Sharing Space makes Work easier for Entrepreneurs in Africa

Modupe Macaulay, founder of CapitalSquare

“Lagos is a difficult place to do business. There’s the high cost of rent and poor infrastructure – unreliable electricity and unreliable internet connectivity are some of the major issues affecting modern businesses in Lagos today. And, with that, there are still a lot of people going into entrepreneurship because of the high rate of unemployment. There is clearly the need for an easier and more affordable way to do business.”
 
This is why Modupe Macaulay believes there are opportunities for co-working spaces in Nigeria’s commercial hub, and towards the end of last year she officially opened one, CapitalSquare. She had been inspired by the concept a few years earlier when she discovered that one of her heroes, Maria Popova, a writer living in New York and founder of the blog Brain Pickings, had used a co-working space.

“It just seemed like an amazing idea to me; the ability to share a workspace with people doing interesting and not necessarily related things. There would be so many opportunities to learn, to work together, to come up with new ideas, to start great things… At that point, it was the community aspect that caught my attention, and I thought it would be great to have something like that in Lagos,” Macaulay told How we made it in Africa. “So I wrote it down as something I’d like to do someday and forgot about it.”

When Macaulay returned to Lagos after finishing her master’s in the UK in September 2012, she struggled to find a job, and by 2013 she was still unemployed. At that time she was looking to start a business with a friend and needed an affordable and professional place from which to work, which was also hard to come by. Macaulay saw the potential for a shared working space in Lagos, and so the idea for CapitalSquare was born.

It’s all about flexibility
Before coming up with the membership model for CapitalSquare, Macaulay did a lot of research on co-working spaces around the world and realised the membership options needed to be flexible in order to succeed.

Today, CapitalSquare has four membership levels that address the needs of those who have a day job and need another place to work part-time or on weekends, to those who need to use the space full-time. The fees range from US$87-$202 a month and include unlimited high speed internet, uninterrupted power supply and extras like printing, meeting rooms, mail handling, virtual phone numbers, office supplies and tea and coffee.

There is also a $7 full day pass, and a virtual membership option where members don’t physically use the space but can make use of a business address, virtual phone number and mail handling.

According to Macaulay, sharing office infrastructure is not only cheaper for entrepreneurs, but also means they spend less time paying electricity and other administrative bills, and more time on developing their businesses.

“Another huge plus, which really appeals to me, is the free networking opportunity that the entrepreneur gets from working alongside other entrepreneurs,” she continued. “Co-working spaces are a breeding ground for innovation, simply because they are full of people with ideas, who are crazy enough to try to make them happen.”

The pros and cons of being an entrepreneur
Macaulay was able to get most of the startup capital for CapitalSquare from her family after much time studying the market and running the numbers.

“You have to prove that your idea will work because nobody, not even family, wants to put their hard-earned money into something that isn’t worth it.”

She added that the best part of being an entrepreneur is having control over her life, despite the fact that all hours are office hours for the self-employed. However, Macaulay noted that the negative side is not having a regular, guilt-free paycheck.

“I say ‘guilt-free’ because it’s hard not to feel guilty when you’re paying yourself and the business is having a bad month. And yes, you do have to pay yourself (even if it’s something small), especially if you don’t have a day job.”

Source: How We Made It in Africa

Five New Year’s Resolutions for SMEs

2014 brings with it new challenges and opportunities for business owners, all of which need to be incorporated into a business’s plans going forward. This is according to Gerrie van Biljon, executive director of Business Partners Limited, who says business owners should make use of the first few weeks of the New Year to reflect on what worked well in 2013 and what needs to be improved or changed for the year ahead.

He says proactive planning, with clear timelines, will positively benefit the long-term development of a business. “Business owners who avoid planning ahead may increase their exposure to risks during the upcoming year.

“Implementing changes early in the year will ensure that the business is prepared for the period ahead and will assist in evaluating whether it is effectively prepared for upcoming opportunities or possible challenges within the landscape that it operates in.”

Van Biljon shares five New Year’s resolutions that small and medium enterprise (SME) owners should consider when planning for 2014:

1. Managing cash flow as effectively as possible
Cash flow is the life blood of any business and effectively managing this aspect of the business will allow more flexibility when there is a need to address emerging dilemmas, such as late payment, or when critical decisions need to be made, such as having the capital available to purchase additional stock in order to satisfy client demand. Regularly updating a budget and a statement of cash flow will enable business owners to keep an eye on where money is spent, and allow them to cut back where applicable.

