Citation
Through the Eyes of the Client

Material Information

Title:
Through the Eyes of the Client : An Analysis of a Student Consulting Program in South Africa
Creator:
Horwood, Jessica l.
Place of Publication:
[Gainesville, Fla.]
Publisher:
University of Florida
Publication Date:
Language:
English
Physical Description:
Project in lieu of thesis

Thesis/Dissertation Information

Degree:
Master's ( Master of Sustainable Development Practice (M))
Degree Grantor:
University of Florida
Committee Chair:
Morris, Michael H
Committee Members:
Kumaran, Muthusami
Kraft, John

Subjects

Subjects / Keywords:
Business ( jstor )
Business development ( jstor )
Business operations ( jstor )
Consulting services ( jstor )
Corporations ( jstor )
Employee skills ( jstor )
Entrepreneurs ( jstor )
Entrepreneurship ( jstor )
Municipalities ( jstor )
Small businesses ( jstor )
Sustainable Development Practice field practicum report, M.D.P.
Genre:
terminal project
Field Practicum Report

Notes

Abstract:
Since the end of apartheid in 1994, the South African government prioritized entrepreneurship as a strategy to integrate the historically disadvantaged into their economy. But government programs have been as effective as they had intended. Entrepreneurship and Empowerment in South Africa (EESA) is a student consulting program that assists entrepreneurs working in the townships around Cape Town through tailored one-on-one process consulting. Student consultants work with entrepreneurs to analyze their business and produce at least four tangible solutions that address the businesses core issues. ( ,,,,,,,,,,,, )
Abstract:
As part of the field practicum for the Masters of Sustainable Development Practice (MDP) program, two objectives were achieved through participation with the EESA program. The first was a strengthening of business operations through analysis and improved business practices. The second was to provide feedback to the EESA program of clients’ perceptions of program. Feedback could then be used to verify the strengths and weaknesses of the program and improve the EESA’s standard practice. In addition, a tracking system was implemented to keep track of the entrepreneurs’ business progress over time.
Abstract:
Interviews with clients were conducted both in-person and over the phone. Findings revealed that entrepreneurs benefitted most from EESA in the three key ways: business skills, entrepreneurial skills and business documentation. Some of the most valuable parts of EESA are not the most obvious skills that are learned, but the empowerment that the entrepreneurs achieve through engagement with the student consultants. Evaluation highlighted four unique contributions that EESA contributes to sustainable enterprise development in South Africa. These include holistic training, tailored support for entrepreneurs, facilitating the transition from survival enterprise to sustained enterprise, greater societal benefits that result from sustainable enterprises.
Abstract:
Based on feedback gained through interviews with clients, recommendations are made to the EESA program and to the larger South African government. Targeted and tailored consulting is crucial to the success of historically disadvantaged entrepreneurs in South Africa, but it is up to the government to foster an enabling environment such as the provision of quality education and infrastructure to facilitate the entrepreneurial process.
General Note:
sustainable development practice (MDP)
General Note:
The MDP Program is administered jointly by the Center for Latin American Studies and the Center for African Studies.
Statement of Responsibility:
by Jessica L. Horwood

Record Information

Source Institution:
University of Florida
Holding Location:
University of Florida
Rights Management:
Copyright Jessica L. Horwood. Permission granted to the University of Florida to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
Resource Identifier:
1022120900 ( OCLC )

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THROUGH THE EYES OF THE CLIENT: AN ANALYSIS OF A STUDENT CONSULTING PROGRAM IN SOUTH AFRICA Jessica L. Horwood A field report submitted in partial fulfillment of the requirements for a Master of Sustainable Development Practice degree at University of Florida Supervisory Committee: Dr. Michael H. Morris, Chair Dr. John Kraft Member Dr. Muthusami Kumaran Member

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2 Contents ABSTRACT ................................ ................................ ................................ ................................ ................................ 4 ACKNOWLEDGEMENTS ................................ ................................ ................................ ................................ ........ 5 1. INTRODUCTION ................................ ................................ ................................ ................................ ............. 6 Context of Sou th Africa ................................ ................................ ................................ ................................ ..................... 6 The economic necessity of entrepreneurship in South Africa ................................ ................................ ......... 6 Entrepreneurial Support in South Africa: ................................ ................................ ................................ ................. 7 Government initiatives to support SMEs: ................................ ................................ ................................ ................. 8 2. FIELD PRACTICUM 7 JUNE 17 AUGUST, 2015 ................................ ................................ .................. 9 Context ................................ ................................ ................................ ................................ ................................ ............. 10 Khayelitsha Profile ................................ ................................ ................................ ................................ ...................... 10 Involvem ent: ................................ ................................ ................................ ................................ ................................ .. 11 Partners ................................ ................................ ................................ ................................ ................................ ........... 11 Selection of Clients ................................ ................................ ................................ ................................ ...................... 12 Structure of the program ................................ ................................ ................................ ................................ .......... 12 3. CONCEPTUAL FRAMEWORK ................................ ................................ ................................ ................... 13 Conc eptual Framework of Field Practicum: Indicating objectives of field practicum ......................... 15 4. APPROACH: PROCESS CONSULTING ................................ ................................ ................................ .... 16 5. METHODS ................................ ................................ ................................ ................................ ...................... 17 Stages of Consulting ................................ ................................ ................................ ................................ ........... 17 Supporting Emerging Enterprises Consulting Framework (SEE Model) ................................ .................. 17 Observation/Participant Observation ................................ ................................ ................................ ..................... 18 Mapping ................................ ................................ ................................ ................................ ................................ 19 Scenario Planning/Pr ioritization ................................ ................................ ................................ ............................... 20 Workshops/Training ................................ ................................ ................................ ................................ ...................... 20 Interviews ................................ ................................ ................................ ................................ ................................ ............ 21 Interviews ................................ ................................ ................................ ................................ ................................ ............ 22 Reflections on Methods ................................ ................................ ................................ ................................ .................. 22 Phone Interviews ................................ ................................ ................................ ................................ ................ 22 Methodological Limitations ................................ ................................ ................................ ................................ .......... 2 3 6. RESULTS ................................ ................................ ................................ ................................ ........................ 24 Baseline Results ................................ ................................ ................................ ................................ ................................ 24 The Impact of EESA ................................ ................................ ................................ ................................ .......................... 25

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3 1. Business Skills ................................ ................................ ................................ ................................ ..................... 26 2. Personal Skills ................................ ................................ ................................ ................................ ...................... 29 3. Busines s Docum e ntation ................................ ................................ ................................ ................................ 31 7. DISCUSSION ................................ ................................ ................................ ................................ .................. 32 Holistic Training ................................ ................................ ................................ ................................ ................................ 32 Tailored s upport for entrepreneurs ................................ ................................ ................................ ......................... 33 Transitioning from survival enterprise to sustained enterprise ................................ ................................ .. 33 Societal Benefits ................................ ................................ ................................ ................................ ................................ 36 8. LIMITAT IONS OF EESA ................................ ................................ ................................ ............................. 38 9. RECOMMENDATIONS FOR THE EESA PROGRAM ................................ ................................ ............ 41 10. FURTHER RECOMMENDATIONS/CONCLUSION ................................ ................................ ........... 42 PERSONAL REFLECTION ................................ ................................ ................................ ................................ ... 45 REFERENC ES: ................................ ................................ ................................ ................................ ........................ 46 APPENDIX 1: Definition of SME in South Africa ................................ ................................ ....................... 50 APPENDIX 2: Tracking from for phone interview ................................ ................................ ................... 51 APPENDIX 3: Template for In Person Interviews ................................ ................................ ................... 52 APPENDIX 4: Critical feedback provided by clients ................................ ................................ ............... 53 APPENDIX 5: Baseline results from interviews ................................ ................................ ....................... 54

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4 ABSTRACT Since the end of apartheid in 1994, the South African government prioritized entrepreneurship as a strategy to integrate the historically disadvantaged into their economy. But government programs have been as effective as they had intended. Entrepreneurs hip and Empowerment in South Africa (EESA) is a student consulting program that assists entrepreneurs working in the townships around Cape Town through tailored one on one process consulting. Student consultants work with entrepreneurs to analyze their bu siness and produce at least four tangible solutions that address the businesses core issues. As part of the field practicum for the Masters of Sustainable Development Practice (MDP) program, two objectives were achieved through participation with the EES A program. The first was a strengthening of business operations through analysis and improved business practices. The could then be used to verify the streng standard practice. In addition, a tracking system was implemented to keep track of the Interviews with clients were conducted both in person and over the phone. Findings revealed that entrepreneurs benefitted most from EESA in the three key ways: business skills, entrepreneurial skills and business documentation. Some of the most valuable parts of EESA are not the most obvious skills that are learned, but the empowerment that the entrepreneurs achieve through engagement with the student consultants. Evaluation highlighted four unique contributions that EESA contributes to sustainable enterprise development in South Africa. These include holistic training tailored support for entrepreneurs, facilitating the transition from survival enterprise to sustained enterprise, greater societal benefits that result from sustainable enterprises. Based on feedback gained through interviews with clients, recommendations are made to the EESA program and to the larger South African government. Targeted and tailored consulting is crucial to the success of historically disadvantaged entrepreneurs in Sou th Africa, but it is up to the government to foster an enabling environment such as the provision of quality education and infrastructure to facilitate the entrepreneurial process.

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5 ACKNOWLEDGEMENTS I would like to express my gratitude to my committee, particularly Dr. Michael Morris who made this field practicum possible, and who trusted me throughout the process, even when I was alone in South Africa without supervision. The lessons I have learned before, during and after the practicum have been inval uable thanks to his leadership I would also like to thank Dr. Muthusami Kumaran, my committee member who has guided me throughout my Masters and supported me in the direction I chose to pursue. My field practicum would not have been possible without the help of our South African partners including Egbert Wessels, the CEO of the Business Place in Philippi. Egbert supported me with advi ce, a listening ear, new ideas and all the necessary re sources needed (including tea and coffee) while I did research and followed up with clients in Cape Town In addition, I am grateful for the ongoing support that I received from Dr. Glenn Galloway, the Director of MDP. He has provided unwavering support and encouragement over the course of my Masters. I would like t o thank the MacArthur Foundation for the financial support that made all of this work possible.

