Seda 2015/16 – 2017/18 Annual Performance Plan Presentation

1. Seda 2015/16 – 2017/18 Annual Performance Plan Presentation Presentation to the Portfolio Committee on Small Business Development 15 April 2015

2. Presentation Outline • Planning, Budgeting and Reporting Cycle • The 12 Outcomes of the South African Government • Strategic Objectives of the DSBD • Envisaged Impact • Strategic Alignment – the DSBD and Seda • Seda’s Target Market • Seda’s Service Offerings • Seda’s Delivery Network as at end December 2014 • Seda Strategic Objectives • Strategic Objective 1: Strategic Indicators • Strategic Objective 2: Strategic Indicators • Strategic Objective 3: Strategic Indicators • Strategic Objective 1: Strategic Indicators (Stp) • Strategic Risks • Sedaand Stp Actual Funding and ENE Allocation (R mil) • Focus Areas for 2015/16 • Developmental Areas

3. Acronyms BESD Basic Entrepreneurial Skills Development CPPP Community Public Private Partnership DeafSA Deaf South Africa dsbd Department of Small Business Development ENE Estimates of National Expenditure ICT Information and Communication Technology SANCB South African National Council for the Blind Seda Small Enterprise Development Agency SMME Small Medium and Micro Enterprise Stp Seda Technology Programme

4. Planning, Budgeting and Reporting Cycle

5. The 12 Outcomes of the South African Government • Improved quality of basic education. • A long and healthy life for all South Africans. • All people in South Africa are and feel safe. • Decent employment through inclusive economic growth. • A skilled and capable workforce to support an inclusive growth path. • An efficient, competitive and responsive economic infrastructure network. • Vibrant, equitable and sustainable rural communities with food security for all. • Sustainable human settlements and improved quality of household life. • A responsive, accountable, effective and efficient local government system. • Environmental assets and natural resources that are well protected and continually enhanced. • Create a better South Africa and contribute to a better and safer Africa and World. • An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship.

6. Strategic Objectives of the DSBD • Strategic Outcomes-Oriented Goals • Facilitate the development and growth of small businesses and co-operatives to contribute to inclusive and shared economic growth and job creation through public and private sector procurement; • Facilitate radical economic transformation through increased participation of small businesses and co-operatives in the mainstream economy; • Advocate for a conducive regulatory environment for small businesses and co-operatives to enable access to finance, investment, trade and market access in an equitable and sustainable manner; • Facilitate partnerships with all spheres of government as well as the private sector to ensure mutual cooperation that will benefit small businesses and co-operatives.

7. the DSBD – Envisaged Impact • Incentive programmes aimed at creating new businesses, which will increase the potential for new jobs • Public and private sector procurement geared towards improving market access (including growth and development) for black small enterprises and co-operatives (e.g. fixing of potholes) • Increase culture of entrepreneurship aimed at increasing the number of new innovate and sustainable business ventures that will contribute to job creation • Creating a simplified policy and regulatory environment for SMMEs and Co-operatives development to eradicate poverty, inequality and unemployment

8. the DSBD – Envisaged Impact • Through the Export Development Programme, companies will improve their ability to export and reduce the costs and risks involved in penetrating foreign markets • The provision of technical and business development services to the targeted groups (youth, women and people with disabilities) will result in upgraded skills, improved quality of products, access to local and international markets, enhances and sustainable enterprises, increased employment • Enhanced support to informal businesses, rural and township enterprises will increase the competitiveness, resulting in sustainable enterprises and retention of existing jobs.

9. Strategic Alignment – the DSBD and Seda

10. Strategic Alignment – the DSBD and Seda

11. Seda Target Market

12. Seda’s Service Offerings

13. Seda Delivery Network at end Dec 2014

14. Seda’s Strategic Objectives Strategic Objective 1: Enhance competitiveness and capabilities of small enterprises through coordinated services, programmes and projects. Strategic Objective 2: Ensure equitable access to business support services. Strategic Objective 3: Strengthen the organization to deliver on its mission.

15. Strategic Objective 1: Strategic Indicators

16. Strategic Objective 2: Strategic Indicators

17. Strategic Objective 3: Strategic Indicators

18. Strategic Objective 1: Strategic Indicators (Stp)

19. Strategic Risks

20. Seda and Stp Actual Funding and ENE Allocation (R mil)

21. Focus Areas for 2015/16 To focus on outcomes (job creation, increase in turnover and sustainability), the following are key focus areas/themes for the 2015/16 financial year: Roll out of Small Business incubation. Focused attention on cooperative support, including collectively owned large scale projects. Implementation of the Gazelles programme to identify and profile high performing entrepreneurs. Facilitation of timeous payment of SMMEs. Public/Private Partnerships. Directing specific interventions at medium sized enterprises and cooperatives (i.e. employing between 21 and 200), such as access to markets, mentorship and coaching, supplier development, technology transfer. Repositioning of support functions from a reactive role to a proactive, strategic support role, especially in areas such as ICT, advocacy and lobbying, and human capital.

22. Developmental Areas Ensuring that Seda has sufficient funding for key programmes. Attracting and retaining, as well as developing key, skilled staff. ICT controls and enterprise architecture. In-depth research and understanding of the upper end of the SMME sector. Developing focussed programmes for the small and medium size segment. More private sector involvement especially on procurement opportunities. Prioritisation of high impact programmes (supplier development, mentorship and coaching, access to local and foreign markets, incubation and technology transfer). Service provider competency levels. Elevating the SMME agenda and discourse.

23. Success Stories • Business type– Jewellery manufacturing. • Business name – Lichaba Creations. • Seda’s interventions – Marketing material, technology transfer incentive and quality management system implementation. • Outcome – Increase in annual turnover from R1.1mil to R5.5mil. 53 additional jobs created. Penetrated international markets.

24. Success Stories • Business type– Drainage pipes manufacturing and assembly. • Business name –Sequal • Seda’sinterventions – Implementation of quality management system, facilitation of stage 1 SABS audit. • Outcome – Sequal now listed as a Massmart supplier, supplies Builders Warehouse, Builders Trade and the Spar Group. Expanding to Australia.

25. Success Stories • Business Type – Manufacturing of muesli and related products • Business name – Number1 Muesli • Seda’s interventions – Marketing material, facilitated access to finance (expansion), assistance in product development, productivity and quality improvement. • Outcome – Company exporting to the USA. Expanded to new facility that can produce 600 tons of muesli a month and potentially employ 150 additional people.