Business skills for 100 women

NEED

In South Africa, women are less likely than men to receive formal schooling, but more likely to support dependants. Low levels of education and training deny many women access to decent employment opportunities. The low wages that they consequently receive means that, as breadwinners, they cannot meet their families’ needs. As a result many women and their dependants remain trapped in poverty.

Skills development can offer women a path out of poverty, as well as empower them to challenge unfair gender relations. Financial self-sufficiency can give women greater autonomy within the home, enabling them to renegotiate household relationships.

OVERVIEW

The Clothing Bank aims to provide 100 women from disadvantaged backgrounds with business skills training as well as hands-on experience in running their own retail micro-business. The beneficiaries volunteer at the Clothing Bank warehouse for four weeks, after which they enter an 18-month accredited learnership. After the first two weeks of formal training, the women are given a R500 worth of discounted clothing, which is the donated surplus from a major South African retailer. The women then sell these clothes for profit in their communities, while they continue their training.

This holistic programme combines theory and practical retail management experience, and also includes personal financial literacy, life skills and bimonthly business coaching sessions.

The Clothing Bank, through its network of volunteers, will measure the impact it has had on the lives of its beneficiaries by asking them to complete Living Standards Measure surveys.

In addition to this enterprise development programme, the Clothing Bank distributes clothing to non-profit organisations and people in need as part of the regional government’s disaster relief programme.

WHAT WE LIKE ABOUT THIS PROJECT

• The Clothing Bank applies a market-based solution to address a social need; clothing items, which would otherwise be discarded, become the foundation of a sustainable income-generating activity for the beneficiariesas well as the organisation.
• The training has been designed to provide critical trading and business management skills, which can be applied to any industry.
• The business skills component of the training will be taught by the South African Institute for Entrepreneurship (SAIE), an accredited training provider with extensive experience in the material development and training programmes.
• Women receive bimonthly coaching sessions by experienced professionals; this ensures that training is customised to the trainee’s needs and any challenges are identified and addressed.

IMPACT HIGHLIGHTS

An investment of R 500,000 will contribute to the training of 100 women business management and retail. On average, the women each care for 5 children and many of them care for other family members too. The positively impact of this intervention will thus have an effect on far more people than the 100 direct beneficiaries.

ORGANISATION ASSESSMENT

The Clothing Bank is a young, creative initiative led by two committed and experienced women, who identified an opportunity to use surplus clothing for socio-economic development. They developed the Clothing Bank concept in consultation with experienced NPOs in the sector to better understand the social dynamics and similar organisations in the sector. They then forged meaningful partnerships with government, the retail industry, various NPOs and number of committed volunteers, all of which has accelerated the organisation’s growth while keeping costs very low.

After 6 months in operation, the organisation has managed to secure a supply contract with a major retailer, a basic endowment and generate enough monthly revenue to cover operating costs. Desired expansion to increase impact is, however, limited by funding as well as available warehouse space.

RISK PROFILE

Key Strengths

• Concept: Clothing Bank has mastered the principle that “one woman’s waste is another woman’s treasure”.
• Design: Enterprise development programmes are most effective when paired with practical and experiential training. Through an important partnership with the SAIE, women will receive high quality accredited training.
• Capability: The organisation is led by an experienced NPO manager and a CA with strong connections in the retail industry. The Board brings in a variety of useful skills and necessary oversight.
• Control: The Clothing Bank is transparent in terms of its financial operations and governance. Updated monthly financial statements are available electronically.
• Sustainability: The organisation is based on a sustainable model, which aspires to be fully self-sustaining within 3 years. Management is focusing efforts on securing the necessary funding for expansion as well as additional supplying contracts with other clothing retailers.
• External: BBEEE provides a good incentive for corporates to invest in enterprise development programmes.

Key Risks - Low

• Capability: The organisation relies heavily on volunteers to carry out essential business activities, such as trainee selection, coaching and training. However, volunteer responsibilities and goals are clearly defined and articulated, which increases their efficiency and reduces the risk of them leaving the organisation at a critical stage. Funding is currently the main constraint to the organisation’s expansion and consolidation.
• Sustainability: The project is currently dependant on only one clothing supplier; though discussions with an additional supplier are quite advanced.