1. Seda 2015/16 – 2017/18 Annual Performance Plan Presentation
Presentation to the Portfolio Committee on Small Business Development
15 April 2015

2. Presentation Outline Planning, Budgeting and Reporting Cycle
The 12 Outcomes of the South African Government
Strategic Objectives of the DSBD
Envisaged Impact
Strategic Alignment – the DSBD and Seda
Seda’s Target Market
Seda’s Service Offerings
Seda’s Delivery Network as at end December 2014
Seda Strategic Objectives
Strategic Objective 1: Strategic Indicators
Strategic Objective 2: Strategic Indicators
Strategic Objective 3: Strategic Indicators
Strategic Objective 1: Strategic Indicators (Stp)
Strategic Risks
Seda and Stp Actual Funding and ENE Allocation (R mil)
Focus Areas for 2015/16
Developmental Areas

3. Acronyms BESD Basic Entrepreneurial Skills Development
CPPP Community Public Private Partnership
DeafSA Deaf South Africa
dsbd Department of Small Business Development
ENE Estimates of National Expenditure
ICT Information and Communication Technology
SANCB South African National Council for the Blind
Seda Small Enterprise Development Agency
SMME Small Medium and Micro Enterprise
Stp Seda Technology Programme

4. Planning, Budgeting and Reporting Cycle

5. The 12 Outcomes of the South African Government
Improved quality of basic education.
A long and healthy life for all South Africans.
All people in South Africa are and feel safe.
Decent employment through inclusive economic growth.
A skilled and capable workforce to support an inclusive growth path.
An efficient, competitive and responsive economic infrastructure network.
Vibrant, equitable and sustainable rural communities with food security for all.
Sustainable human settlements and improved quality of household life.
A responsive, accountable, effective and efficient local government system.
Environmental assets and natural resources that are well protected and continually enhanced.
Create a better South Africa and contribute to a better and safer Africa and World.
An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship.

6. Strategic Objectives of the DSBD
Strategic Outcomes-Oriented Goals
Facilitate the development and growth of small businesses and co-operatives to contribute to inclusive and shared economic growth and job creation through public and private sector procurement;
Facilitate radical economic transformation through increased participation of small businesses and co-operatives in the mainstream economy;
Advocate for a conducive regulatory environment for small businesses and co-operatives to enable access to finance, investment, trade and market access in an equitable and sustainable manner;
Facilitate partnerships with all spheres of government as well as the private sector to ensure mutual cooperation that will benefit small businesses and co-operatives.

7. the DSBD – Envisaged Impact
Incentive programmes aimed at creating new businesses, which will increase the potential for new jobs
Public and private sector procurement geared towards improving market access (including growth and development) for black small enterprises and co-operatives (e.g. fixing of potholes)
Increase culture of entrepreneurship aimed at increasing the number of new innovate and sustainable business ventures that will contribute to job creation
Creating a simplified policy and regulatory environment for SMMEs and Co-operatives development to eradicate poverty, inequality and unemployment

8. the DSBD – Envisaged Impact
Through the Export Development Programme, companies will improve their ability to export and reduce the costs and risks involved in penetrating foreign markets
The provision of technical and business development services to the targeted groups (youth, women and people with disabilities) will result in upgraded skills, improved quality of products, access to local and international markets, enhances and sustainable enterprises, increased employment
Enhanced support to informal businesses, rural and township enterprises will increase the competitiveness, resulting in sustainable enterprises and retention of existing jobs.

9. Strategic Alignment – the DSBD and Seda
DSBD Strategic Objective
Seda Strategic Objective
Seda Programme
Facilitate the development and growth of small businesses and co-operatives to contribute to inclusive and shared economic growth and job creation through public and private sector procurement.
Enhance competitiveness and capabilities of small enterprises through coordinated services, programmes and projects.
Business Advisory Services
Incubation
Supplier Development
Quality and Standards Training and Implementation
Export Readiness and Facilitation
Technology Transfer
Facilitate radical economic transformation through increased participation of small businesses and co-operatives in the mainstream economy.
Ensure equitable access to business support services.
Cooperative Support Programme
Basic Entrepreneurial Skills Development (BESD) Programme
Partnerships on cost sharing
Co-location
One-stop shops
Advocacy
Gazelles Programme

10. Strategic Alignment – the DSBD and Seda
DSBD Strategic Objective
Seda Strategic Objective
Seda Programme
Facilitate partnerships with all spheres of government as well as the private sector to ensure mutual cooperation that will benefit small businesses and co-operatives.
Enhance competitiveness and capabilities of small enterprises through coordinated services, programmes and projects.
Incubation
Supplier Development

11. Seda Target Market

12. 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

13. Seda Delivery Network at end Dec 2014
Province
Seda Branches
Seda Satellite Offices
Seda Supported Incubators
Co-location Points
Mobile Units
Info Kiosks EC 6 8 5 3 FS 2 1 GT 16 7
KZN 11 4 LP
MPU 14 NC NW WC 12 13
TOTAL 43 47 29 19 53

14. Seda’s Strategic Objectives
Enhance competitiveness and capabilities of small enterprises
through coordinated services, programmes and projects.
Strategic Objective 2:
Ensure equitable access to business support services.
Strategic Objective 3:
Strengthen the organization to deliver on its mission.

