ISSUE 003
Social|Economical|Political Minded Leaders
June 2014
Turning a Diss to a dime
www.circleofconcern.co.za
Tricky L Renewable energy posing opportunities How to Make Money on Identity crises In Technology
Home –Based
Businesses
Economic roles Of youth R19.50
ISSN 2310-8827
PETITION Circle of Concern Magazine 1
Issue 3 | June 2014
To Parliament
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Issue 3 | June 2014
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Issue 3 | June 2014
CONTENTS
Renewable energy posing opportunities for Sustainable Entrepreneurs
Editorial Letter www.circleofconcern.co.za
Dear South Africa
6
Entrepreneurship
Turning a Diss into a Dime
10
Renewable energy posing opportunities
14
Home-Based businesses
20
Law & Economics
National Credit Act
24
Finance & Business
Effective Marketing strategies for Small businesses
26
Did you know?
30
How to make money on YouTube?
32
Identity crises in technology
36
Social & Politics
Circle of Concern Magazine 4
Is BBBEE still relevant?
40
How to write a petition to parliament
44
Our parliament
50
Our role models, Good or Bad?
53 Issue 3 | June 2014
THE MAGAZINE TEAM EDITOR-IN-CHIEF Komane Golden | golden@circleofconcern.co.za JUNIOR EDITOR Services
www.circleofconcern.co.za
Market research Retainer consulting Cash Flow Analysis Project consulting Business Plans Company Profiles Strategic Plans Due Diligences Feasibility and Viability Studies Financials Business Solutions Business and Management Consulting Turn Around Plans Business Training Including: Workshops, seminars and in-house training Marketing Plans Marketing and Market Research Plans & Reports Proposals and Investment Seeking
Contacts: Physical Address: 80 Cilliers Street, Suite 214 Adverto Towers, Sunnyside, Pretoria E-mail address: emohlathe@gmail.com Fax.: 086 275 5370 Tel.: 087 734 9140 Mobile: 076 027 0633
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Molebogeng Mashobane | lebo@circleofconcern.co.za FINANCE EDITOR Kulani Mhlanga | Kulani@circleofconcern.co.za LAW & ECONOMICS EDITOR Donald Msiza | d.msiza@circleofconcern.co.za WRITERS Athi-Enkosi Majavu Simphiwe Nkosi Bongani Rakgalakane Prince Moeng Andrew Sako Marvin Malaka PHOTOGRAPHER Reinhard Nell SUBSCRIBTION Simphiwe Nkosi | s.nkosi@circleofconcern.co.za | 071 328 7107 ADVERTISING Simphiwe Nkosi | s.nkosi@circleofconcern.co.za | 071 328 7107 PUBLISHER CATHEL Group (Pty) Ltd | info@cathelgroup.co.za | www.cathelgroup.co.za Opinions expressed in this publication are those of the authors and do not necessarily reflect those of this magazine, its editor or its publishers. The mention of specific products in articles or advertisements does not imply that they are endorsed or recommended by Circle of Concern Magazine or its publishers in presence to others of a similar nature, which are not mentioned or advertised. While every effort is made to ensure accuracy of editorial content, the publishers do not accept responsibility for omissions, errors or any consequences that may arise therefrom. Reliance on any information contained in this publication is at your own risk. The publishers make no representations or warranties, express or implied, as to the correctness or suitability of the information contained and/ or the products advertised in this publication. The publisher shall not be held liable for any damages or loss arising , incurred by readers of this publication or any/ other person/s. The publisher disclaim all responsibility and liability for any damages, including pure economic loss and any damages, resulting from the use of any service or product advertised in this publication. Readers of this publication indemnify and hold harmless the publishers of this magazine, its employees and servants for any demand, action, application or other proceedings made by any third party and arising out of or in connection with the use of any services and/or products or the reliance of any information contained in this publication.
Issue 3 | June 2014
EDITORIAL NOTE
Editor-In-Chief Komane Golden Tshegofatso
www.circleofconcern.co.za
Third Issue!!! Ka Boom The journey was quite hard and sour but the persevering team made it to the destination. Our dream of preaching the gospel of entrepreneurship is going well so far, given the fact that this is our third issue. It all came together with the support of our families, friends and READERS. I just want to remind you that living a dream should be a priority and be pigeonholed if possible. It is not easy but it worth doing. Be what you want to be not what people expect to be. It is nice to wake up and do what you love most. Les Brown once said that most people do not realise that many people die of heart attack on Monday morning between 8 am to 9 am because they go work they do not like. I wish you realise your potential and start investing not only time but passion as well. I personally discovered that passion is the most powerful resource that it is not used globally. I came to that conclusion because the majority of us think that success it is all about having material things or being a billionaire. We forget what we love most. It is all about money, money, money and money. I have few books to recommend but if you have read them, page through again. Understand the impact of political leadership on our economy by reading Animal Farm written by George Orwell, Mastery by the powerful writer Robert Green, who also authored 48 Laws of Power and Thirty-three Strategies of War and Where has My Ceiling Gone? By Warren Veenman and Sally Eichhorst.
6
I don't have much to say about June 16 but I wish everyone remembers those who have died for this freedom and celebrate in a dignified Circle of Concern Magazine Issue 3 | June 2014 way. #Maibuye iAfrika
REWIND
Dear Golden,
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I read your article in the Circle of Concern entitled 'the silent death of spaza shops'. At the end of the article, you pose the question "Do you believe that spaza shops are dying slowly but surely?" At the beginning of your article, you mentioned that the possible imminent death of spaza shops is brought forth by the urbanization of the townships and rural areas in which these mini shops operate. This observation underscores the many flaws that plague the business models with which these businesses operate. Ultimately, their (spaza shops) "sell" was initially their close proximity to their consumers. Now that bigger players in the industry, with more professional setups, enter the areas in which the operations of the spaza shops are based, they are easily threatened because of many factors including the lack of exhibiting professional. It is not a sustainable business strategy to rely on close relationships with your customers. You also mentioned that these bigger supermarkets sell their items at lower prices; this brings me to my
next point...the revenue models under which the spaza shops are run. They charge very high prices because of adding a mark-up to a price that already has a mark-up; this is a consequence of buying their stock from wholesalers and not directly from manufacturers like the larger retailers do. This reveals yet another flaw to their business models: they are simply too small to compete. The size problem is further intensified by the lack of ambition to grow that the spaza shops exhibit. Growth of a business operation is paramount to the reduction of costs, which in turn enables one to compete with other businesses in their market and beyond. My conclusion is that no matter how confident the spaza shop owners are, under the current business model and strategy, they are destined for failure. We have too many spaza shops, with the exception of those owned by Somalian nationals, which operate independently of each other. Only if, I believe, the spaza shops were amalgamated into one or a few businesses would they have a fighting chance. Regards. Siyavuya Majavu
Write to the Editor Express yourself by writing a letter to the editor. The editor reserves the right to edit and make changes where necessary. The opinion expressed by readers is not that of Circle of Concern and printers of the magazine. Please write in a language that is free from racism, sexism and does not promote hatred. Letters are not published on first come first serve basis. All the letters must be directed to the following email: golden@circleofconcern.co.za
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Issue 3 | June 2014
COVER STORY
Letlhogonolo Mthombeni
Turning a diss Into a
AKA Tricky L Entrepreneur, music producer and professional DJ
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Dime
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Issue 3 | June 2014
COVER STORY
By Marvin Malaka
www.circleofconcern.co.za
Letlhogonolo Mthombeni was born and raised in Ramogodi near Ga-Rankuwa. He then attended primary school at Polonia Primary School and matriculated in the year 2006 at Modiri High School. He is a professional DJ and clothing label founder, an entrepreneur in summary. He shares that during his primary years he used to have ideas about business but it only came to fruition in the year 2011. “It started early 2011 when I used to post Facebook statuses about the Dandatic idea, but then I realised that there could be a business out of this because I saw people being interested in the messages I used to share�, said Letlhogonolo. Apparently this is how the Dandatic clothing label came to being. Well known as Tricky within the entertainment industry he now co-owns the clothing label that is gradually growing since its inception in the year 2011. He now runs his clothing label with his partner and business associate Solomon Molebalwa who came in the year 2012 to assist in growing the brand.
