Pick n Pay – a scale business
R63bn turnover
7 countries
>1000 stores50% Franchised
~100 000 employees
Estimated to have about 28.5% market share of the top 4 players in South Africa
1FY14 results
Be ethical
Obey laws and regulations
Be profitable
Contribute resourcestowards communitydevelopment & welfare
Obligation to do what is right, just and fair and to
avoid harm
Law is society’scodification of right
and wrong.
The foundation uponwhich all others rest Economic Responsibilities
Legal Responsibilities
Ethical Responsibilities
PhilanthropicResponsibilities
Adapted from: Carroll, 1991
Be a Good Corporate citizen
Small Business Incubator
To facilitate SMMEs’ and EMEs’ intro to retail through mentorship, guidance and support using the PnP structure
• 3 Tiers of support•BABY < R5m•TODDLER between R5m – R8m•TEEN > R8m
•Giving Access to Market and mentorship for small entrepreneurs
Nontwenhle MchunuNontwenhle Mchunu
former former chocolate supplier chocolate supplier to PnPto PnP
• Coming together – • empowering individuals, • creating jobs, • alleviating poverty• Advice on and access to Financial
assistance
Sibusiso Tshabalala – entrepreneur – charcoal supplier to PnP group
Cwebeni Project•Specialised skills developed•Environmental impact •Community participation•Electricity and water• Telkom connection
CHALLENGES TO ACCESSING FUNDING
• Slow pace of process• Complicated application process• Conduit organisations/ agencies• Response time adjusted according to size of applicant ( smme/ start ups
cannot afford to wait)• Call centre system for advice and guidance• Small business cannot navigate through the red tape• Insufficient communication between market players • Lack of flexible funding
OUR EXPERIENCES• Dept of Agric partnership ( Siyasiza , Vrede, Food basket for
Africa, Dreamland Piggery )• DTI funding options (Fairharvest )– timelines do not benefit
small business• Lack of flexibility within parameters ( Rise uniforms ) • Govt contracts do not have favourable payment terms
PROPOSED SOLUTIONS • Utilise different models for different categories• Engage with all market players for a comprehensive
solution ( banks, retailers, agronomists, technologists etc )
• Flexible solutions driven by business needs• Limit media exposure until agreed size has been
achieved or sustainability guaranteed
HURDLES FOR SMME’S
•Compliance (Health / safety audit, SARS )•FINANCE•Business management skills ( business plan, budgeting, cash flow)•Capital investment ( buildings, boreholes, trucks)•Infrastructure (Fencing, electricity and security)
“Some opportunities only come along once in a life time” Saraah, flower supplier to Pick n Pay stores
• We have an obligation to create opportunities
•Enterprise development builds the nation, empowers individuals and helps meet demands of society – Ackerman Pick n Pay Foundation
“Some opportunities only come along once in a life time” Saraah, flower supplier to Pick n Pay stores
• We have an obligation to create opportunities
•Enterprise development builds the nation, empowers individuals and helps meet demands of society – Ackerman Pick n Pay Foundation
OUTCOMES• Firm commitment to growing ED in SA• Clear guidelines , roles and responsibilities• Efficient and effective PPP with deliverables• ‘One-stop’ platform for Small Business