|
This
newsletter aims to keep SSACI’s partners informed about what
the Initiative is doing, and why.
It seeks to give sponsors and project implementers a better understanding
of one another’s perspectives.
It highlights issues in the fields of education, training and skills
development that effect SSACI’s work.
“SSACI News” is issued quarterly from the desk of the
Programme Manager:
Tel:
(012) 362-2972
Fax: (012) 362-2971
e-mail: ssaci@sdc.net
|
Facing
the Future with Courage
Young people from Alexandra participate in a self-discovery
exercise
(See article on YEN on page 2)
What
is the State of Entrepreneurship in South Africa?
|
Napoleon
once described Britain as “a nation of shopkeepers”.
He meant it scathingly, but today most countries desire such a reputation
since economists increasingly view entrepreneurship as an indicator
of economic health. How is South Africa doing in this regard?
One measure of the state of entrepreneurship is “enterprise
density” – i.e., the number of entrepreneurs per 100
inhabitants. With about 1,6-million self-employed people out of
a total population of 43 million, South Africa’s overall enterprise
density is 3,7%.. This is on a par with most developed countries
but is somewhat lower than many developing countries, especially
in South East Asia.
A more sophisticated measure of entrepreneurship is that used by
the Global Entrepreneurship Monitor (GEM), which distinguishes between
“start-ups” (businesses that have paid |
wages or salaries for less than three months) and “new firms”
(those that have paid wages or salaries for three months to three
years). In GEM’s 2001 survey, South Africa was ranked 14th
out of 29 countries in terms of total entrepreneurial activity but
only 25th in terms of new firms, the lowest of any of the developing
countries surveyed. The GEM researchers found that fewer than a
third of start-up businesses in South Africa pay wages or salaries
for more than three months, which indicates a very high incidence
of business failure in South Africa.
Each year, 700’000 new businesses are registered in South
Africa., over 70% of them in Gauteng and Western Cape, and 71% of
them in the trade and business services sectors. South Africa’s
formal economy therefore seems increasingly to resemble that of
a developed country. 
|
SSACI
is sponsored by: Alpha; Ciba Speciality Chemicals; Credit Suisse; Givaudan-Roure;
Novartis Pharmaceuticals; Schindler Lifts; Sika Finanz; Swiss Agency for
Development & Cooperation; Swiss Re; UBS; Xstrata.
Focus
on a Project: The Youth Empowerment Network |
“Facing
the Future With Courage” is the name given by the Youth
Empowerment Network’s training programme for youth-at-risk.
It sums up both the aim and the spirit of a project that is currently
receiving funding from SSACI. Established in Alexandra township
in 1998, YEN has progressively developed an experiential training
programme aimed at helping young people to take control of their
own lives and futures.
The need for such a programme is widely recognised. For example,
research conducted in 1996-7 by the Community Agency for Social
Enquiry indicated that, of approximately 11 million South Africans
between the ages of 16 and 30:
-
5% could be categorised as “extremely marginalised”
in society (e.g. presently in prison or involved in criminal
activities)
-
27% were “marginalised” (e.g. presently unemployed,
having little education and little likelihood of acquiring a
job or any other legal source of income)
-
43% were “at risk” of becoming marginalised (e.g.
presently at school but likely to leave school early and therefore
likely to remain unemployed)
-
only 25% were “fine” (a condition defined as being
presently employed or in an education programme likely to be
completed, able to generate an income, able to relate to society
in a healthy manner and having a positive self-image).
The causes
of this grim scenario are not merely economic. One of the more
insidious legacies of apartheid has been a deep-rooted sense of
personal powerlessness that became second nature to many people
who suffered decades of political and social oppression. David
Licknaitzky, an experienced youth worker and founder of YEN, believes
that young people were, and still are, especially susceptible
to this negative, self-defeating mindset as a result of repeated
disheartening experiences in a poor public education system, poverty,
exposure to high levels of violence (social, domestic, criminal
and political), lack of opportunities (particularly for employment)
and widespread disruption in family and community life.
To address this situation, Liknaitzky believes that a new “liberation
struggle” needs to be waged. Youths need to be empowered
with a belief in themselves, a sense of direction, resilience
to deal creatively with the stresses and strains of everday life
and the ability to be assertive without being aggressive. This
is what YEN’s nine-week, full-time training programme, “Facing
the Future With Courage”, aims to do.
SSACI
is currently funding six YEN courses, to be run between September
2001 and July 2002, for a total of 150 youths from Alexandra, inner-city
Johannesburg and Kathorus on the East Rand.
|
The activity-driven
programme deals with such topics as:
-
Teamwork and co-operation
-
Dealing with emotions
-
Relationships and diversity
-
HIV/AIDS
-
Taking responsibility
-
Building confidence
-
Finding a job
-
Starting your own business
Participants
are encouraged to manage their own learning process, and to develop
their capacity for independent thinking, creativity and extending
their limits. The emphasis is not so much on what is a problem
or a deficit in one’s psychological make-up, but on finding
and using one’s full potential. Mornings on the course are
mainly devoted to experiential activities that develop critical
interpersonal and intrapersonal skills. Afternoons include a range
of outings and cultural activities designed to expose participants
to new ideas and experiences through which they may discover previously-unrealised
talents within themselves, and develop new avenues for self-expression.
