TheHopeFactory

Developing local South African businesses as suppliers is something that we should all be encouraging, not only because of our high unemployment levels, but also for socio-economic reasons. Business success rates in South Africa are not good; in fact they are quite poor. “One in 10 businesses survives in the first three years, while 80% of entrepreneurs are struggling with their financials and many are not tax compliant,” says The Hope Factory’s CEO, Annie McWalter. Supplier Development is therefore actually a positive step in the right direction for transformation, and also for supporting and growing SMMEs. In order to change this status, small businesses need help from bigger corporates to keep afloat and succeed.  Mosa Dikoba, owner of Citrus Green Solutions, a black-owned small business in operation for two years, says that “through our corporate contracts we have grown to the extent that we can now compete against other established cleaning companies on a competitive level”. His business grew from employing two people at the start of 2014, to 20 at the end of 2015 due to gaining new corporate clients on a monthly basis. Supplier Development (effective from 1st of May 2015, through the Amended B-BBEE Codes) is all about corporates working with their suppliers to promote success for both parties. Big businesses can do more to support the financial aspects and operations of SMMEs and also need to help smaller businesses to overcome their many challenges. “The sky is the limit if we receive continued support from corporate companies through Supplier Development” says Kruven Kerspay, owner of a Renew My Car Franchise. Kruven has recently signed a contract to service Coastlands Sales’ Fleet through Supplier Development. Investors could either support existing black suppliers within their company supply chain or introduce new black suppliers. Both options require the investor to develop a supplier development strategy and acquire the assistance of a business …