Our combined focus should be on job creation and enterprise development in the informal sector, as developing these areas will impact positively on poverty alleviation, socio economic development and economic growth.

A growing concern for many South Africans is our expanding population, many of whom are struggling to make ends meet and provide for their families. The gap between rich and poor has widened in recent years, and with our unemployment levels rising, the government seems unable to turn the tide on this bleak situation.

According to Statistics South Africa, our population has increased from the 2001 census count of 44.8-million to an estimated 50.5-million in 2011. In addition, the number of people in the labour force increased by 181 000 between the first and second quarter of this year alone, while employment remained virtually unchanged during the same period.  One positive feature of our employment figures however, comes from the informal sector which saw an increase of 34 000 jobs in the second quarter.

From this then, it would appear that our combined focus should be on job creation and enterprise development in the informal sector, as developing these areas will impact positively on poverty alleviation, socio economic development and economic growth.

Our research has found that developing entrepreneurs will be the best way to reduce the levels of poverty seen in the country. For every person assisted on the road to entrepreneurship, seven others benefit indirectly – through food on the table, paid school fees, new shoes, books, knowledge and the like. This not only benefits these individuals, but also the country through a reduction in social grants, an increase in employment and a lowering in crime and poverty levels. For those South African entrepreneurs who start their entrepreneurial careers by creating a ‘home-based enterprise’ (HBE), they have been proven to contribute R6 billion to the economy annually. For us, this is the bottom line when it comes to developing entrepreneurs.
 
Unfortunately South Africa has one of the highest failure rates of business start ups in the world, which is why investment and support of these businesses is critical, such as through business incubator programmes or solid mentorship programmes. We also have one of the lowest new business start-up rates in the world, so the importance of encouraging people to take the leap and start their own venture cannot be underestimated.
 
Having worked with previously disadvantaged South Africans for 10 years, thanks in large part to our corporate funders, we have seen over 800 would-be entrepreneurs come through our doors, 76% of which still have viable businesses. Our success in providing assistance for these entrepreneurs has now enabled us to plan for the creation of a Hope Hub, which will be launched in 2012 and will offer entrepreneurs individual office space, access to specialist industrial equipment, a computer centre, and support services such as mentoring and accessing markets.
 
From starting out in a garage 10 years ago, we have been fortunate to be able to equip hard-working South Africans with skills to create sustainable businesses and uplift their communities. To be able to make a positive impact on people’s lives, particularly when so many live below the poverty line, has been extremely satisfying.

Liz is the founder and CEO of The Hope Factory. The Hope Factory is an established Enterprise Development company that creates, develops, equips and supports previously disadvantaged South Africans to establish and grow businesses. From founding The Hope Factory in humble beginnings in Cape Town 2001, Liz has grown it into a sustainable and successful NGO which has national representation and is one of the leading enterprise development organizations in the country. 

Liz is also the Project Director of Enterprise Development at The South African Institute for Chartered Accountants (SAICA), and a leader and advisor in this area of thought leadership.

Elizabeth Zambonini  may be contacted on 011 479 0615 / email : This e-mail address is being protected from spambots. You need JavaScript enabled to view it  / Website: www.thehopefactory.co.za

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