WEBVTT - Entrepreneurship Feature: Business financing with Access Bank 0:00:00.080 --> 0:00:03.760 Providership on seven o two. 0:00:04.720 --> 0:00:05.280 Welcome back. 0:00:05.320 --> 0:00:09.080 It's twenty minutes past nine. Writer on seven oh two. 0:00:09.160 --> 0:00:11.840 This is the Aubrey Maasangwa Show. And my name is 0:00:11.920 --> 0:00:15.400 Homoto Mudism in four bra orbs this evening, and it's 0:00:15.520 --> 0:00:18.320 lovely to be with you this evening. We are going 0:00:18.360 --> 0:00:23.720 through some really riveting content this evening. The conversation that 0:00:23.760 --> 0:00:27.800 we just had now was such an interesting one, and 0:00:28.160 --> 0:00:30.520 I hope that we were able to get through many 0:00:30.680 --> 0:00:34.440 of your questions around sick notes, the medical certificate, the 0:00:34.520 --> 0:00:36.800 do's and don'ts, and I think the point really is 0:00:36.800 --> 0:00:40.919 that don't do it, don't forge that certificate. If you 0:00:40.960 --> 0:00:44.040 are not feeling well, go to the doctor or otherwise, 0:00:44.440 --> 0:00:47.600 go to wakeman, go to work. It's fine, you'll be okay, 0:00:47.680 --> 0:00:48.280 you will heal. 0:00:48.720 --> 0:00:49.080 All right. 0:00:49.159 --> 0:00:52.760 It's time now, though for our entrepreneurship feature. I'm looking 0:00:52.800 --> 0:00:56.600 forward to this one because we've got some really interesting 0:00:56.760 --> 0:01:00.520 guests in studio joining us here today, and really we're 0:01:00.520 --> 0:01:04.440 going to be speaking about entrepreneurship really from the perspective 0:01:04.880 --> 0:01:08.160 of an entrepreneur, someone who's a regular on the show, 0:01:08.200 --> 0:01:10.760 someone that you many of you are familiar with, but 0:01:10.840 --> 0:01:13.480 also someone who is in the financing space and the 0:01:13.520 --> 0:01:14.400 banking space. 0:01:14.840 --> 0:01:17.800 And this is a person who makes the big decisions. 0:01:17.800 --> 0:01:21.000 So if you're out there looking to finance your business, 0:01:21.280 --> 0:01:23.319 I think you should be listening very closely to your 0:01:23.480 --> 0:01:28.119 radio right now. In studio, we're joined by and Ramabunga, 0:01:28.160 --> 0:01:31.880 who's the chief Group chief Advisor at Indies or Consulting Group, 0:01:32.520 --> 0:01:35.600 and we are also joined by Sandi Les Shabalala, the 0:01:35.640 --> 0:01:39.039 CEO of Access Bank. Gentlemen, good evening and thank you 0:01:39.040 --> 0:01:42.760 for coming to the studio. Thank you so much for 0:01:42.800 --> 0:01:45.880 coming through entrepreneurship. It's always an interesting conversation to have 0:01:46.319 --> 0:01:49.680 so broad, but it can also be so specific, right 0:01:49.800 --> 0:01:52.160 I mean the entrepreneurs that are listening to the show 0:01:52.240 --> 0:01:55.680 right now. Maybe I should start with you and Lisa. 0:01:55.800 --> 0:01:58.880 I think many people that are listening that are looking 0:01:58.920 --> 0:02:02.080 to venture into it are always thinking about the how 0:02:02.480 --> 0:02:04.760 how do I even get started? 0:02:04.920 --> 0:02:05.760 Where do I go? 0:02:06.200 --> 0:02:08.560 I'm sure that's a question you've had before as as 0:02:08.600 --> 0:02:10.320 a person who's who's into business. 0:02:11.560 --> 0:02:12.560 Thank you, Homoso. 0:02:13.000 --> 0:02:17.040 I always opened the show with that line that says 0:02:17.600 --> 0:02:21.880 your money, your profit, it's in the market, and strategy 0:02:21.880 --> 0:02:25.000 is the way to unlock it and the way you 0:02:25.040 --> 0:02:28.160 want funding to play a role is to bridge that 0:02:28.200 --> 0:02:31.760 gap between you not having anything and you being able 0:02:31.800 --> 0:02:35.960 to acquire whatever necessary assets that you would use or 0:02:36.040 --> 0:02:39.280 utilize to save your your your market. So most of 0:02:39.320 --> 0:02:43.079 our topics are around the areas of strategy, organizational design, 0:02:43.440 --> 0:02:47.000 leadership and culture, but ultimately they always lend back to 0:02:47.800 --> 0:02:48.960 capital that is required. 