1 (50 marks)

Read the article below and answer the questions accordingly.

A glimpse into a young entrepreneur's life

Namibian | 2013-04-16

'I REMEMBER about four years ago I was sitting at home with a broken bead-bracelet and an idea crossed my mind to make something out of it, instead of just throwing it away. So I took a piece of wire from our fence and made hoop earrings out of the beads. It turned out just fine.' These were the words of Jacobina Newaka as she related how she began her jewellery-making business.

The 22-year-old said she embarked on the journey to search for materials to make jewellery and she has been making pieces of jewellery since 2009. She said while growing up, she realised she has always been creative with her hands, so venturing in this type of industry came naturally to her. A bright and bubbly character Jacobina sounded very spiritual highlighting that she derives most of her inspiration from God. 'I am a child of God therefore I draw most, if not all my inspiration from the Bible. There's a verse in the bible (Deuteronomy 30) that says 'The Lord your God will make you most prosperous in all the work of your hands... '. Therefore with gifted hands I have the quality or power to create almost anything that I can imagine,' she said.

The enthusiastic Jacobina described a typical day in her life as a quiet but full one. Her love for colour and creativity inspires most of her pieces and expresses originality. 'I use different types of material i.e. plastic, glass or wooden beads, clothing material, buttons, chains, different types of wire and a variety of metal pieces to construct chandelier earrings, hoops, studs, necklaces, bracelets and fashion rings.' With a niche in what she does, Jacobina is one of the most prolific entrepreneurs not only interested in making profit but provides start up tips for learners who wish to become jewellery makers.

The young self-employed visited Academia High School and Namibia Children's home when a friend of hers who interned at the two institutions invited her during one of her life-skill's lessons. 'I taught the children how to make jewellery. I shared with them how to stay innovative and how to be a young successful business person while putting your studies first,' she said. Jacobina's jewellery business is self-funded. Although it might be a challenge at times she believes it pays off. 'It does pay off because when it comes to jewellery-making, your profit depends on how effectively you use your materials and appropriate pricing, yet still maintaining quality.' If you are an aspiring young entrepreneur like Jacobina and feel the need for financial assistance do not lose one's life due to lack of funds.

While the perception around young entrepreneurs may be overwhelmingly positive, Jacobina said it is not as easy as it seems to make it in the jewellery industry. 'There were times when I felt like giving up. Sometimes there are no customers and I just wanted to quit and give up. I have however learned that giving up is not an option because the little you get is better than nothing.' Another challenge, she added, is the limited access of raw materials from which the jewellery items are made from. On a good day Jacobina makes good money. When she started four years ago her capital was exactly N$100. 'From that N$100 I made N$80 profit and invested the N$180 back into the business. After selling more items, her profit increased to N$144 and the process repeated itself. At times I make over 100 percent profit. So you can calculate how much I have made over the years. And like I said before, in the jewellery business depends on how effectively you use your materials and how your items are priced. Prices range from N$5 to N$25,' she said. Jacobina makes custom designs for her clients.

'I also re-model their old jewellery or re-assemble old jewellery and make something completely new. 'Furthermore I make customized jewellery for weddings too. So if you have a wedding lined up, do get in touch with me and let people turn their heads at your special event.' She encouraged young people interested in embarking in the sort of business that she has to start with whatever they have. 'Don't wait to be established in a certain way in order for you to start a jewellery business. Don't let your God-given hands lie idle. Apply your creativity and create a loyal customer base that is really important in the jewellery business.'

Jacobina plans to grow her business by adding different fashion accessories to her range of products. Currently in addition to the jewellery, she also makes handmade bags.

'In the near future I will add clothing to it as well and perhaps open my own store.' If you are interested in her crafts visit Garlic and Flowers on the first Saturday of every month, or contact.

Questions

1. It is clear from the case study that Jacobina wants to grow her business. The potential of the type of business she is in to sell internationally is very big. Before she could trade internationally she should develop a global strategy. Explain the principles that she should adhere to for developing such a strategy. [25]

2. Jacobinas venture is still in the growth phases and therefore she needs to do a lot of marketing. One way is to create a website. Discuss online tools that she may use to either attract or retain customers if she wants to promote a website. [25]