Welcome
Dear Friends & Colleagues,

A warm welcome to the first Legends newsletter for 2010. You will find it filled with interesting news, happenings and resources from the craft, small-scale manufacture, design and business development worlds, providing you the reader with useful and relevant information from these sectors.

We have changed the format of our newsletter slightly for this year – topics will now be listed under 5 categories, namely General Topics, Articles, Participant News, Technical & Resources and Trade & Product News. This is a bid to make the newsletter even more informative, interesting and easy to navigate.

As always, we welcome your feedback, submissions and comments, and hope that it helps you to create a prosperous, blessed and exciting 2010!

The Legends Team

GENERAL

Thoughts on the Legends Programme for 2010 from Andile Ncontsa, Head of the Old Mutual Foundation
The Old Mutual Legends Programme has received an unprecedented number of applications for the 2010 programme, proving once more the need for this intervention in the craft, tourism and small-scale manufacturing sectors. Read More...

ARTICLES

Old Mutual Legends applications for 2010 programme pour in
Following a call for applications through various channels including the media, the Department of Trade & Industry database, SEDA and local government and municipalities, we received an excellent response from people looking to become a part of the Legends programme for the year. Read More...

Legends workshops roll out – CT & KZN
Our Old Mutual Legends Programme for 2010 got off to a great start with a two-day workshop in Cape Town for the existing and new programme applicants in the region. Read More...

SA Starting to recover – News from Stats SA
As many of you already know from your sales figures, craft is strongly linked to tourism, and when tourism is down, so too are craft sales. Read More...

PARTICIPANT NEWS

Equip at Design Indaba
Thanks to the Old Mutual Legends Programme, Equip Skills based in Gauteng were afforded the opportunity of exhibiting at this year’s Design Indaba in Cape Town. Read More...

Umcebo wows them with giant tree
Those irrepressible craft pioneers from Durban, Umcebo Trust, made a serious impact at this year’s Design Indaba with the unveiling of their Eco Tree, a 6.5m creation made from wire, PVC, bottles and other recycled materials. Read More...

Potina Ceramics explores Europe!
Talented ceramic artist Vuyisa Potina, who has been with the Old Mutual Legends programme since its inception, continues to grow as a business owner. In February, he attended his first international trade show at Ambiente in Frankfurt, Germany as part of the National DTI stand. Read More...

Tswelopele gets new name & new manager
Long-time Legends beneficiary Tswelopele, based near Braamfontein in Gauteng, have changed their name to be more reflective of their environmental and recycling focus. Read More...

TECHNICAL & RESOURCES

5 Things You Need to Know About BEE
By Laurie Scholtz
Black Economic Empowerment, otherwise known as BEE, is a very common and much-mentioned term, but if someone had to ask what exactly is BEE, many of us would struggle to come up with a definitive answer. Read More...

Track Your Sales for Greater Efficiency
By Chantal de Kock
In my experience I have found many beneficiary organisations find tracking sales extremely challenging, simply because they do not have the tools to do so. Read More...

Download the template here.

TRADE & PRODUCT NEWS

Equip has recently launched an exciting new range of 2010 soccer-inspired fashion & clothing items. Read More...

Download Equip 2010 Sports Apparel Press Release
Download Sports Apparel Catalogue

Final Thought – Cathy Wijnberg

Being a Business Leader is not for Sissies! Read More...

The Old Mutual Legends Programme has received an unprecedented number of applications for the 2010 programme, proving once more the need for this intervention in the craft, tourism and small-scale manufacturing sectors.

We had planned to take on larger numbers, but this has not been possible due to delays in the implementation of the Memorandum of Agreement between the Dept of Arts and Culture (DAC) and Old Mutual to usher in what will be called the DAC-OM Legends Programme. The purpose of this MOA is to deliver the joint vision of the two parties, namely to support a better life for all through job creation and skills development, and specifically to assist existing craft enterprises to move towards sustainability through individual development and financial self-sustainability, leading to improved commercial success of individual businesses. We are hoping that the issues at the DAC will be resolved soon, and that the programme can still be implemented in a larger scale in the course of 2010. 
Growing a successful business is not an easy task. It requires dedication, commitment and long hours, sometimes with no immediate rewards.  By choosing to be entrepreneurs, in other words, job and wealth creators, this is what the Old Mutual Legends participants are committing to – hard work.  They will be supported by a group of experienced business consultants from Fetola Mmoho, with practical knowledge of the industry, according to their individual business needs. They will also have access to a range of benefits and products from the Old Mutual Group including procurement opportunities; financial education; Old Mutual Group Schemes products and banking services from Nedbank.
I would like to take this opportunity to applaud the new participants for the journey travelled thus far and to encourage them to grasp this opportunity with both hands, and to emulate the success that has been achieved by current beneficiaries such as Umcebo Trust; Inina Crafts; Equip Skills; Vuyisa Potina; Waste2Wow and many others.

