SMMEs must plan well, be streetwise and focus on sustainable business that could benefit from the massive influx of international visitors, but that would not fade upon the conclusion of the Soccer World Cup. That is the advice offered by Danny Jordaan, chief executive officer of the Local Organising Committee of the 2010 Soccer World Cup, and by Andre Diederichs, Old Mutual's specialist on small, medium and micro enterprises (SMMEs).

While 86 percent of SMME owners believed that the 2010 FIFA Soccer World Cup would be positive for the country, only 45 percent believed that they would benefit from the event, the SME Survey 2009 has found.

"FIFA is known for its zealous protection of the rights of its sponsors to do business in zones surrounding match locations and therefore, to a large extent, works to exclude the participation of 'outside' organisations," survey researcher Arthur Goldstuck said.

He added that as sponsorships were far beyond the means of any SMMEs, it rendered direct benefit to these business owners "practically impossible", a fact these business owners were well aware of.

Spillover of benefits

However, creative entrepreneurs could still benefit, the researcher stated.

"Visitors to the event are very likely to do more than just attend matches. That allows for some spillover of benefits," said Goldstuck.

"Young entrepreneurs can attract tourists to their communities and offer services such as accommodation, food and beverages and even sell cultural artefacts," added National Youth Development Agency (NYDA) chairperson Andile Lungisa.

The researchers also found that companies that applied for funding from the NYDA, which cofounded the survey, were more confident about benefiting from the sporting event than others, with 73 percent saying they expected to benefit, compared with 45 percent for the overall sample.

Jordaan, speaking at the Centre for Small Business Development at the University of Johannesburg's Soweto Campus, said: "We want to have an impact on small and medium enterprises."

Sustainable ventures beyond the tournament

He warned, however, that businessmen should not create an operation entirely dependent on the World Cup, but must look at sustainable ventures beyond the tournament.

"Focus, study the market, look at the opportunities."

And for informal traders, Jordaan had pointed advice, reminding South Africans that this was not a "Chiefs versus Pirates match, but a tournament lasting 30 days".

"Don't just look at trading at the stadiums. We have to look more broadly than the 90 minutes of the match," he said.

Broadening the impact of street traders

Global Brands, the master licensee for FIFA merchandise, is working on a deal that would help local street traders cash in on the 2010 Soccer World Cup.

Hawkers to buy licensed products

The company said that the plan would enable the informal sector to retail exclusive World Cup goods.

Nicholas Bloom, licensing director at Global Brands, said it was developing a programme where hawkers could buy the licensed products and sell them around the country. The idea was yet to be pitched to the soccer governing body, he said.

Asked if the goods would be sold to the hawkers at a cheaper rate, Bloom said: "We will always adhere to the highest quality standards, but it will be products which are appropriate for that market."

According to last year's labour force survey, 2.4 million people work in the local informal sector. There are estimated to be between 60 000 and 70 000 street traders in Durban and Johannesburg and at least 30 000 in Cape Town.

Page two: An estimated R55-billion injection into the economy .

Article courtesy of Leadership Magazine.