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Growing value in Mpumalanga throughinvestment in SMMEs

A profile of the SMME programme in partnership with theMpumalanga Provincial Government and SABS SMME Division

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“In South Africa, it is estimated that SMEs make up 90%

of formal businesses, provide employment to about 60% of the labour force and

contribute roughly 34% of GDP.”

SME South Africa, 27 June 2018 on World SME Day

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1. Abbreviations 4

2. Introduction 5

3. Overview – DEDT 6

4. Overview - SABS 9

5. Profilesofsmallbusinesses 12

5.1.MbusiWomenandPlantHire 12

5.2.Shamila 14

5.3.HonestyTrade 16

5.4. Mr Brick 18

5.5. Inhlaba Bricks 19

5.6. Mpuluzana 21

6. Conclusion 23

Contents

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MEGAMpumalangaEconomicGrowthAgency

SABSSouth African Bureau of Standards

SEDASmallEnterpriseDevelopmentAgency

SMMESmall,mediumandmicroenterprises

The dtiTheDepartmentoftradeandindustry

DEDTDepartmentofEconomicDevelopmentandTourism

1. Abbreviations

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2. Introduction

Small, medium and micro enterprises(SMMEs) are the catalyst to achievingeconomic growth and developmentin South Africa. In 2014, the pace of developing SMMEs was acceleratedthrough theestablishmentof theMinistryofSmallBusinessDevelopment.

The Ministry provides support in termsof creating an enabling ecosystem forSMMEs and Co-operatives in terms ofpolicies, access to products and services, financial assistance, education andtrainingtoensurethatthesectorreceivesthe capacitation required to create jobs andspurgrowth.

Partnershipthatisproducingsuccessfuloutcomes

InMpumalangatheprovincialDepartmentof Economic Development and Tourism(DEDT) is responsible for driving alleconomicdevelopmentandplanningintheprovince. SMMEs and co-operatives fall within the scope of DEDT. In 2014, DEDT – in partnership with the MpumalangaEconomic Growth Agency (MEGA) andthe South African Bureau of Standards (SABS) conceptualised and developed - the Mpumalanga SMME developmentprogramme which aimed to improve thegovernance within SMMEs to ensurethat the products and services produced by SMMEs would be of an international quality.

Black owned SMMEs were invited to participate in the programme to achievesystem and product certification,funded by DEDT. SABS would be the implementationpartnertoensurethatthecompanieswerebroughtuptocertificationstandards. SMMEs were selected based onthenatureoftheirwork,alignedtotheconstruction, infrastructure and nutrition goalsoftheprovince.MostoftheSMMEsselected to participate in the programmewere of varying levels of operations,rangingfromstart-ups,toco-operativestoestablished businesses.

Sustainabledevelopmentof SMMEs

This publication highlights the valueof certification on the businesses; thechallengesexperiencedingettingSMMEstoimplementqualitysystemsandachieveproduct certification; and the value ofinvestingthetimeandefforttotrulydevelopbusinesses into successful enterprises. A briefoverviewofsomeoftheparticipatingSMMEs has been presented to showcase the successes of the DEDT/SABS SMME programmeinMpumalanga.

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3. Overview

TheDepartmentofEconomicDevelopmentandTourism(DEDT),oftheMpumalangaprovincial government is making stridesin ensuring that goods and servicesoffered by SMMEs can be procured. The provinceaimstointegrateSMMEsintotheformal economy and for the municipalityto use their products and services. The focusisondevelopingSMMEslocatedintownshipsandinpreviouslydisadvantagedareas, to capacitate them to enableequal participation in formal businessopportunities. In order for SMMEs and co-operatives to be considered as suppliers, they need to ensure that they have the relevant documentation, certification andassurance that they are able to deliver whattheypromise.

