4.5. Objective Three: to analyze the SMSEs’ relevant stakeholders and their information needs
4.5.2. Level of stakeholders' involvement
The level of stakeholders’ involvement is underpinned by their respective interests, contributions, and influence in the social enterprises.
158 4.5.2.1. Stakeholder interests
Stakeholders' interests are determined by their needs and preferences regarding the activities and outcomes of the social enterprises' projects.
For instance, the involvement of a traditional authority in Social Enterprise 1 is driven by their need and preference for the “creation of jobs, development of the area”, by assisting the community to become sustainable. Similarly, eThekwini Municipality’s involvement in this enterprise is underpinned by government’s interest in environmental sustainability. The enterprise’s mandate is aligned with this interest. One of its mandates is to promote “innovative and water-saving techniques”; environmental welfare in terms of sustainable carbon reduction;
and food production, consistent with eThekwini Municipality’s interest in meeting sustainable development goals (SDGs). The municipality is also involved in Social Enterprise 6 because of its interest in developing “small business in the maritime sector,” which can create employment, a top government priority in South Africa.
4.5.2.2. Stakeholder contribution and influence
Participating social enterprises explained that the contributions their enterprises receive from their stakeholders generally revolves around critical issues such as the provision of land and venues;
technological development; project funding; project implementation; monitoring and evaluation;
financial sustainability; assistance with networking; and a nomination for participation in a small business development programme. For instance,
“We deal with eThekwini Maritime Cluster (EMC), based on the training provided or finance, market, and technical matters of the project and possible outcomes resulting from the project”
(Social Enterprise 6 Interview Respondent).
In a word, social enterprises deal differently with stakeholders in public and private markets. Table 4.9 summarises stakeholder involvement by considering their role or contribution, and level of influence, in each enterprise. The contribution of stakeholders determines their level of influence in the enterprises.
159 Table 4.9: Stakeholder Contribution and Influence
Enterprise Stakeholder contribution Stakeholder
Influence Social Enterprise 1 Provide farming land, help to achieve social
objectives, and help to develop technology to build hydroponics systems.
High
Social Enterprise 2 Assist in getting venues to provide training and host events and inform the community about the activities.
High
Social Enterprise 3 Funders of each project deliver project guidelines, provide feedback, and influence the selection of areas and candidates.
High
Social Enterprise 4 Assist in providing venues for training and manufacturing, assist in making the enterprise financially sustainable, supply quality materials for production.
High
Social Enterprise 5 Have been supportive and facilitated business (like assisting in networks, assisting in local markets).
High
Social Enterprise 6 Assist in the development, monitoring, and implementation of the operational plan, nominate the enterprise for the small business programme
High
Social Enterprise 7 Low level of involvement with the enterprise. Low
Table 4.9 shows that most participants indicated that stakeholders exercise considerable influence in their enterprises.
“The corporate clients are quite influential because they fund our projects. For instance, Mr. Price has three or four people involved in the project on a day-to-day basis. On the other hand, other stakeholders are very hands-off (not mainly engaged) but, remarkably, guidelines when delivering what we do.” (Social Enterprise 3 Interview Respondent)
160
“Financial and non-financial stakeholders play a significant role and involvement with our enterprise. For instance, we wouldn’t have a place to train and manufacture our products without the rehab centre. Additionally, companies that provide donations also play a crucial role in sustainability and running enterprises. Furthermore, our suppliers involve our enterprise by supplying quality materials to produce our products.” (Social Enterprise 4 Interview Respondent) The above quotations highlight that participant social enterprises are aware of the high level of involvement in, and influence over, their enterprises by stakeholders.
One social enterprise participant stated that the stakeholders' operational influence affects the enterprise's success and sustainability.
“The suppliers are too far, so it’s the cost to acquire the raw material required to manufacture products and pieces of equipment. Additionally, the government influences our pricing and production of the amount and quantity. Furthermore, the lack of accreditation from the government to perform workshops for craft skills and training influences the value of enterprise activity and how the members felt begging and requesting than running an SE. Government accreditation cost around R250,000, which is very expensive for the enterprise.” (Social Enterprise 5 Interview Respondent)
One enterprise (Social Enterprise 5) further indicated that the low contribution of stakeholders to the operation of the enterprise resulted in less support and assistance than had been expected.
“The government lacks an understanding of what we are doing. It does not consider preserving cultural production of leather for the future generation on how things started and how people used to do in the past without hazardous production is crucial. This creates a massive gap in the type of establishment we would like for a leather cultural tuning process and the number of jobs that can be made.” (Social Enterprise 5 Interview Respondent)
Only one enterprise (Social Enterprise 7) indicated that their stakeholders’ involvement in supporting the enterprise’s operations was low, as was their influence in the enterprise. The enterprise believes that, due to low support and involvement by stakeholders, it has not yet reached its full potential to “become a professional commercial farmer.” Instead, the enterprise sees itself as “ten times” less efficient than it could be.
161 Therefore, the perceived influence of stakeholders is in line with their perceived contribution to the enterprises. However, it is axiomatic to believe that all stakeholders associated with a given enterprise may not necessarily have the same level of influence in that enterprise. There is insufficient evidence for whether this is indeed the case. For example, funders may not have the same level of influence as suppliers and non-paying beneficiaries. However, it is obvious that each enterprise that reported receiving significant support from their stakeholders also indicated that the stakeholders had a significant influence on their operations.