1. Pick n Pay – a scale business
R63bn turnover
7 countries
>1000 stores
50% Franchised
~100 000 employees
Estimated to have about 28.5%
market share of the top 4 players
in South Africa
1
FY14 results
2. “Make the customer Queen and she will make you King”
Core Philosophy 4 legs of a table
4. Be ethical
Obey laws and
regulations
Be profitable
Contribute resources
towards community
development & welfare
Obligation to do what is
right, just and fair and to
avoid harm
Law is society’s
codification of right
and wrong.
The foundation upon
which all others rest
Economic Responsibilities
Legal Responsibilities
Ethical Responsibilities
Philanthropic
Responsibilities
Adapted from: Carroll, 1991
Be a Good
Corporate citizen
8. Small Business
Incubator
To facilitate SMMEs’ and EMEs’ intro to
retail through mentorship, guidance and
support using the PnP structure
• 3 Tiers of support
•BABY < R5m
•TODDLER between R5m – R8m
•TEEN > R8m
•Giving Access to
Market and mentorship
for small entrepreneurs
Nontwenhle Mchunu
former chocolate supplier to PnP
9. • Coming together –
• empowering individuals,
• creating jobs,
• alleviating poverty
• Advice on and access to Financial assistance
Sibusiso Tshabalala – entrepreneur – charcoal supplier to PnP group
10. Cwebeni Project
• Specialised skills
developed
• Environmental impact
• Community participation
• Electricity and water
• Telkom connection
11. CHALLENGES TO ACCESSING
FUNDING
• Slow pace of process
• Complicated application process
• Conduit organisations/ agencies
• Response time adjusted according to size of applicant ( smme/ start ups
cannot afford to wait)
• Call centre system for advice and guidance
• Small business cannot navigate through the red tape
• Insufficient communication between market players
• Lack of flexible funding
12. OUR EXPERIENCES
• Dept of Agric partnership ( Siyasiza , Vrede, Food basket for
Africa, Dreamland Piggery )
• DTI funding options (Fairharvest )– timelines do not benefit
small business
• Lack of flexibility within parameters ( Rise uniforms )
• Govt contracts do not have favourable payment terms
16. ED PUBLIC / PRIVATE PARTNERSHIP
Access to market
•Off take
agreement
•mentorship
infrastructure
•Pack houses
•Transport
•equipment
Financing
•Working capital
Business management
•Accounting skills
•HR/labour
•Quality
•Preferential trading terms
Operational
services
•Distribution
•Merchandise
•marketing
Regulatory
environment
•compliance
Govt
PnP
17. PROPOSED SOLUTIONS
• Utilise different models for different categories
• Engage with all market players for a comprehensive
solution ( banks, retailers, agronomists, technologists
etc )
• Flexible solutions driven by business needs
• Limit media exposure until agreed size has been
achieved or sustainability guaranteed
18. HURDLES FOR SMME’S
• Compliance (Health / safety audit, SARS )
• FINANCE
• Business management skills ( business plan,
budgeting, cash flow)
• Capital investment ( buildings, boreholes, trucks)
• Infrastructure (Fencing, electricity and security)
19. “Some opportunities
only come along once
in a life time” Saraah, flower
supplier to Pick n Pay stores
• We have an obligation to
create opportunities
• Enterprise development
builds the nation,
empowers individuals and
helps meet demands of
society – Ackerman Pick n
Pay Foundation
20. OUTCOMES
• Firm commitment to growing ED in SA
• Clear guidelines , roles and responsibilities
• Efficient and effective PPP with deliverables
• ‘One-stop’ platform for Small Business
Total qualifying spend = R 46.8b
Multinationals and large South African corporates = R31.7b (multinationals + South African companies that we spend more than R100m on)
Medium South African companies = R9.4b (South African companies that we spend R35m-R100m on)
Small companies = R5.6b (QSEs, EMEs and other suppliers that we spend less than R35m on)
“Life is liking making chocolate, it is a refining process.
One drop of water can spoil a whole batch.
In the same way, a small amount of negativity or regret can spoil a life…”
- Stories x 4 (30 seconds each)- Please let me know which 3 you'd like to spend a little more time on?- Focus story 1 (1 mins)- Focus story 2 (1 mins)- Focus story 3 (1 mins)- What we give them (accounting, mentors etc)
“Some opportunities only come along once in a life time –
If you don’t take the chance, it may never come along again…
So make the most of every opportunity, and always do the things you love!”