By Sibabalwe Tame
Minister of Small Business Development Stella Ndabeni-Abrahams launched the Crudastar Incubator in Joza Location in Makhanda on Thursday, 2 November, to empower small businesses, especially in the townships and rural areas.
Ndabeni-Abraham’s keynote address took place during the 15th Annual Stakeholder Forum (ASF) in the Eastern Cape Province, themed ‘Ecosystem Collaboration Enhanced to Accelerate the Growth of Small Enterprise’, hosted by the Small Enterprise Development Agency (SEDA).
The event included various stakeholders, the Makana Local Municipality Executive Mayor Yandiswa Vara, beneficiaries of the programme, and representatives of the five entities who partnered for the event: the Eastern Cape Department of Economic Development, Environmental Affairs, and Tourism; its agency, the Eastern Cape Development Corporation; the Sarah Baartman District Municipality; the Ndlambe and Makana local municipalities.
According to Ndabeni-Abrahams, the Department of Small Business Development’s mandate is to develop and support small, medium and micro enterprises (SMMEs) and co-operatives.
Ndabeni-Abrahams emphasised that money meant for enterprise development must be utilised on enterprise development.
“We said 30% goes towards township and village-owned businesses, and then we said we are re-structuring this to 67%, which must be spent on equipment, on infrastructure and other requirements for the businesses.”
She added that her administration had set the goal to build 100 incubators by the end of 2024, but they have already exceeded the number by 10 incubators to a total of 110 incubators thus far. “We have approved 11 for this financial year,” said Ndabeni-Abrahams, adding that if things go well, by March 2024, they will have 121 incubators.
Ndabeni-Abrahams said the Department of Small Business Development is taking a different direction to bring back innovation. She added by saying the best way to get back innovation is to look at incubating those that have the ideas. She said they recognise that there are people with the capability to think.
“There are people who take the initiative and work on the thinking and build something with their hands, and this is the ecosystem we are committed to investing in”.
Vara spoke about the role of incubation centres as they have created competitive, sustainable job creation in the global economy. “The World Bank research showed that out of 90 000 companies under research, more than 245 000 sustainable jobs were created. This on its own indicates that incubators are present in the life of the business,” said Vara.
Manager at the new Entrepreneurs Unlimited Incubator, Lulama Jakavu, said the centre aims to help and support those with business ideas to formulate them into a start-up. At the same time, those who have been running for some time and still need to be assisted can also benefit from the centre. She adds that the centre will not only provide working space for entrepreneurs but will eventually provide equipment as well.
“We will offer technical and business training; we will do certain specific training where we will then zoom into technical aspects of the business,” said Jakavu, adding that the centre would also provide agricultural training.
Expressing gratitude for the SEDA fully-funded centre, Jakavu thanked its partners, the Makana Municipality, for providing the facilities for the centre and the Sarah Baartman District’s continued support.
Vara also spoke about development plans for the local economy and the Makana Municipality executing them. These plans include upgrading the James Kleynhans Water Treatment works to provide sufficient water to Makhanda and reconstructing Ncame Road in the Joza Location.
Ndabeni-Abrahams said that to ensure proper economic growth, businesses must understand that everything is part of an ecosystem. “We continue to urge for unity amongst the business chambers because the fragmentation does not assist government and the society,” she said.
