Presentation to the Portfolio Committee of Small Business Development on 12/05/2015.

Presentation to the Portfolio Committee of Small Business Development on 12/05/2015

Delegation Details

1. Ms Gail Downing – Chairperson of the Board Acorn Group of Companies – Executive Director Telephone : 011 704 6100 Mobile: 083 251 2262 Email: [email protected]

2. Ms Lindiwe Ngcobo –Board Member Inhlansi Business Enterprise (Pty) Ltd Director & Deputy Chairperson Telephone: 033 396 1297 Mobile: 083 303 1697 Email: [email protected]

3.. Ms. Ruth Masokoane – A/CEO SAWEN Telephone: 011 403 1048 Mobile: 083 677 9497 Email: [email protected]

mailto:[email protected]

mailto:[email protected]

Who are we?

Non Profit Company (formerly S21)

- National Patron – Deputy Minister Hon. E. Thabethe (MP)

- Presidency

- Board of Directors

- Provincial Executive Committees

- 9 Provincial Chapters

- 3 offices (Gauteng, KZN, WC)

National Membership

Why do we exist?

• Beijing Platform Action Plan

- Women economic empowerment

- Advocacy for gender equality

• Status quo in South Africa (Challenges faced by Women-owned SME's and Co-operatives)

Challenges faced by Women-owned SME's and Co-operatives

• Majority of the population of South Africa are women yet their participation in

the economy is poor.

• Access to finance, information, technology and markets.

• Women operate primarily in the informal sector.

• Low levels of appropriate skills & education.

• Poor access to domestic and global markets.

• Weak platforms for advocacy and recognition.

• Poor coordination of women support interventions.

• Inadequate monitoring and evaluation mechanisms of women’s information

• Uneven geographical spread of the programs.

SAWEN Historical BackgroundTimeline

Launched in 2002

Registered as a Section 21 Company in 2004

Fund Manager – Khula (now Sefa) -2004 to 2012

Offices established and operational – 2005 - 2009

Uncertainty & closure of offices – 2009 -2010

Relaunched in 2011

Re-established offices - 2011 - 2012

Rebuilding & capacity building – 2011 to date

Fund Manager – Seda 2012 to date

Policy Instruments

Body copy to be inserted hereThe National Development Plan

Medium Term Strategic Framework 2014-2019

Primary legislation Supplementary legislation

Small Business Development Act 1980 BBBEE Act

National Small Business Act 1996 amended 2004

Preferential Procurement Policy Framework Act

Companies Act, 2010 Women and Gender empowerment strategy

Co-operatives Act, 2013 Co-operatives strategy

SAWEN Constitution

SAWEN IdentityVision

A premier national women’s agency providing holistic entrepreneurship support to existing and aspiring entrepreneurs

Mission

Facilitate and monitor the advancement of women entrepreneurs and their impact on the economy of South Africa through:

Business networking and linkages

Training, development and support

Research, advocacy and lobbying

Recognition of achievements

Alignment of Strategic ObjectivesDSBD Objectives SAWEN Objectives Programme

1. To facilitate the development & growth of small business and co-operatives to contribute to inclusive & shared economic growth and job creation through public and private sector procurement.

1.To provide platforms for women entrepreneurs for access to business opportunities.

2.To facilitate access to business resources, information and opportunities for women entrepreneurs

PhakamaFarisananiMenyetla

2. To facilitate radical economic transformation through increased participation of small businesses & co-operatives in the mainstream economy.

Alignment of Strategic Objectives cont.

DSBD Strategic Objectives

SAWEN Strategic Objectives

Programme

3. To advocate for a conducive regulatory environment for small businesses & co-operatives to enable access to finance, investment, trade and market access in an equitable and sustainable manner

3. To provide a national vehicle to address the barriers faced by women 4. To lobby government and other stakeholders on identified issues/barriers affecting women entrepreneurs.