Patrick KhumaloDirector:EnterpriseDevelopmentDEDTMpumalangaProvincialGovernment

Solly S MhauleDeputyDirector:EnterpriseDevelopmentDEDTEnterpriseDevelopmentUnit

ThechallengeswithSMMEsinpreviouslymarginalised areas is that they are invarying stages of development. Whilesome had offices to operate from, withemployees there were others whowere still experiencing challenges withtechnologyandofficespace.Opportunitiesto participate in projects were lost to some,astheycouldnotdemonstratetherequiredcertificatesandsystemstoverifytheir work and the quality of projects. The Mpumalanga provincial government wasdetermined to only procure high qualityproducts and to ensure that suppliers met theminimumrequirements todeliverprofessional services.

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Solly S MhauleDeputyDirector:EnterpriseDevelopmentDEDTEnterpriseDevelopmentUnit

DevelopingacomprehensiveprogrammeforSMMEgrowth

It was incumbent on DEDT to develop aprogramme, with the various agencies ofgovernment to ensure that a sustainablesolution could be realised. “Some of thegreatest challenges in procuring servicesand products from SMMEs and co-operativeswas their lack ofmanagementsystems and no assurance of the qualityoftheservicesandproductsbeingoffered.While DEDT is committed to growing theeconomy, it also has a responsibility toensure equal access to the opportunities withinMpumalanga.TheDepartmentneeded to find a programme that wouldfasttrackthedevelopmentoftheSMMEs,”explains Patrick Khumalo, Director ofEnterpriseDevelopmentatDEDT.

DEDT could not manage the task ofdeveloping SMMEs by themselves andlookedtootherstateagenciestoassistwithdevelopingaprogramme.Theprogrammeneededtoaddressfundamentalchallengesfacing SMMEs which was financial aid,handon support to developmanagementsystemsandaccesstotrainingorexpertisetoassistthemingrowingtheirbusiness.

PartneringwithSABSSMME

The SABS SMME team, with itsexperienceofdevelopingSMMEstoachieveinternationally recognised managementsystems and product certification wasthe ideal partner to accelerate the developmentof theSMMEs, tomeet thequalitymeasuresneededbytheprovincialgovernmentinMpumalanga.

Other partners such as theMpumalangaEconomicGrowthAgency(MEGA),whichis the financial and investment arm ofDEDT;theSmallEnterpriseDevelopmentAgency(SEDA),theDepartmentofPublicWorks (DPW) and the Department ofTradeandIndustry(thedti)providedmuchneeded services, finance and access toequipment – dependent on the uniquesituation of the SMME.

Since the programme with SABS andDEDTbeganin2014,whereSABSwoulddevelop and implement managementsystems for identified SMMEs, therehavebeensuccessstoriesofgovernmentprocuringgoodsandservices from theseSMMEs. “While the programme is stillin its infancystage,withmanyhurdles toovercome,wearepleased that thevalueof good governance and certification iscreating immediate financial benefit tothebeneficiaries,whichinturnbooststheeconomyofMpumalanga,”saysKhumalo.

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OversightofSMMEdevelopment

Deputy Director, Solly Mhaule is responsible for the oversight of the SMMEs to ensurethat the development and progress of thecompanies is on track and to facilitate therelevant assistance to alleviate operational or market challenges. “With a focus onprovincial construction projects, SMMEs related to that sector were chosen as beneficiaries for the first phase of theDEDT programme. One of the goals oftheprovince is toensure thatcommunitiesdirectly impacted by infrastructuredevelopmentarealsorecipientsofeconomicgain andSMMEswithin a 15km radius ofconstruction sites were earmarked to bepartofthecertificationprogramme.SMMEsthat manufacture and supply constructionmaterials for government infrastructureprogrammes such as human settlements,roads, schools, hospitals and generalmaintenance of public infrastructure wereearmarked for development, in the initialrolloutoftheprogramme.

Success stories

This publication is intended to showcase thesuccessesoftheSMMEsinachievingcertification, the benefits in terms of realgrowthtothecompanyandtodemonstratethecommitmentofgovernmenttosupportandinvestinSMMEs.DEDTencouragesall SMMEs to get certified, to ensurethat theyhave the relevantcertificates toprovide assurance of quality products and management systems. Opportunities inMpumalanga are growing and SMMEswhowanttobeapartofit,needtomakeevery effort to ensure that they are ready to participate.