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6 1. INTRODUCTION As part of the requirement for the Master s of Sustainable Development Practice, students are required to plan and conduct a field practicum, in conjunction with an existing organization. Though a degree of research is required as part of the field practicum, the primary purpose i s to make an impa ctful contribution to the organization t hat we a r e engaged with Such was the context for my summer spent in Sout h Africa in 2015 I participated in a UF run program called Entrepreneurship and Empowerment in South Africa (EESA) for ten weeks, which concl uded in this final report. In will begin by describing the context in which I worked, including the current economic and entrepreneurial state of South Africa. I will then describe the EESA program and all the moving parts which make it function. Therea fter I will analyze the program using data that I collected through interviews with the clients. The analysis will lead to my discussion, where I will attempt to demonstrate the impact of EESA on entrepreneurs in the Western Cape. Based on the discussion I will offer some recommendations, both to the EESA program and to the South Africa government at large These recommendations are based on feedback from EESA clients indicating the most beneficial aspects of the program. Ideally this feedback can be a pplied more broadly to entrepreneurial programs in South Africa. Context of South Africa South Africa is located on the southern most point of Africa, bordered by five other nations and surrounding the kingdom of Lesotho. It has nearly 53 million people encompassing a wide variety of cultures, languages and religion s Until 1994, the country was run by a system of apartheid, where black South Africans were oppressed and segregated. The economy was largely driven and regulated heavily by the government with the black population being confined to certain subservient positions such as mining an d housework. In many ways, society in South Africa has improved drastically since 1994 Separation of race is no longer entrenched in the law and the African National Congress (ANC) have put sweeping legislation in place to r ebuild an inclusive economy However in many ways, the economy has declined since 1994. Most striking is the (used to measure inequality where 0 is most equ al and 1 is least) was 0.59. By 2011, it had risen to 0.65. In addition, the unemployment rate for the working aged population is at 25%. This figure rises to 64.8% when we isolate those aged 16 24 years old. This is compounded by a poor educational system, which is limiting the capacity of youth to engage with market s calling for skilled laborers ( Kumo 2014 ) The economic nec essity of entrepreneurship in South Africa Entrepreneurship is 2009). Not only is it beneficial for economic development, it is essential for a healthy economy. Definitions Map of South Africa

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7 for entrepreneurship are varied, but a definition that incorporates its core elements is t he process of creating value by bringing together a unique com bination of resources to exploit an opportunity ( Stevenson, & Jarillo Mossi 1986). This definition speaks of the process of creating something new and something of value. It also notes that resources can be manipulated to meet an opportunity that arises. In developing countries, there are two motives that lead someone to beco me an entrepreneur: Push: Some entr epreneurs are pushed into creating a business because they are unable to find a job to support themselves and their families. The businesses are usually less sophisticated and are less likely to be successful. Such ent repreneurs are generally called necessity or survival entrepreneurs. Pull: Other entrepreneurs are motivated to start a business because of a perceived opportunity in the market or dissatisfaction with the way things are. These ventures are generally mo re planned to expand in time Entrepreneurs who create growth oriented ventures are known as opportunity entrepreneurs. Entrepreneurship and the creation of small and medium enterprises (SMEs) are crucial to economic development for a number of reasons They have been described as Quartey,2010 ). force is employed through SMEs. SME development has been one of the major areas of concern for policy makers in an attempt to speed up growth. They have an advantage over large scale competitors in that they are able to adapt more easily to market conditions because of their flexible n ature. They are also more labo r intensive than la r ger firms and have low er capital costs associated with job creation. Overall, they perform useful roles in ensuring income stabili ty, growth and employment (Abor, & Quartey,2010). Entrepreneurial Support in South Africa: In recognition of the importance of entrepreneurship and sm all business development for strengthening the economy, the post apartheid government has made entrepre neurship a focal point in its redevelopment plan. In 1995, they produced a White Paper on national strategy on the development and promotion of small business in South Africa. The white paper focused on fostering an enabling environment for the development of SMEs. They justified the paper with the following rationale: With millions of South Africans unemployed and underemployed, the Government has no option but to give its fu ll attention to the fundamental task of job creation, and to generating sustainable and equitable growth. Small, medium and micro enterprises (SMMEs) represent an important vehicle to address the challenges of job creation, economic growth and equity in ou r country. Throughout the world, one finds that SMMEs are playing a critical role in absorbing labour, penetrating new markets and generally expanding economies in creative and innovative ways. We are of the view that with the appropriate enabling enviro nment SMMEs in this country can follow these examples and make an indelible mark on this economy. The stimulation of SMMEs must be seen as part of an integrated strategy to take this economy onto a higher road one in which our economy is diversified, p roductivity is enhanced, investment is stimulated and entrepreneurship flourishes (DTI, 2005)

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8 The government of South Africa has since set up a number of programs that have focused on supporting entrepreneurs in order to stimulate economic development and reduce unemployment. These are outlined in the following table: Government initiatives to support SMEs: Government Agency Description Small Enterprise Development Agency (SEDA) E stablished in 2004 under the Department of Trade and Industry. Provides business development and support services through partnerships with other organizations who are contracted. Small Enterprise Finance Agency (SEFA) Established in 2012 Provides funding to small businesses in the form of bridging finance, revolvin g loans, asset finance, working capital and term loans Any SME with a viable business plan can apply for a loan National Youth Development Agency (NYDA) Launched in 2009 Coordinates and promotes the development of youth in South Africa Assists youth to st art businesses/finance existing businesses Established with the aim of reduc ing youth unemployment and promoting social cohesion In recent years, it has shifted its focus away from e nterprise funding to focus on education and skills development Has a voucher program, where young entrepreneurs can receive one on one business development support through a NYDA accredited service provider up to a certain cost. Technology and Innovation Agency (TIA) Established in 2008 under the Department of Science and Technology Supports technological innovations across all sectors of the economy to achieve socio economic benefits and enhance global competitiveness develop new industries, create sustainable jobs and help to diversify the economy Cooperative Incentive Scheme (CIS) Incentivizes co ops to be formed of black people who can come together for mutual benefit Program will help co ops meet their start up requirements by providing grants Women, disabled individuals and youth are favored Incubation Support Program (ISP) Provides grants to entities to allow them to start incubation programs to strengthen SMEs within their communities. Encourages a partnership between the private sector, SMEs and the govern ment to create sustainable growth through the incubator programs.

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9 Despite all the government initiated pr o grams to support entrepreneurship and SME development, many of these programs have shown to be ineffective. One study indicated that only 10% of res pondents in the Western Cape knew the names of programs established to assist small business development (Herrington et al., 2014) while another study noted that 61% of small business owners were not aware of any organization that gives support and ad vice to small business owners ( Finmark Trust 2010). G overnment assistance to small business is complex and difficult to navigate with different programs housed in different departments wi thout much communication between them Small business owners rare ly know where to turn for help and therefore do not benefit from the available assistance (Maye, 2014). Additionally, the programs have not been effective in enabling businesses to be sustainable. The rate of discontinuance is higher than the rate of startups among entrepreneurs leading to a net loss of small business activity and job losses. Only 12.5% of small business owners have had any specific business training prior to starting up their business ( Finmark Trust 2010). Those who had received entrepreneurial training were generally a part of programs initiatives such as Anglo ickstart program (Herrington et al. 2014). These programs are more competitive to get into, and are often of higher quality than the government programs 2. FIELD PRACTICUM 7 JUNE 17 AUGUST, 2015 In the summer of 2015, I pa rticipated in a program called Entrepreneurship and Empowerment in South Africa ( EESA ). The program itself lasted six weeks. I arrived one week before the start to assist program staff with conducting interviews. I stayed three weeks after the program ended to gather information on both current and previous of the program. During this time I also implemented a tracking system so that the clients could be consistently tracked every six months on the pro gress of their business.

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10 Entrepreneurship and Empowerment in South Africa (EESA) Context The EESA program was developed by Dr. Michael Morris in 1999, and has been running each summer since its conception The program is designed for historically disadvant aged entrepreneurs located in the townships around Cape Town. Tow nships refer to the underdeveloped urban living areas that were formed during apartheid and were reserved for non whites. They are usually located on the outskirts of big cities, as non whites were forcibly pushed out of the cities into these informal set tlements. The location the townships, in relation to Cape Town city are displayed on the map above. The largest township in the Western Cape is Khayelitsha; which is where the majority of our EESA clients were based (green pin on map). Over the years, E ESA has been housed at a variety of universities within the Western Cape, but it is currently based out of the University of Western Cape (UWC). This is a good fit for the program, as UWC has a history of creative resistance against oppression and discrimination. It has been at the to end apartheid and build an equitable nation through educating disadvantaged and marginalized population to participate fully in society. Khayelitsha Prof ile Indicators Location 40 km south east of Cape Town Population Est. 900,000; second largest township in South Africa Informal housing/shacks 57% Piped water 62% HIV prevalence 25% (national average 19% UN AIDS Gap Report 2014) Education 36% age 20+ have completed secondary school (national average 43.9% -Statistics; South Africa Pretoria 2013) Electricity 76% Unemployment rate 54.1% (Western Cape average 30%) Map townships where EESA operated 1 Image of township most people dwell in informal settlements or shacks

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11 Involvement: Basing the program at UWC mission of supporting historically disadvantaged entrepreneurs in the Western Cape Currently, EESA is a collaboration bet ween the UWC and three American Universities Ea ch of the American universities select s students to participate in the program from a variety of disciplines. There is no restriction on the field that the students study ; the variety of backgrounds creates a more dynamic consulting team. UWC students are selected once the EESA management tea m arrives in South Africa. Their addition to the consulting team is invaluable as they provide insight into the culture and norms of the clients that the American students may struggle to grasp. Partners EESA works in partnership with a number of different individuals, organizations and businesses that add value to the program. Some of them are logistically important, and help with acquiring clients. Others are important in providing information to the st udent consultants that are useful for their c lient engagement. Without these partnerships, the EESA program would be unable to function as efficiently. The Business Place: The Business Place is a network of small business development support centers. In the Western Cape there are two centers (one shut down in 2015) EESA has built a relationship with these centers over the years as they have a similar mission and can support each other Luvuyo Rani/ Ekasi Network: Rani is a former EESA client who owns an IT business called Silulo Ulutho Technologies His business has grown enormously over the years, and has remained in the townships. Luvuyo is passionate about assisting disadvantaged entrepreneurs He developed the Ekasi Network in 2012 with the intenti on of bringing together entrepreneurs once a month to engage in meaningful conversation and hear from speakers that can help them tackle some of the challenges that they face. As a former EESA client, Rani has a close relationship with the program and use s his networks to recommend clients to the program. University of Western Cape (UWC): EESA is based at UWC. Classes take place on campus and students stay in dormitories on campus. All of the South African students that participate in EESA are enrolled at UWC There are also a wide range of organizations and individuals that support EESA by giving speeches or holding workshops and panels for the EESA Consultants. They include a number of prominent QUICK LOOK AT EESA STANDS FOR Entrepreneurship and Empowerment in South Africa ESTABLISHED 1999 NO. OF UNIVERSITIES INVOLVED 4 NO. OF AMERICAN STUDENT CONSULTANTS 28 NO. OF SOUTH AFRICAN STUDENTS CONSU LTANTS 18 NO. OF CONSULTING GROUPS 8 NO. OF CLIENTS INTERVIEWED FOR PARTICIPATION (2015) 56 NO. OF CIENTS ACCEPTED 16

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12 banks, government officials, well known entrepreneurs a nd representatives from micro lending institutions. Selection of Clients EESA relies on its partnerships with the Business Place and with Luvuyo Rani to access clients. E ntrepreneurs who are interested in participating apply to the program through the Business Place or through Luvuyo Rani. An interview is ar ranged and takes place the week prior the start of EESA. Altogether, the EESA management team, including myself interviewed 56 applicants and accepted only 16 to participate in the program. Select ion of clients was ultimately up to the interviewer s discretion but based on some of the following criteria: Has been in business for one year or longer Is a registered company (CC or PTY) Is committed and passionate about the ir business ; is not undertak ing the venture solely as a survival strategy Is willing to share sensitive business information with the student consultants including financial information Is willing to learn and collaborate The criteria were used as a guideline, rather than a definitiv e selection tool. In some cases, we felt that applicant s who did not meet the criteria would make a good fit because of their vibrant spirit, their entrepreneurial character istics, or their drive to learn. In other cases, applicants who had steady businesses and seemed well qualified on paper were not accepted because we felt that they would be difficult to work with or unlikely to be receptive to change. Structure of the program EESA has multiple functions. Firstly, stu dents are trained to be consultants through daily lectures, activities, workshops and meetings with faculty. They are divided up into consulting teams, with a mix of backgrounds and experience levels in each team. Eac h team is allocated two clients One of the clients is generally more established than the other The consulting team meets with each of their clients twice per week to apply their consulting to the small business owner. This includes a thorough analysi s of the business using the SEE Model (see p. 14 ) and the design and implementation of a minimum of four deliverables per client based on the analysis of the business. The four deliverables are not simply recommendations that the clients should apply on t heir own ; they must be completely or nearly complet e ly implemented by the end of the six week p rogram. To demonstrate th e process described above, I will use an example of an entrepreneur called Yolisa who started a restaurant called Blaque Zar. The core strategic issues that were identified at Blaque Zar related to a lack of mark eting/promotion of the business and limited cash flow This resulted in little working capital with which to make improvements and create purchasing efficiency by buying in bulk In response to these challenges, the consulting team worked in collaboration with Yolisa to make four changes. 1. The y created a marketing package including new signage, printed menus, incentivized promotions and weekly specials They also created on l ine visibility.

