Sugar value-chain task team has been established to address the challenges facing the industry

A sugar stakeholders meeting that was held at the Department of Trade and Industry’s (the dti) Sunnyside Campus in Pretoria, to discuss the imminent challenges faced by the Sugar Industry, has resolved to establish a Sugar Value-Chain Task Team. The Task Team is between government and the private sector and composed of representatives from Beverage Industry, Retailers, South African Sugar Association (Sasa), small holder farmers, small manufacturers and the Industrial Development Cooperation. The aim of the task team is to seek rapid solutions to the challenges facing the industry focusing on short, medium to long term plans.  The meeting was co-chaired by the Minister of Trade and Industry, Dr Rob Davies and the Minister of Economic Development, Ebrahim Patel.   The first meeting of the Task Team will be held on Wednesday, 30 May 2018. It is expected that joint recommendations from the Task Team will be submitted to the Ministers concerned. The was a view that through collaboration between Government and Private Sector some better solutions in terms of inclusive growth, transformation, competitiveness and sustainability of the industry can be attained   According to the report from SASA Chairman, Mr. Suresh Naidoo, the biggest threat to the industry has been the sustained increase of deep sea sugar imports, peaking at just around 500 000 tons in 2017/18 season. The effect is that this imports displace locally produced sugar into the depressed global sugar market.   The South African Farmers Development Association (Safda) stated that the prices for the sugar cane have declined to such an extent that some growers have received negative statements at the end of the season and in fact owe to the millers.   Safda is of the view that local producers cannot compete against subsidised foreign countries and the sugar producing countries around the world offer their sugar industry a range of policy support measures to protect them against distorted world market.    The Beverage Industry made proposals regarding proposed interventions in support of small holder farmers in the sugar industry and also how to improve productivity in the sugar value chain.   Sugar is a strategic industry in South Africa, contributing an estimated R14-billion to the gross domestic product. The industry employs 85,000 people directly, and indirectly provides work for a further 350,000 people in food processing and other industries.   Issued jointly by the Departments of Economic Development, Forestry & Fisheries and Trade & Industry   Enquiries: Sidwell Medupe-Departmental Spokesperson Tel: (012) 394 1650 Mobile: 079 492 1774 E-mail: MSMedupe@thedti.gov.za Follow us on Twitter: @the_dti

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The Northern Business Review is a business community newspaper that provides a platform for businesses to market their products and services, as well as build their brand, but equally important the publication provides information, advice and topics of interest, including business, entrepreneurial, economic reviews and simple ideas to grow your business. The publication has a primary objective to “uniquely” represent businesses to a wide audience across the community as well as provide a media platform of business articles and information that affect, influence and uplift the business environment within our defined geographical and cultural community.

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African Bank appoints Non Executive Directors

The board of African Bank Holdings Ltd today announces the appointment of Mr Brian Riley and Ms Happy Ralinala as non-executive directors of the Bank and its holding company, African Bank Holdings Limited (ABH).

Brian was Chief Executive Officer designate of the old Bank during curatorship and CEO of African Bank when the restructured Group and new bank commenced business on 4 April 2016.  He stepped down as CEO on 31 March 2018.

During his three year tenure, Brian established the Group, refocused and stabilised the Bank and its related operations, and oversaw the establishment of the strategic platform on which the Group is moving forward.

Happy has significant experience in the financial services and banking industries.

She is the National President of the Businesswomen’s Association of South Africa, a non-executive director of the Small Enterprise Finance Agency SOC Limited (SEFA) and a member of the China Europe International Business School (CEIBS)Africa International Advisory Board.

Commenting on the appointments, Louis von Zeuner, chairman of the Group stated; “the Board welcomes the appointment of Brian and Happy. Brian’s considerable experience as seasoned banker and Happy’s wide ranging business and banking experience will complement the skills set of the Bank and ABH boards”.

About Us

The Northern Business Review is a business community newspaper that provides a platform for businesses to market their products and services, as well as build their brand, but equally important the publication provides information, advice and topics of interest, including business, entrepreneurial, economic reviews and simple ideas to grow your business. The publication has a primary objective to “uniquely” represent businesses to a wide audience across the community as well as provide a media platform of business articles and information that affect, influence and uplift the business environment within our defined geographical and cultural community.

