1. Seda Annual Performance Plan 2019/20
Presentation to the Portfolio Committee on Small Business Development
Board Chairperson: Mr Mbulelo Sogoni
Chief Executive Officer: Ms Mandisa Tshikwatamba

2. PRESENTATION OUTLINE Context
Introduction of Seda, its mandate and Strategic Focus
Seda’s Vision, Mission and Values
Seda Organogram, Services Network and HR Planning
Strategy Alignment to the DSBD through Set Priorities
Seda’s Performance Plan Indicators and Annual Targets
Seda’s Budget
Major considerations during the strategic planning cycle
Strategic Risks

3. CONTEXT Introducing the Seda Board:
New Seda Board confirmed by Cabinet on 27 March 2019, effective on 1 June 2019.
Have been inducted by the Minister.
Sat to approve APP on 28 June 2019.
Board Strategy session will be held in August 2019.
Seda’s mandate is premised on the need to contribute to the national outcomes of:
Inclusive economic growth
Job creation

4. CONTEXT Shareholder’s expectations:
The Ministry has made it very clear that, in summary, Seda should focus on providing non-financial support to entrepreneurs.
This entails supporting entrepreneurs establish bankable projects (i.e. viable and sustainable businesses).
Access to markets
Access to finance
Business capacity (information, skills, technology, etc)

5. CONTEXT
What informs the Board’s 2019/20 Strategic Priorities? We want to start this financial year working towards:
Positioning Seda as the Lead Incubator in government (and the country)
Coordination of the entire entrepreneurship ecosystem within government
Accessibility of the Seda/Sefa collaboration in a One-Stop-Shop Model
Establishing the SMME’s and Cooperatives support infrastructure / footprint in all 44 District and 8 Metro Municipalities with a bias towards those in rural and township economies as well as those owned by women, youth and people with disabilities
Supporting SMME’s and Co-operatives to innovate (through Digital Hubs) and to improve their turnover and capacity to create jobs

6. SEDA BACKGROUND
In 2004: The National Small Business Amendment Act- Act 29 of establishes Seda as an agency under the DTI by merging: Ntsika Enterprise Promotion Agency, National Manufacturing Advisory Centre (NAMAC) and Community Public Private Partnership (CPPP) Programme.
In 2006: The Seda Technology Programme (STP) is established by merging the GODISA Trust and the National Technology Transfer centre.
In 2008: The small enterprise support function of the South African Quality Institute (SAQI) and the technology related activities of the Technology for Women in Business
(TWIB) were incorporated with STP
In 2009: STP was fully integrated into Seda structure.
In 2014: Seda’s mandate and functions were transferred from the DTI to the DSBD in tandem with the establishment of the Ministry for Small Business Development .

7. SEDA MANDATE
Implement the policy of the national government for small enterprise development
Design and implement a standard 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 spheres of government
Design and implement small enterprise development support programmes

8. STRATEGIC FOCUS
Interventions, Coordination and Research Support aimed at enabling the following:
Partnerships that may assist the Agency to achieve its mandate, across all spheres of government, the private sector and relevant stakeholders
Provincial structures to ensure the effective implementation of the agency
objectives and a service delivery network to facilitate access and
outreach to development support for small enterprises
Research relating to small enterprise support programmes
In the process also;
Provide research support on request from the Department (improve the understanding of the public regarding the contribution of small enterprises to domestic economic growth, job creation and general welfare

9. SEDA PROGRAMME –Focus Impact Areas Promotion of entrepreneurship
Advice, information, analysis and support in the implementation of a Small Enterprise Development Policy and programme provided
Customised and general non-financial business support services
Access by small enterprises to financial & non-financial resources facilitated
Seda interventions for capacity-building services, products and services accessed by small enterprises
International and national market access for products and services of small enterprises;
Collaboration with other role players as an ecosystem facilitator
The creation of an enabling operating environment for small enterprises
Growth and sustainability
Sustainable and competitive enterprises