Zabalaza

4. Facilitate partnerships with all spheres of government as well as the private sector to ensure mutual co-operation that will benefit small business and co-operatives.

4. To align SAWEN with organisations of similar interests, locally, nationally and internationally in order to leverage opportunities for the benefit of women entrepreneurs.

FarisananiMenyetla

Alignment of Strategic Objectives cont.

DSBD Strategic Objectives

SAWEN Strategic Objectives

Programme

6. To profile, affirm and recognize achievements of women entrepreneurs.

Halala!

SAWEN Target Market

Women who are engaged in informal income-generating activities but have aspirations to grow their enterprises and become formal entities in the future.

Women who have an interest in operating businesses and Co-operatives but lack the “know-how” to start. (facilitation and referrals to various partners such as CIPC, SARS, Seda, Sefa)

Women who own and operate SMEs and Co-operatives within the broader economy of South Africa. They must be self-employed and their companies must be registered.

SAWEN Values

• Perseverance

• Respect

• Integrity

• Collaborations

• Excellence

SAWEN Programmes

• Phakama – Connecting and uplifting women entrepreneurs

• Farisanani – Leveraging and achieving through others

• Menyetla – Linking opportunities to women entrepreneurs

• Zabalaza – Shifting mindsets through advocacy

• Halala! – Recognising and celebrating excellence of women

entrepreneurs

Service Offerings

Networking platform

• Quarterly provincial networking sessions

• National annual meeting

• Conferences & summit

• Business information and resources

Partnerships and resource mobilisation

• Collaborations

• Stakeholder engagement

Service Offerings cont.

Access to opportunities

• Training and capacity building

• Market Access Platforms

Advocacy & Lobbying

• Research

• Stakeholder engagement

Ligugu Lami Awards

Membership Information

Current Membership Fees = R350.00 per annum

Number of members in Good Standing as at 31 March 2015 = 972

Membership profile

The current membership profile is:

39% of members are within 18-35 age group47% of members are in the informal sector41% of members reside in rural areas51% of members are township residents82% of members are African

We do have members who are disabled, however our current reporting does not include reporting separately on these members. This will be corrected going forward.

Furthermore, Presidential Nodal Areas will be added to future reporting requirements.

Performance OverviewApril 2014 – March 2015

Body copy to be inserted hereProgramme Annual

TargetAnnual Actual

%Achieved

PHAKAMAOutreach activities 12 10 83%

Networking Events 31 31 100%

Provincial AGMs convened 2 1 50%

National AGM 1 1 100%

Marketing Strategy Document developed Work in progress

FARISANANI

Partnerships concluded 2 2 100%

Joint initiatives undertaken 2 4 200%

Stakeholder engagement 4 4 100%

Outreach for Corporates 3 1 25%


Programme Annual Target

Annual Actual

%Achieved

MENYETLA

Market Access opportunities # of members who benefitted # of events

208

18 7

95%88%

Training Interventions- General Business Training 250 258 103%

- Quality Enhancement Programme 100 63 63%

- Market Readiness 60 63 105%

- Digital Literacy 105 124 118%


Programme Annual Target

Annual Actual

%Achieved

ZABALAZAConsultative Research report on the status of Women accessing incentives schemes of the dti

1 report 0.5 50%

HALALALigugu Lami Awards convened 1 event 1 event 100%

ORGANISATIONAL DEVELOPMENT3-year strategy plan Done Done 100%

Implement HR policy Work in progress

Provincial Executive Development 8 5 64%

Recruit additional staff Work in progress

Organisational Challenges

Limited Budget since inception

Inadequate Organisational Capacity

Stagnant Membership

Relationship with Principal (Gender & Women Empowerment

Unit)

Fund Management

Limited Budget since Inception


• Lack of internal organisational capacity due to limited budget allocation.

• Focus limited to programme delivery and maintaining membership.

• Primary focus on programme delivery – 65% of budget allocation to programme work



Human Resources

•Current structure

• 16 approved positions

• 11 staff members

• 5 vacant positions to be filled by end June 2015.