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President Ramaphosa appoints Deputy President Mabuza as Special Envoy to Russia

President Cyril Ramaphosa has appointed Deputy President David Mabuza as his Special Envoy to the Russian Federation, where he will, among other things, meet with President Vladimir Putin in Russia. The Deputy President will therefore meet President Putin in Moscow tomorrow, 15 May 2018, to amongst others, convey President Ramaphosa’s message of congratulation to President Putin on his re-election in March and his subsequent inauguration on 7 May 2018 as President of the Russian Federation. President Ramaphosa looks forward to further strengthening the already existing political, economic and trade ties between South Africa and Russia. These relations are underpinned by the common values the two countries share with regard to respect for the rule of law in international relations, multilateralism, the central role of the United Nations in global governance, the primary role of the United Nations Security Council in the maintenance of global peace and security, the development of bilateral relations on the basis of equality, reciprocity, mutual benefit and respect for sovereignty and territorial integrity of states. The President will host his Russian counterpart as well as other Heads of State of the Brazil Russia India China South Africa (BRICS) bloc of nations at the forthcoming BRICS Summit in South Africa from 25-27 July 2018. Media enquiries: Khusela Diko, Spokesperson to the President on 072 854 5707 Issued by: The Presidency Pretoria

About Us

The Northern Business Review is a business community newspaper that provides a platform for businesses to market their products and services, as well as build their brand, but equally important the publication provides information, advice and topics of interest, including business, entrepreneurial, economic reviews and simple ideas to grow your business. The publication has a primary objective to “uniquely” represent businesses to a wide audience across the community as well as provide a media platform of business articles and information that affect, influence and uplift the business environment within our defined geographical and cultural community.

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The dti to Promote local Agro-processing products and services in China

The Department of Trade and Industry (the dti) will lead a delegation of twenty-three local companies from the agro-processing sector to Shanghai, China to promote local products and services at the annual SIAL China International Trade Fair for Food that will take place from 16-18 May 2018. The Minister of Trade and Industry, Dr Rob Davies says that the SIAL China International Trade Fair for Food is the largest Asian food fair and offers South African companies keen on promoting their products and services in foreign markets with the best platform to boosting their visibility in the region. “China ranks as the largest consumer of food and beverages with an estimated value of over one trillion Euros. It is projected to grow rapidly over the next two-decades. The rising levels of Chinese disposable income, increases in retail sales of consumer goods and remarkable growth for South African products such as wines puts us in a unique position to make inroads into this lucrative market,” says Davies. Davies further adds that companies showcasing at SIAL will be in a position to establish contact with food manufacturers, distributors, importers, wholesalers and retailers, as well as representatives of institutional and commercial catering companies. “SIAL China will offer our businesspeople with a unique opportunity to meeting market leaders of the food, beverage and hospitality industry in China, where they will establish new contacts and identify suppliers and business partners. The accompanying conference will also cover knowledge and information exchange between industry experts on current issues, trends and future prospects,” he said. SIAL China is a leading platform for international producers and manufacturers of food products, wines, spirits and food service equipment. Enquiries: Sidwell Medupe-Departmental Spokesperson Tel: (012) 394 1650 Mobile: 079 492 1774 E-mail: MSMedupe@thedti.gov.za Issued by: The Department of Trade and Industry Follow us on Twitter: @the_dti

About Us

The Northern Business Review is a business community newspaper that provides a platform for businesses to market their products and services, as well as build their brand, but equally important the publication provides information, advice and topics of interest, including business, entrepreneurial, economic reviews and simple ideas to grow your business. The publication has a primary objective to “uniquely” represent businesses to a wide audience across the community as well as provide a media platform of business articles and information that affect, influence and uplift the business environment within our defined geographical and cultural community.