0:02:49.000 --> 0:02:52.160 I guess that's why we have extinguished. The mister. 0:02:53.440 --> 0:02:57.640 Joining us today, I've been always wanting to meet various 0:02:58.120 --> 0:03:02.000 occasion and I'm looking forward to hearing about Access Bank, 0:03:02.480 --> 0:03:05.920 which is a Pan African bank, one that holds the 0:03:05.960 --> 0:03:09.520 African agenda, and hearing from the horse's mouth on how 0:03:09.520 --> 0:03:12.920 they are going to unlock that value that entrepreneurs have 0:03:12.960 --> 0:03:13.720 in their minds. 0:03:13.800 --> 0:03:16.560 Yeah, yeah, and I mean I'm. 0:03:16.240 --> 0:03:19.720 Really excited to have you in studio today and Dajabalala, 0:03:19.800 --> 0:03:23.960 particularly because of your expertise in the space, I mean 0:03:24.040 --> 0:03:27.520 from your time at Time Bank and then Sassin, are 0:03:27.560 --> 0:03:30.440 you have you been seeing a steady increase in people 0:03:30.440 --> 0:03:33.400 that are choosing to go into entrepreneurship and then knocking 0:03:33.400 --> 0:03:36.080 on your door and saying, of. 0:03:36.080 --> 0:03:38.600 Course, I think there's a lot of people that have 0:03:38.680 --> 0:03:41.400 got ideas in terms of what they would want to do. 0:03:42.240 --> 0:03:44.720 I think the challenges sometimes is that we are not 0:03:44.920 --> 0:03:50.600 very clear about exactly how we get the identify the 0:03:50.640 --> 0:03:53.720 markets that we want to get into. So there's always 0:03:53.720 --> 0:03:56.440 that discussion that you may have a very great idea 0:03:56.520 --> 0:04:00.440 of what you want to do, but very unclear about 0:04:00.480 --> 0:04:04.160 who are your customers are, and it becomes very difficult 0:04:04.240 --> 0:04:07.840 to actually then peak a sport and say, how is 0:04:07.960 --> 0:04:10.840 your offering different from what's out there in the market. 0:04:11.120 --> 0:04:14.640 Why is your idea going to be a success relative 0:04:14.680 --> 0:04:15.400 to the other. 0:04:15.280 --> 0:04:16.640 Ideas that are out there. 0:04:17.000 --> 0:04:20.720 So that's basically what you see in terms of the 0:04:20.760 --> 0:04:24.599 engagements that we have. So it is relatively to the 0:04:24.640 --> 0:04:27.400 point that has been made about strategy and about being 0:04:27.480 --> 0:04:31.279 clear who you are targeting and what is the value proposition? 0:04:31.360 --> 0:04:33.600 What is that you are putting on the table? Why 0:04:33.640 --> 0:04:38.159 would people buy your product or buy your service? Those 0:04:38.160 --> 0:04:41.000 are the fundamental questions that you've got to ask yourself 0:04:41.760 --> 0:04:44.880 as you think about entering into the space. Obviously, you've 0:04:44.880 --> 0:04:47.680 got to invest a whole influence a whole lot of 0:04:47.720 --> 0:04:51.039 people to support your idea from a funding point of view, 0:04:51.240 --> 0:04:53.040 and you've got to expect that people are going to 0:04:53.080 --> 0:04:56.520 ask you some really tough questions around basically what you're 0:04:56.520 --> 0:04:57.440 putting on the table. 0:04:57.680 --> 0:04:57.760 Ye. 0:04:58.480 --> 0:05:02.120 I mean, I think we've seen, we all know someone 0:05:02.560 --> 0:05:06.159 that's either decided to go the route of entrepreneurship to 0:05:06.240 --> 0:05:08.919 try it, to leave formal employment, or to do it 0:05:08.960 --> 0:05:10.640 while they are in the formal employment. 