15. Performance Indicator/measure
Strategic Objective 1: Strategic Indicators
Outcome
Output
Performance Indicator/measure
Performance Targets
2015/16
2016/17
2017/18
Client satisfaction ensured
Client satisfaction surveys conducted
% of surveyed clients satisfied with the quality of Seda services
94%
95%
96%
Client business performance improved
Client improvements assessment conducted*
% of surveyed SMME clients whose turnover has increased
54%
56%
58%
% of surveyed SMME clients whose number of employees has increased
35%
37%
39%
Supplier development programme implemented
Number of supplier development programme partnerships 5 10 15
Number of clients supported 75
150
225
Trade facilitation programme implemented.
(Access to markets)
100
125
Mentorship and coaching programme implemented
Number of clients supported.
Training on national and international standards conducted
Number of clients trained
536
563
591

16. Performance Indicator/measure
Strategic Objective 2: Strategic Indicators
Outcome
Output
Performance Indicator/measure
Performance Targets
2015/16
2016/17
2017/18
Client reach improved
Clients assisted
Number of clients working with
11,400
10,830
10,290
Proportion of clients in the upper end of the SMME sector increased
Support interventions provided to clients in the upper end of the SMME sector
Number of clients in the upper end of the SMME sector assisted with interventions
372
343
361
Number of new partnerships on high impact programmes (HIPs) to service the upper end of the SMME sector 10 5
Support to clients in key growth sectors prioritised
Support interventions provided to clients in the priority growth sectors
% of clients in the priority growth sectors assisted with interventions.
40%
50%
60%
Rural enterprise development enhanced
Large scale projects and cooperatives assisted with support interventions
Number of secondary marketing cooperatives supported. 36 45 54
Number of primary cooperatives established. 90
Township and peri-urban enterprise development enhanced
BESD programme implemented
Number of clients supported
1,000
Cost sharing with delivery partners maintained
Partnership agreements implemented
Value of service provision costs covered by partners
R 10,3 mil
R 10,6 mil
R10,9 mil

17. Performance Indicator/measure
Strategic Objective 3: Strategic Indicators
Outcome
Output
Performance Indicator/measure
Performance Targets
2015/16
2016/17
2017/18
Cost efficiency improved
Financial expenditure monitored
% of direct service costs versus total costs
73%
74%
75%
% of programme related funding allocated to clients in the upper end of the SMME sector
15%
25%
35%
Organisational staffing improved
Vacancies filled
% vacancy rate
12%
10%
Seda image improved
Advocacy and lobby initiatives implemented
Annual Stakeholder Forum (ASF) held
ASF held by end September
ASF held by end Septemb er
Number of updates on the state of the SMME sector produced 2

18. Performance Indicator/measure
Strategic Objective 1: Strategic Indicators (Stp)
Outcome
Output
Performance Indicator/measure
Performance Targets
2015/16
2016/17
2017/18
Incubation support enhanced
Existing and new incubators supported
Number incubators supported. 55 56 57
Client satisfaction ensured
Client satisfaction surveys conducted
% of clients satisfied with the quality of Seda services
72%
74%
76%
Client business performance improved
Client improvement assessments conducted
Number of jobs created
1,650
1,815
1,996
Client support services provided
Number of clients supported
1,881
2,069
2,276
Small business establishment facilitated.
Number of new SMMEs created
331
364
400
Technology transfer programme implemented
Number of clients assisted 66 69 72
Conformity assessment and product testing programme implemented.
144
151
158
Systems implementation support provided 34 36 38

19. Strategic Risks Risk name Original Risk Rating Residual Risk Rating
Inappropriate and irrelevant small enterprise support and services.
High
Moderate
Failure to service the upper end of the SMME market
Inadequate stakeholder engagement
Inadequate skills
Inadequate ICT resources and strategy to support the strategy of the organisation
Inadequate funding
Low
Misalignment of Seda’s strategy with the DSBD
Ineffective execution of strategic initiatives
Inefficient utilization of resources

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

21. Focus Areas for 2015/16
To focus on outcomes (job creation, increase in turnover and sustainability), the following are key focus areas/themes for the 2015/16 financial year:
Roll out of Small Business incubation.
Focused attention on cooperative support, including collectively owned large scale projects.
Implementation of the Gazelles programme to identify and profile high performing entrepreneurs.
Facilitation of timeous payment of SMMEs.
Public/Private Partnerships.
Directing specific interventions at medium sized enterprises and cooperatives (i.e. employing between 21 and 200), such as access to markets, mentorship and coaching, supplier development, technology transfer.
Repositioning of support functions from a reactive role to a proactive, strategic support role, especially in areas such as ICT, advocacy and lobbying, and human capital.

22. Developmental Areas
Ensuring that Seda has sufficient funding for key programmes.
Attracting and retaining, as well as developing key, skilled staff.
ICT controls and enterprise architecture.
In-depth research and understanding of the upper end of the SMME sector.
Developing focussed programmes for the small and medium size segment.
More private sector involvement especially on procurement opportunities.
Prioritisation of high impact programmes (supplier development, mentorship and coaching, access to local and foreign markets, incubation and technology transfer).
Service provider competency levels.
Elevating the SMME agenda and discourse.

23. Success Stories Business type– Jewellery manufacturing.
Business name – Lichaba Creations.
Seda’s interventions – Marketing material, technology transfer incentive and quality management system implementation.
Outcome – Increase in annual turnover from R1.1mil to R5.5mil. 53 additional jobs created. Penetrated international markets.

24. Success Stories
Business type– Drainage pipes manufacturing and assembly.
Business name –Sequal
Seda’s interventions – Implementation of quality management system, facilitation of stage 1 SABS audit.
Outcome – Sequal now listed as a Massmart supplier, supplies Builders Warehouse, Builders Trade and the Spar Group. Expanding to Australia.

25. Success Stories
Business Type – Manufacturing of muesli and related products
Business name – Number1 Muesli
Seda’s interventions – Marketing material, facilitated access to finance (expansion), assistance in product development, productivity and quality improvement.
Outcome – Company exporting to the USA. Expanded to new facility that can produce 600 tons of muesli a month and potentially employ 150 additional people.