Free State Business 2018 edition

FOCUS
Preparing for success
in business
Enterprise and supplier development.
A
busy and complex mining operation such as Voorspoed needs
a range of suppliers. Whether it involves transporting workers to
and from work, catering or maintenance, there is a great deal of
work to be done that goes beyond the core business of diamond mining.
This presents an opportunity to support and develop the local
economy where the mine operates. But simply making a decision to
use local suppliers is not enough, because the skills needed to do the
work (or run a business efficiently and profitably) may not be there.
This is where an enterprise and supplier development programme
becomes a key element in the plan to support local entrepreneurs
and service providers.
Incubation
The Voorspoed Mine Enterprise and Supplier Development Manager
is Theodor Moeti. He explains the underlying concept as incubation.
“This is where we equip people with business management skills.”
The incubation programme aims to create independent businesses
that are able to go beyond a craftsman using their skills or someone
having a product to sell in a once-off transaction, to becoming thriving
businesses that will last and grow. “All applications were from Fezile Dabi
district and then a shortlist was compiled from those applicants. This
ensures that the successful candidate is also local.”
Other business ideas that have been raised in the Incubation Programme
include agri-processing, bio-diesel manufacturing, compost manufacturing,
landscaping and waste recycling. The key, as Moeti stresses, is
that they should be “stand-alone businesses”, independent of the mine
and mine contracts.
Supplier devopment programme
The company that supplies the specialist training for business management
skills is TrioPlus Development. Eight local companies have
been identified to learn more about business skills such as financial
management, pricing and costing, human resources, marketing, operational
management and entrepreneurial awareness. Also included
are the key skills of management
and leadership.
Moeti notes that the appointed
service provider is responsible for
mentorship. “We appointed TrioPlus
Development to ensure that the
businesses succeed, and they
become sustainable in the long run.
During this mentorship the service
provider addresses and develops and
trains the business owner.”
Important objectives are to make
sure that they render a quality service
to the mine, and that the business
remains sustainable even after the
life of mine.
Not all training is outsourced.
Says Moeti, “Say for instance if we see
that a contractor is taking too long
to replace a bolt, we then get one
of our engineers internally, a mine
employee, to come and train on site.
In this way we also give support.”
A shining star
In 2016 four people wanted to
apply for the plant cleaning and
maintenance contract but they
were not registered as a business.
The Voorspoed enterprise
and supplier development unit
assisted them with business registration
and with an application
to get the capital to buy equipment.
A significant discount was
negotiated on the machinery
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