Enterprise and Supplier Development News

Dear SMALL BLACK BUSINESSES, When it comes to 3rd Party ESD Intermediaries, some people and companies just TALK & ACT like they want to help you. Be aware and do not let other people pimp you for their own benefit.....

For reliable Expert service on Supplier Diversity, Preferential Procurement, Enterprise Development and Supplier Development contact Nelson Sebati, Pr.EAd today or visit www.enterprisesupplierdevelopment.co.za for more information. 

BBBEE ALERT: Black Industrialist Indaba 25 - 26 March 2015......

For reliable Expert service on Supplier Diversity, Preferential Procurement, Enterprise Development and Supplier Development contact Nelson Sebati, Pr.EAd today or visit www.enterprisesupplierdevelopment.co.za for more information. 

Nelson SebatI: A Small Part Of The Reason Why South Africa Has A Ministry Dedicated To Small Business Development.

Our Enterprise and Supplier Development (ESD) Expert, Nelson Sebati was part of a team that contributed towards the successful creation of the new Ministry of Small Business Development and Cooperatives. This team was appointed by the Black Management Forum (BMF) to research, lobby, present and facilitate the dialogue on the creation of a new ministry dedicated towards Entrepreneurship and Small Business Development in South Africa. After a country wide roadshow, he and the team were thrilled when the national leadership took a decision to implement their recommendations and President Zuma announced the new ministry on 25/05/14 to be led by Minister Lindiwe Zulu.

To this day Nelson continues to be an avid supporter of the ministry and has a great working relationship with its leadership. He is occasionally called on to advise on issues of Entrepreneurship and Enterprise Development. 

For reliable Expert service on Supplier Diversity, Preferential Procurement, Enterprise Development and Supplier Development contact Nelson Sebati, Pr.EAd today or visit www.enterprisesupplierdevelopment.co.za for more information. 

Beware Of Bad BBBEE Advice....

BBBEE TRUTH: “He who takes advice about BBBEE from one who is inexperienced, unqualified and not certified in such matters, shall pay with his Rands, his BBBEE points and perhaps even his freedom for proving the falsity of those opinions”.

Seek BBBEE advice from those who are competent to give it. Contact me on nsebati@murason.co.za.

For reliable Expert service on Supplier Diversity, Preferential Procurement, Enterprise Development and Supplier Development contact Nelson Sebati, Pr.EAd today or visit www.enterprisesupplierdevelopment.co.za for more information. 

The Entrepreneurship Of King Shaka: 6 Reasons Why King Shaka Would Have Been A Successful Entrepreneur.

Former President, Thabo Mbeki said it best “I am an African. I owe my being to the hills and the valleys, the mountains and the glades, the rivers, the deserts, the trees, the flowers, the seas and the ever-changing seasons that define the face of our native land……….A human presence among all these, a feature on the face of our native land thus defined, I know that none dare challenge me when I say - I am an African.”

As an African Entrepreneur my homeland, this great continent informs, inspires and anchors my business vision, strategy, processes and ethics. It is for this reason that I have decided to write my first article for 2015 on the Entrepreneurial ways of the mighty King Shaka.

King Shaka kaSenzangakhona also known as Shaka Zulu is one of the greatest military leaders in African history and perhaps in all of history. There is controversy around his methods and the strictness with which he trained his troops, but in many ways, he improved warfare methods forever. Born in 1787 in what is now South Africa’s KwaZulu-Natal province, he died in 1828, but his legacy lives on as a motivation figure to Africans across the continent. I have studied various accounts on the life and times of this influential warrior king and I could not help, but notice that his personality traits are very much similar to those displayed by today’s highly successful Entrepreneurs.

