Mustard Seed. Company Profile

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2 Mustard Enterprise Trust (Big Business) The implementation of a Broad-Based Black Economic Empowerment (BBBEE) strategy in South Africa has forced enterprises to comply with the Codes of Good Practice when dealing with any organ of state or public entity and has encouraged enterprises to comply with the Codes of Good Practice when dealing with each other. A company s BBBEE status will therefore have a direct impact on its ability to procure with any organ of state or public entity and because other enterprises will want to boost their BBBEE status as much as possible, you could loose out on work opportunities with the private sector if your scorecard rating is not suitable. The elements of the BBBEE scorecard which have the least impact on the structure and functioning of a business, like enterprise development and preferential procurement, are difficult to implement because of a lack of available opportunities in those areas. Yet together they comprise 35% of the BBBEE scorecard rating. (Small Business) Coupled with this, despite all the efforts from government and other organizations, small business is still struggling in South Africa. The 2005 Global Entrepreneurship Monitor (GEM) report indicated that South Africa has the lowest entrepreneurial activity rate of all the developing countries. We not only have a low rate of necessity entrepreneurship, but, more importantly, also a low opportunity entrepreneurship activity rate, which is the lowest of all the developing countries. With the exception of Mexico, South Africa s start-up businesses are least likely of all the eight developing countries sampled to mature to the new firm stage. The state of small business in South Africa has been significantly weakened due to the lack of education available to large portions of the population as well as a lack of available resources like funding and support for small business. Yet small business has the greatest potential to create employment in South Africa. (Partnering for Transformation) It is the above mutual needs of both big and small business that Mustard intends to address. Mustard Enterprise is a trust set up as an outsourced enterprise development unit and focuses on enterprise development as a vehicle to finance small business, boost your BBBEE status and transform the society. Mustard intends going beyond BBBEE legislation and enterprise development to promote collaboration between businesses and to form a business network of outsourced products and services doing business based on a common set of values. The heart of the service which Mustard provides is a partnering service. Mustard will provide a pool of pre-screened small businesses or enterprises under development (EDs) looking for support and funding as well as assess the supplier bases of clients for suitable EDs. Enterprise development contributions from these clients (big business or established enterprises) will then be matched with suitable EDs. A good match will: Maximise the increase to the enterprise s BBBEE status; Provide procurement opportunities between the enterprise and the ED; and Maximise the impact on economic development through, for example job creation. Mustard will have succeeded if the businesses within its network start to support each other and contribute to the community within which they operate, not out of obligation, but because it is the right Mustard Enterprise 1

3 thing to do. And in so doing they should reap benefits for themselves and the community in which they operate. (Empowerment) Mustard has embraced the BBBEE legislation as an enabler of its core business (enterprise development) and provides a service that benefits the general public. Mustard will also endeavour to meet all the other requirements of the BBBEE legislation. Mustard qualifies as an Exempt Micro Enterprise and is therefore a Level 4 Contributor in terms of the Codes of Good Practice. However, Mustard commits to score itself based on the Qualifying Small Enterprise Scorecard to make sure that it is compliant with the requirements of broad-based empowerment. As a public benefit organisation, Mustard is scored based on four elements of the following scorecard: Element Weighting Score Mustard Commitment Management 25 points 9.98 Mustard currently has 20% black representation at top-management level and Control commits to meet the 50.1% compliance target by Employment 25 points Mustard does not plan to employ people but will rather outsource all its needs Equity to small and micro enterprises in an effort to further assist with enterprise Skills Preferential Procurement development. 25 points Mustard does not plan to employ people but will rather outsource all its needs to small and micro enterprises in an effort to further assist with enterprise development. 25 points 25 Where possible, Mustard will procure all required products and services from Exempt Micro Enterprises and Qualifying Small Enterprises with the required black ownership in an effort to further assist with enterprise development. Enterprise 25 points 25 Mustard commits to invest 2% of its net profit after tax back into its suppliers or beneficiaries of the Mustard Enterprise Trust. Socio-Economic 25 points 25 Mustard commits to invest 1% of its net profit after tax back into its suppliers or beneficiaries of the Mustard Enterprise Trust. Indicative Future Score Level 3 Contributor (Trustees) The current trustees of the Mustard Enterprise Trust are (in alphabetical order): Brendan Black Brendan Black holds a B Comm Hons degree. Brendan is currently an associate member of ABF Consultants, who provide a consulting service to SMME s and Corporates in arranging asset based financing facilities with the big four banks in South Africa. John Noble John Noble has qualifications in mining production and human resource management and has attained a diploma in education, training and organizational development. He is currently owner of Vive (Pty) Ltd, a human resource and BEE consultancy. Philip Marais Philip Marais holds an MSc in Engineering and is an accredited mentor and business coach. He was a founding member of Mark Shuttleworth s venture capital company and is currently owner of Heirheads Entrepreneurial Services, which offers mentoring, coaching and consulting services to small businesses. Renier Schonken Renier Schonken is an accredited mentor and business coach and holds a B. Compt (Hons) degree. He worked for 12 years in accounting and finance and, for the last five years, he practiced as a qualified mentor and business coach and CEO of Mentors and Business Coaches International South Africa. Mustard Enterprise 2

