The Development of SMME’s in Alexandra
Perhaps the greatest social challenge facing Alexandra is that of
unemployment.
Amongst its primary goals, the Alexandra Renewal Project (ARP) is
charged with substantially reducing levels of unemployment within
Alexandra where only a third of households have someone working in the
formal economy. Because of Alex's prime location and recently improved
access to surrounding areas and the regional economy, the dual
problems of poverty and unemployment are exacerbated by the constant
influx of more people hoping to find gainful employment.
Since the inception of the ARP in 2001, over 17 000 Alex residents
(including about 2000 at present) have been employed on
Project-related construction sites. While this has been an excellent
form of short-term job creation, it is not a long-term solution.
Entrepreneurial success is essential for the long-term economic
revitalisation of Alexandra, and to this end, the Local Economic
Development team focuses considerable attention on small enterprise
development.
The ARP's Local Economic SMME Development initiative seeks to:
- facilitate the development of skills amongst Alexandra's
residents;
- facilitate opportunities for job creation within Alexandra and
surrounding areas;
- promote the creation and growth of small enterprises owned by
local entrepreneurs;
- foster productive economic linkages between Alexandra and the
regional economy;
- enhance the stability and growth prospects of Alexandra within
the broader economy.
Current LED (Local Economic
Development) projects use a multi-faceted approach to
overcome challenges. These initiatives include:
1. The Business Place Alexandra (Local Business Support Centre)
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Hours: |
09:00 to 16:00
Monday - Friday |
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Address: |
Alexsan Kopano Centre, 12th Avenue (cnr Selbourne) |
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Email: |
alex@tbp.co.za
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Phone: |
011 882 3306/19 |
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Manager: |
Dumisani Hlatshwayo |
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The Business Place Alexandra (TBPA) was developed by the ARP in
2006, with equipment donated by the Norwegian Government.
Working closely with each new LED cluster established by the ARP, TBPA currently assists over 400
people a month. A total of 1821 clients were assisted during the 2nd
quarter of 2008. While there are many
success
stories, there are also a number of challenges, such as the 1617
TBPA clients who are having difficulty moving from the “ideas” stage
to actual implementation.
Alexandra Business Leader of the Year Award 2008
Following on the success of last year's competition, the search is on
to find the best entrepreneur in Alexandra. The competition is open to
TBPA clients and other small business owners in the Alex area who have
been operating for six months or more and have an annual turnover of
under R500 000. The competition aims to inspire and celebrate small
businesses, as well as to provide cash injections for the winners:
First prize: R25000, second prize: R15000 and 3rd prize: R10000. The closing date is the 30th September 2008, and entry forms are
available from The Business Place Alex or the ARP Offices in Wynberg.
[The Business Place is a countrywide network of
walk-in centres for entrepreneurs, with relevant support and
information services clustered under one roof. It has emerged as a
leading small, medium and micro enterprise (SMME) development service
in Southern Africa.]
2. Olympic Training & Development (Employment Information Centre)
The ARP has partnered with a local training and development company
to improve the office skills of Alexandra residents. Olympic Training
and Development assists its learners in finding employment, and to
date has successfully placed 75% of its 2007 graduates. Courses
offered:
- Office Administration: a six-month course including computer
literacy and life skills training.
- Job Searching Skills.
- Maritime Training Programme: this course is aimed at school
children and prepares them for a career in the Navy, Merchant Navy,
or on cruise ships and boats.
- Career Pathing: in Partnership with the University of the
Witwatersrand, this course is taken to Alexandra high schools as
part of Life Orientation and assists the Grade 10 – 12 children with
self-assessing thereby enabling them to choose an appropriate
career.
Over 2000 people have been trained since 2005. In August 2008
alone, 60 successful graduates were referred to SAPS and Boston
Training College, which has bursary facilities, and 63 new candidates
registered for courses. Challenges currently facing the Employment
Centre include the long waiting list of candidates and a desperate
need for another 20 computers and a larger training venue.
3. Alexandra Tourism Business Association (ATBA)
Visitors to Alexandra fall into in three distinct groups -
academics, construction industry developers, and tourists looking for
the real township experience. Tourism has been identified as an
industry that could greatly benefit the residents of Alex in terms of
economic development.
The ARP, together with the Alex Tourism Business Association (ATBA)
and other partners, including the Sandton Tourism Association, have
developed a strategy facilitating links between the growing tourism
market in Gauteng and Alex businesses and residents. Such links
include, for example, catering and hospitality services, heritage
sites and locations, entertainment nodes, a website, etc.
Recently the ARP has also undertaken an assessment of all
businesses associated with tourism in Alexandra. A database of these
businesses is being developed and will be included in a revamp of the
Alexandra Tourism website in the near future.
One of the aims of the ARP and its partners is to create a niche
tourist market. To this end, an “Ambassadors Programme” is being
developed with 2 people per ward being selected to promote tourism
within that area and to communicate between the visitors and service
suppliers. In addition, a new tourist map is being created which will
be widely distributed.
