Entrepreneurship is not enough says SASOPSBIZ
Entrepreneurship is not enough. Many of the new enterprises that have been set up over the years now need to move to the next level if South Africa is to fully benefit from the Black Industrialist Programme and begin to meaningfully reduce the country’s high unemployment rate, says Pumla Vilakazi, CEO and co-founder of the South African School of Practical Skills Trading (SASOPSBIZ).
Vilakazi, who together with director, Fidzani Nduna, founded SASOPSBIZ in 2017 to develop new and established businesses, believes that it is by helping companies to thrive rather than just survive that meaningful inroads can be made.
“Not only does South Africa have as very high start-up business failure rate, but many of the companies that have worked their way through that critical phase and know the direction in which they want to move just need extra tools and training to scale up and realise their full potential,” she says.
She points out that it is very important for businesses to scale up in order to increase profit margins, improve efficiency and effectiveness as well as to keep up with market demand. “Most start-up companies fail because they failed to maintain sustained growth. Scaling up will give you access to better investment opportunities and thus increase your capital. Employees, investors and founders always want to commit their time and resources to a business that is poised to scale up.”
However, when a company has reached its capacity and is unable to serve clients and customers because of lack of stock, insufficient employees and insufficient time, it is time to completely revise its strategies, she continues.
According to Nduna, a business is ready to move to the next level when more customers/clients are showing interest in their offering, but their capacity to deliver is limited, when they have reached or surpassed their business goals, but lack the resources or skills to move beyond their current limitations.
Both Vilakazi and Nduna say that some of the chief problems encountered by businesses include a lack of on-the-ground business skills, minimal access to finance and credit, poor infrastructure, low levels of research and development, onerous labour laws, high levels of crime and difficulties accessing critical markets.
“A successful business is one that meets all its goals, one of which should always be to increase shareholder value. Successful businesses are concerned with generating sustainable growth rather than short term profits. A successful business has a solid business plan, strong company culture, excellent customer service, an empowered team, sound business processes and systems, scalable and innovative business ideas, is financially sound, has solid business networks and, most importantly, progressive leadership with vision,” says Vilakazi.
Although government does make available considerable resources to assist growing businesses through development programmes as well as through doing business with these businesses, not enough of these enterprises benefit simply because they do not know how to properly access government assistance.
SASOPSBIZ works alongside these government departments who need both a business partner to help to identify benefactors for their programmes and experts to administer the programme.
According to SASOPSBIZ, small and medium scale enterprises constitute the foundation on which any economy rests.
“A country that seeks to have a strong economic base must have a thriving SME sector. In this regard, the South African government is embarking on a number of programmes in order to promote small business development. This is a great fit for an organisation like SASOPSBIZ which regards itself as a hub for small business development,” she adds.
“Government does not struggle to find small businesses to assist. Instead, it is often overwhelmed by the number of small businesses that need assistance. This is the reason why government uses service providers like SASOPSBIZ to boost its capacity to help these businesses,” says Nduna.
The challenge, however, is that many businesses are not capacitated to position themselves for government work. Most of them do not know how to complete tender documents or even lack some of the basic documentation required to complete these documents.
SASOPSBIZ has built a solid reputation for SMME training in financial management, marketing, cooperative development, governance and business management. business advisory services provided to government departments include the creation of business plans, feasibility studies, mentorship and coaching, and training.
The organisation has worked on a number of projects with SEDA, the Department of Transport, the Office of the Premier and Umhlathuze Water. “Our work with institutions like Umgungundlovu Economic Development Agency(UMEDA), German Cooperative and Raiffeisen Confederation (DGRV), Democracy Development Programme (DDP), Programme Preparation Trust(PPT), Genderlinks and Ilitha has indirectly led us to working with a number of municipalities, NYDA, the Department of Economic Development, the Department of Social Development and the Durban University Technology, “says Vilakazi.
One of the major programmes that SASOPSBIZ has implemented in partnership with government is the Sasop Furnlab, a first in the Midlands region. Supported by SEDA and the Department of Small Business Development, it assists carpenters and other furniture manufacturing businesses within the informal economy to access factory facilities as well as training and mentorship during an 18-months development period.
Vilakazi adds that companies that are run by disabled entrepreneurs – one of SASOPSBIZ’s key focus groups – are often overlooked for assistance because organisations find it hard to find them. “That’s why we are focusing on assisting this group to take up these opportunities. We are also assisting young women through a programme called Phakamisa Girls Economic Empowerment to also position themselves for these opportunities.”
She concludes by saying that SASOPSBIZ programmes do not just focus on positioning businesses for government opportunities, but also assist them to compete in the mainstream economy. The ultimate aim is to equip and empower them to grow their businesses to such an extent that they can have brands that can compete equally with established brands in the market.