Township entrepreneurs given boost at insightful business session in Empangeni

Research has shown that 70 to 80% of small businesses fail within their first five years of establishment.

To counter this, township entrepreneurs were given a boost as fellow business owners, financial institutions and government departments converged for a conference at uMfolozi Resorts on Thursday.

The MSME [Micro, Small, and Medium Enterprises] Township Economy Development Conference was hosted by the South African Chamber of Commerce and Industry (SACCI) in partnership with the Zululand Chamber of Commerce and Industry (ZCCI) and Absa.

The symposium aimed to bridge the gap between township entrepreneurs, financial institutions and government, facilitating growth and development through knowledge exchange and networking.

Among the stakeholders that presented were Sars, Companies And Intellectual Property Commission (CIPC), Eskom and the Tax Ombud.

Challenges facing small business owners

Focusing on the survival and support aspects provided to small businesses by Absa’s Enterprise and Supplier Development, Phumelele Buthelezi informed entrepreneurs about their programme that prepares them for securing funding and keeping businesses afloat.

“Challenges to financing MSMEs in South Africa are financial literacy, including limited knowledge of funding options, poor financial management skills, and difficulty preparing business plans and financial statements,” said Buthelezi.

Moreover, limited credit information, a lack of financial records, proof of regular income, and insufficient risk-specific information were challenges preventing access to funding.

“MSMEs face barriers in accessing markets, particularly in securing opportunities in small, medium, and large private and government contracts.”

Success stories shared

Outlining his entrepreneurial journey with the conference attendees, Mbhekiseni Nsele, MD at Mbhekiseni Services, said he secured a lucrative contract from a major international paper company, with financial assistance from Absa.

He emphasised the importance of collaboration and networking to achieve these goals.

“We faced some challenges because we operate in an unpopular industry; managing people’s performance as an emerging entrepreneur is also challenging.

“However, we also do not see black-owned workshops in the townships where we can service the machines we work with. Let’s collaborate as small businesses rather than compete,” Nsele encouraged.

To date, his business has created 23 jobs for individuals from rural areas across the region.

Government’s 2030 goal

Addressing the symposium, Minister of Small Business Development Stella Ndabeni-Abrahams outlined national government’s goal of creating 11 million jobs by 2030.

Of these, she said, nine million are expected to come from small businesses.

She noted obstacles including accessing funds, high crime rates, poor infrastructure and unfair competition from illegal enterprises.

“We are here to support the work done by Absa and SACCI, while also identifying challenges faced by small businesses in the rural and township areas so we can intervene through policy legislation that will create a conducive environment for them to operate,” said Ndabeni-Abrahams.

Pledging its support for the initiative, City of uMhlathuze Mayor Xolani Ngwezi said this reaffirms the city’s belief in public-private partnerships.

“Studies, research and statistics indicate that support for MSMEs paves the way for job creation, stimulates innovation, and contributes to overall economic growth,” he said.

“However, there is still a lot to be done. These businesses, as informal as they may be, play a significant and crucial role in any township economy.”

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