SAB KickStart

Hepsy Mkhungo

Trialogue: CSI Matters Conference 2012

Head Enterprise Development & Community Partnerships

Enterprise Development Offerings

Tholoana Enterprise Fund SAB KickStart SAB Foundation –

Endeavor Fund

SAB Foundation Social Innovation

Awards

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• Black South African

• Preferred beneficiary: women, youth, people with disabilities, and/or people

living in rural areas

• Black South African

• Business owner 18-35 years old

• Must have potential to work full-time in the business

• Entrepreneurial, energetic, strong integrity

• Black South African

• An innovator, impeccable ethics, a role model

potential

• Ambitious & wants to grow business

• Has industry experience/ expertise

• Works full-time in the business

• South African – grant must be used solely to the benefit

of black South Africa

• Business in seed/ early development stage

• Business aimed at employing &/or assisting women, youth, people with disabilities &/or people living in rural areas

• Turnover <R1m

• Business in seed/ early development

• Post revenue

• In business (early stage)

• <5 years of operating; <15 employees

• Turnover <R5 mil

• Scalable with sustainable competitive advantage

• Businesses at catalytic stage of their growth

• Max R15m revenue

• At least 6 months in operation

• Innovation/ has potential to

• Scalable/ growth potential

• Social enterprise, with innovative product/ service aimed to assist low-income women, youth, people with

disabilities &/or people living in rural areas

• Grant financing up to R150K

• Grant financing up to R250K

• Grant financing up to R500K

• Grant financing up to R1m

• None • BDS – Mentorship

• BDS – Training

• Networking

• Mentorship

• Networking

• Access to capital markets

• Access to capital markets

SAB KickStart - History

Launched in 1995

Strategic Goal –

Poverty alleviation

Support black South Africans 18 – 35 yrs. to start and grow businesses

Competition model:

Business skills training, mentorship and grant funding

4

KickStart Beneficiary Profile

Industry or Sector Demographics

A B C W

(averages)

Employees Turnover – less than

Fixed Assets

Medium 136 R 25 m R 7.7 m

Small 50 R 8.8 m R 2.5 m

Very small

14 R2.5 m R 0.75 m

Micro 5 R 0.15 m R0.10 m

Size

Business Life cycle

Growth Maturity Decline Start-

up

Idea

Average Size of Business

- KickStart Focus (current)

5

SAB KickStart Impact Assessment Highlights - 2009

Interesting Facts

22 300 number of youth benefited from Kickstart since 1995

3 200 number of businesses started through KickStart

6.7 average of businesses started through SAB KickStart

21 000 approximate total number of jobs created through Kickstart

64 million cash investment by SAB in youth businesses to date

2009 Study: Independent SAB KickStart Review Summary of Findings (2001 – 2007)

Case Study: Indibano Group

• Trevor Muller (Cape Town)

• Before KickStart

• Entered a family run catering business

• Turnover of R200 k

• 10 years later

• Top 3 catering companies in Cape Town

• R30 million turnover

• 140 employees

R 0.0

R 5.0

R 10.0

R 15.0

R 20.0

R 25.0

R 30.0

R 35.0

Before After(10Yrs)

Turnover (millions)

Turnover(millions)

020406080

100120140160

Employees

Employees

KickStart Reengineering Journey

“Cutting edge, impactful and innovative programme”

Quick Wins Medium-Term Wins Long-Term Wins

FY13 FY14 FY15 FY16 FY12

People / Culture • Unchanged training/

mentorship resources • Low budget mgt skills

• Misaligned expertise / fit to programme objectives

E N T E R P R I S E D E V E L O P M E N T : K I C K S T A R T S T R A T E G Y

Continuous improvement

“Quantity driven and non-responsive to changes”

Maintain success in a changing environment (what do we believe we need to change to drive job creation)

, contracts • Excellent document mgt • Leading SLAs, KPIs, KPAs

• Strategically driven

Poverty Alleviation

Job Creation High impact

Thought Leadership & Benchmark

Cutting edge Marketing & Digital presence

Lessons extracted from our experience

Lesson # 1 (Reposition)

Kickstart initiative a success but un-strategic to leverage SAB’s scale and value chain… locally and internationally

…the model and the structure is sound but offers generic support… unable to deal with the unique challenges faced by entrepreneurs

…Kickstart is one of SAB’s ED initiatives within a strong portfolio of ED services that work in silos…Kickstart can benefit from a comprehensive SAB ED portfolio if structured properly

Solution:

Define key attributes for all SAB’s ED initiatives and differentiate Kickstart to enable it to leverage the existing programmes as means to support entrepreneurs over a long term for success

Lessons we extracted from our experience

Lesson # 2 (Enhance)

…the selection, training, grant funding and mentorship delivery methodology has allowed a level of success… but if we are to offer cutting edge, impactful and innovation programme

… step change to drive job creation;

…re-define the ideal Kickstart candidate rather than focus on the business idea alone

…the training must adopt best international business school practices and core modules and incorporate soft skills to ensure… practical, engaging and immersive experience

…grant funding must be needs based… a combination of grants and working capital

…mentorship to be housed within a BDS programme… long term support

Lessons we extracted from our experience

Lesson # 3 (Communication)

…SAB is a powerful brand… with the ability to propel small businesses through impactful initiatives… Kickstart is a perfect platform to build a culture of entrepreneurship

…implement relevant communication strategies, target suitable platforms…embrace digital communication (unlock value)

…use the power of a comprehensive portfolio to drive thought leadership in the Enterprise Development industry (practical application)

… continue to use SABMiller global companies to provide access to international markets for our KickStarters…

…launch supplier diversity programme… additional access to market

…continuous measurement, review and re-engineer to suit changing landscape

Digital presence

www.sabkickstart.co.za

Twitter - @sab_kickstart

SAB Facebook page