ANNA AND HERBERT TRADING ENTERPRISE CC

  • Background
  • Challenges
  • Solution
  • Results

Anna and Herbert Trading Enterprise cc is a family business established by Mr Herbert and Mrs. Annah Nkosi in 2006. The business started its operations in January 2009. Herbert matriculated in 1995 in Kwa-Thema and then worked for Atlas Copco as a Machine Operator from 1996 to 2009. During his employ at Atlas Copco, he obtained the following certificates and a diploma: machine setting and programming from Hi-Tech, fire fighting, and auto cad from Intec College, diploma in computer programming, system analysis and design also from Intec College. Ms. Nkosi oversees the administration of the business. Anna and Herbert Trading Enterprise cc operates from the owner’s home in Kwa-Thema.

It offers painting services to the local community, schools, corporate businesses, old age homes and the local municipal premises. It also manufactures building and paving bricks and sells them at competitive prices. It has a one-year renewable painting and building maintenance agreement with a local company. Anna and Herbert Trading Enterprise cc purchases its paint from a local suppliers in Springs and Benoni.

It employs 14 people. They have protective clothing such as dust masks, safety goggles, fall arrest/safety belts and boots. The owners investment in the business was used to acquire the following assets: compressors, spray pots, roll pipes, spray guns, step ladders, scar folding, a computer and a printer, paint sprayer, high pressure cleaner, delivery vehicle with a trailer, fork-lifter, brick making machinery, pan mixture, and LS spray painting machine. The business records transactions on a spread-sheet but have outsourced the services of an accounting officer. GEP developed marketing tools for the business. The pamphlets are distributed in the post boxes of the local community. It has also registered in the databases of Ekurhuleni Civil Works and Further Education and Training College for marketing purposes.

The business has a Construction Industry Development Board grade 1 certificate and a Level 3 BBBEE certificate with the assistance of GEP. The owners have developed their own business plan. The business intends to expand into paving, congregated iron sheeting and IBR sheeting. The Ekurhuleni Metropolitan Municipality has approved the use of the vacant land next to the owners’ home, though the lease agreement is not yet been finalised. DTI has approved a grant from which brick manufacturing machinery was purchased.

  • The company did not have Marketing Material.
  • The company did not have BBBEE score card verification
  • The company had insufficient equipment

The company was first contacted and assessed in January 2011. The Business Relationship Manager exposed them to the benefits of being in association with the GEP and the role that it could play in assisting the company.

GEP was able to assist Anna and Herbert Trading Enterprise in the following way:

  • Compiling findings in the form of an ACO (Assessing Company Operations)
  • Developing marketing material
  • Implementation of BBBEE score card verification
  • Implementation of Township Business Renewal Programme

GEP-Ekurhuleni’s assistance has brought about the following benefits for Annah and Herbert Trading Enterprise cc:

  • Exposure: The marketing material produced by GEP enabled Anna and Herbert Trading Enterprise to get exposure and created more awareness of the company, which resulted in the business acquiring a painting and building maintenance contract with a local company. The business expanded into brick manufacturing and has secured a land through Ekurhuleni Metropolitan Municipality.
  • Impact on the number of employees: Annah and Herbert Trading Enterprise cc have shown significant improvement and growth; the company started its operations with a few casuals and currently has employed sizeable number of permanent staff.
  • Additional Assets: The business has since tripled their asset holding.
  • Turnover improvements: has increased by over 40%.