seda 2015/16 – 2017/18 annual performance plan presentation presentation to the portfolio...
TRANSCRIPT
Seda 2015/16 – 2017/18 Annual Performance Plan
Presentation
Presentation to the Portfolio Committee on Small Business
Development
15 April 2015
1
• 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• Seda and Stp Actual Funding and ENE Allocation (R mil)• Focus Areas for 2015/16• Developmental Areas
Presentation Outline
2
Acronyms
BESD Basic Entrepreneurial Skills DevelopmentCPPP 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 BlindSeda Small Enterprise Development Agency SMME Small Medium and Micro EnterpriseStp Seda Technology Programme
3
Planning, Budgeting and Reporting Cycle
4
• 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.
The 12 Outcomes of the South African Government
5
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.
Strategic Objectives of the DSBD
6
• 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
the DSBD – Envisaged Impact
7
• 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.
the DSBD – Envisaged Impact
8
Strategic Alignment – the DSBD and Seda
DSBD Strategic
Objective
Seda Strategic
Objective
Seda Programme
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.
Enhance competitiveness
and capabilities of small
enterprises through
coordinated services,
programmes and projects.
Business Advisory Services
Incubation
Supplier Development
Quality and Standards Training and
Implementation
Export Readiness and Facilitation
Technology Transfer
Facilitate radical
economic transformation
through increased
participation of small
businesses and co-
operatives in the
mainstream economy.
Ensure equitable access
to business support
services.
Cooperative Support Programme
Basic Entrepreneurial Skills
Development (BESD) Programme
Partnerships on cost sharing
Co-location
One-stop shops
Advocacy
Gazelles Programme
9
Strategic Alignment – the DSBD and Seda
DSBD Strategic
Objective
Seda Strategic
Objective
Seda Programme
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.
Enhance competitiveness
and capabilities of small
enterprises through
coordinated services,
programmes and projects.
Incubation
Supplier Development
10
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 20 employees
•Limited technical and business skills
•Less than 5 employees
•Very limited technical and business skills
Opportunity-driven/
Entrepreneurial
Necessity-driven/
Survival
Medium
enterprises
Small enterprises
Very Small enterprises
Micro enterprises
Characteristics
Seda Target Market
11
Seda’s Service Offerings
For survivalist and micro enterprises
Entrepreneurship awareness Franchise awareness
Business start-up training Business planning
Business registrations Business start-up advice
For small and medium enterprises
Access to local markets Access to export opportunities
Incubation Access to technology
Quality and standards testing, advice and
implementation
Hotline to assist with late payment of SMMEs
Business mentoring Facilitation of access to finance
For collectively owned enterprises
Social facilitation and mobilisation Cooperatives development and registration
Access to local markets All other relevant products and services still
apply
For people with disabilities
Programmes with DeafSA and SANCB All other relevant products and services still
apply 12
Province
Seda Branches
Seda Satellite Offices
Seda Supported Incubators
Co-location Points
Mobile Units
Info Kiosks
EC 6 0 8 5 3 6
FS 5 2 1 0 5 3
GT 3 0 16 7 0 6
KZN 6 0 11 4 2 1
LP 5 0 2 1 3 1
MPU 5 0 4 8 0 14
NC 5 0 1 0 2 3
NW 5 0 1 5 4 6
WC 3 12 3 0 0 13
TOTAL 43 14 47 29 19 53
Seda Delivery Network at end Dec 2014
13
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.
Seda’s Strategic Objectives
14
Outcome Output Performance
Indicator/measure
Performance Targets
2015/16 2016/17 2017/18
Client satisfaction ensured
Client satisfaction surveys conducted
% of surveyed clients satisfied with the quality of Seda services
94% 95% 96%
Client business performance improved
Client improvements assessment conducted*
% of surveyed SMME clients whose turnover has increased
54% 56% 58%
% of surveyed SMME clients whose number of employees has increased
35% 37% 39%
Supplier development programme implemented
Number of supplier development programme partnerships
5 10 15
Number of clients supported 75 150 225
Trade facilitation programme implemented.(Access to markets)
Number of clients supported 75 100 125
Mentorship and coaching programme implemented
Number of clients supported.
