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 Africas 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

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 Africas banks are in the world top 500 –The Johannesburg Stock Exchange (JSE) is the 17 th largest in the world –South African commercial banks have wide representation in Africa Johannesburg Securities Exchange South Africas economic progress

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 self- employment 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

Sedas TARGET MARKET 20 % 80 % Potential entrepreneurs

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 SEDA BRANCH ENTERPRISE INFORMATION CENTRE Service provider Service provider

Roll-out of the delivery network 2005/ / 2007 Planned 2007/8 & 2008/9 Target Achieve d Target Provincia l Offices Branches EICs ProvinceBranchesEICs Limpopo37 Mpumalanga311 Gauteng117 North West54 KZN610 Free State210 Eastern Cape 319 Northern Cape 21 Western Cape 54 Total2787 Geographical spread of seda offices

Support instruments, products & services Provision of information Referrals Advice Assistance & training Seda services Website: Total visits = Total hits = National Information Centre Walk-in Customers CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM

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: Consistent quality –Solution:SABS accreditation –Results:Employees from 1 to 18 Premiers Entrepreneur of the year 2005

SMALL ENTERPRISE DEVELOPMENT AGENCY (SEDA) CALL CENTRE : WEBSITE: Contact Details Contact Details

THANK YOU