How to do Nelson Mandela Day right?

Take 67 minutes to elevate a small business in South Africa

Each year, on 18 July, companies around South Africa are contemplating how to make a difference and honour Madiba on his birthday. It is a time when we celebrate the spirit of Ubuntu and remember to help others.

The key for me is to look for initiatives that have a long-lasting impact. One of Nelson Mandela’s most famous quotes is: “Education is the most powerful weapon which you can use to change the world.” It is no secret that Nelson Mandela was a change agent, passionate about having equal educational opportunities for everyone in the world. So, let’s follow his example.

SMMEs are the heart and soul of South Africa’s economy. They are the key to unlocking a prosperous future for our country. So, let Mandela Day be the day you start taking the first steps to support our local SMEs. After all, protecting and enabling SMEs is important not least because their survival and recovery is likely to be a guide for the economy.

As an individual, simply support your local neighbourhood shops. As a multinational, consider what an incubation programme could do both for SMMEs around the country and your enterprise.

Research from Mckinsey indicates that SMEs are the lifeblood of South Africa’s economy representing more than 98% of businesses and employing between 50-60% of the country’s workforce. This is expected to significantly increase in the years to come. In achieving its goal of creating 11 million jobs by 2030, the National Development Plan (2011) expects small businesses to contribute 90% of these jobs.

The challenge that faces South African small businesses today is that they have a high percentage of failure at the beginning of their ventures. According to the Department of Trade and Industry, the failure rate of small businesses in South Africa is around 80% (DTI, 2014) and most businesses fail within the first five years of their existence.

The right incubation programme

That’s where incubation programmes come in. Multinationals and larger companies can directly make a difference by reaching out and assisting SMEs with training programmes and tangible support. Unfortunately, however, many SMMEs which have undergone business incubation still face challenges to stay in business a few years after the end of the incubation period.

Sobona recently launched a first-of-its-kind incubation model that connects innovative start-ups with large corporations continuously. Whereas existing incubation programmes tend to be once-off initiatives with targeted masterclasses for young entrepreneurs, Sobona takes the concept one step further.

Most incubation programmes provide young entrepreneurs with a once-off series of masterclasses on fundamental business skills, including business planning, financial planning, business modelling, and investor pitching.

The Sobona incubation model works differently. We work closely with large corporations to discuss what their pain points are when it comes to suppliers and service providers. We identify where the main gaps are and then kickstart incubation opportunities. For us, incubation is a two-way street. The Sobona model allows large corporations to address supplier pain points by giving young entrepreneurs a chance to fill the existing service gaps and bring innovation to the table.

Our incubation programme offers all the ‘business’ masterclasses young start-ups need to become successful, but we also add in one-on-one life coaching sessions and all-important quality control to make sure candidates are ready to deliver impeccable service. After all, it is essential that young entrepreneurs are professionally and mentally ready to turn their ideas into successful ventures.

How can your 67 minutes make a difference?

At Sobona, our door is always open for young entrepreneurs. We assist them with advice, guidance and feedback. As the CEO, CFO or Human Resources organisation, we challenge you to give Sobona a call and see how you can make a life-long difference to a young entrepreneur and your country.

Contact us today to learn more about the possibilities of uplifting start-ups and turning them into future suppliers.