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Issue 3 | June 2014
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COVER STORY
Describing his clothing wear he says, “I took something negative and turned it into something positive a business idea� said Letlhogonolo. He further elaborated that this is only the beginning of greater things to come as the label is only 4years in existence and is still working on it to date since its humble beginnings. The clothing line includes T-Shirts, Caps, Hoodies and bucked hats. For those who would love to own one of the apparels can always visit clothing and record stores like Hip Hop Joint, Foreal records and multi-racial records. It is always inspiring when young people conquer their fears by leaving their dreams.
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Issue 3 | June 2014
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COVER STORY
Besides running a clothing label he is a professional DJ who has made a name for himself as a Soulful House DJ; he is well known as Tricky L. Since then he’s been playing in major gigs throughout South Africa alongside local and international DJ’s like Vinny da Vinci, Oskido, Louis Vega and Ralf Gum to mention but a few. Tricky L stands out from crowd of DJ’s because of his unique blend of music with his clothing brand that is on huge demand. Let us call it entrepreneurship. Although he did not study business at school, he highlighted that he knows a bit about it that helps him to manage his business. He advised youngsters about the importance of having a bit of educational background related to what you are planning to pursue as a business. “It is very important doing some short course more especially for people interested in the entertainment industry, they should be knowledgeable about what they are doing” He emphasised.
entertainment industry. He has been fortunate enough to work at a record label, then known as Da Joint in Tshwane were he started as a volunteer, he then became a salesman selling records. From then the owner after seeing his commitment and passion promoted him to buying music from abroad. “That’s when I realised that music is universal because I used to order LP’s in Germany, New York and France, I then began to distinguish difference of sounds and I gained a lot of experience.”, he said. He is a Disc jockey who knows his music very well; describing his selections as timeless music that you can listen to even after 5 years and still feel the same. He further said that his music is soulful and touchy, with vocals, a bit of a drum and bass line.
He attributes his success in music to his role model Vinny da Vinci whom he says played a pivotal role in him being where he is today. Vinny is like a brother to me, I can receive a random call from him anytime, he said. American rapper Shawn Corey Carter also inspires him, “Jay Z is my ultimate inspiration because he also does what I do, he owns a clothing label and does Hip Hop music and DJ Sbu because of his work ethic”, Letlhogonolo said. DJ Miggs, Positive K, and Nastee Nev also had a major influence in his career by mentoring him within the Circle of Concern Magazine 13
Issue 3 | June 2014
ENTREPRENEURSHIP
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Renewable energy posing opportunities for Sustainable Entrepreneurs
A
ccording to International Energy Agency, more than one-third of people in the world start life without access to electricity and clean fuels for cooking, heating and lighting. The question that one asks now is how can electricity affect economic growth and does renewable energy pose opportunities for entrepreneurs? Institute of Development Studies states that nearly 1.3 billion people, close to onefifth of the world’s population, have no access to electricity. Lack of access to efficient modern energy has a significant impact on economic development and small-scale enterprise, educational opportunities, infant mortality, gender equality and quality of life. The above indicate that there is a gap in the market for entrepreneurs to exploit and bring forth economic growth. Renewable energies, such as wind, solar, and geothermal technologies, increasingly pose significant, if novel economic opportunities to Circle of Concern Magazine
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revitalise rural communities and steer them onto cleaner, more sustainable paths. What has often left out of public conversations, however, is how private businesses and entrepreneurs might step up and dare to navigate the renewable energy development process, especially in communities that have not hosted renewable energy projects before. There is an emerging concept called sustainable entrepreneur +ship, which provides an informative lens for uncovering insights about how renewable energy development can create a “win-win� for both entrepreneurs and local communities. Sustainable entrepreneurship is defined as the exploitation of business opportunities to create goods and services that sustain the natural and/or communal environment and provide economic and social gains for others (Patzelt and Shepherd 2011). Issue 3 | June 2014
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ENTREPRENEURSHIP
in a 2013 review of 4,640 medical facilities in 11 countries in sub-Saharan Africa, 26% had no electricity. Doctors and midwives delivering babies use whatever poor-quality lighting is available — kerosene lanterns, candles and even mobile phones — or do it in the dark. New-borns can be scarred by dripping candle wax. Mothers die from treatable conditions. This makes us realise that entrepreneurship is not about wealth creation only but correspondingly about bringing solutions to problems. Whereas traditional entrepreneurship uses finance and business acumen to transform innovations into economic goods (such as new products or technologies) for business gains, by contrast, sustainable entrepreneurship leverages those business skills to transform environmentally-protective innovations (such as renewable energy) into economic and social gains for the entrepreneurs and other relevant groups, such as local host communities. Even small interventions can save lives. When Laura Stachel, an obstetrician in California, travelled to northern Nigeria in 2008, her torch helped local doctors to finish an emergency Caesarean section when the power went out. Back home, she and her husband developed a portable solar electric system — a 'solar suitcase' — to provide power for lighting, laptops, phones and small medical devices The systems cost about US$5,000, including transport, installation and training. Hundreds are now used in clinics in 30 countries and have cut maternal deaths by as much as 70% in some cases. The global threat posed by climate change means that we also face the pressing need to use less carbon in existing energy systems. Making progress on both energy poverty and decarbonisation requires a sharp increase in renewable electricity production, both on and off-grid. The Evidence of Benefits for Poor People of Increased Renewable Electricity Circle of Concern Magazine
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Capacity: Literature Review states that investments in renewable electricity-generating capacity have benefitted poor people. Ensuring renewable energy benefits people living in poverty rests on four factors:
Once electricity is generated, it needs to be reliably fed into the system. This additional supply must be made accessible, and affordable, for poor people. Increased electricity consumption then needs to translate into poverty reduction. Increased electricity supply can indirectly reduce poverty by boosting economic growth. Rapid improvements in low-carbon energy technologies have made 'green growth' an attractive development path for emerging economies, without ruinous increases in carbon emissions. In the past few years, clean-energy alternatives have become practical and affordable in many places — often cheaper than the dirty and dangerous fuels currently in use. The market for such products exists: an estimated $37 billion is spent each year on kerosene for lighting and conventional cooking fuels such as charcoal — not far from the $48 billion a year thought to be required to achieve universal access to modern energy services. Where financing opportunities exist, a new breed of clean-energy entrepreneurs is emerging. The Global Alliance for Clean Cook stoves, also led by the UN Foundation, aims to create a global market for clean and efficient household stoves, with the goal of reaching 100 million households by 2020. The alliance is working with nearly 1,000 public, non-profit and private partners to drive investment, support entrepreneurs, conduct research and enhance testing of clean stoves in dozens of countries. Issue 3 | June 2014
ENTREPRENEURSHIP
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Innovative financing is needed to overcome the high capital cost of installing renewable-energy systems. Investments in energy-access projects and products must be coupled with assistance in managing a growing business. Local banks must become more familiar with energy technologies and with lending to small and mediumsize enterprises, including working capital to support expansion. The Global Alliance for Clean Cook stoves has launched several specialized funds to help entrepreneurs to grow in the sector. Techniques for channelling large-scale finance to multiple small-scale projects are needed. 'Green bonds', such as those issued by the International Finance Corporation, offer a low-risk investment proposition to finance clean energy and lowcarbon projects and thus bundle and securitize debt. Partial loan guarantees have also been used to support energy projects. For example, the African Development Bank provided a partial guarantee for a wind-power project in Kenya to protect against political risks of delay or default.
