How do you leapfrog from a community-based operation to a CBD marketplace? The sustainability of any business is built on the premise of a strong network and the promise of access to market. Community businesses lack the necessary network connections to leverage trade opportunities in the CBD.
Market access comes at a premium. We have all heard the narrative that small businesses are the fuel of the economy, the engine that will revitalise the economy. The National Development Plan (NDP) envisions a South Africa where small and medium enterprises (SMMEs) are at the epicentre of economic development.
The ailing South African Post Office in Sanlamhof at 4 Strand Street, located next to the Sanlam Head Office, served the Bellville and surrounding communities for decades. Although there is no replacement for the fond memories of receiving a handwritten letter or a parcel, the community is now invited to support a somewhat different service: the University of the Western Cape (UWC) Trading Incubator at Sanlam, thanks to the visionary and collaborative leadership of these two parties.
The Incubator will house businesses such as Silulo Ulutho Technologies, Brown Girl Creations and CorpChem Chemicals, each bringing unique products and services to the community. This collaboration between UWC and Sanlam is set to play a pivotal role in job creation, innovation and community upliftment, marking a significant step towards economic empowerment for township businesses.
UWC Sanlam partnership
At the heart of the UWC Sanlam partnership is providing of hope and a hand-up for SMMEs to remain a beacon of hope for the youth in communities who aspire to become entrepreneurs. This partnership aligns with UWC motto, “A place of quality, a place to grow. From hope to action through knowledge”.
This impactful initiative seeks to provide a solution to the challenges often faced by SMMEs. In addition to market access, it provides businesses affordable trading spaces, expert coaching and regular networking events, positioning them for long-term success.
The University of the Western Cape is committed to building an equitable and dynamic society. The establishment of the Centre for Entrepreneurship and Innovation (CEI) in 2012 was an extension of the UWC mission to contribute to the triple challenges of unemployment, poverty and income inequality. Over a 10-year period the CEI has positioned itself as an expert provider of cutting-edge business development support and customised mentoring and coaching support during and after incubation. The Trading Incubator is unique as the first initiative of its kind linked to a university solely focussed on providing a gateway to market access and wrap-around support for community SMMEs.
This impactful initiative seeks to provide a solution to the challenges often faced by SMMEs. In addition to market access, it provides businesses affordable trading spaces, expert coaching and regular networking events, positioning them for long-term success.
Growing an inclusive economy
The Incubator is part of UWC’s broader mission to stimulate inclusive economic growth. It targets financial inclusion across gender, race and age, with a special focus on black-owned businesses.
Manie Regal, UWC’s executive director of finance, adds: “This Incubator is not just about boosting small businesses, it’s about creating a path to economic empowerment for marginalised communities. By giving community businesses access to trading spaces in Bellville, we are also contributing to the revitalisation of the area, fostering a more inclusive and vibrant economy.”
Paul Hanratty, CEO of Sanlam, says, “SMMEs are vital to driving sustainable job creation in South Africa. Through the Incubator, we are not only providing community businesses with access to markets but also contributing to the future growth of our economy.”
Community entrepreneurs
The first cohort consists of nine township-based businesses, of which four are woman-owned businesses. It covers a range of industries such as Internet cafe, African clothing, home decor, fashion accessories, rustic furniture, beds and biltong. The entrepreneurs pay a developmental rental of R50 per square metre. Since the launch, the resident entrepreneurs have exhibited their products at the Bellville Business Expo (17-18 October) which was held at Tygervalley Shopping Centre. They were also given access to Sanlam’s monthly Market Day.
Call to action
Corporate South Africa and the public sector need to join forces to ignite a new dawn to restore dignified livelihoods for all South Africans.
South Africa needs more incubators linked to universities if the SMME sector is going to reach its potential in driving job creation and economic growth. UWC has built up a blueprint over a decade to support the growth of both business and personal leadership skills of township SMMEs.
Sanlam has been generous in its support, providing the facility at zero rental, plus covering additional overheads such as monthly security and cleaning costs.
Corporate South Africa and the public sector need to join forces to ignite a new dawn to restore dignified livelihoods for all South Africans.
Sanlam also covered all the refurbishment costs as well as the painting and branding to creatively repurpose the post office. The CEI is responsible for managing the Incubator, monitoring and tracking impact and organising monthly networking sessions.
Hanratty adds, “We call on corporate South Africa to join us in supporting SMMEs. Through shared resources, mentorship and access to markets, we can ensure that our entrepreneurs succeed and contribute to South Africa’s economic future. Now is the time for the private sector to step up and be part of the solution.”
About the CEI
The CEI specialises in community and youth entrepreneurship projects. Targeted and transformative projects include the Fellows leadership and mentoring programme, the Master Builders Contractors project and Digital Skills. Youth projects focus on nurturing the next generation of innovators. As the 2024 Enactus National Champions, the Enactus UWC team proudly represented South Africa at the prestigious 2024 Enactus World Cup.
For more information, email Klamani@uwc.ac.za