Ford's “Dragons’ Den” provides entrepreneurs with help to meet local business challenges

Published Oct 30, 2023

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It’s not easy being a start-up SME business in South Africa especially when you come from the townships.

Barriers to entry are huge because you may have a good idea, a well set out business plan and be super enthusiastic but the reality is almost no financial institution will take the risk and I’ve heard horror stories of loan sharks ripping the heart and soul out of those that have tried.

There is however relief with NGOs, corporate South Africa and certain banks that have established divisions to promote SME finance.

I’ve often said that if it wasn’t for corporates in South Africa we would be far deeper into the abyss as the government continues to fail the marginalised and the country’s residents at large.

One of these is the Ford Resource and Engagement Centres (FREC), an international Ford Fund innovation that brings non-profit organisations, residents and leaders together to support local neighbourhoods and in this case Mamelodi, which borders on Ford’s Silverton production plant where the Ranger is built both for local and export consumption.

It’s described as a micro-business incubator that focuses on empowering micro-businesses and entrepreneurs in the township by offering an accredited business course and by assisting the businesses with a small investment grant to help them move to the next stage of their business.

Since 2019, FREC has invested R1,199,895 in over 50 micro-businesses.

Part of the programme is a business pitch day called Tinyeleti Tsa FREC, which loosely translated means “Stars of FREC” where shortlisted candidates pitch their businesses in front of a panel of judges to request an investment in the form of working capital, equipment or a “user-friendly” business loan.

A bit of a mini Dragons’ Den if you will.

I was asked to be one of the judges on the panel along with Ford staff and senior non-profit organisation members including Future Families which also focuses on vulnerable children and orphans as well as young entrepreneurs.

We were handed score sheets to mark six categories out of one to five. The criteria are:

  • How well did the entrepreneur present themselves and their business?
  • Does the business have potential to impact the community?
  • Does the investment required indicate potential for innovation in the business?
  • Is there an opportunity for growth in the business and is it feasible?
  • Does the supporting financial model and historical financials indicate a successful business?
  • Did the entrepreneur answer all the questions from the panel adequately?

There were three “prizes” at stake; R25,000, R15,000 and R10,000. And while it may not seem much in the greater scheme of things, for them it would make all the difference.

Four nervous and enthusiastic candidates ranging from detergents, hair care to interior decorating appeared before us and we duly marked our score sheets.

A recurring theme throughout was how Covid restrictions decimated not only large corporations but individuals and families that were literally down to their last few rands.

But South Africans are a hardy bunch with a “kannie dood” attitude and it was incredibly heartening to hear how these individuals struggled, researched and literally started in back rooms and garages to make their ideas fly.

Stories like selling their wares outside malls to now being on the shelves in those same malls, fledgling joint ventures with suppliers and overcoming enormous odds certainly gives one hope for the future.

Because the Tinyeleti Tsa FREC isn’t a cold formal and inflexible process there’s always room for some leeway when it comes to who gets what.

I suppose that’s also a bit like South Africa; there are many ways to skin a cat.

There’s a skills set within the organisation beyond merely financial aid that among others include construction, engineering, financial planning and business management so candidates are able to be assisted in other ways too.

It means that in a case where one candidate had secured a contract with a major FMCG supplier could be assisted by ABSA and another one by using the construction expertise to expand the business.

And while Ford may be a mega billion dollar organisation, in a situation like this there’s a human face that understands the challenges these guys face and as long as the business is sound and there’s a workable plan for the future everyone walks out a winner.

The criteria is anyone with matric who has a business idea that they would like to implement, or an existing business that they would like to grow.

FREC is based at Ford Motor Company of Southern Africa in Silverton, Pretoria.

It has an ongoing intake of entrepreneurs, so anyone interested in being part of the programme can register at any time.

They can be reached on email at info@frecsa.co.za or via WhatsApp on 067 714 9731.