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A few years ago General Electric welcomed innovation by inviting anyone to submit ideas for “powering the grid” and “powering the home.” GE and its venture capital partners received 5,000 business plans and invested $140 million in a range of businesses. Many other companies like Heineken, Lufthansa and Unilever have used contests and open innovation initiatives to try to solve problems in energy, water, packaging and logistics. Two mega challenges in particular -- extreme weather (driven by climate change) and intense pressure on resources -- are raising the cost of “business as usual” and forcing deep changes or what I’m calling a “big pivot” in how we operate. Entrepreneurs can pivot as well; they can save money, reduce risk and drive innovation in their own businesses. But more importantly, they can ride the tide of deep shifts in markets, help larger entities transition, and profit in the process and help bring about a more prosperous world. Humanity is facing new, enormous pressures that threaten our ability to create a thriving global economy.
Issue 3 | June 2014
BE A CHAMPION
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CONQUER YOUR
LIFE BY
LIVING
By Komane Golden Circle of Concern Magazine 17
Issue 3 | June 2014
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EDITORIAL LETTER
Circle of Concern Magazine 18
Issue 3 | June 2014
Annexure ads Full Page Sized Products
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Half
Page Sized Products
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Issue 3 | June 2014
ENTREPRENEURSHIP
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Home-Based
T
here are a lot of people working from home and the number of people who wanted to jump on the same bandwagon increases in fast pace. Working from home gives you comfort and flexible time. With this, you can work even in your pyjamas and Circle of Concern Magazine 20
you work on your own pace, freedom. You even get to dictate how much you will earn for the day as there are no limits. So long as you know the value of hard work and discipline, you are sure to earn as much or even more than what office workers do. You can work soon after you wake up, in be-
tween chores or while you are watching your children play. Many people have different reasons as to why they want to work at home. One of the hippest trends today when it comes to venturing into business is a home -business because of its practical benefits to entrepreneurs. Issue 3 | June 2014
www.circleofconcern.co.za 21
If you are planning to have a home based business that can provide you with several benefits, especially in tax, so that you can really save a lot of money then having a home-based business is something to consider. In order for you to ascertain the success in your business, you should always implement tax saving techniques. Just before you start your business, it is very important that identify the most beneficial setup for it by simply consulting a tax attorney or accountant. The following are some of the benefits of working from home according to INVESTOPEDIA: The tax benefits of operating a home office can be lucrative. If your situation qualifies, you can deduct a portion of your home's expenses, such as mortgage interest, property taxes, utilities and repairs and maintenance, against your business income.
To qualify, your home office must be your principal place of business and you can only deduct the proportionate amounts of the total expense which are directly related to your business. Although you cannot create a loss with your home office expenses, you can carry them forward to future tax years if you do not have enough business income to use them up in the current year. Healthcare for you and for the employees is considered a deductible expense. But there are limitations in this matter so you can check with a tax consultant or accountant. There are other possible deductions for a home based business which include the business portion of the home expenses. But in order to know the amount you can claim, you need to calculate the total space used for the business.
“Entrepreneurship is not a career but a religion� Komane Golden Tshegofatso
COSMETIC Starting a home based cosmetic business is one of the ideal investments. Being passionate in creative artworks including putting make up on face can bring you a successful business. You need patience, intelligence, time, and effort to establish a business like this .Of course, passion is not enough to start a home based cosmetic business. You should also have knowledge on how to operate this type of business. Establishing a home cosmetic business is a gate way for those who are just staying at home all day to earn additional income. If you are creative enough and industrious, a wealth and proper established cosmetic home business could even provide enough of profit to giveMagazine a person sufficient disposable inCircle Concern come for financial independence. When you want to
build a business like this, the first thing you may consider is the type of cosmetic products you are going to sell and the environment or business location. It will be unreasonable to start a luxurious cosmetic business in rural area, where the majority are struggling soften slice of bread. Therefore, you must create and examine a line of cosmetic items. The items must perfectly be economical and in demand or greatly enhance the items that already exist. Remember, customers provide you honest comments regarding the quality and value of the products. So, offer friends or other people to review the products and any suggestions for improvement.
Issue 3 | June 2014
RECYCLING
TYPING
your starting capitalization. Secure One way is by typing documents at home. You‘ll all the necessary business doculove it because you don’t have to travel to and ments and permits to make from work every day or deal with difficult bosses your recycling business legal. and all you need is internet connection and that writing skill you already have in you. Typing docuAs this is one of the calls of the govments at home is surely promising and is easy to ernment to recycle, it will not be do too. Your clients here would be mostly stuhard for you to get your business dents and profespermit and any other licenses. Presional who need pare the place where you are going their documents to receive the recyclables. As scrap prepared profeshas many varieties, segregate them sionally in terms properly so it will not be hard for of form and conyou to transport these to the recytents. cling centres/companies where you However, it is not something that you can do plan to sell your collected scrap. whenever you feel like it. There are preparatory Do the advertisement. For the steps that have to be done for you to be able to meantime that you are starting up, break into the market. First step is of course look let your neighbourhood know that for writing opportunities. you are going to open up a recyWhen searching through different work opportucling business in your vicinity. This nities, you have to remember your expertise and will be helpful for them for they will your schedule. When you are already confident no longer go far to sell their usable about your skills in typing documents and has scrap from home. Making your been getting positive feedbacks from clients, it’s business known in your area will time to take it to the next level. Looking for more make your market bigger. clients will be your way to earn unlimited profits. As the bulk of clients for this type of job can be found online, you have to be extra patient about searching through online pages that cater to this PRINTING BUSINESS service. Also, make your services known by If you are looking for ways to secure your family’s future, the business posting on your online page about it. Better yet, that is ideal for you is the PRINTING business from home. The major adcreate your very own website where you and vantage of this kind of business is the ability to cut a large amount of cost your possible clients can communicate. when it comes to renting an office or operation space. In order for you to finally get started in this business venture, you need to get the following: toner, paper cutter, paper, and digital printer. Of course, the first thing, which you need to prepare, is the business plan that discusses all the issues and details concerning your business. www.circleofconcern.co.za
Recycling is encouraged by the government in most of the countries. That is why, recycling business not only supported by government agencies, it is also profitable kind of business both in suburban and in the city as well. While people do the throwing of garbage out of their household just to fill in the landfills, why not try to turn their useful garbage into cash? This kind of business is not as hard as other businesses, because you can start doing this with a small amount of capitalization, and you may start collecting scraps just at your backyard or even in your garage. Determine how much the recycling centres/companies buy each kind of scrap. You can be competitive in price even if you are just new in this business if you do the research of knowing the price of each kind of scrap in your nearest recycling centres. By doing this step, it will help you determine how much you are going to prepare for
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Issue 3 | June 2014
know better you do better.” With the above, as Circle of Concern we hope that we have ignited your entrepreneurial individual and gave you knowledge that will be used as a weapon towards economic emancipation and financial freedom. “Unless you try to do something beyond what you have already mastered, you will never grow.”
