Business Information Day Msunduzi City Hall CAPACITY BUILDING AND TRAINING SESSION 7 MAY 2015 Presenter: Christi Naudé Executive Director, KZNFLA

Enabling people to make informed financial decisions

KZNFLA’S MISSION To reduce poverty by expanding social and economic opportunity Empowering people to make informed financial decisions in their personal and professional lives

4KZN Financial Literacy Association TEACH – TRANSFORM - TRANSPIRE personal finance and business finance enhance existing programmes through partnerships identify gaps and implementing new partnership programmes to address specific needs.

SIX FOCUS GROUPS 5KZN Financial Literacy Association

WHY DO WE CARE ABOUT SMALL BUSINESS? 6KZN Financial Literacy Association In low-income countries SMEs account for: 60 % of GDP 70% of employment In middle-income countries SMEs account for: 70 % of GDP 95% of employment

Many small businesses and co- operatives don’t survive because the owners, partners and members do not understand how to manage their own money and the money of the businesses 7KZN Financial Literacy Association

WHY ARE FUNDING APPLICATIONS DECLINED? 8KZN Financial Literacy Association CREDIT RECORD of applicants: Banks look at defaulters, late payments and depositing and withdrawal patterns THE LINK BETWEEN PERSONAL FINANCE AND BUSINESS FINANCE

Why funding applications are declined 9KZN Financial Literacy Association NO PAPER TRAIL: Many businesses do cash transactions, i.e. paying wholesalers directly without involving the bank.

10KZN Financial Literacy Association Why funding applications are declined POOR BUSINESS PLANS: The financials show immediate profits when in reality profits take about six to 18 months to really start happening.

11KZN Financial Literacy Association Why funding applications are declined POOR BUSINESS PLANS: Sales are not reflected on a monthly basis but only on an annual basis. If they do show monthly sales they do not indicate the impact of seasonal trends. This highlights a lack of market understanding.

12KZN Financial Literacy Association Why funding applications are declined POOR BUSINESS PLANS: No split between debtor sales and cash sales Don’t show the debtor payment days. Sales take time to ramp up - you cannot show the business with immediate sales.

HOW THE KZNFLA HELPS SMALL BUSINESS 13KZN Financial Literacy Association Customised workshops on personal finance and business finance for groups of 30 at our Business Centre in Pietermaritzburg at a reasonable cost Partnership programmes, e.g. KZNFLA Rural Women market Customised one day partnership summits, targeting certain sectors, e.g. tavern owners Networking opportunities at events

HOW CAN PARTNERS HELP THE KZNFLA TO HELP OTHERS 14KZN Financial Literacy Association Join a focus group to identify gaps and needs and find solutions collectively Develop materials and programmes for identified target audiences for KZNFLA programmes Provide mentors to support existing and new programmes Provide free training/mentorship to emerging SMMEs and co-operatives Provide motivational speakers (no product pushing)

HOW CAN PARTNERS HELP THE KZNFLA TO HELP OTHERS 15KZN Financial Literacy Association Sponsor items or an entire programme or initiative Provide facilitators for training workshops Advertise in self-financed publications, e.g. KNOW YOUR MONEY/YAZI IMALI YAKHO Sponsor surveys & impact studies Provide logistical support, e.g. venues for meetings and events

HOW CAN PARTNERS HELP THE KZNFLA TO HELP OTHERS 16KZN Financial Literacy Association Sponsor some operational needs of the Association, e.g. stationery, furniture, transport Provide relevant bursaries to winners of competitions Sponsor prizes in competitions Submit generic content for the self-financed publications without promoting your brand

HOW CAN PARTNERS HELP THE KZNFLA TO HELP OTHERS 17KZN Financial Literacy Association Sponsor some operational needs of the Association, e.g. stationery, furniture, transport Provide relevant bursaries to winners of competitions Sponsor prizes in competitions Submit generic content for the self-financed publications without promoting your brand

18KZN Financial Literacy Association WORKING TOGETHER ENABLES US TO:  Use experts in the identified different fields  Get value for money  Share the costs and have common messages  Reach a wider audience  Have greater success in changing attitudes and behaviour  Have educated consumers who will take informed decisions  Contribute to economic growth and job creation in Msunduzi, KZN & South Africa

19KZN Financial Literacy Association CONTACT US Tel: (033) Physical Address Unit 6, Hyde Park Mansions 101 Roberts Road Clarendon Pietermaritzburg Postal Address PO Box Dorpspruit 3206