2. Create and maintain valuable partnerships
A new year provides businesses with the opportunity to establish new and beneficial partnerships, as well as cement any present valued partnerships. Building relationships with the right individuals and businesses is key to the success of any business, due to the long lasting and powerful effect a favourable relationship can bring about. In order to make a successful partnership thrive, establish a win-win solution that is fair to both parties.

3. Attending networking events
Building a successful business takes a lot of time and drive, so it’s advisable for business owners to surround themselves with individuals who share a similar ambition. As an entrepreneur, networking is crucial as it provides the opportunity to build those much needed business contacts and relationships.

4. Continuously seek mentorship
Seeking regular advice and guidance from a mentor can prove invaluable for business growth, as well as personal development. It is simply impossible to know everything about running a business as everyone has their individual strengths, and a fresh pair of eyes can identify possible gaps in business practices and assist with strategies which the business has not yet considered. Not only will a mentor enable a business to focus on its objectives more effectively, but it can also boost morale. When selecting an appropriately experienced business mentor, seek a mentor who has experience in the skills you may lack and ensure the terms of the mentorship – time, costs and outcomes – are as clear as possible in order to ensure that the match works effectively.

5. Establish a successful online presence
Having a successful online presence and strategy is becoming increasingly important for SMEs due to the growing number of consumers making use of online tools to find suppliers and solutions for their needs. The increasing number of online users and growing popularity of online mediums such as a company’s website, Twitter, Facebook and LinkedIn have created many opportunities for SMEs to directly interact with both their current and potential customers. These tools have also dramatically changed the way brands interact with their target audience. It is therefore key that SMEs utilise these platforms effectively in order to maximise the exposure and awareness for their business. Having a constant stream of engaging content will ensure that the business maintains a favourable online presence.

Van Biljon says the New Year creates an opportunity for businesses to better themselves and their offerings. “Like many New Year’s resolutions, the list may seem daunting. However all business owners require is a shift in mindset and most likely a change in habit. Allocating time for each goal and a realistic date of conclusion will assist you in achieving your New Year’s resolutions,” concludes van Biljon.

Source: How We Made It in Africa

4 Startup Tips for Solo Entrepreneurs

Microsoft the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Going out on your own should never mean going it alone. This is perhaps the most valuable advice that can be given to startup entrepreneurs.

Entrepreneurship, in any type of business endeavor, must start with the recognition that success comes to managers who leverage all resources around them extremely well.  It's about maneuvering something small into something greater. And it's about efficiency. Think of the arithmetic as: 1 + 1 equaling 5, 10, 15, or more in return.

Practically speaking, your time should focus on activities that produce the greatest payoff in terms of new customers, revenues, and profitability. While this is possible, it requires discipline and making the right connections.

So how should solo entrepreneurs make better, time-saving choices? Here are four strategies to help solo entrepreneurs get the most out of each business-building day.

1. Network your way to fast help.

It's not uncommon for startup entrepreneurs, especially home-based entrepreneurs, to work reclusively in front of their computers. While comfortable, it's not effective. 

Solo entrepreneurs who create prosperous businesses understand that while they won't have the best answer to every question, someone in their network of colleagues, former managers and mentors, contractors, friends and family will.  This is how you can create a virtual (and non-paid) "staff" of sales, strategic planning, marketing, and IT experts. Ask more experienced people: "What is the fastest, cheapest route from A to B?"

If you want to cultivate a wider network, make a list of the areas of expertise that can best complement your business development initiatives. The next step is to call a friendly colleague or two for referrals. It's that simple. Of course, consider how you can return the favor to people who offer their free assistance. Is there a contact or service that you can offer to help them?  

     

2. Put a priority on revenue generation.

Founding entrepreneurs have to spend the majority of their time looking for customers. This doesn't mean creating brochures and newsletters; it means getting on the phone and pursuing referrals.

When a young company is found in jeopardy, it is often found that the entrepreneur was working long hours.

To bring discipline to a work week, entrepreneurs are encouraged to set aside at least two or three full days (ideally, the same days each week) for active customer solicitation. Nothing else is more important. Opening mail, editing Web site copy, and all other administrative and marketing chores should take up no more than one business day's time. Entrepreneurs should try to track the number of weekly customer solicitations they make. These entrepreneurs invariably find that increased weekly solicitation activity leads to increased new customer activity.  Try it-it's fun, and it works!

