Vision, Mission & Aims
Uthango Enterprise Project
The Uthango Enterprise Project, founded in 2003, is located within the community of Masiphumelele, an informal settlement on the outskirts of Noordhoek Valley, Cape Town. The project is designed to produce Local Economic Development (LED) for micro-businesses through educating local entrepreneurs, and providing access to local and international markets. The Foundation for Economic and Business Development (FEBDEV) in the Western Cape is the implementing agency, with funding and oversight provided by the Uthango Enterprise Board and the National FEBDEV agency. The Claremont International Rotary Club was the source of the initial funds, along with the City of Cape Town, and co-founded the project in partnership with the Uthango Enterprise.
The Rotary Club of Claremont provided R2 million in initial funding, while the City of Cape Town (CCT) allocated land on the premises of False Bay College for the first 3 of the 5 phase project. The Foundation for Economic and Business Development (FEBDEV) in the Western Cape implements and manages the project. The national FEBDEV agency and the Uthango Enterprise board of directors receive reports from the Western Cape arm of FEBDEV concerning operations, and provide guidance and support for the project when needed. After 5 years, mechanisms will be in place for Association Members to be fully self-sustaining.
Understanding the micro-enterprise and informal business landscape within the communities of Masiphumelele and Ocean View, informal settlements on the outskirts of Noordhoek Valley, Cape Town, and addressing those needs systematically form the cornerstone of the Uthango Enterprise Project. The integrated components of the project are designed to incorporate small or fledgling local businesses into the 2nd economy through access to local Infrastructure, Micro-Enterprise Funding, one-on-one Business Coaching, Business Services, Networking and Market Development, Technical Training, and life skills development. Beneficiaries enter the programme through an adjacent Further Education Training (FET) institution located at False Bay College, or as local business owners.
The goals of the programme are accomplished through a 5 phase model designed to grow micro-enterprises into strong local business, and create socio-economic development for business owners and employees. The 5 phases are:
Phase 1: An enquiry in the community encouraged local business owners to identify ‘what works’ in their business practices.
Phase 2: Is the creation of physical and virtual business networks, located on the premises of the FET institution, in order to place emerging entrepreneurs in pre-defined supply chains.
Phases 3 and 4: Emphasises the growth of both graduates’ start-up businesses and micro-enterprises from the community itself, combining these into a dynamic learning network for entrepreneurs called the Uthango Association.
Phase 5: Focuses on the construction of an Enterprise Park at the entrance of Masiphumelele to create a business resource and innovations' hub, with the goal of creating a space to market products. The final phase emphasises the business development strategies of beneficiaries and the project itself towards sustainability.
Innovation
Innovation in the project comes from using a virtual 'map' of informal, micro-enterprises and Home-Based Organisations on a Geographical Information System (GIS) and Business Development Needs Analysis chart to assist in planning for LED interventions. This allows for businesses in Masiphumelele and Ocean View to create strategic partnerships based on proximity, and shortens the supply chain. Constructing the Enterprise Park at the entrance of Masiphumelele created a business resource and innovations' hub, where manufacturers and retails participating in the programme can bring their goods to market is innovative.
Effectiveness
258 Community-Based Organisations (CBOs) have received training or advice with their business models. In addition, 24 businesses have been involved in intense mentorships. Of those 24, 92% have showed a measurable increase in income of more than 50%, 83% have increased market demand for their products, and 96% of these beneficiaries have opened bank accounts and used the facility to manage their finances more effectively. 88% of participants showed an increase in self confidence; and 58% showed a measurable improvement in living conditions, ranging from constructing their own house, placing children into a school of choice or employing all family members.
Poverty Impact
During the initial stages of the project, 30 skilled youths were employed as fieldworkers, the 24 business comprising the Uthango Enterprise Association employ 117 community members, and 72 new full time positions have been created.
Sustainability
The combined income from the beneficiaries of R1 375 200 exceeds the initial start-up grant of R889 000.
Replication
The Uthango Enterprise Project is a best practice model in micro enterprise development. The role of local government is indispensable in this regard. Without this level and nature of support, the project will not be replicable in any other area.
Partnerships
• City of Cape Town
• Rotary Club of Claremont
• Foundation for Economic and Business Development (FEBDEV)
