Everything You’ve Ever Wanted to Know about ‘Doing Business With …’ Old Mutual
As part of this year’s Global Entrepreneurship Week (GEW), Old Mutual, the South African financial services giant, took part in a series by the Enterpriseroom in Rosebank, Johannesburg held 14 November.
The series which also features Discovery Health, IBM and Nedbank offers SMEs a chance to network with big business and to find out what it really takes to do business with each of the corporates.
Lebogang Morulane from Old Mutual took a packed room of entrepreneurs through the company’s various interventions and funds and gave practical advice, from what they are looking for and details of their procurement spend, to how to draft the perfect email to their procurement department.
Old Mutual and entrepreneurship development
Old Mutual has been actively working to empower SMEs for more than a decade. As part of its various enterprise supplier development (ESD) programmes, Old Mutual offers both financial and non-financial support.
According to the company, the desired outcome is an enterprise that leaves an Enterprise Supplier Development (ESD) programme empowered to survive and thrive in the business world.
Old Mutual has allocated R500 million to a new ring-fenced Enterprise Supplier Development Fund to support small businesses and black-owned businesses. This is over and above the R2 billion it has invested in initiatives aimed at entrepreneurship and SMME development and job creation through various vehicles such as the Old Mutual Foundation, Masisizane Fund and Black Distributors’ Trust.
Morulane gave advice how SMEs can get their foot in the door with the large corporate.
Old Mutual ESD Programmes
Old Mutual Investment Group – empowerment fund with a focus on large scale businesses with potential for high impact, for example, businesses in the alternative energy sector.
ESD – Old Mutual’s programmes to empower its value chain and suppliers.
Masisizane Fund – provides development funding and business support with a specific focus on black-owned businesses.
Old Mutual Foundation – focuses on the development of SMEs in the following sectors: Agriculture, Manufacturing and Commerce, and offers grants.
Interventions available for SMEs
Old Mutual offers a range of financial and non-financial support options to SMEs both pre and post investment, this includes SME training in financial education, as well as business support in the form of technical mentorship, financial management tools and advice, as well as bespoke accounting services.
What they offer
– Financial education
– Business support
– Access to markets – including between businesses in their value chain and suppliers.
– Access to financial solutions
The stage of business they work with
They work with businesses at all stages, however startups need to have been tested in the market; if you are a seed (company), make sure that you tested your concept. Having a proof of concept is important.
– Seed stage
– Growth and expansion
Chain of value – ways SMEs can work with Old Mutual
Old Mutual is a financial services company, Morule says they want to partner with SMMES aligned to the group’s offerings and strategy.
“We want to work with businesses that are innovative and relevant to what we want to achieve as Old Mutual.”
Morule gives 3 ways SMEs can work with Old Mutual
As part of their value chain – Part of their value chain are “businesses that add value to what we sell to the market” this includes intermediaries.
As part of their supply chain – Supply services and goods to Old Mutual – from building maintenance to events management and digital marketing.
As a technology partner – Businesses with a technology that is relevant to Old Mutual’s core business.
You can say Old Mutual is your biggest client, but it mustn’t be your only one
According to Morule, 75% of their spend is across these 5 areas:
– Building maintenance and facilities
– MICE (meetings, incentives, conferences and exhibitions)
– IT (incl: telecoms and professional fees)
– Professional fees
Morulane said that currently there are gaps that they want SMMEs to tap into – to become suppliers in this space. These gaps are:
– Financial intermediary businesses – this includes brokerages, intermediaries and
– Technology and the Old Mutual IT value chain – this includes business analysis,
application development, architecture design and systems testing.
– Digital – user experience design and cyber security.
– Other – this includes services related to building and maintenance.
To work with Old Mutual your business needs to be compliance obligations and adhere to the requirement of your particular sector. This includes being registered, tax and labour law compliance.
If you have a manufacturing business, do you have a manufacturing licence? Does your product require SABS/SANS certification? Have you complied with health and safety regulations, and municipal by laws governing noise levels and hygiene?
SMEs need to be accredited if you are going to provide training and you want to partner with us, said Morulane. “We need to establish that you are accredited.” The Old Mutual Foundation can be contacted in regard to a partnership.
How to contact Old Mutual
The contact email address is: firstname.lastname@example.org or Lebogang Morulane on 011 217 1131.
Here is what your email needs to include:
– Your business profile
– Business capabilities and previous experience and projects completed
– What space you are operating in
– All your contact information
– Indicate which division within the Old Mutual Group you want to operate in
Diversity your client base, Morulane advises. “You can say Old Mutual is your biggest client, but it mustn’t be your only one.”