0:05:11.000 --> 0:05:11.560 But maybe we. 0:05:11.480 --> 0:05:14.920 Should speak about the quality of the entrepreneurs that we're 0:05:14.960 --> 0:05:17.520 producing currently in the country because I think that that 0:05:17.680 --> 0:05:21.520 informs your decisions as a bank when you want to, 0:05:21.800 --> 0:05:24.920 you know, give financing. Are we seeing people that are 0:05:25.000 --> 0:05:29.320 actually presenting answers to the problems that we have in society. 0:05:29.279 --> 0:05:29.880 Yes, we are. 0:05:29.960 --> 0:05:33.719 I think we are quite lucky in that regard because 0:05:33.760 --> 0:05:36.040 I think there's a lot of support that is out there. 0:05:36.920 --> 0:05:41.920 How people are being assisted to actually craft the idea, 0:05:42.040 --> 0:05:47.080 generate and make it a fundable proposition. There's a lot 0:05:47.080 --> 0:05:51.040 of support that people get out there, and I'm always 0:05:51.160 --> 0:05:53.800 saying to the people that you don't have to figure 0:05:53.839 --> 0:05:54.760 it out yourself. 0:05:55.160 --> 0:05:57.680 There's a lot of support that is out there. Use 0:05:57.720 --> 0:05:58.400 the support. 0:05:58.760 --> 0:06:01.520 Make sure that you are very clear in terms of 0:06:01.560 --> 0:06:04.440 how you go about really putting a propose. You can 0:06:04.560 --> 0:06:07.359 have a very great idea, but you're not able to 0:06:07.400 --> 0:06:10.000 sell it. From a funding point of view, So you 0:06:10.040 --> 0:06:12.920 have people that are out there that actually would help 0:06:13.040 --> 0:06:16.119 you to say, yes, it's a great idea, but how 0:06:16.160 --> 0:06:21.200 do you make it a fundable proposition? That is what 0:06:21.240 --> 0:06:23.640 people need to actually to be thinking about. But there's 0:06:23.680 --> 0:06:26.920 a lot of brilliant ideas that are out there, and 0:06:27.000 --> 0:06:30.320 I think from us from an entrepreneurial point of view, 0:06:30.680 --> 0:06:33.280 we absolutely have to make sure that people get the 0:06:33.440 --> 0:06:37.640 right guidance to walk them through the journey, as it. 0:06:37.560 --> 0:06:42.080 Were, maybe sending to go into that support because I'm 0:06:42.080 --> 0:06:45.960 sure we've got potential entrepreneurs, someone who's on the verge 0:06:46.160 --> 0:06:49.000 of taking the big leap. Yeah, you know, but they're 0:06:49.000 --> 0:06:51.919 thinking what support? Where where do I go? Who do 0:06:52.000 --> 0:06:52.520 I ask? 0:06:52.800 --> 0:06:54.560 Yeah? So there's a lot of. 0:06:56.040 --> 0:07:00.440 Organizations that are that are out there, obviously the ones 0:07:00.480 --> 0:07:06.640 that we are collaborating with some of it. Obviously we 0:07:06.720 --> 0:07:09.760 are thinking about an organization that we just saw I 0:07:09.800 --> 0:07:13.000 think it was about it three months ago in terms 0:07:13.000 --> 0:07:16.520 of how do we assist entrepreneurs. It was in the 0:07:16.600 --> 0:07:20.520 JSE if I just give that particularly that there's a 0:07:20.600 --> 0:07:23.400 lot of work that they are doing, and we find 0:07:23.480 --> 0:07:25.920 value in that because from a banking point of view, 0:07:26.440 --> 0:07:29.720 we can only come in at a certain level to 0:07:29.840 --> 0:07:35.800 actually fund the proper the proposals, but prior to that, 0:07:35.920 --> 0:07:37.760 and I think that's what I was saying earlier on 0:07:38.360 --> 0:07:42.080 the entrepreneurs themselves need to actually avail themselves of that 0:07:42.240 --> 0:07:46.280 support to take them through various stages before they are 0:07:46.320 --> 0:07:49.600 ready for funding, because sometimes I find that people get 0:07:50.320 --> 0:07:53.720 jump into the to asking for money, but they are 0:07:53.760 --> 0:07:56.920 not clear themselves exactly what is it that they're looking for. 0:07:57.800 --> 0:07:58.640 Is that practical? 