Entrepreneurship-a greener pasture for young people

Younger people naturally have a longer lifespan to spare, they have enough time to nature and pursue they passion, goals, and ambitions. The path of entrepreneurship is a “greener” one, it is quite contrary to looking for someone to employ you, and it grants you full control of your career. Through entrepreneurship young people can determine their own success.

Although it is quite tricky for young people to get their foot in their ideal career paths, the widened out financial aid of Small and Medium-sized Enterprises (SME) allows them to action their business ideas.

The global drive for economic recovery has placed a huge focus on supporting SMEs as a vehicle for job creation, economic stability and wealth creation. With globalisation creating internationally dispersed supply chains that benefit from easier and more cost effective logistics, and equally easier and more cost effective communications, ensuring that SMEs make the most of these opportunities is a promising area for policymakers to pursue.

The ACCA Global Forum for SMEs has been considering issues within SMEs for some time, in February 2014, the forum cited supply chain finance as one of the most promising tools for financing small businesses around the world, and noted the potential for further innovation in the sector.

According to SME’s, the main reasons for business failure are often cash flow related. Businesses of different magnitudes all need financial stability to operate sustainably.

Why now?

There has been a significant rise in the funding marketplace, the platform where willing lenders meet willing borrowers to close funding has been significantly active. This is a great opportunity for young people to commence and build their own empires, even in economically critical times.

Global uncertainty marks drop in business confidence

The South African economy has recorded its fair share in business confidence declines since the 2008 market global crash. Recently, in the 4th Quarter of 2016, the RMB/BER Business Confidence Index declined to 38 from 42 points. This would be equal to levels last seen in the 1970’s and 2010’s.

 

The latest Global Economic Conditions Survey from ACCA (the Association of Chartered Certified Accountants) and the IMA (the Institute of Management Accountants) point to a similar global business confidence drop in Q4. The findings of the survey highlight businesses and economic forecaster’s sentiment towards 2017 and a new age of uncertainty.

 

CONCERNS, FACTORS

Fall in Government investment; changes in political landscapes and economic isolation are all contributing factors to the decline. The survey of over 4,500 finance professionals and business leaders worldwide has found that while the economic outlook has improved slightly in the US and China over the last quarter, the Eurozone has hit its lowest confidence levels since 2012. In South Africa, business confidence levies are lower than last seen post-2008.

 

44% of respondents expressed concern over falling income due to low levels of government expenditure, with another 43% reporting worsening business confidence.

 

Across the Eurozone, the resignation of Italian Prime Minister Matteo Renzi in December 2016, combined with a series of upcoming national elections, has led to a downbeat mood while UK business confidence fell sharply ahead of Brexit negotiations.

 

 “Current political uncertainty is clearly having an impact on global business confidence. In the US the Trans-Pacific Partnership is unlikely to be ratified while likely restrictions on trade with key markets including China and Mexico are also major factors here. In Europe, uncertainty over the outcome of elections in the Netherlands, France and Germany – which could lead to major policy shifts for regional trade and the future direction of the Eurozone – all contribute to a gloomy outlook going into 2017.”findings Faye Chua, Head of Business Insights at ACCA

 

FUTURE UNCERTAINTY

Despite this and the slowdown in manufacturing worldwide, the global economy may be on course for growth in 2017, supported significantly by China’s growing response to its economic stimulus programme and the US maintaining a partial recovery.

 

In South Africa, there is an overall consensus that the Rands strength could beat 2015 levels. A stronger Rand equates to economic stabilisation, steady inflation, and stronger GDP figures. What South African economists are now looking towards is the level of uncertainty brought on by rapidly changing domestic and international economies, politics and trade figures. However, the State of the National Address  will give clearer guidance locally to the year ahead and market analysts can have more concrete views on how we emerge on international trade pacts.