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The South African Bureau of Standards (SABS)develops,maintainsandpromotesnational standards to help companiesbecome more competitive, supportthe development of the South Africaneconomy, protect consumers throughensuring safe products via conformancetestingandensuringthattheSouthAfricanvoice is represented at international standardisation bodies. SABS is integralin thefightagainstpovertyand thedrivetowards inclusive growth in the SouthAfricaneconomy,bySouthAfricans.

In our seven decades of existence,SABS is recognised and acclaimed forintegrity, excellence and unwaveringin its promise to deliver a quality of lifethat all South Africans can rely on. With our deep understanding of the SouthAfrican context, the challenges thatsmall businesses face and the qualityrequirements thatclients require–SABS

hasdevelopedseveralbusinessmodelstoassist government to capacitate SMMEsto ensure that previously marginalisedorganisations become integrated intomainstreameconomicactivities.

QualitysystemsprovideassuranceofgovernancewithinanSMME

SMMEs often do not have the required resources to focusonensuring that theyhave quality management systems inplace, such as ISO 9001 (also known as SANS 9001) or product assurance that is required by suppliers and customers forquality of production and manufacturingstandards,thuslosingmanyopportunitiesto do business. In Mpumalanga, theprovincial government has recognisedthe need to ensure that SMMEs have systemsandproductcertificationinplaceand have partnered with the SABS SMME departmenttoworkcloselywithidentifiedSMMEsandbringthemuptocertificationstandard.

ISO9001isaninternationallyrecognisedquality management system, used todemonstrate the ability to consistentlyprovide products and services that meetcustomer and regulatory requirements.SouthAfrica,throughSABShaveadoptedthe standard and is it known as SANS 9001. An organisation that is certifiedwith SABS ISO 9001 provides assurance that a company has been independentlyverified, at regular intervals, to have thecompetence to retain the certification.Certificationwillensurethatorganisationshave sound governance processes,

4. Overview - SABS

Dumisani MngadiHead:SABSSMMEDepartment

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have quality assurance and customersatisfaction as priorities, have revenue and growth targets, relevant regulatory andpoliciesinplaceaswellastocommunicateandmanageprocessesandpeoplewell.

Hands-onconsultantservices

SABS is an accredited body that offers ISO 9001 training and certification services.The SMME department operates asa development and training businessdevelopment service which involvesan extensive consultation process withSMMEstoensurethattheyarecertificationready. The SMME consultants becomeintegrally involved with the business tounderstand the context of the business,its operations and assists to re-engineerprocesses and solve product issues. The SMMEs profiled in this book attest to theinvaluableexpertiseandeffortinvestedbythe SABS team and are unanimous thatachievingcertificationwouldnothavebeenpossibleintheshortspaceoftime,withoutthe assistance of the team. SMMEs arealsounanimous in the immediatebenefitsexperiencedbybecomingSABSISO9001certified and are committed to improvingand retaining their quality managementsystems.

It is important to bear in mind that theSMMEdepartmentisindependentfromthecertification division,with a clearChinesewall that separates the functions. When theSMMEisreadytoapplyforcertification,an independent auditor conducts the audits and the SMME consultants recuse themselvesfromthecertificationprocess.

The SABS SMME department providesservicesnationally,howevertheprogrammefor DEDT in Mpumalanga was especiallydeveloped to meet the provincial goals.SMMEs in the construction industry were selectedandamixofqualitymanagementand product certification systems wereintroduced. The programme, the first ofits kind involved the input, collaboration and commitment of various provincialgovernmententitiesandwearepleasedwiththe overall rate of success. The success stories by some of the more establishedSMMEs are testament to the value ofcertification on the increased revenueof business and we look forward to a continuedpartnershipwiththeDepartmentofSmallBusinessDevelopment.

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Theprocessflowbelow,setsoutthewayinwhichtheMpumalangaprovincialdepartmentselectedtheSMMEsthatparticipatedintheprogrammeandtheSABSinvolvementindevelopingtheSMME.