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According to Investopedia, more than 50% of all new businesses fail. If you have had to put money out for office space and other fixed costs right off the bat, a start-up failure can be costly. Working from a home office allows you to test out a new business without a lot of overhead. This way, you can determine its viability before investing a lot of money. Maya Angelou said, “When you
“Logic will get you from A to B. Imagination will take you everywhere” Albert Einstein
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Issue 3 | June 2014
To promote a fair and non-discriminatory marketplace for access to consumer credit and for that purpose to provide for the general regulation of consumer credit and improved standards of consumer information; to promote black economic empowerment and ownership within the consumer credit industry; to prohibit certain unfair credit and credit-marketing practices; to promote responsible credit granting and use and for that purpose to prohibit reckless credit granting; to provide for debt reorganisation in cases of over-indebtedness; to regulate credit
information; to provide for registration of credit bureaux, credit providers and debt counselling services; to establish national norms and standards relating to consumer credit; to promote a consistent enforcement framework relating to consumer credit; to establish the National Credit Regulator and the National Consumer Tribunal; to repeal the Usury Act, 1968, and the Credit Agreements Act, 1980; and to provide for related incidental matters.
Purpose of Act:
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The purposes of this Act are to promote and advance the social and economic welfare of South Africans, promote a fair, transparent, competitive, sustainable, responsible, efficient, effective and accessible credit market and industry, and to protect consumers, by(a) promoting the development of a credit market that is accessible to all South Africans, and in particular to those who have historically been unable to access credit under sustainable market conditions; (b) ensuring consistent treatment of different credit products and different creditproviders; (i) encouraging responsible borrowing, avoidance of over-indebtedness and fulfilment of financial obligations by consumers; (ii) discouraging reckless credit granting by credit providers and contractual default by consumers; (d) promoting equity in the credit market by balancing the respective rights and responsibilities of credit providers and consumers; (e) addressing and correcting imbalances in negotiating power between consumers and credit providers by(i) providing consumers with education about credit and consumer rights; (ii) providing consumers with adequate disclosure of standardised information in order to make in formed choices; (iii) providing consumers with protection from deception, and from unfair or fraudulent conduct by credit providers and credit bureaux; (f) improving consumer credit information and reporting and regulation of credit bureaux; (g) addressing and preventing over-indebtedness of consumers, and providing mechanisms for resolving over-indebtedness based on the principle of satisfaction by the consumer of all responsible financial obligations; (h) providing for a consistent and accessible system of consensual resolution of disputes arising from credit agreements; and (i) providing for a consistent and harmonised system of debt restructuring, enforcement and judgment, which places priority on the eventual satisfaction of all responsible consumer obligations under credit agreements. Circle of Concern Magazine 24
Issue 3 | June 2014
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YOUR Circle of Concern Magazine 25
DREAMS Issue 3 | June 2014
ENTREPRENEURSHIP
Effective marketing
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strategies for small businesses
M
per-connectivity of our highly-digitised lives to the ost small businesses ask a
bright, flashy, complicated sensory input we’re fed
common question, which is
everyday, there is no way to continue at this pace.
how can I improve my mar-
Most successful marketing strategies will be ones
keting with no or little money? According to Forbes
that are not only simple in nature, but promote
magazine, the Internet has drastically altered the
goods and services that serve to simplify the con-
way in which information is shared, and has had a
sumer’s life, or even just their customer experi-
profound impact on marketing. An article on
ence.” This article aims at simplifying the most
Forbes stated, “There is a sense that from the hy-
effective marketing strategies for small businesses
Circle of Concern Magazine 26
Issue 3 | June 2014
ENTREPRENEURSHIP
Companies advertise their products for a number of
or Twitter. Being active on social media sites will not
reasons. The basic idea is to introduce and promote
only increase brand awareness, it will also boost
the product for sale, which is the dominant reason.
your company’s rank on search engines, and prove
When a company launches a new product, it adver-
that you are a business that is in sync with the
tises the product in order to create awareness and
times. Join as many Linked-In groups as you can that
consumer interest. Some compa- Being active on social media are related to what you sell and nies advertise their products to sites
post a question or tip on a regu-
change attitude of the custom-
lar basis. If you have a blog or e-
ers,
to
make
the
product
‘upmarket’ or to subside some widely held perceptions about
will not only increase brand awareness, it will also boost your company’s rank on search engines, and prove that you are a business that is in sync with the times.
www.circleofconcern.co.za
the product. When the products
newsletter, post an announcement to your Linked-In groups with a link whenever you release a new issue or blog
get old, the idea behind advertisement is to reas-
posting. It is free; you will be recognised as a leader,
sure and remind the customers about the products.
and reach thousands of business people interested
Companies also tend to advertise their products to
in your field.
offset the products launched by the competitors.
Turn to those in your field for the “low hanging
Social media is about connecting with the people in
fruit”. Find larger companies or older, more experi-
your niche: customers, potential customers, people
enced businesses and invite them to lunch. Ask
who are interested in what you do, etc. It’s about
them to consider referring their smaller cases or
building relationships and networking, not selling,
business they don’t have time to handle, to you.
although that does come as a result. Establishing a
With every successful referral send them a hand
presence on the Internet even if you have a physical
written thank you card thanking them for their sup-
store is critical. Create an interactive, regularly up-
port. This will help you build your client base with-
dated site or blog, or by build informative yet infor-
out having to spend a lot on advertising.
mal profiles on social networking sites like Facebook
Circle of Concern Magazine 27
Issue 3 | June 2014
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ENTREPRENEURSHIP
There is nothing like entering a business award com-
of Buzzfeed and Pinterest are testaments to the
petition to strengthen the reputation of your small
power and viral potential of image-based content.
business. Winning an award can catapult your repu-
Successful blog posts that receive the most social
tation within your industry and with the sales audi-
shares also usually have a common characteristic:
ence you aim to attract. Many competitions cost
they pepper in some well-placed pictures to break
nothing to enter – except for the Don’t forget, the secret to time it takes to prepare your entry. winning is taking the time to
content up and emphasize certain
Professional and trade organiza- prepare well-written entries.
fographics, which combine images
tions, chambers of commerce, The rewards for winning a
with a minimal amount of text to
Better Business Bureaus, universi- business award can last
explain a topic and provide statisti-
ties – even churches are all organi- seemingly forever.
cal information or data from re-
zations that host business competitions. Keep your
search studies. It’s pretty clear that incorporating
eyes open for opportunities. Don’t forget, the secret
images is beneficial to a marketing campaign. Due to
to winning is taking the time to prepare well-written
the widespread (and quickly growing) use of
entries. The rewards for winning a business award
smartphones and tablets, it’s necessary for compa-
can last seemingly forever. Brag about winning on
nies to create content that’s accessible to mobile
your website; send a letter to clients; post the award
users.
