1. Seda 2015/2016 Performance Report
Presentation to the Portfolio Committee on Small Business Development
13th October 2016
Ms Mandisa Tshikwatamba, Seda CEO

2. Delegation Details Ms Mandisa Tshikwatamba, Chief Executive Officer
Ms Nosipho Khonkwane, Executive Manager: Seda Technology Programme
Mr Norman Mzizi, Chief Financial Officer
Mr Lusapho Njenge, Chief Strategy and Information Officer

3. Presentation Outline PART A: SEDA STRATEGIC ARCHITECTURE
Alignment of the Seda’s Strategic Plan with MTSF
Outcome-oriented goals and strategic objectives of Seda
Strategic Objectives of the DSBD
Vision and Mission of Seda
Seda Strategic Objectives
Seda’s Target Market
Seda’s Service Offerings
PART B: KEY HIGHLIGHTS OF THE 2015/16 ANNUAL REPORT
Key Points from Minister’s Foreword and Chairperson’s Overview
2015/2016 Auditor-General Opinion
Performance Highlights
Performance against Predetermined Objectives
Performance on Strategic Indicators
Statement of Financial Performance
Financial Performance Against Programmes
Seda and Stp Actual Funding and ENE Allocation
Seda Staff Complement as at 31 March 2016
Success Stories
PART C: LOOKING AHEAD
Focus Areas for 2016/2017

4. PART A: SEDA STRATEGIC ARCHITECTURE

5. Alignment of the Seda’s Strategic Plan with MTSF 2014-2019.
Seda’s 2014 – 2019 Strategic Plan and Annual Performance Plan 2016/17 – 2018/19 aim to contribute to Outcomes 4 and 7 of the MTSF MTSF , which are ‘Decent employment through inclusive growth’ and ‘Vibrant, equitable, sustainable rural communities contributing towards food security for all’ .
On inclusive growth, there is prioritiation of women, black, youth and people with disability to address participation levels of businesses owned by people from these demographics.
Seda’s programmes are structured to drive towards the following intermediate outcomes:
Increase in turnover of assisted small enterprises
Increased number of people employed in assisted small enterprises
Reduced mortality rate of assisted small enterprises
On creating sustainable rural communities, Seda has a focused programme for cooperative and communitiy private public partnership development. The branch and incubation networks also focus on this.

6. Outcome-oriented goals and strategic objectives of Seda.
Government Outcome 4: Decent employment through economic growth
Government outcome 7: Vibrant, equitable, sustainable rural communities contributing towards food security for all
Ultimate Outcome (Impact)
Increased contribution of small enterprises and cooperatives
to the SA economy, and promotion of economic growth, job creation and equity.
Intermediate Outcomes
Increase in turnover of assisted small enterprises and cooperatives
Increased number of people employed in assisted small enterprises and cooperatives
Reduced mortality rate of assisted small enterprises and cooperatives
Strategic Outcome Oriented Goals (Outcomes)
Improve the sustainability of small enterprises and cooperatives
Increase Seda delivery network to reach underserviced areas
Maximise support offered to Seda clients through stakeholder contribution

7. Outcome-oriented goals and strategic objectives of Seda.
DSBD strategic outcome oriented goal
Seda strategic outcome oriented goal
Seda Strategic Objectives
Goal 1: Sustainable, competitive and growing small businesses.
Goal 1: Improve the sustainability of small enterprises and cooperatives
Increase number of diagnostic assessment conducted on small enterprises
Increase number of clients participating in the Supplier Development Programme
Increase number of clients supported through mentorship and coaching
Increase number of clients with access to local and international markets

8. Outcome-oriented goals and strategic objectives of Seda.
DSBD strategic outcome oriented goal
Seda strategic outcome oriented goal
Seda Strategic Objectives
Goal 1: Sustainable, competitive and growing small businesses.
Goal 1: Improve the sustainability of small enterprises and cooperatives
Increase number of clients trained on national and international standards
Increase number conformity assessment and product testing support
Increase the number of clients supported with Systems implementation
Increase number of clients accessing Technology Transfer support

