I often catch myself wondering how some entrepreneurs manage to land deals with major corporations like MTN, Vodacom, Microsoft SA, and BP SA. What’s the secret sauce? Is it all about who you know or the network you’ve built? The truth is, for many small businesses, especially those based in townships, securing contracts with big businesses feels like an uphill battle. And when they do manage to get a foot in the door, those relationships often don’t last as long as they should.
But here’s the good news—I believe there’s a way to turn that around. In our 19th episode of TransformSA X Spaces, we tackled the topic, “Doing Business With Big Business For Entrepreneurs.” We brought together a group of dynamic entrepreneurs to share their stories and strategies.
Did you know that in South Africa, only about 10% of small businesses—many owned by black entrepreneurs or women—ever get the chance to do business with big corporations? And sadly, a large portion of those who do, struggle to maintain these partnerships beyond the first year. These numbers are eye-opening, but they also highlight the untapped potential within our entrepreneurial community.
For this discussion, we were joined by an inspiring lineup of entrepreneurs:
Nkosinathi Nkosi
- Nkosinathi Nkosi, the founder of NetID, who has extensive experience in the ICT industry. With a background in telecommunications and network engineering, and having held senior roles as CIO and CEO, Nkosinathi shared his strategic insights on navigating big business deals.
Patrick Moraka
- Patrick Moraka is the Director of Empowerploy t/a EP-Exec and Ludo Investments. He also serves as the Chairman of the Board at the Joe Sibanyoni Foundation.
Malika Moloi
- Malika Moloi, a creative Brand and Marketing Manager at Geek, who’s passionate about creating engaging marketing campaigns and managing social media. Malika’s love for creativity and growth shines through, whether she’s crafting a campaign or drawing with charcoal in her free time.
Valeska Erlank
- Valeska Erlank, Founder and Director of Qhawekazi Global (Pty) Ltd, trading as South Cape Valuations. With over 15 years of experience in social development across Africa and a deep understanding of African politics, Valeska is also breaking new ground by studying to become a Municipal Valuer Assessor in South Africa.
Vincent Mthakathi
- Vincent Mthakathi, CEO of Mthakathi, a brand that began in 2019. Specialising in branding, printing, and sewing, Vincent has turned his passion into a business that’s quickly gaining recognition.
The session was hosted by our CEO and founder of Papasha Media, Saki Mabhele, a seasoned entrepreneur whose passion lies in systems and processes. Saki kicked off the discussion by sharing a personal experience that many entrepreneurs could relate to. “ A few years ago, I was interviewed on the radio about one of my companies, Saki Print Signs and Graphics. It was part of an enterprise and supplier development programme, and as fate would have it, someone from one of the big banks happened to be listening. They called me afterward, expressing interest in working with my company for their signage and branding needs. I was thrilled, of course, but little did I know that there were a lot of requirements to meet before we could actually do business with a bank,” Saki shared
“For instance, they required us to register on a platform called SAP Ariba—a system I wasn’t even aware of at the time. Navigating that process was an eye-opener, and it really drove home the importance of understanding the systems and processes that big corporations use to manage their suppliers,” he recalled.
Here are some of the highlights from our X Spaces discussion:
Host: Vincent, can you tell us a bit about yourself and what your business does?
Vincent: First and foremost, thank you for this platform. I’m in the printing space, and I also own a brand known as Mthakathi. It was founded in 2020 during the Covid pandemic, and I’m proud to say it’s still standing strong today. I also started Mthakathi Clothing, which focuses on branding.
Host: I see Babewomlungu, you’re here.
Valeska: What can I say? I’m just an ordinary umlungu with an extraordinary mindset. I’m the founder and director of Qhawekazi Global, a professional property valuations company. I work with the government, local government, and, of course, the general public—whether you’re looking to value your house for a willing seller, willing buyer situation. Beyond that, I’m passionate about African politics and black consciousness. My experience has led me in many directions, and honestly, I never thought I’d become an entrepreneur or a business person.
Host: Malika, can you introduce yourself as well?
