Small businesses are usually the first to fold when the economy hits a rocky patch.
But a private initiative is seeking to not only discover young entrepreneurs, but to also help them sustain their businesses.
SAB KickStart is an 18-month competition which provides intensive business skills training, business development support and grants worth more than R3 million to previously disadvantaged black South African youth aged between 18 and 35.
The overall winner will receive R500 000.
“We’ve had everything from hairdressers to IT consultants to forensic companies become successful,” said SAB’s Sanele Gaqa.
The competition criterion includes high growth potential, should be scalable, in operation for less than five years and black-run with a minimum 50 percent black ownership.
Only 60 applicants will be chosen to attend a two-week training workshop, where candidates develop an effective business plan and present it to an independent judging panel.
Then, 15 to 18 finalists will be chosen to move on to SAB KickStart Nationals, where each business will be evaluated and have its own mentorship programme developed. The businesses also receive grant funding.
At the final stage, the top three businesses will be selected, which each receiving additional funding for their business – R500 000 for first place, R250 000 for second and R150 000 for third place.
The top three will also receive an all-expense paid trip abroad for a week to learn about their products, services, and industry.
“They will meet others doing similar things across the world,” said Gaqa.
Since its inception in 1995, SAB KickStart has worked with more than 22 000 young entrepreneurs and helped set up more than 3 200 small businesses.
One of the winners last year, Solani Lidzhade, said going through the competition was “eye-opening”.
“When you are managing a business and looking to make it grow, it’s thinking about what things to start doing now,” Lidzhade said.
Her company, Mukoni Software, provides software development consulting, specialising in mobile services and web services.
Lidzhade won R250 000 and employs nine people.
Lyle Truter, a 31-year-old from Kenilworth, is at the regional finalist stage and waiting to hear if he has been selected for the national championships.
His company, TRU PVC, manufactures pipe fittings for the agricultural industry. He said the programme was challenging. “They put you through your paces,” said Truter.
He said going through the KickStart competition was valuable for his family-owned business as it gave him motivation to improve by providing him with great mentors.
“Everything you put in to win the competition also benefits your business directly,” Truter said.
l Entries for the 2013 South African Breweries annual youth entrepreneurship development programme, SAB KickStart close next Friday. - The Argus