SMMEapplies to be

part of the

Mpumalanga

programme

SABS

works closely

withSMMEstoget

themreadyfor

certification

SMME

achievescertification

status and is responsible

formaintainingit

MpumalangaDEDT

evaluates applications and

selects SMMEs.

SABS,MegaandEnterprise

DevelopmentDepartment

beginworkwiththe

SMME

CertificationstatusisdependentonthecommitmentoftheSMMEtoachieveit.SomeSMMEsachieveditinafewmonth,whileotherscantake up to two years.

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MbusiWomen and Plant Hire is a smallconstructioncompanybasedinNelspruit.TheSMMEstarted in2002,asawomanowned and run company to participatein the development and constructionopportunities in the province. Their focus was on construction opportunities, such as thebuildingofroadsandtherenovationsof schools.

EthelShongwe,wasacutelyawareofthelackofwomenintheindustryanddecidedshecouldfillthegapinthemarket.Relyingon her entrepreneurial gut, support fromher family and the technical expertise ofhermentors,Ethelquitherjobasateacherand began a new career. Within a fewweeks of starting her company, shewasable to procure contracts for renovation and maintenance work, as well as roadconstruction.

5. Profilesofsmallbusinesses

5.1. MbusiWomenandPlantHire

EthelShongwe

As a small business, Ethel would hirethe required technical skills for the duration of the contract, including qualitymanagement and assurance. Over theyears,withtheincreasingcostsofleasingconstruction equipment, Ethel realisedthat itwouldmakemorebusiness sensetobuyherownequipmentandleasethemwhenshedidn’tneedthem.Thisdecisionhelpedhertodiversifyherincomestreamwhichwaswelcome in themonthswhenthere was no construction projects.

Asthecompanybegantogrowandsolicitnon-government work, Ethel realised theneed for a quality management system.Clients would request the assurance of ISO 9001 or a similar managementsystem.MbusiWomenandPlantHirelosta fewcontractsasa resultofnothavingtherequisitemanagementsystems.

While the value of implementing amanagement systemwas realised, Etheldid not have the available cash flow,time or relevant resources to assist inorganisingandstructuringasystem.HerownresearchintoimplementingISO9001left her feeling overwhelmed in terms ofthepaperworkandsystemsrequired. In 2014, when the Mpumalanga DEDTadvertised the programme to assistSMMEswithachievingqualityandproductmanagement certification, Ethel seizedtheopportunity. Whenhercompanywas

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selected as a participant, she appointed her son, Milindzisi as the quality and operations manager and tasked himwith the implementation of the system.They were grateful that there would beexternalhands-onsupporttohelpwiththeimplementation and development of thesystem.

TheSABSassignedconsultantdevelopedthe quality system with them, providedassistance to write the relevant processes, controls and procedures and ensured that there was operational compliance to getthem certification ready. It is importantto bear in mind that the SABS SMMEconsultant works independently from theSABSCertificationDivision,toensurethatthere is no conflict of interest that mayariseduringthecertificationprocess.

MilindzisiShongwe

Milindzisi Shongwe shows off the filingsystem which was as a result of beingtrainedonimplementingISO9001:2015.“Wehadtostart fromscratch in termsofdocumentingourcompany’svision,plans,

resourceplans,allourprocesses,includinga customer satisfaction system”, saysMilindzisi.Organisationofthecompany’sresourcesandimprovedcustomerservicehasbeenthemostimmediatebenefitsthatMbusiWomenandPlantHireexperienced.

MbusiWomenandPlantHirehavebeensuccessfullyauditedbySABSCertificationand await being awarded their SABSISO 9001:2015 certificate. “I thoughtthat the company was doing well, wewere organised and efficient – however,during the process of implementing ISO9001,Iwassurprisedathowmanythingswe had taken for granted. Already, thecertificate to provide the assurance thatthe company is well managed and hasquality management systems in place isbringinganincreasedcustomerbaseandIamcommittedtoensurethatwemaintaincertificationstatus”saysEthel.