Malika: Where do I start? Maybe I should begin by saying I studied marketing years ago but never got to finish it. Yet, as they say, your calling will find you. And here I am, years later, doing what I love. My passion for marketing never died. Throughout my journey, I’ve always resonated with certain aspects of marketing, especially around entrepreneurship and how small businesses can position themselves in the marketplace to attract business. Also, I’m an artist at heart.
Host: Patrick, let’s move over to you.
Patrick: A bit about myself—I’m an entrepreneur through and through. I actually started my entrepreneurial journey right after matric. My first business was a car wash back in 2003. By 2004, that car wash had grown into a business that was cleaning shopping centres. The first centre we cleaned was Tembisa Plaza, which was brand new at the time. My company was their very first cleaning service, and you can imagine, I was just 22 years old then.
By 2010, or maybe just around 2009, I had about 300 employees and was turning over roughly R850,000. It was during this period that I truly grasped the importance of running a well-managed business, from end to end. I had to learn quickly, as I was already deep in the industry, and failure wasn’t an option. What’s more, I didn’t come into this space with an MBA or any formal business training—it was all about learning on the job.
Fast forward to today, I’m running a company that specialises in stakeholder development for property developers. We’ve actually pioneered a new discipline within the construction sector, which is now gaining recognition among property developers and project management companies. Essentially, we advise these entities on how they can effectively incorporate small businesses into their operations.
Host: Nkosinathi, how are you? Can you introduce yourself? Just a brief introduction about what you do.
Nathi: Thank you, Saki. I’m really glad to be part of this forum. To give you a brief background about myself, I come from a long line of entrepreneurs—our family’s business history dates back to the 1800s. Growing up, my dad had three or four businesses running at the same time, and by the age of seven or ten, I was already dealing with issues like balancing the till and managing stock. It was a bit overwhelming, but it also shaped who I am today.
I was fortunate enough to receive a bursary from Standard Bank, which gave me a brief escape from the entrepreneurial path my dad had laid out for us. He was adamant that we should be in business full-time, but I went on to study and worked for the bank for a while. After a few years and stints at one or two companies, I decided to return to entrepreneurship and start my own businesses again.
I founded one of the first companies in the telecom space to roll out fibre optic infrastructure for major players like MTN, Vodacom, and Dark Fibre Africa. My background is in telecommunications engineering, but somewhere along the way, I switched gears and pursued a BCom degree, continuing my studies all the way to a master’s degree. I’m still studying now while running my ICT business, which builds infrastructure for both big and small companies. However, my true passion these days isn’t just about generating money—it’s about building other people and helping their companies grow.
Host: So let’s deep dive into our topic—entrepreneurs doing business with big businesses. Vincent, let’s start with you. What’s happening in the space of small businesses working with big corporations?
Vincent: Honestly, I’ve never really dealt with big corporations. I’ve always operated within the small business space because I’m based here in Tembisa. There was a time I had an issue with a big corporate, and after that experience, I swore to myself that I’d never go down that road again. But lately, I’ve been reconsidering that decision. I realise that I can’t stay small forever—I need to venture out and branch into bigger opportunities as well.
Host: So Vincent, it sounds like you’ve got a good perspective as a small business intending to break into the world of big corporations. Can you give us an idea of your business’s size—how many employees do you have?
Vincent: Currently, I’m self-employed—just me running the show. I’m the go-to guy for branding here in Tembisa. Everyone who needs branding knows to come to me.
Host: Thanks, Vincent. Now, let’s move over to you, Nathi. Can you share your experience with small businesses working with big corporations?”
Nathi: Thank you, Saki. There’s a lot to unpack, so I’ll try to keep it brief to give others a chance to share. One crucial thing to understand when you start doing business with big corporations is the importance of systems, as you mentioned earlier with your bank experience. Big businesses are meticulous about quality, process management, and ensuring timely deliveries.
As entrepreneurs, we often get excited about landing a deal with, say, MTN or Vodacom, but we’re not always aware of the quality standards that come with each order. You might find yourself unable to issue an invoice because, after completing the work, someone from their quality department could come and say, ‘This doesn’t meet our standards.’ You might have to redo the project multiple times, potentially leading to losses.
