[Date]

ETP3701 Assignment
4 Semester 1 2024
(590015) - DUE 22
May 2024
QUESTIONS AND ANSWERS
ETP3701 Assignment 4 Semester 1 2024 (590015) - DUE 22
May 2024

CASE STUDY
Agripreneur: Ngwamba turns agricultural trash into burning treasure With a
passion for sustainability and innovation, Given Ngwamba transformed
adversity into opportunity, creating Nzilo Charcoal and paving the way for
eco-friendly grilling solutions. Years ago, Given Ngwamba’s garage in Ka-
maqhekeza, Mpumalanga was transformed into an impromptu innovation
hub, filled with homemade machines that would ultimately bring his ground-
breaking idea to fruition. He wanted to create coal using agricultural waste
such as groundnuts, sugarcane, macadamia shells, coconut, and waste from
mango leaves and banana trees. The idea came after Ngwamba found himself
at a crossroads in 2019 after a failed business venture left him seeking a new
beginning. “We built our own machines and experimented with different
materials. It wasn’t easy, but we were driven by the potential impact. “We’ve
gone from a handful of friends tinkering in a garage to a growing team;
employment opportunities in our community are incredibly rewarding,” he
says. Turning waste into wealth The name of Ngwamba’s business is Nzilo
Charcoal, which means “hope” in the local dialect. He sells his
environmentally-friendly briquettes to local retailers like Vleis Paleis
Nelspruit and Naas SuperSpar for R37 per bag who add their markup. Those
who buy directly from Ngwamba pay R50 per bag. At the core of Nzilo
Charcoal lies the principle of agricultural sustainability by repurposing waste
into valuable resources for producing cleaner-burning charcoal. In a
meticulous process, Nzilo Charcoal begins by gathering agricultural waste
such as sugarcane husks, corn stalks, and woodchips from nearby farms.
“This waste becomes the fuel for our eco-friendly briquettes,” Ngwamba
explains. These raw materials undergo a transformative journey starting with
sun-drying, an eco-friendly technique that harnesses the power of natural
sunlight. Once thoroughly dried, the material is then subjected to
carbonisation within specially designed kilns, where it undergoes a
metamorphosis into charcoal. The final stage of this artisanal process involves
Nzilo Charcoal’s handcrafted machines that compress the carbonised
material into dense briquettes. This careful sun-drying process over several
days not only ensures the purity of the end product but also guarantees clean-
burning charcoal, Ngwamba says. “Our briquettes burn cleaner, releasing
fewer harmful emissions.” Ngwamba’s vision for a greener tomorrow The
road to success was not paved with ease. Limited access to funding and
machinery presented a constant hurdle. The three Covid years added an
additional layer of challenge. However, Ngwamba stayed strong and focused.
He used the time to improve his methods, driven by a strong desire to find a
lasting solution for his community. With the business doing well, he hopes to
replicate his briquette concept elsewhere. “Our affordable pricing makes
sustainable grilling accessible to everyone. “We’re a testament to the power of
innovation and collaboration. We started small, but our impact is growing,
and we invite others to join us on this journey towards a greener tomorrow,”
explains Ngwamba. Advice to aspiring entrepreneurs Ngwamba’s message to
aspiring entrepreneurs is to be passionate, work hard, and be innovative as
these are the cornerstones of success. He encourages them to: Find their
niche: Identify areas within the charcoal industry where they can offer eco-
friendly solutions. Embrace resourcefulness: Look for creative ways to utilise
waste materials or optimise existing processes. Be persistent: Building a
successful business takes time and perseverance. Don’t be discouraged by
setbacks. Source: Agripreneur: Ngwamba turns agricultural trash into
burning treasure - Food For Mzansi Essay
Question 1
Entrepreneurship & Sustainability (20)
Critically analyse how Given Ngwamba's Nzilo Charcoal exemplifies both
entrepreneurial innovation and its potential contribution to a sustainable
future in South Africa. Consider the types of innovation involved and how
Nzilo Charcoal addresses environmental concerns.
