NTSIKA Enterprise Promotion Agency 2002/3 Budget Presentation to the www.ntsika.org.za NTSIKA Enterprise Promotion Agency 2002/3 Budget Presentation to the Portfolio Committee on Trade & Industry and Select Committee on Economic & Foreign Affairs 6 March 2002 Presented by Mr Lefa Mallane

www.ntsika.org.za 1.1 VISION “To be a leading and dynamic national agency that support and further develops a vibrant and thriving Small, Medium and Micro Enterprise (SMME) sector in South Africa”

www.ntsika.org.za 1.2 MISSION “To render an efficient and effective promotion and support service to the SMME sector through intermediaries, to contribute toward equitable economic growth”

www.ntsika.org.za 1.3 VALUES We commit ourselves to provide our services in a professional and demand-driven manner. All our programmes will be sensitive towards the needs of women, people with disabilities, youth and rural communities

www.ntsika.org.za 1.4 STRATEGIC GOALS To identify and develop SMMEs to service identified market opportunities To identify and develop markets to increase opportunities for SMMEs To facilitate business linkages between SMMEs and identified market opportunities To co-ordinate, conduct & research information on SMME development To promote Ntsika’s products & services to create business opportunities for Ntsika

FOCUS MARKET Supplier Development Programme Design, Market Development www.ntsika.org.za 1.5 FOCUS Supplier Development MARKET Programme Design, Research & Information Market Development & Business Linkages

www.ntsika.org.za 1.6 SUPPLIER DEVELOPMENT Develop potential entrepreneurs to start new ventures, and existing entrepreneurs who are at the growth & expansion stage of the business life cycle to enhance their capacity to service market opportunities

MARKET DEVELOPMENT & BUSINESS LINKAGES www.ntsika.org.za 1.7 MARKET DEVELOPMENT & BUSINESS LINKAGES Identify business opportunities for entrepreneurs and work with buyers of goods & services to procure from these entrepreneurs. Includes business linkages to assist SMMEs to access buyers & markets through linkages partnership development and fostering business relationships

POLICY DESIGN, RESEARCH www.ntsika.org.za 1.8 POLICY DESIGN, RESEARCH & INFORMATION Co-ordinate and conduct research regarding SMME development, provide high quality SMME-related information, provide expert advice on SMME programme & strategy design

REFOCUSSING DELIVERY PRIOR FOCUS NEW FOCUS ACCREDITATION ACCREDITATION www.ntsika.org.za 2 REFOCUSSING DELIVERY PRIOR FOCUS NEW FOCUS ACCREDITATION ACCREDITATION SERVICES SERVICES CAPACITY BUILDING CAPACITY BUILDING SUPPLY DRIVEN DEMAND DRIVEN

SECTOR PRIORITY SECTORS Automotive Construction Tourism www.ntsika.org.za 3a SECTOR PRIORITY SECTORS Automotive Construction Tourism Information & Communication Technology (ICT) Agro-processing Clothing & textiles

SECTOR SECONDARY SECTORS Small scale Mining Small scale Farming www.ntsika.org.za 3b SECTOR SECONDARY SECTORS Small scale Mining Small scale Farming Transport Services

STRATEGIC LOCATIONS EASTERN CAPE FREE STATE GAUTENG East London Welkom www.ntsika.org.za 3.1 STRATEGIC LOCATIONS EASTERN CAPE FREE STATE GAUTENG East London Welkom JHB Metro Port Elizabeth Bloemfontein Midrand Uitenhage Sasolburg East Rand OTambo Dist QwaQwa Dist West Rand EG Kei Dist Tshwane Metro Queenstown

STRATEGIC LOCATIONS KWAZULU NATAL MPUMA-LANGA N.CAPE Durban Witbank / www.ntsika.org.za 3.2 STRATEGIC LOCATIONS KWAZULU NATAL MPUMA-LANGA N.CAPE Durban Witbank / Upington Pietermaritzb. Middelburg / Springbok Zululand Highveld R. Namaqualand Midlands Secunda Kimberley P. Shepstone Kruger Park Port Nolloth Delmas, Bethal Komatipoort

STRATEGIC LOCATIONS NORTH WEST W.CAPE N PROV Rustenburg Cape Town www.ntsika.org.za 3.3 STRATEGIC LOCATIONS NORTH WEST W.CAPE N PROV Rustenburg Cape Town L.Trichardt Kosh West Coast Phalaborwa Madikwe/Pilans Cape Point Pietersburg Britz/Hartbeesp Karoo Tzaneen Mafikeng Wine route Kruger Park Garden Route E.District Mun Mosselbay

www.ntsika.org.za 4a INTERVENTIONS Focus on information provision, training & advisory services. Geared towards businesses at different stages of development or business life cycle [incl SMME].

