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Ithala intensifies business support programs under crunching economy

While looming interest rate hikes, a weakening rand and the prolonged drought dominate newspaper headlines, Ithala is intensifying its business support programs to help small business owners remain financially afloat and relevant.

South Africa needs over 49,000 scalable Small and Medium Enterprises (SMEs), growing at a rate of 20% per annum, to create 11 million jobs by 2030 to meet the National Development Plan (NDP) target.

The figures, as revealed by the Endeavor jobs calculator, points to the urgent need for interventions that will stimulate job creation and keep the wheels of the South African economy turning.

“Siyasebenza” which means “We are working” is a business development program by Ithala aimed to uplift, empower and guide aspiring entrepreneurs throughout KZN in their journey to becoming successful entrepreneurs. The program reached 1400 people through ten workshops and private consultations held throughout KwaZulu-Natal.

In the 2014/15 financial year, Ithala delivered hope by advancing R277m towards the financing of businesses enterprises. This created 886 permanent jobs. The organisation also funded 114 entrepreneurs and provided capital for 25 hectares of agricultural land.

“Even in a stressed economy, SMME’s need to be ready for growth once recovery is underway. The difficulties facing business owners and the uncertainties they experience about the future are challenges they don’t have to deal with alone,” said Mano Muthusamy, Acting Business Finance Executive at Ithala Development Finance Corporation.

“Siyasebenza is a pillar of support for businesses in different life stages and is committed to making a developmental impact where it matters most – in marginalised communities.”

He said Ithala’s catalytic role in nurturing the entrepreneurial spirit of SMME’s and co-operatives and promoting enterprise development was well known long before other institutions even coined the phrase.

Citing the major challenges experienced by entrepreneurs in KZN at present Andile Khumalo, Chief Investment Officer of MSG Group and guest speaker at one of the Siyesebenza events said: “Access to pre-investment support where funding is concerned; the lack of decisive and sustained enterprise development programs and initiatives to absorb the full demand with increased reliance on public sector business limiting innovation and growth prospects and serious challenges around access to markets.

He said three major business opportunities existed for entrepreneurs in 2016: Taking advantage of the state’s Black Industrialists Programme; taking advantage in expert markets with the weaker rand that is likely to remain weak for most of the year and taking advantage of tourism opportunities as South Africa becomes cheaper for leisure travellers from Europe and the East
“The challenges faced by women in small business whom we met through our Imbokodo program were very similar to those identified through Siyasebenza”, said Sitandiwe Dimba, Ithala’s CSI Co-ordinator.

“We rolled out Imbokodo 2015, interacting with 1041 rural businesswomen in KwaZulu-Natal in order to establish their needs. Key challenges included access to markets, finance, business support, marketing and sales.

With this in mind, we are going back to them during 2016, in collaboration with partners who share the same vision, to offer Business Clinics, Market Days and mentorship opportunities. The Imbokodo Business Clinics will comprise one on one interaction with SEDA, SARS, CIPC, local chambers and municipalities. Through the market days, we want to put women entrepreneurs into the market. Overall, we would really like to see tangible results and success stories emanating from this programme”.

11 Nov 2015 15:42

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