World Creativity and Innovation Day on 21 April, and World Design Day on 27 April, highlight the vital role that design and innovation play in job creation and economic development.
The creative economy refers to sectors that rely on human creativity, skills, and intellectual property, such as design, media, entertainment, and the arts.
In countries in which data is available, the creative sectors contribute 0.5%-7.3% to gross domestic product, and employ between 0.5% and 12.5% of the workforce. This is according to the Creative Economy Outlook 2024, issued by the United Nations Conference on Trade and Development.
Job creation is crucial in South Africa. During the fourth quarter of 2024, the unemployment rate was 31.9%, according to Statistics South Africa, with unemployment among young people aged 15 to 24 years particularly high at 59.6%. The rate was 41.7% for those aged 25 to 34 years.
“Many people dream of turning their passion into a sustainable source of income,” says Sarah Nicholson, operations manager at JustMoney, a platform that helps South Africans make good money choices.
“A brilliant idea is, however, only the start of your journey. Turning it into a successful, scalable business requires long-term commitment and a solid business strategy.”
JustMoney offers the following tips to develop a concept into an income source.
- Identify a market need. Research whether there is a demand for your product or service. Identify potential customers and assess competitors.
- Develop a business plan. Outline your goals, target audience, pricing structure, and marketing strategy. Include key details such as start-up costs, operating plans, and revenue projections.
- Create a strong brand identity. Develop a memorable name, logo, and mission statement.
- Start small. Before investing heavily, test your products or services with online communities to gauge interest and gather feedback.
- Set up efficient financial management. Register your business. Keep track of earnings and expenses, separate business and personal finances, and comply with tax requirements. Reinvest profits in growth.
- Network and collaborate. Engage with industry peers, join local organisations, and participate in online communities.
- Stay adaptable. Success won’t happen overnight, and challenges will arise. Be open to feedback, stay informed about industry trends, and continuously refine your approach and product or service.
How to access support
Funding is a stumbling block for many innovators. While several local banks provide specialist small business advisory services and start-up loans, they are concerned about risk and insufficient credit histories and collateral.
Non-traditional financing solutions are increasingly available, however. Examples include government grants; equity funding, where an investor owns a percentage of the business; and angel investors – usually high-net-worth individuals who invest their own money in early-stage, high-potential businesses. They often provide mentoring and networking opportunities as well.
Examples of organisations that provide funding and/or support include the following:
- The Department of Trade, Industry and Competition. This organisation offers numerous incentives. The Support Programme for Industrial Innovation (SPII), for example, focuses on the development phase of new product-based businesses, when basic research has been done and a pre-production prototype is created. Find out more on the dtic and SPII websites.
- University programmes. Tertiary institutions offer many programmes to stimulate entrepreneurship and innovation. For example, the Department of Science and Innovation, in partnership with the UN Development Programme, launched the Higher Education Innovation Fund (HEIF) last year. Read more about it here.
- Small Enterprise Development and Finance Agency (Sedfa).Sedfa supports micro, small, and medium enterprises (MSMEs) with financial and non-financial resources. Learn more at Sedfa.org.za.
- The Jobs Fund.The Jobs Fund co-finances projects by public, private, and non-government organisations that will contribute significantly to job creation. Visit The Jobs Fund for more.
- SA SME Fund.This fund was set up by the CEO Initiative, a collaboration between government, labour, and business. It allocates investment capital to accredited fund managers – venture capital or growth-oriented equity funds – that invest directly in scalable small and medium enterprises. See the SA SME Fund website for more.
- South African Venture Capital and Private Equity Association (SAVCA). SAVCA promotes private equity, private debt, and venture capital. See SAVCA.co.za for more.
- Incubators and accelerators.These provide mentorship, training, and financial support. Programmes include The Innovation Hub in Pretoria and Grindstone Accelerator.
- Private sector support. Some corporates support start-ups through enterprise development initiatives. The Telkom FutureMakers enterprise and supplier development programme is a good example. Find out more on the FutureMakers web page.
- Crowdfunding and alternative financing. Platforms such as Thundafund and Uprise.Africa enable entrepreneurs to raise funds from the public and investors.
- Craft and Design Institute (CDI). This non-profit development agency’s services include a well-resourced Cape Town facility offering tools and processes. Register for free as a CDI member, then book a one-on-one consultation with a skilled product support adviser. Visit CDI.org.za for more.
“Turning your creativity and passion into a profitable business demands dedication, strategic planning, and perseverance,” concludes Nicholson.
“Networking connects innovators with industry players, mentors, and potential collaborators. Funding fuels the development and scaling of ideas. All these factors help creators turn their concepts into market-ready solutions, so that ultimately the country can create more jobs.”
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