• Acting CEO seconded from SEFA 2009 to date



Human Resources

Proposed structure 2015/16

• Increase headcount to 21 (growth by 5)

• 5 vacant positions to be filled

• Acting CEO seconded from SEFA 2009 to date



Human Resources & development

• Lack of Human Resource function

• Inadequate headcount

• Fixed-term employment contracts linked to SAWEN’s budget allocation

• Low staff morale due to lack of employee benefits and development



Systems

• Policies, procedures

• Monitoring & evaluation

• Administration

Geographic footprint – Offices in Pietermaritzburg, Cape Town and Braamfontein

• Limited reach



Business plan approval processes

Fragmented related programmes e.g. TWIB, Techno Girls, Bavumile, etc.

Relationship with Principal (Gender & Women Empowerment Unit)


5% management fees paid to SEDA

MOU between Department and SEDA, excluding SAWEN

Delays in fund transfers due to administrative processes

between Department and SEDA

Fund Management


Example of InterventionsTraining

Example of InterventionsMarket Access

Members are given the opportunity to exhibit their products/services in various platforms.

•Décor Excellence exhibited at Decorex Gauteng at Gallagher Estate and generated sales of R150k from one event.

•The following exhibited at the recent Wedding Expo at Northgate Dome and feed back on orders received is:

• Diamond Love Bridal = R80k

• Mokgalaka Creations = R10k

• Gloria’s Design = 4 matric dance dresses ordered

• Ledikana Creations = R2k

2015-2016 PERFORMANCE PLAN

Performance Plan2015/16 Programme Baseline Annual

Target

PHAKAMAOutreach activities 10 12

Networking Events 31 36

Company AGM, Annual members Meeting

Company AGM & Annual Members meeting convened

Convene AGM, Annual Members meeting

Implement Marketing Strategy

Provincial AGM convened 1 1FARISANANI

Partnerships concluded 2 2

Undertake Joint initiatives 4 2

Stakeholder engagement 4 4

Performance Plan2015/16

Programme Baseline Annual Target

MENYETLA

Market Access opportunities # of members who benefitted # of events

18 7

30 7

Training Interventions- General Business Training 258 275

- Quality Enhancement Programme 63 100

- Market Readiness 63 70

- Digital Literacy 124 140


Programme Baseline

Annual Target

ZABALAZAPublish research report and present to stakeholders

HALALALigugu Lami Awards 1 event

convenedConvene1 event

ORGANISATIONAL DEVELOPMENTProvincial Executive Development 5 mentoring

and/orInduction sessions held

3 mentoring and/or inductionheld

Recruit additional staff


Programme Baseline Annual Target

EXPANSION OF INFRASTRUCTUREAdd 2 provincial offices through co-location with Seda/Sefa or other government departments

3 offices 2

CO-OPERATIVES ENTERPRISE DEVELOPMENTIdentify opportunities and facilitate value-chain manufacturing activities

0 2

2015-2016 FINANCIAL PLAN

Budgeted Income

Description 2015/16 (R'000) 2014/15 (R'000) Variance

dsbd allocation 16,726 16,000 4%

Interest @ 2% 84 44 48%

Membership fees 308 280 9%

Co-payments 25 20 20%

Commitment Fees 20 20 0%

Retained Income 5,176 - 100%

22,339 16,364 27%

• dsbd allocation increase – 4% • Interest rate used – 2%. Increase based on actuals.• Due to increased membership fees and the actual payments received in 2014/15 membership fees have

been calculated at 880 fee payments of R350.00• Commitment fees of R50 by 400 members attending capacity building or training courses• Co-payments of R250 by 100 members attending National events• The income received from members is utilised for capacity building and training courses• Retained Income of R5.2mil to be utilised on programme costs in 2015/16 financial year.

2015/16 Budget AllocationRatio

• 2015/16 budget increase is 4%• Programme costs are 65 % of the overall budget expense and 35 % towards operating related expenditure.

