Shop Owners Complete Business Training
Fri, 19 November 2010
“We have learned how to grow our businesses and how to make a profit. We have also learned how to attract customers even if they do not live in our area.” Nomta Duma
REPORT 3: Triple Trust Shop-Net Programme Spaza Market Development Project
The Triple Trust Organisation (TTO) provides spaza shops in Cape Town with assistance in business and market development. The Spaza Market Development Project is designed to strengthen existing markets within impoverished areas and to increase the buying power of spaza shops.
This project was established to provide business skills training for 200 Spaza Shop owners over a 12-month period and to build up the Spaza and House-shop Owners Partnership Network (Shop-Net) programme in Khayelitsha, Mitchells Plain, Manenberg, Delft, Langa and Elsies River.
The project was implemented from April 2009 to March 2010, and is now completed.
Outputs and impact
The target for the final quarter of the project year was to train 120 participants in the four modules on costing and pricing, business management, conducting a business health check and using the customer and Shop-Net systems. A total of 131 owners completed all four modules during October and November 2009, exceeding the target. Training was conducted for spaza shop owners in Khayelitsha, and Delft as well as the adjacent areas of Mfuleni, Samora Machel and West Bank. The total number of shop owners who received training in all four modules since the start of the project is 209.
In addition to the training, a focus group discussion was conducted in Khayelitsha to take a closer look at the benefits of the training for the businesses, evaluate the module content and its impact, gauge the difference in the owners’ outlook with reference to running their shops and to take comments and recommendations. The session was attended by eight participants. Some of the comments from the participants were that:
“Training was very helpful and highlighted the importance of recordkeeping.”
“Training days need to be increased to at least five days. Some modules takes longer to grasp.”
“Training is held too far from our shops.”
“We need more stock and a bigger range.”
Triple Trust representatives carried out follow-up visits to participants who had completed the training throughout the year. The intention of the visits was to ensure continuity and cementing the learning of the training. Owners were visited at their shops. 200 shop owners were visited once, with 150 of these receiving a second visit, and 60 a third visit. During the visits, the shop owners were assisted to revisit the goal/s set by themselves at the training (business health check) and establish the impact of training. In addition, ‘in-the-shop’ training moments allowed Triple Trust staff to provide assistance and advice on practical matters.
In the last quarter of the year, a total of 60 new members joined the Shop-Net Programme. In the same period, a total of 653 transactions were completed, which means R447 953.32 was traded by 202 members.
Expenditure
The total cost of the project is R 437 642, which has been paid in full.
| Description | Total Budget | Total Expenses | Over/Under Spend |
| Source and purchase notebooks | 40,000 | 39,942 | 58 |
| Source and purchase data projector | 10,000 | 9,188 | 812 |
| Review marketing materials | 35,000 | 35,000 | 0 |
| Finalization of training materials | 20,000 | 20,000 | 0 |
| Conduct training, recruitment, servicing existing members and client follow up | 227,000 | 470,702 | -243,702 |
| Training materials | 15,000 | 7,253 | 7,747 |
| Venue hire | 16,000 | 3,499 | 12,551 |
| Travel | 37,500 | 35,150 | 2,350 |
| Catering | 10,000 | 12,236 | -2,236 |
| Administration | 27,142 | 26,554 | 588 |
| TOTAL | 437,642 | 659,474 | -221,832 |
Note: The staff cost element of the project was more than anticipated due intensive recruitment of shop owners for training and follow-up, hence the cost-cutting measures implemented in other budget items. Examples of these measures are in-house printing of the training materials and negotiating favourable, and sometimes free, venue cost.
Challenges
A major challenge for the project is the poor attendance for training and unavailability of shop owners for follow-up visits. In a number of instances, shop owners were not available for follow-up visits where Triple Trust representatives had made appointments. This has resulted in a much higher level of resources having to be invested in follow-up than the project originally anticipated. The over-expenditure which has resulted has been carried by other financial resources that Triple Trust has. As this is a pilot project, Triple Trust has actively sought creative ways to minimise the overspend and considers this challenge a key learning for continuation of the project.
Retention of Shop-Net members is proving to be a challenge. The main reason given by struggling owners who fail to participate in the bulk buying programme consistently is lack of capital to increase stock levels. Some shop owners find permanent employment elsewhere and exit the system.
Monitoring and evaluation
Impact study group sessions are planned to be conducted during 2010.
Conclusion
The project has successfully reached the end of its implementation plan. Despite the challenges of poor and inconsistent attendance the project has been able to exceed the number of beneficiaries trained. The project has been able to build up the membership for the Shop-Net programme to encourage bulk buying for Spaza Shop owners.
While the project has been received positively by the beneficiaries, there are clear learning’s on the project management that need to be reviewed if the project is to be continued. As a pilot project the over expenditure of over 50%of its budgeted costs is an indication that the project design did not take careful consideration of the availability of shop owners to attend training and be available for follow up sessions.
The spaza development project is certainly a positive model for enterprise development as it offers spaza shop owners training, support and an opportunity to gain benefit from a bulk buying scheme. A continuation of this project with is likely to yield positive long term impact provided the project design is reviewed to allow more accurate costing of activities.
