Small, medium and micro enterprises (SMMEs) are the economic backbone of our country, accounting for more than 60% of all employment and contributing 40% to the national output.
One of the critical factors in stimulating SMME development and entrepreneurship is skills development.
A recent survey indicated that 30% of South Africa’s youths are keen to start a business, mainly because of unemployment. With the right mix of mentorship, capacity building and knowledge transfer, SMMEs can transform Africa and alleviate poverty.
Through British American Tobacco (BAT), South Africa’s partnership with the SMME developing training programmes run by the chamber of commerce and industry in Durban (DCCI) and Roodepoort (Rocci), many aspirant and emerging entrepreneurs have been empowered with the necessary skills, knowledge and exposure to grow their existing businesses or turn their ideas into reality.
These SMME training programmes are run in line with the broad-based black economic empowerment codes of good practice. These include business skills training workshops, mentorships, conferences, exhibitions and networking opportunities. The workshops focus on topics requested by SMMEs.
Some of the most requested topics include drawing up a business plan, cost and pricing, accessing finance, marketing strategy, business and financial management, customer service excellence, imports and exports, project management and computer training skills.
‘Access to financing is only one of the many issues determining the success of SMMEs. It is imperative for business owners who wish to start and grow a viable small or medium enterprise to have basic business skills in addition to practical entrepreneurial skills,” says Ignatia Kunene, DCCI SMME manager. ‘These workshops provide foundation training for emerging businesses and intermediate training for established SMMEs.”
Deogracia Mahopo is an SMME owner who has big plans for her new start-up construction company, Pulaenele Construction, thanks to the skills she has learned through the Rocci programme. ‘It has given me insight into how to start and run my own business and enabled me to get off the starting blocks,” says Mahopo.
In KwaZulu-Natal Agnes Mhlongo has also seen the benefits of the programme on her arts and crafts business, Switched On Trade, which operates in the rural Botha’s Hill area.
From a small-scale business started in 2005 when she sold her products in the surrounding area only, her business has realised significant growth and she now has export deals to Canada and Reunion and provides employment for between 25 and 30 local women. ‘SMME development and activity in South Africa lags behind that of many developing countries,” says Fay Kajee, corporate and regulatory affairs director, BAT South Africa.
‘Many SMMEs fail due to the lack of business knowledge. Through our partnerships with both the DCCI and Rocci, we are helping SMMEs overcome the challenges of building a sustainable entity, thereby enabling them to create employment opportunities, alleviate poverty and grow the economy.”
BAT South Africa’s corporate social responsibility policy focuses on four themes, one of which is empowerment, defined by BAT as providing previously disadvantaged individuals with training, education and opportunities to allow them to help themselves