Entrepreneurialism And Escape From Poverty

March 23, 2010 on 8:24 pm | In Life | 17 Comments

A change of pace from our usual programming

How often do you consider why you’re in business?

That’s a question I’ve given a lot of thought to recently.

At first, most business owners report starting their own business to “be their own boss”, realise a vision or make money.

These factors certainly applied in my case when I established Marketing Results almost 7 years ago.

But after establishing a toehold, then a foothold, in the internet lead generation space, it seems natural to start thinking beyond these initial goals to the question of how much we are contributing to society at large as a company.

To this end, we decided to get involved in more charitable and pro bono activities. Rather than contribute money to a charity that (more often than not) simply spends it, I prefer supporting entrepreneurial projects that have the potential to benefit many people (the old “teach a man to fish” concept).

I’ve been donating to Kiva.org (microfinance) for some time, but when I visited South Africa in January an opportunity arose to help a local entrepreneur in a more direct way.

Here’s the background:

While visiting Cape Town, one of the highlights was taking a “Township Tour”.

“Townships” are the name for the crowded, informally planned mainly black communities that sprung up under the apartheid regime. They are typically woefully under-serviced with infrastructure and are in the process of playing catch-up.

Our guide, Siviwe Mbinda was recommended by Lonely Planet and took us on a 2-hr walking tour – providing a brief history on the way, showing us the local sites and allowing us to meet and interact with the locals.

For 34 rand (about $5) the local sheep-head stall will cook you up a whole sheep head, which is a local delicacy. We saw sheep heads being cooked and eaten but declined the offer to try some ourselves.

The townships have a reputation as hotbeds of crime and vice, but in Langa, the community is actually very strong and cohesive, struggling against many social challenges including poverty and HIV/AIDS with energy and resourcefulness.

Siviwe showed us through the upper-class, middle-class and lower-class areas of the township. Upper-class homes were on freehold blocks and were in good repair with electricity and running water. Prices of these homes are between 500,000 and 750,000 rand ($70K to $100K AUD), which is a fortune to most of the people living there (the minimum wage is ZAR 1,300 per month, or about AUD 200).

Middle-class homes were on smaller blocks and tended to be more modest in size (perhaps 2 bedrooms, a living area, a bathroom and a kitchen. These houses go for $30K to $50K AUD.

At the lower end were government owned hostels, which were 6 bedrooms with a common area in the middle. Originally built to house 3 men per tiny room, the hostel we saw now houses 16 families, with kids sleeping in the common area at night. A bed in a room here costs just ZAR 30 per month ($4.50) – a price tag that explains the enduring popularity of hostels.

At the very lower end were the shacks – very small, informal housing constructed by the people out of discarded building supplies, off-cuts and plastic sheeting. The shacks have no electricity or running water and are usually located in the least desirable areas (e.g. right next to a busy highway).

Nevertheless, the people we met were smiling and eager to engage with us foreigners and practice their English (which was much better than my Xhosa).

At the end of the tour, Siviwe took us to watch a local dance troupe perform the “Gumboots Dance”, a dance that originated in the mines of South Africa around 100 years ago. Siviwe gives up 3 afternoons a week to teach the local kids the dance as well as life skills.

We loved the whole experience and would recommend it to any visitor to Cape Town. I offered to build Siviwe a website and when I returned back to Australia, we convened a volunteer project team to put something together – the result is this Cape Town Township Tours website (membership in the team was voluntary, and I have to hand it to the staff members who participated, who gave up their free time to work on the project. Thanks to Nick, Ken, Mick and Stroggy!)

Siviwe has already reported a few new clients via the website and his hope is that he will be able to employ others in the township who hold tour guide qualifications in order to expand his business.

This initial foray into pro bono work was relatively successful and I look forward to seeing the results that come from it for Siviwe. I even got to thinking that it would be cool to have a “Kiva for Services”, where providers can donate expertise to people in need — not sure if something like that already exists?

17 Comments »

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The more you give, the more you receive.

That is definitely a great idea. Why not invest in entrepreneurial projects rather than just donating to charity. I guess doing this is more helpful in the long run. Thanks for the idea!

