unemployment is rife and “internet access is
a luxury”.
We sit and chat on a bright red couch at Endemol
Shine Africa in Joburg, where Eric is an intern at the
production company’s academy.
Portraits of famous faces on local television, such as
Isidingo actor Darlington Michaels (who plays Georgie
Zamdela) and Ed Jordan (remember the show Deal or No
Deal?) adorn the walls.
“TV seems glamorous from the outside, but I have a
bigger goal,” Eric says, referring to his farming plans.
He remembers a chicken farm that was once a lifeline to
many in his community. “It just shut down,” he says.
In an attempt to create opportunities for young
people back home – beyond digging toilets or
becoming drivers – he has started the company
BaswaTemong (Young People in Farming) along
with Phologo Mphalele, a friend from Limpopo,
and Kefiloe Bopape.
Kefiloe is the entrepreneur behind the Life After
Matric project, which aims to prepare young people
“for a better, purpose-filled and passionate future”.
It is a good business match, Eric says, because they are
both interested in community development.
How did Eric go from TV to chickens?
He chose the entertainment business in Grade 10. The
reaction from Eric’s mum, a domestic worker at the time,
and his unemployed father was: “Your sister is going
to be a scientist and you want to be a clown?”
Far from being discouraged, Eric set out to
PHOTO: EUGENE GODDARD
R142.5m R969.7m
OPINION
Youth vital
IDC APPROVALS FOR IDC APPROVALS FOR
YOUTH-OWNED YOUTH-OWNED
for growth
BUSINESSES BUSINESSES
IN 2014/15 IN 2015/16
We face an economic crisis that is difficult to ignore. While
this crisis is one of faltering growth amid a slowing global
economy, the more pressing issue is youth employment.
He’s all Imagine, for a moment, being one of the 5.6 million
young people who find themselves unemployed. What can
be done to address this situation?
Yes, we need to get the economy growing at a faster
rate so new jobs can be created. And government has
introduced the youth wage subsidy to encourage
employers to create jobs for the youth.
But what is desperately needed is a concerted,
sustained effort to create an environment that produces
fired up for jobs and allows young people to acquire skills and branch
out on their own through entrepreneurship.
Youth participation in the formal economy is not a mere
token – it is at the core of the role the Industrial
Development Corporation (IDC) must assume.
Over the past three years, the IDC has committed
more than R1.2 billion in support of youth-owned
businesses. We are making an additional R4.5 billion
available over the next five years to finance these types
business of businesses.
It is no secret that access to funding is one of the
major stumbling blocks for new businesses. Because of
the IDC’s mandate of stimulating the economy, we are
able to take a more patient approach and offer
preferential lending rates.
This is not to say we are not thorough. We wish to help
businesses grow so they can support not only the
eco-friendly carwash service in the basement parking of “It is also a result of the sacrifices that are made founders, but also their start-up so it can flourish and
Constitution Hill, with R5 000 in seed funding. behind the scenes. attract more jobs. This demands stringent assessments of
“By the end of three months, we had expanded our “I used to dream of having a posh house in Sandton, entrepreneurs’ ability to build sustainable businesses.
services to Maboneng and I had five guys working for me.” but now my sole purpose is to directly or indirectly Given our role as a development finance institution, we
A year later, having confirmed that this young man enhance someone else’s life – to live for something that support these businesses to ensure they receive all the
had talent, Awethu helped him secure the Sefa is bigger than myself,” he says. necessary nonfinancial support as well.
investment to start Five Star Fire – matching his “We are using this investment fund as a vehicle to This is all well and good, but for South Africa to truly
personality and skills with a crackerjack business idea. build entrepreneurs, who will subsequently become role benefit from and address the challenge of youth
The business started in April 2014. A year later, it had models to their peers and the younger generation.” unemployment, initiatives such as the national youth
already quadrupled its monthly revenues – and now even conference – which we are convening in September –
has a mobile app. TALK TO US have to be emulated by more than one institution.