10. VISION, MISSION AND VALUES
Seda Vision
To be the centre of excellence for small enterprise development in South Africa.
Mission
To promote entrepreneurship and develop small enterprises by providing customised non-financial business support services that results in business growth and sustainability, in collaboration with other role players, including global partners who make international best practices available to local entrepreneurs.
Values
Nature
Innovation
Customer- centric
Responsible conduct

11. MoSBD
Seda ORGANOGRAM
Financial Accounting

12. SEDA’s DELIVERY NETWORK & SUPPORTED INCUBATION CENTRES March 2019
Provinces
Seda Branches
Colocations
Mobile units
Incubators
Eastern Cape 5 14 10
Free State 9 3
Gauteng 2 16
Kwa Zulu Natal 6 11 13
Limpopo 4
Mpumalanga 20
Northern Cape 1
North West
Western Cape
TOTALS 52 74 09 76

13. HR Planning Seda Human Resources SMME owners by province
This information, and the geo spatial exercise Seda has done with CSIR will provide a good basis for future network establishment, especially colocation and working with SALGA also following Sefa network and LED initiatives as well as public spend development programmes and BBBEE initiatives.
Seda Technology Programme and Learning Academy Centralised in National Office

14. CLIENT SERVICES JOURNEY MAP
Business Talk
Business Start
Business Build
Ideation
Business Planning
Business Registration and Launch
Business Formalisation
Market Development
Business Scaling
Business Talk
Business Start
Business Build
Ideation
Business Planning
Business Registration and Launch
Business Formalisation
Market Development
Business Scaling
Business Grow
Incubators
Business Advisors
Infrastructure
Shared Services
National Programmes (Seda and External Partners)
STP Incubators

15. SEDA’S SERVICE OFFERINGS
For survivalist and micro enterprises
Entrepreneurship awareness
Jumpstart/Pitching
Business start-up training
Business planning
Business registrations
Basic Business Skills
For small and medium enterprises
Access to local markets
Access to export opportunities
Incubation
Access to technology
Supplier Development
Manufacturing support
Quality and standards testing, advice and implementation
National Gazelles
Business mentoring and Coaching
Facilitation of access to finance
For collectively owned enterprises
Social facilitation and mobilisation
Cooperatives development and registration
Access to local and export markets
All other relevant products and services still apply
For people with disabilities
Programmes with specialist associations and organisations

16. Seda Programmes – Accredited
Impact:
Linked to New Venture Creation NQF Level 4
Start Up 1
Small Enterprise Start Up
Basic Business Skills
Business Planning Process
Tender to Secure Business
Business Advice

17. Shared Services and Joint Interventions
Seda PROGRAMMES-Capacity Development
Shared Services and Joint Interventions
Impact: Collaboration with Others
Basic Entrepreneurship Skills Development Programme
Small Business Counselling and Enterprise Coaching Programme*
Empretec*
Incubator Governance Management Development Programme *
Chamber Development Programme
Multiple courses offered through third parties, such as project management, small business consultancy, operations management etc.

18. Seda RESEARCH
Impact: Promotion of Entrepreneurship, Programme Analysis and Sector Studies
Research
Gem Report
BER SMME Quarterly Update
Ad-hoc Research
International best Practice
Information Platforms
Programme Design and Development
Development of Client Journey Model with Ecosystem Partners
Skills Development for the ecosystem in partnership with the Services Seta, Seda Staff & Practitioners
Collaboration research with the DSBD

19. ALIGNMENT WITH THE DSBD THROUGH THE PORTFOLIO STRATEGY FRAMEWORK
Impact areas
Priorities for 2019 /20 Plan
Improvement in support for SMME’s and Cooperatives based in Rural and Township Areas
Dedicated programmes and strategies for rural and peri urban SMMES
Promoting a culture of buying local in rural and peri urban areas
Coaching and mentorship programmes
Improvement in support for women, youth and disabled owned SMME’s and Cooperatives
Dedicated programs for women, youth and disabled owned businesses
Setting demographic targets in all support programs.

