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KPMG Enterprise Development
Posted by Daniel Makhura on 24 May 2017 12:30 PM SAST
Additional information about the above
Enterprise Development KPMG has invested R13 million in Enterprise Development Initiatives (EDIs). Our EDIs and Social Development Initiatives (SDIs) are driven by this commitment. Our approach is to make the greatest positive sustainable impact where it is needed the most and in the areas in which we operate. Our EDI activities are strategically concentrated in the largely rural Limpopo province in community projects and small & medium enterprises (SMEs) that need support. Our initiatives include using our own people’s skills and provide technical training to small black-owned accounting firms. This has allowed us to address a crucial element of any practicing accountant – good quality training. Small accounting firms often face significant training challenges, for example:
Lack of in-house capacity to invest the time needed to research and provide the required technical training.
Financial constraints to procuring the required training.
Staff members who are still pursuing their studies as Chartered Accountants.
Furthermore the EDI has been running for the past couple of years, having started in 2008 with one firm that had a staff complement of six. In 2009, KPMG engaged two additional firms and in 2010 the number of firms taking part in the initiative increased to six. This increased participant numbers to over 30. Interestingly, two of the firms participating in KPMG’s initiative are either fully owned or partly owned by alumni of KPMG. KPMG’s investment in the initiative is a day’s worth of training every second month, presented by KPMG Directors and staff, as well as the development and preparation of training material. Learning & Development, another KPMG department, eagerly joined DPP’s initiative in 2010 and provided much-needed soft skills training. The initiative continues to grow as KPMG is currently engaging with another firm that has also expressed interest in joining the initiative. Partnering with SMEs KPMG partners with SMEs to assist them with developing and growing their businesses with regards to putting together governance structures including registrations with South African Revenue Services (SARS), financial management and corporate governance, etc. We also place a key focus on helping SMEs find strategic partners that will enable their businesses to thrive. We support and advise struggling SME’s (small to medium enterprises) and emerging businesses who would ordinarily not afford the services of firms like KPMG but need them. In the past year, KPMG has invested R1,8 million in time alone on EDI through Pierre Delaney’s projects, Associate Director with 36 years of experience in the running of small and medium sized businesses. KPMG follows a particular formula when defining what constitutes success in EDIs. If the business being supported through EDI is not able to stand on its own in three years’ time, then the programme is failing. EDI must stabilise and grow the business to become sustainable, financially independent and operationally independent. There are several success stories where our partnership with businesses has led to this type of success, including the Ravele community’s Mauluma Farming Enterprises, which was under judicial administration and had no system of financial recording when KPMG got involved. As a direct result of KPMG’s involvement, including the negotiation for R7 million of debt to be written off by a local bank, the enterprise has been a tremendous success and achieved sustainability. Our direct involvement has resulted in Mauluma Farming Enterprises providing a model for a successful black-owned enterprise within Levuvhu.
