1. NTSIKA Enterprise Promotion Agency 2002/3 Budget Presentation to the
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

2.
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”

3.
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”

4.
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

5.
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

6. FOCUS MARKET Supplier Development Programme Design, Market Development
1.5
FOCUS
Supplier
Development
MARKET
Programme Design,
Research &
Information
Market Development
& Business Linkages

7.
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

8. MARKET DEVELOPMENT & BUSINESS LINKAGES
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

9. POLICY DESIGN, RESEARCH
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

10. REFOCUSSING DELIVERY PRIOR FOCUS NEW FOCUS ACCREDITATION ACCREDITATION 2
REFOCUSSING DELIVERY
PRIOR FOCUS
NEW FOCUS
ACCREDITATION
ACCREDITATION
SERVICES
SERVICES
CAPACITY
BUILDING
CAPACITY
BUILDING
SUPPLY DRIVEN
DEMAND DRIVEN

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

12. SECTOR SECONDARY SECTORS Small scale Mining Small scale Farming 3b
SECTOR
SECONDARY SECTORS
Small scale Mining
Small scale Farming
Transport
Services

13. STRATEGIC LOCATIONS EASTERN CAPE FREE STATE GAUTENG East London Welkom
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

14. STRATEGIC LOCATIONS KWAZULU NATAL MPUMA-LANGA N.CAPE Durban Witbank /
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

15. STRATEGIC LOCATIONS NORTH WEST W.CAPE N PROV Rustenburg Cape Town
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

16. 4a
INTERVENTIONS
Focus on information provision, training & advisory services.
Geared towards businesses at different stages of development or business life cycle [incl SMME].

17. BUSINESS LIFE CYCLE STAGE 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

18. KEY DELIVERY MECHANISM
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)

19.
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)

20.
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

21. 2001 KEY PERFORMANCE MEASURES & OUTPUTS Ntsika Target SP Target Impact
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

22. 2003 KEY PERFORMANCE MEASURES & OUTPUTS Ntsika Target SP Target Impact
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

23.
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)

24.
6.1
BUDGET

25. BUDGET BREAKDOWN CATEGORY 2003 2004 2005 Direct Programme Expenditure
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

26. 1997-2005 TURNOVER [R] YEAR GOVT/DTI DONORS SMME DEV TOTAL ACTUAL 1997
6.3
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

27.
6.4
BUDGET SUMMARY 2002/3

28. BUDGET PREMISES Operational costs to programme expenditure = 30%
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

29. 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

30.
NTSIKA
Enterprise Promotion Agency
THANK YOU