Increasing need for big business to consult to entrepreneurs

| 0 Comments

 

ShawnTheunissen.jpgWith economic growth remaining a priority for South Africa, corporate involvement in enterprise development (ED) is proving a critical means of scaling-up SMEs and setting them on a path towards becoming potential private equity candidates, says Shawn Theunissen, head of CSR at Growthpoint Properties and Property Point (Growthpoint Properties’ enterprise development programme), in this month’s SmartProcurement.


As more South Africans consider entrepreneurship as a means to support themselves, the role of big business in enabling SMEs to go to market and actively compete in the economy is becoming imperative. “In order to address the socio-economic challenges our country is facing, the private and public sectors must find tangible means of empowering entrepreneurs with the skills to build sustainable businesses,” says Theunissen.


“This is particularly important in terms of scaling these businesses for long-term growth – and the point at which they will be able to access new funding options such as private equity (PE).”


With PE funding typically requiring an SME to be turning over in excess of R30-million PBT per annum, the starting point for many “next generation” entrepreneurial businesses will be approaching an incubator for assistance.


Although various corporates have already established business incubators within their organisations or invested in ED programmes, Theunissen maintains that the market is still not seeing the benefits of a high number of these interventions, especially with regard to making SMEs both “bankable” and sustainable.


“Because bankability and financial viability are directly related to sustainability, it is critical that incubators partner with SMEs to enable this, and subsequently create a platform for them to become potential PE candidates going forward.”


In considering trends among local PE applicants it is interesting to note that many are well-established family-owned businesses. “As such, you often have at least two generations of staff coming from within the family – having been groomed in terms of investing in the SME from the outset.”


However, this will not necessarily be the case in 10 to 15 years’ time when the current generation of entrepreneurs “graduate” and approach this level of profitability. “Many of these entrepreneurs do not come from family backgrounds where they were exposed to this type of thinking and way of doing business; they often do not have the requisite reference points or experience needed to make their SMEs sustainable in many instances,” says Theunissen.


“In these cases big business has a real opportunity to act as a ‘big brother’ in the true sense of the word, gearing SMEs towards financially responsible thinking and behaviour from the outset.”


This starts with their very first funding application – and understanding that, before this is even submitted, the business must have developed an appropriate business model that can support and make use of the very funding they are trying to access.


“By embracing the opportunity to add real value to SMEs and setting them on a path to one day turn over the likes of R30-million PBT, big business will simultaneously add value to their own supply chains, whilst having a meaningful economic impact,” concludes Theunissen.
 

If you are looking for answers about how to start your journey towards financial viability and make your business more bankable, we invite you to join us for a To The Point session during Global Entrepreneurship Week. Representatives from the four major banks will be present and will deal with exactly this issue. Visit Property Point for more details on how to apply.

Leave a comment


 

 

Career opportunites

Tutor and Coordinator

  • Gauteng Operations, Planning & Inventory Permanent Procurement Management Supplier / Business Development
Purpose of the job: To plan, coach, advise

Commodity Manager

  • <500 000 Commodities Gauteng Procurement Management
Are you a Commodity Manager looking for the

Supply Chain Professional

  • <500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Supply Planning

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer Procurement Consultant
Are you an Industrial Engineer looking to make

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Supply Chain
Seeking vibrant industry specific individuals seeking new opportunities

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for an Operations Manager to take into

Supply Chain Systems Administrator

  • >500 000 Gauteng Procurement Management Strategic Sourcing Supply Chain
One of South Africa's leading, mining companies is

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Procurement Management
Are you an experienced Logistics Manager looking for

Continuous Improvement Manager

  • >500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Warehouse Assistant

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory
I am currently looking for ambitious Demand Planner,

Internal Procurement Officer

  • <500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Position Available: Internal Procurement Officer Status : New ...More

Supply Chain Officer

  • <500 000 Gauteng Procurement Officer / Specialist Supply Chain
Seeking dynamic candidates to take to the market

Supply Chain Planner

  • <500 000 Free State Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Senior Buyer

  • >500 000 Buyer Gauteng Procurement Management
Tech-Pro specialises in placing professionals in the Supply

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer
Tech-Pro specialises in placing professionals in the Supply

Warehouse Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Supply Chain
Seeking hands on individuals that come from an

Manufacturing Purchasing Specialist

  • >500 000 Procurement Officer / Specialist Supply Chain Western Cape
A leading auto manufacture company based in Cape

Procurement Sourcing Specialist

  • <500 000 Gauteng Procurement Consultant Strategic Sourcing
A Leader in the Supply Chain industry is

Planning Manager

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for Planning Managers to take into the