Introduction

Mohapi Group has identified the need to assist individuals preparing for retirement to start small businesses that can sustain their lifestyles hopefully over a long term period. There is a high risk of longevity for members of the retirement funds which means most retirees outlive their retirement income (annuity). The biggest disadvantage when you are on retirement is that most individuals earn less in income (annuity) than their usual monthly salary. There is around 25% shortfall known as the Net Replacement Ratio (NRR).

What is the Plan?

Some companies through their Social Corporate Investments (SCI, prepare their retirees with a course on entrepreneurship. The companies ask their employees to identify small business ideas that they can pursue whilst on retirement to boost their income. This is done early enough (some 2-3 years) before the members retire as part of their skills development in entrepreneurship.

Once employees identify their business ideas, the company then appoints a service provider like Mohapi Group to facilitate their entrepreneurship program, and upon completion of the seven to ten days course, the employer provides the retiring employee a grant to buy equipment and other resources needed to start the business.

Our Approach at Mohapi Group

Step 1:           Personal Financial Counselling

We identify the financial needs of each employee to make sure they plan for their retirement honestly and openly.  Our facilitators go through their personal budgets to identify income and expenses, debts, dependants and their goals.

Step 2:           Entrepreneurship Counselling

Our facilitators will assess business ideas, business skills and growth potential from the employees.

Step 3:           Entrepreneurship Workshops

Once employees have identified their business ideas, the facilitators will start the entrepreneurship workshops based on the following content:

  • Will my business idea work?
  • Resources I need to start my business
  • How do I market my product?
  • What is costing & pricing?
  • How do I write my business budget?
  • How do I write my business plan?

This is a five-day course for all employees who want to start their small businesses. The course is delivered in vernacular, very interactive and very simple to follow.

Step 4:           Mentoring & Coaching

Our facilitators assist the employees to set-up their businesses, here is an example:

Thabo wants to start a spaza shop; the facilitator will assist Thabo to set up his spaza shop. We identify the appropriate location and relevant resources such as:

  • Location
  • A business container
  • Groceries
  • Security
  • Employees

The facilitators will also look at other business matters such as:

  • Pricelist of all the items
  • Operating hours
  • Profit mark-up
  • Delivery of goods
  • Growth potential
  • Daily customers in his community
  • Monthly budget for the business
  • His personal budget
  • SWOT analysis

Step 4:           Growth Potential

After a year of operation, the facilitator will assess if the retiree can grow their business from start up to a small enterprise.   Where there is potential, the retiree can approach any government funding institution or bank with the assistance of the facilitator.

Most retirees usually start a small business with their families as part of their succession plan, this means the business will continue even after the death of the retiree.

Step 5:           Awards

Employees will be awarded a certificate of participation including mentoring & coaching. The certificates will be in the name of the employer.

Benefits of this Program to the Employer

  • The employers will be recognised for empowering their retirees
  • The employees will have a better relationship with their employees
  • The employers will eradicate poverty in their employees’ communities through this program
  • Retiring employees will not worry about their future
  • Retiring employees will not be destitute