GreaterGood South Africa

Making perfect business sense: SAB and Basil Read
Thursday, November 5th 2009

The principles of sound practice in Corporate Social Investment are best exemplified in tangible case studies that are relevant to the South African landscape. We spoke to Chris Meyiwa from The South African Breweries (SAB) about KickStart, their successful youth entrepreneurial programme. We also share insights with Laurent Bouchacourt from Basil Read, who demonstrate how their commitment to investing in maths, science and technology makes perfect business sense.

KickStart a business

SAB launched its KickStart Youth Entrepreneurial Programme in May 1995 as one of its flagship corporate social investment initiatives. Initially, the programme focused on poverty alleviation but the thrust and focus of KickStart is now firmly rooted in fostering an entrepreneurial culture amongst the country's youth and the creation of sustainable enterprises. A recent independent survey indicated that just over 80% of the people who won grants through KickStart from 2001 to 2007 are still in business. Compared to national averages of fewer than 30% of businesses surviving the first 3 years, these results bear testimony to the sustainability of the programme.

Accountable design

The Kick-Start programme is open to previously disadvantaged youth aged between 18 and 35 who want to start or grow their own businesses. Since 1995, SAB has invested more than R45 million in grant funding in the programme, which promotes business awareness, helps participants develop business skills and provides start-up grants.

An average of 120 candidates from around the country are selected to join the programme, where they attend business skills training courses. The participants must then put their creativity and business knowledge to work by preparing a business plan which, if successful, will win them a seed capital grant of between R50 000 and R150 000.

After six months of intense mentoring, three businesses are selected from each region to enter the national finals, where the top performers will win an additional R750 000 between them, plus further mentoring. Selection is based on the performance of the businesses, the use of the original grant money, the impact KickStart has had on the businesses and their sustainability. Twenty-seven businesses received grants and over R6.7 million was invested by SAB in the 2008 competition.

Perfect alignment

"At SAB we believe that the best way to help society is to succeed as a business - providing products that people enjoy, creating jobs and wealth, contributing to taxes and helping others to advance economically," comments Chris Meyiwa, SAB Enterprise Development Manager. KickStart ticks all the right boxes in terms of societal need, legacy and reputation and alignment with SAB's business model. Enterprise development programmes such as KickStart are more sustainable than other forms of CSI investment because they create businesses that are self perpetuating. The programme is also closely aligned to government priorities of job creation and reduction of unemployment rates, scoring highly in the enterprise development category of the BEE scorecard.

Regular measurement

Chris continues: "We believe that meaningful impact will be made to the lives of young people and to the economy if we can foster a culture of entrepreneurship. While the business case and support for KickStart is strong, it is important for us to continue to revisit the beneficiaries on a regular basis to witness the benefits firsthand. The programme is continually measured both internally and externally."

Staff involvement

One of the aspects that remain special about KickStart is that it is completely funded and managed in-house. SAB have full-time resources committed to the programme and leadership and staff are encouraged to volunteer their knowledge and expertise to their young KickStarters annually.

Building opportunity

As a leading engineering and contracting services company, Basil Read is involved in construction countrywide. One of their clients aims to erect a large industrial plant in the Ndwedwe municipality, creating an ideal opportunity for Basil Read to assess the current social needs in the community. Basil Read worked with GreaterCapital to identify a CSI project that would benefit this community and that was concurrently of relevance to the engineering sector.

Basil Read made a strategic decision to invest in a project implemented by the Centre for Advancement of Science and Maths Education (CASME). "The number of maths, science and technology matriculants and students is well below what the industry requires to renew our talent pool. More broadly, Basil Read believes scientific studies should be a key focus for a developmental state such as South Africa in a technology-driven world," says Basil Read's Director of Strategic Planning & Business Development, Laurent Bouchacourt.

Beneficial partnerships

Basil Read is actively involved in Public Private Partnerships in South Africa and works in close partnership with GreaterCapital on all their CSI projects. This partnership serves to ensure full compliance and alignment with Government's objectives on their various initiatives and seamless deliverability of CSI projects to the local communities.

Social stock exchange

As a South African Social Investment Exchange SASIX investor, Laurent explains that the exchange's careful selection process and the range of project offerings aligned to their company objectives, has made a valuable contribution to the selection and outcomes of their CSI initiatives. "SASIX offers a centralised management of our company's CSI initiatives and budget - which is not our core business. Reporting is clear and unequivocal and we are able to measure the impact of our investment on the local beneficiaries," he adds.

Another vital benefit of having SASIX monitor their projects is that CSI managers receive accurate reports to deliver to company shareholders which, in turn, speak into the BBBEE Codes of Good Practice and Scorecard.

"Basil Read is very proud of its association with SASIX and looks forward to many more years of fruitful partnership," concludes Laurent.

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