Comment by Andrew@BloggingGuide — March 25, 2010 #
I spent 18 months in South Africa, 6 months of that in Cape Town. I spend a lot of time in those townships… The Xhosa’s are great, aren’t they? I think it is wonderful that you are doing this to help. Every effort makes a difference. I hope you will continue your charitable contributions! Thank you!

Comment by Ryan Michael — March 26, 2010 #
Philantrophy seems to be a common trend for entrepreneurs of all kinds. It’s always a good thing when successful people give back to the community. Plus, it’s a proven fact that giving back establishes a mindset of wealth abundance, which almost always leads to even more money =)

Comment by Physical Therapy Marketing — March 28, 2010 #
My, haven’t you gone philanthropic Good on ya!

Comment by Chris Khoo — March 29, 2010 #
Plus, it’s a proven fact that giving back establishes a mindset of wealth abundance, which almost always leads to even more money

Comment by ysf — April 3, 2010 #
Sounds like a great trip to Africa. Micro-lending has also been very interesting, and as you mentioned, your priorities change. Initially for me as an entrepreneur, I wanted to be my own boss as mentioned, but now being involved in microlending seems appealing. It’s sure amazing how it can makek ka difference, such a small amount.

Comment by Low cost dedicated servers — April 9, 2010 #
At the end of the day, empowering people to have a greater control of their financial future is almost always a good thing. Stimulating micr-business and self sufficiency is definitely the way forward for developing nations imho

Comment by denver co foreclosures — April 23, 2010 #
Wow, this is really good of you and it looks like you’re making a real difference. I had been thinking about starting to contribute to Kiva soon, and you’ve encouraged me do it even more.

Comment by Park Transfer — April 30, 2010 #
i think that is awesome that you donate to Kiva, a few of my good friends, entrepreneurs as well who make triple digits a year also donate to Kiva, a good chunk change i my add, at first i did not understand why, but the more i am getting into the field, the more i see the reasons. one day when i have the funds myself, i will most def. donate and support
great article, thank you

Comment by spyware king — May 5, 2010 #
I don’t know anything about microlending. I am so new to business world. Hopefully when I enter corporation in the future I can be able to do what you have done. I will certainly remember your article. Micro lending interest me more now.

Comment by Chandler Chiropractic — May 8, 2010 #
That’s great I must say .investing in entrepreneurial projects is really a great idea. You aredonating to Kiva is awesome.

Comment by url shortener — May 11, 2010 #
I have always heard parents tell their kids to study hard so that they can get a good-paying job after college and hopefully climb out the poverty rut.

In reality..it is the ones that are in business that get themselves out faster. Be your own boss. Leverage your time. Use the internet!

Very good post

Comment by Gilbert Chiropractic — May 27, 2010 #
Helping others by doing charitable way is very good example for others to follow. Doing business with a purpose of helping others who need help will have a great and prosperity result . What i like on this blog is the old concept “teach a man to fish”. The lesson the next time the man need a fish they will know how to get it because you teach them.

Comment by Ryan Wilson — July 26, 2010 #
Not all individuals and businesses have that mind set of helping while earning. Most of them disregard their social responsibility to people. That’s how money can change everything.

Comment by Kiel — August 1, 2010 #
I salute those people who still think about the welfare of other people than their own benefit. As a freelancer and entrepreneur, I’d rather want to have a golden heart than to have an insensitive attitude.

Comment by David — August 2, 2010 #
Investing in an entrepreneurial projects that could benefit many people is really a great idea.It is given that most entrepreneurs are profit-seekers itching to get into the money-making world too quickly.However, there are some who think that doing business is not all about money.They can as well an agent of transformation.Transformation in terms of the lives of poor.Thanks for sharing! You really have a good heart!

Comment by dui attorney los angeles — November 5, 2010 #
Philantrophy seems to be a common trend for entrepreneurs of all kinds. Doing business with a purpose of helping others who need help will have a great and prosperity result. Good blog. Thumbs up

Comment by P90x — November 8, 2010 #