Yours Sincerely,

Andile Ncontsa
Head Old Mutual Foundation

Following a call for applications through various channels including the media, the Department of Trade & Industry database, SEDA and local government and municipalities, we received an excellent response from people looking to become a part of the Legends programme for the year.

Below are the statistics, as well as a breakdown of the provinces that showed the most interest in becoming a part of Legends for 2010:

• 161 Enquiries about the Programme
• 68 completed applications within the deadline
• 50 participants invited to the regional workshops
• Up to 20 businesses will be selected for the Programme

As many of you already know from your sales figures, craft is strongly linked to tourism, and when tourism is down, so too are craft sales.

For this reason it is interesting to read the national data issued by www.statssa.gov.za which shows that while 2009 was a difficult year, the trends now do appear to be upward – pointing to a better year for Tourism, and craft in 2010.

Manufacturing: Production and sales January 2010  (Stats SA release P3041.2)
Key findings regarding manufacturing production for January 2010
The seasonally adjusted manufacturing production for the three months ended January 2010 increased by 4,1% when compared with the previous three months (to end October 2009), which is better than the 3,4% quarter-on-quarter increase in December 2009. Higher production levels were reported by eight of the ten manufacturing divisions during the latest three months. (This shows an improving situation in the manufacturing sector.)

Tourist accommodation December 2009  (P6410 -)
Total annual income for the accommodation industry for 2009 decreased by 9,6% compared with 2008. However, total income for December 2009 increased by 4,6% compared with December 2008 (This shows an improving trend.)

Stay units available
The number of stay-units available in December 2009 increased by 2,5% compared with December 2008. (More beds being created as the industry expands.)

Stay unit nights sold
The number of stay unit nights sold in December 2009 increased by 2,2% compared with December 2008. (Reflecting an improving trend towards the end of the year.)

The above are encouraging signs that we are entering an upward curve as far as manufacturing, tourism and related sectors are concerned. Let’s hope that the momentum generated from the 2010 World Cup will continue well into 2011 and beyond!

Thanks to the Legends Programme, Equip Skills based in Gauteng were afforded the opportunity of exhibiting at this year’s Design Indaba in Cape Town.

Legends paid half the stand costs, designed and dressed their stand and also provided significant logistical and other support for the team from Equip.

 

 

 

 

 

 

 

 

 

 

 

While this kind of market access opportunity is expensive and challenging from a logistical and resource point of view, we at Legends feel it is of immense benefit. Not only does it give projects such as Equip the chance to showcase their products and services and make sales and sales contacts, but it also provides invaluable direct feedback from the market. In addition, it also allows us at Legends to spread the benefit beyond just the project exhibiting to create opportunities for service providers and other entrepreneurs. In this instance, we ‘borrowed’ some stunning wire tables and chairs for the Equip stand from Willard Musarurwa of Feeling African, who made several direct sales and some excellent contacts as a result.

Angela Robinson, CEO of Equip, had this to say about their experience at Design Indaba 2010:
“With kind sponsorship from Old Mutual through their Legends Programme, EQUIP was so pleased to have attended the Design Indaba 2010.
It was an absorbing and invigorating time for us, to share in the conviviality of the occasion and to meet and share with so many others who have similar visions and missions to ours, and to explore the possibilities of networking with them.

 Above all it was a learning experience for us, allowing us to step back and see the challenges and opportunities that took shape over the weekend. In particular it allowed us to look critically at our product range in terms of attractiveness and marketability and to make certain changes to our craft range. We also agreed that being represented at more expos would further enhance our Diepsloot project and the beneficiaries in it.”
We plan to continue facilitating similar market access opportunities for other Legends participants in the future.

Those irrepressible craft pioneers from Durban, Umcebo Trust, made a serious impact at this year’s Design Indaba with the unveiling of their Eco Tree, a 6.5m creation made from wire, PVC, bottles and other recycled materials.

