Why corporate giants need to champion SME skills development in South Africa

IOL News

12-06-2025

Many SMEs lack the financial resources to invest in training that would improve the quality of their products or services. By providing financial and resource support, corporates can bridge this gap and enable SMEs to develop the skills needed to meet industry standards.
Image: File
Though the buzzwords 'job creation' and 'economic growth' often dominate boardroom discussions, it is the humble Small and Medium Enterprises (SMEs) that truly bring these concepts to life. SMEs are the ones taking risks, hiring locally and revitalising our markets.
Yet, they are the ones struggling, particularly in accessing the skills they desperately need.
The growth potential is clear - SMEs do not simply fill gaps in the market, they create new ones.
They innovate and they adapt with a nimbleness that bigger entities lack but this potential is often choked by a lack of resources, especially in upskilling their workforce. It is unrealistic to expect SMEs to compete on a global scale, if they're perpetually battling to stay afloat due to a skills deficit.
Corporate
self-interest - strengthening the supply chain
Many SMEs lack the financial resources to invest in training that would improve the quality of their products or services. By providing financial and resource support, corporates can bridge this gap and enable SMEs to develop the skills needed to meet industry standards.
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To put it bluntly, this is a prime opportunity for corporates to provide real support for SMEs by funding training programmes that enhance their capabilities.
The argument for corporates to step in isn't just a matter of social responsibility, it's directly related to self-preservation. Given the sheer scale of interconnected global economies, supply chains are only as strong as their weakest link.
By investing in SME skills development through Enterprise and Supplier Development (ESD) initiatives, larger organisations are not just throwing a lifeline; they're strengthening their own position.
An SME with a well-trained workforce is a more reliable supplier, a more innovative partner, and a more capable contributor to the wider ecosystem.
Strategic investment with skills development as a priorityThrowing money at the problem isn't enough. Too often, ESD funds are misdirected, or worse, squandered, because the recipient lacks the business acumen to manage them effectively. This is where the "skills" part of "skills development" must be brought sharply into focus.
SMEs and their workforces require a diverse skill set on top of the basics of management skills, financial literacy, and administrative capabilities. Equipping individuals with these competencies ensures that the right people, possessing the right skills, are in place to maximise the Return on Investment (ROI) from ESD funding.
Putting the focus on skills development in the right placeTo achieve this, a dedicated portion of every ESD investment must be explicitly earmarked for comprehensive training.
This isn't as complicated as it sounds.
To maximise the impact of these initiatives, corporates should partner with accredited training providers, who will bring in the experts to deliver impactful, relevant programmes, tailored to the unique requirements of the SME.
Let's not forget the operational burdens that often cripple SMEs - the endless admin, the cash flow struggles, the constant juggling of multiple roles – these are the realities that prevent entrepreneurs from focusing on growth.
Corporates can step in to alleviate these burdens by providing resources for administrative support, or by facilitating learnerships and internships where relevant, to give SMEs, the breathing room they need to move beyond survival.
Stepping up to champion SME skills developmentIn short, it's about building the human capital that will drive long-term success.
By outsourcing training to reputable providers, corporates can ensure that SMEs receive high-quality, relevant skills development that directly contributes to their growth.
Such a partner would manage the skills development aspect of the investment from start to finish - covering everything from training materials to compliance reporting, making it almost effortless on the corporate's part to contribute to the growth of SMEs through their supply chain.
To get there, however, a paradigm shift needs to happen.
Corporate South Africa needs to move from a mindset of charity to a mindset of strategic partnership.
This isn't about handouts; it's about investing responsibly in the future of businesses and communities. It's about recognising that when SMEs thrive, South Africa thrives.
Daniel Orelowitz is MD at Training Force.
Daniel Orelowitz, MD at Training Force.
Image: Supplied.
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