9. Outcome-oriented goals and strategic objectives of Seda.
DSBD strategic outcome oriented goal
Seda strategic outcome oriented goal
Seda Strategic Objectives
Goal 1: Sustainable, competitive and growing small businesses.
Goal 1: Improve the sustainability of small enterprises and cooperatives
Increase number of clients participating in the Incubation Support Programme
Increase number of Cooperatives supported
Increase number of clients participating in the BESD Programme
Increase number of clients participating in the National Gazelles Programme

10. Outcome-oriented goals and strategic objectives of Seda.
DSBD strategic outcome oriented goal
Seda strategic outcome oriented goal
Seda Strategic Objectives
Goal 2: Sustainable small business in rural and township communities.
Goal 2: Increase Seda delivery network to reach underserviced areas
Establish new incubators in prioritised provinces (including virtual incubators)
Increase colocation points with identified partners
Develop a framework for Seda branch location and resourcing

11. Outcome-oriented goals and strategic objectives of Seda.
DSBD strategic outcome oriented goal
Seda strategic outcome oriented goal
Seda Strategic Objectives
Goal 4: Strategic partnerships for integrated support to small businesses.
Goal 3: Maximise support offered to Seda clients through stakeholder contribution.
Increase number of partnerships for small business development and support
Increase financial support sourced from partners

12. Vision and Mission of Seda
Vision – To be the centre of excellence for small enterprise development in South Africa
Mission – To develop, support and promote small enterprises to ensure their growth and sustainability in coordination and partnership with other role players
Values – Nurture, Innovation, Customer Service Excellence, Ethical Behaviour, Resilience (NICER)
Goal – Ensure that the small enterprise sector grows and increases its contribution to sustainable and equitable social and economic development, employment and wealth creation

13. Seda’s Target Market

14. Seda’s Service Offerings
For survivalist and micro enterprises
Entrepreneurship awareness
Franchise awareness
Business start-up training
Business planning
Business registrations
Business start-up advice
For small and medium enterprises
Access to local markets
Access to export opportunities
Incubation
Access to technology
Quality and standards testing, advice and implementation
Hotline to assist with late payment of SMMEs
Business mentoring
Facilitation of access to finance
For collectively owned enterprises
Social facilitation and mobilisation
Cooperatives development and registration
All other relevant products and services still apply
For people with disabilities
Programmes with DeafSA and SANCB

15. PART B: KEY HIGHLIGHTS OF THE 2015/16 ANNUAL REPORT

16. Key Points from Minister’s Foreword and Chairperson’s Overview
Successful hosting of the inaugural Southern African Business Incubation Conference (SABIC) in March 2016.
Launch of two new programmes, namely the National Gazelles and Finfind.
Increased willingness to cooperate between the private and public sectors.
Need to increase Seda’s incubation footprint in underserviced provinces such as Northern Cape, Free State, North West and Limpopo N

17. Key Points from Minister’s Foreword and Chairperson’s Overview
Clarification and alignment of objectives between Seda and the DSBD done.
Reputation study done. Reptrak Pulse improved from 69.2 in 2012/13 to 76.2 in 2015/16.
Inaugural Business Advisor Seminar seminar held to share best practices and improve the operating environment for Seda Business Advisors.
Strengthening of the Seda Board with two additional members, Ms Hirachund and Ms Monnakgotla. N

18. 2015/2016 Auditor-General Opinion
Unqualified Audit Opinion on Annual Financial Statements sustained for eight consecutive years.
No material findings on the Annual Performance Report concerning the usefulness and reliability.
No non-compliance to applicable laws and regulations.
No matters to report under Corporate Governance.
No findings pertaining to procurement/Supply Chain Management.
Financial health of Seda was evaluated by the Auditor-General and found to be exceptionally healthy.
Internal control deficiencies in ICT identified around governance. These are receiving attention. N

19. Performance Highlights
Service delivery achievements (target in brackets):
99% (94%) client satisfaction levels with quality of Seda services.
74% (54%) of assisted clients indicated an increase in turnover.
51% (35%) of assisted clients indicated an increase in number of people employed.
10,679 clients serviced across the Seda network.
40 secondary cooperatives established and supported.

20. Performance Highlights
Service delivery achievements (target in brackets):
2,492 (1,881) clients supported by the Seda Technology Programme (Stp).
2,331 (1,650) direct jobs created by Stp.
153(144) small businesses supported through conformity assessments and product testing.
85.24% of total funds received utilised in the Seda delivery network.
R 7,39 million leveraged and utilised from delivery partners during the financial year, with additional in-kind contributions.