Here are 6 reasons why I think King Shaka would have been a ground-breaking Entrepreneur if he was alive today:

1. Perseverance

Born out of wedlock to an unranked woman, Nandi KaBhebhe and Senzangakhona kaJama, a minor chief of what was then a small Zulu tribe, Shaka was a humiliated and discredited child. Fleeing from humiliation at the hands of the Zulus he and his mother took refuge in the court of a neighbouring chieftain the eLangeni. There too, they were constantly harassed and he grew up quickly learning to persevere, fight and endure the cruel treatment. His father obsessively worried about being replaced by an heir sought to murder him as a boy several times, but through sheer determination he survived the multiple attempts on his life. Despite his disadvantages he went on to serve as a Mthethwa warrior and distinguished himself through his courage and adept skill as a close combat warrior. This ability gained the attention of the chieftain, Dingiswayo, who became his Mentor and honoured Shaka by making him commander of a regiment.

*Entrepreneurship is an ultramarathon. Like Shaka Entrepreneurs have to be able to live with uncertainty and push through a crucible of obstacles for years on end before they achieve their goals.

2. Hardwork

It is recorded that the hardworking king and his men routinely embarked on long marches for practice over rough and hot terrain so they could be accustomed to harsh conditions and would not be deterred by difficult environments during battle.  In line with this belief King Shaka introduced apprenticeships to instil a culture of working hard among his people and as a result children over the age of 6 years old became apprentice warriors, delivering rations, cooking supplies and carrying weapons to real warriors. By the time children came of age, they were accustomed to being in battle surroundings and were more emotionally ready to fight.

*The hard truth of the matter is that being an Entrepreneur (whether successful or not) is damn hard.  It is hard work day-in and day-out and Entrepreneurs need to understand the importance of working hard now to reap the benefits down the road.

3. Mentorship

Like Cornelius Vanderbilt to John D. Rockefeller, Tom Scott to Andrew Carnegie and Thomas Edison to Nikola Tesla so too was Dingiswayo to Shaka.

Banished from his father’s tribe, Shaka and his mother found a place in the Mthethwa clan under the rule of Dingiswayo kaJobe. Dingiswayo became Shaka’s mentor and the two developed a close working relationship. It was Dingiswayo who provided the guidance, tutelage and nurturing that Shaka had lacked throughout his childhood. With this support the ambitious young Shaka focused his attentions on excelling as a soldier serving in the ibutho lempi (fighting unit) for over 10 years. Dingiswayo trained the youngster in strategy, tactics and leadership, even including him in council meetings to familiarise him with the art of statecraft. When the Zulu chief Senzangakhona (Shaka’s father) died, Dingiswayo helped Shaka wrestle the throne from Sigujana his half-brother by providing his Mentee with the needed military backing. In later years when Dingiswayo was killed, Shaka with his military machine made it his personal mission to avenge his mentor's death. He destroyed the Ndwandwe clan in the process.

*Mentors help Entrepreneurs to stay focused and avoid unnecessary distractions that can take them off track. Mentors support to propagate and improve performance, decrease or eradicate blind spots and encourage Entrepreneurs to open up to constructive feedback by providing a safe atmosphere in which the Entrepreneurs can express fears, failures and dreams. Contact me should you require a Sales Mentor or a Personal Improvement Mentor. 

4. Innovation

Tired of the assegai - a long pole weapon made of wood with pointed iron at the end and thrown like a javelin - King Shaka introduced the ikwla, a weapon with a shorter range and a longer spearhead, sort of like a sword or dagger. This weapon gave King Shaka’s troops a huge advantage over their adversaries during close up encounters. In addition to this he also introduced a new shield and invented or perfected an attack method that became popularly known as the bull-horn-formation. This is a three-part attack system in which seasoned warriors form the “chest” of the horn at the front, pinning the enemy into a position where it can be easily attacked. Younger warriors would form the “horns” and encircle the enemy, attacking from the sides, and additional warriors formed the “loins,” standing behind the “chest” with their back to the battle, protecting against any additional attackers.