3. Manage your overload wisely.

Once your operating priorities favour customer solicitation and revenue generation, there will be times when you will simply have too much work. This problem leads entrepreneurs to sometimes overreact and hire costly staff for customer service work, rather than outsource lower-paid administrative tasks. Even if the entrepreneur "doesn't mind doing" invoicing, bill paying, market research, and so on, the business will benefit more when the founder is freed up to do activities focusing on customers and cash flow.  

       

4. Find a motivating coach. 

It's true that many entrepreneurs start their businesses out of a desire to be their own boss. Yet it has been found to be worthwhile for solo entrepreneurs to identify someone to serve as a coach.  Entrepreneurs should consider meeting with a coach - who could be a friend, respected business colleague or retired business executive - at least once a quarter.

Entrepreneurs are doers. They are not afraid of taking risks, working hard, and testing their treasured ideas in the marketplace. The key to survival, of course, is securing the support of a growing base of advisers and customers as fast as possible.

Source: Microsoft Corporation. 

China strengthens Africa ties with $20 bln in loans

BEIJING - Chinese President Hu Jintao on Thursday offered $20 billion in loans to African countries over the next three years, boosting a relationship that has been criticised by the West and given Beijing growing access to the resource-rich continent.

The loans offered were double the amount China pledged for the previous three-year period in 2009 and is the latest in a string of aid and credit provided to Africa's many poverty-stricken nations.

The pledge is likely to boost China's good relations with Africa, a supplier of oil and raw materials like copper and uranium to the world's most populous country and second-largest economy.

But the loans could add to discomfort in the West, which criticises China for overlooking human rights abuses in its business dealings with Africa, especially in Beijing's desire to feed its booming resource-hungry economy.

Hu brushed off such concerns in his speech at the Great Hall of the People, attended by leaders including South African President Jacob Zuma and Equatorial Guinea's Teodoro Obiang Nguema, a man widely condemned by rights groups as one of the world's most corrupt leaders.

"China wholeheartedly and sincerely supports African countries to choose their own development path, and will wholeheartedly and sincerely support them to raise their development ability," Hu said.

China will "continue to steadfastly stand together with the African people, and will forever be a good friend, a good partner and a good brother", he added at the summit held every three years since 2000.

Hu also pledged to "continue to expand aid to Africa, so that the benefits of development can be realised by the African people". He did not provide an amount.

Hu said the new loans would support infrastructure, agriculture, manufacturing and development of small and medium-sized businesses in Africa.

"CHEQUE BOOK" APPROACH

Critics say China supports African governments with dubious human rights records as a means to get access to resources.

The EU has rejected what they call China's "cheque book" approach to doing business with Africa, saying it would continue to demand good governance and the transparent use of funds from its trading partners.

Such criticism draws rebukes from China that the West still views Africa as though it were a colony. Many African countries say they appreciate China's no-strings approach to aid.

"Africa's past economic experience with Europe dictates a need to be cautious when entering into partnerships with other countries," Zuma told the forum.

"We are particularly pleased that in our relationship with China we are equals and that agreements entered into are for mutual gain," Zuma added.

"We certainly are convinced that China's intention is different to that of Europe, which to date continues to intend to influence African countries for their sole benefit."

China's friendship with Africa dates back to the 1950s, when Beijing backed liberation movements in the continent fighting to throw off Western colonial rule.

GROWING TRADE LINKS

Chinese state-owned firms in Africa also face criticism for using imported labour to build government-financed projects like roads and hospitals, while pumping out raw resources and processing them in China, leaving little for local economies.

"Certainly quite a number of us are thinking we need to move into more value addition," South African's Trade and Industry Minister Rob Davies told Reuters.

"We need to export mineral products in a more processed form ... We need to bite this bullet very seriously."

Trade has jumped in the past decade, driven by Chinese hunger for resources to power its economic boom and African demand for cheap Chinese products.

China's trade with Africa reached $166.3 billion in 2011, according to Chinese statistics. In the past decade, African exports to China rose to $93.2 billion from $5.6 billion.

Industrial and Commercial Bank of China 601398.SS, for example, the world's most valuable lender, has invested more than $7 billion in various projects across the continent.

Source: Reuters

"No Time to Think about Challenges" says Top African Entrepreneur

Njeri Rionge is one of east Africa’s few women pioneer investors in the IT sector having co-founded the region’s first mass market internet service provider Wananchi Online in 1999.

