JSE-listed Barloworld launched the Barloworld Siyakhula Incubation Hub at its Barlow Park head office, in Sandton, Johannesburg, earlier this month to assist small business suppliers and companies operating in its value chain in dealing with challenges, including market access, finance and skills that commonly impact on small, medium-sized and microenterprises (SMMEs).

Barloworld has partnered with the Department of Trade and Industry (DTI) and financial services provider Standard Bank to provide financial support, as well as enterprise development, skills transfer, supplier development and marketing opportunities for its small business suppliers.

The hub will support its existing black-owned SMMEs while providing support for eligible SMMEs within its larger value chain. Barloworld has provided support for 42 companies and aims to increase the number of incubatees to 120 by 2022.

Barloworld Siyakhula MD Matthew Govender highlighted during the launch that there was a need for partnerships to grow the economy and address South Africa’s triple challenge of poverty, inequality and unemployment.

Gauteng Premier David Makhura pointed out at the launch that these incubation hubs were important for the development of SMMEs, as they enabled start-ups to receive advice from companies that had faced the same challenges, providing new companies with “a great deal of confidence” to succeed in their own endeavours.

He asserted that the transformation objectives of the country would be greatly advanced in the next two years if ten large corporate entities in South Africa were to replicate Barloworld’s incubation hub.

“We are aware of the challenges facing SMMEs; some of these include systemic barriers to market entry, greater competition in the marketplace and a slow macroeconomic environment, but the biggest challenge is access to finance. “With these partners, we are helping entrepreneurs gain access to markets and secure funding – all elements crucial to their success,” Govender said.

DTI special economic zones and economic transformation COO Irish Bologo highlighted the importance of the SMME sector, noting that they create the greatest number of employment opportunities, thereby assisting South Africa in its battle against the triple-threat challenge.

She asserted that large and small businesses benefited from one another, as they “do not operate in a vacuum” and it was important for government policies to reflect this symbiotic relationship. “The [DTI] supports these initiatives mostly because we know that big business and small businesses depend on each other for innovation, supply needs and technical mentorship.”

Apart from enterprise development, Barloworld is also prioritising supplier development and localisation to fuel economic growth, in line with the key priorities of government’s National Development Plan.

“We are excited to be in a position where we can invest in the incubation of entrepreneurs to help drive economic activity and [level] the economic playing field by creating opportunities for women and black-owned companies,” concluded Govender.

To date, Barloworld Siyakhula’s incubation hub has assisted its incubatees in creating about 670 jobs.