20. ALIGNMENT WITH THE DSBD THROUGH THE PORTFOLIO STRATEGY FRAMEWORK
Impact areas
Priorities for 2019 /20 Plan
Improvement in business formalisation for supported SMME’s and Cooperatives
Policies that encourage informal businesses to formalise
Business compliance training
Integrate service delivery plan between Seda and Sefa
Small business, cooperatives, township and village economiescross all district municipalities
Local markets for small business, co-operatives and township and village enterprises
Partnerships with Local Government for SMME support creating market value chain opportunities
Roll out Model of one stop shop

21. ALIGNMENT WITH THE DSBD THROUGH THE PORTFOLIO STRATEGY FRAMEWORK
Impact areas
Priorities for 2019 /20 Plan
Improvement in Turnover on supported SMME’s and Cooperatives
Increased market access by SMMES and cooperatives
Facilitate coordination of support to SMMEs and Business Development Standards
Improvement in Jobs created by supported SMME’s and Cooperatives
Focused support in labour intensive sectors
Facilitate 30% government procurement from SMMEs
Intensify support to high growth companies
Technical Assistance and Technology transfer partnerships with the private sector 

22. ALIGNMENT WITH THE DSBD THROUGH THE PORTFOLIO STRATEGY FRAMEWORK
Impact areas
Priorities for 2019 /20 Plan
Innovation
Significant localization of new technologies and ensure that SMMEs and cooperatives are drawn into digital economy
Design and development programmes enabling support to specific service sectors
Promote IP protection for SMMEs
Incubation
Increase number of SMMEs supported through the incubation program
Review of incubation Programme to ensure sustainability of graduating enterprises
Seda to lead incubation ecosystem through standards setting, facilitation of partnerships for establishment of new incubators and M&E

23. SHAREHOLDER COMPACT REPORTING
ALIGNMENT WITH SONA AND SHAREHOLDER PRIORITIES
Impact areas
SHAREHOLDER COMPACT REPORTING
Project
Indicator
2019/20 Target
Ecosystem Coordination
One-Stop-SMME Platform
One –Stop-SMME Model jointly developed by Sefa and Seda approved
Digital Platform providing services’ catalogue between Seda and Sefa and guidelines for online applications
SMME Payments Call-Centre and Information Services
Digital Platform On-boarding Plan for other DFIs
Trade and Market Access Promotion
Create new and Support existing SMME Markets
Local markets and trade fairs per district municipality /Metro
9 Seda partnership markets
Sector specific markets established for SMMEs in each province

24. SHAREHOLDER COMPACT REPORTING
ALIGNMENT WITH SONA AND SHAREHOLDER PRIORITIES
Impact Areas
SHAREHOLDER COMPACT REPORTING
Project
Indicator
2019/20 Target
Coordination
Repositioning Seda as lead Incubator
Standards and Quality Assurance for Incubators
Incubation Ecosystem Mapping;
Identifying and profiling incubators in the country
Gap Analysis
Coordinating strategy as part of the National Business Development Strategy developed by DSBD
Strengthen the South African Business and Technology Incubation Association (SABTIA)
Review Incubation Model – Profile incubation to enable incubation for 3-5 Years for sectors /companies that require longer incubation period
Innovation
Fastrack roll out of Digital hubs towards 100 in 36 months
Township Information and Communications Technology (ICT) Tech Business Incubation Hubs
8 Incubators; Targeting District Municipalities and Metros
Develop and support entrepreneurial skills for ICT start-ups, digital and Industry 4.0 solutions that can be scaled and commercialised
Innovation/ Industry Challenge Heckathons

