Nozizwe Vundla | 19 September 2024
Sanlam’s Enterprise and Supplier Development initiatives aim to empower entrepreneurs and SMEs
The unsung heroes of SA's economy are our entrepreneurs, who drive growth and innovation through their small and medium enterprises (SMEs). These businesses comprise 98.5% of formal businesses in the country (Stats SA, 2022) and account for 34% of the GDP.
Despite its importance, SA's SME sector growth remains slow. Early-stage entrepreneurship rates are 3.5 times lower than the global average, according to the Global Entrepreneurship Monitor (2022). Furthermore, SMEs face significant challenges including limited access to funding, with 70% struggling to access credit (FinMark Trust, 2022). Skills development is another major barrier, with 45% of SMEs citing a lack of skills as a huge constraint (SEFA, 2022).
To address these challenges, Sanlam is committed to championing SMEs through its Enterprise and Supplier Development (ESD) initiatives. The goal of the Sanlam Foundation ESD programmes is to empower SMEs to drive economic growth, job creation and financial inclusion.
Entrepreneurship is crucial for unlocking SA’s demographic dividend potential and addressing socioeconomic disparities. The ESD programmes aim to create lasting economic sustainability, helping entrepreneurs thrive and contribute to the National Development Plan’s vision of amplifying SMEs’ impact on the economy.
Purpose-driven programmes
Sanlam Group ESD Programme:
This programme seeks to provide support to high potential black-owned businesses to ensure equitable participation of black-owned SMEs in the supply chain of the Sanlam Group. The 2023 cohort saw a 33% growth in revenue in the below programme streams:
Project Accelerator: Provides business development support to 14 SMEs, focusing on market access, funding, and skills.
Project Elevate: Targeting 24 financial planning firms, this programme provides specialist training within Sanlam’s BlueStar network of financial planners.
Project Migrate: This programme provides business development support to 11 financial planning businesses.
Black women-owned SME Programme:
This is the first-ever ESD programme at Sanlam that focuses solely on women SME owners. The programme is delivered virtually, and the 2024 cohort consists of 29 businesses across SA.
There are three programme streams, focusing on SMEs in different stages of the business life cycle:
Masakhe is a six-month programme targeting early-stage businesses for entrepreneurs in the ideation, pre-revenue or start-up phase of development or establishment.
Siyakhula is an eight-month programme that is designed to help owners of established businesses identify growth opportunities and overcome current business challenges.
Asindize is a 12-month programme that aims to propel high growth potential businesses forward by connecting them to the right funding and market access opportunities.
Sanlam Leruo Stokvel Programme is dedicated to formalising stokvels into viable businesses. With more than 800,000 stokvels in SA managing R50bn annually, this sector plays an important role in improving the national savings rate, now at a low 16% of the GDP. The initial impact has already been felt with five stokvels supported, translating to 152 members empowered to take control of their financial futures and contribute to the country's economic growth.
SMEs — SA’s hope
Supporting SMEs is vital for fostering financial inclusion and unlocking opportunities for all. This country’s greatest strength is its people, who have grit, humour and the indomitable drive to change their fortunes. Sanlam is determined to help them do this.
Download the 2024 Sanlam ESG Barometer report
Now in its second edition, this annual report — researched by Krutham and published in partnership with Business Day — examines evolving ESG dynamics and how listed companies in SA and Kenya are enhancing environmental and social outcomes through their operations. Click here to download it.
‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.
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