The crowds around their stand bear testimony to this dynamic group’s ability to attract attention and get people talking about what is possible in the field of craft.

Robin Opperman, Umcebo’s tireless Director, explains how the Eco Tree came about:

“The idea behind the tree was to show people that in the middle of an economic crisis, using recycled materials, we could build a 6.5 m high tree by bringing the community together. We asked people in the community to support us in this venture, which was aimed at challenging the notions that people have about art and craft, and the people making it.

My Administrator (Diane Ching) started collecting offcuts of PVC piping, Sheer Design Training worked on a design for us. And Dick Whittington, our technical expert, worked on building us a base and helping to construct the armature. Linda Ness gave Engineering advice, and Neil May helped us with PVC welding. Our talented Umcebo crafters ( Mluleki Madlala, Bongani Luthuli and Siyakudumisa Mavume) commenced the building of the piece.

We used a combination of wine corks, bottle tops and Eco Beads (made from 2 litre bottles treated with a heat gun) to clad the tree. The Union of Jewish Women, St Mary's and a host of other community members collected materials for us.

The tree also honours a long time friend and supporter of ours, Jim Smale who recently passed away. The tree is dedicated to his memory and honours his unfailing belief in us, our work and abilities.“

The tree was launched at the Cape Town Design Indaba, and was well received by the public, who saw the tree as representing the potential of recycled materials in the arena of art and craft.
The tree's vital stats are as follows:

- 6000 wine corks.
- 2000 Eco Beads, made from 1000 bottles.
-1000 bottle tops.
- Weight: 1 Ton.
- Craft man hours: 1512 hrs.

You can see the Eco- Tree link on the site at www.umcebotrust.co.za where the construction of the tree and its touring is all detailed. Umcebo are hoping the tree will have a long touring schedule, and that they can find a buyer for the piece so that the message of the tree can be spread, and the work can be appreciated by the public. The money will also enable them to start working on a piece for 2011, and to continue this programme into an annual event.

Well done Robin and team, as always you guys continue to push the boundaries!

To contact Umcebo call 083 7933408 or email robin@umcebotrust.co.za

By Laurie Scholtz

Black Economic Empowerment, otherwise known as BEE, is a very common and much-mentioned term, but if someone had to ask what exactly is BEE, many of us would struggle to come up with a definitive answer.

We know the general intention is to address past economic imbalances in our country, but how does it work and what are the implications for you, the small business owner?

The truth is that most of us only have a very basic understanding of how BEE works. So here are 5 need-to-know BEE facts:

1) If you are a business that has a turnover that is less than R5 million, you are automatically exempt from the BEE code requirements. These businesses are known as EME’s (Exempt Micro Enterprises).
2) If your turnover is greater than R5 million, you need to contact a BEE compliance agency about getting your BEE certification.
3) Using BEE compliant suppliers, investing in community projects and implementing skills development and training within your organisation are all ways a business can strengthen their BEE compliance percentage.
4) All activities implemented with regard to BEE, need to have supporting documentation such as training certificates, invoices etc
5) The DTI is the point of contact for BEE queries. They do actually answer their phone and are refreshingly helpful in assisting people to gain a better understanding of BEE.
Most businesses operating under the Legends programme have a turnover that is less than R5 million, and would therefore fall in the Exempt Micro Enterprise (EME) category. One extremely important fact around BEE and how it pertains to EME’s is:

BIG companies NEED you in order to improve their BEE compliance percentage.

This is very important, and companies who are aware of this will have the edge on their competition. In order to improve their BEE compliance, large companies need to purchase goods from EME’s or other BEE-compliant businesses. If you, as an EME, supply a large company with goods in any capacity, their BEE compliance percentage will increase. The official term for this exchange is preferential procurement.

The businesses enrolled in the Legends programme all have products that they could sell to bigger companies. This makes preferential procurement a good strategy for these types of businesses. Companies will usually disclose on their website if they are BEE compliant or not. This is a good source for finding companies to approach with your products. Other sources include newspapers and handbooks such as the CSI handbook (available at www.trialogue.co.za).

So the next time someone asks about BEE, you now have a better understanding of the concept and potential benefits. Preferential procurement can be a brilliant way to increase your sales, however you do need to ensure your knowledge of the topic is up to date before implementing this type of strategy in your business.

To contact Laurie pls call 021-7017466 or email info@fetolammoho.co.za