This is inline with statutory prescripts i.e. PFMA which proportional income of SAWEN is derived from. Going forward programme performance will monitor and reported in line with expenditure trends.

2015/16 Budget AllocationProgramme Costs

Programme Costs2015/16 Budget

2014/15 Budget

Phakama 4,380,000 3,235,000 26% Farisanani 1,680,000 1,940,000 -15% Menyetla 2,917,354 2,250,000 23% Zabalaza 200,000 500,000 -150% Halala 1,910,000 1,810,000 5%

Co-operatives Enterprise Development Support 3,000,000 100%

Organisational Dev. 175,000 141,667 19%

Expansion of Infrastructure 200,000 - 100%

14,462,354 9,876,667 32%

• Programme costs exclude provincial administration and overheads charges• Programme costs are 65% of overall expense budget. • A 32% increase in programme cost budget is due to the retained income from 2014/15 budget

which will allow for the Co-operatives Support Initiatives programme to become a reality.

2015/16 Programme CostsPhakama

Programme Expense2015/16 Budget

2014/15 Budget

Phakama National AGM 680,000 560,000

Provincial AGMs 100,000 175,000

Marketing Strategy 380,000 250,000

Outreach Activities 150,000 150,000

Provincial networking 2,970,000 2,100,000

PEC Development 100,000 212,134 Phakama Total 4,380,000 3,447,134

• National AGM Budget has been increased to cater for the transport costs.• Marketing Strategy – to assist with the finalisation and implementation of an overarching Marketing strategy

incorporating fundraising, recruitment of members, communication, rebranding etc.• Outreach activities – where called upon by other institutions to present information relating to SAWEN• Provincial networking – caters for 36 networking sessions in the provinces for the year• PEC Development – Existing Provincial Executive Committee (PEC) members will be provided with mentoring,

leadership skills and general support during the financial year until such time that the structures are dissolved in March 2016.

2015/16 Programme CostsFarisanani


2014/15 Budget

Farisanani Partnerships 20,000 20,000

Joint Initiatives with other organisations 300,000 200,000

Corporate Outreach - 120,000

Stakeholder Engagement 1,360,000 1,600,000 Farisanani Total 1,680,000 1,940,000

• Partnerships – a small budget is set aside to assist with the process of entering into partnerships with 2 entities e.g. SEDA, Productivity SA, etc.

• Joint Initiatives – this budget allows for two joint initiatives to be undertaken with 2 other organisations e.g. WEISED; Mzansi Women Chefs, etc..

• Stakeholder Engagement –International and/or National engagements with stakeholders to expose members to international best practice on Women Economic Empowerment issues as well as advocacy. E.g. Global Women’s Summit in Brazil; SAWEN’s involvement in the Atlanta Showroom to facilitate members’ participation in the market access project.

2015/16 Programme CostsMenyetla

• Market access platforms – to facilitate 30 members to exhibit in 7 local and/or international fairs and expos like Decorex, Macufe, Rand Easter Show, Polokwane Show, etc.

• A large portion of the budget is set aside for various training initiatives that will assist members in growing their businesses. We aim to train 585 members in various areas of business and development.


2014/15 Budget

Menyetla Market Access Platforms 927,354 450,000

Training General Business Skills 650,000 650,000

Training Quality 540,000 450,000

Training market Readiness 300,000 300,000

Training Digital Literacy 500,000 400,000Menyetla Total 2,917,354 2,250,000

2015/16 Programme CostsZabalaza

• To publish the report of the research commissioned in 2014/15 and present to relevant stakeholders and lobby for improvements as per recommendations.


2014/15 Budget

ZabalazaResearch on Women Access to dti Incentive Schemes 200,000 500,000

Zabalaza Total 200,000 500,000

2015/16 Programme CostsHalala!