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13 2. Next, they introduced an additional product offering apart from their traditional meats so that they could increase their profit margins and cash flow. This new offering was french fries. Inexpensive to make with larger ma rgins than their primary offering (meat) 3. They created a sales and training program after realizing that there was no standardization in sales and that the organizational culture did not promote excellent customer service. This included a customer service survey and tr aining program for new hires. 4. They improved operational efficiency through a simplified ordering process, defined roles and responsibility of staff This helped improve the speed and efficiency of the workplace. were devised and implemented in collaboration with Yolisa, who knew her business best. The analysis of the business and the deliverables were written up by the consulting team and submitted to each of the cli ents. The information included in the final re ports was written for the client and contains everything t hat was discussed and implem ented during the six weeks. It can be used as a reference for the client. A closing ceremony takes place at the end of the six weeks. E ach client is honored for participating in the program and they are given a certificate of completion. The ceremony indicates an official end to the program, and a symbolic start to a new phase of the business. All of the new practices and procedures are now officially incorporat ed into the regular operati ons of their business. 3. CONCEPTUAL FRAMEWORK The overall development goal that my field practicum contributed to was that emerging businesses operate in a more efficient and sustainable manner. I focused on two specific objectives to contribute to this development goal : Objectives Methods Specific Objective 1 Business weaknesses are identified and solutions are implemented in emerging business. SEE Model, observation/PO, mapping, interviews, scenario planning, prioritization, workshops/training. Specific Objective 2 EESA and partners better understand the utility and impact of their services Interviews with current and former clients, implementation of tracking system The first objective was met by participating in the EESA program a s a business consultant. This and practices of small enterpri ses. The second objective was to analyze the program itself, from the perspective of the clients and to assess its impact on entrepreneurs and their businesses. I interviewed clients from the current year and previous years in order to collect data rela ting to this objective. Results were then passed along to the respective stakeholders.

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14 A conceptual framework for my field practicum (presented below) illustrates the process of small enterprise development in South Africa and the influences that either fa cilitate it or obstruct it. the enabling environment in which they are embedded. The gray boxes in the framework indicate the stages in the process that my field practicum cont ributed to. The first objective (strategy in the framework) was to analyze and strengthen small businesses by providing consulting services as part of the EESA program. The second objective (evaluation/feedback) was to analyze the im pact of EESA through the perspectives of the clients. The information generated could be used to strengthen the program and inform future program development relating to small businesses and entrepreneurship.

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15 Conceptual Framework of Field Practicum: Indicating objectives of field practicum Assets/Capital: Human: Knowledge, information, skills education Social: Networks, family and friends, loose ties to people in positions or influence and power Natural: Water, soil, climate Financial: Access to credit, access to savings account, safety of finances Built: Roads, building material of residence or shop, access to market, necessary resources Cultural: Perception of entrepreneurs, willingness of community to try/support something new. Political: Connections to people with power, tax system, stability, security (relationship with police) Enabling Environme nt: Ease of Venture Start up: Red tape on business startup regulation, low taxation for startups, exemption for regulation on bigger compan ies, NYDA Business Consultancy Service (BCSVP). Policies: Broad Based Black Economic Empowerment (BBBEE), Small Enter prise Development Agency (SEDA), Small Enterprise Financing Agency (SEFA) etc. Cultural: Perception of people to entrepreneurship (is it looked at favorably or looked down upon?), willingness of people to support new endeavors/products/services Financial I nstitutions: Access to credit, interest rates, support for financial management, insurance Entrepreneurial Support: Business incubators, Hubs supporting entrepreneurs Infrastructure: provision of public goods; internet access, roads Provision of educatio n/healthcare Outcome: Sustainable enterprises/economic e mpowerment Strategy : To strengthen the operations of emerging enterprises through collaborative analysis and design of improved business model s and business practices. SHOCKS CYCLES TRENDS Evaluation/Feedback: Analyzing the progress or entrepreneurs in the area. What has worked and why? What has been less useful and how can programs like EESA be adapted. INFLUENCE ACCESS

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16 Business Incubators and entrepreneurial hubs include Furntech, The Innovation Hub, Shanduka Black Umbrellas, The Barn, Cape Innovation and Technology Initiative, The Business Place, Zimele Hubs, Endeavor Hubs 4. APPROACH: PROCESS CONSULTING During our consulting engagement in South Africa, we engaged w ith a framework called process consultation, a term coined by Edgar H Schein in 1969. Schein outlines three types of consultation is used to diagnose and want a quick and easy solution with minimum involvement; however it renders the client dependent on the consultant to resolve the problem. The second common form of consultin g is the Doctor/Patient style. This is where a consultant is given the power to make a diagnosis and prescribe a solution to the identified problem; generally in the form of a series of recommendations. Process consulting is the third style of consultin g, and the one we used during our work in the townships. The assumption is that the client s themselves have the capability to address their problems with some advice from an external party. There is a strong emphasis on developing a relationship between the client and the consultant This is the basis for whether or not the will occur in situations involving personality, group dynamics and culture is the r elationship between the helper and the person, group or organization that needs help P rocess consulting was important for our consultation engagement in a number of ways. Firstly, most of the student consultants had no prior experience providing consulting services to small businesses. For some (including myself), they had very limited experience even engaging with businesses. For this reason, it was important that we participated in facilitative intervention instead of attempting to p practice t 1999). Although we were inexperience d, we were approaching the clients with a humble attitude and responding to situations as they arose. Secondly, the process consultation framework is based on the assumption that the client has the capabilities to solve the problems themselves. This means that the role of the consultant is to provide advic e and empower the client to make the necessary adjustments to their b usiness. This is an important distinction because it enables the client to take full ownership of their business decisions. They part icipate fully in the analysis process, the identification of the core challenges and the implementation of proposed solutions. In short, process consulting ensures that the outcomes of the engagement are sustainable, since the client is personally investe d in the decisions made.

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17 5. METHODS In this section, I will discuss each of the methods that I used during the field practicum. Each method contributed to achieving my two objectives through the various stages of consulting (as shown below). Stages of Consulting The above process outlines the stages that our consulting engagement went through. This is a fairly typical con sultation process that is used b y many consulting firms. Below I have outlined the methods used in each stage of the process. The red color in the diagram s highlights the stages that are being covered by each method used. Objective One: Business weaknesses are identified and solutions are implemented in emerging business. Supporting Emerging Enterprises Consulting Framework (SEE Mod el) The SEE Model is a logical framework used to map out businesses at the front end of a consulting engagement. It moves thr ough three interconnected layers of analysis that together make up a holistic pict ure of an emerging enterprise (Morris, 2014). ASSESS BUSINESSES PROBLEMS & OPPORTUNITIES PRIORITIZE ISSUES SELECT ISSUES TO BE ADDRESSED DEVELOPMENT PLAN TO DEAL WITH ISSUES; ENSURING CLIENT BUY IN IMPLEMENT TRACK AND ADJUST ASSESS BUSINESSES PROBLEMS & OPPORTUNITIES PRIORITIZE ISSUES SELECT ISSUES TO BE ADDRESSED DEVELOPMENT PLAN TO DEAL WITH ISSUES; ENSURING CLIENT BUY IN IMPLEMENT TRACK AND ADJUST

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18 Layer One: The Entrepreneurial Core Layer one is concerned with the entrepreneurial core of the business. Included in this layer of analysis is an assessment of: The entrepreneur himself ; so there is a strong sense of the entrepreneurs strengths and weak nesses The business concept; what the unique business concept is and the value it creates The opportunity/market; what the opportunity in the market place is, how competitive the market is. Layer Two: Internal Operations and Resources This layer analyz es t he internal workings of the business. It focuses on: Financial records; bookkeeping system, financial planning, revenue drivers and the profitability of each, breakeven point Operational considerations; how the business operates, including inventory manag ement and administrative procedures Internal infrastructure; what are the assets and resources the entrepreneur uses to support the operations Layer Three: External Relationships and Activities Layer three focuses on the enterprises relationship with the external environment. Included in this layer is: Marketing efforts; such the branding, the enterprises positioning within the market, the signage and the marketing Financing needs; how the ownership is structured, their access to capital and the financing preference of the entrepreneur The extended network; the enterprises relationship with suppliers and bankers, their sources of cheap advertising and promotional assistance T he information to complete the model was generated through visits made with the cl ients at least twice per week. A number of methods were used for this process. Observation/Participant Observation Our team was able to observe and participate in many of the day to day operations of business. This gave us a picture of the reality of their situation and helped us better understand the challenges that their businesses faced. With Deep Settle our graphic designer clients we were able to see how they interact with their customers and the frequency that people who look at the ir products actually purchase them. We were also able to see how they do their bookkeeping and what the limitations of their bookkeeping methods might be.

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19 Mapping One of the ways we analyze d the layers of the business was by mapping out various processes in their operations. Thi s enabled our consulting group to see exactly how the business operated, and could help us to identify any bottle necks or inefficiencies. Customer Buying Process For example, we mapped out the customer buying process to get a bet ter sense of how potential customers are attracted to the business. It also illustrates the decision making process that customers go through that ultimately leads to a sale. Mappi ng out this process helped us identify ways that we could match the busine process. How the Entrepreneur Spends his/her Week Map This map allowed us to get a sense of where our client spends the bulk of their time (see example below). By mapping it out in a visual form we were together able to identify areas that were less efficient in the ir business operations and work out ways to make the best use of their time. Other maps included: The Economics of the Business Bookkeeping Process Operations Process Points of Customer Contact Marketing and Sales Process

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20 Scenario Planning/Prioritization Once the SEE Model was complete, our consulting team spoke to each of our clients about some of the key strategic issues that we re identified Based on the issues identified, we discussed the issues that should be prioritized within the business. We mapped these together on a flip chart. Scenario planning was then used to map the priorities of the sub issues. For example, marketing was identified as a key strategic issue f or our client Deep Settle. They would soon be relocating to a different location with a store front in a nearby township. Together, we conducted scenario planning so that we could anticipate some of the challenges that may occur in the new location. Thi s allowed us to plan accordingly and conduct some marketing to raise awareness before the move, so that people knew of the business upon their arrival. Our client also started focusing attention on designing a new fashion label that would be relevant to t he target population in that township. The new label was a strong way of connecting with potential clients in a township where they were relatively unknown. Workshops/Training ASSESS BUSINESSES PROBLEMS & OPPORTUNITIES PRIORITIZE ISSUES SELECT ISSUES TO BE ADDRESSED DEVELOPMENT PLAN TO DEAL WITH ISSUES; ENSURING CLIENT BUY IN IMPLEMENT TRACK AND ADJUST ASSESS BUSINESSES PROBLEMS & OPPORTUNITIES PRIORITIZE ISSUES SELECT ISSUES TO BE ADDRESSED DEVELOPMENT PLAN TO DEAL WITH ISSUES; ENSURING CLIENT BUY IN IMPLEMENT TRACK AND ADJUST