75 100 125
Training on national and international standards conducted
Number of clients trained 536 563 591
Strategic Objective 1: Strategic Indicators
15
Outcome Output Performance Indicator/measure Performance Targets
2015/16 2016/1
7
2017/18
Client reach improved Clients assisted Number of clients working with 11,400 10,830 10,290
Proportion of clients in the upper end of the SMME sector increased
Support interventions provided to clients in the upper end of the SMME sector
Number of clients in the upper end of the SMME sector assisted with interventions
372 343 361
Number of new partnerships on high impact programmes (HIPs) to service the upper end of the SMME sector
10 5 5
Support to clients in key growth sectors prioritised
Support interventions provided to clients in the priority growth sectors
% of clients in the priority growth sectors assisted with interventions.
40% 50% 60%
Rural enterprise development enhanced
Large scale projects and cooperatives assisted with support interventions
Number of secondary marketing cooperatives supported.
36 45 54
Number of primary cooperatives established.
90 90 90
Township and peri-urban enterprise development enhanced
BESD programme implemented
Number of clients supported 1,000 1,000 0
Cost sharing with delivery partners maintained
Partnership agreements implemented
Value of service provision costs covered by partners
R 10,3 mil R 10,6
mil
R10,9 mil
Strategic Objective 2: Strategic Indicators
16
Outcome Output Performance
Indicator/measure
Performance Targets
2015/16 2016/1
7
2017/18
Cost efficiency improved
Financial expenditure monitored
% of direct service costs versus total costs
73% 74% 75%
% of programme related funding allocated to clients in the upper end of the SMME sector
15% 25% 35%
Organisational staffing improved
Vacancies filled % vacancy rate 12% 10% 10%
Seda image improved
Advocacy and lobby initiatives implemented
Annual Stakeholder Forum (ASF) held
ASF held
by end
Septemb
er
ASF
held by
end
Septem
ber
ASF held
by end
Septemb
er
Number of updates on the state of the SMME sector produced
2 2 2
Strategic Objective 3: Strategic Indicators
17
Outcome Output Performance
Indicator/measure
Performance Targets
2015/16 2016/1
7
2017/18
Incubation support enhanced
Existing and new incubators supported
Number incubators supported. 55 56 57
Client satisfaction ensured
Client satisfaction surveys conducted
% of clients satisfied with the quality of Seda services
72% 74% 76%
Client business performance improved
Client improvement assessments conducted
Number of jobs created 1,650 1,815 1,996
Client support services provided
Number of clients supported 1,881 2,069 2,276
Small business establishment facilitated.
Number of new SMMEs created 331 364 400
Technology transfer programme implemented
Number of clients assisted 66 69 72
Conformity assessment and product testing programme implemented.
Number of clients supported 144 151 158
Systems implementation support provided
Number of clients supported 34 36 38
Strategic Objective 1: Strategic Indicators (Stp)
18
Strategic Risks
Risk name Original Risk Rating Residual Risk Rating
Inappropriate and irrelevant small enterprise support and services. High Moderate
Failure to service the upper end of the SMME market High Moderate
Inadequate stakeholder engagement High Moderate
Inadequate skills High Moderate
Inadequate ICT resources and strategy to support the strategy of
the organisationModerate
Moderate
Inadequate funding Moderate Low
Misalignment of Seda’s strategy with the DSBD Moderate Low
Ineffective execution of strategic initiatives Moderate Low
Inefficient utilization of resources Moderate Low
19
Seda and Stp Actual Funding and ENE Allocation (R mil)
20
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.
Focus Areas for 2015/16
21
• 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.
Developmental Areas
22
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.
23
Success Stories
• Business type– Drainage pipes manufacturing and assembly.
• Business name –Sequal• Seda’s interventions –
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.
24
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.
25