Corporate and SMEs can both benefit from partnerships. Here’s how   

As the journey into strengthening the role that small and medium enterprises (SMEs) play in South Africa continues, the spotlight has been placed on how the private sector can invest and what it would get out of its investment.

However, Jonathan Spencer, brand and campaign manager at One Day Only stresses how corporates in the country are reluctant to partner with SMEs.

“Supporting entrepreneurs should go beyond ticking boxes, the real objective should be to make a positive impact on these businesses and a meaningful difference in the lives of the individuals behind them.”  

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Benefits partnerships with SMEs

Spencer says partnerships between small businesses and corporations would play a big role in job creation and fueling economic growth.

It has been reported that small businesses employ around 50% to 60% of the country’s workforce and contribute around 34% to the country’s GDP. “One can only imagine the impact that could be made if these entrepreneurs received the help they need to flourish.” 

Type of support

He says not all support must come in the form of finance, but many small businesses would benefit greatly from resources, expertise, exposure and networks.

Spencer points out that this would not be a one-sided partnership. “Corporates that work with entrepreneurs gain access to fresh ideas and innovative products that can boost their revenue and provide a competitive edge.” 

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Consumer trust

Thabo Serame, founder of Sleep Monk says when he established his business during the pandemic, he needed corporate’s help to build consumer trust.

“I started the business just when the e-commerce boom was beginning, so people were still sceptical about buying furniture from these platforms. We needed well-known brands to vouch for us.”  

Serame says this could have been done through well-known brands leveraging their extensive social media reach and customer database giving his brand the exposure they needed, this would have helped them to expand the market. 

Challenges need big brands

He adds that one other challenge they experienced as a startup was logistics. When they started receiving orders across the country, they struggled to deliver them due to limited resources.

If they had started working with an established e-commerce site at that time, it would have alleviated the burden via its courier network, improving their nationwide delivery process.

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The need for corporate help

Spencer says Serame’s journey highlights the broader challenges faced by many entrepreneurs in the country.

As soon as Serame started working with businesses that had been in the game for long enough, running the business started going smoothly for him. Spencer adds that this underscores the importance of a supportive and collaborative business environment.

“Partnerships can create new opportunities both for corporates and business owners. In turn, these entrepreneurs can create more jobs and contribute even further to the country’s economic growth.”

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