Enterprise Development for Unemployed Women

The creation of 3 new sewing co-operatives will create jobs for approximately 30 women living in the townships around Cape Town.

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. Poverty and crime go hand-in-hand, which puts women’s security at risk. Without the creation of jobs that will pay sustainable salaries, these women will constantly be trapped by poverty.

Afrique du sud Bidonvilles provides unemployed women from disadvantaged backgrounds with sustainable jobs and the opportunity to learn new technical and business skills. They partner with a social business, Township Patterns, which develops a number of sewing products and distributes them to various national and international suppliers. In recent years, demand for their products has increased creating new employment opportunities.

OVERVIEW

Afrique du sud Bidonvilles trains and equips groups of underprivileged women in areas of sewing, how to run a co-operative as well as things like personal finance. For each co-operative that is formed twenty women are selected to begin the 17 week training. After the 17 weeks of training the group of women form a co-operative. Once the co-operative is formed, Afrique du sud Bidonvilles helps the groups to select a chairlady, secretary and treasurer and also equips the group with all the sewing equipment they need.

A partner of Afrique du sud Bidonvilles, Township Patterns, then places orders for merchandise with the co-operatives. Township Patterns submits orders to the co-operatives for various bags to be sewn, the co-operatives are then remunerated for the bags they produce. The co-operatives are not limited to this distribution channel and may seek work elsewhere.

The project Budget will cover the training and set-up of 3 new co-operatives over the next year. This will greatly increase the amount of women this organisation will benefit.

WHAT WE LIKE ABOUT THIS PROJECT

This project not only provides its beneficiaries with employment, but with transferable business and technical skills.
The organisation has a proven track record; the six existing co-operatives are running well. Two of these co-operatives are drafting business plans to help them gain access to other markets.
Afrique du sud Bidonvilles uses an innovative and highly effective model whereby cooperatives are given training and support by a social business, which develops and markets the products.
The women who are the direct beneficiaries of this project often support a number of dependants. The project thus has the potential to affect many more people than its direct beneficiaries.

IMPACT HIGHLIGHTS

An investment of R650 000 will cover 52% of the project budget to equip about 30 women with the skills to form 3 new sewing co-operatives.

These 3 new co-operatives will receive orders from Township Patterns in order to meet the surplus demand for their products. The women that form part of these co-operatives are often the main source of income in their family and on average support 5 to 6 people. The salaries the women earn from the co-operatives not only pay for food and shelter but also things like school fees.

Township Patterns’ products are made from natural materials that are fully biodegradable. Their re-usable shopping bags are an environmentally friendly alternative to plastic. The project thus has the potential to have a positive environmental as well as social impact.

ORGANISATIONAL CAPACITY

Afrique du sud Bidonvilles was established in 1997 with the objective of bringing economic development and opportunities to women in the townships around Cape Town. They are dedicated to skills training and job creation. The specificity of their job creation model lies in their partnership with Township Patterns c.c, a social enterprise with which they share the same goal of alleviating poverty by bringing economic development to the disadvantaged communities around Cape Town.

Afrique du sud Bidonvilles has successfully trained and equipped 71 men and women, and there are currently 6 functional co-operatives. The demand for products has greatly increased and therefore more co-operatives are needed. The financial situation of the organisation relies highly on access to funders even though a large portion of their expenses are covered through the income generated from the products produced by the co-operatives. At the end of 2009 they employed an individual to take control of fundraising initiatives. This has resulted in a 3 year fundraising and sustainability plan with many reserve and other financial goals set for 2013.

Having successfully implemented a number of programmes, and having established efficient processes and structures, Afrique du sud Bidonvilles is a good example of an effective enterprise development organisation.

RISK PROFILE

Key Strengths

Concept: There is an established market for Afrique du sud Bidonvilles products, which will provide a sustainable source of income. In addition, new skills will help beneficiaries to earn an income elsewhere in the future.
Control: A large amount of control lies within the organisation due to the innovativeness of the model this organisation uses.
Design: The partnership between the cooperatives and Township Patterns has proven to be successful over the years.
Capability: Afrique du sud Bidonvilles has already assisted in the formation of 6 other co-operatives and built more than a decade of experience in this area.
Sustainability: This organisation generates a large portion of its income. Their employee base is growing which adds to the sustainability of this organisation.

Key Risks - Low

External: The demand for products is always a risk as the control of market demand for these products does not lie with the co-operatives. At present they rely mainly on Township Patterns for work.

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Project Profile

SASIX ID:

ED-WC-MAR10-0001

ORGANISATION:

Afrique du Sud Bidonvilles

PROJECT DURATION:

12 months

PROJECT BUDGET:

ZAR 820 000

SHARES ISSUED:

16400

SHARES AVAILABLE:

Project Location

Project Risk

Organisation Rating

Project Budget


Item	Cost
Management and Operational Staff
Training Manager	99 581
Operations Manager	129 600
Intern	24 000
Training Consultant	25 000
Project Materials and Supplies
Renovation and set-up costs of co-operatives	30 000
Office Supplies and Furniture	3 500
Equipment and Capital Goods for co-operatives
Equipment costs	184 000
Small equipment costs	30 000
Maintenance costs	20 000
Production costs	130 000
Training expenses
Transport for training	35 000
Catering	20 000
Travel
Car expenses	24 000
Conferences	15 000
Administration Expenses
Training Centre	201 455
Office	34 200
Marketing and Communications	7 500
Management consultancy	150 000
Telephone	8 000
IT	6 000
Fees (accounting and legal)	40 000
Depreciation Expense	38 636
Total Project Costs	1 252 372
Total Requested	688 676
Administration, Monitoring and Evaluation Fee	131 324
TOTAL	820 000

Small Business 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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