Briefing on the Establishment of the Small Enterprise Development Agency (Seda)

1. Briefing on the Establishment of the Small Enterprise Development Agency (Seda) Lead by Ms Mpumi Johnson Enterprise and Industry Development, Department of Trade & Industry Date: November 2004

2. Outline • Introduction • Rationale for Establishing Seda • The dti response to the challenge • Seda Concept • Discussion of provincial challenges • Implementation feedback • Conclusion

3. Range of Strategic Reviews Have Recommended • Integrate all service delivery through Seda service delivery points • Integrate Small Enterprise development strategy with DTI and other Government departmental programs • SMME support programs should be demand driven, with an emphasis on the specific key sectors for economic growth and special programs • A common delivery footprint should be followed nationally in order address outreach and improved access to development support • The implementation of the strategy will be done in partnership with provincial, district, and local government • Small Enterprise development will optimally exploit the opportunities presented through Government procurement, BEE, Sector strategies, government programs and any similar instruments • Development support support pillars are: • Promotion of Entrepreneurship • Access to Opportunities • Build Enterprise Capacity

4. The dti response to the challenges Small Enterprise development policy thrust:- • To foster a culture of entrepreneurship to increase small enterprise contribution • Increase access of small enterprises to opportunities to improve their sustainability • Increase the competitiveness of small enterprise through capacitating

5. The dti response to the challenges The primary objective for the establishment of the SEDA is • To increase the capacity of government to deliver support services to Small Enterprises in a manner that will improve efficiency and effectiveness of service delivery • The Small EnterpriseDevelopment Agency (Seda) will be established to deliver non-financial development support services • Ntsika and Namac will merge into Seda

6. The dti response to the challenges Strategic Pillars of Seda: • A service delivery network that is visible at local level to address issue of access and outreach • Access to information and opportunity to promote access to entrepreneurial activities • Programs that deliver according to the diverse needs of small enterprises to address sector specific and local needs • To leverage efficiency and effectiveness through a service provider network to support programs and the network • Partnerships with stakeholders to leverage resources and integrate delivery • Monitoring and Evaluation of service delivery to assess impact and progress • An effective and efficient organization to deliver to the challenge

7. Provincial Seda Provincial Seda Provincial Seda Service Delivery Network Seda’s National Footprint National Seda Provincial Small Enterprise Development Agency

8. Service Delivery Network Seda’s National vs. Provincial Roles National SEDA Provincial SEDA National SME Strategy Implementation (non-financial) Provincial SME Strategy Implementation (non-financial) Linkage Funding arrangement Coordination Communications Corporate Support Quality Management Product Development Center of Excellence to Coordinate and Supporting implementation of National Small Business development support Coordinate and Supporting implementation of Provincial Small Business development support

9. Development Support Services Local Seda services to small enterprises Information & Opportunities Advice “The first line of contact for SMME support” Expertise

10. Access Point Advice Opportunity SMME Referral Info Development Support Services Seda Access Point Services Delivered Through In-house Staff

11. Enterprise Capacity Building Development Entrepreneurship Development SMME Technical Support Tools Business Environment Support Development Support Services Business Development Support Services Delivered Through In-house & Service Providers

12. Sector Specialists Project Specific SMME Local Areas Specific Business Environment Specialist Development Support Services Referral to Expert Support Delivered Through Service Providers

13. Provincial Seda Provincial Seda Local Seda Local Seda Local Seda Local Seda Service Delivery Network Provincial Seda’s Footprint Seda National Provincial Head office Provincial Small Enterprise Development Agency

14. Service Provider Service Provider Summary: Seda Concept Operating Environment Institutional Networks Local Seda Service Point National SEDA Provincial SEDA Regional SEDA SMME • Enterprise Support Programs • Enterprise Capacity Building • Entrepreneurship Promotion • Enterprise Resources • Environment Support Programs • Business Environment • Service Provider • Network support • M&E Program • Other support programs • Finance • Other

15. Seda Concept Ntsika and Namac Merger

16. Provincial Consultation

17. Provincial Consultation Process Current Situation Seda Concept Provincial Strategy Implementation

18. 1st Round of Provincial Consultation Feedback • Each province has a unique implementation approach • There is a proliferation of institutions to address small enterprise issues • Almost all the provinces have an industrial development agency • All provinces support the Manufacturing Advice Center (MAC) program • All provinces have implemented the Local Business Service Center (LBSC) model though modified to suit local needs • The need to deliver at local level is priority • National is expected to play a leading role in the implementation of small enterprise support services • Competition between programs e.g. National vs. Provincial vs. Local • Non-financial support should be coupled with financial support • National and Province are jointly funding MAC’s and some LBSC’s

19. 2nd Round of Provincial Consultation Feedback

20. National Small Enterprise Support Framework Policy Implementation Regulation National Service Delivery Network Monitoring & Evaluation National Small Business Act National Bilateral Differentiated Support Programs National Small Business Strategy Provincial National MOU’s Sustainable Service Providers Provincial Bilateral Provincial Strategy Partnerships with Stakeholders Monitoring & Evaluation Provincial Policy Targeted SMME Programs Provincial MOU’s Local Bilateral Local Strategy National Policy An Environment that assists SMME’s Local MOU’s Local Policy Local & District Monitoring & Evaluation

21. Provincial Implementation challenges

22. Implementation Progress Feedback

23. Implementation Principles • Ensure that the project addresses the rationale for establishment of Seda • Closer working relationship with provinces in effecting the implementation of Seda • A phased implementation approach to accommodate provincial and local requirements

24. Implementation Priorities • Ministerial and MECs support for the establishment of Seda • Mobilize support for Seda at provincial level and economic cluster through consultation • Working together with provinces in designing and implementing a provincial strategy integrating the Seda approach • The dti to provide more guidelines for implementation of small enterprise development support • Implement a phased merger approach i.e. National, Provincial, and local to accommodate the unique requirements of the provinces • Consider ways of streamlining provincial institutional arrangements to support the Seda approach

25. Project Work Streams • Organisational Restructuring and Design • HR, Organisational Development, (Staffing and Pay structures) • Change Management • Labour Relations • Financial Analysis, Risk Management and Systems • Historical Financial Analysis • Budgets and Expenditure • Potential Risks • Legal/Legislative Framework • Cabinet and parliamentary process & State Law advisors • Corporate Governance • SEDA Institutional Framework • National, Provincial and Local • Provincial Strategies in line with SEDA • Access, outreach and integrated service delivery • Programmes Delivery and Business Processes

26. Process for the Creation of SEDA Namac Current NAMAC Interim Phase 1: Preparation Phase 2: Migration SEDA Interim SEDA Current Phase 3: Dissolution Ntsika Current Ntsika Interim 31/03/05 Dissolved Ntsika & Namac Provincial merger 01/12/04 SEDA HO Launch 01/09/04 Start Process to Appoint CEO

27. Implementation

28. Stakeholders consulted • Department of Provincial & Local Government • MINMEC • Provincial Directorates • Board of Ntsika • Board of NAMAC • GMs of provincial manufacturing advice centres • A range of SMMEs and service providers in different provinces

29. Thank You