Mila-Preneurs

MILA EMPOWERMENT

Youth unemployment has reached crisis proportions in South Africa with recent estimates from Stats SA indicating that 55.2% of young people between the ages of 15 and 24 are jobless. (Source) In numerical terms this translates into more than 4 million young people who are not working which is highest unemployment rate in the world. Young people who have finished high school and university graduates also experience extremely high unemployment levels.

Our aim is to create transformation, and to improve the quality of work and drive through growth and enterpreneurial development. Mila Services plans to disrupt the status quo by transforming cleaners into business owners giving them the opportunity grow within the industry. Creating job opportunities for and a growth career path from cleaner to business owner through Tandem Franchising.

Empowerment through Tandem Franchising?

“Tandem franchising, an innovative franchise model unique to South Africa, is offering franchisors the opportunity to grow their brand, retain initial majority control of the new franchise and shares in its profits, all while working to empower communities in need of economic development.”

Source: Africa Alert, Author(s): Kendal H. Tyre

Most companies have used franchising to expand their network as well as giving cleaners an incentive to own and run their own businesses. This presents an ideal BEE initiative in South Africa. Mila has decided to implement this system.

How will this be achieved?

The Franchisor (Mila) tenders for and secures a major cleaning contract e.g. with corporates for the commercial, industrial and or retail sectors. Mila then divides this work amongst a number of Franchisees. Because of the nature of the contract, the client (corporate) will enter into a contract cleaning agreement and pay the money directly to the Franchisor (Mila). Mila has a franchise agreement with the franchisee. In order to make it easy for the Franchisee, Mila will do the administration for the franchisee and pay the balance to the Franchisee. The Franchisee will then pay their specific expenses e.g. motor vehicle and keep the balance as profit.

How will Mila help?

Mila will assist each entrepreneur in registering a company (PTY) via CIPC as well as obtaining a VAT number. The entrepreneurs will go through a pilot phase which involves vigorous training and mentoring. We will assist the ‘start-up franchises’ with access to a market of potential employees (cleaners). The business owner will then employ 30 staff members, thereby increasing productivity, quality and accountability. Mila’s ongoing mentorship, training, compliance, governance and financial support is offered to each business via Mila Shared Solutions.