South Africa’s largest listed property company has launched a new project in a bid to help hundreds of small businesses stay in business.
Banking groups estimate about 45percent of start-ups close after two years.
And scores of small businesses fold before celebrating their first year of operation.
Growthpoint Properties launched a business hub, The Property Point, in the Johannesburg CBD last week to train and advise selected entrepreneurs.
CEO Norbert Sasse said: “The Property Point is about training and supporting entrepreneurs who want to develop their businesses and be able to compete effectively.”
Over the past decade, government policies, and the resultant black economic empowerment obligations on large corporations, have prompted the emergence of a new breed of entrepreneurs — hoping to follow in the footsteps of Johann Rupert, Raymond Ackerman, Patrice Motsepe and Tokyo Sexwale.
Research commissioned by Old Mutual found that small and family-owned businesses currently contribute about 60percent to the GDP, and employ about 75percent of the workforce.
Sasse said the reason behind the failure of many entrepreneurs was mostly insufficient training, a lack of business knowledge and support.
“The Business Place will sponsor selected micro and small businesses through skills training and personal development.
“It will also support them by ensuring tendering opportunities within Growthpoint and its service providers,” said Sasse.
Growthpoint, which has a market capitalisation of more than R15.5-billion and assets worth more than R24-billion, has a portfolio of about 400 retail, office and industrial properties countrywide.
Among the 16 entrepreneurs who have been selected for Growthpoint’s “multi-faceted enterprise development programme” is SABC3’s former continuity presenter-turned-businesswoman Mpho Sono, who owns a cleaning service.
She started her business, TMT Cleaning Services, which employs more than 30 employees, eight years ago and her list of clients ranges from Eskom to corporate and legal firms.
Sono said she got involved in the programme to strengthen her business.
Another entrepreneur on the programme is Sam Dludla, owner of Njilingweni Cleaning, who has 85 employees on his payroll.