Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
South African SMME Conference 2006 Building an Enterprising Nation 26 October 2006, Johannesburg Mrs. Wawa Damane CEO: Small Enterprise Development Agency BUILDING AN ENTERPRISING NATION South Africa’s economic progress • Transformation and growth • Result in almost 7% increase in the number of new businesses since 2004 – Industrial policy – Integrated Small business strategy – Broad-Based- Black -Economic Empowerment – Cooperatives Development Policy – Accelerated Shared Growth Initiative of SA South Africa’s economic progress • World Class Legal Framework – Substantive legal framework particularly in commercial, labour and maritime law regimes – Advanced legislation relating to competition policy, copyrights, patents, trademarks, and disputes – Independence of judiciary is guaranteed by the Constitution • Financial System / Markets – Financial system is robust and well regulated – Four of South Africa’s banks are in the world top 500 – The Johannesburg Stock Exchange (JSE) is the 17th largest in the world – South African commercial banks have wide representation in Africa Johannesburg Securities Exchange Global Competitiveness Challenges • Reversing the historical legacy • First Economy generally competitive and sophisticated – large and medium size firms • Marginalized second economy – Survivalist – Unregistered – Unbanked – Low skills base – Limited job creation Rural Poverty Small Business- Current Status • 95 per cent of all enterprises in South Africa • 75 % include all informal activities and selfemployment categories • Contributes about 40% to the GDP • Absorb between 50 and 60 per cent of the formally employed labour force • Close to 70 % women entrepreneurs in the informal sector • Year on year we see an increase of 45 % for close corporation registrations • 32 % for companies and a massive increase in the registration of co-operatives. SA Small Business Challenges • 33 % of Black South Africans operate in the formal trade • Only 400 companies out of a potential 6000 operate in export markets • Limitations result from – Access to finance – Technology – Access to technical skills – Export market knowledge – Ineffective business networks SA Small Business Opportunities • Government commitment to promote the entrepreneurship and small businesses • Positive trends with SA macro-economic outlook – – – – Infrastructure investment, $54billion Tourism growth trends Mining beneficiation opportunities Increasing consumer demand for high value products – Strengthening international trade relations with both developed and developing nations – 2010 Soccer World Cup Small Enterprise Development Agency seda • An integrated Service delivery model • Implementing the Integrated Small Enterprise Strategy – – – – – Access to finance Enabling environment Market opportunities Entrepreneurship Support network Seda’s TARGET MARKET Characteristics 20 % Opportunity-driven/ Entrepreneurial Medium enterprises •Less than 200 employees •Developed technical & business skills •Less than 50 employees Small enterprises Small enterprises •Developed technical/limited business skills •Less than 5 employees 80 % Micro enterprises Micro enterprises •Limited technical and business skills Survivalist enterprises Necessity-driven/ •Individual self employment Survivalist enterprises Survival Potential entrepreneurs •Very limited technical and business skills Seda Model • Created by government legislation • Funded through the Dept of Trade and Industry • Governed by Board of Directors appointed by Minister of Trade and Industry • Co-funding by other spheres of government • Monitored by the National Small Business Advisory Council • National office – 8 Provincial offices – 31 Branches in districts – 103 Information offices at local level SERVICE DELIVERY NETWORK SEDA NATIONAL HQ PROVINCIAL SEDA OFFICE Service provider SEDA BRANCH Service provider ENTERPRISE INFORMATION CENTRE ENTERPRISE INFORMATION CENTRE ENTERPRISE INFORMATION CENTRE Roll-out of the delivery network Geographical spread of seda offices Province 2005/2006 2006/ 2007 Planned 2007/8 & 2008/9 Branches EICs Limpopo 3 7 Mpumalanga 3 11 Gauteng 1 17 North West 5 4 Target Achieve d Target Target Provincia l Offices 8 8 0 1 KZN 6 10 Branches 24 27 20 19 Free State 2 10 EICs 81 87 103 188 Eastern Cape 3 19 Northern Cape 2 1 Western Cape 5 4 Total 27 87 Support instruments, products & services Provision of information Referrals Seda services CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM Website: Total visits = 504 311 Total hits = 9 059 885 Advice National Information Centre Assistance & training Walk-in Customers Seda: Key Interventions • Business information, advice and planning – Call Centre – Website – Local Enterprise Information Centres • Market Access – Procurement Support – Export Readiness Training – Business Linkages – Trade Point Programme Seda: Key Interventions… • Access to Technology – Establishment of technology incubation centers – Advisory and consultancy services – Technology transfer and technical assistance • • • • Franchising Support Access to Finance Development of diagnostic tools Productivity Training Partnerships • Local partnerships – Private sector – NGOs – Other government agencies • International Partnerships – Finnish Government – Flemish Government – NSIC- India – Sebrae- Brazil SUCCESS STORIES • KC Chemicals – Challenge: – Solution: – Results: Consistent quality SABS accreditation Employees from 1 to 18 Premier’s Entrepreneur of the year 2005 Contact Details SMALL ENTERPRISE DEVELOPMENT AGENCY (SEDA) CALL CENTRE : +27 860 103 703 WEBSITE: www.seda.org.za THANK YOU