in your office or store so whoever comes in will see
Online map listings are essential for businesses as
it. And of course, send out a press release and get
well, with brick-and-mortar locations. They are the
your picture in the paper!
first thing people see on search engines. They offer a
Seriously consider starring in your own YouTube Se-
concise snapshot of business info so customers can
ries. Take your product or service and dramatize it
easily contact you or visit your store. And best of all,
through a simple, homemade YouTube movie. Go a
they don’t cost any money! Make sure your business
step further and script out a four-part series that you
is on Google+ business, as well as all the local review
can post on your website. Study the ad campaigns
sites and other map listings you can find.
that get people’s attentions and come up with some-
As a small business it is very vital that you consider
thing of your own — unique counts. Virally spread
the way you brand your business as it may be a de-
your marketing message by making sure influential
ciding factor on whether your business succeeds or
local bloggers see your video.
fails. How your customers view your business will
As consumers are hit with an increasing number of
determine whether they will prefer your business to
advertisements, it’s becoming more important to
your competitors, therefore, having a good mar-
make content easily and quickly digestible. There is a
keting strategy may lead to the success of the busi-
rising emphasis on images. The rapid rise to success
ness.
Circle of Concern Magazine 28
points. Another example is in-
Issue 3 | June 2014
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Issue 3 | June 2014
INFORMATION
By Athi-Nkosi Majavu
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Manchester United Football Club listed on a stock exchange. YES, the English Red Devils listed on the New York Stock Exchange’s Euronext. The club first went public in 1990, but it was delisted when American businessman Malcolm Glazer acquired full ownership of the stock-much to the distaste of the Manchester United faithful. The Club is now back on the stock exchange, this happened in 2012 as a means to raise capital. Therefore, you can imagine what happens to the stock when the club’s performance is shaky... at the time of writing, the stock traded at $16.62 with a market capitalisation of $2,72Bn.
South African Smartphone A joint venture by two South African companies, Seemahale Telecoms and CZ Electronics promises the first South African designed and manufactured Smartphone in the second quarter of this year. The project was first announced towards the end of 2013, and now it seems closer to being a reality with other parties buying into the project. The phone will run on an Android operating system and will be priced lower than others of its standard according to the companies. South Africa will now have its own footprint in the smartphone market.
Ford Ford motor company is the only company of the then big three American automakers not to receive a government bailout or file for a chapter 11 reorganisation following the financial crisis that had many companies with their backs against the wall. Circle of Concern Magazine 30
This was despite the fact that Ford had been facing a financial crisis of its own prior to the automotive industry crisis of 2008–2010, and their Chief Executive was relatively new to the industry. General Motors and Chrysler both filed for bankruptcy, listing approximately $121,600,000,000 (2009 figure) in assets combined.
Twitter Profit Twitter Inc., the NYSE listed company has never turned a full year profit in its history…never. Despite this, the Silicon Valley Social media company went on to list on a stock exchange in 2013. Its founders became billionaires, but there is a nagging question of what the investors see in a company that has never turned a profit. Operating in an industry where advertising revenue is the main revenue stream. Also, Facebook and Google are dominating this market in terms of competition for revenues. We will wait and see if Twitter can survive and possibly turn a profit one day.
Common Currency-SADC There is a deliberation that countries that form part of the Southern African Development Community (SADC) should have a common currency. This would mean that hustles when visiting other countries in the SADC region when it comes to money are avoided. The initial goal was that by the year 2016 this should be achieved, but analysts argue that this is unrealistic at the moment. A similar move is when the European Union introduced the Euro to its member countries. It would sure be pleasant to know that I don’t need to buy another currency in order to be able to make purchases abroad. Issue 3 | June 2014
INFORMATION
Yahoo Inc. For the first time in nine years, Yahoo will not make it to the fortune 500 list of America’s largest corporations (measured by revenue), according to Fortune. This owes to the fact that in 2013 revenue fell 6%, to $4.68 billion. This in turn is due to the loss of popularity among users and subsequent loss of advertisers citing that the technology behind Yahoo's tools is very old-fashioned. It is very unfortunate for Marissa Mayer that this had to happen under her leadership.
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Issue 3 | June 2014
ENTREPRENEURSHIP
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How to make money with
Y
ou may or may not Already now this, but YouTube’s Partner Program is an initiative by the Google-owned video-streaming platform to help creators develop skills, build audiences and crucially to earn some bucks. YouTube is a lucrative goldmine and is making its users millions of dollars every year. According to analytics company SocialBlade, those homemade videos are earning some users over $16 million a year. Uploading a video clip on YouTube of your friends getting up to, mischief can win over a cooing international audience and earn big money. YouTube was one of the first sites to pay its users, and while it is hard to make money unless you generate a lot of traffic, it is possible. Some people even make a living. Circle of Concern Magazine 32
Issue 3 | June 2014
ENTREPRENEURSHIP
The YouTube Partner Program is currently available in Argentina, Australia, Brazil, Canada, Colombia, Czech Republic, France, Germany, Ireland, Israel, Japan, Mexico, Netherlands, New Zealand, Poland, South Africa, Spain, Sweden, United Kingdom and the United States.
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Therefore, you are probably wandering how you can start making money out of your homemade videos. It is all through the advertising run on the clips. Users have to enable their clips for monetisation in the settings. YouTube will then have to approve your video and link to your Google AdSense account to start earning money. Before you get carried away, YouTube will NOT let you make money off your video if it contains content that you didn't create or get permission from its creator to use; shows people from whom you did not get permission; has content that would be inappropriate for children. This means that you cannot record yourself or friends singing songs that you did not get permission to cover. Therefore, those people that were thinking of singing Beyoncé’s songs can rethink their strategy.
Circle of Concern Magazine 33
You will not start making money until at least 1000 people have clicked on your ad-running clip. From there what you earn can depend on what ads are on it. A man from the UK left his job as a barman to earn his crust from YouTube by uploading a 20-minute gaming clip every day from his bedroom. Most people would thought he was mad, deluded or plain lazy but Joseph Garrett (known as Stampylon) is now set to make up to $11.2 million a year. YouTube claims its technology can predict when a video is about to go massive. They also say that they contact owner and offer to start serving up advertising, so they can make money from a one-week sensation. “If you’re willing to work hard and create videos that entertain, inspire, educate and amaze, then you can find success on YouTube. Whether you’re a novice or a mogul, we’re committed to helping you meet your goals as a YouTube partner,” YouTube said. What does this mean for young people and filmmakers? Grab the camera and hit that recording button to start earning some YouTube money!