*Most Entrepreneurs are truly innovative and are able to manipulate the elements of the markets to create new solutions to business problems in the same way that King Shaka did with warfare.

5. Leadership

When his father Senzangakona, the chief of the small Zulu tribe of farmers and pastoralists, died in 1816, Shaka Zulu assumed the throne. Through his leadership vision and style he increased his army from 350 to more than 2000 soldiers in the first year of his reign and by 1824, he commanded an army in excess of 30 000 occupying an estimated 2 million square miles. He achieved this by eliminating privilege and class, introducing a graduating system through which soldiers had to earn their positions and rank, he shared all the spoils of war and resources taken from the defeated armies among his soldiers and  he allowed for ageing members of the army to be treated with dignity and to retire. As a leader he was task and achievement oriented, this gained King Shaka respect, loyalty and support.

*Entrepreneurs need to be good leaders in order to influence others to invest in them, work with them and follow them in the accomplishment of their goals.

6. Criticism

Legend has it that in mourning the passing of his mother, Nandi kaBhebhe, King Shaka implemented extreme procedures including forbidding crops to be planted, the use of milk and rampant executions. However, one Zulu tribesman stood up to King Shaka and reminded him that his mother was not the first person to ever die in their community and that some of his bereavement methods were too harsh.  King Shaka heeded this criticism, called off his lamentation measures and rewarded the tribesman for bravery in speaking up to him.

*The listening to and welcoming of criticism are some of the hallmarks of great Entrepreneurship as this leads to better customer service through improvements in product design or service delivery.

There are hardly any contemporaneous written records on King Shaka and we all must rely on 2^nd hand written material and oral testimonies, most of which are conflicting. Consequently, no one can claim to have a monopoly on the accuracy of his biography. This lack of consistency has left room for multiple interpretations of King Shaka’s legacy and what you read here are my thoughts and views on how I choose to commemorate and relate with this African legend who consolidated a nation and preserved its pride by saving it from European domination during his lifetime.

For reliable Expert service on Supplier Diversity, Preferential Procurement, Enterprise Development and Supplier Development contact Nelson Sebati, Pr.EAd today or visit www.enterprisesupplierdevelopment.co.za for more information. 

Cut Out The Enterprise Development (ED) Middle-man

ESD TRUTH: Cutting out the so-called Enterprise Development “3^rd Party Intermediaries” can result in the lowest actual-rand cost per BBBEE point ESD model for your company. To benefit from this highly cost effective ESD model contact the Sun Tzu of ESD on nsebati@murason.co.za. You and your organisation are one skill away from BBBEE success. I can show you how!!!!

Unpacking The New BBBEE Act: The Broad-Based Black Economic Empowerment Amendment Act, No 46 of 2013 (a.k.a BEE Amendment Act)

The Broad-Based Black Economic Empowerment Amendment Act, No 46 of 2013 (BEE Amendment Act) which amended the Broad-Based Black Economic Empowerment Act, No 53 of 2003 (BEE Act) to, amongst others, make the BEE Act the overarching legislation in South Africa with regard to BBBEE, to make it mandatory for all governmental bodies to apply the generic BBBEE Codes of Good Practice or other relevant code of good practice gazetted in terms of the BEE Act when procuring goods or services or issuing licences or other authorisations under any other laws, and to penalise fronting or misrepresentation of BBBEE information, came into force and effect on 24 October 2014.

The “trumping” clause contained in s3 (2), will become effective on 24 October 2015 one year after the rest of the BEE Amendment Act comes into force.

The below are several highpoints of the amendments announced by the BEE Amendment Act:

 Status of Sector Codes and generic BEE Codes

Section 10(1) now provides that every organ of state and public entity MUST apply any relevant code of good practice issued in terms of the BEE Act when, amongst other things, determining qualification criteria for the issuing of licences, concessions, or other authorisations in respect of economic activity in terms of any law; or/and developing and implementing a preferential procurement policy. This provision makes it clear that organs of state and public entities are obliged to apply a code of good practice gazetted in terms of the BEE Act and not to simply, "take into account and, as far as is reasonably possible apply" such code of good practice, as was previously the case.

