Small Business Development
Small Business Development programmes
South Africa’s main problems are poverty, inequality and unemployment. Statistics SA confirms that millions of South Africans have no means of dealing with hunger, that the country has an exceedingly high unemployment rate and is amongst the most unequal countries in the world alongside Haiti and Namibia.
The development of small business is seen globally, and especially in developing countries, as a key strategy for economic growth, job generation and poverty reduction. Letsatsi, as an implementation agent is a specialist in small business development that contributes to poverty alleviation and the transformation process in South Africa.
Letsatsi has worked with both the government and private sector to establish small business entities, across business types and of various sizes. Our client base is varied and extensive; for illustrative purposes we include the following:-
- Working with clients such as Mondi and Massmart, we have established and mentored over 500 SMME businesses in the retail, wood products and mining sectors over the last 10 years.
- The Department of Higher Education and Training, Gauteng Enterprise Propeller, and Services SETA have partnered with Letasti to develop over 2, 500 co-operative entities in the last 5 years. Assistance has included registration with CIPIC and submitting funding applications to the DTI cooperative incentive scheme (CIS).
The development of small business is seen globally, and especially in developing countries, as a key strategy for economic growth, job generation and poverty reduction.
We recognise that issues affecting small business development for an individual or within in communities vary and therefore need context specific treatments. For this reason, we advocate an action research strategy for each intervention, which is illustrated in the figure below:
Typically, projects commence with the initial objective: To develop small business enterprises to contribute to the betterment of poverty, inequality and unemployment in South Africa. Implementation of initiatives to achieve this will follow cycles of action over an extended period of time (12-36 months):
Cycle 1: Reconnaissance (fact finding and analyses) about the socio-economic profile of the people involved and generation of an overall plan and decision on first steps. This will be followed by carrying out the plan (particularly the identification of enterprise opportunities and matching persons with ability to execute on these plans), monitoring and evaluation.
Cycle 2: Planned action steps will be amended and implemented to take into account unforeseen changes. This phase will be concerned primarily with getting the identified enterprises into business, sourcing seed capital and executing on first sales.
Cycle 3: Planned action steps will be amended and implemented to take into account unforeseen changes. This phase will primarily focus on consolidation opportunities in the market, governance, administration and planning for sustainability.
This cycle of development is grounded by introducing an appropriate administrative system to facilitate financial records for the small businesses being established. This measurement enables Letsatsi to provide informed support, mentorship and decision making throughout the process to ensure that these entities become functional and are able to create sustainable jobs and income for its members.