Experts warn that many township enterprises fail because they neglect the people and relationships that keep ventures alive.
They say that building strong teams and managing stakeholders are skills needed to survive and are no longer optional.
This was the central theme at the Kasi Business Workshop in Bochabela, Free State, hosted by the Township Entrepreneurs Alliance (TEA) in partnership with Nedbank.
The masterclass on building teams and stakeholder engagements reminded entrepreneurs that people and relationships were the backbone of sustainable business.
“You can’t do everything alone. I know many entrepreneurs like to say, ‘it’s my business, my everything’. But in reality, you won’t be able to reach as many customers as you want on your own. That’s why I have a team of representatives in my company,” said Mpho Mokhele, the owner of Kananelo Cleaning Service.
For Mokhele, having stakeholders in your business helps you gain valuable insight and feedback.
“You need feedback when running a business in everything you do with your suppliers and customers as well. These people will help you build support for your business, mitigate potential risks and conflicts,” she said.
According to Ndebank executive head of stakeholder relations and public affairs Nontyatyambo Petros, trust was the foundation of every successful business relationship.
“Do business with people you can trust. That’s the basis of any business. The stakeholder relationship is about building relationships that you can rely on, generate goodwill and create advocacy,” Petros said during the workshop.
“It’s also about consistency, showing your partners that you are dependable and transparent. When stakeholders feel respected and informed, they are more likely to support your business, recommend you to others and even open doors to new opportunities.”
She said that engagement must be an ongoing strategy.
Understanding key stakeholders and nurturing those relationships can open doors to funding, partnerships and new markets.
“Building a team is crucial, communicating, setting expectations and defining roles so everyone is accountable. When team members know their responsibilities and feel empowered, the business runs smoothly, challenges are resolved faster and everyone works toward the same goals,” she said.
Small township businesses struggle to maintain strong financial relationships with banks.
Ben Moseme, founder of C-squared Consumer Connectedness, an events management and marketing company, urged SMEs to prioritise building these connections.
“We need to build relationships with the bank. The South African Reserve Bank (SARB) is nothing without us, and we mustn’t be afraid of them. Without us, they won’t be able to generate revenue or collect anything from us,” Moseme said.
He added that cultivating trust and open communication with financial institutions was critical for small businesses to access funding, manage cash flow and grow sustainably.
“There’s nothing that beats open and honest communication as a value in the business. You need to tell the bank, investors and stakeholders what it is that you want to achieve and be clear with your communication,” said Moseme.
