Avo Solutions
When COVID-19 hit in 2020 and the whole world was in shutdown, Phineas Hlatshwayo, the principal of Dipalesa Day Care, also shut down his dream of establishing an additional branch of his daycare to another part of Cosmo City. All this changed in 2023 when Dipalesa Day Care became part of the 112 ECDs in Gauteng and Kwazulu-Natal that Avo Vision supported through the Social Employment Fund (SEF) programme. Within being on the Avo-SEF programme for 10 months, Phineas opened a second branch of his daycare in Cosmo City and attributes this achievement to Avo-SEF support. “It wouldn’t have been possible if it wasn’t for the Avo-SEF programme. I saw this as an opportunity to realise my dream, which was to open another branch and I finally did it,” Phineas explains.
Through this programme, owners of Early Childhood Development centres and micro enterprises save on human resources costs as they employ additional staff (unemployed people) who are paid by this Presidential Employment Stimulus programme, while receiving support from Avo to make responsible business decisions that promote their sustainability beyond this programme. The additional staff support is reaching the social and environmental impact, and the economic aspirations sought by these businesses.
Avo’s Project Assistant, Vuyiseka Zwelibanzi, says Dipalesa Day Care is an example of what the Avo-SEF programmme aims to achieve. “Dipalesa Day Care perfectly embodies the vision of this initiative, demonstrating the tangible impact and success we aim to witness through the Avo-SEF programmme. Seeing where the daycare was when they started on the programme and where they are now, shows other ECDs what they can achieve through this programme,” Vuyiseka says.
Originally launched in 2018, Dipalesa Day Care started with 20 children and has grown to accommodate over 80 children and continues to thrive with several children already enrolled at the newly launched branch. Currently, Dipalesa Day Care employs seven SEF participants, with one having secured a permanent position since being onboarded as part of the programme. Phineas says he was also inspired to expand his business by the desire to create jobs in his community. “So many young people who stay here at (in) Cosmo City are unemployed; they only need to be given a chance to prove themselves and learn new skills so that they can create jobs for themselves in the future,” he adds.
According to Stats SA, as of the second quarter of 2024, the unemployment rate among young South Africans aged 15 to 34 has soared to an alarming 46.1%. Out of the 1000 people onboarded for SEF phase three which started in August 2024, 65% are young people between ages 15 and 34.
During this programme the participants are also equipped with skills and strategies on how they can stretch their income from SEF to ensure that they can better sustain their families beyond this programme should their host entities not be able to retain them beyond SEF.
Avo-SEF phase two baseline survey report revealed that 29% (322) participants started side business within 10 months after attending the programme, with the most common side businesses being spaza shops, selling vegetables and selling affiliate products such as cosmetics. Some participants reported additional income of more than R4 000 per month, providing a much - needed boost to the SEF stipend earned.
Despite this progress, Phineas says the daycare faces challenges, particularly because some parents are unable to pay daycare fees every month because of current economic decline.
Phineas’s advice for young entrepreneurs is simple: “Don't be afraid to take bold risks because greater risks often lead to greater rewards. When challenges arise, don't give up. They're not meant to break you, but to build your strength and sharpen your skills.”
