Entrepreneurs can create more jobs and contribute even further to the country's economic growth.
Internationally, 75% of startups consider partnerships with corporates critically important to their success, with a further 63% anticipating that these relationships will gain even greater importance in the future.
In South Africa, however, corporates’ support for entrepreneurs is lacking and must be urgently remedied by the country’s businesses.
With this in mind, Jonathan Spencer, Brand and Campaign Manager at OneDayOnly.co.za stresses the vital role that corporate entities must play.
“Supporting entrepreneurs should go beyond ticking boxes, the real objective should be to make a positive impact on these businesses and a meaningful difference in the lives of the individuals behind them.”
“Established companies have a moral responsibility to assist those striving to build a future for themselves,” he said.
“By doing so, they can ignite a ripple effect that extends far beyond individual businesses, spurring job creation and fuelling economic growth. Currently, micro, small and medium enterprises employ 50% to 60% of South Africa’s workforce and contribute around 34% to the country’s GDP. One can only imagine the impact that could be made if these entrepreneurs received the help they need to flourish.”
Spencer points out that this doesn’t necessarily have to mean a financial investment.
“Sharing resources, lending expertise, providing exposure, and leveraging networks can be equally valuable. And this is not a one-sided partnership. Corporates that work with entrepreneurs gain access to fresh ideas and innovative products that can boost their revenue and provide a competitive edge.”
Thabo Serame, an entrepreneur with aspirations of reaching Jeff Bezos’ level of success, encountered numerous hurdles while establishing his business, Sleep Monk, such as lack of consumer trust.
“Having started my business during the pandemic, just as the e-commerce boom was beginning, people were still sceptical about shopping online and weren’t as comfortable as they are now about buying furniture from these platforms. We needed the backing of a well-known brand like OneDayOnly.co.za to help build that trust. Additionally, leveraging their extensive social media reach and customer database gave us the exposure we desperately needed, helping us to significantly expand our market.”
He also had to contend with logistical challenges.
“Operating solely online, we received orders from across the country but struggled to deliver them due to limited resources. Working with an established e-commerce site alleviated this burden via its vast courier network, which improved our nationwide delivery process.”
“Thabo exemplifies the resilience of South Africa's entrepreneurs,” Spencer said.
“Despite facing numerous hurdles, he has managed to build a successful business. However, his journey highlights the broader challenges faced by many entrepreneurs which underscore the importance of a supportive and collaborative business environment. His story is just one example of how corporate partnerships can turn potential into progress.”
Spencer emphasises that whether corporates empower entrepreneurs through mentorship, invest in their growth with funding, collaborate on supply chain initiatives, or advocate for favourable policies, they can catalyse entrepreneurial growth.
This can create new opportunities both for themselves and the business owners they support. In turn, these entrepreneurs can create more jobs and contribute even further to the country's economic growth.”
“South Africa’s future rests in the hands of its entrepreneurs. But for this potential to be fully realised, corporates must step up. The time for action is now,” he concludes.
BUSINESS REPORT