A N Damane

1
Small Enterprise Development Agency
(seda) Presentation to Trade and Industry
Portfolio Committee
A N Damane Chief Executive Officer
2
Background
National Small Business Act (Amended) December
2004

• seda established as a juristic person
• Incorporation of Ntsika and Namac Trust
• Incorporation of agencies as designated by the
  Minister (CPPP)

3
NationalSmall Business Act
Objectives of seda

• To design and implement development support
  programmes
• Promote a service delivery network that will
  increase the contribution of small enterprises to
  the South African Economy and promote economic
  growth, job creation and equity
• Strengthen the capacity of service providers
• Strengthen the capacity of small enterprises to
  compete domestically and internationally

4
NationalSmall Business Act
Functions of seda

• Implement government policy for small enterprise
  development
• Design, develop and implement small enterprise
  development support programmes
• Access to non-financial resources
• Market access
• Foster partnerships
• Develop service delivery network

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NationalSmall Business Act
Functions of seda

• Design and implement a standard and common
  national delivery network that must uniformly
  apply throughout the Republic in respect of small
  enterprise development, integrating all
  government funded small enterprise support
  agencies across all tiers of government.
• Establish provincial structures to ensure the
  effective implementation of its functions.

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NationalSmall Business Act
Accountability to beneficiaries

• In order to ensure that seda remains accountable
  to its beneficiaries the Board must at least once
  a year hold consultative meetings with
  stakeholders, beneficiaries and provincial
  representatives to discuss the activities and
  performance of the Agency
• The business plan must include an operational
  plan, a financial plan, a human resources and
  performance management plan as well as
  performance indicators for the purposes of
  monitoring and evaluation

7
NationalSmall Business Act
Finances of seda

• Funds of seda consists of
• Money appropriated by Parliament R187 573m
• Transfers from Legacy Institutions R33 376m
• SWEEEP Funds R23m
• Finnish Government, etc R17 (commitment)
• Money lawfully obtained from other sources R14
  146m (to date)
• Includes interest and transfers from provincial
  and local government
• CEO is accounting officer
• Financial year 1 January 2005 to 31 March 2006
• Accounts and balance sheet will be audited by
  Auditor-General

8
NationalSmall Business Act
Progress to date

• Transfer of Staff from Ntsika and Namac Trust
• Transfer of assets, liabilities, rights and
  obligations
• Liquidation of Ntsika July 2005
• Deregistration of Namac Trust April 2005

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The seda Vision
to be a centre of excellence for small
enterprise development in South Africa
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The seda Mission
to promote, develop and support small
enterprises to ensure their growth and
sustainability
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The seda Strategic Objectives

• Internal
• Build a professional and functional organisation
• Increase the visibility and credibility of the
  seda brand countrywide
• Build and maintain effective stakeholder
  relations
• Create a people centered, customer focused and
  performance driven culture to make seda an
  employer of choice

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The seda Strategic Objectives

• External
• Implement an effective delivery network
• Facilitate access by small enterprises to
  products and services of seda and other public
  and private sector partners
• Develop and provide products and services that
  support small enterprises
• Unlock opportunities for local and international
  competitiveness
• Promote the culture of entrepreneurship
• Increase the number of active entrepreneurs
• Encourage innovation
• Ensure sustainability of small enterprises
• Generate, package and provide information on
  small enterprises and the economic environment in
  South Africa, including insuring implementation
  of best practices learnt from other regions and
  countries

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Value Proposition
Opportunities

S M A L L E N T E R P R I S E S E C T O R
s e d a N E T W O R K
Finance
Private sector
Premises
Info Centres
Sector Specific Incubation
Enterprise Development Centre
Mentorship

• Procurement
• Raw Materials
• Machinery

Incubation Centre
Business Linkages
Trade Point
Entrepreneurship
Chambers of Commerce
Capacity Building
Technology Centres
Research Info

Standards
DFIs

Regulations
Other IOs
Technology
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Target Market
Approximately 20 of sedas focus will be on
Medium enterprises whilst the Small, Micro
(Formal, Informal) and co-operative enterprises
will get 80 of the Agencys focus
15
Provincial Roll-outProgress to date
KwaZulu Natal

• Provincial Office Durban
• Branch Office
• Ethekwini Metro (Durban)

Eastern Cape

• Provincial Office Bisho
• Branch Offices
• Amathole (East Londen)
• OR Thambo (Mtata)
• Chris Hani (Queenstown)
• Nelson Mandela Metro (Port Elizabeth)

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Provincial Roll-outProgress to date
Northern Cape

• Provincial Office Kimberley
• Branch Offices
• Francis Board (Kimberley)
• Siyanda (Upington)
• Namaqua (Springbok)

Free State

• Provincial Office Bloemfontein
• Branch Offices
• Mangaung (Bloemfontein)
• Xhariep (Trompsburg)
• Northern Free State (Sasolburg)

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Provincial Roll-outProgress to date
North-West Province

• Provincial Office Mafikeng
• Branch Offices
• Contral District (Mafikeng)
• Bophirima (Vryburg)
• Bojanala Platinum (Rustenburg, Brits)
• Southern District (Klerksdorp)

Mpumalanga

• Provincial Office Nelspruit
• Branch Offices
• Ehlanzeni (Nelspruit)
• Nkangela (Witbank)

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Provincial Roll-outProgress to date
Limpopo

• Task Team working on final roll-out plans

Western Cape

• Task Team working on final roll-out plans

Gauteng

• Branch Office Tshwane Metro (Pretoria)
• Provincial Office Discussions initiated by the
  seda Board

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Key Programmes2005
Community Enterprise Development Programme Operate in 5 sectors, eg Tourism (Komjekejeke Heritage Tourism in Gauteng) Mining (Salt mine in Free State) Aquaculture (South African Fisher Women Association) Agriculture (Thokoza Royal Farm in KZN)
National Procurement Programme Programme available in 43 Centres 75 Enterprises supported in 5 provinces for private sector procurement worth R86m
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Key Programmes2005 (cont)
National Export Readiness Project Export Awareness Seminars (371 SMME participated) Export Orientation Course (41 SMMEs completed training) Technical Assistance Programme (105 application forms had been received to date, 20 projects are in process) Market Access Programme (6 exhibitions supported to date, 4 network events for start-ups hosted)
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Key Programmes2005 (cont)
National Small Scale Manufacturing Programme Advisory services to improve company growth and performance Technology Support Assistance in setting quality and products standards Competitiveness improvement Productivity and process improvement Foster big-small business linkages with regard to outsourcing and subcontracting
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NewProgrammes
Business Turn-arounds Programme being designed to focus on businesses in distress
Vukuzenzele Programme Launched 1 September 2005. Radio programme available in 9 languages on SABC stations
Start-up pack for new entrants Booklets, workshops, etc
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Conclusion

• Set up phase of the organisation proceeding well
• Key programmes have been identified
• Despite challenges roll-out to provinces
  proceeding well

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• Thank You