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21 Upon identifying and prioritizing the key strategic issues with our clients, we began to develop a plan to strengthen some of their businesses weaknesses. This involved a series of workshops and training programs. We conducted workshops in the following areas: Sales Strategy Marketing Strategy The workshops were interactive and lasted no longer than two hours They involved brainstorming, roleplay, question and answer and a compilation of all of the information at the end for future reference. Based on a workshop, a strategy or process was developed and roles were allocated so that each staff member knew the part they played in the process. We conducted training in the following areas: Computer use Bookkeeping The training sessions lasted more than one session (generally two) in order to make sure that the skills were unders tood. One of our clients had very limited experience using a computer so it took several sessions for her to understand the basic principles of inputting data, changing data saving information and typing. Similarly, a new process of bookkeeping was impl emented for both of our clients. Training in the bookkeeping process took s ome time because it was computer based. There were some functions that had to be repeated in multiple sessions so that the clients understood how to use them and how to troublesho ot them if something went wrong. Interviews The final stage of the consulting engagement is tracking and adjustment. At the time of the practicum (June August 2015) there was no tracking system in place; even though this is an essential part of enterpris e development and an important stage in the consulting process. After the completion of the six week consulting engagement, I developed a tracking system that would enable EESA to keep track of the clients every six months. The tracking will be done ove r the telephone. The interview template can be found in Appendix 1. I conducted 51 interviews over the course of two weeks. 1 2 of the interviews were in person, and 3 9 were over the phone. I recorded the interviews that were conducted in pe rson The information was later compiled. The interviews conducted over the phone were written up on the tracking ASSESS BUSINESSES PROBLEMS & OPPORTUNITIES PRIORITIZE ISSUES SELECT ISSUES TO BE ADDRESSED DEVELOPMENT PLAN TO DEAL WITH ISSUES; ENSURING CLIENT BUY IN IMPLEMENT TRACK AND ADJUST

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22 sheet, stored on the drive. The responses were later cleaned up so that they would be clear and legible to the stakeholders accessing the information thereafter. The adjustment stage of the consulting engagement will be the responsibility of the client. Since EESA only operates once a year, it is unlikely that support can be sustained beyond the six week engagement. However, by tracking the clients every six months, the tracker can point the client towards support that is available such as the Ekasi Network and the Business Place. Some of the EESA student consultants based at University of Western Cape have also expressed interest in following up w ith the clients and continuing to assist them in areas where they continue to struggle. These students have access to the client database and the tracking reports. O bjective T wo: EESA and partners better understand the utility and impact of their services Interviews The second objective of my practicum was to provide feedback to EESA by interviewing EESA clients about their experiences with the program. I gathered information for this objective through interviews with the participants as previously desc ribed. Once interviews were compiled, the Reflections on Methods Phone Interviews Initially, I had hoped to conduct focus groups or face to face interviews with the former EESA clients. Up on further thought and consultation with my advisor, I decided that it was more practical to conduct phone interviews with the clients. One reason was because I could reach far more people by phone than I knew would meet me in person at a given location. Entrepreneurs are busy people and they would be less likely to drive out of their way to meet me than to take 10 minutes out of their day to speak to me on the phone. Furthermore, the phone interviews I conducted with them were the first of many phone int erviews that were a part of the newly developed tracking system. By beginning the process over the phone, I could test the effectiveness of this method and see how clients responded to it. I could also ask them if they would be willing to participate in six months time. All of them were very willing, which demonstrated the effectiveness of the method. One concern that I have regarding the continuation of the phone interviews is the validity of the responses that my South African counterpart will receive in six months when she conducts the phone interviews for a second time. I believe (and have been advised) that former clients may have been more responsive to me because I have an American accent and I claim to be calling from EESA. They may be less will ing to share sensitive information with a stranger calling with a local accent, even if she uses the name EESA and explains exactly what she is doing.

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23 However the woman who was hired to complete the tracking forms every six months is the personal assista nt to Luvuyo Rani, who is very well known and trusted in the area. This may ease any potential hesitation of the clients. In Person Interviews I conducted 12 in person interviews with the clients that had most recently participated in the EESA program. All of the interviews went very well, and all of the clients were extremely happy with the program. Since I was the one who originally interviewed and selecte d them to be a part of the program, and they knew that I had participated in EESA, I had to take into account that there was probably an element of interviewer bias in the responses they were giving. Although I asked th e majority still gave overwhelmingly positive responses. Methodological Limitations Small sample g roup I was only able to conduct face to face interviews with a limited number of participants (1 2 ). Although this was 75% of the 2015 clients, it was not a representative sample of clients, as it only represents one year of operation. Other years had different consultants and may have had different experiences with the program The interviews that I conducted over the phone with previous clients were less in depth and aimed program. Response bias All of the clients that I interviewed knew that I was a part of the EESA program. Indeed, I had conducted many of their acceptance interviews so they had a sense that I was heavily invested in EESA. As a result, I was cognizant of the fact that they may have been answering my questions with a positive bias so as not to appear ungrateful or impolite. To combat this, I tried to build trust with them prior to the interview, and ensured them that their responses were helpful in improving the program for future clients. I asked specifically about limitations of the EESA program to give them a platform to voice all of their comments, not only the positive ones. Phone interviews Valid phone interviews are difficult to conduct because it is difficult to build the rapport with the interviewee before you dive into asking questions. I was aware that I was calling them during their work day, so I always offered to call them back whene ver was convenient for them, but even then, the conversations were sometimes rushed It was also difficult to know the validity of the responses because there were no visits made to the work place. I had to assume that clients were giving a positive slan t to their responses because they

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24 were speaking to an EESA representative about the status of their business, which EESA had tried to help improve. Most clients would like to report improvement, even if there was little success that could be attributed to the program. 6. R ESULTS In this section I will present a number of findings gathered from the research conducted with the clients. I will begin by noting the current status of the clients. I will then move on to discuss the value of EESA, through the percep tion of the clients. contrib ution to the broader picture of entrepreneurship and enterprise development in South Africa. Although EESA is a small and isolated program, the value that it creates can help inform other p rograms and interventions with similar goals. Baseline Results Overall, I attempt ed to interview 70 former clients. I was able to interview only 51 They can be categorized as follows: No. of Clients Interviewed In person Interview Phone Interview Unable to Interview Total 12 39 19 70 A summary of those still in business is as follows: No. of Clients still in business No. of Clients out of business Interviewed Unable to Interview Total in business % of Total Interviewed Unable to Interview/locate Total out of business % of Total 46 4 50 71 .4 % 5 1 5 20 27.1 % Note: Over the course of three weeks, I made mul tiple attempts to contact all 70 former clients for whom I had contact information There were some clients that could not be contacted because their phone number was changed and they had no online presence. These, I classified as out of business. Other clients, I was able to contact, but unable to interview because we could not find a convenient time to talk. Some indicated that they were no longer in business, while others still had operating businesses. They are classified in the above chart with this in mind. Recent studies have indicated that the rate of business startup failure in South Africa is high. In 2014, the Trade and Industry Minister Rob Davies acknowledged that five out of every seven small businesses in South Africa fail within the first year (May e, 2014). There are many reasons why a business can fail, and inv estigating the influences that led former EESA clients to shut down their businesses is outside of the scope of this report. However it is interesting to note that the percentage of EESA bu sinesses still in operation is more than 70%, which is a tremendous statistic when compared to the average in South Africa. Interestingly, all of these businesses have been in operation for at least a year, since it is a requirement of the participation i n the EESA program. This means that statistically there is a lower likelihood that they will fail than during their first year.

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25 More information about the baseline information can be found in A ppendix 5 Findings from interviews reveal that EESA clients are generally turning a monthly revenue to cover their costs and report that their business has improve d since they participated in EESA. Information regarding their operations are self reported and difficult to verify. As tracking continues to take pla ce, trends will become apparent and more insight can be gleaned. The Impact of EESA The results of my research found that EESA clients benefitted from the program in three distinctive ways: 1. Business Skills: These refer to skills relating to the operations of their business. Skills include sound business practices such as bookkeeping, as well as developing systems and structures that could help the business run more efficiently. 2. Personal Skills : Skills that are less tangible and are related to the unique experience of being an entrepreneur. These include creati vity, confidence, risk taking organization t o manag e several things at once. 3. Analysis /documentation : This refers to the consultants analysis and d reference and use. Figure showing the results derived from the EESA engagement, according to clients. The key impacts are in the enhancemen t of business and persona l skills, and the documentation of the b usiness

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26 1. B usiness Skills S tudies have demonstrated the importance of entrepreneurial education for small business owners. In fact, many studies point to the lack of business skills as the most important impediment to running a successful business (GEM, 2011). Most entrepreneurs in South Africa have not been a part of any business training prior to the startup of their business. An overwhelming number of business owners have taught themselves the skills they use in their business. This is reflected in the diagram below, where BSM1 represents the least sophisticated businesses and BSM7 refers to the most sophisticated small businesses. The entrepreneurs in BSM6 and 7 have achieved the highest post matric qualification and additional training courses, whereas those with smaller businesses have almost exclusively taught themselves. We can conclude that most training and education entrepreneur s receive, the more developed and sustainable their businesses are likely to be. The EESA program emphasizes improvement of business practices as a core functioning of the program. This was reflected in the f indings from the interviews conducted with for mer EESA clients. The EESA clients that were contacted varied in the years that they participated in EESA, as demonstrated below. Graph displaying skill acquisition according to level of business sophistication (Finmark Trust, 2010).

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27 YEAR OF PARTICIPATION NO. OF CLIENTS INTERVIEWED 2009 6 2010 5 2011 3 2012 1 2013 8 2014 12 2015 16 TOTAL INTERVIEWED 51 This is significant in that there are some clients who participated in EESA very recently, whereas for other clients it had been up to six years since participation. R esponses might show which elements of the EESA program have persisted o ver time, as opposed to respondents within the same year. Although most of the interview s the status of their particular business, one of the key questions was What was the most impactful part of EESA The responses to this question overwhelmingly relate d to the business skills that were acquired Results are presented below. Each gave multiple responses to the above mentioned question. MOST IMPACTFUL PART OF EESA NO. OF RESPONDENTS Bookkeeping 17 Structures/systems put into place 8 Discipline in practicing business skills 8 Branding 8 Marketing 8 Seeing the business from an outsiders perspective 5 IT skills/website 4 Understanding finances/using financial information to make good business decisions 3 Time management 3 Networking 3 Pricing 2 Identifying strengths & weaknesses 2 Growth strategy 2 Gave direction to the business 1

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28 MOST IMPACTFUL PART OF ESSA NO. OF RESPONDENTS Business skills 54 Entrepreneurial skills 13 Documentation 5 According to the above chart, we can imply that the most obvious or memorable impact of the EESA program was the business skills that the clients developed Out of all of the responses b usiness skills were mentioned 54 times, where as skills related to intangible benefits, or entrepreneurial skills were only mentioned 13 times and documentation of the business, was only mentioned 5 times. Face to face interviews with clients from the current (2015) year also made reference to business skills as the prim ary positive feedback of EESA. Of those interviewed one week after the closing ceremony, b usiness skills again featured prominently, as is demonstrated below. 0 2 4 6 8 10 12 14 16 18

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29 BUSINESS SKILLS DEVELOPED BY EESA CLIENTS Bookkeeping Social media marketing IT skills Balan ced tendering with private customers Budgeting Unpacked business challenges to set up a clear way forward Pricing Sales Creating systems and processes Understanding how/when to stock Looking after assets Inventory management Logo development Relocation of shop Creating and growing customer databases Development of business plan Separated personal and business bank accounts Renovation Noting down and keeping appointments Identification of strengths and weaknesses Hands on/on the ground /tailored advice Website development From these findings we can conclude that the most prominent contribution of the EESA program, as systems and struct ures that were put in place to help the businesses run most efficiently. 2. Personal Skills Findings also revealed that entrepreneurs gained a number of personal skills through the EESA program that contributed to their entrepreneurial drive Th ese skills ar e less tangible than business skills, but are vital to the success of an entreprene urial venture. Investing in personal or intangible skills is a sustainable strategy because it builds the capacity of the person behind the business, rather than the busine ss itself. If the business is ultimately unsuccessful, the entrepreneur will go on using these comp etencies in their next venture. Unfortunately, capacity building in this form is often overlooked in entrepreneurial programs. Most of the entrepreneurial training offered in South Africa emphasizes business skills and often results in training people to be competent corporate workers rather than entrepreneurs. A study by Shay and Wood, 2004 demonstrated how young South Africans believe significantly less in themselves as entrepreneurs compared to similar developing countries such as Argentina, India, Brazil and Mexico (Isaacs, 2007). The majority of South Africans have grown up with little home experience of entrepreneurship, so they f ind it difficult to view them selves as such Although black South Africans constitute the majority of the potential labo r force in South Africa, they represent a disproportionately low percentage of the entrepreneurial initiat ive (Co, 2006). Their disadv antaged position historically and the structural inequality that remains in the country plays a role in this low rate on entrepreneurship. It is likely that many potential entrepreneurs lack the confidence to take risks and develop their potential. It is crucial that entrepreneurs in South Africa increase their capacity in entrepreneurial skills to succeed in their venture. Several clients indicated that they built on a number of these skills during the EESA program. These are shown in the chart below.

