SMMEs can create jobs

According To The National Development Plan.90% of all new jobs will come from Small,Medium and Micro-Sized Enterprises[SMMEs]by 2030.According to the 2017/18 Global Entrepreneurship Monitor report [2015 figures].SMMEs in South Africa contributed to 36% of the country's gross domestic product.SMME growth in South Africa is slower than expected because they face several challenges including maintaining profitability ,unpredictable cash flow and securing financing for business expansion,which includes hiring staff.Jake Willis CEO of Lulaway says this is where internships can play a significant role in alleviating some of the burden for SMMEa."Internships are recognised as one of the best mechanisms available to stimulate job creation and are an effective means to promote the inclusion of unemployed,inexperienced youth into the formal economy,further bolstering social development." Wills points out many SMMEs are not aware that they can access funding to host interns through organisations such as Lulaway asa cost-effective way to increase their staffing complement and support job creation."Interns or experiential learners are employed in private businesses on fixed term basis under the sponsorships of government body such as Sector Education Training Authority [SETA]e.g Services SETA or the National Youth Development Agency(NYDA).

"These bodies provide funding in the form a monthly stipend ,usually ranging from R1500 to R3000 per month,depending on the programme to allow participants to gain practical workplace experience.The host company can choose to top the stipend amount ."adds Wills.Notably ,President Cyril Ramaphosa .as promised in his State of the Nation address ,has launched the Youth Employment Services (YES) programme in partnership with big business and organised labour.The initiative is aimed at the providing one million interns with the opportunity to gain work experience over the next three years ,making them more employable.This initiative will ensure that more businesses -big and small- offer internships ,thus radically decreasing the levels of unemployment in the country.

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HOSTING INTERNSHIPS A WIN-WIN FOR ALL PARTIES

Wills says it makes financial sense to host interns ,particularly if your business needs staff ,but lacks the capital to hire.Hiring staff to perform operational functions enables,particularly micro and small enterprises to adequately service their clients and generate revenue and grow the business.For more established businesses the cost-saving allows them to more easily invest in their expansion ,Wills explains." For many SMMEs the inability to hire and expand operations is one of the most debilitating hindrances to growth ,internship programmes allow businesses to hire much needed resources at a below-market cost with no long-term commitment."Internship allow businesses to increase staff quality.They also improve long-term career prospects for participants,arming them with on-the-job experience.Businesses can grow their talent pool by enlisting top-performing interns onto the company's team once the internship period has ended.These interns have already undergone training and will add value as soon as they commence work as permanent employees.Similarly ,intern who feel that they are not suited to the company or role have a seamless exist on the conclusion of the contract ,"explains Wills.

On a marco-economic level ,the growth of SMMEs has a net positive impact o the economy.Your company will hopefully increase revenue ,increase profitability and able to employ more people going forward.Businesses can be v of the unemployment solution in South Africa.By offering real life work experience to young people ,they are actively participating in job creation.A country with increased levels of employment fairs better on all fronts - increased spending power means a thriving economy and a more optimistic life for all citizens.Wills says for some interns ,such experietal learning opportunities are required to complete a vocational qualifcation ,while others use internship opportunities as a way to gain some practical work exprience.'Businesses who host interns can increase their operational capacity and profitabilty ,therefore increasing the likehood of creating even more jobs in the long -term.At Lulaway ,we offer an end-to-end solution for the managment of all stipend-related administration.If you are a small company that would like to take advantage of the internship opportunities ,but do not have the resources to manage the administractive requirments ,we can help,"concludes Wills.