0:07:58.720 --> 0:08:00.760 And is that you know as a person, and I mean, 0:08:01.240 --> 0:08:04.040 you know, you might be the guy who has just 0:08:04.120 --> 0:08:08.200 lost their job and you just want to get started, 0:08:08.440 --> 0:08:12.800 and you've got this amazing idea you're building some genius 0:08:13.080 --> 0:08:16.760 I don't know, invention, and you think the world needs 0:08:16.760 --> 0:08:19.840 to know this, you know, and it is it almost 0:08:19.840 --> 0:08:23.280 practical for people to kind of pause there and put 0:08:23.280 --> 0:08:25.880 in the thought that sunday La is speaking about. 0:08:25.960 --> 0:08:27.760 Particularly as an entrepreneur. 0:08:27.560 --> 0:08:31.720 I would say, it's not even just practically right, it's 0:08:31.760 --> 0:08:37.640 necessity because you have to understand that when someone puts 0:08:37.679 --> 0:08:42.640 money into your idea, it's risk. There's risk associated with 0:08:42.679 --> 0:08:46.040 the deployment of that capital. Now, the next question is 0:08:46.280 --> 0:08:49.480 who's better suited to absorb that risk. And surely you 0:08:49.480 --> 0:08:52.760 cannot ask a bank to take that risk because ultimately 0:08:52.800 --> 0:08:55.600 they also have their showholders that they report to that 0:08:55.640 --> 0:09:00.280 they need to satisfy and they probably even themselves not 0:09:01.320 --> 0:09:04.760 expects in your industry. They are expecting their own industry. 0:09:04.920 --> 0:09:09.880 All they probably and without simplifying your job, shaingu is 0:09:10.040 --> 0:09:14.400 your financial expects. We are able to read certain things 0:09:14.440 --> 0:09:18.520 around the business plan, around the financial ratios and and 0:09:18.520 --> 0:09:21.560 and test the CETA. And obviously they involve some experts 0:09:21.600 --> 0:09:24.280 to do to come and and do some certain tests 0:09:24.280 --> 0:09:26.240 on on the concept themselves. But the reality of the 0:09:26.280 --> 0:09:29.760 matter is if the project is not prepared right, they 0:09:29.800 --> 0:09:32.719 will have less likelihood to want to absorb. 0:09:33.880 --> 0:09:34.280 That risk. 0:09:34.360 --> 0:09:36.680 So maybe to answer your question directly, so there is 0:09:36.720 --> 0:09:37.800 a necessity. 0:09:37.920 --> 0:09:39.920 But just to add to what. 0:09:40.240 --> 0:09:44.000 Sala was saying, they are by the way organizations that 0:09:44.040 --> 0:09:46.640 are out there is right, absolutely, and you get them 0:09:46.679 --> 0:09:50.079 in province and you get them in national as well. 0:09:50.080 --> 0:09:52.680 I mean, I like to think of SEVA as example, 0:09:52.720 --> 0:09:56.760 which is an algamation of SIFA and and and and SEDA. 0:09:56.960 --> 0:10:00.520 Cedar is the component that assists entrepreneurs at least with 0:10:00.600 --> 0:10:03.960 polishing their their ideas. If you look at g g 0:10:04.040 --> 0:10:06.360 EP for example here in how then we heard a 0:10:06.360 --> 0:10:11.160 gentleman here by the name of Sakia who was saying, 0:10:11.200 --> 0:10:14.360 come to me, I can lend up until obviously a 0:10:14.400 --> 0:10:17.480 certain threshold. But that money is really to risk your 0:10:17.559 --> 0:10:20.680 concept to really will get experts to think about or 0:10:20.720 --> 0:10:23.400 to help you draw up a business plan, maybe to 0:10:23.440 --> 0:10:27.160 a certain extent, invest in very little equipment so that 0:10:27.200 --> 0:10:29.280 you can test out the market so you can refine 0:10:29.320 --> 0:10:31.960 and come with with with the idea. But my question, 0:10:32.040 --> 0:10:35.200 I guess to Senghu, is we have this in the show, 0:10:35.920 --> 0:10:38.720 that life cycle of a business to say, obviously the 0:10:38.760 --> 0:10:40.559 business has different risks at different. 0:10:40.280 --> 0:10:41.800 Stages of growth. 