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30 INTANGIBLE BENEFITS MENTIONED BY ENTREPRENEURS Made clients take their business more seriously Built trust with consultants; felt they could be honest about the reality of their business Proactive Helped clients to take ownership of their business Assertive Built their confidence in the business Encouraged clients to follow up Encouraged creativity in marketing Build their innovativeness Opened their eyes to the possibilities Pointed out strengths and weaknesses Took them out of their comfort zone Helped change mindsets Increased their work ethic; through the demonstration of a strong work ethic Helped practice good habits Felt empowered through the partnership with the consultants Increased their drive to achieve Clients could bounce ideas off consultants acted as a sounding board Made them more ambitious These results indicate that there is value in the EESA program that goes far beyond business skills training Many of these skills are embedded into the process consulting strategy used during the engagement For example, one client n oted that the consultants became like his brothers and sisters d he felt very comfortable sharing informa tion and being vulnerable with them so that they could address the root problems that were hindering his business Another client, who owned a b eauty salon noted that she was originally very nervous about the consulting engagement. In the follow up interview, she noted : They made me feel comfortable they going to think of this place? They made me feel very very comforta innovative Through the consulting engagement, grew exponentially. With the assistance and encouragement o f the consulting team, she was able to organize her finances so that she could understand their significance and make business choices that reflected this understanding. During the six weeks, she even began renovating the entire salon, demonstrating her c onfidence in the business and her drive to achieve Another client, Innocent noted: through the EESA program made me feel like, okay, still I can still make

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31 Such statements demonstrate the intangible benefits that EESA provides. Though Innocent profited from th e business skills that EESA helped him understand and use, h e also became more hopeful and confident in his ability as a successful entrepreneur. 3. Business Docum e ntation Results also showed that the analysis and documentation of the business was an extremel y valuable part of EESA. Each consulting group produced a final report for their client which was given to them at the end of the six week engagement. The final report was written to the client to be used as a refer ence for them. It included the complet e analysis of the business through the SEE Model fra m ework which was previously unseen by the client, as well as a write up of all the deliverables that were implemented. 1. SEE Model The SE E Model is a complete analysis o f the business. It is primarily used as a tool to help the consultants holistically understand the business, and thus allow them to diagno se it appropriately based on key strategic issues (see p. 14 for more description). However results of interview with clients and former cli ents reve aled that the SEE Model proved very useful for them also as it allowed them perspective. One former client said that the SEE Model enabled him to He fur ther explained that when you are the founde r and director of a business, your life becomes very concerned with the day to day operations of the business I t is sometimes difficult to see the business as a whole, and keep tabs on its strengths, weaknesses and direction The SEE m odel gave him this perspective and enabled him to develop a strategy. Other clients also expressed the value of documenting the business. One client Innocent stated : nal report), so this is also where you stated that Innocent needs to improve on this. You know, so by doing that you give me a time frame that okay, from now up until four months I have to see whether I have improved on what they have told me is my weakness is. If I can improve on this then definitely the busines s Another client noted : there are things in there that I thought okay, I need to improve on this 2. Deliverables In most cases, deliverables were impleme nted during the final two weeks of the program. This did not provide the clients with a lot of time to try out the new processes and get used

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32 to them before the engagement came to a close. The final report and documentation of the deliverables was essential in cases like this as it served as a reference point because it contained all the information relevant to the implementation of the d eliver ables. Some such information is included in the chart below. RESOURCES INCLUDED IN FINAL REPORTS IT instruction manuals Helpful websites to be used for research Templates for emails/solicitation/appreciation to customers Timelines Screenshots of computer screens to help guide new computer users Calendars with planning for the upcoming year Documentation of ideas suggested during brainstorming Training manuals Advertisements Copies of administrative forms developed Customer service etiquette manual Hiring procedures Additionally, the resources provided in the documentation and final reports give the clients a sense of pride in their business. Some noted that documenting their business helped them to see their business as a functional and legitimate enterprise that can be sustained into the future. This is especially true of th ose businesses that were started as survival businesses and were not developed with a plan for growth The documentation enhanced their drive to achieve and set more ambitious goals. It also gave them a vision for what their business could be 7. D ISCUSSION Holistic Training I t is evident that EESA plays a beneficial role in supporting entrepreneurs in South Africa. The feedback gathered from clients indicates that the program made a lasting impact on them and their business es This is even true of clients whose b usinesses are no longer in operation. Several such clients identified skills and ex ercises that they learned through EESA which were still a p plicable to the new ventures or jobs that they currently hold Similarly, the 2015 clients demo nstrated kn owledge and skills gained both tangibly throug h business skills and intangibly through the strengthening of some of their entrepreneurial skills Landazi (2002) proposed that entrepreneurial performance is a function of motivation, appropriate business s kills and entrepreneurial skills. Despite the numerous government programs and nonprofit initiatives launched in South Africa to support entrepreneurs, few focus on essential skills that impact small ventures in the long run. Government programs focus primarily on the business skills w ithout much emphasis on improving some of the more intangible yet crucial skills required to start up a business in a South African context. Lazdani notes that training for entrepreneurs

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33 need s to be understood as 2002) The legs that comprise of holistic entrepreneurial training are outlined below Skills required for entrepreneurial training Source: Lazdani et al, 2002 Tailored support for entrepr eneurs Currently, there are very few government programs that provide on the ground support for entrepreneurs in South Africa. S tudies have shown the importance of interventions that are ased training for entrepreneurs can lead to better business practices, but has only a limited effect on business performance and sales particularly in the long run (Bruhn and Zia, 2011 ). C onsulting and mentoring services has a positive impact on both the success of small business es in terms of improved business productivity, levels of confidence and attitudes (Bruhn et al., 2013) The need for tailored support was emphasized during the interviews I conducted with EESA clients. O ne client commented on the abundance of government programs, though none of them provided assistance that addressed his particular challenges. This is It fills in specifically where government programs are lacking by providin g free services to entrepreneurs summed this point up during an interview What EESA has done just going out there, just being with us, evaluating, doing everything, coming with the real situation of what each and every business is confronted by, and then coming with information. That is where the issue of funding comes in after that. Is this business qualified for funding or not? T he client infers that t he government programs are not doing enough to address the real issues that entrepreneurs face. What is needed is on the ground, hands on assistance in areas that directly relate to the unique challenges that each entrepreneur faces. Transitioning from su rvival enterprise to sustained enterprise Through business. As Dr. Morris (foun who would turn down a corporate job if it was offered to them Research shows that these are the kinds of entrepreneurs who are most likely to be successful in the long run and more likely to create jobs for others, which is what ultimately benefits the national economy ( Baum and Locke

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34 2004). In reality however, it is hard to assess levels of passion or commitment in an interview. In South Africa, the majority of small business owners claimed that they started a business because they either could not find employment o r they lost their job ( Finmark Trust 2010). Several of our clients fell into this category of and would be considered survival ent repreneurs But interview s with these clients revealed that their capacity for entrepreneurial skills were built and their enterprises are actively being transformed into sustained enterprises. Entrepreneurial ventures are not all created equal. In countries like South Africa, where unemployment is all too common, m any people will choose to start a business because they do not have any other option. Others are calculated in their decision. They plan their business for years before deciding to start it. They perhaps have an innate disposition to be entrepreneurs, w hereas other entrepreneurs must learn along the way. In other words, some entrepreneurs are survival entrepreneurs while others are opportunity entrepreneurs. Feedback from clients suggest that EESA plays a significant role in helping survival entreprene urs transition into entrepreneurs who can develop more sustained enterprises. Below is a case study of one client who started her business out of necessity but has begun transitioning it into a more growth oriented business Figure showing the outcome that EESA contributes to in its work with survival enterprises. As enterprises are sustained, economic empowerment ensues and society benefits overall.

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35 JAM BOUTIQUE Judy worked at First National Bank (FNB) for ten years. She never thought of owning her own business. In 2006, she went through a very difficult d ivorce which forced her to resign from her job. Fortunately, as she was handing over her clients to another colleague at FNB, the client mentioned that they were looking for a company experience as a treasurer, she applied for the job and started working. After five years, the company ran into some financial difficulties and had to shut d a job, and supporting two children, a nd was not receiving any child support from their father to assist with expenses. Eventually, something clicked inside of her and in desperation, she went to a designer from whom she used to buy clothes She asked if she could give her some old stock with the remaining 500 rands that she held in her pocket. She sold the stock out of the back of her car to office buildings where corporate workers worked. Surprisingly, it sold quickly, and she realized that she was good at what she was doing. She loved fashion and she loved making people feel good about themselves. She also was very personable so she could easily market herself or convince people to purch ase an item that they were hesitant about. Her business was sustainable most months. She made enough to pay rent, eat and buy new stock each month. This is where Judy was when she applied to take part in EESA in 2015. The EESA t eam was hesitant to acce pt her i nto the program because she was a survival entrepreneur. She had created her job because she was unable to find employment elsewhere. But we saw passion and drive in Judy that we felt we could build upon, even though her business seemed rife with challenges impossible to address. Her EESA consulting team worked with her on a number of business skills that needed to be addressed such as bookkeeping, inventory management, presentation of inventory and marketing. Judy gained confidence and an incredible drive to achieve. She and her consulting team brainstormed about what the future might look like, and how she could move forward. In the follow up interview she spoke of progress she had made already. She is now selling at stationary markets rather than driving around. She has new suppliers and is no longer selling on credit. a Judy Another client who owned a hair salon was inspired by EESA to renov ated the entire salon and add a coffee shop to the salon. She claimed that she is much more assertive and proactive now than she demonstrate a rea l propensity for taking risks; a characteristic that she struggled with prior to EESA. Case study of JAM Boutique de entrepreneurs into opportunity entrepreneurs

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36 on enterprise development stretched beyond the small c hanges that are mad e in the life and business of an entrepreneur. economic development, by placing survival entrepreneurs onto a path towards growth. S urvival entrepreneurs have the potential to develop, if provided with a ppropriate support and training. s economy if they are not excluded from programs in place to support entrepreneurs (Choto 2014). Societal Benefits The societal benefits of entrepreneurship are abundant. Recent research has focused on social entrepreneurship means to create social change and stim ulate economic growth. Most of these social enterprises are developed with the intent of helping their community, often those who are underprivileged. Entrepreneurs may start their enterprise to meet social needs or improve quality of life while generati ng enough revenu e to be sustainable (Hitt, et al., 2011) The emergence of social entrepreneurs is no surpri se. A common motive o f entrepreneurs is their dissatisfaction with the status quo, a desire to improve things, and a be lief that there is a better way (Morris et al, 2011) This can be applied to any part of life or society so it is natural that many entrepreneurs develop enterprises or organizations with the intent ion of addressing a social ill or leveling inequality. There are a number of EESA clients who would be considered social entrepreneurs. Thobeka opened up an Educare Center (daycare and preschool) because she saw that there were too many young children playing out on the streets Although the center is run li ke a business, the main objective is social, and many exceptions are made for children whose families are unable to pay. founded ery that produces spinach bread. The primary motive was to create healthy bread for people living in the townships. Lufefe took the risk of producing a locally sourced, tasty, yet healthy spinach bread in order to encourage a healthier diet among townsh ip dwellers The idea took off and has expanded rapidly spreading into different townships and local shops. But e ven the EESA businesses that are not primarily developed as social businesses often have a strong social component or a goal to be more socia lly inclusive. Below is a chart with some examples of social engagement of the 2015 clients

