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    E.Cape woman turns self-taught cotton crafts into business 

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    Tumi Letshaba co-founder of Next Curve Creation at the SEAMLESS summit.

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    Concerns over how IDC plans to channel money to SMMEs

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    Organisations unhappy with small business bill

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    Some changes to employment laws hurt SMME development: study

    Journo starts catering business

    Journo starts catering business

    Additional funding available for some small businesses

    Biggest concerns for South African SMMEs

    Small gin brewer already on retailer’s shelves

    E.Cape woman turns self-taught cotton crafts into business 

    E.Cape woman turns self-taught cotton crafts into business 

    Atteridgeville couple make homes and businesses clean

    Mother turns her passion for baking into a business

    Platform makes investing in property easier

    Platform makes investing in property easier

  • Agriculture
    No changes for black SMMEs on export permits

    No changes for black SMMEs on export permits

    Fishing co-ops can now legally catch fish

    Unemployed graduate turns to poultry business to make a living

    Business feeling the impact of egg shortage

    Access to land & infrastructure critical for most small businesses

    Clothing brand growing piece by piece

    Chicken farmers get help from metro

    Poultry farmer equips others to become a success

    Poultry farmer equips others to become a success

    Tips for starting your business

    Study punts new approach to support young farmers

    Piggery owner urges youngsters to become farmers

    Piggery owner urges youngsters to become farmers

  • Innovation
    From passion to business: Luna Jewellery’s success story

    From passion to business: Luna Jewellery’s success story

    E.Cape mag strives to bring national recognition for local talent

    E.Cape mag strives to bring national recognition for local talent

    Tumi Letshaba co-founder of Next Curve Creation at the SEAMLESS summit.

    Tumi Letshaba co-founder of Next Curve Creation at the SEAMLESS summit.

    Child safety company aims to protect children from kidnappings

    Child safety company aims to protect children from kidnappings

    SMEs are critical for localisation

    CHIETA to launch third tech centre

    Gallery owner creates space for black artists

    Gallery owner creates space for black artists

    Artists can use digitisation to brand themselves as a business

    Maholla app aims to reward consumers for shopping

    Gym owner aims to ensure community stays healthy

    Business incubators help SMMEs succeed

    3D generator will help curb energy crisis, says inventor

    3D generator will help curb energy crisis, says inventor

    Ndabeni-Abrahams unveils plans for SMMEs

    Digital skills academy helps unemployed youth

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    Absa to offer unsecured loans to smaller enterprises

    Absa to offer unsecured loans to smaller enterprises

    Slow growth for co-op banks despite being needed

    Slow growth for co-op banks despite being needed

    Government and banks need to get serious about SMEs: economist

    Government and banks need to get serious about SMEs: economist

    Concerns over how IDC plans to channel money to SMMEs

    Concerns over how IDC plans to channel money to SMMEs

    Financing remains an issue for women entrepreneurs

    Financing remains an issue for women entrepreneurs

    IDC plans to bolster financial support for SMEs

    IDC plans to bolster financial support for SMEs

    Tips for starting your business

    Green energy companies need more support: coalition

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    Sefa to investigate money paid to ghost beneficiaries

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    MPs hear shocking allegations of Sefa dodgy deals

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    Bosses need to understand employees’ realities

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    Guest house owner encourages residents to tour locally

    Guest house owner encourages residents to tour locally

    SMMEs must be compliant to access opportunities

    SMMEs must be compliant to access opportunities

    DTIC relaunches programme to boost localisation

    Home baker turns to vegan treats during Covid-19

    Tladi Farm thrives on community support

    Tourism businesses are positive despite challenges, report shows

    Tourism business owner calls on government to pull up its socks

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Entrepreneurs must learn from one another to thrive

May 5, 2022
in Business
Reading Time: 4 mins read
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Entrepreneurship has become a buzzword in South Africa and is often punted as one of the ways to help kickstart the sluggish economy. It makes sense for people to start their own businesses as not only are they empowering themselves and building their own livelihoods, but even the smallest of businesses contribute to national development.

Research and statistics from across the world show that SMMEs tend to be the biggest job creators, far outstripping the corporate and large established businesses that used to drive innovation and economic growth during the 20th century. The picture is no different in South Africa, where the established mining and industrial behemoths that built the country’s 20th-century economic growth story are today known for restructuring, downsizing, job cuts and even investment offshoring.

South Africa’s future, like that of most developing economies, is in growing and nurturing start-ups, smaller businesses, and even individual survivalist entrepreneurs. But in South Africa, entrepreneurs face a myriad of challenges to start a business and keep it running. These especially centre on access to financial support and skills development, among others. According to ongoing research by the Heavy Chef Foundation, which is a learning platform for entrepreneurs and is designing a programme for disconnected entrepreneurs, engagement and learning from other business people is the best way to develop.

The foundation researches the enablers and barriers to entrepreneur development, surveying the operational environment for and listening to entrepreneurs on the ground, especially “disconnected” segments of entrepreneurs. Heavy Chef describes “disconnected entrepreneurs” as those that start and sustain their enterprises in marginalised communities with limited access to the financing, training, information, and collaboration networks that encourage growth and risk-taking.

“Engagement needs to prioritise community-led learning by applying a participatory pedagogy between peers,” says the foundation’s CEO, Louis Janse van Rensburg. “… entrepreneur learning cannot happen in isolation. Entrepreneurs, especially those in disconnected communities, require support and resources of all types – things that help create an environment that enables better and more focused learning but also rewards learning itself.”

He cites examples from conversations the foundation has had with entrepreneurs in Khayelitsha, Cape Town, and other marginalised communities, on what they need to sustain their businesses. “One needed money to pay accreditation fees that will allow him to operate with credentials. A few in the health and fitness sector were specific about the type of gym equipment they need in order to serve more customers more regularly. Another was battling anxiety and would value ways of helping her stay focused on work,” he says.

A more in-depth analysis of the foundation’s research on enablers and barriers to entrepreneurship development offers several insights on what support is needed. Entrepreneurs have a long list of types of support they value, with money being the most prominent, followed by networking, skills, equipment and workspaces. The need for entrepreneurs to apply for financial and/or skills support is on the increase, and they have a discernible willingness to apply for financial support, especially with formal financial institutions.

Also, entrepreneurs are increasingly looking beyond government and formal education institutions when applying for skills support. However, there is a high level of ambiguity about the reasons why entrepreneurs do not qualify for financing or skills support, including not receiving a response, incomplete documentation, or not matching the criteria.

Many of the respondents say they will not apply for support again because of a lack of belief that they will qualify. “To oversimplify a bit, we have a classic lost-in-translation issue on our hands. The entrepreneur community and institutions of support are all in it together, unfortunately building a metaphorical Tower of Babel. Each righteous in their conviction that the other is the source of misunderstanding,” says Janse van Rensburg.

He believes that the entrepreneur community has a very high level of skepticism towards institutions offering support. They see promises of support being made but actual support being provided is shockingly thin in supply.

“Surely there are easy wins to cross the divide. Where’s the canary in the coal mine? Small examples of doing things right i.e. high hit rate of successful applications? Let’s look at those. Extrapolate the ingredients and share the recipes, so to speak.”

Ironically, this view echoes the opinion recently shared by Small Business Development Minister Stella Ndabeni-Abrahams, who warned of a disconnect between the government’s genuine desire and attempts to help entrepreneurs, and the reality that many of them cannot access this support, sometimes because of simple hurdles such as not understanding the requirements and the language utilised in application forms.

Tags: Heavy Chef FoundationLouis Janse van RensburgSluggish economy
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