Initiated in 2006 and completed in 2009, this project aimed to spur increased small business contribution to the overall economic growth in the Western Cape Province. The way that the project sought to achive its goal was through supporting small business develpment and financial services.

The initiative managed to reach 23 small businesses, which between them created 85 new jobs in the province. Nearly 80% of these clients received and paid back loans from commercial lenders, and most managed to increase their sales by 10% even against the backdrop of a recession in the province. Project interventions such as the installation of financial systems, help with training and skills development, and assistance in developing policies that strengthened the clients' businesses have helped them to navigate the economic crisis.

The project also sought to strengthen the relationships between buyers and small business suppliers, including increasing volumes of contracts. This set of interventions reached 371 small business suppliers, who have benefitted from increased sales of 10% per buyer. As a result, suppliers have been able to employ more people and increase salaries for existing staff - because they have secure income streams from stable clients. These small businesses accounted for about 9,800 jobs in 2009, of which an estimated 15% were newly created.

Client spotlight

R&E Design, an upholstery, curtain manufacturing and interior design firm owned by Evelyn Zyster, is one business that benefitted from this project. Since the Swisscontact intervention, it has grown to a size where it has created five new full-time jobs and needs to look for new premises because the old ones have become too small to accommodate the thriving business.

The company is now attacting high-calibre clients, including high net worth individuals and prestigious design houses. Swisscontact's help in areas such as compliance with tax and labour laws, as well as in setting up sound financial controls and systems, has played a vital role in R&E Design's growth. Other assistance that Swisscontact offered was help in securing a loan for new delivery vehicle and working capital.

Project Manager Ms. Rozandi Louw: rl@swisscontact.co.za