But charitable giving is merely the tip of the iceberg when it comes to the ways in which businesses can contribute towards the welfare of the communities and cement their position as good corporate citizens. Gugu Mjadu, executive general manager: marketing at Business Partners Limited (BUSINESS/PARTNERS), lists six ways in which businesses are sure to become pillars of their community.
In a certain sense, it sounds like the polar opposite of being community minded or charitable. But being profitable is the single biggest contribution that a business can make to the community in which it is based. It means that the service it provides is sustainable, and that community members will be able to rely on it being there next year and the year after.
Being profitable means that the jobs provided by the business to members of the community are stable, dependable and long-term.
In contrast, the respect earned by the big-tipping type of business owner who prioritizes buying flashy cars over business sustainability is as superficial and short-lived as the business itself.
All over the world, small and medium businesses are responsible for a huge amount of work-place training, simply because they cannot afford to appoint fully trained workers like big corporations can. They appoint youngsters with the understanding that the salary will not be great to start off with, but there will be lots of training. And in a small-business setting the worker is often in close proximity to the owner, who can constantly give expert feedback and on-the-job training.
In South Africa, where state-provided basic education and vocational training is to a large extent struggling, the role of the small business in keeping vocational skills alive has become absolutely critical. The few workers who are well trained and educated tend to work for bigger companies, while small businesses tend to employ untrained youngsters from their community in return for on-the-job training.
Yet the idea of training sits uncomfortably with many small business owners, who fear that all their investment in the on-the-job training of a youngster will be lost when they are poached by bigger businesses as soon as they are proficient.
It is bound to happen at some stage to every small business, but the fear is overrated. Research shows that one of the best ways to instill loyalty in workers is by providing skills development. The few who do leave for better-paying jobs are indeed the business owner’s contribution to the industry skills pool, which, although it may not be immediately apparent, benefits every business in the long term.
A business owner’s presence in the community provides another crucial contribution to the development of South Africa, which urgently needs role models to show the youth that self-employment or entrepreneurship is a valid and worthy alternative to working for someone else.
Business owners do not have to be flashy or glamorous in order to make an impression on the youth. A solid presence as a role model can be established by low-key involvement such as giving talks at schools or serving on the board of a local community project. And here charitable giving can play its most important role. When business owners sponsor the kit of a local soccer team, for example, the value they provide as role models is worth much more than the price of the donation.
Apart from the general role modeling that business owners can do in their communities, they can also focus on imparting skills and knowledge to up and coming young business owners in their industry.
Even though they are strictly speaking competitors, the bond developed by mentorship is beneficial to both businesses. Experienced business owners can refer overflow work to the young entrepreneurs they mentor, and can strengthen their capacity by forming joint ventures with them.
Experienced business owners can also join, or set up, formal mentorship programmes. BUSINESS/PARTNERS, for example, has a pool of more than 300 business owners in its mentorship programme. Many of the participants are retired business owners who want to contribute to South Africa’s economic development by sharing their extensive experience with the younger generation of business owners.
Workers have well established structures and methods to make a noise and exert pressure when they feel their rights are being threatened. Students are again finding their voice to raise awareness about their plight. But the voice of the business owner is largely silent, even in the face of serious damage inflicted by unnecessary red tape. Big business, when they do speak up, often do not face the same challenges as small businesses.
An important part of the problem is that business owners are too busy to spend much time participating and setting up local business associations. But it also has to do with a lack of a culture of activism. Join your local chamber or business association, even if it is dominated by big business, and even if you contribute just an hour or two per month. In their numbers, the voice of small business can become powerful.
You don’t have to change the world like Google, or shake up industries like Elon Musk. Incremental and localized innovation is hugely beneficial to the community. Every time a business introduces something as simple as SMS notifications to its clients, or a new method copied from overseas, life becomes a little more convenient, products and services a little better or cheaper, and the business itself a little stronger.