Business skills training for unemployed women

VISION

Siyazigabisa’s vision is to be a home embracing every aspect of family, and to ensure that all those in their care become useful and productive members of society, regardless of their background. Siyazigabisa means "We are proud". The organisation incorporates the love, protection, education, nurturing, empowerment, respect and defence of children, victims of domestic violence and women living with HIV/AIDS. They would like to be financially independent in the next five years. In order to achieve this goal, Siyazigabisa will invest in carrying out projects to generate income.

OVERVIEW

This project aims to provide the Siyazigabisa Home of Hope's income-generating group with basic business skills to establish viable business units, enabling this non-profit organisation, which serves abused children and women, to become financially independent. The group is comprised of unemployed women in Tembisa, who are members of the Siyazigabisa community support group for abused women, as well as the leadership of Siyazigabisa. This training intervention will comprise a six-day accredited course with the South African Institute of Entrepreneurship (SAIE), as well as a focused, facilitated four-day session aimed at producing comprehensive, viable business plans for sewing, shoe-making, beadwork and bakery projects.

WHAT WE LIKE ABOUT THIS PROJECT

• This project enables vulnerable women in the Tembisa community to increase their business administration and financial literacy skills and equips them to start business units that will support the sustainability of Siyazigabisa.
• The proven SAIE training will include practical advice and tailor-made support for the start-up businesses, through the development of viable business plans.

EXPECTED LIFE CHANGE

An investment of R64 200 will provide 20 women with skills in costing and pricing, budgeting, cash-flow management, record-keeping and financial statements, as well as assist them in developing comprehensive, viable business plans for their income-generating projects. This is the first phase of a long-term project to establish sustainable businesses that will enable Siyazigabisa to become a financially independent non-profit organisation.

• 20 members of Siyazigabisa's income-generating group will receive SAIE's Business Starter Plan training, as well as assistance in the development of business plans for sewing, shoe-making, beadwork and bakery projects.
• The establishment of viable business units at Siyazigabisa will further impact on the financial security of the home, positively affecting the lives of 20 children living there, as well as a further 20 children in the community who receive support from the organisation.
• 20 women will be generating income for their households, positively affecting the lives of a further 126 people.
• Direct life change at a cost of R1 070 per life .

This project has breadth, depth, intensity and permanence in that it has the potential to impact positively on the economic, social, psychological and vocational aspects of the beneficiaries' lives

NEED

There is a growing need for non-profit and community-based organisations to address issues of self-sustainability in ways that reduce their dependence on donors and mitigate the risks caused by high costs and vagaries of fundraising strategies. However, many such organisations, while effective at delivering on their social mission, lack the entrepreneurial and business skills to develop and sustain income-generating projects. Without these skills, there is a high risk of income-generating projects failing to achieve their aims.

STRATEGY

The SAIE will provide a group of 20 women with accredited Business Starter Plan training and will work with this group to develop viable business plans for their sewing, shoe-making, beadwork and bakery projects.

ACTION PLAN

Preparation

The women are already a group and part of Siyazigabisa's community support programme for abused women. The necessary consultations regarding the provision of this training have already taken place.

Implementation

The project will start with a needs assessment and the delivery of the SAIE's Business Starter Plan training. This will be followed by a four-day intervention to formulate viable plans for each business unit.

Monitoring

Following the 10 days of training, there will be an evaluation of the business plans to determine the success of the intervention.

RISK PROFILE

Key Strengths

• Concept: The SAIE's Business Starter Plan training is based on discovery learning methodology that has been tried and tested for more than 10 years both locally and internationally.
• Design: The Business Starter Plan training is participatory and can result in a deep level of experiential discovery learning. There is no significant literacy requirement as most of the discussions take place in the home language of the learners, making the programme particularly accessible to participants with little formal education. The method has been used since 1996 and has been refined continually on the basis of participants' feedback.
• Capability: SAIE has been implementing similar projects since 1996, and has very experienced trainers. Siyazigabisa is a well-established, accountable organisation that has demonstrated high levels of motivation and competence within its community.
• Control: SAIE is a well-established and sophisticated non-profit organisation with sound systems in place for administration and financial control, as well as for financial oversight. Siyazigabisa is well-established, with the necessary systems and procedures for financial and reporting frameworks.
• Sustainability: The training builds adult capacity among an organised and cohesive group of women who have indicated their motivation for the project.

Key Risks

• Concept: Although the training course is proven, it does not translate automatically into participants being able to establish income-generating activities, as some may be less entrepreneurial than others.
• Capability: The success of the programme depends on the capabilities and motivation of the participants.
• Sustainability: The expansion of the projects into income-generating businesses will be require further funding for infrastructure, skills training, marketing and administration.
• External: The majority of the group is comprised of volunteer unemployed women who may not continue to be involved in the project due to lack of motivation, or because of other opportunities they may have over time.