The Shongwe family have been able totender and apply for new work opportunities asaresultof theircertificationstatus. Inorder to maintain their SABS ISO 9001:2015 certification, the company willundergoannualauditsandpayanannualfee.

Ethel and her son have also recently started a brick making factory and arecurrently pursuing a product certification(SANS 1048) to ensure that the quality of the bricks produced are SABS Approved. Thebrickmakingbusinesswasasaresultof noticing that therewas a short supplyof bricks in the province and was an additionalmeansofincreasingrevenue.

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Shamila Trading Enterprises, based inRolleVillage,inThulamahaseadistrictinBushbuckridgeisanexceptionalexampleof how a small, struggling businesscan immediately benefit from SABScertificationandproducttesting.

ShadowNyathi,establishedthecompanyin 2003, by using his family land to setup a small brick making operation. Hisoperation only began in 2005 with the

5.2ShamilaTradingEnterprises

ShamilaTradingEnterprises

Shadow Nyathi

intention of making bricks to build aboundary wall around his land. Hisboundary wall needed thousands of bricks andheinvestedinthemanualequipmentand resources to make bricks. Duringthis process of trial and error, Shadow realised that he could turn brick makinginto a sustainable business and started to explore quality and standards regardingbrickmaking.

In 2011, Shadow began to makecommercialbricksforsale.Hisfirstprojectstarted when he had to supply 3500 bricks for 250 houses in a nearby housingdevelopmentproject.Thisprojectspurredhim to invest in bigger manual pressesand more labour to meet the productionexpectations.

There was a lot of construction and development happening in the villageandwithinBushbuckridge,withroadsandshoppingcentresbeingbuilt.WhenaKFCwasbeingdeveloped,lessthanakilometreawayfromtheplant,Shadowappliedtobethe brick supplier and was confident hewouldgettheworkashewastheclosestsupplier. To his surprise the contractors wanted system and product certificationto verify that his company could supplytherelevantproducts.WhileShamilawasable to supply sand and crusher to the site, itwasaharshawakeningthatthecompanyneededtoformallyacquirecertificationforitsproductsanditsmanagementsystems– if it was to participate in business opportunities at its doorstep.

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Shamila began the journey towardscertification in 2014, through the DEDTprogramme.“Itwasnotaneasyjourneyaseveryprocessneededtobedocumented,controls needed to be implemented andit became very clear that certain skilledresources needed to be employed, ifthe business was to grow. It was alsofrustrating to stop doing business and tothinkabouttheoperations,”recallsShadow.Fortunately,thehandsonassistancefromthe SABS SMME consultant made thejourneyeasier. Shamilahadgrown from2005,fromoneemployeeproducingafewhundredbricksamonthtofiftyemployeesproducinghundredsofthousandsofbricksinamonth.

Shamila began the journey towardscertification in 2014, through the DEDTprogramme.“Itwasnotaneasyjourneyaseveryprocessneededtobedocumented,controls needed to be implemented andit became very clear that certain skilledresources needed to be employed, ifthe business was to grow. It was alsofrustrating to stop doing business and tothinkabouttheoperations,”recallsShadow.Fortunately,thehandsonassistancefromthe SABS SMME consultant made thejourneyeasier. Shamilahadgrown from2005,fromoneemployeeproducingafewhundredbricksamonthtofiftyemployeesproducinghundredsofthousandsofbricksinamonth.

Suren Naidoo andObedGininda

SABS SMME consultant, Suren Naidoo makesregularvisitsandfollowupswiththeSMME to ensure that the documentationand processes are in place. Pictured at the back is Obed Gininda, BusinessDevelopment officer from Mega. Theteam usually travel together to checkon the progress of the SMME and toencourage them to stay on track withthe certification process. Mega is thefinancialarmof theprovincialpartnershipto ensure that SMMEs are capacitated to participateintheeconomyasfullpartners.Withthequalitysystemsinplace,SMMEslike Shamila can qualify for finance frominstitutionslikeMega

Eachoftheproductcategorieshavebeentested by SABS and the company wasawaiting the results of the certificationstatusat the timeofgoing toprint. Asaresultofthecertificationprocess,Shamilawillnowbeable tobid formoreprojects,selltheirtestedbricksatretailersandgrowtheiroperationstosupplybricksthroughoutthe province.

