Creating shared value: One organisation’s impact on the ground

ADurban-based company, the Empowerment Group, develops technology and provides support to SMMES in the funeral sector. By providing an online platform to support SMME businesses in the sector, it creates shared value in communities throughout South Africa.

This empowerment platform plays an important role in linking key development stakeholders such as government, the private sector, development agencies and the NGO sector. The goal is to boost emerging, independently owned businesses so they remain independent but are part of a bigger story.

In their start-up kit, funeral businesses receive a business pack consisting of a computer, a TV screen and an internet connection. They also receive business support services and mentorship for a year, after which they will be compliant and sustainable.

Case study: Formalising the funeral sector

The objective is to transform the funeral sector into a commercially sustainable and viable entity.

The group’s goal is to give South African SMME funeral businesses access to affordable, reputable business development products and services. This enables the business to become compliant with the various pieces of legislation that govern the sector, including tax compliance and being registered as financial service providers (FSPS). The long-term vision is compliance, sustainability and growth.

The sector is large, with many informal funeral businesses operating in cities, towns and rural areas. Most (90%) of the 10 000 to 15 000 businesses are black-owned and a whopping 70% are still informal.

Many funeral businesses are willing to formalise but are hampered by a lack of funds to pay for support such as business consulting services, training, and hardware and software, among others. And without structured systems and support, it is almost impossible for informal businesses to secure loans. Most lending institutions do not have specialised knowledge of the funeral sector and are reluctant to lend money to businesses operating in the space.

The Empowerment Group works with strategic partners that understand and specialise in the funeral sector to take emerging SMMES through the costly and complicated process of becoming commercially sustainable.