The Era of Entrepreneurship
We spoke to Hlonela Lupuwana-Pemba, managing Director of Zimele on the impact of enterprise development on South Africa’s social and economic fabric
South Africa’s small business sector is improving continuously, and is also receiving increasing support from government. This is demonstrated through the R475 million which has been reprioritised to the Department of Small Business Development for assistance to small and medium enterprises (SMEs) and cooperatives.
Whether it is running a construction business, an agri-processing venture or a shop on the corner, many South Africans - particularly young people - are choosing to start their own businesses in an effort to combat the socio-economic challenges they face.
Enterprise development in the country allows for the growth of businesses that can provide those entering the job market with opportunities, and ensures that the provision of these opportunities are sustainable.
Large corporations are also demonstrating their commitment by strategically aligning their business goals to support the objectives set out in the National Development Plan (NDP), which are to create a cycle of growth and development by removing constraints to investment and job creation in order to eliminate poverty and reduce inequality.
As such, through our enterprise development initiative, Zimele (Zulu and Xhosa for ‘Stand on your own’), we aim to contribute to the SME sector by creating a supportive environment for small businesses to thrive. Zimele was established in 1989, to develop SMEs by empowering entrepreneurs and creating employment opportunities - which help people prosper, and have pride in the way they live their lives. This is achieved by providing developmental funding, training and mentorship support across a broad spectrum of businesses and industries. This is also an essential tool in helping communities to develop and become self-sufficient.
Since 2008, up to the end of 2015, Zimele’s has provided R1.6 billion in funding for 2,202 small businesses that collectively employed over 46,000 people. This further generated a total turnover of R8.1 billion.
Big business plays an important developmental role, especially in tough economic times. Creating a sustainable and independent economy means that large corporations need to also act as mentors for young entrepreneurs, in addition to providing them with financial support. Entrepreneurs should be helped by experienced business people to turn their ideas into sustainable business ventures.
Entrepreneurship and the important role it plays remains a central policy agenda for reducing unemployment and stimulating South Africa’s economic growth. The small business sector continues to transform the economy, and we can all play our part to ensure its continued growth.