Issue 3 | June 2014
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Circle of Concern Magazine 34
Tell us more about it and we will feature your business in the next month’s copy. Issue 3 | June 2014
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Issue 3 | June 2014
TECHNOLOGY
IDENTITY CRISIS IN TECHNOLOGY
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i
This diversification calls for some boundaries for players in the industry, especially the ones that have access to enough money to spend on anything they desire. A
t is not surprising when Bidvest snaps up most companies, with their recent notable acquisition being an increase in their holding in Adcouple of companies seem to uncock Ingram. We are not astonderstand these ished because When Ford motor company was boundaries when it Bidvest has asserted looking to grow their reach be- comes to mergers itself as a giant contween the years of 1999 and and acquisitions. glomerate reporting 2001, they acquired companies When Ford motor revenue of R153.4bn and brands of their own kind in company was lookthat grew by 14.9% both Volvo and Land Rover. ing to grow their in financial year reach between the 2013. Bidvest is not the subject of years of 1999 and 2001, they actopic here. The technology indusquired companies and brands of try is, in a class of its own in their own kind in both Volvo and terms of diversification, which Land Rover. Another good examincludes engineering, science, ple is a South African company electronics etc. From the early Famous Brands whose acquisisteam engine automobiles to the tions show intentions of growth latest smart TV, we have come a within their sector, with their long way. most recent being the 70% stake
in Wakaberry. This is an effective and proven growth strategy to becoming an influential business but that does not necessarily mean that it will always work some went astray. We cannot say the same, for companies like Facebook and Google, whom one may say are experiencing an identity crisis, causing constant headaches for cautious investors. Some of these, and other similar acquisitions, have resulted in purely software companies moving into hardware products-Google’s acquisition of Motorola mobility in 2011-and vice versa-HP’s purchase of Bluestone software and others before that. Moreover, some just do not make sense like Facebook’s acquisition of Oculus VR Inc.
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Issue 3 | June 2014
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TECHNOLOGY
Have these companies forgotten their identities? Are they on a spending spree to show that they have money? What will happen to their core business or service? These questions arise because most of those companies keep moving farther away from their core business or services with some having migrated completely from their core business, for example, Anglo American Plc. no longer has any ties with gold mining that was its core business when was founded in South Africa back in 1917 as Anglo American Corporation. Anglo may not be a technology company, but you understand the argument thus far. Yahoo! Inc., an American multinational Internet corporation, globally known for its Web portal, search engine Yahoo Search, and related services, including Yahoo Directory, Yahoo Mail, Yahoo News, Yahoo Finance, Yahoo Groups, Yahoo Answers, advertising, online mapping, video sharing, fantasy sports and its social media website. It is one of the most popular sites in the United States (Wikipedia stated). This internet giant, like its Silicon Valley counterparts, has been on a shopping spree; spending around $ 1.4 billion to acquire 37 companies, with their biggest purchase Circle of Concern Magazine
37
being social software start-up Tumblr for which they paid $ 1.1 billion. Despite these growth efforts of the company, 2013 revenue fell 6%, to $ 4.68 billion. The question that arises is where is proof that Yahoo! is now bigger than it was in the 2012 financial year? $1.3 billion was spent and where are the results? On the other hand, advertisers complain that the technology behind Yahoo's tools is obsolete.
Is growing wider truly the best growth mechanism in the 21st century, having one’s foot in many distinguished sectors? Have these previously small technology companies decided that they want to become technology “conglomerates”?
Why they work on modernising assets directly linked to the generation revenue instead of spending money on growing away from their core market? Focusing on increasing their user base, which is paramount to advertising reve-
This is a dangerous game and only those with big money can play. Facebook said that the acquisition of WhatsApp supports Facebook and WhatsApp’s shared mission to bring more connectivity and utility to the world by delivering core internet services efficiently and affordably.
nue growth, would that do Yahoo! any harm? As it is clear that these acquisitions are not for profit intensification, are they for competition elimination? This is unlikely because competitors to Yahoo! are Google and Facebook, and it is not buying them.
These questions are yet to be answered, but knowing of at least one company that forgot its core market and ended up being a chaser in a different market, their business model perhaps did not work well and ended up on the back foot of many players in that industry.
Further, the combination will help accelerate growth and user engagement across both companies. Considering that the Menlo Park company’s main revenue stream is advertising, how the acquisition of WhatsApp will contribute towards growing Facebook’s revenues going forward is what we are yet to see. It becomes exciting when one thinks about it this way.
Issue 3 | June 2014
TECHNOLOGY
of people have enjoyed using” The Finland startup, ProtoGeo Oy, posted the news in a blog post on Thursday (24-04-2014). Looking back to when Facebook was incorporated, it surely has changed significantly, hopefully for the best.
Bay portion of the San Francisco Bay Area in Northern California, United States. It is home to many of the world's largest technology corporations, as well as thousands of small start-ups. It is to technology companies what Wall Street is to financial markets.
It makes more sense if these Silicon Valley companies, which have a common revenue model, were making acquisitions, which would introduce more revenue streams to their financials. Silicon Valley is a nickname for the South
Only time will tell if these technology giants are going through an identity crisis or simply adapting to the rapidly changing business environment. We will be watching on the sidelines.
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To add to its string of significant acquisitions, Facebook has purchased Moves. Moves is a free app that logs users' daily exercise and fitness routines. It also keeps track of places visited, with a map showing where users have been throughout the day and how they got there. “Today, we're delighted to announce that Facebook has acquired our company and the Moves app. Since we launched Moves, we’ve been focused on running a simple and clean activity diary that millions
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Issue 3 | June 2014
LAWS
The 7 elements of the BBBEE scorecard are as follows:
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Is B-BBEE still relevant?
Black Economic Empowerment (BEE) has emerged as the premier policy instrument to redress the socio-economic inequalities created by the apartheid system in South Africa. BEE has evolved from a rudimentary concept that was casually coined outside government in the 1990s to being the policy instrument du jour of the post 1994 democratic dispensation. BEE has received critical attention culminating in its institutionalisation through a BEE Council, an Act of Parliament, and a policy framework to facilitate its implementation. The institutionalisation of this concept across government policy and practice settings, including, in particular, the government’s drive to restructure its enterprises, has accentuated BEE’s important role in the government’s reconstruction and development agenda. The BBBEE Act is not enacted against any company; however, government institutions and parastatals are required to comply with it. However, if a certain company wants to do business with the government, it has to prove its BBBEE credentials first. At the same time, a company can improve its BBBEE rating by doing business with other companies with high BBBEE ratings. We call it a redress, giving previously disadvantaged individuals an opportunity to participate in the economic activities of this country. A key objective of this act is to promote the growth and sustainability of small business in order to grow the country’s economy. This is why they are not forced to implement BBBEE codes as they may fail to prosper in an environment in which larger companies can easily comply.
1. Ownership Equity is the effective ownership of a business by black people who have voting rights and economic interests in the organisation. 2. Management Control refers to the amount of decision making power and strategic control that is in the hands of black people. 3. Employment Equity refers to the demographics of the organisation’s employees and how they balance out throughout the organisation. 4. Skills Development is the type of training given to black employee as well as the amount of money annually on this training. 5. Preferential Procurement forces companies to look into their supplier’s BEE credentials. 6. Socio-Economic Development is the monetary and non-monetary contributions made by the company to beneficiaries, 75% of whom should be black, which promotes them to have more access to the economy. 7. Enterprise Development deals with developing entreprises mostly small ones.