0:10:41.880 --> 0:10:44.760 We're saying there's the startup phase, there's the phase that 0:10:44.800 --> 0:10:48.040 I call maybe ELI growth, then there's the growth and 0:10:48.080 --> 0:10:51.120 the scaling phase. Then there's the maturity phase and then 0:10:51.200 --> 0:10:55.360 obviously the sunset hopefully not where in that space would 0:10:56.520 --> 0:10:57.959 access bank play. 0:10:58.679 --> 0:11:01.000 So when you so we actually come in in the 0:11:01.000 --> 0:11:05.559 growth phase of the business. But there are other interventions 0:11:05.559 --> 0:11:07.920 obviously that we look at it, because I think sometimes 0:11:09.360 --> 0:11:12.000 we only look at it just from the funding point 0:11:12.040 --> 0:11:13.760 of view. But there's a lot of work that we 0:11:13.800 --> 0:11:18.280 are putting in terms of financial management education and all 0:11:18.320 --> 0:11:20.320 of that, just to make sure that people have the 0:11:20.400 --> 0:11:24.120 right foundational elements before we are ready for funding. So 0:11:24.160 --> 0:11:26.760 there's a lot of work that we do outside of 0:11:26.800 --> 0:11:31.040 that where we actually, through our CSI programs, go into 0:11:31.160 --> 0:11:35.360 community teach them financial discipline, how to prepare cash flow, 0:11:35.679 --> 0:11:38.760 how to read financials, you know some of those things, 0:11:38.800 --> 0:11:41.160 and the business plans and some of that, but at 0:11:41.160 --> 0:11:44.400 a very high level. But where we get involved, obviously 0:11:44.400 --> 0:11:48.320 we get to the growth stage of the business. And 0:11:48.400 --> 0:11:51.760 to your point, and I think there are various risks 0:11:51.800 --> 0:11:55.000 that are associated with each of the stages of growth 0:11:56.080 --> 0:12:02.320 and to and you raise a very important pointund what 0:12:02.400 --> 0:12:06.640 type of funding is the right funding for where your 0:12:06.679 --> 0:12:11.360 business is at. I think if an arly stage of business, 0:12:11.640 --> 0:12:14.720 so you probably would find that there's a there's very 0:12:14.760 --> 0:12:18.360 few people that would actually from a banking point of view, 0:12:18.360 --> 0:12:22.080 that would put depositors money into that business. So there's 0:12:22.120 --> 0:12:25.560 a lot of equity funding that you would need to 0:12:25.559 --> 0:12:29.280 actually raise or venture capitalists that actually people that are 0:12:29.320 --> 0:12:32.960 taking a very different risk profile than what a bank 0:12:33.000 --> 0:12:35.640 would normally do. So we don't get involved in that 0:12:35.760 --> 0:12:39.640 early stage. Obviously from a business point of view, and. 0:12:39.880 --> 0:12:42.800 How would one you know, determine what type of funding 0:12:42.920 --> 0:12:46.160 is best suited for them, especially a person who's you know, 0:12:46.240 --> 0:12:49.079 venturing into this into this route, How would you know 0:12:49.400 --> 0:12:52.200 what is best in terms of funding for you as 0:12:52.200 --> 0:12:53.600 a you know, as an entrepreneur. 0:12:54.040 --> 0:12:56.360 So I think it comes back to the risk issue. 0:12:56.440 --> 0:13:00.960 So if you think about if if, then I use 0:13:01.000 --> 0:13:04.760 a hypothetical case if the bank were to get into 0:13:04.800 --> 0:13:08.440 that airly stage of funding, because it's a risk reward issue, 0:13:08.840 --> 0:13:12.719 so possibly the business idea would be crippled by the 0:13:13.600 --> 0:13:17.480 pricing that we put on that funding. So if you 0:13:17.559 --> 0:13:19.480 were to go airly stage and say I want the 0:13:19.480 --> 0:13:22.400 bank to get involved, you're probably going to have to 0:13:22.480 --> 0:13:26.080 pay quite a premium to raise that funding because it's 0:13:26.200 --> 0:13:29.040 very risky. But there are different funders that have a 0:13:29.160 --> 0:13:33.480 very different risk appetite at that stage of your business, 0:13:33.640 --> 0:13:36.959 that are willing to be much more equity risk than 0:13:37.040 --> 0:13:41.200 maybe funding risk point of view. So at that stage 0:13:41.240 --> 0:13:45.840 you need more equity sort of investors into the business 0:13:46.160 --> 0:13:47.320 rather than death funding. 