25. SHAREHOLDER COMPACT REPORTING
ALIGNMENT WITH SONA AND SHAREHOLDER PRIORITIES
Impact Areas
SHAREHOLDER COMPACT REPORTING
Project
Indicator
2019/20 Target
Technical Support to SMMEs
SMME Student Entrepreneurship
Seda Cadet / Internship Model developed with key stakeholder and approved
Roll out agreement with Universities South Africa and Seda Supported TVETs
Cadet programme approved and implemented Seda supported TVET incubators using selected unemployed graduate students
Cadet Coaching Programme included in Seda partnership with the South African Institute of Professional Accountants
SMME Capacity Building
Ecosystem Capacity Building
Business Advisory and programme assessment sector standards
Framework for Quality and standards for Business Advisory Services in South Africa
Catalogue of Programme offerings to the ecosystem through Seda

26. SHAREHOLDER COMPACT REPORTING
ALIGNMENT WITH SONA AND SHAREHOLDER PRIORITIES
Impact areas
SHAREHOLDER COMPACT REPORTING
Project
Indicator
2019/20 Target
Ecosystem Coordination
One-Stop-SMME Platform
One –Stop-SMME Model jointly developed by Sefa and Seda approved
Digital Platform providing services’ catalogue between Seda and Sefa and guidelines for online applications
SMME Payments Call-Centre and Information Services
Digital Platform On-boarding Plan for other DFIs
Information on government procurement linked to the 30% government procurement
Trade and Market Access Promotion
Create new and Support existing SMME Markets
Local markets and trade fairs per district municipality /Metro
9 Seda partnership markets
Sector specific markets established for SMMEs in each province

27. SHAREHOLDER COMPACT REPORTING
ALIGNMENT WITH SONA AND SHAREHOLDER PRIORITIES
Impact Areas
SHAREHOLDER COMPACT REPORTING
Project
Indicator
2019/20 Target
Coordination
Repositioning Seda as lead Incubator
Standards and Quality Assurance for Incubators
Incubation Ecosystem Mapping;
Identifying and profiling incubators in the country
Gap Analysis
Coordinating strategy as part of the National Business Development Strategy developed by DSBD
Strengthen the South African Business and Technology Incubation Association (SABTIA)
Review Incubation Model – Profile incubation to enable incubation for 3-5 Years for sectors /companies that require longer incubation period
Innovation
Fastrack roll out of Digital hubs towards 100 in 36 months
Township Information and Communications Technology (ICT) Tech Business Incubation Hubs
8 Incubators; Targeting District Municipalities and Metros
Develop and support entrepreneurial skills for ICT start-ups, digital and Industry 4.0 solutions that can be scaled and commercialised
Innovation/ Industry Challenge Heckathons

28. SHAREHOLDER COMPACT REPORTING
ALIGNMENT WITH SONA AND SHAREHOLDER PRIORITIES
Impact Areas
SHAREHOLDER COMPACT REPORTING
Project
Indicator
2019/20 Target
Technical Support to SMMEs
SMME Student Entrepreneurship
Seda Cadet / Internship Model developed with key stakeholder and approved
Roll out agreement with Universities South Africa and Seda Supported TVETs
Cadet programme approved and implemented Seda supported TVET incubators using selected unemployed graduate students
Cadet Coaching Programme included in Seda partnership with the South African Institute of Professional Accountants
SMME Capacity Building
Ecosystem Capacity Building
Business Advisory and programme assessment sector standards
Supply Chain Regulations training to enable government reporting on 30% government procurement SMME preference
Framework for Quality and standards for Business Advisory Services in South Africa
Catalogue of Programme offerings to the ecosystem through Seda
Agreement with Chief Procurement Office