21. Performance Against Predetermined Objectives
Programme 1: Enterprise Development
Outcome
Performance Measure or Indicator
Annual Target
Actual Achievement
Reasons for variance
Client satisfaction ensured
% of surveyed clients satisfied with quality of Seda services
94%
99%
High performance attributed to improved relationship between serviced clients, Business Advisors and business development services providers.
Client business performance improved
% of surveyed SMME clients whose turnover has increased (Growth)
54%
74%
Clients supported benefited from improved market assess through interventions implemented by Seda.
% of surveyed SMME clients whose number of employees has increased (Growth)
35%
51%
Agriculture and services sectors made a meaningful contribution to employment creation.
Number of supplier development programme partnerships
established 5 7
Increased number of partnerships established by the provincial network.

22. Performance Against Predetermined Objectives
Programme 1: Enterprise Development
Outcome
Performance Measure or Indicator
Annual Target
Actual Achievement
Reasons for variance
Number of clients supported under supplier development programme 75 83
Clients who showed potential benefitted from the programme.
Number of clients supported with trade facilitation
147
More Seda clients were export ready and thus exposed to trade facilitation support.
Number of clients supported with mentorship and coaching 94
Concentrated efforts were made to increase the number of clients in this programme.
Number of clients trained on national and international standards
536
609
Increased demand from clients that seek to enter formalised supply chains.

23. Performance Against Predetermined Objectives
Programme 2: Equitable Access to Support Services
Outcome
Performance Measure or Indicator
Annual Target
Actual Achievement
Reasons for variance
Client reach improved
Number of clients working with
11,400
10,679
Underperformance is mainly due to Business Advisor capacity constraints. Clients’ business assessments takes longer for newly recruited Business Advisors.
Number of clients in the upper end of the SMME sector assisted with interventions
372
234
Seda’s client profile is predominantly made up of clients employing less than twenty employees. Most branches, particularly those in rural provinces did not have clients in this category during the quarter under review.
Proportion of clients in the upper end of the SMME sector increased
Number of new partnerships on high impact programmes (HIPs) to service the upper end of the SMME sector 10 11
Cooperation between Seda and stakeholders contributed to this achievement.

24. Performance Against Predetermined Objectives
Programme 2: Equitable Access to Support Services
Outcome
Performance Measure or Indicator
Annual Target
Actual Achievement
Reasons for variance
% of clients in the priority growth sectors assisted with interventions
40%
89%
This achievement confirms alignment with Seda strategy to focus on clients in the priority sectors.
Number of primary cooperatives established 90
166
Efforts were invested to ensure improved support for primary cooperatives.
Number of secondary marketing cooperatives supported 36 40
Established primary cooperatives were encouraged to form secondary cooperatives.
Number of clients supported through Basic Entrepreneurial Skills Development programme
1000
521
1,537 learners were recruited by year end, these learners will receive support from in the 2016/17 financial year.
Cost sharing with delivery partners maintained
Value of service delivery costs covered by delivery partners
R10,3 mil
R7,39mi
R17,5 mil was committed to Seda in monetary value and in kind, but only R7,39 mil was utilised.

25. Organisational staffing improved
Performance Against Predetermined Objectives
Programme 3: Administration
Outcome
Performance Measure or Indicator
Annual Target
Actual Achievement
Reasons for variance
Cost efficiency improved
% of direct service delivery costs versus total expenditure costs
73%
85.24%
Midterm budget review allocated more funds to the delivery network, which is in line with Seda’s principle of
% of deviations of actual expenditure from approved budget 5%
3.82% underspend
This is due to delays in initiating some projects and the fluctuating vacancy rate.
% of programme related funding allocated to clients in the upper end of the SMME sector
15%
11%
Majority of Seda clients are employing less than 21 people.
Organisational staffing improved
Vacancy rate
12%
7.8%
Concentrated efforts are made to reduce the vacancy rate below the set target.
Seda image improved
Annual stakeholder forum held
ASF held by end September 1
None
Number of updates on the SMME sector produced 2

26. Performance Against Predetermined Objectives
Programme 4: Seda Technology Programme
Outcome
Performance Measure or Indicator
Annual Target
Actual Achievement
Reasons for variance
Incubation support enhanced
Number of incubators supported 55 57
More incubators were approved in order to improve the sustainabilities of micro enterprises.
client satisfaction ensured
% of surveyed clients satisfied with quality of Seda services
72%
90%
This performance is due to improved relations between Seda staff and incubators.
Client business performance improved
Number of jobs created
1,650
2,331
Target exceeded as clients in the construction incubator were able to access more contracts.

