What is the Role of Business in Public

Basic Education?

17 October 2012

Venue sponsored by: Research sponsored by:

Business in Support of Basic

Education in South Africa

Conducted for the National Business Initiative

by Helene Perold & Associates cc

Funded by Sanlam

September 2012

Business in support of education

Improvements in education and skills levels are fundamental to achieving

economic growth and development

� The National Development Plan identifies improving quality of education in

underperforming schools and further education and training colleges as one of the

direct and immediate measures required to reduce poverty

� Government has prioritised improvement of the quality of basic education as Outcome

1 of its 12 outcomes.

� Department of Basic Education has developed the Action Plan 2014 Towards

Schooling 2025 which includes five priority goals for the period until 2014 and forms

part of the Delivery Agreement between the Minister of Education and the President

2

Initiatives in support of education

� Business, organised labour, community and government signed the Accord

on Basic Education and Partnerships with Schools (2011)

� Aims to mobilise different sectors in partnership to strengthen basic education in

SA as a basis for meeting the New Growth Path’s job creation goals

� NBI and member companies embarked on a Learning Partnership in 2011

with Sanlam as leader and founder funder

� Geared towards enhancing collective impact of private sector investment in

schooling

� Focuses on strengthening relationship between private sector, government and

other partners with the common objective of improving quality of education in SA

3

What we know

15th CSI Handbook (Trialogue, 2012)

� CSI investment in schooling is in the region of R1,3bn per year

NBI and Trialogue (2010)

� 2010 study focused on CSI in schooling found large companies spent (on

average):

� 16% of investment in education on Early Childhood Development

� 28% on Grades 1 - 9

� 29% on Grades 10 - 12

� 24% on tertiary education

� 3% on Adult Basic Education and Training (ABET)

4

What we know

Three broad categories into which CSI that targets improvements in the schools

sector can be classified:

1. Providing opportunities for individual learners to access high quality teaching (e.g.

through supplementary learning or relocating learners)

2. Targeting the school itself, addressing one or more problem areas such as

teacher training, leadership, governance and/or provision of facilities; on a partial

or ‘whole-school’ basis

3. CSI funds have also been directed towards national literacy and educational

campaigns, such as Take-A-Girl-Child-To-Work and Rally-To-Read.

5

The challenges

� We need significant and sustained improvements in learning outcomes

across the country

� Investment by government is high (just under 20% of the national budget),

but the returns remain poor

� The impact of investment by the private sector is limited:

– Fragmented

– Isolated Interventions

– Parallel interventions not sustainable

� Goodwill and intent is widely available, resources are limited in current

economic times and impact must be maximised

6

Rationale for the study

7

In support of broadening the

Learning Partnership and

commitments made by

representatives of business

under the Accord,

And to better understand

the role of business relating

to social transformation

through education,

NBI commissioned Helene

Perold and Associates to

undertake research into CSI

in public schooling in South

Africa

The research was to take

place over several phases

This rapid appraisal is an indicative study that aims to:

1. Provide more detailed information on how companies focus spending on public schooling

2. Broaden focus beyond big business to include small and medium businesses, trusts and foundations

3. Highlight areas requiring further research to explore role of business in education further

Methodology

Phase 1: Indicative rapid appraisal

� Online survey of small, medium, large business & foundations and trusts

� 7 828 businesses, foundations & trusts were invited to take part.

� NBI’s 140 partner companies

� Financial Mail/Empowerdex top 100 BEE companies

� Companies contributing to Business Trust (not included in other lists)

� BUSA and BLSA were requested to encourage members to complete the survey

� Members of Chambers of Commerce (Cape Town, Johannesburg, Pietermaritzburg)

� Additional business contacts in Durban, Bloemfontein, Polokwane & Aliwal (Gafney’s Business

Contacts in SA + Chambers of Commerce & Industries SA 2010-2011)

� 100 “philanthropic intermediaries” identified through Sangonet’s Prodder Directory, Dept of Social

Development’s NPO database

� Out of a sample of 6,617, over 200 responses were received (3% response

rate), supplemented by interviews

8

Methodology

Phase 2: Supplementing the sample (large companies)

� Online survey of large businesses only (defined by number of employees

and total revenue)

� Sample of 197 produced a response rate of 12%

� Supplemented by telephonic interviews

� This analysis is based on responses from 60 large companies as well as

corporate foundations in both of these two stages, supplemented by data on

small and medium company behaviour in schooling where relevant

9

Limitations

� The absence of a comprehensive list of businesses in South Africa

means that the findings must be taken as indicative

� The initial phase took place over the holiday period (Dec 2011 to Feb

2012) which impacted on participation

� Online surveys tend to have lower rates of response that other forms

of surveys

� Use of the online survey methodology limited participation to those

companies with internet access

� CSI tends to be seen as the domain of large companies

10

Research themes

� What are the levels of financial support for education?