0:13:48.000 --> 0:13:49.679 Yeah, I want to open up. 0:13:49.640 --> 0:13:52.280 The lines right now to our entrepreneurs who are listening, 0:13:52.480 --> 0:13:55.480 potential entrepreneurs and people that have already walked the mile 0:13:55.880 --> 0:13:58.439 you know on this journey that may want to. 0:13:58.360 --> 0:14:00.360 Have questions or even comments on this. 0:14:00.600 --> 0:14:03.080 I'm taking calls on zero double one double a three 0:14:03.440 --> 0:14:06.040 seven oh two zero double one double a three oh 0:14:06.120 --> 0:14:07.960 seven oh two. That's the number to call and let 0:14:08.040 --> 0:14:11.240 us know if the ideals that are being spoken about 0:14:11.320 --> 0:14:13.880 in this conversation align with what you know and what 0:14:13.960 --> 0:14:17.240 you've experienced in your journey for business. 0:14:17.360 --> 0:14:20.240 Maybe you know a question maybe. 0:14:20.360 --> 0:14:26.200 Young men, you know Susizo in Alexandria, how does he 0:14:26.280 --> 0:14:30.800 go about becoming the ideal candidate for funding from an 0:14:30.840 --> 0:14:33.440 access bank, someone who's trying to go in that in 0:14:33.440 --> 0:14:35.880 that rout, but doesn't know how to position themselves and 0:14:35.920 --> 0:14:39.840 make themselves appealing, you know to an investor like yourself. 0:14:40.360 --> 0:14:43.800 I think that the one thing that maybe that is 0:14:43.880 --> 0:14:46.280 overlooked early on in the business. So some of the 0:14:46.280 --> 0:14:50.600 financial disciplines that needs to be in place, because what 0:14:50.720 --> 0:14:53.040 do you find that in early stages of the business 0:14:53.160 --> 0:14:56.280 is obviously people are just running businesses. That part of 0:14:56.320 --> 0:14:59.920 the business in terms of the governess, the discipline making 0:15:00.280 --> 0:15:03.920 that your financials are correct, you know, your bookkeeping system 0:15:04.040 --> 0:15:08.640 is correct, sometimes get neglected. That for me is an 0:15:08.680 --> 0:15:13.040 important part because it demonstrates basically the history and the 0:15:13.120 --> 0:15:16.040 journey that you've been on. But if you're not able 0:15:16.080 --> 0:15:20.520 to actually organize your finances Ellie on, it becomes very 0:15:20.560 --> 0:15:25.000 difficult for anyone to put credibility in the story, however 0:15:25.440 --> 0:15:28.840 compelling the story is. But if you are not able 0:15:28.920 --> 0:15:32.880 to demonstrate that you've got the right financial disciplines and pace, 0:15:33.280 --> 0:15:35.920 it's very difficult to actually get there. 0:15:36.080 --> 0:15:37.720 And also the other element as well. 0:15:37.760 --> 0:15:40.800 I think when you start a business, you said obviously 0:15:40.880 --> 0:15:42.600 earlier on, people are very excited. 0:15:42.920 --> 0:15:43.840 There's a level of. 0:15:43.760 --> 0:15:49.080 Optimism sometimes that is really got to be toned down 0:15:49.200 --> 0:15:51.960 in terms of what is it that you want to do. 0:15:52.080 --> 0:15:54.680 So from a banking point of view, so we take 0:15:54.960 --> 0:15:57.880 obviously you're an entrepreneur, you think this is a fail 0:15:58.000 --> 0:16:00.240 proof idea, this is going to make me a lot 0:16:00.240 --> 0:16:02.640 of money, and that's what you're thinking, and. 0:16:02.560 --> 0:16:07.200 Then comes along and says, actually, no, have you thought 0:16:07.240 --> 0:16:07.920 about this? 0:16:08.520 --> 0:16:08.720 You know? 0:16:09.240 --> 0:16:12.520 Yeah, So that level of optimism would have to actually 0:16:12.560 --> 0:16:16.200 go through, And I think it's always necessary to actually 0:16:16.200 --> 0:16:20.240 think about how you stress test your ideas because business 0:16:20.320 --> 0:16:23.280 is not a straight line. You're going