• • Explain how Nzilo Charcoal represents innovation (2)
• • Discuss the different types of innovation and identify the one that Nzilo
charcoal is involved with (10)
• • Explain how this innovation contributes to a sustainable future and
addresses environmental concerns (8)
Entrepreneurship & Sustainability: Nzilo Charcoal as an Example
Given Ngwamba's Nzilo Charcoal exemplifies both entrepreneurial innovation and
contributes to a sustainable future in South Africa in several ways.
Innovation at Nzilo Charcoal (2 points)
• Product Innovation: Nzilo Charcoal offers a new product – eco-friendly
charcoal briquettes made from agricultural waste. This caters to a growing
demand for sustainable alternatives in the braai (barbecue) culture of South
Africa.
Types of Innovation and Nzilo Charcoal (10 points)
Nzilo Charcoal primarily uses product innovation (1 point). They introduce a
novel product (charcoal briquettes from waste) that uses existing production
methods (carbonization and briquette formation) but applies them to new materials
(agricultural waste).
Contribution to Sustainability (8 points)
Nzilo Charcoal addresses environmental concerns through multiple aspects:
• Reduced Deforestation: By using waste materials, Nzilo Charcoal reduces
the reliance on cutting down trees for traditional charcoal production,
promoting forest conservation.
• Waste Management: Nzilo Charcoal diverts agricultural waste from
landfills, promoting a circular economy where waste becomes a resource.
• Cleaner Burning: The sun-drying process ensures a purer product that
burns cleaner, releasing fewer harmful emissions compared to traditional
charcoal.
Overall Impact (2 points)
Nzilo Charcoal's innovation creates a positive social impact by:
• Creating Jobs: The company employs people in the production process,
boosting the local economy.
• Affordable Sustainability: Their product offers a sustainable alternative at
a competitive price, making eco-friendly grilling accessible to a wider
audience.
In conclusion, Nzilo Charcoal demonstrates how entrepreneurship and product
innovation can address environmental concerns and contribute to a more
sustainable future in South Africa.
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Essay Question 2:
Entrepreneurship & Opportunity Recognition (25)
Discuss how Given Ngwamba identified a business opportunity from
agricultural waste, considering the Creativity Model. Analyse the model (4Ps)
and how they might have played a role in Ngwamba's journey.
• • Describe the problem/opportunity Ngwamba identified provide examples
from the case study (5)
• • Apply and analyse the Creativity Model ( 4P’s) and the role it played in
Ngwamba’s journey (20)
Entrepreneurship & Opportunity Recognition: Nzilo Charcoal
Given Ngwamba identified a significant business opportunity from agricultural
waste, as evidenced by his creation of Nzilo Charcoal. We can analyze his journey
through the lens of the Creativity Model (4Ps).
Problem/Opportunity Identified (5 points)
Ngwamba identified a two-fold problem:
• Environmental: Traditional charcoal production contributes to
deforestation and air pollution. (Case Study mentions limited access to
funding, so deforestation for charcoal could be an underlying assumption).
 • Waste Management: Agricultural waste disposal creates a burden on
resources and can lead to environmental issues.
Creativity Model (4Ps) and Ngwamba's Journey (20 points)
The Creativity Model (4Ps) can be applied to understand how Ngwamba identified
and developed his opportunity:
• Person: Ngwamba's passion for sustainability and innovation fueled his
drive to find a solution (Case Study mentions his desire for a lasting solution
for the community). His background and skills likely also played a role.
Perhaps he had experience working with agricultural waste or knowledge of
charcoal production.
• Process: Experimentation was a key element in Ngwamba's journey. He
built his own machines and tried various materials (Case Study mentions
building machines in a garage and experimenting with different materials).
This iterative process is crucial for innovation.
• Press: Environmental concerns and a growing demand for sustainable
products likely influenced Ngwamba's thinking. Additionally, the challenge
of finding a new beginning after a failed business venture might have pushed
him to find a solution with social impact (Case Study mentions a failed
business venture and finding hope through Nzilo Charcoal, which means
"hope" in the local dialect).