@NsabasiNBR

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Cash flow an issue? 5 Top tips to keep the cash flowing

By Magnus Nmonwu (https://goo.gl/xYCREh), Regional Director for Sage (www.Sage.com/africa) in West Africa
LAGOS, Nigeria, March 22, 2018/ — Cash flow problems—more money going out of the business than is coming in— are among the most significant reasons that Nigerian companies go out of business. Cash flow isn’t simply about sales or profits—it’s also about your business expenditure and your ability to collect money owing to you. It is possible to have a good profit margin or experience great revenue growth, yet run into cash flow problems. For example, you will not be able to pay your rent on time or afford to buy stock because you’re waiting for customers who owe you large amounts of money to pay. Or your pricing might be too low for your overheads. Here are some ways to take control of your cash flow: 1. Monitor your cash flow Managing your cash flow starts with understanding it better. Look closely at the transactions in your business to understand your monthly income and expenses. What are your major costs each month—rent, salaries, stock, electricity, taxes and so on—and when do you pay them? How quickly are your customers paying you? Rather than using an Excel spreadsheet or your bank statements to track cash flow, consider investing in an accounting solution. A good software package will allow you to generate cash flow statements at a push of a button, where you can see cash flow into the business (customer payments, supplier refunds, tax refunds and so on) and out of the business (expenses and payments). You’ll know that you have an accurate and up-to-date view of your cash position. 2. Keep a cash flow forecast Generate a cash flow forecast and set targets for the next six to 12 months. Again, an automated software solution will enable you to generate a cash flow forecast. It should allow you to manually tweak parameters and numbers to cater for anticipated changes such as seasonal variations in sales or annual supplier price increases. This will enable you to make predictions about the gap between your income and expenses and, if appropriate, take corrective action. 3. Keep on top of billing Send out invoices promptly and be quick to chase overdue bills. It’s also worth setting out clear payment terms with suppliers from the start of doing business with them. Get to know your customer payment dates and don’t ignore irregularities or delays – a poor paying customer might be about to go out of business. Knowing when you’re due to be paid will help you keep on top of your cash flow. 4. Stay friendly with lenders Many businesses need a cash boost from a bank or lender every now and again, particularly when they’re starting out, and might need credit or an overdraft to get up and running. Stay on good terms with them and keep them informed of any unforeseen outgoings or changes in forecasts. By developing a good relationship, based on trust, with banks and lenders, they’ll be more likely to treat you favourably should your business need future financial assistance. 5. Tighten up on your outgoing payments Assess the frequency with which you pay suppliers, tax bills, utilities and so on – is it possible to pay in instalments or make terms more flexible? Use your powers of negotiation to strike deals that are favourable to your business. Also, check on all those little things you spend money on that can add up, with a view to identifying easy cost-saving opportunities. Closing words By keeping on top of your cash flow you’ll be able to deal with problems quickly and efficiently. If worried, talk to an accountant, investor or business mentor. The right accounting software can give you a bird’s-eye view of your business and help you stay on top of everything accounts related. It will help you manage your cash flow easily and effectively, ensuring your business is kept in the best possible financial position, before it becomes a problem. By Magnus Nmonwu (https://goo.gl/xYCREh), Regional Director for Sage (www.Sage.com/africa) in West Africa Distributed by APO Group on behalf of Sage. View multimedia content For media queries: Thuli Lamani Tel: +27 (0)11 803 0030 Mobile: +27 (0)83 716 2572 ThuliL@IdeaEngineers.co.za Del-Mari Roberts Tel:  +27 (0)11 803 0030 Mobile: +27 (0)72 5958 053 DelMari@IdeaEngineers.co.za Idea Engineers (PR agency for Sage)

About Us

The Northern Business Review is a business community newspaper that provides a platform for businesses to market their products and services, as well as build their brand, but equally important the publication provides information, advice and topics of interest, including business, entrepreneurial, economic reviews and simple ideas to grow your business. The publication has a primary objective to “uniquely” represent businesses to a wide audience across the community as well as provide a media platform of business articles and information that affect, influence and uplift the business environment within our defined geographical and cultural community.