to have a 0:16:23.320 --> 0:16:25.080 whole lot of issues that are going to hit you. 0:16:25.480 --> 0:16:28.080 So if something happens and your creditors are not paying 0:16:28.080 --> 0:16:30.920 you on time and your deaths are sorry, I'm not 0:16:30.960 --> 0:16:34.240 paying you on time, So what do you do? It 0:16:34.400 --> 0:16:37.680 changes the casual opposition of that business. So you've got 0:16:37.720 --> 0:16:41.560 to put different scenarios to say, what is it that 0:16:41.640 --> 0:16:44.520 I'm likely what could go wrong for instance, and be 0:16:44.640 --> 0:16:48.280 prepared for some of those eventualities and plan properly for 0:16:48.360 --> 0:16:50.840 that and show that you've thought about them, and it 0:16:51.280 --> 0:16:54.520 just it just makes it easy to have a conversation 0:16:54.600 --> 0:16:56.840 that somebody that has put in a bit of thought 0:16:56.920 --> 0:16:57.320 into that. 0:16:58.880 --> 0:17:03.480 Is the suit for financing for the bio entrepreneurs a 0:17:03.520 --> 0:17:06.960 one way stream where they're coming to you and asking 0:17:07.040 --> 0:17:10.560 for finance and the power and the borders in your court? 0:17:11.080 --> 0:17:15.680 Or is there any bargaining power that a potential business 0:17:15.680 --> 0:17:18.600 person has when they come and engaging in the conversation. 0:17:18.920 --> 0:17:20.040 Is it even a conversation? 0:17:20.840 --> 0:17:22.639 It is a conversation, obviously. 0:17:22.720 --> 0:17:26.120 I think for the one thing that the bank always 0:17:26.160 --> 0:17:29.320 look at is obviously we want to support businesses that 0:17:29.400 --> 0:17:32.640 we know that they've got a higher chance of being successful. 0:17:33.400 --> 0:17:36.679 So we just don't find businesses. 0:17:36.200 --> 0:17:39.560 That even if you give us all the right, whatever 0:17:39.640 --> 0:17:43.520 collateral that you can think of. If the business proposition 0:17:43.880 --> 0:17:46.840 from a foundational element doesn't make sense, we would not 0:17:46.960 --> 0:17:50.000 do it because we are not in the business of 0:17:50.320 --> 0:17:54.800 actually taking people's properties and all of that. We want 0:17:54.840 --> 0:17:58.040 to use that from a banking as the last resort. 0:17:58.520 --> 0:18:01.040 So the first and foremost important thing that you've got 0:18:01.040 --> 0:18:03.200 to do is to actually make sure that there's. 0:18:03.040 --> 0:18:04.960 A viable business that is out there. 0:18:05.160 --> 0:18:08.760 And the conversation obviously comes through in terms of the 0:18:08.960 --> 0:18:11.360 entrepreneur and what is it that they want to do 0:18:11.440 --> 0:18:13.520 and the risk and how we think about the risk, 0:18:14.040 --> 0:18:17.040 and obviously were looking at from a banking point of 0:18:17.119 --> 0:18:19.480 in terms of how we structure it alone so that 0:18:19.600 --> 0:18:24.160 it actually favors the entrepreneur as well as mitigates the risk. 0:18:24.040 --> 0:18:25.280 From a banking point of view. 0:18:25.320 --> 0:18:27.879 So you may have an idea that I'm looking for 0:18:28.000 --> 0:18:30.680 as type of funding. For instance, up you could come 0:18:30.720 --> 0:18:33.280 in and say I'm just looking for an overdraft and 0:18:33.280 --> 0:18:36.840 then we say, actually your balance she it is not 0:18:37.000 --> 0:18:39.719 strong enough to be able to sustain an overdraft. 