Enterprise Development in Consulting Engineering

Presented by:

Shamiso KumbiraiKulani EC

Energy Built Environment

Advisory Mining

Water & Wastewater

Transport

❏ Entrepreneurial Orientation (EO) of engineers in South Africa

❏ AIM: Determine EO of engineers in SA as a factor contributing to economic growth

❏ LITERATURE: EO has 5 dimensions – innovativeness, risk-taking, proactiveness,

competitive aggressiveness, & autonomy

❏ METHODOLOGY: Compares EO of

○ engineers in employment (non-entrepreneurial engineers) &

○ engineers in self-employment (entrepreneurial engineers)

Study by A.J. Antonites and B.T. Nonyane-Mathebula (GIBS, 2010)

ENGINEERS AS ENTREPRENEURS - a study

ENGINEERS AS ENTREPRENEURS - findings

FACTORS CONSIDERED ENTREPRENEURIAL ENGINEERSNON-ENTREPRENEURIAL ENGINEERS

AGE50% → 30 – 40yr14%→ 20 – 30yr

50% → 30 – 40yr24.8% → 20 – 30yr

BUSINESS-RELATED QUALIFICATION

60% with qualification 47% with qualification

GENDER90% Males10% Females

79% Males21% Females

RACE

48% Black46% White0% Coloured6% Asian

55% Black38% White1% Coloured6% Asian

2018/19 CESA MEMBERSHIP No. %

> = 51% BLACK-OWNED 308

GEN > = R25 mil & < R50 mil 52 17%

QSE > = R6 mil and < R25 mil 129 42%

EME < R6 mil 127 41%

NOT BLACK-OWNED 299

GEN > = R25 mil 128 43%

QSE > = R6 mil and < R25 mil 46 15%

EME < R6 mil 125 42%

> = 35% BLACK WOMEN OWNED 15

GEN > = R25 mil & < R50 mil 1 6%

QSE > = R6 mil and < R25 mil 10 67%

EME < R6 mil 4 27%

FACING THE NUMBERS - CESA

Situational factors hindering entrepreneurial entry amongst non-entrepreneurial engineers

❏ Inability to access financing

❏ Inability to take risk

❏ Perceived lack of business acumen

ENGINEERS AS ENTREPRENEURS - situational factors

The act of investing time and capital

in helping establish, expand or

improve businesses.

source: https://trialogueknowledgehub.co.za

ENTERPRISE DEVELOPMENT

https://trialogueknowledgehub.co.za

❏ Business skills deficiencies of small entrepreneurs

❏ Gap between the objectives of enterprise development and their application

❏ Lack of measurement frameworks to monitor the impact of enterprise development

programmes

The Impact Amplifier Report (2013)

ED CHALLENGES

2 Forms of ED

1) Investment in black owned and black empowered

enterprises AND/OR

2) Joint ventures with black owner and black empowered

enterprises that result in substantive skills transfer.

South Africa's Economic Transformation: A Strategy for Broad-Based Black Economic Empowerment (2003:22)

ENTERPRISE DEVELOPMENT

2 Phases of ED

1) Investment in black owned and black empowered

enterprises THEN

2) Joint ventures with black owner and black empowered

enterprises that result in substantive skills transfer.

ENTERPRISE DEVELOPMENT

❏ 4 year ED relationship

❏ From Investment to project collaboration

■ 2015-2018 Investment years

■ 2019 start of joint ventures

HOW IT STARTED?

❏ Technical project delivery

❏ HR support

❏ Financial advice

❏ Operational support

❏ My ED experience:

■ Hot desking for cost-effectiveness

■ A distinct realisation of the benefits of ED

■ Open communication & mutual respect

ED BENEFITS TO SMME’S

❏ Capacitating for strengthened JV partnerships

❏ Inexpensive B-BBEE scorecard

❏ Accountability for SMME development, job creation and poverty reduction

❏ Entrepreneurial Innovation

❏ Emerging Professionals training and interaction

ED BENEFITS TO CONTRIBUTOR COMPANIES

Invest to strengthen. Partner for growth.

COMMITMENT TO ED IN CONSULTING ENGINEERING

Continued study to:

❏ Measure the impact of ED agreements for both parties

WAY FORWARD...

THANK YOU!

Presented by:Shamiso Kumbirai

Kulani EC