BEE Partner, South Africa Economy Watch

Once the type of partner required has been established, the source of that partner is more easily identified. Determine who you want and consider the areas such a person would frequent. A question that small business owners may wish to consider in sourcing empowerment partners is, “Who is my target market and who can bring me closer to that market?”

The source of partners is dictated by:

• the type of partner required
• the value chain
• the industry or sector of interest.

Take an example from property development. An operational partner would be someone who currently works as a site manager of a relevant-sized construction operation. This person has the experience, but his or her growth has probably been limited to a certain level in the past. A strategic partner in property development may be someone with a history in the town planning department of local government.

The value chain

The best place to find a partner would be to examine contacts in the value chain of business operations. Start with the closest Black person whose interests are aligned to the needs of the adult movie business.

Employees are normally the closest. While ownership incentives can be motivational, you should also consider the additional value they can add to a business. Clients and suppliers often offer opportunities for synergy.

Consider competitors. Is there a competitor owned and run by a Black person? Do not reject this as an opportunity. Sell the Black competitor a share in your business and buy a share in that person’s business. The increased size creates better buying power and potentially eliminates replicated resources. Mergers and acquisitions are based on this principle. If it works well for big business, it can work well for small business.

Employees, clients and competitors offer operational partners, although influential and broad-based partners are also represented in these groups.

Influential partners in the form of Black people employed in key government positions relating to the business often have the ability to introduce new market opportunities. It is important that all personal interests be disclosed when a public servant has an interest in a private entity.

The industry sectors

Nothing beats networking. There are various other ways of sourcing partners and opportunities through industry:

• Attend conferences and functions.
• Industry associations usually have annual meetings.
• If the sector has a charter drawn up, participation in the charter process is an excellent way of meeting potential partners. The charter process includes indabas, which anyone can attend.
• Go through the various business chambers.

Industry forums such as the BMF or Black Managers Forum, ABASA, BITE, FABCOS or any sector-specific groups provide networking opportunities that can lead to BEE partners.

Sourcing the correct empowerment partner is a case of identifying the need and implementing the search in a logical direction.

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