In support of the South African government’s mandate to create more jobs and promote sustainable development, multilevel marketing company Amway’s business model aims to assist government in easing the startup of business and encourage an entrepreneurial mindset in South Africa.

Amway is one of the world’s largest direct- selling businesses, offering individuals an opportunity to earn income by selling products and recruiting others to do the same. Amway parent company Alticor reported global sales of $11.8-billion in 2013.

Founded in 1959, in the US, Amway offers consumer products and business opportunities in more than 100 countries and territories.

“Based on our 2013 entrepreneurship report, people associate entrepreneurship with independence and the freedom to realise their own ideas. Amway encourages self-employment worldwide, which includes public funding and startup loans; entrepreneurship education and the teaching of business skills; support from social networks; and mentoring or support using business networks,” says Amway Europe and Southern Africa corporate affairs VP Michael Meissner.

However, research done in 2013 indicates that the majority of the people say that they do not live in business-friendly societies. Also, more than two thirds of the people say that fear of failure is an obstacle to founding a business.

Meissner adds that independence and income are important drivers of entrepreneurial intent, whereas perceptions of risk represent an obstacle to becoming self-employed.

However, Amway South Africa GM Raj Parshotam notes that the company is convinced that society, as a whole, benefits from entrepreneurial innovation and drive. Therefore, Amway will continue to actively support a culture of entrepreneurship and self-employment in South Africa.

He adds that Amway has been operating in South Africa, Namibia and Botswana since August 1997. The company has more than 75 000 independent Amway business owners, a distribution centre in Johannesburg, fully fledged Amway business centres in Johannesburg and Cape Town, a product selection centre in Pinetown, as well as small shops in Pretoria and Soweto. Amway South Africa is an active member of the Direct Selling Association of South Africa.

With access to business centres across the country, Parshotam points out that Amway supports efforts by policymakers to stimulate entrepreneurship and that the company will continue its support by sharing its expertise and business support activities with policymakers, nongovernment organisations, established entrepreneurs and those who are interested in becoming entrepreneurs.

“Amway’s roadmap to encouraging self-employment includes turning self-employment potential into a real opportunity, promoting new forms of entrepreneurship,” he concludes.