Alex Tourism Node
The first phase of a Tourism Node on the banks of the Jukskei River
was completed in August 2008. Funded by a private developer as part of
their social responsibility programme, the Node consists of a coffee
shop, with kitchen, and an area that can be used for entertainment.
The second phase, due to begin in September 2008, will incorporate ten
trading spaces for local craftspeople and a conference/trading centre,
with admin offices.
4. Auto Cluster
Since its inception in 2005, the Auto Cluster has trained over 1500
people in various aspects of motor vehicle maintenance and body work.
In an effort to formalise the industry in Alexandra, businesses are
being encouraged to get recognition of prior learning (RPL) and
further training to enhance their skills.
An exciting new development is the renovation of a building in
Marlboro South as an Auto Hub. The aim is to provide premises for
existing backyard businesses in Alexandra in one consolidated area.
Architects have finalised the drawings and a contractor is being
appointed. Equipment is being finalized including a spray booth, which
will also service other businesses in the area.
Six vehicle maintenance services will be available at the Auto Hub -
an upholsterer, two auto mechanics, two panel beaters and an
auto-electrician.
5. Construction Cluster
Initiated in 2005, the Construction Cluster has trained over 7000
people in various aspects of construction work. It has been extremely
gratifying to see an increasing number of woman getting involved in
this industry. Many of these people work as sub-contractors on ARP
projects, after which their businesses expand to encompass wider
areas.
The ARP, in partnership with Marathleng Training Providers, is
currently embarking on an Occupational Health and Safety training
programme to service the industry in terms of new government
regulations, which require safety officers to be present on all
construction sites from February 2009. There will be three levels of
accredited training, each with different responsibilities - business
owners, supervisors, and Occupational Health & Safety Officers.
In addition, the ARP has identified the tendering process for public
sector projects as one of the challenges facing emerging and small
contractors in Alexandra. A two-day workshop will be held in November
2008 to train these contractors on how to handle tenders. The first
day will deal with the technical side of government procurement, while
the second day will concentrate on the practical application of their
new knowledge.
6. Retail Cluster
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Address: |
372 Eastbank Ave |
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Email: |
lash.luhabe@yahoo.com
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Phone: |
011 882 1568
071 619 6102 |
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Manager: |
Lash Luhabe |
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The Retail Cluster was formed in 2004. An initial survey in Alex
resulted in a database of all retail and service businesses being
developed. The ARP responded to an obvious need for training in
business management and technical skills, and in partnership with the
Dept. of Labour and SETA, 350 people were trained. This training was
followed by a six-month mentorship programme.
In 2006, a need for funding was identified, which resulted in the
linking of these businesses with retail financial intermediaries such
as the Nation Trust and Umsobomvu.
In 2007 an umbrella body, The Alex Business Forum, was formed which
includes various associations:
• Alex Spaza Association
• Alex Hair & Beauty Association
• Alex Fruit & Veg Association
• Alex Caterer’s Association
• Alex Sewing Association
Current business support includes a series of workshops on
municipal by-laws to assist the businesses with formalization
and registration for the allocation of the new street stalls.
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Phone: |
011 531 1317 |
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Contact: |
Sammy Mamabolo |
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Alexandra Street Stalls
In an effort to regularise the 500-odd informal traders in Alexandra,
registration of all stallholders in Alexandra has been undertaken by
the LED Community Liaison Officers. Various areas have been identified
throughout Alex and designs for permanent stands are in their final
stages. Stallholders will be allocated their spot according to the
requirements of each area and proximity to their homes, to ensure a
good mix of products and to increase the earning potential of each
stall holder.
The Alexandra Hawkers Association and the Metro Trading Company,
from the City of Joburg are currently involved in a series of meetings
with the ARP to ensure that members fully understand the procedures.
7. Alexandra Military Veterans Business Programme
In July 2007, at the request of the Alexandra Renewal Project
(ARP), TBPA was asked to assist members of the Alexandra Ex-Combatants
Association to establish their own businesses.
The group underwent skills assessment and training provided by The
Business Place and Sandton-based legal firm, Jowell, Glyn and Marais (JGM),
with assistance from Standard Bank and others.
Conducting their own thorough market research the group selected
those industries where they can uniquely position themselves in the
market to gain the maximum competitive edge.
A building in Marlboro South that belongs to the ARP will be renovated
to house the coffin-making, tombstone-manufacturing and bead-working
businesses that the ex-combatants have begun.
8. LED Nodes
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Phone: |
011 531 1317 |
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Contact: |
Colin Nyathi |
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The ARP’s Community Liaison Officers (CLO’s) have identified
parcels of vacant land where LED nodes could be created. These nodes
will be able to house small and micro businesses that could service
both the local community as well as the Tourism industry. The ARP will
fence off the sites and ask for proposals from the private sector.
They will be developed on a 9.5 year lease with the option to either
renew or purchase the land.
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