Over the last 15 years, the VW Business Support Centre, in partnership with Raizcorp, has assisted 178 local entrepreneurs to grow and develop their businesses. Powerphase Engineering’s Faizal Sallie (left) and Nhaka The Legacy Group’s Pumza Gwabeni (second from right) are two of the programme’s major success stories. With them are Volkswagen Group Africa MD Martina Biene and Raizcorp CEO Allon Raiz. (Photo: Supplied / VW Group Africa ) When Pumza Gwabeni started her renovation and building-maintenance business, she had a secretary, relied on subcontractors and struggled to balance the books.
Her background in entrepreneurship started when she was eight years old, going door-to-door to help her mother sell fresh produce to neighbours. But she would be the first to admit that this did not prepare her for the forward planning required to run a successful construction firm.
“Work was coming, there was cash flow, but my business was not growing and at the end of the day I was losing money,” Gwabeni said.
Three years after enrolling in the business development programme at the Volkswagen Business Support Centre, Nhaka The Legacy Group is turning a profit and growing at 15% annually. Gwabeni employs eight staff members full-time and an additional eight subcontractors at any given time.
“We are currently busy with our business grading that will make my company eligible to take on projects worth up to R10-million. None of this would have been possible without the Business Support Centre,” Gwabeni said.
Her story is just one of many successes celebrated at the 15th anniversary of the Volkswagen Business Support Centre, held at Volkswagen Group Africa’s (VWGA) plant in Kariega, Nelson Mandela Bay.
Through a strategic partnership with business incubator Raizcorp, the Business Support Centre has made a lasting impact on the local business landscape and continues to support and develop small enterprises.
Since April 2011, 178 entrepreneurs have passed through the various programmes offered at the centre. These businesses have generated R733-million in the Eastern Cape and employ close to 2,000 people – 680 of whom joined the workforce only after their employers graduated from the Business Support Centre.
Since completing their programmes, 30 companies have been contracted to VWGA as product or service providers, conducting business to the tune of R93-million.
Speaking at the event, VWGA MD Martina Biene said all business, even one as big as VW, is based on the success and support of its community.
“Without the people building our cars, or the people driving them, VWGA would not be celebrating its milestone anniversary of 75 years. Likewise, the 15-year milestone of the Business Support Centre would also not be possible.”
/file/attachments/orphans/VWDevelopment1_970242_283852.jpg "Volkswagen Group Africa MD Martina Biene praised the good work of the Volkswagen Business Support Centre, which celebrated its 15th anniversary at VW’s plant in Kariega, Nelson Mandela Bay, on Friday, 29 May. (Photo: Supplied / VWGA)")
Biene said that while VW may be an expert in building cars, it continuously identifies the need for strategic partnerships with experts in other fields, and to make a meaningful impact on small business development the group could not have chosen a better partner than Raizcorp.
“Over the years, I have had the privilege of seeing many business partnerships take shape, but few have demonstrated the same level of longevity and consistency as the one between Raizcorp and Volkswagen Group Africa,” Raizcorp CEO Allon Raiz, said.
“The Volkswagen Business Support Centre in Kariega represents far more than an incubator; it stands as a testament to long-term commitment to entrepreneurship and meaningful impact. Together, we have made a tangible difference, supporting over 178 businesses and creating more than 600 new jobs.”
/file/attachments/orphans/VWDevelopment2_576875.jpg "Allon Raiz, CEO of the business incubator Raizcorp (left), and Nonkqubela Maliza, Volkswagen Group Africa’s director of corporate and government affairs, shared insights into how the partnership between VWGA and Raizcorp started, ultimately leading to the establishment of the VW Business Support Centre 15 years ago. (Photo: Supplied / VWGA)")
Raiz reflected on the ups and downs of his own business journey, from failed business ventures to sleeping on the streets, getting back up and building good relationships with mentors who know and understand business.
“People supported me, not my enterprises. I learnt that a business plan is important, but the heart of the business is way more important,” Raiz said.
This mindset led to the development of Raizcorp’s mantra: “Back the jockey, not the horse.”
VWGA’s director of corporate and government affairs, Nonkqubela Maliza, said programmes such as the Business Support Centre are aimed at empowering communities and building better futures.
“For us, corporate social investment is exactly that: an investment of time, expertise and resources. And we rely on strategic partnerships such as this one to make sure we have that impact.”
In celebrating the 15 year partnership with Raizcorp, and the successes that have come with it, Maliza wanted to encourage the broader business community to support entrepreneurs to make a positive impact on the Eastern Cape economy.
Besides its Business Support Centre and other initiatives, VWGA is a founding member of the Automotive Industry Transformation Fund, aimed at financing black-owned companies within the automotive sector. This has resulted in market access to the tune of R1.7-billion for the businesses involved. DM