By Feroza Petersen
“Nearly 30 years into democracy, there is still a lack of equal distribution of finance to all, thus preventing small businesses from growing, progressing and prospering”, says Khaya Cishe, founding member and Secretary General of the Black Business Chamber (BBC), in a conversation with Business Report earlier this week.
Cishe also shared how much of South Africa’s legislation, when it comes to business and access to funds, skills and knowledge that can champion small businesses, continues to create barriers to entry in certain markets. He and the BBC are also of the opinion that, “collusive and anti-competitive behaviour by some of the country’s big business players is hampering opportunities for the SMME sector to flourish”.
Some of those barriers include South Africa’s banking fraternity who have made access to finance prohibitive. Transformation in the banking and finance sector, is also way behind.
Beyond lack of ownership in the financial segment, the sector does not support economic participation - it is effectively controlled by a handful of organisations, a closed society, with little to no desire to assist the small to medium and micro enterprise sector get a foot on the ladder. This is a huge mistake.
Given that the African continent’s future will largely depend on the growing and influential Small to Medium and Micro Enterprises (SMME) sector for its economic survival, something must be done about providing SMME’s with support – especially right here on home soil.
Statistics released by the World Bank in 2020 revealed that this sector contributes up to 60% of all employment and as much as 40% of the GDP in emerging economies. What’s more, SMMEs make up around two thirds of Africa’s formally employed workforce. That is set to grow too, as for example, 70% of sub-Saharan Africa is under 30 and with a growing shortage of employment opportunities, youth are setting out to create their own.
The Black Business Chamber, established in 2011, is a platform for the advancement of South African black businesses through economic empowerment initiatives that drive access to markets, funding, and economic opportunities.
Its primary purpose, according to Cishe, is “to lobby government on policy related matters and to play an advocacy role where policies are already in place, to accelerate the participation of black business in the mainstream economy”.
The BBC is mostly active in townships across Cape Town, Johannesburg, the Eastern Cape, and the Free State.
Having assisted more than 300 small businesses across South Africa access funding, networks and knowledge since its inception, the BBC also believe that beyond ensuring the correct framework is in place to support start-ups and small businesses, there is a need for partnerships with bigger more established corporates, who can help pave the way for mentorship, skills transferral and ultimately, beneficial, and profitable trade opportunities.
He cites one such example as the relationship the Chamber has developed with Dr Iqbal Survé and the Sekunjalo Group, which has proven on several levels how co-operative agreements can benefit all concerned.
In 2012, and a critical step forward for the still fledgling Chamber, was the provision of premises from which they could formally operate and legitimise their operations. Through Survé and Sekunjalo’s involvement in the Business Place eKapa, the BBC found a home.
“We found this the perfect place from which to operate but also to increase our membership as there were a lot of small businesses that converged at the Business Place eKapa.”
“Whilst the BBC interacts with many excellent corporates and we are extremely grateful for their support, without sounding sycophantic, Sekunjalo must have a special mention of thanks as it was their belief in us from the start that has afforded us the ability to tackle many of these barriers and help our members overcome setbacks.”
According to Cishe, Sekunjalo has opened many doors for the BBC and its members to attend conferences and meetings among others, “where we were invited by other provinces business forums, embassies, mayors from other provinces and several international events to attend and participate in the dialogue.
“As a result, we have been able to share our learnings and insights and connect our members to other like-minded organisations or partners which has helped them develop.
Dialogue and conversation are essential in understanding the needs of the SMME sector along with the needs of the country, but these events are not always affordable for non-profit organisations like the Chamber to attend, which is again where Dr Survé has been of help.”
One such instance, mentions Cishe was the assistance given to the BBC and its partnership with the UCT Graduate School of Business for a focused event on ‘Black Business Dialogue.’
Others, include construction workshops the BBC rolled out with the Western Cape Provincial government, and an outreach programme with Cape Town Activa an initiative of the Cape Metro Local government.
Over its 11-year history, whilst seeing some of the fruits of their labour, the BBC is still concerned that not enough has been done to achieve true business transformation in South Africa. “Transformation is not about large and established corporations employing the right number of racial candidates to fulfil a scorecard,” commented Cishe.
“True transformation occurs when there is an equal participation in the economy and that can only come if South Africa’s SMME sector is empowered and equipped to be a meaningful contributor to economic growth. As Dr Survé has often reminded us, a win for one is a win for all where everyone benefits because everyone participates.”