0:18:40.040 --> 0:18:41.360 So maybe what we can do. 0:18:41.760 --> 0:18:45.480 You are supplying to blue chip companies, so can we 0:18:45.600 --> 0:18:49.200 look in terms of maybe discounting some of those datas, 0:18:49.359 --> 0:18:51.280 so it's a very different way. So we are not 0:18:51.800 --> 0:18:55.760 taking the risk on the entrepreneur. We are actually taking 0:18:55.920 --> 0:18:58.600 the risk on the blue chip company that you do 0:18:58.760 --> 0:19:02.560 business on. So there's those discussions that we are having 0:19:03.200 --> 0:19:06.400 with the entrepreneur because they have they would not necessarily 0:19:06.440 --> 0:19:09.680 be thinking about that, but from a business point of 0:19:09.720 --> 0:19:12.800 view that is starting up, they don't have a big 0:19:12.840 --> 0:19:15.960 balance sheet or strong enough balance sheet to be able 0:19:16.040 --> 0:19:21.239 to sustain that the lending based on balance sheet, so 0:19:21.280 --> 0:19:23.120 we've got to have to look at a different way 0:19:23.119 --> 0:19:24.120 of funding. 0:19:23.680 --> 0:19:27.639 That a rivetain conversation on entrepreneur entrepreneurship that we're having 0:19:27.920 --> 0:19:32.639 this evening in studio. My guests Andysa Ramabunga, Chief Group, 0:19:32.800 --> 0:19:35.040 Chief Advisor and Diesel Consulting Group. 0:19:35.320 --> 0:19:37.399 He is a regular here on the show. 0:19:37.440 --> 0:19:40.720 And we've got Sandy ls Shamalala, the CEO of Access 0:19:40.720 --> 0:19:44.680 Bank here in studio helping us makes sense of entrepreneurship. 0:19:44.720 --> 0:19:47.600 Maybe let's go to the lines. I have invited you 0:19:47.760 --> 0:19:49.680 to get in touch with us if you've got questions 0:19:49.760 --> 0:19:52.240 or comments. Is there a double one, double A three 0:19:52.359 --> 0:19:54.760 H seven oh two that's the number to dial. Let's 0:19:54.800 --> 0:19:58.600 go to PIRI you're in alex good evening, Welcome to 0:19:58.640 --> 0:19:58.960 the show. 0:19:59.040 --> 0:19:59.880 What's your contribution? 0:20:02.119 --> 0:20:05.520 Yeah, thanks, thanks from most of the criminals, the gentlemen, then 0:20:05.520 --> 0:20:11.399 the studio. Look, I think the the spirit of entrepreneurship 0:20:11.680 --> 0:20:16.920 is really often being stifled by a lack of funding, 0:20:17.560 --> 0:20:22.400 you know, especially for the less privilege, to the underprivileged, 0:20:23.520 --> 0:20:26.399 those that are in the streets of alex and t 0:20:26.600 --> 0:20:30.920 be science the way through that you know whose background 0:20:31.280 --> 0:20:35.960 is not so well and they obviously have had live 0:20:36.680 --> 0:20:41.439 Let's say they are India meet me, meet mid Thetis, 0:20:41.560 --> 0:20:45.520 so so they've had lives, they've had experiences of life. 0:20:45.720 --> 0:20:49.760 So that means their background and maybe their their credits 0:20:49.840 --> 0:20:53.800 calls are not so great because you know, they didn't 0:20:53.800 --> 0:20:59.400 have something to fall back on. So I would submit that, 0:20:59.480 --> 0:21:05.879 you know this, potential funders for this budding entrepreneurs have 0:21:06.000 --> 0:21:09.840 got to be I think somewhat linient to those kind 0:21:09.920 --> 0:21:15.240 of people because obviously, you know, they they they are 0:21:15.280 --> 0:21:17.640 too much of a risk. But on the other hand, 0:21:17.760 --> 0:21:22.760 they would like to to establish, you know, businesses that 0:21:23.320 --> 0:21:26.959 would be able to carry them out of poverty and 0:21:27.200 --> 0:21:31.520 be able to you know, decrease the the state of unemployment. 0:21:31.600 --> 0:21:34.920 So you know, I get I get the fact that 0:21:35.440 --> 0:21:39.600 it's risky, but I think that these founders have got 0:21:39.640 --> 0:21:43.040 to have a soft heart when it comes to the 0:21:43.160 --> 0:21:48.200 young entrepreneurs that would like to enter the market and 0:21:48.680 --> 0:21:53.560 make a difference. Look As for myself personally, I'm a 0:21:53.600 --> 0:21:58.240 social entrepreneur somewhat, and I think my risk. I don't 0:21:58.240 --> 0:22:01.879 know if I'm risk or not. I'm not necessarily looking 0:22:02.000 --> 0:22:06.119 at making profit as such. I'm just looking at, you know, 0:22:06.240 --> 0:22:12.000 uplifting the young, the young people in my community here 0:22:12.080 --> 0:22:15.159