6.3 Supporting institutions
6.3.4 Relevant training
89 According to Absa, SMMEs are aware of the development programme designed for their sustainability (Intervener 2b, in-depth interview, 2015). The Department of Economic Development normally invites experts in sustainability areas to train SMMEs. Therefore, SMMEs are aware of the development programmes designed for their sustainability (Intervener 2c, in- depth interview, 2015).
Through linking SMMEs with well established businesses, BSC helps SMMEs to be sustainable.
In terms of awareness, SMMEs can tell whether they are aware of the programmes BSC offers for their sustainability or not (Intervener 2d, in-depth interview, 2015). The Pietermaritzburg Chamber of Business posits that linking or networking SMMEs with the entrepreneurs who have been long in the field, helps SMMEs to be sustainable, as they learn from one another. Small businesses are aware of the development programmes PCB designed for their sustainability (Intervener 2e, in-depth interview, 2015).
90 Commerce and Industry does not provide training for MSMEs but links MSMEs with relevant training institutions (Intervener 1c, in-depth interview, 2015). The Ministry of Trade does not offer training as such, however, MTICM facilitates by connecting MSMEs with relevant supporting institutions with expertise (Intervener 1d, in-depth interview, 2015). Members of PSFL provide business management training to their fellow MSMEs, using start and improve your business International Labour Organisation (ILO) manuals. However, according to the interviewee at PSFL, in Lesotho the training is tailor-made not like in SA where they provide specialised skills/training (Intervener 1e, in-depth interview, 2015).
On the other hand, in Pietermaritzburg, SEDA said each phase is separately dealt with.
“Basic training is provided at the start-up phase, this includes marketing skills and financial management. At the growth phase, each entrepreneur is assessed, and if there is a gap, then entrepreneurs are trained according to their needs” (Intervener 2, in-depth interview, 2015).
While the Municipality purported that training is not done by them per se, however, the Municipality links the SMMEs with relevant institutions or stakeholders to equip SMMEs’
owners with necessary skills at both start-up and growth phases. To make sure that the training provided is relevant, SMMEs are grouped into start-up and growth phases, so that each group’s needs are met (Intervener 2a, in-depth interview, 2015).
Absa trains SMMEs to compete and be ready for the normal banking world. This assists small businesses to contribute to the country’s economy. Training at the start-up level is more on how to start a business, while the one for already existing businesses is on how to improve or promote their businesses to the next level. Absa does not encourage one-size-fits-all training and encourages specific training, for instance, clients with bottle stores are grouped together and trained on how to run a tavern (Intervener 2b, in-depth interview, 2015).
DEDTEA holds pre-finance training for SMMEs at the start-up and growth phases. For SMMEs to attend training, they have to go through a selection process that DEDTEA applies. After following the selection criteria, DEDTEA decides on who qualifies for training and the type of training needed (Intervener 2c, in-depth interview, 2015). The role BSC plays in SMMEs development was discussed in the previous section. It is clearly stated that BSC does not provide training, therefore, section D is not applicable (Intervener 2d, in-depth interview, 2015). The Pietermaritzburg Chamber of Business provides all types of training needed by SMMEs. If an
91 SMME employs a receptionist for instance, PCB provides the employee with the necessary skills on how to answer the phone, and so on (Intervener 2e, in-depth interview, 2015).
6.3.4.2 Training programmes and trained trainers
When responding to research question 4, one of the interviewees in Maseru said:
“Basotho Enterprise Development Corporation provides pre-start-up and post- start-up training programmes, using incubation model that matches the stage that the venture is in. We have in-house trainers, and trained consultants from outside to manage the diversity of our clients” (Intervener 1, in-depth interview, 2015).
On the other hand, SMME Support Network-Lesotho provides pre-start-up to some extent (entrepreneurship), and post-start-up training programmes (management) is provided fully to already existing businesses. The interviewee demonstrated that trainers from SMME Support Network-Lesotho are well trained and are flexible. For example, where trainers have to conduct training in home language (Sesotho), they do so (Intervener 1a, in-depth interview, 2015).
The Lesotho Post Bank does not offer training. The marketing section advertises services provided by the Lesotho Post Bank to MSMEs, and they equip SMMEs with some necessary information. MSMEs are guided with necessary information by trained Lesotho Post Bank staff (Intervener 1b, in-depth interview, 2015). The Chamber does not offer training however, the members that are already in business, need post-establishment training programmes, and they are normally referred to the training institutions with expertise (Intervener 1c, in-depth interview, 2015).
The Ministry of Trade as already mentioned, does not offer training programmes but links the MSMEs with the relevant supporting institutions which provide pre and post training. The institutions, to which MSMEs are referred, are normally well trained (Intervener 1d, in-depth interview, 2015). At PSFL, pre-and-post training is provided, as ILO manuals provide lessons on how to start and improve your business. These trainers are master trainers who even use a Sesotho edition where necessary to manage the diversity of PSFL clients (Intervener 1e, in-depth interview, 2015).
On the other hand, in Pietermaritzburg, SEDA offers both pre and post-establishment training.
92
“We offer both pre-establishment and post-establishment training programmes.
Internal trainers at SEDA are well trained, and if there is a need, SEDA outsource trainers who will provide relevant training” (Intervener 2, in-depth interview, 2015).
The Municipality’s clients are provided with both pre and post establishment training programmes, by the supporting institutions with which the Municipality links SMMEs. The Municipality makes sure that SMMEs are linked with well-trained established stakeholders to train the SMMEs (Intervener 1a, in-depth interview, 2015).
Absa links SMMEs with well-trained trainers who provide such SMMEs with both pre and post- establishment training (Intervener 2b, in-depth interview, 2015). In addition, DEDTEA invites SEDA to offer the pre and post-establishment training programmes. These outsourced facilitators are well trained to focus on the DEDTEA target market (Intervener 2c, in-depth interview, 2015).
Furthermore, BSC does not provide training, therefore, section D is not applicable. The PCB refers SMMEs to SEDA concerning the pre-establishment training (Intervener 2d, in-depth interview, 2015). The Chamber only does the post-establishment training as it deals with already existing businesses. The interviewee proved that PCB trainers are well trained (Intervener 2e, in- depth interview, 2015).