Businesses have thus, been classified as Exempted Micro Enterprise (EME), Qualifying Small Enterprise (QSE) and Generic Enterprise. Circle of Concern Magazine 40
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LAWS
The Act was assented to on 7 January 2004 with the aim of establishing a legislative framework for the promotion of black economic empowerment as well as to empower the Minister of Trade and Industry to issue codes of good practice and to publish transformation charters. The Act recognises that in the past race was used to deny the majority of the population access to the formal economy’s resources and employment opportunities, including the opportunity to acquire advanced skills. As a consequence, black people were assigned to low-income occupations by default. The preamble goes further to indicate that if steps are not taken to address this race-based inequality the very future and economic prosperity of the Republic and all its people, regardless of race, may be in jeopardy. On the other hand, the question of enrichment versus empowerment quickly entered the mainstream BEE debate, as the political elites were in the main the major beneficiaries of the BEE deals struck to date. Ernst & Young revealed that 60% of the value of the total BEE deals struck in 2003 valued at R42.2 billion accrued to just two companies controlled by Patrice Motsepe, brother-in-law of another ex-politician become BEE entrepreneur, Cyril Ramaphosa, and yet another ex-politician, former Gauteng Premiere, Tokyo Sexwale. According to economist Azar Jammine many of these supposedly BEE companies are actually still being run by whites, and yes, you have got a nice *black+ guy at the top and couple of directors, but the actual businesses are still being run by white people, to me that’s not empowerment, that’s just enrichment – and it’s a very important distinction. Moeletsi Mbeki, brother of Former President Mbeki, considers BEE to be a white invention meant for “co-opting – and perhaps even corrupting – ANC leaders by enriching them as private individuals. The objective was to play on the leaders’ weaknesses of many years of deprivation in prisons and in exile by dangling in front of them unconceivable riches that would be given to Circle of Concern Magazine
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them by the oligarchs, all for free.” The acuteness of this claim manifests itself in arguments that point out that, since only the political elite have materially benefited from the majority of BEE transactions to date, there is no such thing as a black middle class. Too few of the black masses have benefited from BEE equity transactions for such a phenomenon to arise. The development of a black middle class is not solely a function of BEE equity transactions alone, but rather of all the elements of BEE, i.e. employment equity, preferential procurement, enterprise and skills development. The black middle class was already in existence by the Eighties and comprised black professionals such as doctors in private practice and store owners. One need only look at the affluent parts of townships around the country as evidence of this, prime examples being Diepkloof Extension in Soweto and Hospital View in Tembisa.
Issue 3 | June 2014
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Issue 3 | June 2014
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The children of this black middle class attended private schools and Model C schools (when these became accessible to black people) and went on to university and obtained degrees. They could hold their own spears against their white counterparts and hence would have thrived even in the absence of BEE. After all, their parents managed to triumph against the far greater obstacles caused by the socio -economic scourge of apartheid. In other words, the mere removal of apartheid laws coupled with real economic growth created favourable opportunities for economically well-placed black people to bolster their wealth and indeed the numbers of the black middle class. Consequently, broad-based black economic empowerment as represented by its seven elements merely contributed to the acceleration of the advancement and growth in the wealth and numbers of the black middle class during the past 20 years. Thus, BEE alone, even in the broader context cannot singularly explain the existence or the growth of the black middle class. With the advent of a new government, the economic elite were acutely aware that their existing politi-
cal relationships with the previous government would be of little economic value to them. Hence, new relationships had to be forged with the new political elite, and BEE gave them the opportunity to forge these relationships quickly. Economist and BEE researcher Duma Gqubule accepts that the political elite have benefited disproportionately from BEE equity transactions, but she blames white capitalists, accusing them of being engaged in a ”cynical and calculated move to buy political influence” to protect their economic interests (cited in Mail & Guardian Online, 2005). Is B-BBEE still relevant? Or can the government formulate a new policy that will ensure socioeconomic growth and not be used by the elite to continue to be wealthier through interaction with the government? It is evidential that only a few have benefitted from this policy and maybe this should be an alarming notice to the government that they need to do some changes in order to reach a point where there is a “better life for all”.
Napoleon Hill
" he majority of men meet with failure because of their lack of perT sistence in creating new plans to take the place of those which fail." Circle of Concern Magazine 43
Issue 3 | June 2014
INFORMATION
Section 56 (d) and 69 (d) of the Constitution of South Africa provides for the National Assembly and the National Council of Provinces to receive petitions, representations or submissions from any interested persons or institutions regarding any matter.
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HOW TO WRITE PETITION TO PARLIAMENT?
WHAT IS A PETITION? A petition is a formal request to Parliament for intervention in a matter. It can take the form of a request for assistance either with a specific issue or for the redress of a grievance. A petition is a way of making your voice heard after a Bill has become a law and may be a request for a change in that law. Circle of Concern Magazine 44
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INFORMATION
WHY PETITION? Public input in law-making, oversight and other processes of Parliament is a significant constitutional provision of our democracy. Parliament has developed a number of ways to promote public participation in the work of the institution. One way the public can exercise their right to participate in Parliament is through submitting a petition. Procedures for dealing with petitions are set out in the rules of the National Assembly and the National Council of Provinces.
TYPES OF PETITIONS
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There are generally two types of petitions, namely special petitions and public or general petitions. A special petition is when an individual makes a specific request or asks for personal relief from the State, which is not authorised by law, such as access to a pension. A public petition is when a group of citizens with similar interests request general relief or redress of a grievance.
LANGUAGES OF PETITION You are allowed to use language of your choice but it should be one of South African official languages. The parliament is mainly dominated by MPs speaking Xhosa, Zulu or Sotho. The parliament encourages you to summaries your petition in English.
PRESENTATION OF A PETITION According to the Constitution, “Everyone has the right, peacefully and unarmed, to assemble, to demonstrate, to picket and to present petitions.� However, there are certain procedures that individuals and/or groups have to follow when petitioning Parliament. The presentation of petitions is governed by the rules of Parliament. The National Assembly requires that a Member of Parliament (MP), for consideration, formally present a petition. Therefore, an MP must support the petition. You are entitled to approach any MP by contacting them or by visiting the Constituency Office closest to you to seek their assistance with presenting a petition on your behalf. The National Council of Provinces (NCOP) does not require that an MP support a petition. However, a petition submitted to the NCOP should be in the form prescribed by the Chairperson of the Council. The rules of the NCOP do not draw a distinction between special and general petitions.
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Issue 3 | June 2014
INFORMATION
HOW TO WRITE A PETITION
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A petition should comply with the following requirements: Be in a form prescribed by the Speaker of the National Assembly (NA) or the Chairperson of the National Council of Provinces (NCOP); Include the name/s and contact detail/s of the petitioner/s; Clearly indicate the intended recipient of the petition (to whom is the petition being addressed); Clearly indicate the nature of the request being made (the subject of the petition); Include a clear motivation for the petition; The petition must be in any of the official languages of South Africa; Be signed by the petitioner(s) themselves (unless the Speaker or Chairperson decides otherwise); Not contain improper or disrespectful language; and Must indicate the nature of the relief (assistance) asked from Parliament
HOW TO SUBMIT A PETITION IN PARLIAMENT? It is advisable that you talk to an MP before submitting your petition as they can assist you with the format and content of your petition. If there are supporting documents on the issue raised by the petitioner(s), attach them to the petition. Your petition will be lodged with the Secretary to Parliament to review it and confirm that it is correct in format and content, and then submitted to the Speaker of the National Assembly or the Chairperson of the National Council of Provinces. If the petition complies with all the requirements, it will be tabled in Parliament. If it is a special petition, it will be referred to the Committee on Private Members’ Legislative Proposals and Special Petitions in the NA or the Select Committee on Petitions and Members’ Legislative Proposals in the NCOP. If it is a petition of a general nature, it will be referred to the relevant Portfolio or Select Committee(s) that deals with the issue(s) raised in your petition. An approved format for your petition may be obtained from Parliament’s Clerk of the Papers. Once you have drafted your petition, it must thereafter be handed in at the office of the Clerk of the Papers.
