SAB's enterprise development programmes : an evaluation of KickStart and Mahlasedi projects

ENGLISH ABSTRACT: Corporate Social Responsibility (CSR) is an illustrious initiative that most companies takeadvantage of in order to position themselves for competitive advantage in the businessworld. Other companies view it as an opportunity to contribute towards the development ofthe society who they find themselves doing business with. Globally, CSR is viewed indifferent context and South Africa has its own unique way of approach.South Africa's historical problems are still prevalent. These include poverty,unemployment, housing and services backlog and economic inequality. The government isfacing a challenge of alleviating most of these by channelling resources to socialdevelopment. However, the magnitude of these challenges cannot be confronted by thegovernment alone, somehow private sector must assist. Undoubtedly several companieswithin the private sector benefited from the legacy of the past. Thus, in a South Africancontext, philanthropic gesture from the sector is not an option, but a responsibility.Government is obviously aware of social mandate and its promise, and of the economy'spersistent sluggishness to employment creation. Of course, the economy is growing atacceptable rate, but its growth is not in synch with job creation. Through research andlearning from developed countries, the government has set its sights on nurturing small,medium and micro enterprises (SMMEs) as the preferred method of fighting joblessness.Broadly, this strategy has shown positive results globally and multinationals havecollaborated with governments to promote enterprise development.The idea gives a broader hindsight that entrepreneurial culture is the way to go to build afoundation of a robust sustainable enterprise development. A number of companies thatvalue CSR have heeded to this call - corporate social investment to sustainable enterprisedevelopment - and one of them is South African Breweries Limited. SAB has variousenterprise development programmes that contribute significantly towards socio-economicdevelopment. This report highlights the significance and relevance of the twoentrepreneurial programmes from SAB, known as the KickStart and Mahlasedi.A main focus will be on the two programmes and how they are implemented, theirrationale and how much has been invested so far to ensure their sustainability andsuccess. The KickStart and Mahlasedi programmes have been in operation since 1995and 2002 respectively. SAB Limited has invested more than R36 million for the KickStartand has helped make 3 200 people to become entrepreneurs. Mahlasedi taverner trainingprogramme has assisted licensed taverners to run businesses efficiently with reports ofowners saving up to 30.53% in monthly liquor sales and being able to grow theirinvestments to 40.54%.An in-depth research into the programmes reveals that the two programmes have madesignificant strides towards sustainable development, despite challenges of a fewcandidates receiving funds in the KickStart programme and provincial licensing hiccups onthe part of Mahlasedi. This could be an example to other companies that are keen andhave not yet gone the route, to transform on CSI strategies. A key success factor in theimplementation phase of these programmes was mentoring of beneficiaries. Huge capitalinvestment can be made into socially responsible initiatives, but without mentoring,sustainable development of benefiting enterprises may not materialise.