� What processes are being supported in schools?

- Financial support

- Non-financial support

� What types of schools are being supported?

� What kind of relationships are in place?

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Levels of financial support

12

� 48% of large companies spent 75% to 100% of funding for education on schools

� Reasons for supporting education:

- Addressing national priorities e.g. tackling poverty, improving education outcomes

- Meeting business imperatives, addressing skills shortages (enlightened self-interest)

4%

4%

7%

15%

61%

9%

0% 10% 20% 30% 40% 50% 60% 70%

Less than R50 000

R50 001 – R100 000

R100 001 – R500 000

R500 001 to R2m

R2 000 001 – R35m

R36m – R100m

Financial support for education – LARGE businesses (FY 2010/11)

Levels of financial support

13

• Substantial degree of private financial support for education

• Levels of financial support vary with the size and type of organisation

– Individually: small and medium businesses provide less financial support than

substantial contributions made by larger businesses

– Cumulatively: they form a large source of existing and potential support for education

- )

4%

4%

7%

15%

61%

9%

0% 20% 40% 60% 80%

Less than R50 000

R50 001 – R100 000

R100 001 – R500 000

R500 001 to R2m

R2 000 001 – R35m

R36m – R100m

Financial support for education – large businesses (FY 2010/11)

53%

27%

8%

9%

3%

0% 10% 20% 30% 40% 50% 60%

Less than R50 000

R50 001 – R100 000

R100 001 – R500 000

R500 001 to R2m

R2 000 001 – R35m

Financial support for education – small and medium businesses (FY 2010/11)

Potential levels of SME financial support

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� DTI study (2007): 600 000 formal sector small enterprises in South Africa and 1,4

million informal businesses

� FinScope survey (2010): 300 000 small businesses in SA employ >5 people and

about 1,5 million more employ between one and four people each

� Assuming 30,000 SMEs contribute to schools (5% of DTI figure and 10% of

FinScope figure) and extrapolating from survey findings re range of spend:

Level of financial support

for education in FY

2010/11

Percentage of

30,000

businesses

Number of

businessesLower spend pattern Upper spend pattern

R2 000 001 - R35m 3% 900 R 1,800,000,900 R 31,500,000,000

R500 001 - R2m 9% 2,700 R 1,350,002,700 R 9,450,000,000

R100 001 - R500 000 8% 2,400 R 240,002,400 R 1,200,000,000

R50 001 - R100 000 27% 8,100 R 405,008,100 R 810,000,000

Less than R50 000 53% 15,900 R 795,000,000

Total 100% 30,000 R 4,590,014,100 R 42,960,000,000

What is being supported

15

4%

7%

11%

15%

17%

20%

22%

30%

35%

37%

37%

43%

50%

61%

63%

65%

70%

0% 20% 40% 60% 80%

Fundraising training

Community campaigns to support care and functioningL

Facilitating school collaboration in clusters

Conflict resolution or team building

Special needs support programmes

Governance training

Facilitation of community-based solutions

Making available professional support for financial,L

School development planning

Curriculum development

School leadership development

Providing bursaries to schools

Infrastructure

Development or provision of learning or reading materials

Provision of equipment

Teacher professional development

Learner support programmes

School processes supported by LARGE companies in FY 2010/11 (N=46)

What is being supported

16

6%

8%

9%

9%

11%

12%

12%

14%

14%

14%

14%

15%

17%

18%

20%

21%

35%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Facilitating school collaboration in clusters

Conflict resolution/team building processes

Community campaigns that support care and effectiveL

Governance training

Special needs support programmes

School leadership development

Providing bursaries

Facilitation community-based solutions to solveL

Fundraising training

Development/provision of learning/reading materials

Curriculum development

School development planning

Teacher professional development

Learner support programmes

Infrastructure (electricity, ablution facilities, libraries,L

Making available professional support for financial,L

Provision of equipment (computers, furniture etc)

School processes supported by SMALL and MEDIUM companies in FY 2010/11

(N=66)

What is being supported

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� Different types of organisations support different processes

� Scope for complementary roles in supporting basic education

� Large companies: channel funds directly to schools or through non-profit

service providers

Large business

(focused study)

• Learner support programmes

• Teacher professional development

• Provision of equipment

Small/medium business

• Provision of equipment

• Professional support for school processes

• Providing or maintaining infrastructure

Foundations, trusts, NPOs

• Learner support programmes

• Teacher professional development

• Development/provision of learning materials

Non-financial support

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4%

20%

20%

22%

22%

24%

33%

37%

43%

43%

0% 10% 20% 30% 40% 50%

We made available a nurse to teach first aid

Publicise career opportunities in schools supported

Provided expertise to organise library

Provided transport for learners to compete in away events

We liaise with the principal about school safety and security

Our organisation has helped provide counselling

Our staff help school(s) with clean-up campaigns

We support the school nutrition programme

We make volunteers available to mentor staff, learners

We offer senior learners an intro to workplace

Non-financial support provided by LARGE companies in FY 2010/11 (N=46)