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37 Chart of social engagement among entrepreneurs CLIENT SOCIAL ENGAGEMENT Deep Settle Design Studio Wants to set up an internship teach high school students about graphic designing, screen printing, embroidery and branding Graphic designing is not taught at school so they want to expose young people and provide skills training. Galada Technicians Wants to start a program to include recently released prisone rs in skills training (car mechanics) so that they do not reoffend. Also wants to include youth in the skills training program as they have the highest unemployment rate JAM Boutique this is a segment of society that most designers and retailers to not cater to. They often have to pay for clothes to be made be made since their sizes are rarely in stock. MQ Furniture Has taken on 4 interns to help him at his furniture workshop. After the inter nship is over, he will hire 2 of the interns, provided much needed employment Mzamo Educare Center Offers free day care/preschool to children whose parents are unable to pay for them. Nkomshish Laundry Donates clothes that he collects to charities in Khayelitsha Allows 10 of the poorest homes in Khayelitsha to do their laundry at Nkomshish on Tuesday mornings without charge. Queen Bee Hair Boutique Began the business primarily to empower uneducated women and provide employment Zazithumtha Constructio n Plans to start an internship program to train and mentor high school students in drawing plans (for buildings). They identified this as a need because there are no programs in this field so there are few students who choose to study this at university. Those who do are very unprepared and struggle a lot. Many of them change majors or drop out altogether. T he clients were nev er prompted to speak of their social involvement. Offering this information suggests that it is an important part of their business, and that they are thinking strategically about how their business is embedded in the wider community. This infers that through impact on entrepreneurs, it is, in effect supporting the wider community.

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38 8. L IMITATIONS OF EESA During the face to face interviews with 2015 EESA clients, interviewees were asked if they had any feedback regarding how EESA could be improved. I asked the clients directly because I found th at most of the respondents restricted their responses to only positive feedback unless specifically prompted them to discuss challenges they faced. Pages 37 38 illustrate some of the main challenges expressed. A complete list is found in A ppendix 4 A number of themes were brought up consistently during interviews with clients. Many expressed an initial discomfort in the amount of questions they were asked. Although they ultimately understood the significance of asking so many questions, a number of the clients suggested that student consultants should offer a better explanation of the program and that they share expectations before the engagement began. Most entrepreneurs also agreed that the engagement was too short. Since deliverables are onl y implemented during the final 2 3 weeks of the program, there is little time to get used to the new systems and procedures or to ask questions that might only come up once the client becomes familiar with the new process. During one interview, an owner o f a real estate company expressed his frustration with a new financial management program that his EESA team had installed on his computer. Although he saw the benefit of it, he was unable to work out how to use it effectively. EESA had already ended so he could not ask for advice. While I promised to direct him towards someone who could help him, it was easy to imagine that he, like others would not follow through with the deliverables because it was taking too much time away from other tasks that neede d to get done. Following from this point, is the critique that there is no follow up of clients after the initial engagement. Many of the clients expressed disappointment that the end of the program was so final. They hoped that there was someone that t hey could call, or someone that would come around to check on them. This feedback was helpful in justifying the tracking system that was subsequently implemented during my final three weeks.

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39 EESA IS TOO SHORT start making changes, the to change mindsets Some things take longer still learning THERE NEEDS TO BE FOLLOW UP Time was not on our side if we had so much more we could have done Making and breaking habits is check in. I was going to ask if you could just pop in every six months to check on me Some of the systems would be great if there was someone we could call I think I need to be held accounta ble

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40

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41 9. R ECOMMENDATIONS F O R THE EESA PROGRAM A number of recommendations can be made to the EESA management team based on the feedback generated during my research. s goals Many o f the clients actually know very little about EESA before they are accepted to participate in the program. During the initial interviews, we made a point of asking them what they know about EESA, and then filling in the gaps explaining how t he program is structured, what the requirements of the entrepreneurs would be and ensuring that t hey are willing to share all of their business information with the student consultants. However I still found that the clients had a l ack of understanding ab out why the consultants asked so many questions, and what the information would be used for. As a result, they were hesitant about sharing the information with the consultants. C onsultants needs to be clear about the goal of EESA and the process it will take to reach the goal. During the first week of the program, the consultants must inform clients why t hey must ask so many questions and what the outcome of the questions wi ll be for the client. A timeline might be developed with the client of how the f ollowing six weeks will be laid out. This will lessen the chances of the client becoming frustrated and pulling back from the consultants, or even dropping out of the program altogether Stress the importance of process consulting The philosophy of EESA is based on the principles of process consulting. Process consulting requires an actively participating client The role of the consultant is to help the client to help themselves. In a context like South Africa, this is important because it will enable the client to be more independent when facing problems in the future (Kykyri, 2008). Successful process consulting rests on the establishment of trust between the client and the consultant. During orientation and the first week of entrepreneurial training, process consulting and the establishment o f trust needs to be emphasized among the consultants. Perhaps a workshop may take place for consultants to practice this process. Once trust is established, clients are much more likely to share relevant information This will strengthen the analysis and the solutions that are designed. Using a consulting strategy that depends on a highly involved client ensures that the impact of EESA is sustained beyond the length of the program. The client is more likely to claim a sense of ownership over the solutions put in place because he was a part of their design and implementation.

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42 Connection between client and service provider must be established E ntrepreneurs in South Africa often have no access to entrepreneurial training program or a tailored business advice that will adequately prepare them to run a sustainable business. EESA is such a useful program for them because it fills in a gap that is not provided through other cha nnels. Since EESA is only six weeks long, it is important that connections are made between the clients and service providers who are available to offer them advice and a continuity of training For example, the Philippi Business Place is an entrepreneu rial hub that can provide entrepreneurs with free business advice, legal advice, free computer and internet use, printers and photo copiers as well as desk space for the entrepreneurs to work. Conversations with clients revealed that not everyone knew tha t these services were available to them. Consultants need to ensure that their clients are aware of these resources and giv e them contacts that they could use to seek advice This may encourage them to follow through with the deliverables Tracking sys tem should be followed through It has been known among the EESA management for many years that a tracking system should be in place to measure the impact of EESA. This year (2015) I put in place a client database that included contact information, final reports and tracking forms for all of the former clients that we had access to. Someone was then hired to track the status of the clients every six months. Through the initial tracking process (August, 2015) I learned that tracking is not just useful for the EESA program, it is so the follow up gave them a chance to reflect on what they had learned during the program, and what they needed to be reminded of Several asked that I send them a copy their final report so that they could look through it and follow through with some of the deliverables that they had neglected previously. F ollow up can be seen as a way of holding the clients accountable. Knowing t hat someone will be calling to check on them may g i ve them an added incentive to keep up with the tougher deliverables which clients struggle the most to follow through with. Perhaps with time, the clients may actually gain a clearer understanding of the r ecommendations and see them through more experienced eyes, so regular follow up would be beneficial on both ends. 10. F URTHER RECOMMENDATIONS/CONCLUSION The impact of EESA raises a number of ideas about what must be done better in South Africa to enable busine sses to be more successful. Currently, there are more businesses closing than starting in South Africa, which indicates a n environment that does not favor entrepreneurial success Although many of the factors contributing to this environment are beyond the scope of the EESA unique structure and contribution

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43 Support for entrepreneurs Consulting Advice : Support for entrepreneurs in South Africa rarely consists of advice that is tailored to the specific business. EESA has shown that analyzing a business and the business owner, and offering tailored advice based on the analysis is a more effective way of supporting small businesses. Government funded programs should learn from the EESA experience and offer more tailored advice based on the context and challenges that the entrepreneur is facing. Entrepreneurial training : Training needs to be designed to meet the needs of entrepreneurs. This means that it needs to be more than just teaching business skills but also needs to build entrepreneurial skills and serve to bolster the motivation of entrepreneurs This holistic a pproach is an investment in the entrepreneur rather than just the business. Even if the business s hould close, the intangible skills built in the entrepreneur will remain and benefit future initiatives or professional mindsets. Invest in the survival /necessity entrepreneurs: Many of the programs for entrepreneurs do not focus on survi val entrepreneurs, or those who have created a venture out of necessity. A FinMark Trust Small Business Survey found that only 28% of business owners had ever heard of an organization that supported small businesses. Most of those who had heard were more sophisticated businesses that had received a higher level of education and training. They were often better connected to support systems ( Finmark Trust 2010). This means that the survival enterprises who needed the most support, were the least likely to have access to it, thereby decreasing their likelihood of developing into a more sustainable enterprise. Howe ver research has shown that these e nterprises make a sig nificant contribution to the economy and many of their services and goods are depended upon in the townships (Choto et al, 2014). Although they have a lower growth orientation, they should not be overlooked but should be included in programs aimed to supp ort entrepreneurs. This may require consultants and programs to design different strategies and tools to be used for entrepreneurs at different levels of business development. L ogic mindset s motivations and skillsets may differ significantly between survival entrepreneurs and growth oriented entrepreneurs (Berner et al. 2012). Even so, they play a valuable role in the economy and should not be overlooked. Consistent support and follow up is vital: Experience with EE SA has found that even when entrepreneurs are given support though the EESA program, there needs to be consistent follow up. A follow up system will ensure that the entrepreneurs stay on track and advic e can be given when questio ns and challenges arise. Entrepreneurial hubs like the Business Place are partially fu nded by the government, but most are underfunded and cannot provide the necessary tailored support required by the entrepreneurs. Additionally, the awareness of these hu bs is lower than it should be. Many of the entrepreneurs with smaller

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44 and less developed enterprises do not know th at support is available to them. The importance of following up and tracking entrepreneurs needs to be understood by the South African gove rnment Greater funding opportunities should be available to these service supporters, and there should be a heavier emphasis on the marketing aspect of the hubs, so that the entrepreneurs who most need help ar e not neglected. Investing in education for a fertile enabling environment entrepreneurial activity. Studies have shown that there is a significant positive correlation between high educational levels of the entrepreneur and the level of sophistication of the small business ( Finmark Trust 2010). The government must invest in the education system if they are depending on entrepreneurship to drive and strengthen the economy in the 21 st century. It will be the sophisticated entrepreneurs that will make the greatest economic contribution. The quality of education in South Africa is alarmingly low. Unsurprisingly, it is worse in the townships and in historically disadvantag ed areas than it is in the cities and white dominated suburbs. There needs to be a leveling of the playing field, so that the historic ally disadvantaged communities d o not continue to miss out on quality education. Additionally, the government needs to ensure that there are appropriate r esource s allocated to the schools, and that the teachers are adequately trained. Lastly, the education system should be broad and encourage students to pursue a range of possibilities post secondary school including starting their own business. Currently, secondary schools and society at large tend to stress f urther education at the university level as the only pathway to professional development and success. Students should be encourage d to explore other forms of employment, and schools should equip them with th e skills and t ools they may need to do this (Isaacs et al. 2007; Ladzani, 2002) The future of South Africa depends on challenge; they are the ones who take responsibility for change; they are a hope for a better life, for the end of poverty, for the destruction of discrimination, they are the quie 2013). But the successful entrepreneurial venture depends on an enabling environment. The EESA pro vides a model of how to support entrepreneurs at one stage of their entrepreneurial journey, but the South African government needs to develop a plan that transcends all sectors of society, fostering a holistic entrepreneurial culture. This must take plac e at the micro and the macro level, as they are intrinsically inter c onnected. Only then will the potential of empowerment and transformational entrepreneurship be unleashed.