4 Sakhile Malinga Sakhile Malinga holds diplomas in IT and Project Management and is currently pursuing an MSc in Information Science. He has worked in various capacities as a director and founder of successful small to medium enterprises and has experience in SME investigation, conceptualization and implementation. (Core Values) Mustard s core values and the values that it will promote within its network are: 1. Inclusion: Enabling all enterprises that are placed before us 2. Service: Servant leadership; serve people over profit at all times 3. Ethical Principles: Seek to establish and do business by ethical business principles 4. Impact: Strive for real transformation of society at large rather than small pockets of development 5. Learning: Use mentorship and coaching as the preferred way of people development and knowledge transfer 6. Trust: Establish an atmosphere of trust in business dealings based on an attitude of faith, love and integrity 7. Partnership: Use partnership as means to leverage skills and resources and breakdown barriers of fear between businesses 8. Relationship: Build lasting business relationships 9. Giving: Give generously because in the measure that you give it will be given back to you 10. Adding Value: Add real value by providing appropriate solutions to real needs (Partnering Process) The Mustard partnering process for matching enterprises and EDs is shown graphically in the figure on the right and consists of the following steps: 1. Assessment: An assessment of the established enterprise is performed in order to establish needs. The assessment will focus on their current BBBEE status as well as what the core processes and competencies of the enterprise are in order to understand what products and services can be provided by EDs. 2. Partnership: Once the enterprise needs are understood Mustard will match their needs with an appropriate ED or EDs. 3. Contract: The partnership is formalized with a contract that will outline Mustard s responsibilities and how the enterprise contributions will be used as well as define the objectives of the partnership. 4. Investment: Once the contract has been signed the investment process can begin. Investment can take a number of forms depending on the needs of the enterprise and ED. Loan finance is the preferred vehicle for financing the EDs. 5. Mentor-Coach: The investment process is managed by an accredited mentor-coach supplied by Mustard. The mentor-coach will already be working with the ED prior to any partnership so they will understand the ED and will be in a position to assist immediately. 6. Procurement: In the event that the ED can provide a product or service to the enterprise, Mustard will facilitate any business dealings in this regard. (Strategic Partners) Mustard is working with a number of organisations including the City of Cape Town in order to maximize the impact it can have. Some of the strategic partnerships are: Mentors and Business Coaches International ( Mustard Enterprise 3

5 Mentors and Business Coaches International (MBCI) is a worldwide network of experienced, accredited professionals, carefully selected and trained. They deliver solutions to organisations and individuals by providing facilitation, mentoring and coaching, enabling them to reach their God given potential in leadership and prosperity. MBCI Business Coaches will work with the Mustard EDs to identify and generate solutions and strategies for growth. MBCI South Africa is 50.1% black owned. Vive ( Vive is a business consultancy that is active in the areas of business consulting, human resource consulting, BEE consulting and enterprise development. South African Women Entrepreneurs Network ( Mustard believes in empowering women in business and to this end have partnered with the South African Women Entrepreneurs Network to aid access to women owned and managed businesses. (Benefits Summary) The benefits for contributing enterprises using Mustard s partnering service are: Your BEE status can be boosted by up to 35% (50% if you are a small enterprise). You can make quality, sustainable enterprise development investments and pursue preferential procurement opportunities with minimal admin. All contributions and COSTS contribute directly to your scorecard rating. Each ED you invest in will have a dedicated mentor-coach assigned to it which dramatically reduces the chance of business failure. You will receive regular and comprehensive reports to the status of your contribution and the ED(s) you invested in. Investing in SMMEs is risky but Mustard separates your enterprise from any failure in the event that the ED does fail. We turn enterprise development contributions into an opportunity rather than a risk. Doing business with other businesses that have chosen to do business ethically and have similar values to you. Getting the opportunity to do the right thing by investing back into small business and in so doing transforming your community and creating new opportunities for your business. The benefits for EDs using Mustard s partnering service are: Access to funding with limited or no personal surety requirements. Mentoring from a dedicated mentor-coach. Likely procurement opportunities within the Mustard network. Access to service providers within the Mustard network. (Contact Us) philip@mustardseed.co.za Tel Postal Address Website Mustard Enterprise PostNet Suite # 194 Private Bag X29 Somerset West, Mustard Enterprise 4