Transcript Wawa Damane

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