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45 PERSONAL REFLECTION EESA was an entirely new and challenging experience for me My background is in community developme nt where change is incremental and happens over a long period of time. Ideally, it is also community driven and non interventionist. I struggled with EESA for a number of reasons, which evolved over the course of time that I was there until I finally understood what it was we were trying to accomplish in the townships, and what we were not Initially, I found myself constant ly compari ng EESA to the development initiative s that I was more familiar with. EESA s eemed to conflict with all the fundamental rules of community development W e were telling our clients where the weaknesses in their business were, and then developing solutions to address these weaknesses. I t seemed to me that the approach was very top down and in terventionist We as consultants proposed a minimum of four changes, which needed to be entirely implemented within six weeks. I could see students start to pay less attention to their role as process c onsultants, and start to anxiously implement new systems and processes single handedly, before the six weeks were up. Again, this was contrary the principles embodied in long term, client led change. However, around a month in to my field practicum, I h ad a mindset shift. I realized that in my current role, I was no longer a community development practitioner. I was a consultant; and the objectives and methods used as a consultant are different from that of a development practitioner. Rather than com paring my role to other roles, I began to appreciate the role of the consultant for what it was. The entrepreneurs we worked with needed an intervention, which is why they signed up for EESA in the first place. They were expecting that their business was to be analyzed, and improved by this group of consultants. Additionally, there is great value in an interventionist approach to change, in some cases. Helping entrepreneurs see their business from an outsider s perspective, and showing them the behavio r change needed to propel them forward is invaluable for entrepreneurs. Many of the entrepreneurs that we worked with were caught in a cycle of business norms and practices which inhibited them from seeing where and how growth and efficiency is possible. EESA provides that perspective, and the tools needed to propel the business towards growth. I realized that it is beyond the scope of EESA for consultants to walk with the business ov e r the long term. Rather, we set th e business on a new course and show them the tools neede d to flourish on that course Moreover, the value of EESA became clear through the interviews that I had with the entrepreneurs after the program had ended. I realized that broadly speaking, consult ants had accomplished exactly what it had intended to. They p ro vided perspective to the entrepreneurs, and empower ed them on their upward journey. have attempted to demonstrate through t his report

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46 R EFERENCES : Abor, J & Quartey P ( 2010 ) Issues in SME Development in Ghana and South Africa International Research J ournal of Finance and Economics, Issue 39. Baum, J. R & Locke E. A ( 2004 ) The Relationship of Entrepreneurial Traits, Skills and Motivation to Subsequent Venture Growth Journal of Applied Psychology. Volume 89, No. 4 587 598 pp. Berner, E G omez, G, & Knorringa P. ( 2012 ) Helping a Large Number of People Become a Little Less Poor: The Logic of Survival Entrepreneurs. E uropean Journal of Cevelopment Research. Volume 24 No. 2. 382 396 pp. Brinkerhoff, D W. ( 2004 ) The Enabling Environment for Implementating the Millenium Development Goals: Government Actions to Support NGOs George Washington University Conference: Washi ngton DC Bruhn, M & Zia B ( 2011 ) Stimulating Managerial Capital in Emerging Markets: The Impact of Business and Financial Literacy for Young Entrepreneurs World Bank Policy Research Working Paper No. 5642. Bruhn, M ., Karlan D. & Schoar A (2013. June). The Impact of Consulting Services on Small and Medium Enterprises: Evidence from a Randomized Trial in Mexico. The World Bank Development Research Group. Policy Research Working Paper, 6508. Choto, P Rober t son K. Tengeh R. K. & Iwu, C. G. ( 201 4 ) Daring to survive or to grow? The growth aspirations and challenges or survival entrepreneurs in South Africa Environmental Economics, Volume 5, Issue 4. 93 101 pp. Statistics South Africa. (2012. December). City of Cape Town 2011 Census Cape Town. Retrieved from https://www.capetown.gov.za/en/stats/Documents/2011%20Census/2011_Census_Cape_Town_P rofile.pdf City of Cape Town: Economic: Social Development & Tourism Directorate, Economic & Hu man Development Department. (2009) Review of the Economic Dev elopment Strategy (EDS). Co, M J. & Mitchell, B. (2006). Entrepreneurship education in South Africa: a nationwide survey. Education + Training, Vol. 48 Issue 5 pp. 348 359 Coetzee, D Hildebrand, K Boulle, A. & Maartens G ( 2004 ) Outcomes after two years of providing antiretroviral treatment in Khayelitsha, South Africa. AIDS 2004, Vol. 18: 887 895

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47 Department of Trade and Industry (DTI). ( 2005 ) Integrated Strategy on the Promotion of Entrepreneurship and Small Enterprises: Unlockin g the Potential of South African Entrepreneurs. Pretoria, RSA Dhorat, I ( 2008 ) Umsobomvu Youth Fund, Assisting young entrepreneurs. Retrieved from : http://www.startupafrica.com/2008/09/umsobomvu youth fund assisting young entrepreneurs/ Ekmekcioglu, E ( 2012 ) The Impact of Entrepreneurship on Economic Growth. Unpublished manuscript, Kyrgyzstan Turkey Manas University. European Union. (2002) Training for Entrepreneurship. Brussels : European Commission Directorate General for Enterprise Fatoki, O O. & van Aardt, A. (2011) Constraints to credit access by new SMEs in South Africa: A supply side analysis. African Journal of Business Management Vol. 5 (4), pp. 1413 1425. Fatoki, O O. & Odeyemi A ( 2010 ) Which New Small and Medium Enterprises in South Africa Have Access to Bank Credit? International Journal of Business Management Vol. 5, No. 10, pp 128 136. Finmark Trust (2010). Finscope South Africa Small Business Survey. South Africa Gwija, S A., Eresia Eke C. & Iwu C. G. ( 2014 ) Challenges and Prospects of Youth Entrepreneurship Development in a Designated Community in the Western Cape, South Africa. Journal of Economics and Behavioral Studies. Vol. 6, No. 1, pp. 10 20. Hab berton, G & N otcutt K (2013) Unlocking the growth of SMEs and social businesses in South Africa. Impact Trust. Retrieved from: http://impacttrust.org.za/blog/unlocking sme and social business growth in south africa/ Herrington, M & Kew, J. (2 013 ) GEM South African Report: Twenty Years of Democracy. Cape Town: UCT Development Unit for New Enterprise. Herrington, M ., Kew, J. & Kew, P. (20 14 ) South Africa: The Crossroads a goldmine or a time bomb? GEM South Africa Report. Hitt, M A., Ireland, R. D., Sirmon D. G & Trahms C. A (2011, May). Strategic Entrepreneurship: Creating Value for Individuals, Organizations and Society. Academy of Management Perspectives. Volume 25 No. 2. 57 75 pp. World Bank. 2015. Unemployment, total (% of total labor force) Retrieved from http://data.worldbank.org/indicator/SL.UEM.TOTL.ZS Isaacs, E Visser, K, Freidrich C. & Brijlal P ( 2007 ) Entrepreneurship education and training at the Further Education and Training (FET) level in South Africa. South African Journal of Education. Vol. 27 pp 613 629.

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48 Kumar, D. ( 2013 ) Challenges facing Supply Chains in South Africa. KPMG; Cutting through Complexity. Retrieved from http://www.sablog.kpmg.co.za/2013/12/challenges facing supply chains south africa/ Kumo, W L., Rielander J. & Omilola B ( 2014 ) South Africa. African Economic Outlook: AfDB, OECD and UNDP. Retrieved from http://www.africaneconomicoutlook.org/fileadmi n/uploads/aeo/2014/PDF/CN_Long_EN/Afrique _du_Sud_EN.pdf Kykyri, V ( 2008 ) Helping Clients to Help Themselves: A Discursive Perspective to Process Consulting Practices in Multi party Settings. Jyv Askyla Studies in Education, Psychology and Social Research 330. Ladzani, M W. & van Vuuren J ( 2002 ) Entrepreneurship Training for Emerging SMEs in South Africa. Journal of Small Business Management. Maye, Matthew. (2014). Small Business in South Africa: Wha t the Department of Small Business Development Can Do to Stimulate Growth. South African Catholic Bishops Conference: Occasional Paper 35. Morris, M. H. (2014). Using the S.E.E. Model: A Guide to Consulting Teams. University of Florida Morris, M H. & Kuratko D. F ( 201 4 ) Building University 21 st Century Entrepreneurship Programs that empower and Transform In Kuratko, D. F., Hoskinson, S., & Wheeler, W. R. (Eds.), Innovative Pathways for University Entrepreneurship in the 21 st Century Pp 1 24. Bingl ey: Emerald Group Publishing Limited. Morris, M H., Kuratko D. F., & Covin J. G., ( 2011 ) Corporate Entrepreneurship and Innovation: Entrepreneurial Development within Org anizations, Third Edition. South Western, Cengage Learning. National Youth Development Agency (NYDA) ( 2012 2013 ) Annual Report. Ndedi, A A. ( 2009 ) Entrepreneurship and job training in South Africa: are tertiary institutions filling the gap? Journal of Comnpemporary Management. Volume 6 pp. 463 470. Nolan, A ( 2 003 ) Entrepreneurship and Local Economic Development: Policy Innovations in Industrialized Countries. Washington: Organization for Economic Cooperation and Development Pellissier, R & Nenzhelele, T. E. (2013). The impact of of work experience of small and medium sized enterprises owners or managers on their competitive intelligence awareness and practices. SA Journal of Information Management 15(1), Art. #551. Presidency Republic of South Africa. Accelerated and Shared Growth Initiative South Africa (ASGISA): A Summary Retrieved from: http://led.co.za/sites/default/files/documents/194.pdf

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49 SABC. ( 2015 ). Unemployment rate drops: StatsSA. Retrieved from: http://www.sabc.co.za/news/a/a30cc5004741c20685bfa5686e648436/Unemploymentundefined rateundefineddrop s:undefinedStatsSA 20151002 SBP Alert. ( 2014 ) A country at the crossroad towards better regulatory governance in South Arica. Issue Paper 2. Johannesburg South Africa Info. (2013). Black economic empowerment. Retrieved from: http://www.southafrica.info/b usiness/trends/empowerment/bee.htm#.VTKytCFVik Statistics South Africa. ( 2013 ) Millennium Development Goals Goal 2: Achieve Universal Primary Education. Pretoria: Stats SA LibraryCataloguing in Publication (CIP) Data Stevenson, H. H. & Jarillo Mossi J. C (1986) Preserving entrepreneurship as companies grow Journal of Business Strategy pp. 10 23 USAID. ( 2010 ) Retrieved from http://pdf.usaid.gov/pdf_docs/PA00JBC4.pdf Watson, M ( 2014 ) South Africa facin g Supply Chain Challenges. Communicate Personnel. Retrieved from http://www.communicate.co.za/_blog/Communicate_Blog/post/supplychain challenges/

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50 APPENDIX 1: Definition of SME in South Africa The most widely used framework in South Africa is the definition of the National Small Business Act 102 of 1996, which defines five categories of businesses in South Africa. The definition uses the number of employees (the most common mode of definition) per enterprise size category combined with the annual t urnover categories, the gross assets excluding fixed property. The definitions for the various enterprise categories are given as follows: poverty line. This category is considered pre entrepreneurial, and includes hawkers, vendors and subsistence farmers. (In practice, survivalist enterprises are often categorised as part of the micro enterprise sector). n the VAT registration limit (that is, R150 000 per year). These enterprises usually lack formality in terms of registration. They include, for example, spaza shops, minibus taxis and household industries. They employ no more than 5 people. terprise: These are enterprises employing fewer than 10 paid employees, except mining, electricity, manufacturing and construction sectors, in which the figure is 20 employees. These enterprises operate in the formal market and have access to technology. Small enterprise: The upper limit is 50 employees. Small enterprises are generally more established than very small enterprises and exhibit more complex business practices. electricity, manufacturing and construction sectors. These enterprises are often characterised by the decentralisation of power to an additional management layer. e summari sed as set out in Table 1 below (Pellissier 2013).