• Product: The core innovation lies in the product itself – eco-friendly
charcoal briquettes made from agricultural waste. This novel product
addresses the environmental concerns surrounding traditional charcoal
production and waste management (Case Study describes the use of waste
materials like sugarcane husks and corn stalks).
Analysis of the 4Ps in Ngwamba's Journey
Ngwamba's passion for sustainability (Person) likely led him to identify the
environmental issues surrounding traditional charcoal (Press). Through
experimentation (Process), he developed a new product (Product) – Nzilo
Charcoal – that addresses these concerns by utilizing waste materials. The growing
demand for sustainable solutions (Press) further fueled the potential of his product.
Overall, the Creativity Model highlights how Ngwamba's personal
characteristics, his iterative approach, the external environment, and the
innovative product itself all played a crucial role in his entrepreneurial
journey.
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Essay Question 3:
Entrepreneurship & Social Impact (20)
Evaluate the social and economic impact of Nzilo Charcoal on the local
community in South Africa. How does Nzilo's business model contribute to
this social and economic impact?
• • Discuss how Nzilo Charcoal benefits the local community socially (4)
• • Discuss how Nzilo Charcoal benefits the local community economically (4)
• • Explain how the affordability of Nzilo's product makes it accessible to a
wider audience (4)
• • Discuss the 8 managerial success factors that Ngwamba needed to consider
(8)
Entrepreneurship & Social Impact: Nzilo Charcoal
Nzilo Charcoal brings positive social and economic benefits to the local
community in South Africa through its innovative business model.
Social Benefits (4 points)
• Job Creation: Nzilo Charcoal employs people in the production process,
generating income and empowering the local community (Case Study
mentions a growing team creating employment opportunities).
 • Environmental Awareness: The company promotes environmental
consciousness by offering a sustainable alternative to traditional charcoal,
potentially inspiring others to adopt eco-friendly practices.
Economic Benefits (4 points)
• Economic Growth: Nzilo Charcoal contributes to the local economy by
creating jobs, purchasing raw materials from nearby farms, and potentially
stimulating further innovation in sustainable products.
• Reduced Reliance on Traditional Charcoal: By offering a viable
alternative, Nzilo Charcoal could help reduce the demand for traditional
charcoal, potentially benefiting local communities affected by deforestation.
Affordability and Accessibility (4 points)
Nzilo Charcoal's pricing strategy plays a crucial role in its social impact.
• Competitive Pricing: The case study mentions Nzilo's charcoal being
affordable, allowing a wider audience to choose the eco-friendly option.
This makes sustainability more accessible and promotes wider adoption.
Managerial Success Factors for Nzilo Charcoal (8 points)
Ngwamba likely considered several managerial success factors to ensure Nzilo
Charcoal's sustainability:
• Market Opportunity: Identifying the growing demand for sustainable
products and the problems of traditional charcoal production.
• Financial Planning: While the case study doesn't mention specifics, Nzilo
likely had to manage finances carefully, considering limited access to
funding was a challenge.
• Marketing and Sales: Building brand awareness and effectively reaching
customers are crucial for any business.
• Operations Management: Developing efficient production processes and
managing resources effectively is essential for Nzilo's success.
• Innovation and Development: Continuous improvement and adaptation are
necessary to stay ahead of the curve in a competitive market.
 • Team Building: As the business grows, building a strong and motivated
team is essential.
• Customer Service: Providing a positive customer experience builds brand
loyalty and encourages repeat business.
• Social Responsibility: Nzilo's commitment to sustainability demonstrates
its social responsibility, potentially attracting eco-conscious customers and
investors.
Conclusion
Nzilo Charcoal's business model demonstrates the positive social and economic
impact an innovative, sustainable venture can have on a local community. By
creating jobs, promoting environmental awareness, and offering an affordable
product, Nzilo Charcoal paves the way for a greener future while empowering its
community. Ngwamba's careful consideration of managerial success factors will be
crucial for Nzilo's continued growth and positive impact.
