Kleinbegint Incubation Business Park
Introduction
A flagship project of the GDA is the development of a business park that will help entrepreneurs in the informal settlement progress into the formal economy. The aim of the business park is to help small businesses to grow, employ more local people and help drive economic recovery. Unused infrastructure has been identified at Kleinbegint that could serve for this purpose.
Results of the survey
In September 2021 the GDA conducted a survey with 30 businesses in the informal settlement. The results of the survey clearly showed that there are a few central business issues that most businesses struggle with including: skills, finance, material, security, transport, access to local projects, marketing and a “formal address”.
Respondents to the survey were asked if it would assist them to have a more formal / or larger working space than their current backyards and garages. The feedback was overwhelming affirmative and reasons varied from:
having safe storage space
more space for manufacturing
the need for a formal business address
access to office space for meetings
have a space to meet other related local businesses
to help each other with ideas and leads
What do we want?
Based on the research many SMME’s in the informal settlement requires a more formal working environment. However, most of these companies cannot afford commercial rental rates. As a result, they are unable to progress and grow their businesses. The GDA has therefore identified the need to create such a space where some of these companies can be assisted to grow to a point where they can afford normal commercial property rentals.
Initially the idea was to build a container business park, but over time it has become evident that there is a suitable infrastructure that, with relatively minimal investment, can be converted into an appropriate business premises for growing informal businesses. At the same time these entrepreneurs can be exposed to training in the areas they most require support namely financial management, HR management, leadership and marketing.
Why this location?
The TWK municipality does not have any property currently suited to the proposed purpose. The GDA is of the opinion that land may become available in future that may be appropriate, but there is urgency to get an initial project off the ground that will serve as a flagship development to show what the GDA stands for, namely driving business growth and employment in Grabouw and Elgin.
What do we plan?
At Kleinbegint (quite aptly named) there is an unused warehouse that has the basic structure for what is required. With relatively little investment the warehouse can be converted into 10 medium sized units large enough to accommodate most small businesses. Next to this structure there is an unused shed/ roof that can easily be converted into suitable storage space by spacing approximately 5 to 10 refurbished containers for this purpose. Thus, at least 15 to 20 companies can be assisted with relatively limited investment.
The basic design is shown below.
What is the operating model?
The model is quite simple; find the capex to build the infrastructure required and then make sure the companies operating form the premises cover the operational expenditure. This will make it affordable for SMME’s. However, companies will be given a limited time to develop their business to the point where they can afford more commercial rates. During their tenure at Kleinbegint they will also be exposed to business training and will receive support and mentorship through training initiatives already under way.
Phase II and III
The Kleinbegint premises will be the first of 3 such projects. It is anticipated that land will also become available from municipality. This could be on underutilised infrastructure or potentially on land currently owned by national government (Department of Public Works). A third similar site is intended on a piece of land owned by the City of Cape Town for which the GDA is seeking permission to develop.