Mail & Guardian reporters
“South Africa’s success stories of tomorrow are not yet in business today,” says Hugh Herman, chairperson of the Investec Group. “If meaningful empowerment comes with the creation of sustainable employment, then we all have a role to play in helping small business take root.”
Investec feels strongly about stimulating a vibrant entrepreneurial society in which to do business, says Herman. Throughout the years it has identified and financed businesses, many of which have grown into successful corporations. “Our intrinsic culture of entrepreneurship and our roots in the Johannesburg inner city became our catalyst to create an entrepreneurial centre for small businesses there the first of its kind in South Africa.”
Investec donated its building at 58 Marshall Street, Johannesburg, to house a cluster of businesses supporting entrepreneurs The Business Place. Investec has carefully selected these tenants, primarily small businesses that offer core services, including access to finance, basic business training and information, and ideas for business start-ups. Legal and accounting services are also provided by corporations. Community networks have been included in The Business Place to help them receive direct business support.
About 1 000 business people (primarily black entrepreneurs) seek advice, training or services from The Business Place each month.
“Although it is widely agreed that a culture of entrepreneurialism should be nurtured, efforts are hamstrung by the government’s budgetary constraints and lack of funding for small organisations,” says Herman.
“Through The Business Place we hope to create an innovative, sustainable model for small and micro entrepreneurs that can be replicated nationally and internationally.”
As the Investec Group itself is a visible product of an entrepreneurial culture, Herman says that the decision to focus on accelerating job creation in the small, micro and medium enterprise sector was an easy one. “The Business Place fulfils a very desperate need for those entrepreneurs who have the ideas, but lack the tools to see their ideas through.”
The Business Place’s tenants include:
* Rutec, established in 1983, which has helped thousands of disadvantaged people start their own business. Rutec shareholders are the Mineworkers’ Development Agency, the Land Bank and founder John Dommett.
* The Community Education Computer Society, formed in 1985, which aims to reduce the gap between rural and urban IT skills levels.
* Hypercube, a business development service that offers one product for one price and access to its resource and computer centre for one year. The centre offers basic courses in computers, marketing, contracts, drawings, tender documents, costing, time scheduling, cashflows and forecasting.
* Lesedi La Sechaba (The Light of the Nation), which started in the townships of the East and West Rand when women there began working together to educate others about day- care. The training grew to include early childhood education, educare and the exchange of ideas and skills.
* The Greater Johannesburg Business Advice and Information Centre, which is a programme for the promotion of small, medium and micro enterprises. The nationwide infrastructure brings together the government, local communities, business organisations and the private sector to develop and promote small business.
* Ndinisa Global Trade, which provides information about government export programmes for small , medium and micro enterprises, is a member of the National Export Advisory Council, chaired by Minister of Trade and Industry Alec Erwin.
* Karabo Financial Consultancy, which is a division of New Era Financial Agencies. It offers personal finance advice in investment and portfolio planning, debt management and credit bureau clearance. In addition entrepreneurs can seek advice about business plans and registration, medical aid schemes and wills and testaments.
* The Sakhisizwe Trust, formed after the 1998 Job Summit, which aims to alleviate poverty, create jobs and forge a role for the church in tackling developmental challenges.
Churches are the main shareholders, with Zimunathi Investment Company holding the remaining 30%. Sakhisizwe is funded by the services it renders to churches. The trust trains the unemployed with its Micro MBA course.
* The South African Graduates Development Association, an NGO youth initiative that offers training for starting a business, mentoring and counselling. It seeks to improve the employability of graduates by enhancing their skills and encourages them to become development agents, engaging them in community development projects.
* Kagiso Business Consultants, started in 1997, which offers help preparing business plans, feasibility studies, training for business, accounting and advice and mentorship.
* The Best Funeral Society was launched in 1997 and is funded in part by Hollard Insurance Company (30%), with 70% of the shareholding in the hands of High Five Investments. Best commits 10% of its profits to community re-investment.
It is a nationwide, discounted funeral service that provides cost-effective funeral cover, undertaking and funeral services, transport, livestock and flowers.
* Law firms Werksmans and Webber Wentzel Bowens offer candidate attorneys to provide tenants and participants with free legal advice.
* Accounting firm Ernst & Young provides the services of its accountants and consultants on request from The Business Place’s clients to help with a range of accounting issues entrepreneurs may face.
* The Investec Training Room is available for training courses and workshops, seating up to 80 people.
* The Networking Centre provides opportunities for tenants and participating entrepreneurs to interact. It gives out business publications and national information about small business. Investec is developing a computerised database and information resource.
* Sizaba Cleaning Services. These contract cleaners maintain the buildings, its offices and exhibitions.
For further information on The Business Place contact Lisa Kropman at (011) 286 7438 or Natalie Doctor at (011) 286 7255