State-owned freight logistics group Transnet has launched the first of a series of enterprise development hubs as part of a drive to expand opportunities for smaller enterprises and new entrants, especially black-owned entities.

Public Enterprises Minister Malusi Gigaba, who officially opened the first hub at the Transnet head office in Johan-nesburg earlier this month, said it would be a “one-stop shop” for entrepreneurs and potential suppliers to Transnet. The hub would offer services, such as business develoment, business registration, procurement advisory services, tax registration and compliance, financial support and guidance on black economic- empowerment requirements.

“The aim of this intervention is to ensure that we increase the participation of small businesses in the mainstream economy, as they have been identified as critical to unlocking economic growth as well as the pursuit of inclusive growth,” Gigaba stated.

In the previous financial year, Transnet had set aside R200-million for enterprise development, R60-million of which was flagged for the enterprise development hub series, which would be rolled out over the next two years.

The hub will primarily target potential suppliers to Transnet and budding entrepreneurs will also receive advice on a broad range of opportunities.

Gigaba said statistics showed that small businesses contrib- uted only 30% to South Africa’s gross domestic product, weighed down by a lack of skills and access to capital, while small busi- nesses in developed countries contributed about 50% to the economy.

“Our aim is to increase the participation of small busi- nesses in the mainstream eco- nomy, as they have been identified as being key to unlocking economic growth. “More than 12-million South Africans rely directly on small businesses for their livelihood. Small enterprises in South Africa employ between 60% and 70% of the employable population. “I therefore believe that it is our responsibility as government to harness this opportunity,” the Minister stated.

The hub, which is the first of its kind in the country and employs ten staff members, will initially be operated five days a week, but this could be increased, depending on demand.

Transnet undertook the initiative in partnership with the South African Revenue Service (Sars), the Gauteng Enterprise Propeller, the Black Economic Empowerment Verification Agency, the National Youth Development Agency (NYDA), the Small Enterprise Development Agency and the Department of Trade and Industry’s Companies Intellectual Property Commission.

Transnet will provide the bulk of the funding, while the other partners will provide advice and expertise.

“The participation of, and partnership with, Sars will ensure that small businesses comply with their tax obligations, while the NYDA will focus on entre- preneurship training and funding for black-youth-owned busi- nesses,” Gigaba noted, adding that the partnership also advanced economic coordination to enable small businesses to reduce transactional costs associated with time lags and information.

Transnet group CEO Brian Molefe added that the partnership was expected to cultivate strategic relationships between Transnet, and provincial and national eco- nomic development institutions, and provide small businesses access to financial and nonfinancial support.

“We have identified the need to create an enabling environment for small players to take full advantage of the economic opportunities presented by our investment programme. “Additionally, our intention is to assist black-owned entities that struggle to build their businesses into sustainable and profitable entities,” Molefe said.

Gigaba further stated: “It is our firm belief that the hub will provide meaningful contribution in supporting and promoting viable and sustainable small, medium-sized and micro enterprises that will have a direct impact on the economy through job creation.”

Transnet’s other current enter- prise development initiatives include the Transnet Itireleng Fund, Transnet-Shanduka Black Umbrellas Incubation, Transnet-Small Enterprise Development Agency Supplier Develop- ment and the Transnet Canteen Project.