SAB's enterprise development programmes : an evaluation of KickStart and Mahlasedi projects
Thesis (MBA (Business Management))--Stellenbosch University, 2008.
ENGLISH ABSTRACT: Corporate Social Responsibility (CSR) is an illustrious initiative that most companies take advantage of in order to position themselves for competitive advantage in the business world. Other companies view it as an opportunity to contribute towards the development of the society who they find themselves doing business with. Globally, CSR is viewed in different context and South Africa has its own unique way of approach. South Africa's historical problems are still prevalent. These include poverty, unemployment, housing and services backlog and economic inequality. The government is facing a challenge of alleviating most of these by channelling resources to social development. However, the magnitude of these challenges cannot be confronted by the government alone, somehow private sector must assist. Undoubtedly several companies within the private sector benefited from the legacy of the past. Thus, in a South African context, philanthropic gesture from the sector is not an option, but a responsibility. Government is obviously aware of social mandate and its promise, and of the economy's persistent sluggishness to employment creation. Of course, the economy is growing at acceptable rate, but its growth is not in synch with job creation. Through research and learning from developed countries, the government has set its sights on nurturing small, medium and micro enterprises (SMMEs) as the preferred method of fighting joblessness. Broadly, this strategy has shown positive results globally and multinationals have collaborated with governments to promote enterprise development. The idea gives a broader hindsight that entrepreneurial culture is the way to go to build a foundation of a robust sustainable enterprise development. A number of companies that value CSR have heeded to this call - corporate social investment to sustainable enterprise development - and one of them is South African Breweries Limited. SAB has various enterprise development programmes that contribute significantly towards socio-economic development. This report highlights the significance and relevance of the two entrepreneurial programmes from SAB, known as the KickStart and Mahlasedi. A main focus will be on the two programmes and how they are implemented, their rationale and how much has been invested so far to ensure their sustainability and success. The KickStart and Mahlasedi programmes have been in operation since 1995 and 2002 respectively. SAB Limited has invested more than R36 million for the KickStart and has helped make 3 200 people to become entrepreneurs. Mahlasedi taverner training programme has assisted licensed taverners to run businesses efficiently with reports of owners saving up to 30.53% in monthly liquor sales and being able to grow their investments to 40.54%. An in-depth research into the programmes reveals that the two programmes have made significant strides towards sustainable development, despite challenges of a few candidates receiving funds in the KickStart programme and provincial licensing hiccups on the part of Mahlasedi. This could be an example to other companies that are keen and have not yet gone the route, to transform on CSI strategies. A key success factor in the implementation phase of these programmes was mentoring of beneficiaries. Huge capital investment can be made into socially responsible initiatives, but without mentoring, sustainable development of benefiting enterprises may not materialise.
AFRIKAANSE OPSOMMING: Korporatiewe sosiale verantwoordelikheid (KSV) is 'n inisiatief van die korporatiewe sektor wat al hoe meer uitkring vanwee ondernemings se oogmerk om hulle mededingendheid te verbreed. Ander beskou dit as 'n geleentheid om dienste aan die wyer gemeenskap te gee. Wereldwyd word KSV uiteenlopend vertolk en het ook Suid-Afrika sy besondere benadering. Suid-Afrika se onderliggende probleme, soos armoede, werkloosheid, behuisingsagterstande en ongelykheid, duur nog steeds voort en gee vir die regering groot uitdagings wat betref hulpbronkanalisering vir sosiale ontwikkeling. Dit is derhalwe nodig dat die privaatsektor ook tot die oplossings bydra. Waar baie ondernemings in die verlede van die bedeling voordele behaal het, is filantropiese aksies nou 'n vanselfsprekende verantwoordelikheid. Ten einde die gebrek aan werksgeleenthede aan te spreek, le die regering heelwat klem op die kleinsakesektor en sy vermoe om skeppend te wees. Dit het wereldwyd sukses en die korporatiewe sektor is bereid om die staat se pogings te ondersteun. Hierdie siening lei tot 'n beklemtoning van ondernemerskap en hoe dit aangehelp kan word. Verskeie korporasies het hierdie rigting ingeslaan, met Suid-Afrikaanse Brouery as een van hulle. SAB se KSV-projekte sluit verskeie van die projekte in. Hierdie studie fokus veral op twee sodanige programme, nl. KickStart en Mahlasedi, met die klem op hul oorsprong en ontplooing. KickStart is reeds sedert 1995 in werking, met 'n SAB belegging van R36 miljoen en die aktivenng van 3200 ondernemings. Die Mahlasedi program vir die opleiding van taverne-eienaars is vanaf 2002 in werking en het ook daar beduidende suksesse behaal. Lesse geleer uit hierdie twee programme mag ook relevant wees vir ander projekte, met besondere klem op die mentorskap-dimensie.