Targeted and supported supplier development programmes are perhaps one of the most underestimated tools to effect real and sustainable change to the structure of our economy.
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Building real and meaningful relationships between established enterprises and smaller emerging ones has the potential to be a real game changer for the economic landscape. The benefits are numerous:
It is the start of real ‘radical economic transformation’ without the politics and bluster
The dominance of major players in certain economic sectors starts being reduced
It promotes effective and cost-efficient skills transfer
Small businesses start benefiting from industry best practice (often international) As Andile Khumalo points out in his column in Business Times this week:
‘It is clear that a key lever in transforming our economy is going to be the ability and the will by big business to find ways to work with smaller businesses – not because they are nice people trying to do the right thing, but because it makes good business sense to do so’.
Similar impacts can be achieved at a local economy level with a bit of effort and out of the box thinking.
Impact
While his column highlights some of the great strides being made by major conglomerates such as Coca-Cola Beverages SA, one must not be mistaken that such initiatives need be confined to multi- nationals and major corporates.
The Chamber has as one of its key objectives the promotion of linkages between established and emerging businesses in the district. We welcome approaches from local businesses looking to join such initiatives.
Small steps, such as outsourcing part of the company’s logistics and transport functions or sub- contracting parts of one’s value chain (e.g. installation) can have a major impact on the growth of small businesses. And as Mr Khumalo points out in the extract above, the bottom line and not altruism can be the driving factor.
After matriculating, Vijay Naidoo studied Economics in the UK. Upon his return, he joined the family construction business as MD for 10 years.
He subsequently joined his sister in their furniture manufacturing business as director for quality assurance and operations. He was responsible for all quality aspects of their products, and led the project to the business achieving an ISO 9000 quality accreditation. As an export focused business, this was important for our international competitiveness.
Mr Naidoo has an abiding interest in quality management and productivity improvement, particularly in manufacturing.
More recently, he has focused a lot of his time on giving back to the community by way of mentorship of small businesses and sitting on the executive of the South Coast Chamber of Commerce. He also sits on the Board of the Ugu South Coast Development Agency.
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