 

To view the survey visit http://bit.ly/2jtIsxi

 

Fieldwork for the Q4 2016 GECS took place between 24th November and 13th December 2016 and attracted 4,551 responses from ACCA and IMA members around the world, including more than 350 CFOs.

 

References

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Saloshni Govender – Top Achiever: P2

Well done to Saloshni for being our top achiever second time around!

Which ACCA resources did you make use of to prepare for the P2 exam?ACCA_StudentProfiles.jpg

I used the material provided on the ACCA website (past papers, notes etc) as well as other material from research on the internet etc, and also study material I obtain from friends also study through ACCA.

Please share tips on pre-exam nerves…how do you stay calm?

 I keep telling myself before a paper just to take each paper as they come and give my all to the one that I am writing and forget the rest.

For study tips visit http://bit.ly/2nEPxxu

http://bit.ly/2o1QssR

http://bit.ly/2nnhyY3

 

 

 

Digital Darwinism, entrepreneurship and technology

Darwin wrote about natural selection and the need to evolve in order to survive. The same can be said for both digital technology and entrepreneurship. With ongoing technological advances playing a significant part in economic growth, entrepreneurs, if willing to adapt, can benefit significantly from an ever changing digital landscape.

At a recently hosted event on entrepreneurship, ACCA (The Association of Chartered Certified Accountants) along with leading industry panellist raised significant trends into the technology and digital tools that will help entrepreneurs succeed.

Based on the event’s discussion theme; digital technological evolution in business, ACCA used the event as an opportunity to present the report ‘Digital Darwinism: thriving in the face of technology change’. This report focuses on 10 key digital based technology trends that may have direct bearing on business ownership and entrepreneurship:

 

  1. Mobile: Anywhere, anytime access to broadband connectivity from a range of devices, wireless networks, operating systems and applications.
  2. Big data: The massive quantity and variety of structured and unstructured data from internet-connected systems, devices and physical objects.
  3. Artificial intelligence and robotics: The broad range of machines and computer systems that demonstrate limited characteristics of intelligence.
  4. Cyber security: Protection from new forms of cyber risk, attack, crime and terrorism caused by increased reliance on personal and professional digital devices and data.
  5. Educational: Trends and tools that are changing and enhancing educational achievements, developments, techniques and possibilities.
  6. Cloud: Internet-based technology resources – such as software applications, computing power and data storage – provided remotely as a service.
  7. Payment systems: New, evolving and emerging internet-enabled software applications, currencies, payment platforms, devices and services.
  8. Virtual and augmented reality: Technologies that use computer modelling to simulate, overlay and supplement reality and enable people to interact.
  9. Digital service delivery: New technologies used to provide online, interactive, self-service, business processes, software and services.
  10. Social: Technologies that support social interaction and are enabled by communications technology, such as the internet.

CHOOSING THE RIGHT TECHNOLOGY BY UNDERSTANDING YOUR CUSTOMERS

Notwithstanding the merits of the 10 digital trends outlined above, it is important to mention that entrepreneurs should be aware of their market, and choose the right technology for their business. There is no need to embrace all 10 technologies, or to over-engineer digital products, rather be selective and with the help of a clear business plan choose the right technology that can help move your business forward.

Knowing your customer’s needs and preferred technological platforms will help reduce the choice of technology you may need to engage with.

Understanding of your customers, market and your key performance indicators is as important as choosing the right technology that can help your business move forward.” – Zolani Ngange, Chief Executive Officer at NexBrill Capital

For further details on ACCA’s entrepreneurship initiatives and up and coming events, e-mail:  Nomsa.Nkomo@accaglobal.com

Visit http://bit.ly/2nY5cZv to read on ways to deal with technological impacts.

Yolandi Campbell – Top achiever: P4

Meet our ACCA top achievers in the September exam session P4. This rising stars proves that hard work and dedication pay’s off!

What is Yolandi’s motivation?