2014/15 Budget

Halala! Ligugu Lami 1,910,000 1,810,000Halala! Total 1,910,000 1,810,000

• R1m of the dsbd’s allocation will be ring-fenced for the prizes of Ligugu Lami Awards. The award allocation is used to further enhance the winners’ businesses by funding identified needs.

Should the amount not be utilised fully during the financial year, it is recommended that the balance be redirected to other programmes.

• Expenses included are for adjudication costs, promotion of competition, DVD and magazine production, certification and presentation costs. Included in this cost is the post competition monitoring and evaluation of entrants and winners.

2015/16 Programme CostsCo-operatives Enterprise Development (As a pilot project)


2014/15 Budget

Co-operatives Enterprise Development Co-operatives Enterprise Development 3,000,000 nil - Co-operatives Enterprise Development Total 3,000,000 -

• Identify opportunities in catalytic sectors for women-owned co-operatives.• Mobilising support from Seda for Incubation support services and Sefa for finance support.• Facilitating the participation of identified Co-operatives to engage in value chain manufacturing

• Ideal scenario - Massification of value chain manufacturing initiatives• Clothing & Textile - 30 Co –operatives @ R10m = R300m per annum (minimum) = at least 3 per province• Sanitary , surgicals and related products = 20 Co-operative @ R10m = R200m per annum (minimum ) = at least 2 per province• Protective gear = 10 co-operatives @ R10m = R100m (minimum per annum) = at least 1 per province

2015/16 Programme CostsOrganisational Development

Programme Expense2015/16

Budget2014/15 Budget

Org. development Human Resources Policy - 41,667

Employ staff 75,000 100,000

Strategic planning - 200,000

Upgrade CRM 100,000 - Org. development Total 175,000 341,667

• Recruitment cost to employ 5 new staff members and to fill existing vacancies• To upgrade the CRM for efficient monitoring of members’ involvement in activities and training and to

cater for automated invoices with online payment options.

2015/16 Programme CostsOrganisational Development

• Expand geographic footprint by co-locating with Departments or Agencies in Limpopo and Northern Cape

Programme Expense 2015/16 Budget 2014/15 BudgetExpansion of Infrastructure Provisional Offices 200,000

Expansion of Infrastructure Total 200,000 -

Wish List for theFuture of SAWEN

Future of SAWEN continued

To radically transform SAWEN to be a meaningful and powerful vehicle to advance the agenda of women-owned SME’s and Co-operatives for purposes of achieving radical economic transformation to address poverty, unemployment and inequality. Reconfiguration of SAWEN to be key player in the following areas:

1.Advocacy & Lobbying – The Voice of Women Entrepreneurs

2. Training and Capacity Building - up-skilling women-owned SMEs, Co-operatives and women operating in the Informal sector in order for them grow their businesses and participate meaningfully in the mainstream economy.


3. Enterprise Development – facilitating the participation of Co-operatives in value chain manufacturing initiatives.

4. Supplier Development – linking women-owned SME’s & Co-operatives to public and private sector procurement opportunities.

5. Facilitation of finance and incubation with relevant agencies, State owned entities and DFIs.


Increase Funding to – R100mil per annum to strengthen infrastructural requirements and impact of programmes

Co-Operatives Enterprise Development initiatives – R600mil per annum

Migrate women entrepreneurial programmes from Gender Unit into SAWEN

Reposition SAWEN as a public entity in line with Schedule 2 or 3 of the PFMA.

Incorporate and streamline women entrepreneurial programmes to propel our country to achieve equitable gender mainstreaming budget processes.

Conclusion

South Africa must honour commitments made at Beijing in earnest by increasing support to women-owned SME’s and co-operatives.

Improve relationship and dialogue between SAWEN & the DSBD wrt: reconfiguring SAWEN

Work in progress (experiential learning)

Conclusion

Malebo!!!!

Presentation to the Portfolio Committee of Small Business Development on 12/05/2015.

Documents

date slide

business networking

business opportunities

business resourc

womenowned smes

poor coordination of

wc national membership

poor access