Currently in South Africa, Enterprise development programs continue to be of outmost importance. Given the barriers to entry which have traditionally existed in the South African economy, informal businesses tend to start and remain at the same level of activity. But not every individual at this "entry" level is or wants to be an entrepreneur.
These individuals are also normally in the business by necessity rather than choice. The controlling situation in the disadvantaged communities is gradually being reduced providing greater choices to people within the communities.
GUD Filters and NGK Sparkplugs have formulated a strategy that will assist Informal Service Centers from previously disadvantaged communities to uplift their businesses, leading to the establishment of a BBBE Enterprise Development Filpro (Pty) Limited, which aims to uplift informal sector mechanics within the automotive industry.
A FOUR Step Intervention Approach used to develop a framework for the Enterprise Development Programme, with constant monitoring throughout.
Business Growth Sustainability
Skills and Development
The targeted beneficiaries of this program are the ISCs and non-franchised PSCs within disadvantaged communities.
Category A: Informal Service Centres without any established structures – Service Centres operated from the street corner, where the owner/operator does not have registered business and no premises/facility
Category B: Informal Service Centres with partially established structures – Service Centres operated from the homes or from a building, where the owner/operator most likely does not have a registered business but operates from home or a backyard facility with limited resources and tooling.
Category C: Informal Service Centres with established structures but in need of intervention/assistance – Service Centre operated from a building/facility where the owner/operator has a registered business with limited resources and tooling.
• Enterprise development is an important tool and essential element to economic growth, it invests time, knowledge and capital to help Small enterprises establish
• It expands and/ or improves businesses, including empowering modest income generating informal activities to grow and contribute to the local economy.
• It is a tool for alleviating poverty
• Could lead to increasing capacity of non-franchised Parts Sales Centres within disadvantaged communities, creating opportunities for them to improve their profitability and sustainability.