The Civil Engineering Contractor June 2019 | Page 39

THOUGHT LEADERS • T  hose who require support to make their existing businesses sustainable. “To assist these companies, we need to look at a database of employees of traditional construction companies which are currently in financial difficulty [Basil Read, Group 5, Esor, Liviero and more] to identify those individuals that have more than 15 years‘ work experience to develop a programme to prepare them to become mentors for the new players.” He emphasised that given the business focus of such a programme, this would not be led by CETA itself which would remain in the background. The inaugural summit was called to present the five-year plan, which was aimed at becoming a dynamic process. The summit will now be an annual report-back event to update the industry; measure how the plan was delivering on its targets; and how to address bottlenecks which could emerge. The summit was split into the six commissions: • Enhance technical competence; • Improve entrepreneurial acumen; •  Understand and comply to technical and business-related regulations; • Granting of seed capital to grow the business; www.civilsonline.co.za • D  evelop and support partnerships to drive market access opportunities; and •  Leverage professional bodies to support the growth of SMME and enhance synergies. There’s a doctor in the house Prior to the presentation of the plan, the industry perspective on the plan was given by Dr Thandi Ndlovu, CEO of Motheo Construction. “We must move beyond training to stimulating entrepreneurship, so we can give opportunities to those we have trained because they are able to participate in the economy. We must not at this stage in a developing economy focus too much on skills development, because over the past 25 years we have trained lots of people. Those people are sitting at home – they’re frustrated, they’ve lost hope because they do not have access to opportunity. “Partnerships with the private sector will help us to get out of this training mode and into an entrepreneurship mode.” Regarding the demise of several of South Africa’s big construction companies, what Ndlovu called ‘the Big Seven’, she said, “They are either on the way out or they are struggling, which decline I must emphasise is good for business. “On the other hand, it is good for you [the SMME] because it presents you – [provided you are] sound businesses, properly structured, well trained, well geared, with a new way of thinking – to enter into that space. The old tenants have to move out and the new tenants move in. The new tenants are small businesses. However, you should not enter this industry thinking you will become wealthy in the next 10 years – if you do, this is not the space for you. Construction is very tough, but it is rewarding. You have to progress up the CIDB grade rankings progressively with experience. Entrepreneurship in the construction industry is about the long term. “The demise of these companies is due to two things. It is a function of the economy; but if truth be told, we took too long as an industry to transform, and to demonstrate to government that we are on the right path towards creating black businesses. Construction is in a phase where transformation is at the core – it is the pillar of what we are trying to achieve,” added Ndlovu. nn CEC June 2019 | 37