CLAUDINE Mouton and Danny Meyer met whilst working for a USAID funded programme aiming to enhance the competitiveness of SMEs. When the project finished they decided to continue their work by establishing SMEs Competitiveness Consultancy – otherwise known as SMEs Compete – an SME that, unusually, helps other small and medium Namibian enterprises grow, create wealth and generate employment.
‘We don’t sell anything,’ explains Claudine who has an accounting background and a history of working with development agencies such as UNDP and the World Bank.
‘But through sponsorship from FNB and the German Development Service, we provide ser-vices to help our clients overcome business challenges.’
This assistance primarily takes the form of enabling market access (through the design of marketing materials and organising expos), providing tailored business mentorship (on matters of taxation, human resources or financing for example) and giving training courses on bookkeeping, selling and computer skills, to name a few.
‘It’s a win-win situation for everyone,’ says Danny, who has extensive business experience from his past personal ventures.
‘Our SME clients grow, they pay more taxes and employ more people – who then go on to spend more money. So government and the private sector are also better off.’
But is the promotion of SMEs really the best way for the country to go? ‘Grass grows from the roots’ he replies while Claudine adds ‘You have to start small to become big and we aim to support an entrepreneurial culture amongst the previously disadvantaged to move them away from a ‘working as labour’ mentality.’
In fact, there are more than 1 200 SMEs benefiting from SMEs Compete’s assistance with the client list growing at a rate of 5-10 new clients a week.
And as the number of their customers has grown over the past four years, so has the need for SMEs Compete to branch out and meet the demand. Now, they have branches in Ongwediva, Walvis Bay and Rosh Pinah in addition to the main office in Windhoek.
‘Our proactive rather than reactive approach also means that we are constantly on the look out for new additions to the company and have we identified two facets for improvement,’ says Danny.
The first is the envisaged property development section which aims to convert old property in the central business district to small units and eventually enable the SME tenants to become property owners through a buying scheme.
‘This is to prevent SMEs from being stuck in the townships whilst the markets for their products are in town … as well as to address the problem of unequal land ownership,’ says Claudine.
The second aspect foresees a venture capital element such that SMEs Compete becomes a shareholder of client SMEs that need finances to grow but lack the necessary collateral to borrow from banks.
‘The idea is that we will invest in the company and the owner can buy out our share after five years of generating profits. Our gain is the capital appreciation so we won’t charge interest,’ he explains.
But Claudine and Danny have even more to offer in terms of valuable words of wisdom: ‘Keep your eye on the ball!’ nods Claudine at the same time that Danny says ‘Focus!’ Clearly, having the discipline to stay on track is important for SMEs but Danny also adds that entrepreneurs ‘should persevere because business is not a bed of roses and always ask instead of second-guessing.
Never underestimate the importance of mentors.’
This advice was developed through endless hours and long nights building relationships with SMEs and working hard to make a difference. So has it been worth the effort?
‘The satisfaction is unbelievable,’ says Danny. ‘Even if I work a 13-hour day, I have a spring in my step.’
‘And the best thing for me is when our clients come back and tell us their success stories,’ smiles Claudine. With all the positive impact, it is definitely strange why this concept has not been implemented in Namibia before and it is surely a business model to be replicated elsewhere.
*Claudine Mouton and Danny Meyer can be contacted on Claudine@smescompete.com. Danny@smescompete.com, respectively. Alternatively phone 061 247 129. Please note the following eligibility criteria exist due to capacity restrictions: SMEs must be owner driven, employ one other person, operate full-time, exist for at least 1 year, enjoy legal status and be conducted from a premises (even if it is a kitchen table).
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