BUSINESS LIFE CYCLE STAGE www.ntsika.org.za 4b INTERVENTIONS BUSINESS LIFE CYCLE STAGE INTERVENTION Start-up Enterprises Information & Referral Training Advisory Services Cocooning & Incubators Growth Enterprises Technical Assistance Customised Training Mature & Declining Enterprises

KEY DELIVERY MECHANISM www.ntsika.org.za 4.1 DELIVERY MECHANISM INTERVENTION KEY DELIVERY MECHANISM Informal & Referral Services Civil structures (local government, chambers, industry federations, libraries and education & training institutions, LBSCs & TACs) Training Education and training institutions (SAQA accredited) Cocooning / Incubators, Advisory Services & Technical Assistance A network of SMME support organisations (LBSCs, TAC, Consulting Firms, etc)

www.ntsika.org.za 4.2 INTERVENTIONS Interventions will be implemented in partnerships with, amongst others: National and Provincial Govt Departments Govt Agencies (CSIR, NPI, SABS, SARS, SAQI, etc) Local Govt Structures (incl. Salga; specifically the Unicities) Private Sector and Parastatals Donor Agencies (EU, DFID, GTZ, CDG, Danida, etc)

www.ntsika.org.za 4.3 EXPECTED IMPACT Economic Growth: Includes jobs created, enterprise increased turnover, profit and reinvestment of capital. Human Resource Development: Includes enterprise productivity increase and improving quality of goods & services. Institutional Sustainability: Includes enterprise increased sustainability and that of service providers

2001 KEY PERFORMANCE MEASURES & OUTPUTS Ntsika Target SP Target Impact www.ntsika.org.za 5.1 2001 KEY PERFORMANCE MEASURES & OUTPUTS Ntsika Target SP Target Impact SUPPLIER DEV * SPs Supported 349 *SMMEs Coun 79745 * SP Employees trained 2435 MARKET DEV * Business Links 2310 * Entrepren. traind/assistd 100074 * Jobs Created 98947 PDRI * Courses dev 45 305 * Research cond 68

2003 KEY PERFORMANCE MEASURES & OUTPUTS Ntsika Target SP Target Impact www.ntsika.org.za 5.2 2003 KEY PERFORMANCE MEASURES & OUTPUTS Ntsika Target SP Target Impact SUPPLIER DEV * SPs Supported 280 *SMMEs Coun 81500 * SP Employees trained 1050 MARKET DEV * Business Links 1120 * Entrepreneurs trained/assisted 60900 * Jobs Created 40000 PDRI * Courses dev 15 150 * Research cond 7

www.ntsika.org.za 5.3 EFFICIENCY INDICATOR Ratio of Administration to Programme costs is 10 cents to R1 (i.e. for every Rand spent on programmes, 10 cents is incurred in support costs)

www.ntsika.org.za 6.1 BUDGET

BUDGET BREAKDOWN CATEGORY 2003 2004 2005 Direct Programme Expenditure www.ntsika.org.za 6.2 BUDGET BREAKDOWN CATEGORY 2003 2004 2005 Direct Programme Expenditure 59.3 77.5 95.5 Overhead Cost 25.3 27.0 28.9 Capex 0.5 0.6 Total Budget 85.1 105.0 125.0

1997-2005 TURNOVER [R] YEAR GOVT/DTI DONORS SMME DEV TOTAL ACTUAL 1997 www.ntsika.org.za 6.3 1997-2005 TURNOVER [R] YEAR GOVT/DTI DONORS SMME DEV TOTAL ACTUAL 1997 1998 1999 2000 2001 2002 35.8 28.3 47.6 57.9 50.0 4.2 4.1 6.0 2.6 4.0 12.0 - 2.4 40.0 32.4 53.6 60.5 54.0 64.4 PROJECTED 2003 2004 2005 60.0 35.1 45.0 10.0 15.0 20.0 85.1 105.0 125.0

www.ntsika.org.za 6.4 BUDGET SUMMARY 2002/3

BUDGET PREMISES Operational costs to programme expenditure = 30% www.ntsika.org.za 6.5 BUDGET PREMISES Operational costs to programme expenditure = 30% Inflation factor = 7% p.a. Redeployment staff considered Emphasis placed to process and results-driven approaches Able to generate at least R10million for small business development

www.ntsika.org.za 7 CONCLUSION Ntsika will become a leading and dynamic national agency for the SMME sector and will expand and respond to the needs of our main stakeholders THANK YOU FOR YOUR CONTINUED SUPPORT

www.ntsika.org.za NTSIKA Enterprise Promotion Agency THANK YOU