1. Indaba 2016 Tourism SMME Workshop TEP Update 6 May 2016

2. SUCCESSFULLY DEVELOPING ENTREPRENEURS FOR OVER A DECADE

3. Overview o Non Profit Company o Flagship public private partnership o One of the longest standing and most successful enterprise development partners for small tourism businesses in South Africa o Our mandate is to facilitate the growth, development and sustainability of small tourism businesses o We offer a number of interventions that provide hands-on, step-by-step support and guidance to small tourism businesses

4. Achievements (Target Delivery) for 2015- 2016 SMMEs Registered and Paid 452 Enterprises Assessed (DNA) 344 Funding Contracts (BDF) 295 Individuals Trained 1419 Enterprise Mentorships 84 Jobs Created by Supported SMMEs 3523 Increase in Turnover by supported SMMEs(Rm) R812m Period – 1 April 2015 to 31 March 2016

5. Cumulative Impact Since Inception in 2000 o More than R550m invested in tourism SMME development o Contributed to the generation of over R7 billion o Supported the creation of over 83,000 jobs o Trained over 25,000 SMME operators and employees o Mentored over 450 small tourism businesses o Client base of over 4000 SMMEs spread across all sectors of the tourism industry

6. Demographic Segmentation Total Size of TEP Database = 4 100 o Rural Enterprises = 2 365 (58%) o HDE Enterprises = 2 789 (68%) o Youth-Owned Enterprises = 540 (13%) o Women-Owned Enterprises = 1 910 (47%)

7. Year Long Media Campaign

8. Programme Areas The TEP-NDT 50/50 funding partnership of more than 10 years came to an end on 31 March 2016 TEP’s programmes are now focused on three main areas: Third Party Project Management – Management of fully funded enterprise development and support projects for national, provincial, and local government departments and related entities; Enterprise & Supplier Development Solutions – Implementation of Enterprise and Supplier Development (ESD) programmes for corporate entities in line with the amended B-BBEE codes; Workshops & Seminars – Delivery of open-admission and issue-driven workshops and seminars to the public sector, corporates, communities, and any other interested clients.

9. Matrix of Products and Services Research has made it abundantly clear that in order to succeed, small businesses need: – Access to information, – Access to skills and advice how to manage their businesses – Access to finance – Access to Market To meet these needs, TEP has developed a sophisticated range of products and services that offer compelling value propositions to clients.

10. Access to Information It is a well-known truism that knowledge is power. TEP empowers entrepreneurs by providing access to the critical industry knowledge and insights they need in order to grow their businesses. TEP’s access to information tools includes Wikitourism (www.wikitourism.co.za) and Step UP (www.tep.co.za/StepUp).www.wikitourism.co.zawww.tep.co.za/StepUp In addition, TEP will be implementing a programme of issue-driven seminars and workshops periodically and throughout the country. Topical, depending on the issue of the day Research and Development – SBP Reports

11. Access to Information An information portal for the tourism trade Based on Wikipedia concept Launched in 2013 100 000 unique visitors to date and growing www.wikitourism.co.za

12. Access to Skills and Advice Variety of sophisticated training courses designed to impart practical and technical skills to entrepreneurs Areas covered include marketing, management, finance, HR, and business administration. The curriculum comprises both one-day and two-day workshops designed to maximize learning and minimize the time that entrepreneurs and their employees have to spend away from their businesses. Business advisory services, mentorship, and business incubation.

13. Establishment of First Tourism SMME Incubator in Partnership with Credit Suisse

14. Graduation of First Cohort

16. Access to Finance As research shows, an inability to access loans to finance business growth and expansion has always been a major challenge for small business owners. In order to address this challenge, TEP has partnered with the Small Enterprise Finance Agency (sefa) to establish the Ikwezi Tourism Facility. Ikwezi provides business loans ranging from R10.000 to R5million at very competitive rates. Slow to start, but now in full motion. Go to www.ikwezifacility.co.za for more information on Ikweziwww.ikwezifacility.co.za

17. Ikwezi – Up and Running

18. Marketing Ikwezi

19. Access to Finance - BDF With the establishment of the Tourism Incentives Programme at the National Department of Tourism, and to prevent entrepreneurs from double-dipping, TEP has decided to close down its well-known small grant-making unit, the Business Development Fund (BDF), and encourage all SMMEs looking for grant funding to apply directly to the NDT. This will not only prevent double dipping, but will also allow TEP to re-deploy funding to other services and interventions.

20. Access to Market Small Tourism Businesses Market Access Training WTM Africa Tourism Indaba Getaway Show Awareness Campaigns Indirect Tourism Businesses

21. Market Access - Indirect Tourism Businesses

22. The Amended B-BBEE Codes Five Elements in Revised B-BBEE Codes of Good Practice Creation of Enterprise & Supplier Development - a priority element which combines Preferential Procurement, Enterprise Development and Supplier Development

23. TEP’s ESDS Model With TEP’s Enterprise & Supplier Development Solutions you can earn your full 40 Points for ESD Preferential Procurement 25 points ESD 40 Points Over the past 14 years TEP has developed a database of quality empowered tourism small businesses Business analysis have been conducted to identify needs Ready for funders to invest and receive up to 15 B-BBEE Points TEP can audit clients existing suppliers to identify developmental needs Introduce new Black Owned suppliers to replace non- complying suppliers Develop existing Black Owned suppliers for increased procurement 1% After Tax Profit = 5 Points Beneficiaries: at least 51% black owned and outside of supply chain Enterprise Development 2% After Tax Profit = 10 Points Beneficiaries: at 51%black owned and within supply chain Supplier Development Supplier Diversity = 1 Bonus Point Job Creation = 1 Bonus Point

24. ESDS – Indirect Tourism Database A carefully curated database of SMMEs in the following categories: 1.Manufacturers of uniforms for the hospitality industry 2.Producers of poultry and eggs 3.Suppliers of dry goods in bulk quantities (e.g.; cereals, sugar, tea, coffee…) 4.Producers of dairy products (e.g.; cheeses) 5.Suppliers of fresh fruit and vegetables 6.Suppliers of paper napkins and serviettes 7.Suppliers of operating equipment (e.g.; cutlery, crockery, cooking utensils, etc…) 8.Halal Catering 9.Carpet cleaning services 10.Garden services All SMMEs in the database are at least 51% black-owned and are spread throughout the country. Vetted and ready for supply chain integration A work in progress as we need to add more categories and SMMEs Go to www.tep.co.za/esds to sign upwww.tep.co.za/esds

25. ESDS Partners

26. ESDS Partners – cont.

27. Public Sector Partners (3 rd Party Projects)

28. Access to Value Added Services Benefits of membership in TEP extend beyond access to the products and services described n previous slides Value adding services sourced from industry partners TEP’s strategy is to always be on the lookout for opportunities to develop strategic partnerships that will allow our SMMEs to access essential products and services at discounted rates, on the principles of volume and economies of scale. Examples of value added services created by TEP for its members include the recently concluded agreements with Grant Thornton Capital to provide financial and risk management training and solutions; Mango Juice, the inflight magazine of Mango Airlines, to provide advertising space for TEP’s SMMEs

29. In Conclusion… MOBILISING INVESTOR FUNDING TO FACILITATE INCLUSIVE GROWTH AND TRANSFORMATION THROUGH ENTERPRISE AND SUPPLIER DEVELOPMENT AND SUPPORT

30. Thank You TEP.CO.ZA 011 880 3790 info@tep.co.za STAND DEC 1D37