Njeri Rionge

The self described serial entrepreneur ventured into business at the age of 19 selling yogurt at schools. Rionge went on to import and sell clothes, and ran many other businesses. Then she founded Wananchi Online (now called Wananchi Group, a leading provider of pay television, broadband internet and VoIP services).

Having risen from what she calls ‘ground zero’ to building a company of the magnitude of Wananchi, Rionge is now working with SMEs and entrepreneurs to grow indigenous African businesses that can be scaled across the continent.

“I am passionate about entrepreneurship, about people, about business. I am very interested to see growth in African businesses. A lot of companies in Africa are largely family owned and are also more likely to be trading without creating capacity for scaling into larger organisations. I think a time has come for Africa to pay attention to the opportunity of changing the landscape of how business is done,” says Rionge.

Her love for Africa is almost infectious. She explains that the continent is experiencing unprecedented growth with seven out of 10 of the world’s fastest growing economies being in Africa.

Rionge today runs several companies, including Ignite Consulting, a business consultancy; Ignite Lifestyle, a health care consultancy; and Insite, a digital marketing firm.

In five years she expects to see more Kenyan SMEs to begin to grow within the east African region. “Today we are seeing a lot of the banks scaling, we need to see other indigenous companies scaling.”

Rionge explains that to achieve this, SMEs need to change the way they do business. SMEs should create succession planning, transfer skills, train, develop organisations with structures and enhance the value proposition when it comes to work ethics, governance and integrity in the work place.

“We know that the SME sector is what will create jobs. There has to be a whole new way of financing these companies either through angel investors, impact investments, or venture capital firms. Banks need to change the metrics on how they lend to SMEs and reduce their interest rates,” she says.

Rionge recently launched the Business Lounge, an incubator that offers workspace and networkingopportunities to Nairobi’s entrepreneurs and to corporations establishing a Kenyan footprint. The Business Lounge seeks to nurture and encourage entrepreneurship.

She also runs the brand Njeri Rionge

“My brand is a motivational speaking brand. It is really about business and creating an opportunity that is global for me. I want to be able to play in a level playing field that is not confined to Kenya,” says Rionge.

And she is not done just yet.

“You should expect a few more things from me. If I had to do one thing and do it for the rest of my life, that would be rather boring.”

Having succeeded in an industry where all over the world women are still a minority, Rionge argues that being a woman has not made things more difficult or easier.

“In my experience women and men suffer the same experience; the only difference is that women have more responsibilities. As a player in the business world, you are still expected to be a mother, wife and homemaker. That increases the number of things you are responsible for. Men in our African culture, all they do is business and everything else at home is taken care of,” explains Rionge.

She cannot remember receiving her first big cheque, but recalls one feat.

“We raised US$500,000 in 1999 for Wananchi from an angel investor. It was a no-brainer, we needed it and we got it,” she says.

Well that’s a no-brainer a lot of tech start-ups wouldn’t mind.

Rionge’s way of dealing with challenges is converting them to opportunities.

“I have no time to think about challenges. Even when they come I try to solve them so quickly and get over with it. Because I convert them, they stop being challenges. I have been at many points where I knew the cookie was about to crumble, but my focus was [that] it cannot crumble, therefore I focus on the upward movement,” says Rionge.

Source: How We Made It in Africa

The African Continent Must Move Forward

Edward Tuttor

STATEMENT OF MENSAH SARBAH JUNIOR COMMON ROOM, UNIVERSITY OF GHANA, LEGON ON THE COMMERMORATION OF THE AFRICAN UNION DAY, 25TH MAY.

The African continent which is the most blessed continent in terms of Natural resources and labor force still in the 21st Century wallows in the deep valleys of oppression, poverty, inadequate cohesion and mammoth mismanagement of resources. Our continent bearing due allegiance to the heroic struggles waged by our ancestors for political independence, human dignity and economic emancipation cannot continue to worship our history and be satisfied with our predicament, rather history is meant to empower the current generation to rise and shape our future.

The continent has evolved through turbulent and pleasant times featured by diverse degrees of challenges that befell each generation, but our generation of Africans is faced with a trinity of challenges. These are Leadership, Management of resources and poor avant-gardism.

The highest political structure of the continent; the African Union which is supposed to direct the affairs of the continent cohesively is losing control of its modus operandi. The cardinal purpose for the establishment of the African Union which is to take up the multifaceted challenges that confront the continent and its indigenes in the light of the social, economic and political changes taking place in the world has been defeated. This is because for almost five decades after the existence of the African Union the continent and its indigenes are poor and our economies are being dominated by aliens.
 