As with all SSACI-funded projects, “Facing the Future With
Courage” is being independently evaluated. Psychometric
tests conducted on participants before and after the nine-week
programme have established that it has a significant, positive
affects the trainees’ attitudes towards themselves and others
and imparts a sense of agency – that is, a belief in one’s
ability to be master of one’s own destiny. According to
the interim evaluation report: “There was a total improvement
in the group’s scores between the pre- and the post-test
[on the BarOn Emotional Quotient Inventory]… The post-test
score falls in the high scoring category and indicates a well-developed
emotional and social capacity. Therefore, this shows that the
programme was successful. Participants improved overall in an
array of non-cognitive abilities, competencies and skills that
enhance their ability to succeed in coping with environmental
demands and pressures ”. The evaluator concluded that “Overall,
it can be seen that the programme has had a positive effect on
the lives of the participants”.
The next phase of the evaluation will involve tracking a sample
of course participants to see how well they bring their newly-developed
skills to bear on the task of realising their personal goals,
such as finding a job, starting a business, enrolling in and completing
further education courses, undertaiking community projects and
so on. Judging from progress to date, they certainly seem to have
taken to heart an old Chinese proverb that forms part of the YEN
credo:
“Better to light a candle than to curse the darkness”.
|
What
Support is Available for SMMEs? |
With so much
hope being placed in small, medium and micro-enterprises (SMMEs)
as an engine for economic growth and job creation, national and
provincial governments have put considerable resources into support
structures and programmes for them. Programmes funded and operated
at national level include:
-
Manufacturing Advisory Centres (MACs):
Piloted in Eastern Cape and KZN during 2000-2, these centres
support micro and very small businesses (employing 1-20 people)
in the manufacturing sector with advice in such aspects as:
accessing finance, developing quality assurance systems, improving
productivity, managing human resources and marketing. The plan
is to have at least one centre in every province by 2005.
-
Incentive Schemes: The Department of Trade
and Industry (DTI) operates numerous incentive schemes for SMMEs,
including:
-
- Short-term export finance guarantees
-
-
Export Marketing and Investment Assistance
-
-
Venture Capital Scheme
-
-
Standard Credit Guarantee Scheme
-
-
Standard Leased Factory Building Scheme
-
-
Low Interest Rate Empowerment Scheme
Many of these schemes focus on a particular sector of the
economy in order to foster growth where there is most potential.
Information about these and other DTI schemes can be obtained
from the DTI, Khula Enterprise Finance Ltd or the Industrial
Development Corporation. (IDC).
-
Local Economic Development Programmes: Funded
by DTI but operated through local and provincial governments,
this initiative aims at integrating urban and rural development
to promote economic growth. Finance and business advice is provided
to new enterprises, especially in the agricultural, forestry,
mining and tourism sectors. Particular emphasis is placed on
developing business opportunities “upstream” and
“downstream” from existing, large-scale mining and
manufacturing operations, and on enterprises that involve partnerships
between the public and private sectors.
-
Small and Medium Enterprise Development Programme (SMEDP):
Another DTI initiative, this scheme targets small industries
in the manufacturing, tourism, IT, biotechnology and
|
business services
sectors. Businesses that began production or operation after 1
September 2000 are eligible to apply for a financial package that
includes:
-
An investment grant payable for the first two years on certain,
specified assets
-
An additional grant in the third year of operation if value-added
remuneration to the workforce increases by 30% or more
-
A foreign incvestment grant of up to US$150‘000 per
project for approved machinery and equipment
-
Emerging Contractor Development Programme:
Operated by the Department of Public Works (DPW), this programme
aims at developing the managerial skills of small contractors
in the construction sector. It includes a targeted procurement
component, in terms of which DPW links emerging contractors
on its database to suitable construction projects and helps
them access credit and loan finance.
-
IDC Finance:
The Industrial Development Corporation offers emerging SMMEs
a variety of financial products, including:
-
-
Equity investments, where the IDC will take a minority shareholding
(20-30%) in ventures which have high development impact
or profit potential.
-
-
Wholesale finance to intermediaries for on-lending to SMMEs
that have secured contracts from government departments
-
Information
Networks: A number of web-based information systems
are now in operation, including the DTI-funded Buusiness Referral
and Information netwrok (BRAIN), which provides useful business
information along with links to 35 Local Business Centres.
In addition
to these national programmes, all nine provinces operate business-support
centres and offer various financial incentives to small enterprises,
often focusing upon sectors that are deemed to be particularly
important to the provincial economy. Most government departments
at all levels have a declared policy of encouraging emerging SMMEs
through targeted procurement.
