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