Seda Annual Report 2008/09 Presentation to Select Committee on Trade and International Relations

1. Seda Annual Report 2008/09 • Presentation to Select Committee on Trade and International Relations • 21 October 2009

2. Delegation details 2

3. Acronyms 3 • CEO – Chief Executive Officer • EIC – Enterprise Information Centre • ENE – Estimates of National Expenditure • GDP – Gross Domestic Product • MTEF- Mid Term Expenditure Framework • Seda – Small Enterprise Development Agency • SMME – Small Micro and Medium Enterprises • STP – Seda Technology Programme

4. 4 PART A: Seda Overview

5. Contents 5 • Background • Seda’s mandate • Mandate implications • Target market • Seda’s network • Human Resources • Seda’s key products and services

6. Background 6 • Seda established in December 2004 through the National Small Business Amendment Act, Act 29 of 2004 • Formed through the merger of Ntsika Enterprise Promotion Agency, the National Manufacturing Advisory Centres (NAMAC) as well as the Community Public Private Partnership Programme (CPPP). • Godisa Incubation Programme, Technology Transfer Programme, and the South African Quality Institute (SAQI) later incorporated as a ringfenced programme - Seda Technology Programme (STP)

7. Mandate 7 • Implement national government small business strategy • Design and implement a standard and common national delivery network that must uniformly apply throughout the Republic in respect of small enterprise development • Integrate all government funded small enterprise support agencies across all tiers of government

8. Mandate Implications 8 • National accountability • Shift from wholesale to retail model • Increase the footprint nationally including rural communities • Seda as national integrator across the 3 tiers of government • Create a national credible brand • Provide uniform quality products, services and standards • Find win-win partnerships

9. Target Market 9 20 % 80 % Potential entrepreneurs

10. Seda Network 10 • National Office • 8 Provincial Offices • 42 branches • 58 EICs • 4 mobile units • 21 co-location points at local municipalities • 27 incubation centres under the STP

11. Seda Network 11

12. Human Resources (as at 31 March 2009) 12

13. Seda’s Key Products and Services 13 • Seda Business Talk and Start (for start up clients) • Entrepreneurship awareness events • Business start-up training • Franchise awareness • Business planning • Business registrations • Cooperative development • Seda Growth and Build (for operational businesses) • Access to local markets • Access to export opportunities • Access to technology • Access to finance • Sector programmes • Business mentoring • Hotline to assist with late payment of SMMEs

14. Seda’s Key Products and Services 14 • Seda Technology Programme • Business Incubation • Technology transfer • Product quality and certification • Technology for women in business

15. 15 • PART B: Seda 2008/09 Annual Report

16. Contents 16 • Contextual considerations • Performance Highlights • Sustainability and Impact Survey • Seda and STP Vote 32 funding • Future plans

17. Contextual Considerations 17 • Moratorium for half of the year • Organizational restructuring and impact on performance • Economic crisis impact on small business environment • 2008/09 period is first year of a longer term organizational reengineering process

18. Performance Highlights 18 • Leadership • Appointment of CEO • Appointment of additional board members • Appointment of Executive Management • Financial Management • Implementation of Financial Management Improvement Plan • Unqualified audit

19. Performance Highlights 19 • Improved service provision • Repackaging of Seda programmes, products and services • Partnerships with UNIZO (Belgium), SEBRAE (Brazil), NSIC (India), Technonet Africa and TradePoint programme • Focus on performance • 534 staff members at end March 2009 (75% in the delivery network) • Implementation of performance management system

20. Performance Highlights 20 • Service provision to SMMEs • 199,830 potential and existing small businesses accessed Seda’s network (7.3% increase from 2007/08) • 46,695 client needs assessed; 14,373 clients assisted • Main interventions: business planning, business registrations, cooperative support, access to markets • Progress on national programmes adversely affected by financial constraints • Community Private Public Partnership (CPPP) programme revived

21. Provincial Analysis – key indicators 21

22. Provincial Analysis – key indicators 22

23. Provincial Analysis – key indicators 23

24. Provincial Breakdown – Key Services 24

25. Highlights 25 • Seda technology programme • Two new incubators established • 835 clients supported • 224 new SMMEs created • 1,318 direct jobs; 5,461 indirect jobs created • Total turnover of assisted SMMEs – R129M

26. Sustainability and Impact Survey 26 Survey Methodology: • Independent service provider randomly selected 902 clients, approximately 100 per province, from population of 20,000 clients. Survey Results: • Seda’s focus on new start-ups is clear – 40% of Seda’s clients have never been operational; • Seda’s service offering focuses on business registrations; • For 80% of operational clients, Seda has had a positive impact on their business, especially in the area of staff turn-over, sales and customers; • Seda had the most impact when a variety of services were provided especially when offering training & mentoring and tender advice; and • 59% of Seda’s clients are sustainable; 41% are vulnerable (need more customers & cash flow).

27. Vote 32: Seda & Stp funding 27

28. Future Plans 28 • Improved use of client feedback to improve service offerings • Measurement of client performance in terms of graduation, growth and sustainability • Establishment of Seda Learning Academy • Increased outreach and partnerships • Integrated monitoring and evaluation system development • Support systems improvement and development • Pro-active communication strategy • Revenue = R559.4M (R384.8M for 2007/08) • External earnings = R61.7M (R28.5M for 2007/08)

29. 29 Thank you

30. Provincial Analysis – Absolute numbers