@NsabasiNBR

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Squeezing generic players on pricing could result in increased medicine shortages

While big pharmaceutical companies continue to stress the need to pay for innovation amid calls for the cost of originator products to be lowered, the generic industry is starting to find its own voice against increasing demands to drop prices that are already low.   In the past decade, generic competition allowed millions of patients access to medicines for key therapeutic areas, however the sustainability of the industry could be threatened by policies that exclusively focus on reducing prices thereby increasing the risk of medicine shortages.   Erik Roos, CEO of generics firm, Pharma Dynamics says cost-cutting measures such as ad-hoc price cuts, external reference pricing, tendering and increased pressure from medical aids have all driven the price of generic medicines to untenably low levels.   “This could force manufacturers and suppliers of generic medicines to withdraw from the market, thus hampering the supply of medicines. At issue isn’t the competition which exist between multiple generic competitors entering the market, which naturally drives down the cost of medicines, but rather when legislators overspend on newer, higher priced innovative medicines and then – in an effort to balance the budget – try to further cut the cost of generic products.   “Winning government tenders often boils down to cost, which forces suppliers of generic medication to push their prices as low as they can. This not only puts their business at risk, but the well-being of patients too, since they are then often reliant on a single manufacturer for a market, which is why we are seeing an increase in supply issues of essential medication, not only in SA, but all over the world. Globally we are witnessing medicine shortages as healthcare budgets continue to come under strain, primarily due to growing and ageing populations, an increased disease burden, especially with regards to non-communicable diseases (NCDs) and the introduction of new, high priced innovative medicines.   “SA’s population has grown exponentially to 57 million in 2018 compared to 49 million ten years ago. This represents a population growth of almost a million a year. As the population grows and ages, the need for medicine increases, while healthcare budgets and margins tighten evermore,” remarks Roos.   Countries such as Romania and Portugal have implemented extreme policies by applying clawbacks (retrieving money, typically by taxation) once product sales reach a certain level, resulting in thousands of pharmaceutical products being withdrawn from the market.   According to the Stop Stockouts Project (SSP) – a civil society coalition that monitors medicine shortages in South Africa’s public health facilities, among the worst affected drugs are antiretrovirals (ARVs) and TB treatments – upon which millions of patients rely. The North-West province has been battling dwindling supplies of ARVs and other essential medication since March this year.   The large pharmaceutical wholesalers in the country also confirmed a shortage of certain vaccines, while some blood products or biologics have also been out of stock for some time.   Roos says regulatory changes can also have a huge impact on the supply of medicines.   “Every change to a product or process must be detailed to and accepted by regulators. Regulatory demands vary, and as a result, costs have increased substantially over the last few years, even though the price of most generic products hasn’t. These changes might be negligible for originators, but for marginally profitable generics, the impact is significant.   “Regulatory amendments can include a change in how a certain class of product should be named in submissions right through to changes in the dosage of a product. The former can cause a delay of six months or longer in the launch of a pharmaceutical product and result in huge losses for the company. The latter could require all products with the same active pharmaceutical ingredient (API) to be removed from pharmacy shelves until the relevant changes to insert leaflets and packaging have been made, also causing a delay of several months.   “Policymakers also don’t realise the extent to which pharmaceutical manufacturing (globally) has been consolidating over the last few years in order to remain profitable. Many of the big generic companies have announced closures of manufacturing facilities resulting in fewer plants producing a single product.   “Addressing the unique challenges that generic pharmaceutical companies face is a priority and an important discussion that must take place between regulators, medical aids, consumers, manufacturers and suppliers.   “To further squeeze generic companies on the cost of already relatively inexpensive products isn’t worth the risk of widespread shortages. Instead, proactive steps should be taken by government to make it easier for generic companies to get products to the market quicker, especially following the expiry of an original brand’s 20-year patent term. This can only be achieved by reviewing SA’s patent law, as currently it continues to protect and extend the monopolies of originator companies by allowing them to extend the period of exclusivity for no further advancement in the molecule. This practice is known as ‘evergreening of patents’ and keeps medicine prices high.   “Enabling more generic competition not only helps to reduce medicine prices, but allows greater access and improved public health. I don’t know of any other industry that can offer a product at half the price as it was the day before. Generics have the ability to reduce the cost of medicine by up to 80% and play a vital role in the healthcare mix,” says Roos. Issued by Meropa Communications on behalf of Pharma Dynamics. For further information, contact Brigitte Taim from Meropa on 021 683 6464, 082 410 8960 or brigittet@meropa.co.za.  

