seda annual report 2008/09 presentation to select committee on trade and international relations
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Seda Annual Report 2008/09
Presentation to Select Committee on Trade and International Relations
21 October 2009
Delegation details
Name Title Contact Details
Mr. L Mngomezulu
Board Chairperson 011 484 9990
Ms. H Lupuwana Chief Executive Officer 012 441 1011
Ms. H Hogendoorn
Chief Financial Officer 012 441 1004
Mr. S Kunene HOD: Provincial Affairs 012 441 1299
Mr. J Ravjee Acting Executive Manager: STP 012 441 1202
Mr. L Njenge Senior Manager: Strategy and Organizational Performance Management
012 441 1432
2
Acronyms
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
3
PART A: Seda Overview
4
Contents
Background Seda’s mandate Mandate implications Target market Seda’s network Human Resources Seda’s key products and services
5
Background
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)
6
Mandate
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
7
Mandate Implications
• 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
8
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
Target Market 9
Seda Network
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
10
Seda Network
Seda Branches
Contracted EICs
STP Incubators
Co-locations at local municipalities
Mobile Units
Eastern Cape 6 3 5 3 0
Free State 6 9 0 3 2
Gauteng 1 10 9 0 0
KwaZulu Natal 6 5 3 8 0
Limpopo 5 6 2 0 0
Mpumalanga 5 12 5 7 0
Northern Cape
5 7 0 0 2
North West 5 1 1 0 0
Western Cape 3 5 2 0 0
TOTAL 42 58 27 21 4
11
Human Resources (as at 31 March 2009)
Location Number Percentage of Total Staff
National Office 128 22.9%
Provincial and branches
406 72.6%
STP 25 4.5%
TOTAL 559 100.0%
12
Seda’s Key Products and Services
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
13
Seda’s Key Products and Services
Seda Technology Programme Business Incubation Technology transfer Product quality and certification Technology for women in business
14
PART B: Seda 2008/09 Annual Report
15
Contents
Contextual considerations Performance Highlights Sustainability and Impact Survey Seda and STP Vote 32 funding Future plans
16
Contextual Considerations
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
17
Performance Highlights
Leadership
Appointment of CEO Appointment of additional board members Appointment of Executive Management
Financial Management
Implementation of Financial Management Improvement Plan
Unqualified audit
18
Performance Highlights
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
19
Performance Highlights
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
20
Provincial Analysis – key indicators 21
Provincial Analysis – key indicators 22
Provincial Analysis – key indicators 23
Provincial Breakdown – Key Services
EC FS GT KZN LMP MPU NC NW WC TOTAL Business Registration 14.2% 6.0% 0.0% 32.3% 13.3% 16.9% 7.8% 4.6% 5.0% 5643
Busines Plans 10.0% 7.9% 10.9% 24.7% 9.7% 11.1% 8.5% 9.8% 7.3% 1638Access to markets 12.6% 7.4% 10.5% 16.2% 14.0% 16.4% 5.5% 6.0% 11.4% 2502Cooperative support 10.3% 1.0% 0.0% 11.6% 37.0% 21.6% 12.4% 6.2% 0.0% 730
24
Highlights
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
25
Sustainability and Impact SurveySurvey 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).
26
Vote 32: Seda & Stp funding
2008/9 2009/10 2010/11 2011/12
R'000 R'000 R'000 R'000
Seda 408,031 331,177 376,718 384,668
STP 76,739 68,320 76,260 110,535
TOTAL 484,770 399,497 452,978 495,203
27
Future Plans
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)
28
Thank you
29
Provincial Analysis – Absolute numbers
EC FS GTG KZN LP MP NC NW WC
Client walk-ins
27,617 24,559 9,492 38,287 19,324 19,303 13,948 28,576 18,744
Clients registered
5,314 5,888 2,045 11,095 5,727 5,160 2,339 4,744 4,833
Clients working with
2,065 1,498 566 2,780 2,531 1,821 641 474 1,997
Business registrations
801 389 - 1,823 751 954 440 203 282
Business Plans
169 129 179 406 159 182 139 161 117
Access to markets
315 185 546 405 350 410 138 150 285
Coop support
75 7 - 85 270 158 90 45 -
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