I believe ACCA provides me with a platform from which I will be able to propel myself, while giving me readily available access to information that will ensure my knowledge remains current and relevant.

acca_studentprofilesWhen preparing for exams, it is more important to prioritise and be comfortable with your choices, realising that you will have to make sacrifices and forgiving yourself for them. At this stage in my life it is more important for me to be a good wife and good employee, while still progressing through my studies.

I remind myself that I chose this path and focus on the rewards at the end of the journey. There are harder things in life than having the privilege to study and better yourself.

Finally my words of encouragement: “Grind while they rest. Study when they party. You’ll live like they dream.” – Grant Cardone

Mahendran Naicker – Top achiever: P5

acca_studentprofile_imageWe sat with Mahendran Naicker and ask a few questions on success, the ACCA qualification and staying motivated:

What do you believe being an ACCA member will do for your career?

Firstly this professional qualification is one of the most internationally  recognised chartered accountancy qualifications. There are different types of accountancy bodies globally but  being an ACCA member will allow me to be associated with an  internationally recognised professional accountancy brand  which I can leverage with providing me with a whole lot more opportunities. I see ACCA as the worlds local accountancy body and a leader in supporting me with the latest technical standards and resources that will keep me at the forefront of my career.

How do you find the time to study effectively while working full time?

Look studying part time is never going to be easy and without challenges but I found ACCA to be geared up for working full time candidates due to their effective and flexibe exam sittings. I always planned in advance, practicing past questions and staying connected with ACCA study forums helps.

How do you stay motivated?

You got to finish what you started. I looked at it as a journey and you got to love what you do otherwise it is not worth the effort.

What words of encouragement do you have for other students?

Keep going, stay humble and do what you love!

ACCA would like to take the opportunity to congratulate Mahendran Naicker on his success as top achiever September 2016.

Understanding Funding

 

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Beyond accessing finance, comes a conglomerate of factors which may affect business’s ability to spend budgets adequately while driving self-sustainability. What makes business complicated is not the ability to execute the service or produce the product, but it is the actual running of the business that seems to offer entrepreneur’s the ultimate survival challenge.

 

ACCA recently hosted the Entrepreneur and Business Success event with South Africa’s biggest start-up players within the entrepreneurial and business funding space. Like many other African markets, entrepreneurs locally, often face the challenge of creating a financial utopia while pushing for growth. The overall purpose of this event was to gauge the importance of planning, funding, growth and risks taking for entrepreneurs entering the South African market.

 

According to Panellist Don Mashele, Head of Regions, Small Enterprise Finance Agency (SEFA), companies that have a keen understanding of risks and policy factors, are generally the businesses that show steady growth patterns and overall financial sustainability.

 

When looking for funding, it is vital for entrepreneurs to use business planning as a crucial factor in building a solid starting foundation. There are instances when funding will be required beyond the start-up phase.  However, in both instances business planning helps identify possible pitfalls and can quickly provide a company with valuable financial information. This will also ensure a proper understanding of the risks and ultimately the rewards the company would venture into.

 

Entrepreneurs need to measure financial growth requirements, before applying for funding. This will ensure long-term survival.” – Panellist Sandiso Ncube, Serial Entrepreneur

 

There is no such thing as hindsight when it comes to building a business. Dealing with failure and overcoming challenges is what makes up the DNA of an entrepreneur. Panellist Jan de Kock, Barclays Africa, points out; “understanding that failure can build a business will help entrepreneurs understand the importance of planning, even when the company is showing slow or little growth. Planning will navigate a business out of rough seas.”

 

ACCA recently released a guide titled “Financial Management and Business Success – A Guide for Entrepreneurs”, unlike other financial literacy guides, this ACCA guide stresses the importance of business planning and the role it plays at every stage in the life of a business. The guide adopts ‘the plan first approach” looking at what entrepreneurs are trying to do with their business first and linking this directly to the financial knowledge they need.

 

To view the guide click here (link: http://bit.ly/2bElL23 )