VW Program Helps 178 Businesses Generate $37M in 15 Years

When Pumza Gwabeni started her renovation business, money flowed in but profits never materialized. Despite working constantly and juggling subcontractors, she watched her construction company lose money month after month.

Three years after joining the Volkswagen Business Support Centre, everything changed. Nhaka The Legacy Group now turns a profit, grows 15% annually, and employs 16 people full-time and part-time.

"We are currently busy with our business grading that will make my company eligible to take on projects worth up to $500,000," Gwabeni said. "None of this would have been possible without the Business Support Centre."

Her transformation represents just one thread in a larger success story unfolding in Kariega, Nelson Mandela Bay. Since April 2011, the Volkswagen Business Support Centre has helped 178 entrepreneurs build sustainable businesses through its partnership with Raizcorp, a business incubator specializing in small enterprise development.

The numbers tell a powerful story. These businesses have generated $37 million for the Eastern Cape economy and employ close to 2,000 people. Of those jobs, 680 didn't exist before their employers graduated from the program.

The partnership has also created a direct pipeline back to Volkswagen. Thirty graduate companies now serve as product or service providers to Volkswagen Group Africa, conducting $4.7 million in business.

The Ripple Effect

Raizcorp CEO Allon Raiz knows firsthand what struggling entrepreneurs face. His own journey included failed ventures and sleeping on the streets before finding success.

"People supported me, not my enterprises," Raiz reflected at the center's 15th anniversary celebration. "I learnt that a business plan is important, but the heart of the business is way more important."

That insight shaped Raizcorp's philosophy: "Back the jockey, not the horse." Instead of focusing solely on business models and projections, the program invests deeply in the entrepreneurs themselves.

Volkswagen Group Africa MD Martina Biene emphasized that even large corporations depend on thriving communities. Without strategic partnerships with experts like Raizcorp, the automaker couldn't create meaningful impact on small business development.

The 15-year milestone proves that patient, people-focused investment in entrepreneurs creates jobs, strengthens economies, and transforms entire communities.