Can corporate procurement help create the next generation of entrepreneurs?

| 0 Comments

DumisaniMkhonza.jpgNearly half of the 10 million students that graduate across Africa each year, are unable to get jobs. One of the only ways to bring down those numbers in a sustainable way is to create an enabling environment for young entrepreneurs to not only start businesses, but to continue to run and maintain them.

As it stands right now, though, many countries are failing to foster this kind of environment. The 2016/2017 Global Entrepreneurship Monitor (GEM) shows that two-thirds of early-stage small and medium-sized suppliers closed their doors predominantly because of problems accessing finance to carry on operating.

How do we change this reality? Dumisani Mkhonza, COO, Head of Solutions, Enterprise & Supply Chain Development (ESD) at Absa, considers where corporate supply chains and the business world fits into the equation, in this month's SmartProcurement.

Join at Smart Procurement World's Smart Supplier Conference, which has grown into a premier entrepreneurship event on the annual South African entrepreneur calendar

Nature vs nurture

The 'nature vs nurture' debate is a well-worn one, covering whether behaviour is genetic or learnt. Proponents from each side are passionate in their beliefs - and this is no less true in the entrepreneurship space when we consider whether the people who create and grow these small and medium-sized enterprises are born or forged by their life experiences.

Writer for Forbes, Freddie Dawson, argued that it is not as simple as that, with most entrepreneurs falling somewhere in the middle of the spectrum. In fact, Dawson cited widespread agreement that entrepreneurs are five percent born with their inventive ideas and personalities, and 95 percent crafted by their situations and life experiences.

This is good news for South Africa and countries across a continent whose growth is largely driven by these pioneers at the helm of small and medium-sized enterprises (SMEs). Research indicates that SMEs comprise 91 percent of formalised businesses in South Africa, providing 60 percent of the labour force with jobs and contributing approximately 34 percent to the country's GDP. In sub-Saharan Africa however, SMEs are even more instrumental in creating jobs, providing 80 percent of people with formal employment.

The need to harness the potential of these growth drivers of development can therefore not be overstated, particularly on a continent with the scale of challenges that Africa faces. Political and economic volatility, widespread unemployment and stagnant growth levels are currently the largest issues hindering African countries from realising entrepreneurship's true potential in eradicating unemployment and inequality.

Corporate buyers and a supply chain development

Financial institutions have partnered with bespoke online procurement portals such as the Supply Chain Network, to link approximately 59 000 SMEs with 7 000 corporate buyers and a supply chain development programme allowing corporate clients support the SMEs in their value chains.

It cannot be up to governments alone to reverse or curb this trend, but requires concerted effort by multiple stakeholders in both the public and private sectors to nurture sustainable SMEs. Not only do we need to incorporate more effective entrepreneurial training and skills development into our schooling system, but we also need to ensure that the country's bigger businesses are playing their parts.

By establishing enterprise and supplier development approaches that minimise the challenges of starting and running a business, as well as by providing them the support they require to become sustainable businesses, corporates can contribute to turning the tide.

Broadly, this could involve corporates actively working to provide ways for small and medium-sized business owners to access and be part of corporate supply chains, as well as setting aside a portion of their procurement spend for these kinds of businesses.

While it is heartening to see widespread advances in corporates making it part of their mandates to support and grow entrepreneurship, we need a concerted push in order to make our country's current and future entrepreneurs a greater force for change. If players from across sectors and industries collaborate, we will soon see entrepreneurship become an enduring engine of growth and economic development.

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

 

Career opportunites

Risk Control Manager

  • <500 000 Gauteng Permanent Procurement Consultant Projects / Category Management
R450 000 - R550 000 per annum.Location: Johannesburg ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Procurement Consultant
Salary: R500 000 - R500 000 per annum.Location: ...More

Fuel Logistics Manager

  • <500 000 Logistics & Warehousing Operations, Planning & Inventory Permanent Western Cape
Salary: R600 000 - R720 000 per annumLocation: ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Projects / Category Management Supply Chain
R650 000 - R700 000 per annum.Location: Johannesburg.A ...More

SENIOR BUYER

  • <500 000 Buyer Gauteng Permanent Supply Chain
R500 000 - R550 000 per annum,Location: Midrand,A ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R600 000 - R700 000 CTC per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Supplier / Business Development Supply Chain
Salary: R600 000 - R700 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Permanent Projects / Category Management
Salary: R450 000 - R550 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R500 000 - R500 000 per annum,Location: ...More

Warehouse and Distribution Manager

  • <500 000 Logistics & Warehousing Permanent Procurement Management
Salary: R650 000.00 - R850 000.00 CTC pa,Location: ...More

National Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Salary: R900 000 - R1 000 000 per ...More

Procurement Specialist

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
Salary: R380 000 - R420 000 per annum,Location: ...More

Supply Chain Analyst Lead

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R1 000 000 - R1 100 000 ...More

CIPS Tutor and Coordinator

  • Gauteng Permanent Projects / Category Management Supply Chain
Commerce Edge South Africa,Division: Commerce Edge Academy,Location: Johannesburg, ...More

Warehouse Manager

  • <500 000 Gauteng Industrial Engineer Logistics & Warehousing Permanent
Salary: R480 000 - R600 000 per annum.Location: ...More

Senior Buyer

  • <500 000 Buyer Gauteng Permanent Procurement Consultant
Salary: R600 000 - R650 000 per annum.Location: ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Salary: R700 000 - R800 000 CTC per ...More

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More