 The new s10 (2)(a) provides that the Minister of Trade and Industry may, after consultation with the relevant organ of state or public entity, exempt the organ of state or public entity from the requirement to apply a code of good practice in terms of s10(1) or allow a deviation therefrom if particular objectively verifiable facts or circumstances applicable to the organ of state or public entity necessitate a deviation.

 
The BEE Act also requires that such an exemption or deviation is published in the government gazette. Therefore an organ of state or public entity would not be entitled to deviate from the requirement to apply a code of good practice unless it has first obtained the consent of the Minister of Trade and Industry to do so and it is gazetted in the government gazette.

 Section 9(5) makes it clear that where a Sector Code has been issued for a particular sector, the compliance of entities within that sector must be measured in terms of the Sector Code. This is subject to the provisions of s9 (6) which provides that if an organ of state or public entity wishes to specify qualification criteria for procurement and other economic activities which exceed those set out in a code of good practice, such organ of state or public entity must make a request in that regard to the Minister of Trade and Industry and any such consent must be published in the government gazette.

 

The BEE Act also makes it clear that a code of good practice remains in effect until amended, replaced or repealed. This is relevant in the case of Sector Codes which are currently undergoing an alignment process with the revised generic BEE Codes.

 The “trumping” provision means that any legislation which contains its own BEE provisions will have to instead defer to the BEE Act and codes of good practice, and the organs of state or public entities issuing licenses or authorisation or procuring goods or services in terms of such legislation will be compelled to apply the BEE Act and applicable code of good practice instead of the BEE provisions set out in such legislation. This will have great impact on the Preferential Procurement Policy Framework Act 05 of 2000 (PPPFA) and Municipal Finance Management Act 56 of 2003 (MFMA) when it comes into effect.

 Fronting

The concept of fronting is now widely defined in the BEE Amendment Act.

• A person commits an offence if he knowingly engages in fronting, or knowingly misrepresents his BEE status, or provides false information to secure a particular BEE status or outcome.
• An offender may be subjected to a fine or imprisonment not exceeding 10 years, or to both a fine and imprisonment.
• If the offender is an enterprise and not a natural person, it could be subject to a fine of up to 10% of its turnover.

 BEE Commission

The BEE Amendment Act empowers the creation of a BEE Commission, to amongst other things, oversee, supervise and promote adherence with the Act in the interest of the public; receive complaints relating to BEE; investigate, either of its own initiative or in response to complaints received, any matter concerning BEE and to promote good governance and accountability by creating an effective and efficient environment for the promotion and implementation of BEE.

 The Commission may issue non-binding opinions on the interpretation of any provision of the BEE Act.

The Commission may make a finding as to whether any BEE initiative involves a fronting practice.

The Commission may institute proceedings in a court to restrain any breach of the BEE Act, including any fronting practice, or to obtain appropriate remedial relief.

If the Commission is of the view that any matter it has investigated may involve the commission of a criminal offence in terms of the BEE Act or any other law, it will refer the matter to the National Prosecuting Authority or an appropriate division of the South African Police Service.

The Commission is also entitled to refer a matter to the South African Revenue Services (SARS) or to any other regulatory authority if it is of the view that the provisions of relevant legislation have been breached.

 In simple terms it now means that BBBEE is far reaching and almost impossible to ignore because if you need a license, accreditation or recognition such as a Liquor license, Import license, FSP license, CIBD accreditation, Banking license, etc. then BBBEE applies to you whether or not you are buying or selling directly or indirectly to government. Not doing business with government is no longer an exemption.

But companies are not forced to comply and if they so wish they do not have to do anything because change like business survival is not mandatory.

For expert assistance contact me Nelson Sebati.