Shadow has plans to expand the plant,buymoreequipmentandtrucksandmostimportantlytohiremorepeoplefromRolleVillagetoeconomicallyempowerthem.

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LazarusMagagula

Lazarusandhisteamof8employees

Afterworkingasasandblasting technicaloperator for15years,LazarusMagaguladecided inJune2011, thathewasgoingto start his own business. Mr Lazarus MagagulastartedHonestyTrade inJune2011, with 3 employees, a few essentialtoolsandequipmentandjustonebakkie.

MostofhisworkwasinthenearbyEskomplants where the machinery requiredabrasiveblasting,sandblastingorcoatingand Honesty Trade was able to grow ata slow rate. In 2014, a few international companies advertised that they werelooking for new suppliers and whileLazarus applied for the opportunity, he was toldthatheneededtogetSABSISO9001certificationinordertobeloadedontothesupplierdatabaseFortunately,forHonestyTradetheMpumalangaDEDTwasofferingSMME support and his company wasselected. The process towards SABS ISO 9001certificationbeganin2015.HewasassignedaSABSSMMEconsultantwhohadtoguidehimeverystepoftheway.

5.3.HonestyTrade“I was running my business, earning aliving,payingmyemployees,Ididnotthinkabouthavingabusinessprofile,havingafilingsystem,recordkeepingandensuringthat my processes are documented. Iwouldnothavehadthetimeorevenknowwhere to start to do all of this. Of course, IseethebenefitandIknowit isneeded,but without the help of sabs, I would never havecompletedit,”saidLazarus.HonestyTradewasthefirstSMMEintheprovinceto successfully achieve SABS ISO 9001: 2015 certification, which happened in2017.

Achieving certification has had animmediateimpactforHonestyTrade,asthecompanywasaddedtothevendor/supplierlistsoftwointernationalcompaniesintheareaandsecuredgoodcontractsfortheiranti-corrosive work. As a result of SABS ISO9001:2015certification,Lazarusnowregularly applies for tenders throughoutthe province and is being awarded thecontracts.Hehasnoticedtheimmediate

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difference fromhaving thecertification tobefore, with more successes and moreinterestintheworkthatthecompanydoes.The company currently has 6 vehicles,with equipment for each of the vehicles,8 full timeemployeesandmanycontractworkers that work on various projects.

HonestyTrademovedintobiggerpremisesin 2015, with ample secure parking forthe fleet of vehicles, customers and forpotentialcustomers.

Lazarus Magagula is proud of the wayhisbusinesshasgrownandheknowshecangrowitfurther.WithoutthehelpfromDEDT and SABS, he believes he would nothavebeenabletogrowasquicklyandasthoroughlyashehas. HonestyTradeproudly displays the South African and SABSflags in frontofhisbuildingand issoproudtobeoneofthefirstcompaniesto have achieved SABS ISO: 2015 certification (at the time companieswereconverting from the 2008 version to the2015 one).

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Bayanda Sibeko

MrBrickisabusinessventure,formedby5smallenterpriseswhichincludesalocalco-op,locatedinSecunda.Thecompanywasstartedandbeganoperating inApril2016, when it was awarded a tender for the use of the waste fly ash by productfromthenearbySasolplant. Theflyashwas to be used in the recipe to makevarious bricks.

“Inadditiontodisposingoftheharmfulflyash and turning it into a useful product,it was important that the local youth beinvolved in thecompany,beactive in themanagement of the company and thatbusinessskillsbeshared,”saidBayandaMaseko, the managing director of thecompany. Eachof thecompanies in theconsortiumhasaspecificfocusandtaskedwithsharingtheskillsanddevelopingthepeoplewithintheconsortium,onelooksattheengineeringaspects,anotherensuringthat local people are employed, one thebusiness management, the other theoperationsandonelooksatadministrationandmarketing.

