As large enterprises have restructured and downsized, small, medium and micro enterprises (SMMEs) have come to play an increasingly important role in South Africa’s economy and development.
SMMEs have received significant attention and investment, ranging from the establishment of state-initiated projects to supportive legislation, a variety of funding institutions and government incentives through the Department of Trade and Industry (DTI). The National Small Business Act, passed in 1996, helped to establish many of the supportive structures that are now in place.
Social sustainability There is a dire need for South African SMMEs to implement innovative programmes to provide access to basic services and to improve the quality of existing services. SMMEs should promote and encourage economic, social and educational development within their enterprises, while also giving active support to local initiatives. They should also actively stimulate regional employment to help support the economic regeneration of the country.
For example, in lieu of giving end-of-year gifts to reseller partners, a local leading IT infrastructure distributor, Axiz, together with Eaton Power UPS Systems (formerly known as MGE), recently distributed 83 bicycles to the St Joseph’s Care and Support Trust in Onverwacht through the non-profit organisation, Quebeka. Since school attendance tends to decline in low-income areas, the bicycles assist orphans and vulnerable children to journey to school (which often takes an hour one way), attend feeding schemes and participate in after-school activities.
In line with Qhubeka’s philosophy of “hand ups” as opposed to “hand outs”, the children at St Joseph’s have to earn their bicycles by weeding a community garden in Onverwacht every month, help plant seeds and water the seedlings. They also have to take responsibility for their bikes, learn to ride responsibly and understand bike safety rules. Qhubeka does not just hand over the bikes; they keep in close contact with the recipients and receive quarterly reports on the impact that the bikes have made in that community. SMMEs can also play an important role by providing school meals, computer centres, skills development and training in entrepreneurship as part of their philanthropic corporate social responsibility strategy. Many potential entrepreneurs do not get past their intentions or plans because they lack a role model; someone to whom they can relate who has done it themselves. You and your SMME can fulfil this role.
Our Employee Wellbeing Programme (EAP) is available 24 hours a day. If you want to know more about how SMMEs can reach out to the community, call us on the EAP number.
Sources:
Berry, A. & von Blottnitz, M. 2002. The economics of SMMES in South Africa
http://babana.co.za
Kasturi Rangan, V & McNair, M.P. Social enterprise initiative. Harvard Business School
South Africa Business Guidebook. 2002/2003
www.smeworld.org