Project Profile ED-GP-OCT-0001

Organisation: Siyazigabisa

Sector: Enterprise Development

Project Duration: 1 months

Project Budget: ZAR 64 200

Shares Issued: 1284

Shares Available: 0

Risk Assessment (0 to 5)

Concept: 3

Design: 1

Capability: 2

Control: 1

Sustainability: 5

External: 5

Organisation Rating (0 to 5)

Purpose: 3.6

Planning: 4.14

Performance: 3.05

Resources: 2.44

Governance: 2.67

Sustainability: 2.6

Project Budget

Project Sector

Enterprise Development

With South Africa's unemployment rate as high as 40 percent in terms of a broad definition, the accelerated creation of sustainable small and micro enterprises is essential both to economic growth and to future socio-political stability. Township and rural-based enterprises, in particular, have the potential to create jobs and alleviate poverty by channelling resources into disadvantaged communities.

Research shows that our country has a low rate of entrepreneurial activity compared with other developing countries, with entrepreneurs contributing only 35% of GDP, compared with 60% in countries like India and Brazil. In addition, only 80% of all new SA businesses survive past the first two years - a low rate when compared with other developing countries. According to the annual Global Entrepreneurship Monitor study, the key factor influencing entrepreneurial activity in South Africa is the lack of effective education and training in entrepreneurial skills and basic financial literacy.

The large majority of new small businesses are operated out of necessity - people eeking out a living through informal trading and service provision because there is no alternative. These necessity entrepreneurs frequently have little or no access to computers, telephones, transport, banks and government services, and lack the financial literacy and business administration skills to sustain and expand their businesses.

Opportunities exist to invest in educating informal traders and community members in business administration and financial literacy, and in supporting the expansion of entrepreneurship education in schools and colleges. There is a need to invest in the extension of services that advise and support start-up businesses to previously marginalised areas, and to support initiatives to create community investment trusts and co-operatives that undertake productive activity. There are also exciting opportunities to help dynamic entrepreneurs in poor communities to purchase new equipment or set up business premises, creating employment in their communities.

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SASIX Evaluation Metrics

The organisational rating

In partnership, Trialogue and The Funding Site developed an expert organisational capacity diagnostic test, which has been further refined by GreaterGood South Africa based on its consultations with Geneva Global and others active in this area. The result is a comprehensive evaluation and verification tool that GreaterGood South Africa uses to assess the capacity of non profit organisations according to both qualitative and quantitative metrics. The tool encompasses the purpose, strategy, performance, resources, governance and sustainability of the organisation and its activities. GreaterGood South Africa project managers are employed in the field to conduct the evaluations with the organisations implementing SASIX projects. The results of their findings are assessed through a peer review process, and then coalesced into the organisational ratings presented on the front page of each SASIX Project Profile.

The project risk assessment

In consultation with Geneva Global, GreaterGood South Africa uses a comprehensive risk assessment tool to evaluate target projects - a tool that encompasses the project's concept, design, capability, control, sustainability and external factors that will or may affect the successful implementation of the project. At the completion of the project, GreaterGood South Africa will issue a Project Performance Report that compares the actual life change with the expected life change forecasted on the front page of this profile. This report will also include the key lessons learned.

GreaterGood South Africa Services

Project identification - Through wide, expert consultation and screening processes, GreaterGood South Africa identifies top South African non profit programmes that address the greatest development needs in the country.

Site visits - In order to become a recommended SASIX project, GreaterGood South Africa's project managers must have seen the project first-hand and undertaken the necessary evaluation interviews with the project's implementer(s).

Desk research - International best practices and other references are used as benchmarks to measure the projects.

Peer review - Information gathered and project profiles are assessed through a peer review process.

Deal structure - GreaterGood South Africa's project managers work closely with the project implementers to establish the parameters with regard to the expected results, time-frames, monitoring processes, use of funds, budget and final evaluation.

When you invest in a SASIX project, GreaterGood SA will:

Document the agreement - Before funding is supplied to a project, GreaterGood South Africa concludes a Memorandum of Agreement with the organisation which covers expected results, timelines, reporting frameworks and acceptable uses of funds.

Assist with funds transfers - GreaterGood South Africa will assist with the necessary transfers of funds, according to the funder's requirements.

Obtain receipt of funds - GreaterGood South Africa confirms when the funds arrive with the project implementer.

Check progress - At around 3 months, GreaterGood South Africa confirms that the project is proceeding according to plan. The project managers are available to project implementers for advice and consultation on an ongoing basis.

Measure results - After the conclusion of the project, GreaterGood South Africa collects the necessary data and compiles a Project Performance Report which includes an analysis of the outcomes and the lessons learned. Each funder of every SASIX project receives the report.

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To fund this project

Please contact: SASIX
Tel + 27 21 794 0580
Fax: 27 21 794 2239
Email: sasix@ggsa.co.za

Postal address: Postnet Suite 293, Private Bag X16, Constantia 7848, South Africa