Profile: ITHUBA – ITHUBA empowers start-ups with the business skills to thrive

What is the focus of the ITHUBA Enterprise and Supplier Development Programme?

How does the programme help bridge the skills gaps to ensure that businesses develop holistically? How has being part of the ITHUBA programme enabled commercialisation and sustainability for start-up businesses?

Our Enterprise and Supplier Development programmes support our SMEs to grow and sustain their businesses in the long term. We provide training programmes and we make sure that they remain resilient even in the face of unprecedented diffi culties, such as an economic shutdown. The support we offer is multi-faceted – it includes fi nancial help and tailor-made training in the range of skills that a small business needs to interact in today’s networked environment. It’s a long-term perspective that ultimately benefi ts not only our SMEs but the entire economy.

Our courses combine formal input from subject experts with hands-on mentorship that allows the SMEs to try things out and get useful feedback. We offer education and mentoring in key aspects of management. To get the best training we partner with suitable institutions of higher learning. For our Female Retailer Programme, which advances the economic development of women entrepreneurs, we are working with Regenesys and the University of Johannesburg Business School.

We have programmes for our SMEs and for the women who sell National Lottery products and want to improve their business acumen. In 2021 a group of SMEs completed the 3-month course at the University of Johannesburg. In early February this year a new group of SMEs embarked on their training course.

For young aspiring entrepreneurs we have the Youth Enterprise Development Programme. This offers young people aged 18 to 35 the support they need to develop their business concepts into sustainable profi t-making enterprises. ITHUBA provides these young go-getters with business training and mentorship in essential aspects of business, along with key offi ce infrastructure. ITHUBA’s programmes are designed to equip start-ups with the specifi c skills they need to keep their businesses going in the long term. Once they have been introduced to basic management principles, we support our SMEs to apply these principles within their own business context. At fi rst this can be a real struggle for a small business, but the ones who are serious about growing their enterprise soon fi nd out that it pays off.

Our relationship with these SMEs is ongoing – we regard them as part of our extended ITHUBA family. This means they are not left out there on their own but are operating within a much larger overall business environment.

To date, how many start-ups has ITHUBA assisted, and what has the impact of this been?

By the end of 2021 a total of 100 women had received formal qualifications in business through the Female Retailer Programme. This programme has helped these women to become self-sustaining entrepreneurs.

During lockdown in South Africa, ITHUBA funded 82 small businesses with grants. These grants, which were made in recognition of the impact of Covid-19 on the SME sector, were instrumental in both the recovery and growth of these start-up businesses.

Our policy is to support previously disadvantaged groups, including women, so within our own business we do the same. The profile of our executive team is a simple demonstration of women’s ability to lead, which in itself gives other women confidence. The majority of the spaza shops that have partnered with ITHUBA are owned and run by women. I do think that the gender landscape is slowly transforming and ITHUBA is happy to be part of that. Start-ups benefit from being in a supportive business environment. It is like being in a family – when times are tough, others help. During the worst phases of the COVID-19 pandemic ITHUBA made sure that our partners had enough support to get through. In all our initiatives we take our SMEs along with us so they have a business context in which to operate.

Our integrated approach is crucial. If you want sustainability within an economic ecosystem your business relationships need to be nurtured over time. You can’t simply dish out a few obligatory hand-outs and expect that to generate a healthy business environment which opens opportunities. While ITHUBA does give grants and financial support, that is only one element of our relationships with our SMEs. By engaging in ongoing real world business relationships, we help our partners to stay in business and build entrepreneurial muscle.

We plan to expand our Enterprise and Supplier Development programmes so that more of our partners benefit. To achieve this we will solicit input from the current cohort of beneficiaries to ensure that we remain responsive to the needs of our SMEs. Our partnerships with institutes of higher learning are extremely valuable and we maintain ongoing dialogue to ensure our programmes meet the current needs of participants and measure up to the required NQF standards.

How does having a 60% women-led EXCO team impact empowerment programmes run by ITHUBA that focus on women?

According to reports, South Africa has one of the highest failure rates for SMEs – an estimated five out of seven businesses fail within the first year. What can be done to improve this statistic?

Many private companies have ESD programmes with similar aims to ITHUBA – to help drive innovation and economic growth. What would you say is the winning ingredient for ITHUBA’s successful programme?

How do you see the programme developing further?

How are ITHUBA’s programmes contributing to the South African economy?

ITHUBA believes that entrepreneurship is critical in driving innovation and economic growth in South Africa, and expansion of the small and medium enterprise sector has been identified as a crucial part of this. We are providing business opportunities for our SMEs. The grant allocation that ITHUBA made during the pandemic has ensured that these businesses have remained active participants within the economy. Our ongoing relationship with our business partners has generated a mutually supportive economic environment that benefits all participants. ITHUBA also has other programmes outside the ESD arena that play a role in South Africa’s economic health. The ITHUBA Bursary Programme covers the full cost of study and maintenance for students in institutions of higher learning. This year the bursaries are for students doing degrees in business management, accounting and IT: all disciplines in short supply in the economy. The 2021 bursary intake awarded 50 students with full scholarships that cover tuition, accommodation, books, allowance, mentorship, and counselling. We also have a Youth Employment initiative in which ITHUBA, mentors 10 to 15 graduates to upskill their career. The programme also provides professional training through reputable institutions such as the Gordon Institute of Business Science.

No matter what your background is you have an absolute right to pursue the career of your choice. Keep your eye on your long-term goal and treat any setbacks that cross your path – and there are always setbacks – as opportunities to learn and grow.