SMMEs, youth and residents of Alexandra have petitioned the City of Johannesburg against the closure of the Alex Business Hub.
The hub was an initiative of The Business Place, a network promoting business and entrepreneurial development in townships, and was opened to much fanfare last year.
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One of the petitioners, Lebohang Nthate said the petition handed to Mayor Herman Mashaba, relevant departments and local councillors prompted the City to schedule a meeting to resolve the matter as soon as possible. The closure is part of a decision to close all seven hubs in Joburg and Ekurhuleni.
MMC for Economic Development Leah Knott said the closures were prompted by the hubs’ failure to provide comprehensive services and support and were merely functioning as referral centres. Knott said the closures were temporary and the hubs would reopen in January next year after their services had been refined into an ecosystem providing all services to their intended beneficiaries.
“A typical ecosystem support should include elements like access to funding channels, professional business advisory services, access to markets, mentorship, incubators and encompassing policies,” said Knott.
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“This is in line with the mayor’s priority to ensure 5 per cent economic growth in the city by 2021, the reduction of unemployment, the launch of regional job seekers and innovation desks, and growth and development of a skilled labour market for both public and private sectors.”
Knott added that their renewed approach to SMME development would make the hubs meeting points for like-minded people to collaborate and find solutions to job creation and economic growth, and link employment seekers with the right companies and employers.
She disclosed that partners for the change process would be sought through the public and universities to ensure the flow-in of creative ideas. The plan will also increase the number of hubs to two per region.
Nthate said reasons given for the closure were unconvincing as the Alex Business Hub provided all required services. The shutdown would affect the hub’s 30 to 60 daily users, disrupt access to necessary tools and training for SMMEs, business information, workshops and funding opportunities and free Internet access for business research.
“The hub is a strategic resource which enhances the lives of local business owners, the growth of the local economy and helps many disadvantaged youth with business development knowledge to support their preferred forms of business.”
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Other reasons for the objection were:
- Lack of consultation with the community
- Destabilising service continuity as was the case when previous hubs were relocated from Motsweding and San Kopano community centres
- Jeorpadising business support by stopping workshops, Internet access and business consultations
- Denying youth access to business and employment opportunities and restriction of growth opportunities for SMMEs
- Relocating again to Motsweding, a previous hub site, was nonsensical and the other option in Waverley will be inconvenient and costly
- The current location is more convenient and accessible to youth who use the hub’s Internet to research for homework assignments and business ideas.
Details: Lebohang Nthate 076 889 6869 Khosi Khumalo 064 118 5742
