Short description

Shanduka Black Umbrellas, through incubation, facilitates the development and sustainability of 100% black owned businesses to a level where they are able to meaningfully access procurement, finance and networking opportunities.

Need

South Africa is a country with high unemployment (25.6%), and a failing education system (60.9% 0f our adult population has not completed secondary school). It is a well understood fact that SMEs are major contributors to economic growth and job creation, however South Africa has low levels of entrepreneurship and a high business failure rate during the first two years of operation.

Black Economic Empowerment has created an opportunity for previously disadvantaged entrepreneurs to access opportunities through the enterprise development, procurement and (more recently) supplier development components of the codes. However, more assistance is required to ensure that businesses can compete and have the necessary controls and systems in place to ensure their survival through the first few years.

It is therefore critical that South Africa supports programmes that increase the uptake of entrepreneurship and support entrepreneurs with the necessary skills, finance and procurement opportunities to ensure that they survive and grow, thereby increasing both jobs and economic growth. Shanduka Black Umbrellas (SBU) is one such programme.

Overview

SBU was initiated in 2005 as an enterprise development initiative of Master Currency. While the organisation had slow beginnings, since 2010 it has expanded rapidly and currently has incubators in Port Elizabeth, Johannesburg, Pretoria, Durban, Richards Bay, Cape Town, Lephalale (Limpopo) and Mooi Nooi (North West). SBU’s purpose is to facilitates the development and sustainability of 100% black owned businesses to a level where they are able to meaningfully access procurement, finance and networking opportunities.

This is achieved by:

  • Promoting entrepreneurship as a desirable career choice
  • Nurturing qualifying 100% black owned businesses in the critical first three years of their existence via business incubation
  • Creating employment opportunities by recruiting and supporting those businesses which have the potential to generate at least four jobs
  • Enabling procurement opportunities through the Shanduka Blackpages initiative
  • Assisting SBU clients that are finance ready to access funding through third party service providers
  • Growing SBU’s knowledge and quality of service offering by accurately measuring, monitoring and reporting on all the organisation does

The programme is comprised of specific phases to ensure these objectives are achieved:

  • Recruitment – Targeted recruitment including public relations and marketing activities, attending seminars and expos, etc.
  • Selection – A rigorous selection process comprising of interviews, psychometric evaluations, credit and criminal checks, evaluation of marketing plans, etc,. to ensure only those businesses which have the potential to achieve the strategic objectives of the programme are selected.
  • Pre-incubation – A three month programme where applicants are assisted in preparing a business plan and are provided with training on tax compliance, etc. At the end of the programme a selection panel evaluate whether the business should be brought into full incubation.
  • Full Incubation – A three year subsidised programme where the business is provided with office infrastructure including bookkeeping and vehicle services, training, mentoring and assistance with access to markets, finance and networks.
  • Graduation and Post-graduation – Businesses are intensively developed in preparation for their exit from the incubator and various ad hoc support thereafter.

What we like about this organisation

SBU’s approach is comprehensive and is meeting many of the needs identified both globally and locally as being the major stumbling blocks to entrepreneurship success, namely: skills, access to markets and networks and access to finance. SBU also had a critical role to play in the development of entrepreneurs in South Africa.

What difference can your money make?

  • R10 000 will fund seven entrepreneur desks for a month which includes access to a vehicle and a driver
  • R250 000 will assist towards the incubation of two entrepreneurs per annum.
  • R750 000 will assist towards the incubation of five entrepreneurs per annum.

Volunteering opportunities

  • Volunteers to mentor businesses.