It’s conspicuous that the most pressing problem facing the continent is Leadership. The ambiance of political leaders in certain parts of the continent has been geared towards greed, lack of vision and adverse use of political power. Africa needs leadership that will serve as a beacon of hope for the African populace, Leadership that will serve on the platter of pure passion and not to pursue personal aggrandizement. Africa also needs Leadership that will be a unifying instrument and not a divisive one. Finally our continent needs leadership that will create an enabling environment for citizens to contribute immensely to national development and not leadership that will offer a bonanza of fear and intimidation.
 
Another problem of the African continent which is incompatible with progress is poor management of natural resources. The African continent for far too long has been drenched in the deep seas of abysmal management and astronomical corruption. Leadership of our Nations lacks the acumen to effectively manage our resources to rake in lots of funds for development. The abundance of natural resources vested in our lands has not met the best of management and so our exports do not attract the best of deals on the international market.
We Vikings and Okpo-mates believe that the third problem bedeviling Africans is the lack of avant-gardism. The African Economies will be improved only when we are creative to produce goods and services that will be of use to the world. The AU recognizes the punching power of creativity through science and Technology. Article 3 of the AU Act, objective (l) states that –“the African Union shall advance the development of the continent by promoting research in all fields in particular science and Technology”. It’s a naked fact that development cannot be decoupled from scientific research and creativity. The modicum level science and technology makes it difficult to tap our natural resources like oil, gold and other minerals. This culminates in foreign businesses coming in to tap our resources, give us peanut revenue and repatriate the lions share to their countries. The low level of African leader’s interest in advancing research in all fields of human endeavor will see our economies the same way they are and marking time.
 
It’s immeasurably astonishing when African Universities like the University of Ghana, University of Ibadan inter alia, who have lots of natural science oriented professors but the researches that will change our lives are not forthcoming. Our question is where are our Medicine Professors, the Bio chemistry professors, the agricultural professors and other scholars who have the Knowledge and we are not seeing any ”innovations” from them as we see from foreign professors.
 
Another issue that we will like to talk about is the attitude of the African Union towards research. How the Union does secure funds for research, and how does the Union makes sure that member countries make use of graduate education which is all about research?
We the Students of Mensah Sarbah Hall, University of Ghana is therefore calling on the African Union:

• To better coordinate the affairs of Member countries to crescendo the bond of Unity and Solidarity which are imperatives to develop our continent.

• To promote science and technology by securing funds for research. If possible establish a fund for research to facilitate the research. The Union should make sure all member countries do the same and make use of graduate education for national development.


• The Union needs to expedite action on the youth of Africa. The youth needs an ideological reinforcement geared towards the changing of our continent which can only be realized through hard work and avant-gardism.

• To wage a campaign driven towards rural development in African. The Union should make sure that member countries abrogate the mentality that rural dwellers are politically and economically disenfranchised so they don’t have to see development. Paying attention to the rural areas will boost our economies.


Thank you very much.


Signed:
Edward Tuttor
JCR President- Mensah Sarbah Hall, University of Ghana.

Ghanaian businesses to be showcased at the 2012 Olympics

The African and Caribbean Chamber of Commerce and Enterprise (ACCCE) based in London is to showcase some Ghanaian businesses and industries at the 2012 Olympics Games.

The programme, dubbed “The African and Caribbean Business Experience” would be organized in collaboration with the Ghana Chamber of Commerce and Industries.

Speaking at the programmes on Wednesday, Madam Em Ekong, who is the Company’s Secretary, said the Olympics would present a great opportunity for businesses because it is regarded as the world’s single largest networking experience.

“Timed to coincide with and capitalize on the Olympics, the African and Caribbean 2012 Business Expo would present a once in a lifetime opportunity to showcase African and Caribbean business opportunities”.

She said the programme would also help connect Africans, Caribbean, and United Kingdom and Diaspora businesses to collaborate in London.

Madam Kong said the London Olympics would serve as a great platform for business networking since it would attract an estimated 280 million TV viewers, over 250 global Chief Executive Officers, 160 Heads of States and over 35,000 journalists.

“This programme would change the perception people have about Africa and help us tell the true story of Africa and its businesses,” she said and added the programme would be a mixture of seminars, fairs, workshops, networking and meetings with business tycoons.

She said only businesses which are duly registered and are members of the Ghana Chamber of Commerce and Industries would be selected to participate.

“We should all join to show the world that African businesses have come of ages,” she said.

Source: Ghana News Agency