Growthpoint Properties, is starting to reap the rewards of its enterprise development programme after celebrating the graduation of seven small businesses that provide services to the property industry last week.

In an effort to lend a helping hand to small businesses that provide services to the property industry, Growthpoint Properties, through its enterprise development initiative Property Point, spends two years with the firms building their bankability, creating market linkages and providing business development support.

Small businesses play an important role in any economy and could help create much-needed jobs, but a poorly skilled workforce, stringent red tape, a high failure rate and a lack of an entrepreneurship culture are all stymying the sector's performance, hence Growthpoint's enterprise development initiative should be applauded.

Small and micro enterprises contribute between 27% and 34% of the country's gross domestic product, according to the Department of Trade and Industry's annual review of small business.

The department's statistics show that South African small businesses are faced with one of the highest failure rates in the world — as high as 70% of businesses fail in their first year.

Speaking at the graduation event, Growthpoint Properties CEO Norbert Sasse said the enterprise development programme reinforced the firm's commitment to enterprise development and building sustainable small businesses that meet industry needs.

"As a responsible corporate citizen, Growthpoint Properties is committed to the development of a healthy and vibrant SME (small and medium-size enterprise) sector in SA. This is why we developed Property Point: to bring this undertaking to life in a very real way.

The programme is a key aspect of our enterprise development focus — driving economic growth, job creation and transformation, and bringing measurable and sustainable change both within and beyond the property sector," Mr Sasse said.

He said the graduation marked the end of the seven small businesses' two-year partnership with Growthpoint's enterprise development initiative and the start of the next phase of their entrepreneurial journey.

Shawn Theunissen, head of Property Point and corporate social responsibility at Growthpoint Properties, said it had been a privilege partnering with each of the businesses and witnessing their growth and personal and professional transformation.

"For us at Property Point, the success of each business is our success. By incubating these SMEs directly in the Growthpoint environment, we've enabled them to become procurement-ready and access real market opportunities, whilst adding significant value to our own supply chain.

"Tonight is thus all about celebrating meaningful transformation and empowerment beyond compliance. These are the faces behind, and beyond, the numbers. These are the people who have created new jobs and are growing our country's economy."

Mr Theunissen said that this was just the start of the journey for these entrepreneurs, however: "Each of you is walking a unique path — with its own set of challenges and opportunities.

"As you exit our programme, I would encourage you to use your learning and experiences from the past two years as a foundation from which to continue to grow. Keep on drawing on each other for support, insights and encouragement, and engage with us whenever you need to."

He also used the opportunity to reinforce both the collective and individual effect of the programme. He highlighted the fact that Property Point had unlocked more than R167m worth of opportunities in the greater property industry and created more than 840 direct jobs since its inception in 2008.

The figures from the graduating group were also reported on, with the seven businesses showing an average annual growth rate of 80% over the two-year period and collectively generating more than R28.2m in revenue in the most recent financial year.

Mr Theunissen said the 2,620 hours of training, coaching and mentorship provided to the collective group were directly aligned to the three strategic pillars of the programme, notably building bankability, creating market linkages, and providing business development support.

Each of the entrepreneurs received a certificate of achievement. A cheque of R70,000 was awarded to the best-performing enterprise in the group: Masedi Electric-Serve, with runners-up NRP Properties and Contractors receiving a cheque for R50,000.

The prize money (comprising the initial "commitment fee" paid by each of the businesses when selected for the programme, which was then matched by Property Point and Growthpoint) will be used by both businesses as a capital expenditure injection.

"We are confident that these entrepreneurs and these businesses will continue to do us proud going forward," Mr Theunissen said.

"We trust that their graduation will also act as a source of inspiration for entrepreneurs across SA: reminding them that our country is one of possibility and that there is ample space for them to grow and thrive."