BusinessPREMIUM

Rebuilding small firms gets going

In the aftermath of the violence and looting in KwaZulu-Natal, small and micro enterprises are rising from the ashes thanks to big-hearted individuals and companies determined to rebuild businesses and support entrepreneurs.

Rebuilding a dream: Lucky Lekgwathi at his vandalised Soweto restaurant. Picture: Tankiso Moremi
Rebuilding a dream: Lucky Lekgwathi at his vandalised Soweto restaurant. Picture: Tankiso Moremi

In the aftermath of the violence and looting in KwaZulu-Natal, small and micro enterprises are rising from the ashes thanks to big-hearted individuals and companies determined to rebuild businesses and support entrepreneurs.

This rebirth is being made possible by the establishment of the KwaZulu-Natal Business Rescue Fund, a collaboration between nonprofit organisation The Peace Agency and the iLembe Chamber of Commerce.

The iLembe district consists of four local municipalities between Durban and Richards Bay: Mandeni, KwaDukuza, Maphumulo and Ndwedwe.

Within 24 hours of it being set up, the fund had attracted more than R100,000 of the R300,000 it is seeking to raise, said Justin Foxton, CEO of The Peace Agency.

The fund plans to begin by rebuilding two businesses: Just Meats, a buy-and-braai shop and butchery in Mandini, and Lindaz Kitchen, a popular eatery in Maphumulo.

Foxton estimates that R200,000 is needed to rebuild Just Meats and R100,000 to rebuild Lindaz Kitchen.

The Peace Agency, which was set up by Foxton and his wife Cathy 11 years ago, is appealing to individuals and businesses to "dig deep" and donate as much as they can - even drawing from their savings and investments to help.

Foxton said he is calling on people to make a sacrifice: "We need to intentionally compromise our own savings so that those who have significantly less can just survive."

People have realised they need to give beyond their normal giving, said Foxton, who hopes the rescue fund will build bridges across the economic divide.

"One of things we've all realised is that we have this massive inequality gap. I want for this to be a healing exercise. It's not just about rebuilding a business. It's a statement of intent to move money from the top to the bottom."

Foxton said the agency had grappled with whether to give small amounts to many businesses or to give plenty to just a few. It decided on the latter because of its experience in the social development space where "we're a tiny NGO, but we do small things well".

The Peace Agency chose to partner with the iLembe Chamber of Commerce because of its connection to the community, Foxton said. "We chose the chamber so that the due diligence is done for us."

He said donations to the rescue fund have come from small corporations, small companies and individuals, including a few international donors.

"It's a beautiful range," he said, emphatic about not targeting large corporations because they are "hugely put upon".

He said many churches can mobilise members to give R100 each and they can help restock a micro business, but that can have unintended consequences.

If you want to help restock a spaza shop, it is more effective to give money rather than stock to the business owner, so the owner can source from their suppliers the quantities and merchandise they require. By buying stock you break local supply chains, he said. Rather "keep the money in the community".

And even though it is good to restock shops, if the business's premises have been damaged, restocking will not address the biggest need.

Just Meats, a shisanyama and butchery established in 2008, is an institution in Mandini. Established by Duduzile Joyce Ncanana - known as Mama Joyce - it provides full-time employment for 12 people and casual work for four.

Ncanana, who won the iLembe Chamber's Entrepreneur Competition in 2014, said the looting of her shop has been devastating.

"They took everything. The freezer room was completely emptied. They took fridges, scanners, printers, radios, office chairs, and broke doors. It was like a hurricane had hit. It was unbelievable. Like a nightmare. I felt like running away," she said.

Ncanana had insured her stock and cash, but she said she does not know when she can expect the insurers to pay out. "They are dealing with a lot of claims."

Linda Ntuli was less fortunate as he did not have insurance. His restaurant - which is open seven days a week, 7am to 8pm - was also cleaned out.

"Gas stoves, electrical stoves, microwaves, fridges, one big freezer - all stolen. And furniture destroyed. It's all gone. They took my pension, in fact," he said.

"When you start a small business, they give you six months. But we've survived four years, meaning we are sustainable. During the lockdown, while we had to stop trading, at least we had our stock. Now, they've taken it all. What can you do without equipment and stock?"

But Ntuli said he is not without hope.

"My vision is to franchise. In my area, KFC can't make a profit, but more Lindaz Kitchens can - because you don't need much infrastructure. With a winning mentality, a good work ethic and certain standards, you can create small franchises in our small towns."

Ncanana and Ntuli both said they had considered not reopening.

Ncanana said that by continuing to trade, she is able to inspire others. People are even encouraging her to not only reopen but to take her business to the next level. "When you continue, you give strength to those who are down," she said.

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