TechnoServe empowers entrepreneurs to build businesses that break the cycle of poverty. In South Africa this is a significant sector with upwards of three million small businesses representing 95% of all enterprises and contributing around 45% to the country’s GDP, making the success of the SMME sector a vital part of our economic growth.

Research shows that South Africa became a net importer of food for the first time in 2007 due to population growth, and to the fact that employment in agriculture is on the decline, particularly among “skilled labourers”.

Farming is characterized by two extremes: black farmers who farm for subsistence purposes (91%) and those who farm for income generation (2%); and black farmers who farm with limited knowledge and facilities vs. white farmers with an agricultural background and necessary facilities. The income disparity remains significant. TechnoServe works with these black farmers to enhance their output which in turn develops the agricultural value chain.

Close to 15 million people receive social grants in SA. A recent UN report on food rights in South Africa sets the scene while research by TechnoServe’s Mandla Nkomo on the Viability of Business Plan Competitions looks at indicators such as the total early-stage entrepreneurial activity (TEA) rate that measures the prevalence of start up businesses in the adult population of a country and reveals that South Africa ranks 23rd of 43 countries, with a rate of only 7.8%.

Nkomo’s report indicates that there are specific constraints in the South African environment that either discourage or hinder existing and would-be entrepreneurs. Chief among them are the usual suspects of access to start-up and expansion finance, markets, technology and other resources.

For entrepreneurship to thrive, there has to be an ecosystem in any country that both encourages, capacitates and continuously supports the creation of entrepreneurial ventures. TechnoServe provides support and training for entrepreneurs to develop business plans, link with markets and seed capital, improve management skills, produce higher-quality products and services and operate more efficiently – all essential for businesses to thrive and expand.

We work closely with funding partners to design programmes that meet the funding partners’ goals in terms of enterprise development, preferential procurement or corporate social investment yet delivers impact to the participating beneficiaries via agriculture value chain development, enterprise development or local economic development.

Programmes can be designed at a geographically specific or national level and can be tailored to include specific communities and gender considerations.

Our entrepreneurial programmes deliver 50% - 60% of the total programme cost directly to beneficiaries with 40% - 50% being used for implementation.

To date our programme participant profile has been 100% previously disadvantaged South Africans with a close to 50% balance between male and female participants. This criteria results in a recorded Enterprise Development spend of R1,25 for every R1 invested.