South African SMME Conference 2006 Building an Enterprising Nation 26 October 2006, Johannesburg Mrs. Wawa Damane CEO: Small Enterprise Development Agency.
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South African SMME Conference 2006
Building an Enterprising Nation
26 October 2006, Johannesburg
Mrs. Wawa Damane
CEO: Small Enterprise Development Agency
BUILDING AN ENTERPRISING
NATION
South Africa’s economic progress
• Transformation and growth
• Result in almost 7% increase in the number of new businesses since 2004– Industrial policy
– Integrated Small business strategy
– Broad-Based- Black -Economic Empowerment
– Cooperatives Development Policy
– Accelerated Shared Growth Initiative of SA
• World Class Legal Framework– Substantive legal framework particularly in
commercial, labour and maritime law regimes
– Advanced legislation relating to competition policy, copyrights, patents, trademarks, and disputes
– Independence of judiciary is guaranteed by the Constitution
• Financial System / Markets– Financial system is robust and well
regulated– Four of South Africa’s banks are in the
world top 500– The Johannesburg Stock Exchange (JSE)
is the 17th largest in the world– South African commercial banks have wide
representation in Africa
Johannesburg Securities Exchange
South Africa’s economic progress
Global Competitiveness Challenges• Reversing the historical legacy• First Economy generally competitive and
sophisticated – large and medium size firms
• Marginalized second economy– Survivalist– Unregistered– Unbanked– Low skills base– Limited job creation
Rural Poverty
Small Business- Current Status
• 95 per cent of all enterprises in South Africa • 75 % include all informal activities and self-
employment categories • Contributes about 40% to the GDP• Absorb between 50 and 60 per cent of the
formally employed labour force• Close to 70 % women entrepreneurs in the
informal sector• Year on year we see an increase of 45 % for
close corporation registrations • 32 % for companies and a massive increase in
the registration of co-operatives.
SA Small Business Challenges
• 33 % of Black South Africans operate in the formal trade
• Only 400 companies out of a potential 6000 operate in export markets
• Limitations result from– Access to finance– Technology – Access to technical skills – Export market knowledge– Ineffective business networks
SA Small Business Opportunities• Government commitment to promote the
entrepreneurship and small businesses• Positive trends with SA macro-economic outlook
– Infrastructure investment, $54billion– Tourism growth trends– Mining beneficiation opportunities– Increasing consumer demand for high value
products– Strengthening international trade relations with both
developed and developing nations– 2010 Soccer World Cup
Small Enterprise Development Agencyseda
• An integrated Service delivery model
• Implementing the Integrated Small Enterprise Strategy– Access to finance– Enabling environment– Market opportunities– Entrepreneurship– Support network
Seda’s TARGET MARKET
Small enterprises
Micro enterprises
Survivalist enterprises
•Less than 200 employees
•Developed technical & business skills
•Less than 50 employees
•Developed technical/limited business skills
•Less than 5 employees
•Limited technical and business skills
•Individual self employment
•Very limited technical and business skills
Opportunity-driven/
Entrepreneurial
Necessity-driven/
Survival
Medium
enterprises
Small enterprises
Micro enterprises
Survivalist enterprises
Characteristics20 %
80 %
Potential entrepreneurs
Seda Model
• Created by government legislation• Funded through the Dept of Trade and Industry• Governed by Board of Directors appointed by
Minister of Trade and Industry• Co-funding by other spheres of government • Monitored by the National Small Business
Advisory Council• National office
– 8 Provincial offices– 31 Branches in districts– 103 Information offices at local level
SERVICE DELIVERY NETWORK SEDA
NATIONAL HQ
PROVINCIAL SEDA OFFICE
SEDA BRANCH
ENTERPRISE INFORMATION
CENTRE
ENTERPRISE INFORMATION
CENTRE
ENTERPRISE INFORMATION
CENTRE
Serviceprovider
Serviceprovider
Roll-out of the delivery network
2005/2006 2006/ 2007
Planned 2007/8 & 2008/9
Target Achieved
Target Target
Provincial Offices
8 8 0 1
Branches 24 27 20 19
EICs 81 87 103 188
Province Branches EICs
Limpopo 3 7
Mpumalanga 3 11
Gauteng 1 17
North West 5 4
KZN 6 10
Free State 2 10
Eastern Cape
3 19
Northern Cape
2 1
Western Cape
5 4
Total 27 87
Geographical spread of seda offices
Support instruments, products & services
Provision of information
Referrals
Advice
Assistance & training
Seda services
Website:
Total visits = 504 311
Total hits = 9 059 885
National Information Centre
Walk-in Customers
CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM
Seda: Key Interventions
• Business information, advice and planning– Call Centre– Website– Local Enterprise Information Centres
• Market Access– Procurement Support– Export Readiness Training– Business Linkages– Trade Point Programme
Seda: Key Interventions…
• Access to Technology– Establishment of technology incubation
centers– Advisory and consultancy services– Technology transfer and technical assistance
• Franchising Support• Access to Finance• Development of diagnostic tools• Productivity Training
Partnerships
• Local partnerships– Private sector– NGOs– Other government agencies
• International Partnerships– Finnish Government– Flemish Government– NSIC- India– Sebrae- Brazil
SUCCESS STORIES
• KC Chemicals– Challenge: Consistent quality– Solution: SABS accreditation– Results: Employees from 1 to 18
Premier’s Entrepreneur of the year 2005
SMALL ENTERPRISE DEVELOPMENT AGENCY
(SEDA)
CALL CENTRE : +27 860 103 703
WEBSITE: www.seda.org.za
Contact DetailsContact Details
THANK YOUTHANK YOU
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