So, if you’re going to do business with big corporations, it’s crucial to get organised. Hire professionals, seek advice, and humble yourself. Sit down with the department heads and ask, ‘What exactly is expected of me? What do I need to do to meet your standards?’ At one point, I struggled so much that I approached the quality manager and asked if they knew anyone who could help me develop a quality department. I was ready to hire that person. That’s my experience in a nutshell.
Host: Patrick, if I can bring you in here—what are your thoughts on what Nathi has shared?
Patrick: Saki, I have to start by agreeing with Nkosinathi—there’s no doubt about it. It’s all about systems, systems, and more systems. That’s what big business is built on. The very reason a company is considered a ‘big business’ is because it has a procedural way of doing everything. If you want to do business with them, you need to understand that you’ll be fitting into their value chain. By fitting into that value chain, you become a crucial component of your customer’s business.
This means that when you’re building your business, you must be prepared to align with the systems and needs of your customers, adding value to their operations. If you’re not ready to fit into these systems, then the idea of doing business with a big corporation is still a distant goal.
We can discuss this topic of doing business with big corporations across various business sizes—from the smallest to the medium-sized and even larger businesses. The key is to understand at what level your business currently operates and what is required to integrate into the systems of these larger entities.
Host: Babeswomlungu, can you share your thoughts on doing business with large organisations?”
Valeska: Doing business with large organisations, especially with government, is a unique challenge. Although I’ve only been in the property evaluation business for a year, I’ve learned a lot. Working with municipalities and local government, I’ve discovered that organisation is crucial. Many people might not like us because we deal with rates and taxes, but we follow the Municipality Rates Act, which legally binds us to provide our services.
In my first year, I was fortunate to secure four different tenders in less than four months—an achievement I’m quite proud of as a rookie. However, one major issue I’ve noticed is a significant skills gap within the evaluation and supply chain departments of the municipalities. This gap presents an opportunity for us to step up and offer our expertise. I truly enjoy teaching and believe in sharing our skills to improve the system.
I also want to acknowledge that, as someone benefiting from white privilege, I see these gaps and am committed to addressing them. I work outside Gauteng, mainly in the Northern Cape and Eastern Cape, and I strive to give back to these communities by involving locals in our projects. For example, we employ data collectors from the communities to help with property evaluations.
Another challenge is dealing with the government’s outstanding invoices, which amount to almost R10 billion. The delayed payments can be quite frustrating, as timely funding is essential for driving any project.
Host: Malika, I’d love to hear your thoughts from a marketing perspective. One thing I’ve noticed is that smaller businesses often struggle with branding rules. For instance, big companies usually have detailed branding manuals and strict guidelines that need to be followed.
Malika: I’m happy with everything everyone has shared. It’s great to see how all the points connect so well. When it comes to small businesses working with larger corporations, it’s a mixed bag of opportunities and challenges. On the positive side, partnering with big businesses can open doors to larger markets and boost credibility. However, it can also be challenging. Small businesses often struggle to navigate corporate structures and processes, which can make them feel overshadowed. I understand that this can be overwhelming, but it’s part of the journey.
Final Thoughts
In this discussion, our guests explored the dynamics of small businesses working with larger corporations. The conversation highlighted both opportunities and challenges that come with such partnerships. On one hand, collaborating with big businesses can open doors to broader markets and enhance credibility for small enterprises. On the other hand, small businesses often face difficulties in adapting to the complex structures and processes of large corporations, which can sometimes overshadow their efforts.
Tips for Doing Business with Big Businesses:
- Understand Their Systems: Familiarise yourself with the systems and processes of the large corporation to align your operations with their requirements.
- Follow Branding Guidelines: Adhere to the branding rules and manuals provided by the big business to maintain consistency and professionalism.
- Be Organised: Ensure that your business processes are well-organised and capable of meeting the high standards expected by large corporations.
- Seek Professional Advice: Don’t hesitate to consult with experts or hire professionals to help you navigate the complexities of corporate partnerships.
- Communicate Clearly: Maintain open and clear communication with your corporate partners to manage expectations and address any issues promptly.