Samsung partners with DTIC to create meaningful employment opportunities in South Africa
By Nicky Beukes, Samsung South Africa EEIP Project Manager
According to research by Thrive CFO, small businesses in South Africa face numerous challenges that make it difficult to compete in the local economy.
These challenges include access to funding, competition from larger companies, limited market reach, high operating costs, lack of skilled labour, regulatory compliance, cybersecurity threats, cash flow management, limited access to technology, and environmental sustainability.
To help small enterprises in South Africa overcome some of these challenges, Samsung – in collaboration with the Department of Trade, Industry and Competition (DTIC) – has formulated programmes that address government’s priorities as well as industry-relevant Information and Communication Technology (ICT) challenges.
These projects fall under Samsung’s R280-million Equity Equivalent Investment Programme (EEIP), which was launched in 2019 and is part of Samsung’s broader commitment to social responsibility and economic development in South Africa.
This multi-million-rand EEIP programme aims to empower black-owned and local SMEs with a particular focus on women and start-up businesses in the ICT sector.
It supports skills development, enterprise development, and job creation – all with the goal of contributing to black economic empowerment.
Samsung aligns with National Development Plan
Samsung’s EEIP programme is closely aligned with the overarching objectives of the National Development Plan (NDP) Vision for 2030 and South Africa’s framework of broad-based black economic empowerment (B-BBEE).
It provides a mechanism for multinationals to contribute towards the development of black South Africans.
This framework has allowed our company to contribute to B-BBEE goals through alternative investments, including investments in black-owned businesses, ICT development and skills development.
Our EEIP programme focuses on strengthening black economic empowerment by supporting ICT entrepreneurs and fostering technological advancement, ultimately contributing to socio-economic development and job creation.
South Africa’s NDP envisions a thriving SME sector as a cornerstone of the country’s inclusive, resilient economy by 2030.
In essence, the NDP sees SMEs as a crucial engine for economic growth, job creation and poverty reduction.
This strategic plan for South Africa’s future outlines various tactics to foster SME development and ensure their long-term success.
New SME Development Programme open for applications
Our government, which includes our collaborative partner, DTIC, believes that SMEs can create the majority of new jobs in the country – contributing significantly to economic growth and playing a vital role in the reduction of poverty and inequality.
As Samsung, we also understand how much entrepreneurship contributes to job creation and community development, and how it fosters innovation and drives economic growth.
For that reason, Samsung EEIP programme and DTIC have opened the third Call to Market for the transformative SME Development Programme – targeting suitable ICT entrepreneurs in the country who are eager to grow their businesses for funding and support.
This transformative SME Development Programme seeks to support local entrepreneurs throughout their journeys, as well as driving a culture of innovation and digital solutions.
In an effort to exceed our obligations towards government and demonstrate our ongoing investment in SME development, we are in the process of recruiting suitable SMEs to participate in the EEIP SME Development Programme – with the ultimate aim of contributing to economic growth and job creation.
Expansion of the programme
In the last two years, our criteria for this EEIP SME Development Programme focused on targeting SMEs that had been operating in the ICT and Service Centre space for at least a minimum of three years with a turnover that is less than R50m per annum.
This year, our EEIP SME Development Programme “Call to Market” campaign for entries has gone with a unique approach that aims to make a tangible difference in the lives of local ICT SMEs.
We have changed our focus to include start-up micro-enterprises that are still in their infancy stage, and we have also placed a strong focus on women-owned businesses.
In collaboration with DTIC, we understand that start-up businesses are generally considered high-risk ventures, particularly in the early stages.
We have therefore put in place some mitigating measures coupled with key performance indicators (KPI’s) to help manage these micro-enterprises efficiently and overcome any challenges that might come our way.
The specific KPIs that are used in this EEIP SME Development Programme include:
- Economic Impact
Looks at accumulative investment in SME development, capacity building, and the contribution to the South African economy.
This KPI also looks at job creation, growth in revenue, and the profitability of supported SMEs.
- Enterprise Development
Evaluates the number of SMEs that are specifically black-owned, as well as those that are township-based, and the number of businesses supported.
- Capacity Building
Looks at the number of individuals trained or upskilled, improvements in business management skills, and access to new markets and technologies.
- Sustainability
The environmental impact of supported businesses, the long-term viability of supported SMEs, and the number of black-owned businesses and townships-based that are supported.
The importance of representation
We made these changes because we understand the need to develop local start-up enterprises, and how gender representation plays a crucial role in the development of entrepreneurs in the country.
Importantly, we strongly believe that gender inclusion in the ICT entrepreneurship space will help to unlock economic potential, drive innovation, and create a more equitable and sustainable future.
With this new approach in this year’s EEIP SME Development Programme, we are now able to offer a larger pool of eligible ICT SMEs in the country an opportunity to access grant funding and enterprise development support to help propel their businesses to greater heights.
This improved approach aims to identify gems in the market and offer them holistic support, which also includes Business Development assistance (mentoring and coaching) to help foster growth, a dynamic and connected information society, as well as a knowledge economy.
This holistic approach in our transformative EEIP SME Development Programme not only focuses on developing technical skills (for those organisations in the ICT sector), but also other key entrepreneurial capabilities such as soft skills that can help create sustainable businesses in South Africa and enable them to become engines for job creation.
Enterprise Development Bootcamp
Our business development initiatives also include an Enterprise Development Bootcamp that is part of Samsung’s EEIP Programme – which helps young entrepreneurs launch and grow their businesses.
This fast-paced four-month-long bootcamp programme focuses on developing entrepreneurial skills and supporting Black-owned businesses in South Africa, particularly in the areas of Service Centre repairs and ICT.
It aims to accelerate and grow businesses by providing entrepreneurs with training, mentorship, and financial support.
Exciting times for local entrepreneurs
Samsung’s EEIP programme – now in its seven years of sustained success – and this Enterprise Development “Call to Market,” which represents the 3rd edition of our programme, seeks to continue making a measurable difference to the socio-economic development of black South Africans.
This year’s call follows two successful cycles and forms part of our broader commitment to the ICT sector, SME development and Vision 2030.
This is our way of ensuring that we empower South Africa’s digital future by helping ICT entrepreneurs thrive as we deepen our commitment and collaboration with DTIC.
The success of this EEIP SME Development Programme highlights the significant milestone our EEIP represents in the country, and the profound impact it has had on the nation’s ICT sector in conjunction with the DTIC.
Our programme’s alignment with South Africa’s Vision 2030 and its success to date has positioned this transformative SME Development Programme as one of the notably value-adding EEIPs in the sector.
Furthermore, our strong and successful collaboration with the DTIC in strengthening the ICT sector through the EEIP – now complemented by our expanded focus – is a true testament to shared goals for national development in the country.
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