A good starting point for any SMME in search of support is the
website of the Ntsika Enterprise Promotion Agency (www.ntsika.org.za),
which has numerous links to other SMME-related sites.
|
A
Summary of Current SSACI-Funded Projects
Beneficiary |
Description
of Project |
Grant |
|
|
|
ABC
Ulwazi Community Radio Project |
Business
and technical skills training by a mixture of contact-sessions and
distance-education in tourism- and hospitality-related enterprises
for 120 young entrepreneurs in 12 selected localities around the
country |
R
800´000
over 2 years,
2001-2
|
|
|
|
Amsai
Primary School |
Construction
of an IT centre for use by this community school and adult basic
education centre in Orange Farm informal settlement, Gauteng. |
R
2‘400´000
over 3 years,
2001-3
|
|
|
|
Association
for the Physically Disabled |
FET-level
technical skills training (in welding or catering) and post-training
mentorship in setting up micro-enterprises for 25 youths (able and
disabled) in Soweto, Gauteng |
R
438´000
over 15 months,
2001-2
|
|
|
|
Bahloki
Unemployment Association |
Technical
skills training (in the manufacture of wire-mesh fences and floor-polish,
and small-scale poultry farming) and post-training mentorship in
setting up micro-enterprises for 100 youths from rural Mpumalanga.
|
R
400´000
over one year,
mid 2001-2
|
|
|
|
Borakenelo
Trust |
Vocational
training in welding, carpentry or dress-making for 60 youths from
the rural Delpoortshoop area of the Northern Cape, and post-training
mentorship in setting up micro-enterprises |
R554‘000
over one year,
mid 2002-3
|
|
|
|
Business
Skills and Development Centre |
FET-level
training in office and business skills, and post-training mentorship
in finding jobs or setting up micro-enterprises, for 70 youths from
the greater Cape Town area. |
R
700´000
over one year, late 2001-2
|
|
|
|
Conquest
for Life |
Training
in electrical repair, uphosletry repair or detergent production
for 100 youths in Westbury and Coronationville, Gauteng, and post-training
mentorship in finding jobs or setting up micro-enterprises |
R900‘000
over 2 years, 2002-3
|
|
|
|
Forest
Town Foundation School |
Refurbishment
and equipping of a skills training centre for senior learners at
Forest Town School for handicapped learners, Johannesburg. |
R
350´000
over one year, mid 2001-2
|
|
|
|
Friends
of Mosvold Hospital Trust |
Tertiary-level
training in medical sciences for 30 students from rural KwaZulu-Natal,
who will thereafter be employed at Mosvold Hospital, Ingwavuma,
or its satellite clinics. |
R
847‘000
over two years, 2002-3
|
|
|
|
Furntrain |
FET-level
technical skills training in carpentry and cabinet-making, and post-training
mentorship in finding jobs or setting up micro-enterprises, for
150 youths from North West Province. |
R
1‘215´000
over two years, 2001-2
|
|
|
|
Midrand
EcoCity Trust |
FET
and tertiary-level training for 10 youths from Tembisa/ Ivory Park
as eco-tour guides and assistance in setting up tourism agancy to
coincide with WSSD. |
R
450‘000
over one year, 2002
|
|
|
|
National
Peace Accord Trust |
FET
and tertiary-level training for 30 formerly-militarised youths in
4 provinces as wilderness tour guides. |
R
930‘000
over two years, 2001-2
|
|
|
|
Outward
Bound Trust |
Life
skills, entrepreneurial skills and literacy training for 60 "street
youths“ from Durban and the East Rand |
R
215´400
over one year,
mid 2001-2
|
|
|
|
Rural
Education Access Project |
Tertiary-level
training and in-service learnerships in the fields of mechanical
and electrical engineering for for 50 youths from the rural Western
Cape, and post-training support in finding |
R
656‘000
over 3 years,
2002-4
|
|
|
|
Siyavuka
Lateral Improvement Foundation |
Technical
skills training in the production of ceramics for 30 youths from
Soweto, and assistance in setting up commercial production units. |
R
366´400
over 18 months,
2001-2
|
|
|
|
School
Leavers‘ Opportunity Training |
Training
and on-the-job learnerships in the hospitality industry for 60 youths
from rural Western Cape and KZN, and post-training assistance in
finding jobs. |
R554‘000
over 18 months,
2002-3
|
|
|
|
Skills
Training for Employment Centre |
Training
in general office administration skills for 60 youths from the greater
Cape Town metropole, and post-training assistance in finding jobs.
|
R
580‘000
over 18 months, 2002-3
|
|
|
|
Youth
Empowerment Network |
Life-skills
training for 150 youths from Alexandra, inner-city Johannesburg
and Kathorus, Gauteng |
R
462´000
over 12 months,
mid 2001-2
|
|
|
|
|
Total
Value of Current Grants: |
R
12´827´800 |
In
the next edition of SSACI NEWS…
- Focus on a Project:
abc-Ulwazi
- Lessons from
SDC’s experience of promoting vocational training projects around
the world
- What is SSACI
doing about HIV/AIDS?
|
