KUGOMPO CITY- Eastern Cape entrepreneurs have been warned that funding alone will not fix struggling businesses, with development experts urging small-business owners to get their systems, compliance and markets right before seeking financial assistance.
The warning came during IWISA No.1’s first-ever Small, Medium and Micro Enterprises (SMMEs) Conference at KuGompo City Hall on Thursday, held as part of the brand’s 70th anniversary celebrations.
The conference, under the theme ‘Heroes, Heirs and Heritage’, brought together entrepreneurs, government officials and business support organisations to share practical knowledge on building sustainable businesses.
IWISA No.1 Premier Senior Brand Manager at Consumer Staples Phumzile Nhlapo said the conference was created to benefit entrepreneurs who participated in the brand’s four-year-old Community Champions initiative but did not make the top seven finalists.
“We host an SMME Conference to ensure that we also impart knowledge, tools and provide a networking session for other SMMEs that have applied but have not made it to the top seven finalists,” Nhlapo said.
The Community Champions programme offers R70,000 to the overall winner, R50,000 to the first runner-up and R30,000 to the second runner-up as well as mentorship.
Buffalo City Metropolitan Municipality General Manager for Trade, Industry and Sector Development Xolelwa Mbete said, SMMEs played a critical role in job creation and economic development.
“Across our communities, SMMEs continue to be a driving force behind innovation, job creation and economic development,” Mbete said.
However she said entrepreneurs needed resilience to survive the highs and lows of running a business.
“Today you are successful and clients are coming in, tomorrow it is quiet. So that requires resilience,” she said.
Furthmore, Eastern Cape Development Corporation(ECDC) Enterprise Finance and Business Support Unit Fikile Mzinyati told delegates that compliance was one of the first hurdles businesses needed to overcome when applying for funding.
“Compliance is definitely number one. If your business is not following the set criteria that you are applying for, you are going to be declined,” Mzinyati said.
She emphasised that, entrepreneurs should first identify the real problem in their businesses instead of automatically assuming they needed money.
“Sometimes your business is not making money and that is not because you need funding. You have a systems issue,” she said.
Mzinyati also added that, funding institutions were accountable for every rand issued because the money came from taxpayers.
Among the exhibitors was Khustar’s Designs Director Mkhuseli Ntshokolwane a Mdantsane fashion entrepreneur specialising in traditional attire, formal wear, church clothing and school uniforms.
“It’s a great experience as an exhibitor and I’m very excited as an SMME,” Ntshokolwane said.
Nhlapo said IWISA wanted the conference to have an impact beyond the anniversary celebrations and prize money.
“This is not a once-off event. We want to ensure that the knowledge shared here helps these businesses grow to become employers and mentors,” she said.
She also emphasised that, the aim was for the ‘Heroes, Heirs and Heritage’ message is to translate into sustainable businesses that could create opportunities for future generations.
Courtesy of IMAGES: Sithabile Sambela
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