opportunities for smmes in the tourism sector introducing ......2014/11/20 · o corporate...
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Opportunities for SMMEs
in the Tourism Sector
Introducing the
Tourism Enterprise
Partnership
Dr. Salifou Siddo
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SUCCESSFULLY
DEVELOPING
ENTREPRENEURS
FOR OVER A DECADE
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The Faces of Job Creation
Ntwanano Tours Sertorio Mshthola
Employing 5
Cresco Tours Lucille Cremen
Employing 5
Roots Restaurant Reggie Makhetha
Employing 6
Supporting tourism entrepreneurs to develop product, improve quality, access markets, increase turnover and create new jobs
Aahaah Shuttles Zandile Dhlamini
Employing 2
Usisi Designs Stella Pretorius Employing 65
Mutariko Arts Godfrey Dupwa Employing 10
Zulu-lulu Stuart Tompkins
Employing 8
Reatswelela Nkele Motsoaledi
Employing 10
Robert and Sons Rob Chimungwa
Employing 5
Vuwa Safaris Stan Mufamadi
Employing 5
Nutting House Ethel Shongwe Employing 20
The Orchards Salome Tshungu
Employing 13
Ingwenya Wires Enock Ngwenya
Employing 2
Villa Anne Thandie Sibande
Employing 6
Linga Longa Nelly Mashinini
Employing 6
Boi Travelling Mich Boikanyou
Employing 5
African Link Bunny Bhoola Employing 16
Matopos Lodge Amos Mdluli Employing 10
Kay 2ze Gee Kagiso Legobe Employing 8
Kuhle Tours Sindi Mshengu Employing 16
Matsamo Park Dudu Ngomane Employing 35
Bo Kaap Kombuis Yusuf Larney Employing 10
Linsy Paradise Linsy Maseme Employing 2
Mpu Performing Art Sifiso Hlatshwayo
Employing 5
Ilios Travel Mohamed Baba
Employing 73
NK Charters Esa Yacoob
Employing 23
Mankwe Safaris Bernard Marobe
Employing 18
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The Faces of Job Creation
Accelerating growth and transforming the economy to create decent work and sustainable livelihoods
Rita Moyo Age: 50
Office Cleaner 2 Years
Rampai Age: 39 Guide
3 Years
Gladys Age: 58
Office Admin 1 Year
Eva Tourism Trainee
Age: 19 Oct & Nov 2013
Dumi Driver
Age: 41 2,5 Years
Ngale Rehlapane Age: 29
Kitchen Manager 4 Years
Hlulani Siweya Age: 25
Manager 1 Year
Tinny Mbara Age: 28
Receptionist 1 Year
Mpho Maphelela Age: 30
Receptionist 1 Year
Portia Thole Age: 30
Ceramasist 2 Years
Mashudu Age: 29 Director 5 Years
Fortune Mokgehl Age: 29
Manager 5 Years
Nelsy Mnisi Age: 28
Ops Manager 1 Year
Johannah Mvalo Age: 49 Cleaner Jul 2009
Tauriq Ederies Age: 29
Kiosk Operator Aug 2011
Kendall Wilson Age: 25
Ops Manager Jan 2009
Janine Wilson Age: 36
Supervisor 1 Year
Mariette Apollis Age 25
Waitress 2 Years
Nurahn Galant Age: 25
Reservations 3 Years
Bukiwe Mangqan Age: 29
Reservations 3 Years
Abdurach Galant Age: 21
Operations 2 Years
Alistair St. Clair Age: 30
Ops Manager 1,5 Year
Eunice Lugalo, Manager Age: 53 3 Years
Julia Solms Assist. Manager
Age: 34 1 Year
Sylvia Ruiters, Manager Age: 47 6 Years
Angie Muchekeni Housekeeper
Age: 26 2 Years
Sewela Kgatla Age: 24
Consultant 1 Year
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Overview
o Non Profit Company
o Flagship public private partnership
o One of the longest standing and most successful
enterprise development partners for small tourism
businesses in South Africa
o Our mandate is to facilitate the growth, development
and sustainability of small tourism businesses
o We offer a number of interventions that provide
hands-on, step-by-step support and guidance to small
tourism businesses
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Track Record Since Inception in 2000
o More than R550m invested in tourism SMME development
o Contributed to the generation of over R6,4 billion
o Supported the creation of over 75,000 jobs
o Trained 24,000 SMME operators and employees
o Mentored 422 small tourism businesses
o Client base of over 3,500 SMMEs spread across all sectors of the tourism
industry
o Corporate fundraising programme - EDP and now ESDS that is becoming
increasing successful
o Well establish practice of cost sharing partnerships with provinces
o Third party project management that contributes to TEP
mandate – Cathsseta Learnership Programme
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Board of Directors
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The Faces of Job Creation
National Team
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Service Offering
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Business registration and DNAs
179 DNAs completed
920 registered clients
Business Registration and Support
Development Needs Assessment (DNA)
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Skills Development
Mentorship Programmes
Training Workshops
Learnerships
• Assessment and matching
