Moving up the value chain SMMEs and Ebusiness

Moving up the value chainSMMEs and Ebusiness

World Bank Video-conference 2004/11/04

Nhlanhla MabasoCSIR

Outline

● Challenges

● Achievements

● Value chain

● Conclusion

Recommendations from PNC reportRecommendation National SMMEs

ICT-related Users of ICT

A. Improve National Factor Conditions1. Decrease cost and availability of telecommunications X X X2. Improve quality of education X X X

1. Reduce/Change bureaucracy and regulations X X

2. Improve government service delivery X X

C. Improve SMME Support environment1. Increase ICT literacy X X X

2. Improve start-up business environment X X

X X

D. Support Specific Sector interventions

1. Establish Classification System X X

2. Apply targeted support strategies X X

B. Improve SMME Regulatory and Policy environment

3. Strengthen government information services to SMMEs

E-Government house of value

Interoperability

Information S

ecurity

Econom

ies-of-Scale

Less D

uplications

Citizen Convenience

Lowered Costs

Increased Productivity

e-GovernmentBusiness Case

Duplication & false economies

DTI(2b)

DOH(2b)

DOT(2b)

SMME 1 (2m)

SMME 2 (2m)

Reseller 3 (2m)

DOLA

(2b)

Multinational 4(2m)

DOME(2b)

Reseller 5 (2m)

DOME

(2b)

Reseller 6 (2m)

Company 7 (2m)

Company 8 (2m)

DOD(2b)

DOD(2b)

Digital Commons

SMME 1

Digital Commo

ns

DST

SMME 2/DOH

Reseller 3/DOT

Reseller 5/DOME

Reseller 6/DOME

Company 8/DOD

Company 7/DOD

Multinational 4/DOLA

Collaboration for Innovation

Coase's Penguin (Benchler)

Human Language Technologies● Translate.org.za

– Mozilla into multiple African languages

– Afrikaans, Sesotho sa Leboa and isiZulu builds in OpenOffice.org

● Senegalese Sängö OpenOffice Translation Sängö

● Kompyuta ne Yuganda

– Enable a literate Luganda speaker into ICT

● KiSwahili OpenOffice translation training in October 2004

● India-Brazil-South Africa institutional collaboration

Achievements● Charles Majola

– 19 year old born in Katlehong

– programmer for an open-source accounting program

● ICT Charter

● eGovernment

● Creative Commons South Africa

● Impi Linux– 24/7 Support Hotline

Year 2 Year 3Year 1

Consumers

Followers

Leaders

Moving up the value chain

Resellers

Collaboration

ValueValue

Innovators

Partnerships

TradeBalance

Conclusion

● Collaboration

● Appropriate models

● Business as usual

Growth Africa - 18/02/03 (mb)

Very large, low-productive, informal sectorwhich needs to be enlarged and some support in

moving towards the modern economy

Modern Mains treameconomy

Globally Competitive

Emerging SMEs“Semi Formal Sector”

Formal sector

Informal sector

•Clusters• Incubators,• Technology transfer, • Joint Ventures, • Enhanced trade links, • Strategic partnerships

Sector SpecificSupport Services

Generic servicesgreatly needed; entrepreneurship training;need to develop MORE firms

• Procurement opportunities• Spin-outs; • Tendering• Trade incentives

• Local incentives;• New markets; • Better access to gov. programs;

“Informal sector”

Sector SpecificSupport Services

Growth -orientated firms

Standard everyday firms, the mainstream of the regional economy

Partial Sector/

Generic

Support

• Markets;• Trade;• Sector clustering;• Financial;• Technical;• Business,• Supportive local legislation

Mo

re

so

ph

isti

ca

ted

Le

ss

s

op

his

tic

ate

d

Big Business

Medium-Sized Enterprises

Micro Enterprises

x x x x x x x x x x x x x

Informal

Survivalist

Very Small Enterprises

Small-Sized Enterprises

I D C

Khula

M A C

Ntsika

Financial Support Services Non-Financial Services

Micro Lenders