Small and medium-sized enterprises (SMEs) have been identified as a conduit to stimulate economic growth and help solve the unemployment problems in South Africa and it is crucial that the mindset required to promote the development of these companies is cultivated, says business support company Raizcorp’s Elizabeth Nhliziyo.
Through the Raizcorp-Engen Prosperator programme, in Durban, petrochemicals company Engen and Raizcorp provide business assistance to SMEs in an effort to identify and develop enterprises that will provide much-needed jobs and help alleviate poverty in South Africa’s emerging communities.
“In these trying economic times, start-ups are vital to help drive our local economy forward. They create employment, increase production, expand markets and, most importantly, develop communities, which is important in an era when school leavers are being conditioned to pursue careers at corporates rather than start their own businesses – something that has to change,” she notes.
Engen is aware that SMEs play a significant part in the socioeconomic development of South Africa and, in its pursuit to contribute to SMEs, it found the Raizcorp model to be a sustainable intervention, forming a partnership in 2012 to provide business support to growth- hungry entrepreneurs.
“Being a company that believes in making a difference to the communities that we operate in, we are proud to be associated with Raizcorp,” states Engen transformation manager Unathi Njokweni-Magida.
She adds that, since its partnership with Raizcorp, there has been sustainable progress, which is noticeable in the improved business performance of entrepreneurs and commendable employment figures.
Civil engineering company Abjoy Develop- ment Services CEO Sifiso Masuku, who is one of the entrepreneurs on Raizcorp’s business growth programme sponsored by Engen, says that his business has experienced positive growth since being part of the programme.
“I have five permanent employees and 150 contract employees currently; however, my dream is to eventually employ 2 000 people on a permanent basis. I believe our country’s economy needs more small businesses that will promote sustainable growth for all.”