As a little boy, David Mashiyi watched his father run a small township shop and helped out as often as he could. It was then that Mashiyi decided he would start a business and become a millionaire by thirty.

Later, he did start a business, which shortly after went bust. "My first business, JMLG Deliveries, failed because I did not have any proper accounting knowledge. Although I was making money in the one hand, I was losing money from the other," he says.

But the 27-years-old from Gugulethu didn't give up there. He signed up to study at the Raymond Ackerman Academy of Entrepreneurial Development at the UCT Graduate School of Business to better arm himself for his next attempt at business.

The Academy trains Western Cape youth, aged 18-30 from a socio-economically challenged background. The students undertake a six-month programme that imparts business and life skills and promotes self-development.

Entrepreneurs in South Africa struggle. The environment is difficult for early stage entrepreneurial activity, and the recent recession has just piled on more challenges - illustrated by a 40% fall in the number of start ups in South Africa last year compared to 2008.

According to the latest Global Entrepreneurship Monitor (GEM) study, done by the Centre for Innovation and Entrepreneurship (CIE) at the UCT Graduate School of Business new and existing entrepreneurs are struggling to survive.

South Africa's entrepreneurial activity continues to be hindered by a poor skills base as well as severe environmental limitations including poverty, a lack of active markets and poor access to resources.

Overcoming these challenges is no easy task, but there are solutions; and in some cases the evidence shows that a little help can go a long way. The experiences at the Raymond Ackerman Academy of Entrepreneurial Development, for example, show that many entrepreneurs with some educational and financial support can begin to make some important steps towards their dreams.

From her city offices at Shanduka Black Umbrellas, above a bustling arcade of cafe's and restaurants near Cape Town's city centre, Nontutuzelo Gcuze, also a delegate of the Academy recalls how her desire for business started.

"I am from a rural community in the Eastern Cape - Machibini. I first became aware of the business environment when I started working in retail. I quickly fell in love and wanted to become financially independent through owning my own business," she says.

She takes each day as it comes, using daily what she learned at the Academy, making the best of what she has. Her business, which she shares with a partner, is called Hands-on Cleaning Service which focuses on sanitising computer ware and cash registers, especially in multi use spaces.

"The business is growing slowly and has only been going for three months. Since getting start-up funding in January last year we first spent over a year researching the business and then set off," she says, adding that the funds, R7500, was a good start. She used it to become operational; using it to register her company, pay for uniforms and products, and rent for her office space. Gcuze won the funding for being best entrepreneurial student.

The Raymond Ackerman Academy awards several prizes for students who have performed well during each six-month programme. The best overall student receives a laptop from the Ackerman Family Foundation and the most entrepreneurial student receives the Steve Roberts Valspar Entrepreneurship Award, intended to encourage entrepreneurship as well as give winning entrepreneurs a kick start at business through seed funding.

"We encourage the students to enter their business ideas to the Valspar Award. They have to promote their business and motivate why they think they should win. Those judging look for sound business ideas and unique approaches and award the best entrepreneurial student with some start-up funding, something invaluable and that promotes the follow-through of the student entrepreneurs," says Elli Yiannakaris, Director of the Raymond Ackerman Academy.

Mashiyi won the prize in his year and is already making better progress with his new venture than his last. His new business, his second chance, is on much better footing, even winning a prestigious award. The Mobile Mechanic, was fourth overall at the City of Cape Town Business Plan Competition 2010, and is an innovative system designed for cars to enable car owners to assess any problems with their vehicles via software on a laptop.

The little funding he received from the Academy has gone a long way in getting things rolling. "With funding you need to be wise. I tell the story that often people have a cow that gives little milk but over-milking kills the cow, and then there's nothing left," he says. "So I've been careful to use the money in places that are of the most positive impact."

For Mashiyi, the most frustrating thing for any entrepreneur is finding the money for the operational essentials like transport, internet and cell phone costs. Mashiyi is positive that with his business now at the manufacturing stage he will achieve his dream.

Gcuze, like Mashiyi, is positive that she is on the right path too and their success to date proves that the challenges facing entrepreneurship in South Africa are in no way insurmountable. Small steps today can help create the big business of tomorrow, and failures do nothing but set the next challenges.

Contact Mashiyi on 079 293 0663 and Gcuze on 073 133 1137. For more information on the Raymond Ackerman Academy or for an application form, contact 021 406 1422 or visit www.ackermanacademy.co.za.

Page Created: 15 November 2011

Content provided courtesy of the Raymond Ackerman Academy and the UCT Graduate School of Business.