5.4. Mr Brick

The company produces maxi bricks andhollow blocks. Since production beganin 2016, sales were limited to the localmarket. While they had the capacity toproduce more, there was insufficientdemand. The consortium was losing outon clients and tender opportunities as the products were not tested and there was no quality or environmental systems inplace. Without the relevant certificationand quality systems, big clients werereluctant to procure products as there were challengeswithloadingthemassuppliers.

Through the DEDT programme, SABSSMMEbecame involved in ensuring thatthe consortium could reach certificationstatus. One of the initial problems thatneededtoberesolvedwasthetestingofthe bricks that Mr Brick was producing.While the bricks were being sent to alocal laboratory for testing, the results ofthe testingwasnotvalid. The laboratorywas not accredited by SANAS and the sampling was not correctly checked,which jeopardised the companyattainingaqualitymanagementsystem.

At the time of producing this booklet,MrBrickwasstillintheprocessofgettingtheirbrickstestedataSABStestinglaboratoryandattainingtheirSABSISO9001:2015certification. Bayandabelievesthatoncethe certification is obtained it will bringina rangeofmultinationalclients. He isconfident thathis recipe forbricks,whichuses harmful waste products in a muchneeded product will reshape the industry.

Mr Brick Site in Secundawiththeuniquemaxibricks,madeofthewasteflyashproduct.

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BusisweKhumalo

Inhlaba Bricks was started in 2004 by a few community members, in asmall township located in Piet Retief,Mpumalanga. The community consistedof mainly unemployed people and theyformed a co-operative to apply for amanualbrickmakingmachine,sponsoredby the department of trade and industry.Oncethemachinewasdelivered,theco-operative set up shop in a yard that was shared by a local church.

Thecompanystruggledtotakeoff.Theywere beset with leadership struggles,moneyproblems,locationissues,storagechallenges and acquiring the necessaryingredients tomakebricks for sale. Theco-operative applied for assistance fromDEDT and was selected as a recipient of thedevelopmentprogrammein2014.In 2015, the SABS consultant who was assigned to InhlabaBricksworkedmanyhours to ensure that the business basics were in place.

5.5. Inhlaba Bricks SABS intervened and assisted them tomakebrickstotherelevantSANS.Oncethe recipe was correct, the co-operative was able to supply bricks to the local communities and developers who werebuilding RDP houses in and around theMkhondo area.

ThecompanyiscurrentlyproducingafewhundredbricksamonthforalocalRDPsite,howeverismissingoutonopportunitiesasaresultofnothavingtheirbrickstested,orhavingSABSISO9001certification.Whileprogresshasbeenmadeinimprovingtheoperationsbydesignatingamanufacturingarea, documenting processes, setting upoperatingsystems,planstobuildstoragefacilities, the company is still at thebeginning phase in terms of becomingcertificationready.

Members of the co-operative, pictured withthe SABS SMME consultant who has been assistingthemsince2015.

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Currentlythe5membersoftheco-operativedo the work, manage the company andsharetheprofits.

The company expects that once theyachieve their certification they will beable to secure additional projects and increase their revenue. While they do not have a lot of equipment or assets, theydo believe that they can participate in the local construction opportunities as the government is developing the townshipareasinPietRetief.

SomeofthehousesthatInhlaba Bricks built.

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PearlMpuluzanaandMcDonaldNgwenya

MpuluzanaTradingisacompanyrunbyayounghusbandandwifeteam.PearlMpuluzana and McDonald Ngwenyabegan their construction company in2011. They started with just one truck and used to collect and dump constructionwaste for a site in Mbombela, operatingout of their home. While in the industryand still learning about the variousopportunities, the couple were aware of theopportunitiesto leaseequipmentandspecifically to the construction industry.They did not have capital or experiencetohelp them,however theydidapply forprovincial funding toacquireconstructionequipment,throughthedti.