Non-financial support

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Non-financial support provided by SMALL and MEDIUM companies in FY

2010/11 (N=66)

0%

2%

2%

6%

6%

9%

11%

14%

14%

17%

0% 5% 10% 15% 20%

We made available a nurse to teach first aid

Provide the expertise needed to organise their library

Our staff help school(s) with clean-up campaigns

Provided transport for learners to compete in away events

Liaise with principal about school safety and security

Helped provide counseling to staff and/or learners

Make volunteers available to mentor staff and/or learners

Publicise career opportunities in schools we support

Support the school nutrition programme

We offer senior learners an intro to workplace

Types of schools supported

� Similar patterns found across the spectrum

20

20%

78%

72%

65%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other schools

Secondary schools

Primary Schools

Preschools

Levels of schooling supported by LARGE companies in FY 2010/11 (N=46)

Types of schools supported

21

18%

9%

23%

50%

Reported level of functioning of schools supported by LARGE

companies in FY 2010/11 (2nd round, N=22)

High functioning

Low functioning

Moderately functioning

Cannot/did not specify

Types of schools supported

22

17%

24%

43%

52%

0% 10% 20% 30% 40% 50% 60%

Pass rates less than 25%

Pass rates of 26-50%

Pass rates of 51-74%

Pass rates over 75%

Support of schools by LARGE companies in FY

2010/11, by level of school performance (N=46)

� Levels of support for better performing schools higher than for those doing less well

� Why? Choose better-performing schools OR schools perform better because of support?

� Interviews – preference for working with already effective schools to ensure best return

on investment

Relationships currently in place

23

9%

15%

17%

20%

26%

28%

41%

59%

0% 10% 20% 30% 40% 50% 60% 70%

Other

It is a mutually beneficial relationship

We have short-term and ad hoc relationships with ourschools

We’ve been a supplier of equipment and materials to our schools

We have adopted the schools we support

We have a donor/recipient relationship with our schools

We’re in for the long haul, we respond to schools’ needs as and when can

We are in partnership: they state their needs, we respondwhere we can

LARGE company description of relationship with schools (N=46)

Relationships in place

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0%

12%

17%

24%

30%

32%

35%

0% 5% 10% 15% 20% 25% 30% 35% 40%

We have adopted the schools we support

It is a mutually beneficial relationship

We’ve been a supplier of equipment and materials to our schools

We have a donor/recipient relationship with our schools

We are in partnership with our schools: they state their needsand we respond where we can

We have short-term and ad hoc relationships with our schools

We’re in for the long haul and will respond to the schools’ different needs as and when we can

SMALL and MEDIUM company descriptions of relationship with schools (N=66)

Relationships in place

Many companies appear to be adopting longer-term strategies

� Large companies reported ‘adopting’ schools they support; few small or medium businesses did so

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17%

2%

11%

30%

36%

5%

9%

65%

24%

2%

0%

10%

20%

30%

40%

50%

60%

70%

A few daysa year

Less than ayear

1 to 2years

3 to 5years

More than5 years

Notindicated

Duration of relationship

Small and medium

businesses (N=66)

Large businesses (N=46)

Relationships in place

� Understandings of ‘partnership’ varied; complex in practice

� Partnerships differed with different role players

� Relationships with schools commonly described as ‘partnerships’ but few described them as

‘mutually beneficial’

� Large companies were usually in some form of partnership with others

� Many large companies noted importance of working with government

� Need for more collaboration was recognised across the spectrum

� The challenges of collaboration in practice were noted

� Schools managing multiple relationships

� Naturally competitive business environment

� No apparent single role for business in relation to schooling – business is not

homogenous (different interests and capacities)

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What does this mean?

� This presentation serves as the next step in the process of helping inform

and mobilize business around what is already being done in schools, what

works and what doesn’t, where to focus, where and how to collaborate

� Though indicative, this initial information should assist business to consider

supporting further work in identifying the leverage points within business

efforts and in the schooling system

� Cooperation among business organisations in an area of such national

importance needs urgent attention

� Process will be very important – strong stakeholder support and learning

necessary

� The NBI strives, over time, to help business unlock the opportunities and

benefits of the collective – in this case in education, as a key social and

economic transformation enabler

� The key challenge in improved education for social transformation and

through innovation remains ‘quantifying and measuring’ effectiveness and

efficiency: impact and real progress.

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For more information contact:Marianne Scott, Director: Schooling

+27(0)11 544 6000; scott.marianne@nbi.org.za

www.nbi.org.za