29. Enterprise Development Programme

30. Enterprise Development Programme

31. Enterprise Development Programme

32. Enterprise Development Programme

33. Seda Technology Programme

34. Seda Technology Programme

35. ADMINISTRATION

36. ADMINISTRATION

37. SEDA’s Budget Allocations
INCOME
FY 17/18
FY 18/19
FY 19/20
FY 20/21
FY 21/22
FY 22/23
FY 23/24
Audited figures
Budget
Draft
R'million
Seda - DSBD from ENE budget
575.8
580.2
607.3
641.5
676.0
716.5
759.5
STP - DSBD from ENE budget
146.1
144.6
152.3
160.3
169.1
179.2
190.0
Seda - National Gazelle programme -
15.0
35.0
30.0
31.7
33.5
35.6
Seda - IMEDP programme
31.9
34.5
36.4
STP - Capacity Building programme
30.4
30.5
15.4
16.3
17.1
18.2
19.3
STP - Enterprise Incubation programme
54.7
57.8
61.0
64.3
68.2
72.3
External earnings
39.0
20.8
29.7
12.0
Other income
9.2
5.3
11.3
5.0
6.0
TOTAL INCOME
800.5
883.1
938.8
960.4
1,011.5
1,036.6
1,097.6
EXPENDITURE
Compensation of employees
326.3
354.1
384.6
404.8
432.1
462.4
494.8
Goods & Services
430.5
511.9
537.9
536.4
559.3
553.2
580.7
Depreciation
12.7
19.2
20.1
21.1
22.2
Interest
0.4
TOTAL EXPENDITURE
769.9

38. Budget Allocations per programme
Programmes
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
Audited outcome R'000
Approved budget R'000
Estimated budgets R'000
Administration
155,650
181,556
177,362
188,832
198,117
210,004
222,604
Enterprise Development
426,229
471,656
535,949
534,094
566,230
564,646
597,265
Seda Technology Programme
187,980
229,928
225,489
237,495
247,169
261,999
277,719
Total expenditure
769,859
883,140
938,800
960,421
1,011,516
1,036,650
1,097,589

39. MAJOR CONSIDERATIONS FROM THE STRATEGIC PLANNING CYCLE
The MTEF budget allocation has been reduced by R123 million which is 5% from 2018/19 to 2020/21.
Budget pressures arising from VAT increase and inflation increases on office infrastructure contracts at an escalation rate higher than annual budget increase %
Increasing costs of leased equipment and other outsourced services
Some Partners no longer continuing to fund part of the running costs of branches that were jointly established –continuity risk for colocation service points.
This results in the budget available for programmes and projects being reduced accordingly as the total budget amount is limited.
As a result, a number of strategic initiatives had to be scaled down or postponed in previous financial years such as incubation expansion, the one municipality one product programme (OMOP), and promotion of Seda’s interventions in the key growth sectors where technical interventions are needed.
EU Funding proposals to prioritise ecosystem coordination projects and development of plans partnership initiatives alongside resolving Seda’s BBBEE Accreditation

40. MAJOR CONSIDERATIONS FROM THE STRATEGIC PLANNING CYCLE
Investment in digital systems to support operations management across the network – Overhaul aging ICT systems and infrastructure and enhancement of the e-Services Platform.
Organizational internal capacity needs in order to respond to the delivery need for programmes migrated from DSBD to Seda or in-year projects support. Seda is a service organisation and as such, needs to have a competitive retention plan for its employees and
Extensive stakeholder engagements towards the completion of a framework for professionalization of business advisory services, improving the quality of Business Advisory Services in South Africa and Professionalization of Incubation Ecosystem
Formalising a Business Development Services Cadet Programme / Internship Programme
Building on Seda’s accreditation from SSETA ( Seda as a learning academy, Venture Creations qualification and Skills Programme) obtained between 2017 and 2019
Engagements and feedback from the Portfolio Committee and other stakeholders

41. Top Risks from Seda Risk Register
Misinterpretation of organisational mandate and strategy
Failure to manage stakeholder expectations
Insufficient financial and human resources to meet the commitments as per the agreements
Reducing funding alongside expanding mandate scope and increasing operational cots
Ineffective implementation of workplace skills plan and structure not aligned to strategy
Lack of access to targeted areas – Outreach service points increasing but staff capacity remaining constant
Failure to improve the delivery model – Client Journey Model
Lack of impactful reporting due disintegrated reporting and uncoordinated interventions

42. Thank you