South African Business 2020 edition

OVERVIEW FOCUS
in Gauteng, the province where
more than half of the country’s
SMMEs are located, increased
in 2017 to R17-billion, up from
just R600-million in 2014. This
expenditure has allowed many
township businesses to enter the
formal economy and for them to
become more sustainable. The City
of Johannesburg runs seven SMME
hubs where office space, Wifi and
advice and training are available for
small business operators.
South African Breweries, a
subsidiary of AB InBev, wants to
use its four entrepreneurship programmes
to create 10 000 jobs by
2022. In 2018, Coca-Cola Beverages
South Africa launched the Mintirho
Foundation, a R400-million fund
to pay for training of farmers and
support business in the agricultural
value chain.
Toyota South Africa Motors is
funding the newly created Toyota
Empowerment Trust (TET) to the
tune of R42-million. The trust will
at first train specialised automation
technicians with the long-term intention
of helping qualified technicians
to start their own maintenance
firms.
An Incubation Centre has
been launched at Nissan’s assembly
plant in Rosslyn, north of
Pretoria. The facility supports small
enterprises through subsidised
rental and mentorship and training.
Management of the centre is
done by the Automotive Industry
Development Centre (AIDC), a subsidiary
of the Gauteng Growth and
Development Agency (GGDA). The
Jobs Fund contributes to financing
the project.
A small business can become
a substantial business quite quickly
with the right support. Programmes such as the Black Umbrellas offer
different levels of support, from early advice about business plans
through office support to mentoring. Civtech Engineers, a Richards
Bay consultancy, has grown its revenue and staffing levels as a result
of being on the full incubation programme.
The National Department of Small Business Development (DSBD) has
several programmes to assist SMMEs and co-operatives. These include:
• The Black Business Supplier Development Programme,
a cost-sharing grant to promote competitiveness
• The Co-operative Incentive Scheme, a 100% grant.
The Small Enterprise Development Agency (Seda) is a subsidiary of
the DSDB. Seda has 42 incubation centres in South Africa under its Seda
Technology Programme (STP).
In a recent publication, Seda reported that the number of SMMEs
in South Africa increased by only 3%, from 2.18-million to 2.25-million
between 2008 and 2015.
The National Department of Trade and Industry and Competition
(the dtic) is trying to stimulate township and rural economies. Various
programmes within the dtic and its agencies contribute to the creation
of SMMEs or to the rescue of ailing SMMEs in tough times.
The Enterprise Investment Programme (EIP) has achieved considerable
success. Having received a grant in 2014, Thorax LP Equipment, a
100% black-women-owned company based in Gauteng, has subsequently
turned over more than R8-million and employed many young
people. A grant to Kalagadi Manganese in the Northern Cape helped to
create 8 857 jobs.
The National Gazelles is a national SMME accelerator jointly funded
by Seda and the DSBD. The aim is to identify and support businesses
with growth potential across priority sectors. Businesses can receive up
to R1-million for training, productivity advice, business skills development
and the purchase of equipment.
The Industrial Development Corporation (IDC) supports SMMEs
either by disbursing loans or by taking minority shares in enterprises
and giving advice. An agricultural project in the Northern Cape is an
example of the kind of work it does. Through the IDC’s Transformation
and Entrepreneurial Scheme, a black economic empowerment project is
underway at Kakamas. The emerging farmers of Vaal Community Citrus
are planting citrus.
ONLINE RESOURCES
Industrial Development Corporation: www.idc.coz.a
National Department of Small Business Development:
www.dsbd.gov.za
National Small Business Chamber: www.nsbc.org.za
Small Enterprise Development Agency: www.seda.co.za
95 SOUTH AFRICAN BUSINESS 2020