The Hope Factory – ‘Financial sustainability through mentorship’

For established entrepreneurs, it is often very complicated to learn how to run and grow a business in a particular environment. In Johannesburg and Port-Elizabeth, The Hope Factory engages these entrepreneurs into a mentorship programme where they can be guided for free into this journey. Ashley Murray, Jolandi Snyders and Lulamile Moolman, who are part of the team in Port-Elizabeth, help us to understand how this model works.  

Why The Hope Factory was created in 2001?

It was created by our former CEO, Elizabeth Zambonini, because she had a passion to assist people within her community in Cape Town. She always tried to give them a skill that could help them to become economically active instead of just giving them money when they knocked at her door for assistance. That was the heart and passion behind The Hope Factory!

Today, how does it work exactly?

13 years later, The Hope Factory is a fully established enterprise development organization. We receive contributions from the triple BEE enterprise contribution to assist entrepreneurs by growing them as individuals, by developing their businesses and by helping them to impact the community.

‘The Hope Factory is a fully established enterprise development organization. We receive contributions from the triple BEE enterprise contribution to assist entrepreneurs by growing them as individuals, by developing their businesses and by helping them to impact the community.’

So, mentoring is really efficient?

It is a crucial aspect of entrepreneurial development. It gives to entrepreneurs someone with whom they can journey within the process of making business decisions. Being an entrepreneur can be a very lonely journey, as you are often isolated. Just the personal relationship is very important, so that you don’t have to do this entrepreneurial journey on your own.

‘Being an entrepreneur can be a very lonely journey.’

How do you see the positive results of The Hope Factory?

In Port-Elizabeth we have got around 89 entrepreneurs and our key focus is really on the mentoring. This is a holistic programme, from marketing to sales, to financial… We can see a lot of measurable growth especially in personal development. Indeed, as there are so many social and economic issues that our entrepreneurs face, that is very difficult for them to develop their businesses without realizing at first a personal development work.

Could you give two examples of businesses that are in your programme?

We have got Nondumiso Kafile who runs a nail and beauty salon operating in a township. When she joined our programme, she hadn’t had much experience, now she is fully operational and she is a great success story.

Another entrepreneur that we have in our programme is Craig Alexander, he is a fashion designer who makes incredible clothing. We have seen such growth since he is on the programme. Now, we are trying to develop his access to new markets.

We have got a whole range of different entrepreneurs, from a pig farmer, to people in construction or catering… It’s very wide!

Could you give three words to describe the spirit of The Hope Factory?

Growth, development, impact.

What is the biggest challenge for the organization?

One of the biggest challenges has been the changes in the triple BEE codes. Since the initiation by the government in 2003, there has been a lot of movement and we had to adapt to them. It has a direct effect on The Hope Factory’s existence because all our funding comes from that!

How do you see the evolution of your organization in the next 10 years?

We will continue to help small businesses to become financially sustainable in the country! We are also in the process of looking at alternative sources of income, as we realized that we have to diverse them. We do not know if the BEE will still exist in 10 years from now!

‘We are in the process of looking at alternative sources of income, as we realized that we have to diverse them.’

Today, a lot of young South Africans want to embark on an entrepreneurial adventure to improve society. Do you have a piece of advice for them?

It is very important to know that the majority of the businesses that are starting are driven by very passionate people. Passion alone doesn’t sustain a business. So, along with passion, there must be opportunity. Moreover, it is essential to have a good understand of the environment you are operating from.

‘Passion alone doesn’t sustain a business. So, along with passion, there must be opportunity.’

A last word?

We are passionate about South Africa, about taking part in the transformation in our country!