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51 APPENDIX 2: Tracking from for phone interview BUSINESS: Entrepreneur: EESA Client: Report Date: TRACKING FIGURES: Number of Employees Full time: Part time: Casual: Notes: Turnover: Notes: Profit: Notes: Facilities/Equipment/Transport Owned: Bookkeeping/Record Keeping System: REFLECTIONS: Milestones within the business Where do you see your business a year from now? To be completed every six months

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52 APPENDIX 3: Template for In Person Interviews Twelve in person interviews were conducted in August, 2015 I followed the general format listed below, though the interviews were very fluid so format differed depending on the nature of the client. 1. Explain the importance of tracking 2. Explain process consulting 3. Explain the system with the tracker/show them the tracking form 4. Ask if they are interested in taking part 5. Talk about where they would like to be in 6 months/one year (goals) 6. Talk about EESA. What did they appreciate, what could be improved upon? 7. Make sure they know that UWC is there and invested in them in they have any questions. 8. Make sure they know about the services provided at the business place, where they can seek advice (free of charge) and use the internet.

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53 APPENDIX 4: Critical feedback provided by clients Continued from page 37 38 Need guidelines Difficult to make habits and change mindsets in just a few weeks Need follow up too short We're still learning Need follow up Are we going in the right direction Needs accountability Hard to keep track of all the different parts that they wanted to talk about Difficult to change habits Too short Too short Difficult to prioritize EESA over work Wasn't a great diversity of skills on his team Too many questions in the beginning Team members didn't understand the cultural reality of South Africa We need to know in advance what to expect Should be some evaluation Too short Meetings were too short No follow up -difficult when implementing things that are not in your field Need follow up "Eh, you're like SARS" Misunderstanding about the expectations of EESA Difficult to prioritize EESA over work Didn't understand why they needed so much information Everything was implemented too quickly W hat were we trying to achieve Not enough time to get your head around these things Changing mindsets doesn't happen over night We wanted a lot from them but it was too short Spending too much time trying figure out this system that I can't get -wasting time If we had time, we could have done so much more Didn't understand the program Need someone there to ask questions to after it's over Thought they were interns Having trouble with the financial program that was implemented Asked too many questions t hat I wasn't sure I should give them Need follow up

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54 APPENDIX 5 : Baseline results from interviews Continued from page 22 Business Client Name EESA Client Year Still in operation No. of employees Turnover Profit Facilities/Equipment/Transport owned Bookkeeping Notes Amantande Tours and Services Mzwabantu Jeffrey Rameti 2009 Y 0 R10 20,000 None None Black Pride Events Thobile Nduna 2013 Y 1 R75,000 R20 25,000 laptop Excel Expanding business to rent out material/equipment for events Blackreign Communications Notukela Mzilikazi 2014 Y 0 0 0 laptop N/A Has not been in working much in 2015. Had a bad deal last year that set them back. Blaque Zar Yolisa Madubula 2015 Y 5 R80 85,000 R 23,887 restaurant rental, tables, chairs, braai, stoves, oven, hood Excel/bookkeeper on staff Started operating at new location in April Dalavega's Creations Buhle Mkoko 2014 Y 0 R2,000 ? 1 industrial sewing maching, 1 domestic sewing machine, 1 laptop Manual Deep Settle Fezile Retyu 2015 Y 3 R25,000 heat presser, rented office, 3 laptops, 1 printer, clothing rack, mannequin Excel Will move to Philippi Container in September Espinaca Innovations Lufefe Nomjana 2013/2014 Y 9 R40,000 R10,000 1 container, 2 ovens, baking equipment, 1 laptop Bookkeeper on staff Need to increase capacity to meet demand Eyona Educare and Nursery Centre Patience Vusi 2014 Y 4 R3,500 ? 1 informal building, fax machine, desk, toys, tables for children, chairs Manual; uses an accountant to help with verification Fany Electrical Junior Nyembwe 2015 Y 4 R50,000 R15,000 Rents office space, bakkie, laptop, electrical tools Excel (sometimes) Galada Technologies Eric Galada 2015 Y 3 R19072 R6772 Workshop, compressor, mechanic welder, 6 vehicles, tools, spray paint, laptop HFC Builders & Floorworks Howard Fell 2013 Y 10 R80 100,000 ? Some small tools Very informal Just won a sub contracting lease for the next five years Ikapa Live/Jump Start Entertainment Vincent Manzini 2011 Changed 2 R80,000 R55,000 Rented office space, 4 laptops, 1 vehicle Excel sheet, accountant helps with verification Business is completely different, but same owner

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55 Nkomshish Laundry Services Mzoxolo Kutta 2014 and 2015 Y 3 R25,000 2 rented locations, 12 washing machines, 7 dryers, 3 irons, 1 laptop Excel Ilima Green Solutions Siyabulela and Wandsile 2014 Y 3 R9,700 R3 4,000 Office space at the Barn, 2 laptops, 1 printer, 2 phones, tools Excel Impilo Entle Consulting Ndumi Skosana 2014 N 0 0 0 N/A N/A Closed in Sept, 2014 Isitya Installations Mandisi Peter 2013 Y 14 R100,000 All equipment necessary for light instalation Pastel; bookkeeping outsourced Nopes to open new branch by next year Iya Travel Lusanda Fibi 2012 Y 3 R48,000 ?? 2 locations, 3 laptops, 2 printers Excel; Bookkeeper on staff Branch in PE opened April, 2015 JAM Boutique Judy Tabotmbi 2015 Y 0 R15,000 ?? Vehicle, clothes rack Excel sheet Kaltsha Glass Thendi Tsotetsi 2013 Y 5 R50,000 ?? Rents workshop, glass cutting machines, tools Excel spreadsheet Won some grants this year which they are still waiting to receive Khaya Caf Zanele Rani 2011 Y 3 R35,000 ?? Rents space, stoves, refrigirators, serving dishes, catering equipment, freezer, till Manual and Excel Granted Certificate of Accessibility so can now apply for government contracts or larger deals Living Space Home Improvements Rodwell and Melanie Walker 2015 Y 7 R200,000 R27,000 1 laptop, 1 vehicle, small hand tools, power tools Excel Currently based at Furntech Incubator. Must leave in 2016 LM Tax Consultants Mzimkulu Ntlabati 2010 Y 5 R45,000 R8 10,000 Rented office, 6 laptops, 5 printers, 1 vehicle, 1 overhead projector Pastel; accountant used for verification Co founder left the company two years ago so Ntlabati is the sole director Manzana Promotional Materials Siyabonga (Steve) Manzana & Siya Ntsizi 2014 Y 0 R25 30,000 R15,000 1 vehicle, 2 laptops None (a friend helps sometimes) Have recently started piloting the business in the eastern cape Mihle Personnel Serivces Monde Foli 2014 N Closed in January, 2015 Mindtrix Media Bheki Kunene 2013/2014 Y 9 R80 120,000 R14,000 3 printers, 6 imacs, 1 vehicle, rented office, generator Ebooks (accounting software) Won Best Young Enterprise Award this year Mpumzo Plastic Repair Mpumzo Marenene 2010 Y 1 R7 8,000 ?? Rented shop in Delft, 1 grinder, 2 plastic welders Manual MQ Furniture Manufacturers Innocent Khanyle 2015 Y 3 R12,000 ?? 1 laptop, Furntech incubator Excel Must move out of incubator by May, 2016 Mzamo Educare Center Thobeka Mbula 2015 Y 7 R 82,626 1 shack, 1 two story building, 1 playground, 1 computer, desks, Excel (newly implemented) Registration n shack expired in December,

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56 chairs, book shelves, 3 filing cabinets, 1 refrigirator, 1 stove, kitchen material, 1 (personal) vehicle 2015 Mzansi Restaurant Nomonde Siyaka 2010 Y 4 R20,000 3 stoves, 2 ovens, tables, chairs, catering equipment Manual Recently was listed as #1 restaurant in Cape Town by Trip Advisor NM Mangena Travels Ndodekhaya Mangena & Nomthandazo Bangani 2009 Y 1 R35,000 2 Toyota 14 passenger vans, 1 bakkie, 1 VW Manual Lost a lot of money this year when a van broke down and they had to rent one Nzum Nzum Dairy Store Webster Kushata 2015 Y 4 R45,000 Rented shop, 1 till point, 1 computer, 4 refrigirators, 1 printer, 1 freezer Excel Moving to a larger shop next month Queen Bee Hair Boutique Monique and Gerard Govender 2015 Y 3 R30,000 2 coffee makers, 6 tables, 5 salon chairs, climazone, flat irons/hair dryers, Manually/soon to implenet Excel system Recently refurbished and added a coffee shop to th salon Redemption Financial Solutions Lindile Ndlazilwana 2015 Y 3 R10,000 Rented office at the Barn, laptop, vehicle Excel Currently applying for an FNB franchise Rock Solid Properties Onesimo Ngumbela 2009 Y 2 R2 3,000 1 vehicle, 1 laptop None Relocated to Johannesburg in 2013 Car Wash SA/Sakhele Kula Investments Sakhele Kula 2010 Changed 4 part time R4 5,000 Rents storage space for his equipment, vacuum, chemicals/cloths, buckets None He has been studying for the past two years so the business has mistly been run by his part time employees Shezi and Louw Manufacturing CC Thokozani Shezi & Anja Louw 2013 Y 6 ?? ?? Vehicle, 12 sewing machines, laptop Excel Nzum Nzum Internet Caf/Shine Africa Logistics Webster Kushata 2013 Y 2 R22,000 8 computers, 2 (3 in 1) printers, laminating machine Manual Silulu Uthelo Technologies Dunoon Maxwell Miselo 2015 Y 3 R48,800 R3,600 32 computers, 2 cash registers, 3 rented printers Excel; accountant from headquarters used Sisulu Ulutho Technologies Luvuyo Rani 2010/2013 Y 140 R1,791,666 R125,000 36 rented locations, computers, 50 printers, 2 Buildings owned, 4 vehicles Accountant on staff, annual audits At least 50 franchised stores to be in operation by next year Simpido Facilities Maintenance Andrew Cupido 2009 N Closed in 2012; currently working at Sunland in Gauteng SC Admin/Susumetsa Taelo Yvette Pugin 2013 Y 0 R3,800 1 laptop, office supplies Excel Will move to the launch lab at Stellenbosch University in Sepy, 2015

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57 Sokena Foods Abel Ndelebe 2009 N Closed in 2010 Tantrum Consulting Thembelani Ginini 2013 and 2014 Y 3 ? ? None Manual Victory Chauffeur Services Moses Chihwai 2015 Y 3 R117,000 ? 3 vehicles, 1 rented office, 2 laptops, 1 printer Excel Launching a new side of the business dealing with safaris Wilstan Book Supplies CC Peter Williams 2009 Y 5 R375,000 Many (very successful book distributor and book shop) Pastel; Bookkeeper on staff Yobuhle Studio House of Beauty Veronica Kissama 2014 Y 4 R12,000 1 vehicle, eyelash extensions, mobile stool, makeup case, manicure/pedicure tools Excel Zazithumtha Construction Xolisa Mazwi 2015 Y 1 part time; 4 casual R10,000 Office rented, wheelbarrows, 10 shovels, powertools, 2 desktop computers, printer, phones/internet Excel (starting 1 Aug, 2015) Zikhathalele Health and Beauty House Diane Mpengesi 2011 N Chairs, tables, basins, beds, manicure/pedicure tools Hopes to find a space where she can re open the shop Zola M Properties Zola Mikula 2015 Y 12 R100,000 1 rented building, 3 laptops, 1 company car, 1 personal car, 1 printer, 5 phones, 1 small printer, 1 switchboard WAVE Accounting software All interviews completed August 2015