DISCLAIMER: THE ABOVE ASSIGNMENT MIGHT BE DOWNLOADED
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Essay Question 3:
Entrepreneurship & Challenges [25]
Given Ngwamba faced numerous challenges in starting his business. Drawing
on the case study the module content and your own research, discuss the
challenges typically faced by entrepreneurs and propose strategies to
overcome them in the South African context.
• • Identify specific challenges faced by Ngwamba from the case study (5)
• • Discuss broader challenges typically faced by entrepreneurs in South
Africa (10)
• • Propose strategies to overcome these challenges (5)
• • Explain how building resilience can help entrepreneurs navigate
challenges. (5)
Entrepreneurship & Challenges: Nzilo Charcoal and the South African
Landscape
Given Ngwamba's journey with Nzilo Charcoal exemplifies the challenges faced
by entrepreneurs in South Africa. By analyzing his experience and broader South
African realities, we can explore strategies for overcoming these hurdles.
Challenges Faced by Ngwamba (5 points)
• Limited Access to Funding: The case study mentions this as a constant
obstacle, hindering the ability to acquire necessary machinery (Case Study
mentions limited access to funding and machinery).
• Lack of Resources: Building his own machines in a garage suggests a lack
of access to proper equipment and resources.
• Uncertainties of a New Venture: Nzilo Charcoal being a new business idea
likely faced challenges in establishing itself and gaining market traction.
• Impact of External Events: The Covid-19 pandemic is not explicitly
mentioned but could have disrupted operations and posed additional
challenges.
Broader Challenges for South African Entrepreneurs (10 points)
Drawing on the case study and general knowledge, South African entrepreneurs
often face:
• Financing Difficulties: Limited access to funding from banks or investors
can hinder business growth.
• Infrastructure Issues: Unreliable electricity supply (loadshedding) and
poor transport networks can disrupt operations and limit market reach.
• Red Tape and Bureaucracy: Complex regulations and lengthy procedures
can make starting and running a business difficult.
• Skills Gap: A lack of necessary business skills, like marketing or financial
management, can hinder decision-making.
 • Crime and Security: High crime rates can lead to theft, property damage,
and a sense of insecurity.
Overcoming Challenges: Strategies for South African Entrepreneurs (5
points)
Several strategies can help South African entrepreneurs navigate these challenges:
• Bootstrapping and Resourcefulness: Utilizing personal savings, creative
problem-solving, and seeking alternative funding sources like grants or
competitions.
• Networking and Collaboration: Building relationships with other
entrepreneurs, mentors, and industry experts can provide support, advice,
and potential partnerships.
• Leveraging Technology: Embracing online platforms for marketing, sales,
and communication can be cost-effective and reach a wider audience.
• Upskilling and Training: Investing in acquiring necessary business skills
can increase the chances of success.
• Formalization and Compliance: Following regulations and seeking
guidance from relevant authorities can help avoid future problems.
The Importance of Resilience (5 points)
Building resilience is crucial for entrepreneurs to navigate challenges. This
involves:
• Developing a Positive Mindset: Maintaining a belief in oneself, the
business idea, and the ability to overcome obstacles.
• Adaptability and Flexibility: Being able to adjust strategies and business
models in response to changing circumstances.
• Learning from Mistakes: Seeing failures as learning opportunities and
using them to improve future decisions.
• Perseverance and Grit: Having the determination and willpower to keep
going even when faced with setbacks.
Conclusion
Given Ngwamba's story exemplifies the challenges and triumphs of
entrepreneurship in South Africa. By implementing effective strategies and
fostering resilience, entrepreneurs can navigate these hurdles and contribute to a
thriving South African business landscape.
DISCLAIMER: THE ABOVE ASSIGNMENT MIGHT BE DOWNLOADED
BY MULTIPLE STUDENTS, NOT ADVISABLE TO SUBMIT DIRECT!!
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help:
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