Small Enterprise Development Agency (seda) Presentation to Trade and Industry Portfolio Committee A N Damane Chief Executive Officer

Background National Small Business Act (Amended) December 2004 seda established as a juristic person Incorporation of Ntsika and Namac Trust Incorporation of agencies as designated by the Minister (CPPP)

National Small Business Act Objectives of seda To design and implement development support programmes Promote a service delivery network that will increase the contribution of small enterprises to the South African Economy and promote economic growth, job creation and equity Strengthen the capacity of service providers Strengthen the capacity of small enterprises to compete domestically and internationally

National Small Business Act Functions of seda Implement government policy for small enterprise development Design, develop and implement small enterprise development support programmes Access to non-financial resources Market access Foster partnerships Develop service delivery network

National Small Business Act Functions of seda Design and implement a standard and common national delivery network that must uniformly apply throughout the Republic in respect of small enterprise development, integrating all government funded small enterprise support agencies across all tiers of government. Establish provincial structures to ensure the effective implementation of its functions.

National Small Business Act Accountability to beneficiaries In order to ensure that seda remains accountable to its beneficiaries the Board must at least once a year hold consultative meetings with stakeholders, beneficiaries and provincial representatives to discuss the activities and performance of the Agency The business plan must include an operational plan, a financial plan, a human resources and performance management plan as well as performance indicators for the purposes of monitoring and evaluation

National Small Business Act Finances of seda Funds of seda consists of Money appropriated by Parliament – R187 573m Transfers from Legacy Institutions – R33 376m SWEEEP Funds – R23m Finnish Government, etc – R17 (commitment) Money lawfully obtained from other sources – R14 146m (to date) Includes interest and transfers from provincial and local government CEO is accounting officer Financial year 1 January 2005 to 31 March 2006 Accounts and balance sheet will be audited by Auditor-General

National Small Business Act Progress to date Transfer of Staff from Ntsika and Namac Trust Transfer of assets, liabilities, rights and obligations Liquidation of Ntsika – July 2005 Deregistration of Namac Trust – April 2005

“to be a centre of excellence for small enterprise development The seda Vision “to be a centre of excellence for small enterprise development in South Africa”

The seda Mission “to promote, develop and support small enterprises to ensure their growth and sustainability”

The seda Strategic Objectives Internal Build a professional and functional organisation Increase the visibility and credibility of the seda brand countrywide Build and maintain effective stakeholder relations Create a people centered, customer focused and performance driven culture to make seda an employer of choice

The seda Strategic Objectives External Implement an effective delivery network Facilitate access by small enterprises to products and services of seda and other public and private sector partners Develop and provide products and services that support small enterprises Unlock opportunities for local and international competitiveness Promote the culture of entrepreneurship Increase the number of active entrepreneurs Encourage innovation Ensure sustainability of small enterprises Generate, package and provide information on small enterprises and the economic environment in South Africa, including insuring implementation of best practices learnt from other regions and countries

Value Proposition s e d a N E T W O R K Opportunities S M A Finance L Private sector Premises Info Centres Sector Specific Incubation Mentorship Enterprise Development Centre Procurement Raw Materials Machinery Incubation Centre Business Linkages Trade Point Entrepreneurship Chambers of Commerce Capacity Building Research & Info Technology Centres Standards DFI’s Regulations Other IO’s Technology

Target Market Approximately 20% of seda’s focus will be on Medium enterprises whilst the Small, Micro (Formal, Informal) and co-operative enterprises will get 80% of the Agency’s focus

Provincial Roll-out Progress to date KwaZulu Natal Provincial Office : Durban Branch Office : Ethekwini Metro (Durban) Eastern Cape Provincial Office : Bisho Branch Offices : Amathole (East Londen) OR Thambo (Mtata) Chris Hani (Queenstown) Nelson Mandela Metro (Port Elizabeth)

Provincial Roll-out Progress to date Northern Cape Provincial Office : Kimberley Branch Offices : Francis Board (Kimberley) Siyanda (Upington) Namaqua (Springbok) Free State Provincial Office : Bloemfontein Branch Offices : Mangaung (Bloemfontein) Xhariep (Trompsburg) Northern Free State (Sasolburg)

Provincial Roll-out Progress to date North-West Province Provincial Office : Mafikeng Branch Offices : Contral District (Mafikeng) Bophirima (Vryburg) Bojanala Platinum (Rustenburg, Brits) Southern District (Klerksdorp) Mpumalanga Provincial Office : Nelspruit Branch Offices : Ehlanzeni (Nelspruit) Nkangela (Witbank)

Provincial Roll-out Progress to date Limpopo Task Team working on final roll-out plans Western Cape Task Team working on final roll-out plans Gauteng Branch Office : Tshwane Metro (Pretoria) Provincial Office : Discussions initiated by the seda Board

Key Programmes 2005 Community Enterprise Development Programme Operate in 5 sectors, eg: Tourism (Komjekejeke Heritage Tourism in Gauteng) Mining (Salt mine in Free State) Aquaculture (South African Fisher Women Association) Agriculture (Thokoza Royal Farm in KZN) National Procurement Programme Programme available in 43 Centres 75 Enterprises supported in 5 provinces for private sector procurement worth R86m

Key Programmes 2005 (cont…) National Export Readiness Project Export Awareness Seminars (371 SMME participated) Export Orientation Course (41 SMMEs completed training) Technical Assistance Programme (105 application forms had been received to date, 20 projects are in process) Market Access Programme (6 exhibitions supported to date, 4 network events for start-ups hosted)

Key Programmes 2005 (cont…) National Small Scale Manufacturing Programme Advisory services to improve company growth and performance Technology Support Assistance in setting quality and products standards Competitiveness improvement Productivity and process improvement Foster big-small business linkages with regard to outsourcing and subcontracting

New Programmes Business Turn-arounds Programme being designed to focus on businesses in distress Vukuzenzele Programme Launched 1 September 2005. Radio programme available in 9 languages on SABC stations Start-up pack for new entrants Booklets, workshops, etc

Conclusion Set up phase of the organisation proceeding well Key programmes have been identified Despite challenges roll-out to provinces proceeding well

Thank You