Empowering entrepreneurs and small businesses to drive their economic growth – Cape Business News

Entrepreneurship and SMMEs serve as the powerhouse of societal development and progress, driving innovation and economic growth. By creating products and services that capitalise on new opportunities and address societal challenges, these critical businesses stimulate job creation,productivity,and more sustainable communities.And in a reeling economythat isslowly recovering from an ongoing pandemic, the promotion and empowerment of entrepreneurs and small businessesisimperative.

Yet, research shows that South Africansare notas entrepreneurial as the rest of Africa. According totheGlobal Entrepreneurship Monitor South Africa (GEM SA) 2019/2020 report,South Africasentrepreneurial ecosystem was rated as one of the most challenging in 2019, ranking 49thout of 54 global economies, ahead of onlyCroatia, Guatemala, Paraguay, Puerto Rico,and Iran.The report also found that only 11.9% of local respondents (or one in every eight South Africans) have entrepreneurial intentionsof starting a business within the next three years a stark contrast to the average of 40%on the rest of the continent.

This figure is the most concerning.The fact that start-upsand SMMEsfailis notunusualnew businesses by theirvery natureareprone to failureanywhere in the world. But not enough South Africans are starting businesses in the first place and this mentalityneeds to change.

An entrepreneurial mindset and culture shift starts with business education, skillsdevelopment,and mentorship. Private-sector support through Enterprise and Supplier Development (ESD) initiatives play a huge role in cultivating and fostering entrepreneurs.Let uslook at how we can encourage more entrepreneurship in our country and empower existing small businesses to drive their economic growth.

Business education for an entrepreneurial spirit

Education both at a school and business level is the building block for empoweredand successfulentrepreneurs. First and foremost, we need to be teaching entrepreneurial skills from a young age, educating our children onwhat isinvolved in starting a business with entrepreneurial-based courses at school.Parents and teachers have a responsibility here instead of asking children, what do you want to be when you grow up?, we should be asking them, what kind of business are you going to start?. We have been ingrained tobelieve that being an employee is our only option when we matriculate.It isup to us to show the youth that they are in full control of their destinies and the possibilities are endless.

At a business level, education is even more important. Exxaro and GIBS recognise theimmeasurablevalue ofeducating local entrepreneurs our partnership on the newly launched Contractor Development Programmeisatestament to this.To promote and support the advancement and empowerment of local Exxaro suppliers, the programme upskills entrepreneurs by providing business education and mentorship.Ultimately, if the small businesses grow and sustain themselves, they have massive potential tocontribute positively to economic growth and reduce unemployment,poverty,and inequality.

Theaimof thisprogrammeis to help participating contractorsto learn from other entrepreneurs experiences, rather than learning throughtrialand error giving these entrepreneurs a better understanding of how to overcome the operational challenges they face.Learning from others is the most powerful way you can learn, so interaction between the different suppliers via online classes isalsoencouraged.

Skills developmentfor success

Coupled with continued learning, entrepreneurs also need to hone their business and technical skills. But this is easier said than done, as theyhavealmost no time,energy,or money to spend on themselves when they are developing a business. However, neglecting personal development comes at a great cost: makingexpensivemistakes and not keeping up with competitors. A course like Exxaros Contractor Development Programmeis anidealway to acquire those skills without wasting resources like time and money,makingmistakes.

Equipping entrepreneurs with the right skills at the right time, the programme understands that small business owners need different skills at different stages of their development and ensures that skills are aligned to whatentrepreneursexperience. From business skills to strategy, marketing, finance, personal development,and industry-specific skills, the programme helps local suppliers develop the skills,attitudes,and values they need to make their businesses more competitive and respond to challenges.

Non-negotiables for entrepreneurial success include a hunger to learn every single day, building and nurturing strong stakeholder relationships, being action-orientated, andbeingable to pick yourself up after failuretokeep moving.An open mind is another must-have for entrepreneurs to thrive the world is constantly changing, and they need to be open to learning,changing,and pivoting, even if this means transforming their business or product to adapt accordingly.

The power of learning from others

Active mentorship is another key aspect of the programme, with contractors assigned to individual mentors based on their unique needs and skill requirements. A lot of effort has gone into making sure that the mentors and facilitators have practical entrepreneurial experience and industry knowledge they can pass onto the participants.

Thesementors,who have started their own businesses,canguide participants, exposing them to new ways of thinking and helping them to tap into new skills offering further value fortheseentrepreneurs.

The knock-on effects of corporate support

Unlike otherESDinitiatives that are often limited to financial support, we believe that non-financial support, in the form of business education, skills development,and mentorship, is a crucial component of grooming entrepreneurs for success.Large corporates and industry leaders shouldconsider combining both kinds of support in theirESDprogrammes to truly make a difference.

The benefits of impactful ESDprojectsextend far beyond organisations trying to be good corporate citizensand complying with legislation. They afford entrepreneurs amazing opportunities to develop their businesses and hone their skills. Empowered,knowledgeableand skilled entrepreneurs run well-developed companies, whichare easier to do business with. So essentially, those that support entrepreneurs and small businesses are indirectly developing the economy and society, paving the way for a brighter future for all South Africans.

The untapped potential of entrepreneurshipin our country is enormous it istime to boldly embrace themyriad of business opportunities around us and build smaller, more adaptable companies that can move with the changing technological tidesand emerging low carbon world.

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Empowering entrepreneurs and small businesses to drive their economic growth - Cape Business News