• 6 months mentorship
• Growth Plan
• 268 learnerships implemented
for CATHSSETA
• 218 completed the programme
(85%)
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Marketing and Access to Markets
• Rennies Red Stamp
• Advertising and PR
• ETEYA
• Power of One
• Events and Exhibitions
• Indaba
• Getaway
• Vakantiebeurs – Netherlands
• SIPPO European Trade Mission
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Access to Finance - BDF
Business Development Fund (BDF)
469 enterprises received BDF grants
126 of these enterprises were rural
339 of these enterprises were HDEs
A total of 78% for market access and marketing related support
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Access to Finance – ikwezi Tourism Facility
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Rationale for ikwezi Tourism Facility
o Access to finance has been the missing link in TEP’s work
o TEP has been looking for ways to address this challenge
o sefa (Small Enterprise Finance Agency) on the other hand has been looking
for ways of mitigating the inherent risk in providing financing to small
businesses
o The idea of a mutually beneficial partnership between sefa and TEP was
thus born and conceptualised into the ikwezi Tourism Facility which was
launched at the Tourism Indaba in Durban in May this year
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ikwezi Tourism Facility - cont.
o The ikwezi Tourism Facility – ikwezi or ITF for short - is a R50m revolving
financing facility available exclusively to TEP registered clients
o ikwezi provides financing ranging from R10 000 to R5m
o Repayment terms range from 3 months to 5 years
o Interest rates charged range from prime plus 1.60% to 3.60%, substantially
lower than commercial banks
o TEP clients may approach ikwezi for Bridging Finance, Capital equipment
finance, and business expansion finance
o TEP will perform the technical due diligence of applications
o sefa will perform the credit vetting component of applications
www.ikwezifacility.co.za
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Access to Information
• An information portal for the tourism sector
• Based on Wikipedia concept – collaborative content/information generation
www.wikitourism.co.za
• 45 000 unique visitors
• Over 110 000 pages read
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Impact - Turnover
R850 million increase in turnover
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Impact - Jobs
4 040 jobs created by TEP supported enterprises
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Comparative Assessment
The Small Business Project (SBP) 3-Year Longitudinal Study
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Comparative Assessment
Barriers to employment according to survey participants
• Labour legislation
• Lack of skills
• Seasonal nature of work
• Staff turnover
A substantial minority put forward concerns about taking on new employees due to
inflexible employment legislation.
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Comparative Assessment
Impact of TEP services – Most impactful services according to survey participants
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Comparative Assessment
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Fundraising and Partnerships
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Vision for SMME Development Going Forward
TEP Business Model
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Over the past 14
years TEP has
developed a
database of
quality
empowered
tourism small
businesses
Business analysis
have been
conducted to
identify needs
Ready for funders
to invests and
receive up to 15
B-BBEE Points
Enterprise
Development
Supplier
Development Supplier Diversity = 1 Bonus Point
Job Creation = 1 Bonus Point
ESD
40 Points
• TEP can audit
exciting suppliers,
calculate current
spend and
potential points
earned
• Introduce new
Black Owned
suppliers to
replace non-
complying
suppliers
• Develop existing
Black Owned
suppliers for
increased
procurement
ESDS MODEL – Enhanced Opportunities for SMMEs
With TEP’s
Enterprise &
Supplier
Development
Solutions you
can earn your full
40 Points for ESD
Preferential Procurement
25 points
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In Summary…
- Ikwezi for competitive business finance
(in partnership with sefa)
- Wikitourism for information relating to
the tourism industry
- ESDS for procurement opportunities for
direct and indirect tourism SMMEs
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TEP Contacts:
[email protected] – Head Office
[email protected] – EC Office or
(043) 748 2345
www.tep.co.za - Website
THANK YOU