6.3 Supporting institutions
6.3.3 Sustainable growth
85 Pietermaritzburg Chamber of Business also mentioned that they encounter no challenges at start- up level. Therefore, from the perspective of PCB, there are no challenges to address (Intervener 2e, in-depth interview, 2015). This claim can be compared with the SMME data. Renawat and Tiwari (2009:16), declared that, mostly at start-up stage, businesses are faced with numerous challenges, which call for attention by supporting institutions.
86 production which satisfies its customers and increases on its profit margin. Also businesses use technology to reduce costs of operation and improve on the quality of service and products.
The LEAP project under the Ministry also provides 50 million partial guarantees which assists MSMEs that do not have collateral. The Ministry agreed that MSMEs are aware of the development programmes designed for their growth (Intervener 1d, in-depth interview, 2015).
The last interviewee, at PSFL said, its members equip each other as to how to improve their businesses. This institution at its advocacy level, has proposed to the policy makers that the government also fund MSMEs in order for them to grow. Currently, MSMEs do depend on commercial banks alone for funding. Members of PSFL are aware of the initiatives this institution is taking, as they are always updated during their meetings (Intervener 1e, in-depth interview, 2015).
On the other hand, in Pietermaritzburg, a participant from SEDA gave the following response:
“We assist already existing SMMEs by enhancing their competitiveness. To help SMMEs to grow, SEDA also intervene by conducting an assessment after six months of training (first intervention). SEDA looks for the gaps if there is any, and suggests what the entrepreneurs could do. For instance, if the issue is the expansion of the business, SEDA links the entrepreneur with the funding institution. Some SMMEs are aware of the development programmes designed for their growth, some are not”
(Intervener 2, in-depth interview, 2015).
To assist in business growth, the Municipality creates business linkages between SMMEs and relevant institutions. For instance, institutions that assist SMMEs with business advisory services and mentoring and coaching programmes are connected with SMMEs to assist them grow. The Municipality conducts outreach programmes so as to create awareness of their services to the public, therefore, SMMEs are aware of the development programmes offered (Intervener 2a, in- depth interview, 2015).
Absa encourages businesses that want to go to the next level, to study their current situation and helps them to plan their future. This strategy assists SMMEs to grow. Absa confirmed that SMMEs are aware of the development programmes designed for their growth (Intervener 2b, in- depth interview, 2015). The DEDTEA uses four pillars to help SMMEs to grow. These are:
capacity building, for instance, DEDTEA links SMMEs with SEDA for management training, assistance with access to markets, district company registration and assistance to access to finance. SMMEs are aware of the development programmes available, as DEDTEA holds
87 workshops giving information on the programmes offered (these workshops are called information days) (Intervener 2c, in-depth interview, 2015).
The Business Support Centre links SMMEs with experts as mentioned earlier. Growth for business is done through business linkages, which assists businesses with growing their market and generating more income, which eventually enables them to establish more businesses.
Growth for individual entrepreneurs is done through mentoring, coaching and training, which BSC does not do. Members for BSC are aware of the programmes designed for their growth, however, for other SMMEs, BSC is not sure whether they are aware of the programmes designed for small business growth or not (Intervener 2d, in-depth interview, 2015). The Pietermaritzburg Chamber of Business helps SMMEs to grow through providing them with networking support and training opportunities. Networking support assists SMMEs with learning opportunities from their counterparts. The Chamber agrees that most of the SMMEs are aware of the development programmes designed for their growth (Intervener 2e, in-depth interview, 2015).
6.3.3.2 Assistance to sustainability and sustainability programmes
This sub-section answers research question 3 of this study. In Maseru, for MSMEs to be sustainable, participants who were interviewed from the supporting institution indicated that:
“BEDCO offers networking support so that MSMEs are not alone. Mentors that are experienced in business are invited to assist MSMEs. As mentioned earlier, these mentors work together with MSMEs and BEDCO to ensure the sustainability of MSMEs. We also arrange trade fares for businesses to learn from other entrepreneurs with expertise. However, not all of the entrepreneurs are aware of the development programmes designed for their sustainability. Therefore, we are still launching campaigns so that people are made aware” (Intervener 1, in-depth interview, 2015).
It has been realised by SMME Support Network-Lesotho that due to the nature of the sector, entrepreneurs are forced into the business world instead of being attracted to it. More often than not, entrepreneurs establish businesses to sustain their lives (meaning for survival). Money comes in and it is spent on other things that are not business related. For this reason, SMME Support Network-Lesotho offers advanced training programmes to existing businesses to assist them to be sustainable. However, MSMEs are not aware of the development programmes designed for their sustainability (Intervener 1a, in-depth interview, 2015).
88 The Lesotho Post Bank provides additional financial assistance to entrepreneurs who come and ask for assistance, and continues to monitor MSMEs to help them to be sustainable. The Lesotho Post Bank confirms that in Maseru, MSMEs are all aware of the development programmes designed for their sustainability, however, in rural areas, it is still a challenge (Intervener 1b, in- depth interview, 2015). The Lesotho Chamber of Commerce and Industry has networked with various supporting institutions to assist MSMEs to be sustainable. That is, where the Chamber is unable to assist MSMEs, they refer them to the relevant institutions that the Chamber is in relationships with. The Chamber declared that its members are aware of the development programmes designed for their sustainability, and it is easy to refer them to the relevant institutions due to relationships the Chamber has with such institutions (Intervener 1c, in-depth interview, 2015).
The modern technology provided by the UNIDO project under the MTICM, also assists MSMEs to be sustainable, and MSMEs are already aware of this (Intervener 1d, in-depth interview, 2015).
The Private Sector Foundation of Lesotho is in the process of capacitating MSMEs to be sustainable, and MSMEs are aware of this (Intervener 1e, in-depth interview, 2015).
On the other hand, in Pietermaritzburg, one of the participants who were interviewed at a supporting institution said:
“Small Enterprise Development Agency offers relevant training to SMMEs, links them with necessary organisations and frequently makes follow-up. All this is done to help SMMEs to be sustainable. Entrepreneurs are aware of the development programmes SEDA has designed for their sustainability, as SEDA mostly runs workshops and advertises provided services on popular newspapers” (Intervener 2, in-depth interview, 2015).
The Municipality links entrepreneurs with the relevant stakeholders with the aim of helping SMMEs to be sustainable. These stakeholders hold workshops for the SMMEs and give them the background and challenges that entrepreneurs may encounter when running their businesses. The Municipality proclaims that SMMEs are aware of the programmes designed to help them to be sustainable (Intervener 2a, in-depth interview, 2015).
Absa offers training and finances for SMMEs to be sustainable. Training and finances that are offered with less restrictions enable SMMEs to cope with the rapidly changing business environment. Absa announced that SMMEs even return to Absa for more assistance and clarity.
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).