Supporting Womens ’ Micro Enterprises

1. Supporting Womens’Micro Enterprises Thabsile Ntuli, Umkhanyakude Municipality Beni Williams and the Women of Ingwavuma

2. Introduction : Women • “Six billion human beings live on the planet Earth, and more than half of them are women and girls. They constitute two-thirds of the world’s 876 million illiterates and 70% of the poor. Women and girls perform two thirds of the work in the world; they are paid one-tenth of all world income.” • “Women’s empowerment and their full participation on the basis of equality in all spheres of society, including participation in decision-making process and access to power, are fundamental for the achievement of equality, development and peace.” • (Beijing Declaration 1995)

3. Background: Umkhanyakude • District of UMkhanyakude consist of five local municipalities. • Covering an area of 12 819 square kilometres • Total District population 573 341 • Unemployment 53,7% • 50% of household earn <R500/month • 81% of households earn <R1 500/month • 54% of population are women

5. Umkhanyakude . 90% percent of population lives in rural areas. An annual average income of R71 per person (Durban R2600) There are no formal industries HIV/AIDS is prevalent High male absenteeism (man looking for jobs elsewhere ) Large number of women active in the informal sector.

6. What the Municipality learned. • Rural SMMEs tend to be survivalist micro enterprises in which women entrepreneurs engage in least ruminative areas of local economic environment. • Limited demand for goods/services • Depressed state of rural economies • Limited Access to finance and credit • Lack of business and techncal skills

7. What the Municipality has learned • Many of these micro enterprises face a number of problems/ barriers or constraints • Lack of Business premises and infrastructure. • Roads, water, electricity, premises basic services. • Financial constraints, insufficient own capital, limited access to finance, lack of working capital, high transportation costs • Market Constraints, Limited markets, • Limited access to sources of information • Business and management and training • s

8. What the Municipality has learned • Existing IGAs have a potential to deliver more- under performance is due to an inability to produce the required quantity or quality • Rural SMMEs can perform better if the environment in which they operate can be improved. • Problems they face are: • A limited demand for goods and services • Lack of access to finance • Depressed state of rural economies • Lack of business and technical skills

9. Partnerships • Partnership started up because stakeholders have a common goal to improve the socio-economic status of the community. • Identifying existing IGAs led to partnership with LED office in District. • This project could never have been implemented without the partnership between the Municipality, LED and the community.

10. Partnership • Umkhanyakude partnered ASALGP in a program of micro enterprise development • Supported both gender strategy and economic development • Australian adviser, Gosia Hill, in Umkhanyakude for 12 weeks • 10 micro enterprise start ups were supported • Training course still being repeated in District

11. Introductory Small Business Training Program • Why consider operating a small business? • Small business planning • Who will buy from you? • Business ownership structures • Getting organized • Budgeting • Managing money and looking after finances Umkhanyakude have repeated this program 4 times It has been repeated in most of the Municipalities. Women were asked to make presentation to Business partners and share what they gained from workshops.

12. Results • 60 people have attended these workshops. • All of the ten enterprises helped by Gosia are still running. • 25 new enterprises have started since the courses have been repeated. • We are not sure how many people engaged in business as some work as groups and some as individuals but an estimated 300 people may be active.

13. Results • CAPACITY WAS BUILT IN THE MUNICIPALITY • Basic business skills eg. How to start a business, how to write a business plan, how to write a business proposal, how to prize the goods • To organize communities to be involved in small business especially women • To be pro-active and look for the information that will assist our communities • To develop a link with other departments that can assist SMME’s such as Dept. of Labour, Dept. of Trade and Industry and Dept. of Agriculture

14. Results :Capacity • WHAT CAPACITY WAS BUILT IN THE MUNICIPALITY • The Municipality has developed a data base on existing micro enterprise in the district. • Municipality staff has been trained to run basic business skills workshops for SMMES eg. How to start a business, how to write a business plan, how to write a business proposal, how to prize the goods • Municipality through its now skilled staff is able to encourage and assist communities in starting small business especially women • Municipality has become more pro-active and look for the information that will assist communities • Able to develop a links with other departments that can assist SMME’s such as Dept. of Labour, Dept. of Trade and Industry and Dept. of Agriculture

15. What other Municipality can do • Municipality can create an enabling environment for SMMES. • Develop a data base on the number of enterprises in the area • Help these SMMEs with training mentoring and after care • Facilitated access to credit ( encourage sustainable affordable micro lending) • Draw linkages and coordinate resources offered by other government departments, donors and NGO to help SMMES • Facilitate the provision of Information. • Challenges More human resources needed to visit and support emerging entrepreneurs in the district. • Increased demand for funds to assist and support SMMEs • .

16. The women of Ingwavuma • Ingwavuma Women’s Centre is a cultural and micro enterprise, training and marketing centre that was initiated to serve the needs of local women. It was a response to a growing number of poor unemployed rural women in the area. • It started with 20 women who had a food garden and were producing hand crafts for sale. • It now has about 200 women producing products made from sisal and another 230 women who make and produce embroidered greetings cards and framed embroidered pictures.

17. Women of Ingwavuma: Gosia Hill We met Gosia Hill at the end of her stay in South Africa, but in that short-time we learned quite a lot from her about how to make small businesses work. Three members of our organisation were able to attend these workshops. She identified the need to train micro enterprise representative in order to improve their business management skills She was very good in getting us in touch with potential buyers of our products, where to market, who to call and her recommendations carried a lot of weight. She made us aware of what resources and help within our own areas as well as Provincial.

18. The women of Ingwavuma : Gosia The embroidery group has managed to sell many of cards both locally and in Australia as Gosia continues to support us in all our activities. She has done a excellent job on marketing us and supplying us with contacts details and information on what products to make

19. Ingwavuma women • Choice of an IGA is very important and the as some fail because it’s the wrong activity for the area. • The Women’s Centre offers a selected number of Activities. • Hand-Crafts: sisal and grass weaving • Embroidery: cards and pictures • Wood craft-picture framing • Metal Work-Welding • Bed and Break fast and catering facility • Fabric painting, Batik Screen Printing • Sewing : of Malaria Bed Nets, Traditional attire • Services: women support and Tourist information centre

20. Activities and sisal products

21. The women of Ingwavuma Activities Embroidery Cards making • There are 200 women involved in nmaking these cards • Income from sales is R220 000 (2001-2003) • 1st Year = R15 000 • 2nd Year= R100 000 • Last 7months =R100 000 • Last 3months R40 000

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