Ntshuntshe currently has two permanent staff members In which sectors of the economy do you think there are I put this challenge to our partners in the private and
and employs several subcontractors and part-time workers. opportunities for young business people? public sectors: let us join hands to actively seek workable
“To build a successful business, you need good SMS us on 35697 using the keyword OPPORTUNITY and tell solutions. – Zama Luthuli, IDC
leadership, which I define as a vision deeply rooted in us what you think. Please include your name and province. Visit www.idc.co.za or call 0860 693 888
purpose and conviction,” he says. SMSes cost R1.50
prove himself – at one point surprising his family by
‘Love your chickens and they will reward you’
appearing on television without prior notice.
After matric, when Eric was unsure how to get a tertiary
education without money, he took time out to research
and plan his journey. Armed with a National Student
Ruth Mylroie is a chicken farmer and the owner of New . You need to have a reliable incubator (with reliable Financial Aid Scheme (Nsfas) loan, he went to study drama
Harmony Farm in Magaliesburg, Gauteng. electricity), and the moisture content and temperature need at the Tshwane University of Technology while staying
“I have been a chicken farmer for five years. I have been to be monitored carefully. One mistake costs you with a cousin in a hostel in Tembisa, on the East Rand.
in the classroom and made the mistakes. I have been everything, plus time lost. “I was a village boy from Limpopo. It was an eye-
knocked down and faced [questions] that no one can answer . Find a good supplier of day-old chickens: opener. Everything was foreign,” he says.
because I was free-ranging my chickens,” she says. they would have been given the right In his second year, he gained access to a residence, but
This is her advice for Eric: medication. had to drop out shortly thereafter – because only half of
. Start small. Why? You need to understand how to . Keeping chickens warm for the first his Nsfas money for the previous year had been paid.
grow chickens properly; you lose less while learning. five days is crucial to their future growth. “If you do not have a qualification, you have to work
. Find your market. Try not to travel far; be the best . Find a good supplier of chicken feed. harder than ever,” Eric says, explaining how he
close to home. . Make sure chickens can be locked up supported himself by writing for TV shows.
. Know your market. Do your potential customers want at night to keep them warm and safe. In 2014, he spotted an opportunity to apply for
smaller or bigger chickens? Do they want them slaughtered . Make the area secure from predators funding from the department of arts and culture. He
or live? such as dogs, hawks and jackals. became the festival director of the PopArt public art
. Be passionate about chicken farming. You need to . Water must be available 24/7 for festival in Pretoria. Having managed this R400 000
monitor the chickens daily. One sick chicken today will chickens. It is even more important than project has given Eric confidence that he can work with
be seven tomorrow. By day three, it will be out of food. Chickens will not eat if there is no “that kind of money”.
control. water. Eric says there are many opportunities for entrepreneurs,
. Find out everything you can about chickens. On a personal note, Mylroie says: but they are not free. Some incubators require you to be
Ask questions and do online research. Never stop . Be your own person. Why pay present daily, which means you are unable to work to pay
questioning, and never stop learning. franchise fees and fall into a mould? your rent. Other opportunities require registration or
. Be consistent and reliable so you can instil . Produce a good product, at a fair price, monthly fees – or only support those already trading.
confidence in your customers. close to home. To get his business plan up to scratch, he has
According to Mylroie, there are specific . Take advice regarding the business plan, approached an agency, for which “you have to
challenges Eric should be prepared for: but you do not own it until you have worked pop out money”, he says.
. Building a zinc chicken house. These are hot in through it; it is your business. At the same time, he is saving to buy
summer and cold in winter, so you need a lot of . Open a bank account and keep control of land for the chicken farm.
power and mechanics to control the temperature, your money. Perseverance has served him well.
which is crucial for raising young chickens. Instead, a . Ensure you have enough money to He says if people do not answer
brick house with a tile roof will keep chickens cool in replenish stock. your emails or calls, knock on
summer and warm in winter, with the . Love your chickens and they will reward doors. “Make the person
minimum heating required. you. Eric Thoka PHOTO: TEBOGO LETSIE understand how seriously you
want it.”