27. Performance Against Predetermined Objectives
Programme 4: Seda Technology Programme
Outcome
Performance Measure or Indicator
Annual Target
Actual Achievement
Reasons for variance
Client support services provided
Number of clients supported
1,881
2,492
Target exceeded, due to increased number of new clients incubated during the course of the year. This is as a result of some clients graduating out of the incubator programme.
Number of new SMMEs created
331
497
Seasonal differences in supported sectors contributed to this achievement.
Technology transfer programme implemented
Number of clients assisted with technology transfer incentives 66 67
Additional funding was secured during the course of the financial year.
Conformity Assessment and Product testing and Certification
144
153
High demand from clients for comformity assessment and product testing.

28. Performance on Strategic Indicators

29. Performance on Strategic Indicators
Although there is a positive trendline on both the number of clients incubated, and jobs created; there are notable dips in some years. These are due to years where there is a large number of graduating clients. This then has a knock on effect on the number of jobs created going forward, as incubatees typically create jobs in the send and third years of the incubation period.

30. Statement of Financial Performance
Revenue
2015/2016 (R mil)
2014/2015 (R mil)
Parliamentary Grant
610,364
624,650
External earnings
70,460
71,836
Interest received
14,539
16,337
Gain on sale of assets
0,360
0,529
TOTAL REVENUE
695,723
713,352
TOTAL EXPENSES
742,663
645,243
SURPLUS / (DEFICIT) FOR THE YEAR
(46,940)
68,109
The deficit for 2015/2016 of R46,940 million was planned for, to utlilise the retained surplus from previous reporting periods.

31. Financial Performance Against Programmes
No. of Performance Indicators
Number of performance indicators achieved
Achieved
(value & %)
Not Achieved
budget
Actual Expenditure
(R’000)
ENTERPRISE DEVELOPMENT 16 12
75%
25%
R487,473
R481,143
SEDA TECHNOLOGY PROGRAMME 8
100% 0%
R177,475
R169,259
ADMINISTRATION 6 4
67%
33%
R126,367
R112,722
TOTAL 30 24
80%
20%
R791,315
R763,124

32. Seda and Stp Actual Funding and ENE Allocation (R mil)

33. Seda Staff Complement at 31 March 2016
Number of Staff Members
Contract Staff
Number of Vacancies
Total Posts
Vacancy Rate as a % of Total Posts
National Office
179 4 12
191
6,28%
Provincial Network
439 35 45
484
9,30%
Total
618 22 57
675
8,44%

34. Success Stories Business Name: Oyengweni Guest House Province: KwaZulu
Sector: Accommodation
Seda’s interventions: Website development, implementation of a CRM system with online booking capability.
Outcomes: Client base has increased by 10%, business occupancy increased from 57% to 71%, turnover increased by 10%.

35. Success Stories Business Name: Gulp Design Province: Gauteng
Sector: Manufacturing – wood products.
Seda’s interventions: Incubation support
Outcomes: Turnover of R1.8 million, four permanent jobs created. Also awarded contract to design and supply furniture and fittings for 9 rapid incubators to the value of R4,9 million.

36. PART C: LOOKING AHEAD

37. Focus Areas for 2016/2017
Development of a framework on the ideal sourcing (number of Business Advisors and skills) per Seda branch.
Implementation of a programme to retain and upskill Business Advisors.
Increased automation of core and support processes to improve efficiency.
Continued refinement of business and operational model.
Institutionalisation of the Basic Entrepreneurial Skills Development (BESD) programme as part of to the National Informal Business Upliftment Programme.
Development and implementation of the an organisational balanced scorecard.
Enhancement of Board capacity in areas such as ICT governance.
Developing strategies to ensure presence in under serviced areas.

38. Thank You