Metro supporting SMMEs
The Nelson Mandela Bay municipality is focused on developing sustainable SMMEs.
In its commitment to SMME development and growth, the municipality, in partnership with the Small Enterprise Development Agency, established two SMME incubators, construction and ICT incubators, which are both fully operational.
Both incubators provide tailor-made programmes that are aimed at nurturing and growing SMMEs in their respective businesses.
These incubators are mandated to develop and mentor emerging companies through infusion of both technical and business administration to enhance growth and efficiency of their businesses.
The municipality also established three enterprise development centres that are located in the Port Elizabeth CBD, Veeplaas and in Uitenhage. The centres provide business support services to SMMEs across Nelson Mandela Bay.
What is of great concern is that most emerging businesses registered, about 90% of them are in the construction sector.
The municipality is continuously encouraging emerging businesses to look at opportunities in other economic sectors.
The municipality also conducted a health check assessment of these businesses and found out that most were not operational or, in many other instances, owners were working as employees in various institutions.
Out of those that were operational, the health check assessment showed that most of them were not business ready due to either non-compliance in relation to company documents required, lack of business management skills, inexperience on tendering and many more.
The municipality developed tailor-made intervention programmes and solutions based on the shortfalls identified in each business.
These included business compliance, business management, capacity building and mentorship support, and access to work opportunities which includes training on tendering.
Surprisingly when these sessions were organised, few people showed up even though they had confirmed attendance.
Others, when followed up, would later make it clear that they were not interested in training, all they wanted was tenders.
This shows that some people registered companies without any interest or understanding of their operations, but mainly to earn a living.
Some people, due to unem- ployment, opted to try their luck in the business sector and if they were to be employed, they would close down their businesses.
Be that as it may, the municipality continues to support entrepreneurs, but finds it difficult to work with tenderpreneurs as its main aim is to develop sustainable businesses that can operate beyond government tenders.
The incubators have shown success as emerging businesses that are participating in them have grown and created jobs.
In 2015, the construction incubator supported companies which earned a total turnover of R23.7m and created 133 jobs.
In 2016 the turnover earned by companies supported was R89m, creating 219 jobs.
In 2017 the turnover earned was R16m with 124 jobs created.
In total the construction incubator supported companies which managed to earn a combined total of R128m and created 416 jobs.
The most encouraging part is that these companies have grown and they managed to get work through their own efforts, not only from government but also from the private sector.
These companies are operationally independent, which guarantees some element of sustainability going forward.
To support SMMEs in other sectors, the municipality, in partnership with the relevant stakeholders, will strive to establish new incubators such as an auto incubator to ensure full support and success by SMMEs in all economic sectors.
Anele Qaba, executive director, economic development, tourism
& agriculture Nelson Mandela Bay municipality