Hepsy mkungo trialogue conference sab-miller_hm


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Hepsy Mkhungo of SABMiller outlines the company's Kickstart programme at Making CSI Matter 2012.

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Hepsy mkungo trialogue conference sab-miller_hm

  1. 1. SAB KickStartHepsy MkhungoTrialogue: CSI Matters Conference 2012Head Enterprise Development & CommunityPartnerships
  2. 2. Enterprise Development Offerings SAB Foundation SAB Foundation – Tholoana Enterprise Fund SAB KickStart Social Innovation Endeavor Fund Awards • Black South African • Black South African • Black South African • South African – grant must Entrepreneur Profile • Preferred beneficiary: • Business owner 18-35 • An innovator, impeccable be used solely to the benefit women, youth, people with years old ethics, a role model of black South Africa disabilities, and/or people • Must have potential to work potential living in rural areas full-time in the business • Ambitious & wants to grow • Entrepreneurial, energetic, business strong integrity • Has industry experience/ expertise • Works full-time in the business • Business in seed/ early • Business in seed/ early • Businesses at catalytic stage • Social enterprise, with development stage development of their growth innovative product/ service aimed to assist low-income • Business aimed at employing • Post revenue • Max R15m revenue Business Profile women, youth, people with &/or assisting women, youth, people with disabilities &/or • In business (early stage) • At least 6 months in operation disabilities &/or people living in rural areas people living in rural areas • <5 years of operating; <15 • Innovation/ has potential to • Turnover <R1m employees • Scalable/ growth potential • Turnover <R5 mil • Scalable with sustainable competitive advantageFinanceSupport • Grant financing up to • Grant financing up to • Grant financing up to • Grant financing up to R150K R250K R500K R1m • None • BDS – Mentorship • Mentorship • Access to capital marketsSupport Other • BDS – Training • Networking • Networking • Access to capital markets
  3. 3. SAB KickStart - History Competition model: Business Strategic Goal – skills Poverty training, alleviation mentorship Support black and grant South Africans 18 funding – 35 yrs. to start and grow Launched in businesses 1995
  4. 4. KickStart Beneficiary ProfileAverage Size of Business Business Life cycle(average Employees Turnover Fixeds) – less Assets Size thanMedium 136 R 25 m R 7.7 mSmall 50 R 8.8 m R 2.5 mVery 14 R2.5 m R 0.75 msmallMicro 5 R 0.15 m R0.10 m Idea Start- Growth Maturity Decline up Demographics Industry or Sector ABC W - KickStart Focus (current) 4
  5. 5. SAB KickStart Impact Assessment Highlights - 2009 Interesting Facts22 300 number of youth benefited from Kickstart since 19953 200 number of businesses started through KickStart6.7 average of businesses started through SAB KickStart21 000 approximate total number of jobs created through Kickstart64 million cash investment by SAB in youth businesses to date 2009 Study: Independent SAB KickStart Review Summary of Findings (2001 – 2007) 5
  6. 6. Case Study: Indibano Group • Trevor Muller (Cape Town) Turnover (millions) • Before KickStart R 35.0 • Entered a family run catering business • Turnover of R200 k R 30.0 • 10 years later • Top 3 catering companies R 25.0 in Cape Town • R30 million turnover R 20.0 • 140 employees Turnover Employees R 15.0 (millions)160140120 R 10.0100 80 60 40 R 5.0 20 Employees 0 R 0.0 Before After (10Yrs)
  7. 7. KickStart Reengineering Journey Maintain success in a changing environment (what do we believe we need to change to drive job creation) Quick Wins Medium-Term Wins Long-Term Wins FY12 FY13 FY14 FY15 FY16 ENTERPRISE DEVELOPMENT:KICKSTART STRATEGY Poverty Job Creation Alleviation High impact“Quantity driven and non- , contracts “Cutting edge, impactful and responsive to changes” •innovative document mgt Excellent programme” • Leading SLAs, KPIs, KPAs • Strategically driven People / Culture • Unchanged training/ Continuous improvement mentorship resources • Low budget mgt skills Thought Leadership & Benchmark• Misaligned expertise / fit to programme objectives Cutting edge Marketing & Digital presence
  8. 8. 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
  9. 9. Lessons we extracted from our experienceLesson # 2 (Enhance)…the selection, training, grant funding and mentorship deliverymethodology has allowed a level of success… but if we are to offer cuttingedge, impactful and innovation programme… step change to drive job creation;…re-define the ideal Kickstart candidate rather than focus on thebusiness idea alone…the training must adopt best international business school practicesand core modules and incorporate soft skills to ensure… practical,engaging and immersive experience…grant funding must be needs based… a combination of grants andworking capital…mentorship to be housed within a BDS programme… long term support
  10. 10. Lessons we extracted from our experienceLesson # 3 (Communication)…SAB is a powerful brand… with the ability to propel small businessesthrough impactful initiatives… Kickstart is a perfect platform to build aculture of entrepreneurship…implement relevant communication strategies, target suitableplatforms…embrace digital communication (unlock value)…use the power of a comprehensive portfolio to drive thoughtleadership in the Enterprise Development industry (practical application)… continue to use SABMiller global companies to provide access tointernational markets for our KickStarters……launch supplier diversity programme… additional access to market…continuous measurement, review and re-engineer to suit changinglandscape
  11. 11. Digital presence www.sabkickstart.co.za Twitter - @sab_kickstart SAB Facebook page