Corporates play a pivotal role in developing SMMEs and growing South Africa’s economy

[RochellevanR]

Small, Micro and Medium Enterprises (SMMEs) are a critical element of the South African economy. The ongoing COVID-19 crisis and the subsequent lockdown has only highlighted the importance of these smaller businesses for the prosperity of our country. Not only do SMMEs provide numerous job opportunities, which is essential in lessening our rampant unemployment rates, they are also poised to deliver a significant contribution to our GDP.

 Smaller businesses aren’t just crucial to South Africa either. In fact, according to a report titled Enabling Environment for Sustainable Enterprises in South Africa (EESE Report 2016), commissioned by the ILO on behalf of Business Unity South Africa (BUSA), “globally, over 95% of enterprises are classified as SMEs and account for 60-70% of the working population.”

 The National Development Plan also highlights the importance of the smaller business to the South African economy, with a vision that by 2030 SMMEs will contribute as much as 90% of 11 million new jobs in the country. The NDP expects that SMMEs will contribute between 60 and 80% of Gross Domestic Product (GDP) increase by 2030.

 With so many smaller businesses closed due to the lockdown, the number of people whose livelihood depends on SMMEs is painfully clear. However, as the saying goes, every cloud has a silver lining. The COVID-19 crisis has also highlighted the importance of technology in helping businesses to thrive today.

 Helping ICT SMMEs grow and prosper

In a digitally-driven world, technology is essential. This has never been truer than in our current exceptionally challenging environment, where technology is the only way most businesses can continue to operate. SMMEs in the ICT space are already essential and will only have a more significant role to play in the future. It is up to Original Equipment Manufacturers (OEMs), vendors and large corporates to help them achieve results.

One way we can do this is to make online training part of the Enterprise and Supplier Development Program so that SMME partners can continue to complete training and certifications to enhance their skills base. Continuous upskilling enables SMMEs to become business partners, participate in channel partner programs and grow their turnover. Another area of focus is on mentorship of a smaller business, both from a human resources and apersonal capacity.

 It is important to work with SMMEs as individual organisations – there is no blanket approach that will be most effective for every enterprise. This is especially true in the ICT sector since there are so many different areas of focus and different core functions. Understanding these core functions and working with them to support their growth strategy is vital to success.

Aside from certifications and technical training, other areas that can be beneficial include business and other soft skills, including how to respond to tenders, project management and sales skills. Other ways of helping SMMEs include funding for projects, buying equipment, assisting with office space, and offering grants for different needs to help SMMEs achieve their growth objectives.

 Pebbles in a pond

Education is the key to helping SMMEs to grow. Teaching new skills has a ripple effect that can make a big difference in a far wider community than we could ever imagine. It is like throwing a pebble in a pond – the initial splash is not the only impact, and the ripples that spread out from it can be incredibly far-reaching.

 By impacting a small organisation, upskilling them and helping them to grow, we can empower them, in turn, to uplift their communities and pass their knowledge and skills on. This helps to generate employment and alleviate poverty and is the key toward creating a sustainable improvement to our future and our economy.