By 2014, a short time later, they hadsecured several contracts within the municipality forwaste removal, provisionofequipmenttovariousconstructionsitesand even for delivery of construction materials.Thedemandfortheirequipmentandserviceswasgrowingfasterthantheycouldmanage. Thecouple realised that

5.6.MpuluzanaTrading theyneedtogettheirqualitysystemsinplaceand to achieve certification, if they were toget more streamlined and to benefit fromthe larger contracts. Fortunately, it was inthesameyearthatDEDTofferedtheSMMEdevelopment aid toSABS ISO9001qualitymanagement certification and Mpuluzana’sapplication was successful.

The SMME consultant that was assignedto Mpuluzana found the task to getting thecompany certification ready, relatively easy.Thecompanyalreadyhadseveraloperatingsystemsandprocesses inplaceand itwasamatter of organising and categorising theinformation and systems. In a few shortmonths,thecompanyappliedforcertificationandhassuccessfullycompleted theirSABSISO 9001: 2008 certification (the companyis currently awaiting the SABS ISO:2015transitioncertification).

“Whilewewereoperational,gettingcontractsand able to grow slowly, it was only duringtheprocessofgetting ready for certificationthatwerealisedhowimportantitwastohaveclear roles and responsibilities, systems forprocesses and to ensure that we dedicated time to quality assurance and customersatisfaction. Getting this certificateand theSABS ISOflagmakesusproudaswenowknow that our small business can competewiththebiggerplayers,”saidPearl.

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Fromlefttoright:SurendranNaidoo,SABSSMMEconsultant;DumisaniMngadi,SABSHeadofSMMEDivision;McdonaldNgwenya,founderofMpuluzanaTrading;PearlMpuluzana,ownerandMDofMpuluzanaTradingandCharlesShongwe,AssistantDirector:DEDTEnterpriseDevelopment.

In2018,MpuluzanahasofficesinprimepropertyinNelspruit,10tippertrucks,1excavator,1TLBand34-tonneflatbedtrucks.Theyemployteamsoflocalpeople,dependingontheworktheyhave.Thecoupleintendongettingmorecontracts,expandingtheirfleetanddoingmoreworkacrosstheprovince.TheybelievethatwiththeSABSISO9001certificationtheywillbeabletogetbiggercontractsfromthevariousmultinationalsinthe province.

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The stories of the SMMEs showcased in this booklet indicate the varying levels ofdevelopmentthataninvestmentoftimeandmoneycanproduce.Oneofthecommontrends that emerged from the SMMEswas that they would have never pursued certification if left to their own devices, inthat they were content with the pace of theirprogressandwouldnothaveinvestedthe time and the money into achievingcertification.

ThereareseveralchallengesthatSMMEsface,withthemostcommonbeingaccesstofunds,findingtherighthumanresourcestoassistingettingtheadministrativetasksdone, time to focus on developing thebusiness or ensuring that the operationsarestreamlined.MostSMMEs,especiallystart-upsjustfocusongettingthejobdoneand in covering their expenses. TheproblemthoughisthatSMMEsoftenmissout on lucrative opportunities and contracts because they do not have systems,standards or even administrative controlsin place.

ThroughthehelpofDEDTanditspartners,the SMMEs applied for assistance andcommittedtotheprocessofachievingSABSISO9001certification.WhilesomeoftheSMMEswereabletoattaincertificationstatus with relative ease, there are somethatarestrugglingwithgetting theirproduct formula’s tested to the minimum

6. Conclusion

specifications. Irrespective of which end ofthespectrumthebusinesseswhere,itwasunanimous that the intervention by theMpumalangaprovincewasahugesuccessand that the hands on assistance by SABS wasgreatlyvalued.

TheSMMEsectoristhebiggestcontributorofemploymentandeconomicsustainabilityinthecountry.Developingandcapacitatingthe sector remains an important priorityof the SouthAfrican government. SABSis hopeful that the initiative by the Mpumalanga province will be used as abenchmarkforsupportprovidedtoSMMEs.Standardisationisakeyfactorinimprovingmarket access and enhancing businesscompetitivenessforSMMEs,towhichmanagement system certification, producttesting and certification, and appropriatetraining are important pillars to businesssustainability.

SABS will continue to seek partnerships andsupportinitiativesthatpromotestandardisation and the developmentof the SMME sector.

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