Hollard and Telesure Investment Holdings (Telesure) have joined forces to pilot a development programme for small Motor Body Repairers (MBRs).
The programme seeks to lessen the barriers to entry for small motor body repair companies by empowering them to meet the requirements of preferred supplier status and therefore receive a steady flow of business.
With an estimated 9 million cars on South African roads, and roughly only a third of them insured, the motor-repair industry has no shortage of suppliers. Preferred suppliers end up claiming the bulk of the millions spent every year. This programme seeks to lessen the barriers to entry for small motor repair companies.
Seven MBRs have been selected to participate in this programme which includes a business assessment, the identification of specific business needs and a customised mentoring programme.
A business diagnostic exercise to determine specific interventions for each MBR has already been conducted.
Enterprise Development is an important aspect of broad-based black economic empowerment (BBBEE), and it is intended to drive the transfer of skills and resources from large companies to smaller black-run companies. The Department of Trade & Industry’s Codes of Good Practice rate a company on a mix of monetary and non-financial support of small to medium-sized Black owned businesses as a percentage of net profit after tax (NPAT).
Tom Creamer, Managing Director of Telesure Investment Holdings says: “This collaboration between Hollard and Telesure is an industry-first and something we are both very proud of and passionate about. Together, we hope to develop sustainable businesses that will continue to grow long after the pilot is over.
We also hope that this programme can become a benchmark for Enterprise Development in the Insurance industry so that other entrepreneurs can benefit from the right nurturing and mentorship.”
Anton Botha, General Manager Personal Lines of Hollard says: “The promise of a regular flow of cars to the MBRs, together with their increased capacity to properly service those vehicles and customers, will lead to their sustainability and increased employment opportunities.
Together, we hope to make a meaningful contribution to South Africa’s economic growth and ongoing development by equipping previously disadvantaged South African entrepreneurs with sufficient capacity to further South Africa’s social change and economic development.”
One of the key issues affecting SMEs entry into big supply chains, is the fact that that most of the SMEs lack procurement readiness. Procurement readiness is a measure of the extent to which SMEs are ready to provide goods and services both to end-customers, and more particularly to potential procurers.
This readiness has various components such as Business Process Readiness; Operational readiness; and a mindset readiness which includes professionalism of communication and interaction, delivery orientation and a desire for growth. This programme seeks to lessen some of these barriers to entry.
A structured process of training, development and mentoring as well as business assistance will be offered to each MBR according to their specific needs, in order to achieve economically viable and sustainable business operations. The businesses will also receive training on HR management, vision and leadership skills, financial management, marketing and other key competencies essential to their business.
As South Africa’s largest privately-owned insurance group, the Hollard Insurance Group includes the Hollard Insurance Company and Hollard Life Assurance Company.
Established in 1980, the Group provides short-term and life insurance as well as investment products to a diverse customer base including individual consumers, commercial entities and corporate clients. It ranks among a growing number of companies advocating an inclusive growth model, measuring its social dividends aside its shareholder contributions.
Since inception, partnership has been at the heart of its business model, with the group today boasting over 100 ventures across the insurance value chain. Each one demonstrates the Hollard belief that there is always a better way.
Headquartered in the historic Villa Arcadia in Parktown, Johannesburg, the group embraces 6 million policy holders in 10 countries on four continents. Hollard employs almost 3000 people across the globe and posted R12.5bn in premium income in the year to June 2013.
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