VW-backed incubator helped Eastern Cape businesses generate R733m over 15 years

A VW-backed business incubator has helped 178 entrepreneurs build sustainable enterprises over the past 15 years, generating R733-million for the Eastern Cape economy.

When Pumza Gwabeni started her renovation and building-maintenance business, she had a secretary, relied on subcontractors and struggled to balance the books.

Her background in entrepreneurship started when she was eight years old, going door-to-door to help her mother sell fresh produce to neighbours. But she would be the first to admit that this did not prepare her for the forward planning required to run a successful construction firm.

“Work was coming, there was cash flow, but my business was not growing and at the end of the day I was losing money,” Gwabeni said.

Three years after enrolling in the business development programme at the Volkswagen Business Support Centre, Nhaka The Legacy Group is turning a profit and growing at 15% annually. Gwabeni employs eight staff members full-time and an additional eight subcontractors at any given time.

“We are currently busy with our business grading that will make my company eligible to take on projects worth up to R10-million. None of this would have been possible without the Business Support Centre,” Gwabeni said.

Her story is just one of many successes celebrated at the 15th anniversary of the Volkswagen Business Support Centre, held at Volkswagen Group Africa’s (VWGA) plant in Kariega, Nelson Mandela Bay.

Through a strategic partnership with business incubator Raizcorp, the Business Support Centre has made a lasting impact on the local business landscape and continues to support and develop small enterprises.

Since April 2011, 178 entrepreneurs have passed through the various programmes offered at the centre. These businesses have generated R733-million in the Eastern Cape and employ close to 2,000 people – 680 of whom joined the workforce only after their employers graduated from the Business Support Centre.

Since completing their programmes, 30 companies have been contracted to VWGA as product or service providers, conducting business to the tune of R93-million.

Speaking at the event, VWGA MD Martina Biene said all business, even one as big as VW, is based on the success and support of its community.

“Without the people building our cars, or the people driving them, VWGA would not be celebrating its milestone anniversary of 75 years. Likewise, the 15-year milestone of the Business Support Centre would also not be possible.”

Biene said that while VW may be an expert in building cars, it continuously identifies the need for str