The entrepreneurial journey of an Eastern Cape businessman who is a beneficiary of a Coega Development Corporation (CDC) programme has come full circle.
\nToday, the 38-year-old is an investor at the Coega Special Economic Zone (SEZ).
\nHaving established a construction company with no background in the field, Tando Mhlobiso runs a successful array of businesses that deliver an integrated construction service to its customer base.
\nMhlobiso\u2019s journey to success is testament that staying the course when faced with challenges and finding solutions for obstacles does pay off.
\nWhen his plans of obtaining a qualification as an internal auditor were dashed due to his father\u2019s passing in his second year at university and the sudden financial difficulties that his family experienced, Mhlobiso pursued entrepreneurship.
\nWhile he always had a passion for business, he undertook his entrepreneurial journey much earlier than anticipated.
\n\u201cI wanted to break the poverty barriers and the cycle for our family of not being able to afford the expenses for our cost of living. I saw entrepreneurship as the gateway for us to be able to break free from poverty,\u201d says Mhlobiso.
\nIn 2005, he started a car wash, a mobile digital distribution company and a gymnasium but like many small start-ups in the country, these ventures failed to take off. These did little to deter him.
\nThe following year he went into business with a business partner that had a background in civil engineering and they established a construction company. With the many challenges that the business experienced in its infancy, he parted ways with his business partner in 2009.
\nHis never-say die attitude would not let him give up.
\n\u201cI started the current company, which is still going strong 14 years later. We started with Mantishe Construction and this company ended up funding other divisions of the enterprise, which forms the Mhlobiso Group,\u201d he says.
\nMantishe Construction paved the way for the establishment of Mhlobiso Plant Hire, Mhlobiso Asphalt, Mhlobiso Transport, Mhlobiso Concrete and Mhlobiso Properties.
\nMhlobiso Concrete is the youngest addition to the Mhlobiso Group and the company recently moved into the CDC SEZ as an investor.
\nSEZs are geographically designated areas of a country set aside for specifically targeted economic activities, supported through special arrangements (that may include laws) and systems that are often different from those that apply in the rest of the country. According to the Department of Trade, Industry and Competition, spcial economic zones are a tool to help promote industrial agglomeration, build the required industrial infrastructure, promote coordinated planning among key government agencies and the private sector, and guide the deployment of other necessary development tools.
\nCoega SMME Development Programme
\nBack in 2009, Mhlobiso enrolled to participate in the CDC small, medium and micro-enterprise (SMME) Development Programme where he learned the ropes of the construction industry.
\nBeneficiaries of the programme have access to economic opportunities and benefit from its skills development programme. The programme targets SMMEs that are at least 51% black owned, with a Construction Industry Development Board (cibd) grading of 1 to 7.
\nEstablished by Act 38, of 2000, the cibd is a public entity created to lead industry stakeholders in construction development.
\n\u201cI registered Mantishe construction under the Coega SMME Development Programme in late 2009. Mantishe Construction is now Grade 6CE and recently registered 6SB which is classified as highly specialised works,\u201d he says.
\nEnrolling in the programme changed the trajectory of his business, providing him with the opportunity to penetrate the market, which at the time was mainly accessible to established businesses.
\n\u201cWhat Coega did was pivotal for small businesses as they would create packages for Grade 1 to Grad 3s, to come in under main contractors to learn from the established businesses. They created an opportunity for us to grow.
\nHe recalls how the programme provided a learning opportunity for him.
\n\u201cDealing with bigger companies was an educational exercise because I didn\u2019t have a background in the construction industry. I quickly learned about cash flow, how to manage the site and manage employees. I learned a lot during that time and it prepared me to take on contracts independently. It made me a better contractor,\u201d he says.
\nThe programme assists SMMEs to become sustainable through raising awareness and encouraging Broad-Based Black Economic Empowerment (B-BBEE) compliance; assisting Black Economic Empowerment (BEE) certificate attainment under the amended codes; and promoting the advancement of suppliers within the CDC\u2019s supply chain.
\n\u201cThe SMME training was aggressive and at times stressful because the site was live and there were timeframes attached to the works, all these things I had to understand very quickly. When the project was done, I knew this was what I wanted to do, and I was ready take on the world, I was determined to make this work,\u201d he says.
\nThe CDC is headquartered in the city of Gqeberha, Nelson Mandela Bay Municipality with a strategic operational footprint in South Africa and beyond the borders on the African continent.
\nAs the operator and developer of the Coega SEZ, the CDC\u2019s overarching objective is to boost economic growth and job creation through investment, in pursuit of socio-economic development.
\nThe SEZ is demarcated into 14 zones for synergy and supply chain integration, which garner investment in the energy, metals, logistics, automotive, chemicals, aquaculture and agro processing, maritime, and business process outsourcing sectors.
\nGrowth
\nLooking back on his journey, Mhlobiso remembers the early days being challenging due to a lack of funds to finance his projects. He had to learn how to manage the overall operation of his business and learn how to manage people.
\n\u201cIn the beginning I looked for the work, did the marketing and worked as the foreman. I had to do everything for the company until I was in a position to put people in place to do that for me,\u201d he says.
\nHis companies employ over 100 people.
\n\u201cIt took me a good 16 years to get to where I am. I employ 150 employees across Mhlobiso Group. All our permanent employees have pension fund savings and medical aid allowance to secure their livelihoods in retirement, including their health needs. This is something I\u2019m deeply proud of,\u201d says the Mhlobiso Group Founder and Manager.
\nHe has credited his family, particularly his wife Zandile, for playing a significant role in the success of his businesses.
\n\u201cI run the businesses with my wife. She has played an integral part of the successes of our business from inception. She has provided support, advice and has been a source of comfort during tough times. This is a family owned business,\u201d he says.
\nMhlobiso encouraged aspiring young entrepreneurs to \u201cgo for it,\u201d as the impending Fourth Industrial Revolution (4IR) offers a variety of opportunities that they can explore.
\n\u201cI see a lot of young people getting into the Information technology (IT) space. There is plenty of opportunities in that industry.\u201d
\nHe acknowledged that the journey would not be easy, as it requires commitment and consistency.
\n\u201cI am happy that I started off young because the younger you are, the braver you are. As you grow older, you have more responsibilities and therefore you always calculate the risks associated with pursuing entrepreneurship. No one said it was going to be easy, but I promise, there is no greater satisfaction than turning nothing into something.\u201d
\nTo participate in the SMME programme, enterprises can register on the CDC database. Application forms are available on (coega.co.za > Coega Services > SMME).<\/p>\n
Source: South African Government News Agency<\/p>\n","protected":false},"excerpt":{"rendered":"