Runner-up — Enterprise Development Award: Fetola & Associates — Old Mutual Legends Programme
One of the frustrations of social investment is that one can spend millions without knowing whether it will really have an impact on the lives of recipients.
“Big companies like Old Mutual give out millions of rands, but often find it challenging to quantify the impact,” says Catherine Wijnberg, the director of Fetola & Associates, which works to turn small-scale manufacturers and crafters into viable
businesses.
“In business today every expenditure needs to show a visible, measured impact, including social investment. To be effective one needs to achieve economies of scale and measure results.”
The Legends programme aims to teach people the business of business, she says, using an integrated programme of support and then measuring how the businesses are growing. “The ultimate aim is to help people succeed.”
Ninety-five percent of its beneficiaries are from rural or peri-urban poverty nodes. Participants’ annual sales turnover increased from R690 000 in 2007 to R2.3-million in 2009.
“We sometimes help develop products, but in general we provide the support for products that are already being made,” says Wijnberg. “We offer an integrated solution that goes beyond training and includes, among other things, business support, mentorship, market access and peer-to-peer support.”
Wijnberg designed the Legends programme for the Old Mutual Foundation in response to its need for a bigger and more visible impact in the social and economic upliftment of needy communities. The programme creates opportunities through the development of sustainable craft and cultural-sector businesses.
The Old Mutual Foundation has been the main supporter since the programme began and it is now a flagship in its corporate social investment portfolio. Participants are not dependent on the programme for financial support, but receive practical skills training, enterprise development and ongoing mentor support to improve business success.
Sustainability is measured in terms of sales turnover, profitability and jobs supported. The programme is a virtual incubator for enterprise development in black-owned SMME businesses and community projects in seven provinces.
Though its focus is the crafts industry, its methods are replicable in sectors such as tourism, hospitality and agriculture. Another strength is that it recognises the value of cultural heritage, Wijnberg says.
“Participants may have little formal education, but their hand skills are of immense value. “We bel ieve that there are certain business fundamentals, whether one is selling cars, crafts or cabbages, that create an environment for success and sustainability.”
Judges for the Investing in the Future Awards commended the Legends programme for its innovation, insight and monitoring measures. “It’s a good model and needs time to develop further,” they said.