About Us

The Northern Business Review is a business community newspaper that provides a platform for businesses to market their products and services, as well as build their brand, but equally important the publication provides information, advice and topics of interest, including business, entrepreneurial, economic reviews and simple ideas to grow your business. The publication has a primary objective to “uniquely” represent businesses to a wide audience across the community as well as provide a media platform of business articles and information that affect, influence and uplift the business environment within our defined geographical and cultural community.

@NsabasiNBR

Designed by Nsabasi Publishing©2020

Why should I train my sales Team?

The big question all companies ask themselves. Can I…………. afford to train my sales team? Can I………… afford NOT to train my sales team?   These are valid questions. In truth there are many benefits to investing time, effort & capital in training your sales team. Of course you can plough R1,000’s into training & see little return. Training just for training sake, can prove fruitless. But if you clearly identify areas of need, focus cost effective training on them & thereafter ensure implementation, you will surely see Return on Investment. Training can provide tremendous advantages for your business –
  1. directly improve Customer service
  2. motivate your staff
  3. help improve public perception of your business
  4. build consistency, among other goals
  5. give you an advantage over less skilled competitors
  All these things will help increase revenue & improve your bottom line. Happy training!

About Us

The Northern Business Review is a business community newspaper that provides a platform for businesses to market their products and services, as well as build their brand, but equally important the publication provides information, advice and topics of interest, including business, entrepreneurial, economic reviews and simple ideas to grow your business. The publication has a primary objective to “uniquely” represent businesses to a wide audience across the community as well as provide a media platform of business articles and information that affect, influence and uplift the business environment within our defined geographical and cultural community.

@NsabasiNBR

Designed by Nsabasi Publishing©2020

The National Children and violence trust

#championing your cause National Children and Violence Trust (NCVT) is a Non-Profit Organization that functions to support vulnerable groups such as the abused and violated children, women, the unemployed, people infected and affected by HIV/AIDS in some of the most impoverished informal settlements in Gauteng. The poor socio-economic conditions, low education levels and the inefficient access to health services provide further insights into factors affecting life-style and well-being of the people with whom National Children and Violence Trust works. The communities are located in the informal settlements of Diepsloot, Lanseria, Nooitgedacht, Zandspruit, Itsoseng, and Cosmo City. These areas are subjected to high incidences of violence and trauma. Our aim is to address the effects of trauma induced by violence, abuse, poverty, inequality, unemployment and HIV/AIDS by providing services that will ensure emotional well-being and the observation of children’s rights and human rights. This is in support of National Children and Violence Trust’s vision of a society where children’s well-being and their rights are protected, preserved and upheld. The national children and violence trust (NCVT) is a registered South African non-profit organization, established in 1995. It provides community-based psychosocial services and empowerment programmes to children, women and families in underserved areas in Gauteng.   NCVT was founded during the peak of the 1990’s political violence. Its original focus was on supporting and healing traumatised children, affected by the violence. Its founder, Prof Hlengiwe Mkhize, saw a need to help the children especially in the townships with providing trauma counselling.   With over 15 million South African children under the age of 14, and 5.6 million of them being under the age of four years old, it is in the hands of families and communities to ensure that children of all ages do not resort to the streets as a desperate measure to avoid morbid domestic challenges at home. “Children are our future leaders, educators and doctors after all,” says NCVT Senior Social Worker, Judith Mthombeni.   “It is not uncommon for children in South Africa to live separately from their biological parents, in the care of relatives or friends. A number of issues may be attributed to this norm, including: the fear of getting into trouble at school or at home; parents divorcing or living with a new spouse; physical, sexual or substance abuse and bullying to name a few,” explains Mthombeni.   “Our priority is to protect children’s rights and ensure that they are not violated. Should we suspect that a child is in any danger or shows signs of wanting to run away, NCVT social workers intervene using the appropriate channels.”   “In the words of our late Former President, Nelson Mandela, ‘children are our greatest treasure – they are our future’. Let’s save our children from the streets and share love with every child we come across, whether biologically related to you or not,” Mthombeni says.   Over the last 20 years, this has evolved into a more holistic psychosocial approach delivered by our team of social workers and volunteers. The cases that the organization works on, are mainly cases of abuse and domestic violence. The target market has also grown to include more focus on women, persons with disabilities and there is also a stronger focus on family preservation.   NCVT partners with the department of social development, schools, nursery schools, police stations, community leaders and other non-profit organizations. NCVT’s head office is located in Fourways and it shares the same premises as the Witkoppen Clinic. The NCVT team currently works in the following communities: Diepsloot, Lanseria, Zandspruit, Itsoseng and Cosmo City.   The National Children and Violence Trust (NCVT) implore communities to join forces in providing a safe and conducive environment for children. NCVT supports vulnerable groups such as abused and violated women and children; the unemployed; and people infected by the human immunodeficiency virus and acquired immune deficiency syndrome (HIV/AIDS).   NCVT is a member of The Fourways Community Chamber of Commerce, who they have found to be a perfect fit for their organisation.  This is due to their values being aligned in developing entrepreneurs, establishing beneficial partnerships amongst businesses and championing the cause of organisations working in the community.   The Fourways Community Chamber is a platform to profile businesses and community initiativeswith the express interest of sustainable and collaborative development.     Contact details: Neil Bickmore – acting director/financial manager Mpumi Mndaneni – senior social worker Judith Mthombeni senior social worker   Office: 011 7051960 and 011 4674936      

