Woolworths Spends Billions On Small Business Procurement
Woolworths Spends Billions On Small Business Procurement. Woolworths increased its support of small and medium enterprises by 42 percent to R4 billion over the last year, helping to stimulate inclusive growth of the South African economy.
According to Small Enterprise Development Agency (SEDA), South Africa has 2.6 million small and medium enterprises providing jobs to over 11.3 million people, illustrating the vital role these businesses play in the country’s economic landscape. Woolworths’ Inclusive Justice Initiative (IJI) outlines a commitment to doing good business, for its customers, its people and its communities. In addition to the R4 billion spent on SMMEs in the last year, Woolworths also contributed R7bn towards the revenues of black and black women- owned suppliers.
Woolworths has been supporting small and medium sized businesses across various categories including food, fashion, beauty, homeware and the services industry. A number of these businesses benefit from expert mentoring and access to resources required to produce exceptional quality products for Woolworths customers.
Juan’re Clothing is one of the businesses benefiting from Woolworths’ support. A south coast-based supplier, Juan’re has supplied a range of babywear and kids fashion to Woolworths for over two decades. “Over the past 21 years, the Woolworths partnership has helped us create jobs and deliver community support in southern Kwa-Zulu Natal. We now employ close to 300 employees with women making up 95% of our machinists,” says Bernard Gonzalves, CEO of Juan’re Clothing.
“The financial support to source raw materials was the turning point for Juan’re. This set us up for the growth we now have. In our earlier years Woolworths onboarded us onto their Enterprise Development programme and this has significantly enhanced our supply chain and business operations. Their unwavering support has enabled us to overcome challenges, improve efficiencies and develop much needed skills,” adds Gonzalves.
Zinzi Mgolodela, Director of Corporate Social Justice at Woolworths, says, “our approach to small business support takes into account that every enterprise is unique, and requires tailor-made support to grow”. Comet Security, another enterprise that has benefitted from Woolworths’s support, has provided security services to the retails for five years. Comet was initially awarded a contract to look after a single Woolworths distribution centre and has since grown to managing security for three Woolworths sites, including the company’s Head Office in Cape Town.
“We were approved for an ESD loan that made a real difference to our business,” says Comet’s CEO Claude Noruka. “It wasn’t just about getting new vehicles, it was about investing in our future growth. The loan allowed us to plan for the long term, rather than just getting by day-to-day.”
Prior to the loan, Comet’s fleet of vehicles were ageing and staff relied heavily on public transport, adds Noruka, which often resulted in delays when responding to urgent security requests. “The relationship between Woolworths and Comet has had a significant impact not only on our business, but also on our communities. Comet employs 291 individuals, of which 108 are women, 183 men and 151 youth. We are a significant contributor to job creation for a medium-sized business, particularly for women and young people. The relationship with Woolworths has provided our employees with valuable training and skills development opportunities. These include enhanced skills in security protocols, safety measures, emergency responses, and knowledge in handling security technology and systems, which is essential for modern security operations.”
As the South African economy continues to rely on SMMEs for employment growth, it’s critical that corporates play their part in the success of these businesses. Woolworths is committed to creating opportunities to access the economy for more South Africans in all spheres of its influence as a business. The retailer’s commitment to supporting SMMEs is one way this commitment is put into practise.