Circle of Concern Magazine 46
Issue 3 | June 2014
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Issue 3 | June 2014
DEBATE
ECONOMICAL POLITICAL
SOCIAL
Circle of
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AWAKENING THE MASSES | EDUCATING OUR NATION
A page dedicated to political, social and economical debates for young people. Its time we acknowledge the fact that problems we are currently facing cannot be solved using one perspective, consolidating them will easy our way to economic emancipation I do not think it is relevant to make entrepreneurship a school subject because when you get to varsity you get those modules. There are different types of entrepreneurship books that one can read to know about it. I understand that it is important to know something about business but learning when you get to varsity is the best way. I think entrepreneurship is included in subjects like business studies. Even if entrepreneurship is broad, the basics of it are included in business studies.
Do you view entrepreneurship as a focus? The you should discuss the view that bias people have without acknowledging the theory based behind the focus
Mothiba Circle of Concern Magazine 48
Issue 3 | June 2014
DEBATE
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We should make it a school subject. Most young people only want to be employed after their tertiary education because it is what they grew up with. If we can install entrepreneur to our little brothers and sister at the younger age, they will grow up with it and become the better business people. I think we should start it at grade 7 to give these kids alternatives if they cannot find jobs after their schooling years. We need to plant the tree and ensure that these roots are well cemented. Most of successful entrepreneurs started it at younger age and if we can equip the coming generation then we can grow our economy and be developed as well. Creation of employment is another reason. Thabo
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June Question Can youth subsidy save us from unemployment? Send your comment to: golden@circleofconcern.co.za
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Issue 3 | June 2014
OUR PARLIMENT PARLIAMENT OF SOUTH AFRICA Parliament consists of two Houses, namely the National Assembly (NA) and the National Council of Provinces (NCOP).
THE NATIONAL ASSEMBLY (NA) The NA is elected every five years in national elections. During the elections voters choose whom they want as their representatives by voting for the political parties of their choice.
THE ROLE OF THE NATIONAL ASSEMBLY The NA has a constitutional mandate to:
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1. Law-making Role One of the main functions of the NA is to make the laws by which the country is governed. The NA refers Bills to Committees for processing and debates Bills. The NA can approve, reject or refer Bills back to the Committees for further discussion. 2. Oversight Role Parliament has a responsibility to scrutinise, monitor and oversee the actions of government or any other organ of State, in respect of the implementation of laws, the application of the budget, and the observance of the Constitution. Parliament keeps the Executive accountable by approving budgets, through asking parliamentary questions, having parliamentary debates about important issues and by proposing and voting on motions relating to the work of government. 3. Elect the President The NA has a constitutional mandate to elect the President of South Africa from among its Members.
THE COMPOSITION OF THE NATIONAL ASSEMBLY The NA consists of 400 elected Members of Parliament (MPs). Members of the NA are elected through a system called proportional representation. Before an election, each party draws up a list of candidates in order of preference. These candidates are then elected in proportion to the number of votes the party wins in the election. For example, if a party wins half the votes, it will hold half the seats in the NA.
OFFICE BEARERS OF THE NATIONAL ASSEMBLY
Presiding Officers At the first sitting of the NA, the members of the NA elect the Speaker and the Deputy Speaker who are referred to as the Presiding Officers of the House. The Presiding Officers are entrusted to run the affairs of the NA. The Speaker and Deputy Speaker of Parliament preside over the meetings of the NA. They make sure that Members of Parliament speak freely, but adhere to the rules of the House. House Chairpersons The rules of the House make provision for House Chairpersons to assist the Presiding Officers in performing their work. The House Chairpersons may also be required to preside over sittings of the House. The functions of the House Chairpersons include: Co-ordinating the work of Committees Preparing reports on legislation Co-ordinating oversight activities of the Committees Providing political and strategic support to the Presiding Officers.
Chief Whips Each political party in the NA elects a Chief Whip to run its affairs. The whips look after the Members of their respective parties. Leader of Government Business The President appoints a Leader of Government Business who works with the office bearers of both Houses. The Leader of Government Business is responsible for looking after the interests of the Cabinet and Government business in Parliament. The Leader of Government Business ensures that Cabinet Members attend to their parliamentary responsibilities. Circle of Concern Magazine 50
Issue 3 | June 2014
BOOKS
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BOOKS For Aspiring Entrepreneurs
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LAW & ECONOMICS
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Issue 3 | June 2014
EDITORIAL
Whether we like it or not, if exposed to a style of living for a considerable amount of Donald Msiza time, you are more likely to eventually believe that the only way in which everyone lives, and your first reaction to the set you are not familiar with is rejection. My point + is for the 10 year old boy who grows up in dmittedly, everyone has somethese townships his dream is to be like one; they look up to, a role model that one guy who drives a Velocity yet has of some sort. Jokingly with a few never been seen going to work. That guy friends of mine, we agree ‘you who is always roaming the streets but need a father’ but that is just spiritual in- come Friday he has money to buy booze terpretation of ‘you need a mentor’. The ‘till Sunday. Better yet, that girl who is thing about kids from townships, they are ‘smart’ enough to can hang out with such said to be not having people to look up to, people. Ninety nine per cent of young peobut when having an exchange of words ple dreaming of being lawyers when they sometimes with a few acquaintances of grow up are only acquainted with lawyermine I refuted that line of argument, and ing as depicted on TV, the effect being that held that we do have people we aspire to they all at that time want to be litigators, be like in the townships, but not so until sometime at varsity they are intro‘beneficial’ figures. Given the nature of the duced known to commercial lawyering and environment, the unemployment and the their thinking is simultaneously broadconsequential poverty, most of the perened, stereotypes broken. sons we are exposed to are unemployed We are our own persons and should be folks that do anything for their families, thought of as independent subjects, howfolks that hustle to make ends meet. We ever, what you expose your kids to shapes have been conditioned to look up to peotheir thinking, behaviour, life. There are ple because of what they have and where young, effervescent, ambitious and sucthey are, but as to what it is that they have cessful people out there that kids should been through to get there, as to what it is be looking up to. Let’s name drop just to what they had to give in order to have make a rather robust point, Sibusiso Leope what they do, we honestly do not care. As better known as DJ Sbu, Siphile Buthelezi a result, we look up to people that drive (a second year senior associate at one of cars around our streets and have had Africa’s biggest law firms; Bowman Gilfil‘nothing’ to do to have them. lan, in his early 30s) and Matsebe Thulare
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We have been led to believe that, in our townships schooling is the longest and most depressing way to wealth, and given the number of graduates produced by our communities. Moreover, the fact that immediately they have it together, the fewer they are, the leave for more developed and more apposite places, we are left with folks that do not have anything good to Circle of Concern Magazine say about school or education at large.
(a junior investment banker at Rand Merchant Bank, in his late 20s). To some extent, all the above-mentioned figures made their way up in so not very advantageous circumstances. It is only when we start embracing such successes from our communities; of our people, then can we see more of such admirable stories. It is embedded on the older ones to set record Issue 3 | June 2014 for the younger ones.
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Issue 3 | June 2014
www.circleofconcern.co.za Circle of Concern Magazine 55
Issue 3 | June 2014