About Us

The Northern Business Review is a business community newspaper that provides a platform for businesses to market their products and services, as well as build their brand, but equally important the publication provides information, advice and topics of interest, including business, entrepreneurial, economic reviews and simple ideas to grow your business. The publication has a primary objective to “uniquely” represent businesses to a wide audience across the community as well as provide a media platform of business articles and information that affect, influence and uplift the business environment within our defined geographical and cultural community.

@NsabasiNBR

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Customer Retention is built on Trust                            

In a world where customer loyalty is the holy-grail, what is the single most important ingredient to ensure repeat business?  Whilst value, price, product differentiation, process and customer service are all significant contributors, more than ever, customers want to know they can trust you.  Trust is now recognised as a primary driver for bottom line growth and the heart of a healthy culture. The Cost of Distrust To understand the value of trust, we need to count the cost of distrust.  Despite having one of the best constitutions and governance frameworks in the world, we are grappling with corruption and a lack of accountable leadership.  Could it be that we are trying to legislate behaviour, rather than promoting individual and corporate accountability? As many of the top global organisations have discovered recently, it takes years to build trust in a brand and only moments to destroy it.  The 2018 PWC Global CEO survey expresses the concern that trust in business has dropped by nearly 50%.  And it is coming at a cost.  Recently we have seen major accounts withdrawn, international racially insensitive adverts sparking a global social media storm and even rioting.  Distrust has the ability to wipe millions, if not billions off the bottom line.  Three Cs to Build Trust in your Organisation
  1. Character
Trust starts with you and me.  It asks the question, are you trustworthy?  It reminds us that organisations are made up of individuals – when we represent a brand our customers do not always differentiate between the two.  Customers are not looking for perfect, they are asking for authenticity, transparency and consistency.  The rule of thumb always was if customers had a good experience, they would tell twelve people. If it was bad they would tell twenty.  With our electronic word of mouth, one bad experience can go viral.  
  1. Connection
It is the heart of trust.  In a world of digital connection, relationship has become even more important.  Electronic channels have become seductive because they give the illusion of a close relationship.  Personalised messages are becoming intuitive and certainly support building rapport, not replacing the personal touch.   Ask questions, listen deeply and take a real interest your customer’s feedback.  Talk to your customer not at them.  We recently invited a group of top clients to co-create a new platform.  The feedback we got was pure gold. The fact that their input was so valued made them feel cared for, respected and important.  
  1. Credibility
And lastly, without credibility trust cannot exist in business.  Customers expect you to walk the talk, deliver as promised, be transparent, ethical and accountable.  As we move deeper into the digital world, trust in data is becoming increasingly important.   These aspects will build long-lasting relationships over time.  The benefit to the organisation is increased customer retention, collaboration and long-term growth.  Trust is build over time, one experience, one conversation at a time.   Bev Hancock – Speaker, Strategist and Leadership Coach at Unique Speaker Bureau

About Us

The Northern Business Review is a business community newspaper that provides a platform for businesses to market their products and services, as well as build their brand, but equally important the publication provides information, advice and topics of interest, including business, entrepreneurial, economic reviews and simple ideas to grow your business. The publication has a primary objective to “uniquely” represent businesses to a wide audience across the community as well as provide a media platform of business articles and information that affect, influence and uplift the business environment within our defined geographical and cultural community.

