Relevance Simplicity Humanity mobilised & informed communities Relevance Simplicity Humanity

Available funding for SME’s is currently a function of SME access to funding Available funding for SME’s is currently a function of Sustainability of cash flows from operations Competitiveness of product/service delivery and or offering Operational efficiency within business Consumer awareness and loyalty Competitive position obtained through value add in the supply chain in order to minimise cost and optimize revenue ALL THE ABOVE ARE FACETS OF THE VALUE CHAIN Napoleon Bonaparte “ trade unites people. Everything that unites them makes them cooperate. Trade therefore is essentially harmful for authority” mobilised & informed communities

The power of an effective value chain mobilised & informed communities

SME’s biggest challenges in SA are Strong and efficient value chains that have been developed in industries such as construction, retail and communication over years of limited economic participation by all Consumer ignorance and apathy towards social development agenda Lack of effective incubating platforms for collective action such as program advocacy, consumer education, fund raising and loan syndication etc Ineffective and very low levels of value contribution to consumers due to resource constraints and inadequate skills levels Bank funding models that is not design to support low transaction base, higher risk investment exposures Provisions in Code of good practice charter not really financially supportive General George S Patton“ successful generals make plans to fit circumstances, but do not try to create circumstances to fit plans ” mobilised & informed communities

Possible solutions to improve SME sustainability Reconfigure or design innovative frame breaking systemic solutions that will enable SME’s to effectively cooperate, co-produce and co-exist in value creating eco-systems that serves the consumer/customer in specific communities Establish effective cross sectorial community based incubating platforms for collective action such as business model advocacy, consumer and other stakeholder education, fund raising and loan syndication etc. The process focus on reframing the human mind on an individual as well as collective bases within and across institutions. “Inequality is becoming the new face of our economy. When 10% of the population enjoys 61% share of the total national income, when our economy imports too many goods and services, when our citizens are less productive, when most shops in townships and villages stand empty, when some of our citizens eat from landfill sites, when government spends billions of rands to reduce the inequality gap while the gap continues to widen, it is clear that we need a new way of thinking going forward. It is indeed time to do things differently.” Deputy Minister of Economic Development Ms Gwen Mhlangu-Nkabinde mobilised & informed communities

Where is this solutions been implemented? GUGULETHU Value creating ecosystem Primary consumer cooperatives Secondary cooperative structures for value add services such as logistics, marketing and financial matters respectively Local owned shops network Disruptive mobile and ICT technologies Interactive media platform across all mediums Institutional partners mobilised & informed communities

Thank you for the opportunity mobilised & informed communities