Empowering small businesses in the SA furniture sector

South Africa has one of the highest small business failure rates in the world, with a significant number of start-ups closing their doors before they even get off the ground.

Kyle Ballard, head of accelerators at the eThekwini Furniture Cluster (EFC), said: “I believe small businesses in South Africa are struggling to survive due to a few key factors. Coupled with cash flow, many entrepreneurs lack the experience and support they need to grow. Moreover, attracting large customers can be difficult because many small and medium-sized enterprises (SMEs) do not have access to opportunities or, worse still, do not meet customer demands.”

It seems that now more than ever, the right support network for SMEs is the key to increasing their chances of success. This is where the eThekwini Furniture Cluster (a public-private partnership between the eThekwini Municipality, industry and other stakeholders) comes in. In addition to the Business Acceleration Program, EFC recently hosted over 30 small furniture manufacturing companies as part of the EFC Customer Compass Workshop.

These workshops provided furniture business owners with a unique opportunity to engage with leading retailers and manufacturers including Mr Price Home, Sheet Street and Homewood, as well as industry partners.

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They could learn about customer standards and requirements and even identify where they were lacking. The training session focused on highlighting the key questions asked by large customers when evaluating potential suppliers, and SMEs learned how to adapt their value proposition to customer needs and provide evidence of their competence in each area.

The highlight of the day was a panel discussion during which retailers and large manufacturers detailed what they look for in high-potential suppliers. As a bonus, all SMEs attending the conference also received a free EFC Associate Membership, which will no doubt help them unlock further support, resources and networking opportunities within the industry. Additionally, selected SMEs received access to a world-class business building tool that helped them scale their businesses.

These workshops were a unique opportunity for SMEs from the furniture industry. “The ability to engage with large customers and gain insight into their needs and expectations is gold. I believe that it has laid a solid foundation for these companies in terms of the possibility of further development,” Ballard said.

Titus Mazibuko, program manager of the eThekwini Municipality Economic Development Unit, also commented on the situation, stating that turning an idea or product into a profitable, growing business takes more than just money.

“We are committed to supporting the transformation and localization of the furniture sector, and offering programs such as Customer Compass is key to implementing this commitment,” he concluded.