@NsabasiNBR

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Small is the new big

Bev Hancock: Business Strategist & Team Building Specialist Bev is a futurist who joins the dots between people, strategy and culture in the future world of work. She invites audiences to think differently and gives practical strategies for building trust, accountability and leadership into the daily fabric and leadership of the organisation.  Ever since David and Goliath, the idea of the little guy with limited resources taking on the giant and winning, has been a popular story.  Where as the giant will always have the advantage of strength, resources and economies of scale, it is David’s agility, innovative use of everyday resources and courage to take on the impossible that give him a distinct advantage.  The digital age has presented small businesses with an unprecedented opportunity to gain competitive advantage where small and agile is an advantage. According to Deloittes Tech Trends (2016) competitive dynamics are driving change.  Small businesses, who are not hampered by complex legacy systems, are able to innovate faster. As the demand for online and cross-border trade increases, brick and mortar businesses are losing their advantage to agile, digital, cloud-based start-ups.  More and more, consumers are using their mobile devices to communicate, market, sell and trade.  According to the World Economic Forum (WEF) Kenya reports that more than half the population makes mobile payment. So why are we not seeing small businesses rush to gain this competitive advantage?  The World Bank reports that despite these trends, only 9% of small businesses and 16% of medium sized businesses sell online.  Even in upper-middle-income countries, less than 30% of small businesses and less than 40% of medium-sized businesses sell online.  Develop a digital mindset There are many free tools from top technology companies who offer free digital readiness.  To slay Goliath, David had to prepare himself both mentally and physically.  You can develop this mindset by immersing yourself in the available technologies, many of them free.  Don’t just research their benefits and risks, experience them and get a clearer understanding how they can transform your business into a cross-border marketplace.  Take advantage of scale in the cloud When choosing his weapon, David started with what was immediately available and something he knows well.  Cloud business models often start with a basic “freemium” model which allows small business to use the technology either for free or at a limited cost.  This allows small business to gain valuable digital skills and access to limited markets.  By combining these with free social media marketing tools, businesses can achieve a substantial amount with minimal layout.  However, the aim of freemium is to upgrade customers to premium and many small businesses are resistant to paying for these services.  There does come a time however, when scaling to a premium model is good business.  Work collaboratively to gain competitive weight Whilst David had the courage to take on Goliath singlehandedly, there is power in numbers.  The SME mindset needs to shift from competition to collaboration to have the best long-term success against the giant.  Through connecting to collaborative economy, business do not have to be experts at everything.  Through strategic partnering, using the sharing economy, accessing smart platforms and engaging with the SME ecosystem, business can overcome some of the traditional barriers to entry. Small businesses need access to digital financial, technological and logistical tools that can help them enter global markets. Through partnership, we can make these tools more accessible. Sonny Fisher, CEO of FORUS who launched the public utility blockchain digital exchange in Port Elizabeth recently believes that, “Through collaboration, we can democratise access to mobile commerce capabilities, expand access to affordable financing and equip businesses with the tools needed to compete on the global stage.” To achieve this, we need more Davids. Bev Hancock – Speaker, Strategist and Leadership Coach at Unique Speaker Bureau

About Us

The Northern Business Review is a business community newspaper that provides a platform for businesses to market their products and services, as well as build their brand, but equally important the publication provides information, advice and topics of interest, including business, entrepreneurial, economic reviews and simple ideas to grow your business. The publication has a primary objective to “uniquely” represent businesses to a wide audience across the community as well as provide a media platform of business articles and information that affect, influence and uplift the business environment within our defined geographical and cultural community.

@NsabasiNBR

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