Want to become a Tony Elumelu entrepreneur? Here are 5 tips for success

LONDON — Calling African entrepreneurs: The Tony Elumelu Foundation is seeking applications for the 2018 round of its flagship entrepreneurship program, which provides training, mentorship, and networking opportunities, as well as up to $10,000 in funding, to 1,000 aspiring African businesses every year. With an additional 30 million young people set to enter the African workforce annually until 2030, the continent is in need of jobs and business opportunities for its young population. To meet some of this demand, the entrepreneurship program was launched in 2015 by Nigerian businessman and philanthropist Tony Elumelu. With an ambitious agenda, it aims to identify and help grow 10,000 businesses led by young entrepreneurs from across Africa over the next 10 years, and Elumelu has put $100 million of his own money into the program. Now in its fourth cycle, the program runs for 12 weeks, with the deadline for applications on March 1 and the winners due to be announced March 22. Those who get through receive a mixture of online business training, mentoring, help writing a business plan, networking opportunities, and $5,000 in seed funding. Some entrepreneurs are then also eligible to apply for an additional $5,000 in either loan or equity financing from the foundation. The program culminates with a conference in Lagos in October — billed as Africa’s largest gathering of entrepreneurs — during which the participants have a chance to meet each other and put themselves in front of potential investors and policymakers. The competition is open to applicants aged 18 and over and who are legal residents or citizens of an African country. The foundation is sector agnostic and is looking for African-based for-profit business ideas, but is also open to existing businesses as long as they are under three years old. Devex sat down with Somachi Chris-Asoluka, head of policy and external relations at the foundation, to find out more about the program and what the judges are looking for. Here are some key takeaways. 1. Competition is fierce so be prepared Application numbers have grown rapidly since the program launched three years ago, going from 20,000 in 2015 to 93,000 last year, Chris-Asoluka said — applicants who are competing for just 1,000 places. The number of female applicants has also risen from 23 percent to 39 percent over the period. The screening process is initially done by members of the foundation. Their top 10,000 -15,000 entries are sent to consultancy group Accenture, who then further refine the list to 1,200. The final 1,000 are chosen by a “selection committee of experts drawn from across Africa,” she explained. Considering the volume of applicants, Chris-Asoluka recommends hopefuls do their homework and find out as much about the program and the foundation as they can before applying, such as by attending some of the foundation’s information events, which are advertised through its Facebook page. These events provide would-be applicants with the chance to meet former Elumelu entrepreneurs and find out more about the program and tips for success. 2. Feasibility and market research In order to stand the best chance of success, applicants need to show they fulfil the foundation’s three main criteria, Chris-Asoluka explained. The first of these criteria is the feasibility and strength of the value proposition. “We are looking to see how feasible is your business; if we give you financial and nonfinancial support, are you going to able to grow this business?” she said. Showing you have done some basic market research, even if you are still at the idea stage, is a good way of demonstrating this, Chris-Asoluka said. The judges want to see evidence that an applicant has thought about their target audience, understands their demographic, and has considered questions such as what problem the product is hoping to solve and what gap in the market it will fill. “But this doesn’t mean you have to do something fancy or sophisticated,” she added. “Doing the basic [market] research will support your application.” 3. Long-term durability The second thing the judges are interested in is the long-term prospects of the business, Chris-Asoluka said. “We want to know, is this business a flash in the pan which will only be around for two years and then you have no more market,” she said, “so we want to know how durable is this business and what are your long-term plans?” This involves making some key assumptions about the value proposition, including thinking around how the product or service “will move from preliminary stages of sourcing and production, to the end stages of distribution and customer management,” according to additional materials the foundation shared with Devex in an email. 4. Entrepreneurial potential The entrepreneur’s background is the third key criteria for success when applying to the program, according to Chris-Asoluka. The foundation is looking for evidence of relevant experience that proves the applicant has the skills to build a business from scratch, manage and lead a team, navigate difficult situations, and innovate as required. “We want to know your background … What have you done in the past to show us your leadership skills, that you are accountable and driven, and that if we bank on you you won’t disappoint us,” she said. 5. Think beyond the money All entrepreneurs who make it through the program are given $5,000 with “no strings attached,” Chris-Asoluka explained, adding that while not a large sum in itself, the money is intended to be used as proof-of-concept funding and as “the first brick you need to build the mansion.” “I’ve seen entrepreneurs do amazing things with the $5,000,” she said, such as using the money to build a prototype which the entrepreneur then takes to an investment fair in order to attract bigger funding. After the first $5,000 cash injection, the applicants can apply for an additional $5,000 offered as a loan or equity stake. However, the majority of entrepreneurs find themselves in a position where they are seeking much larger amounts of money and so don’t apply for the second tranche, she said. For many, it is the training that proves to be the most valuable aspect of the program, according to Chris-Asoluka. The program covers business topics including marketing; building the right team and identifying talent; identifying your target audience; balancing the books; and using social media and digital tools more effectively. She added that a number of applicants who had already been to business school have claimed the 12-week training program they received from the foundation was more useful than their MBA, so it is important to think beyond the money on offer, and about the value of the program as a whole. Update, Feb. 12: This story was amended to reflect that this program is now known as The Tony Elumelu Foundation Entrepreneurship Programme