Overview of Seda Programs Supporting Small Enterprises
Seda offers various programs and services to support small enterprises, including mentorship, access to finance, technology support, and business development interventions. These programs aim to enhance business performance, address challenges, and facilitate international trade opportunities for small and micro manufacturers. Seda also provides support in supplier development, export readiness, and market access, contributing to the growth and sustainability of small businesses.
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SEDA PRESENTATION Select Committee on Trade and Industry, Economic Development, Small Business Development, Tourism, Employment and Labour 23 August 2022
Presentation Outline Presentation Outline 1. 1. Seda Products and Services Seda Products and Services 2. 2. Organisational Performance Organisational Performance 3. 3. Challenges and Proposed Solutions Challenges and Proposed Solutions
1. Seda Products and Services 1. Seda Products and Services Support Offered Key Interventions Supported Sectors Local exhibitions Supplier development Marketing support signage, branding & marketing plan International trade missions Export compliance support Agriculture Agro processing Automotive Chemicals Construction ICT Manufacturing Metal Fabrication Mining & Beneficiation Mixed high Tech Renewable Energy Services Tourism Wholesale & Retailers Access to Market Business plan preparation Feasibility study support Application for funding Business pitching Funding referrals Access to Finance Business start up training Business improvement training (HR & Finance) Quality training Empretec training Export training Productivity improvement training Business Management Training Business mentorship and coaching Technology support Business specific need intervention. Business Development Interventions Structured and comprehensive mentorship and coaching Access to working space Access to technology and industry insights Access to markets Incubation
1. Seda Products and Services 1. Seda Products and Services Programme Description This is a programme whereby small enterprises are assessed with regards to their export readiness and then supported with a number of relevant interventions to ensure that they become export ready. Once it is determined that they are export ready they are provided with opportunities to market their products locally and internationally through trade shows and other platforms. Export Development Programme This is a programme designed to assist small and micro manufacturers, the support includes technical and generic training, Quality Systems implementation as well as assistance to acquire necessary machinery and equipment to support their growth. Manufacturing Support Programme The supplier development programme is a framework whereby Seda supports corporates and private sector companies to implement supplier development programmes. The objective is to ensure that the supplier development initiatives implemented are value adding, aligned to best practice and to ensure that SMME s are provided with market access opportunities. Supplier Development Programme The Seda Enterprise Coaching Programme is a programme based on international best practice. It is a ten- month programme focused on growing small businesses. The programme focuses on providing a set of generic business skills, individual entrepreneur coaching as well as establishing peer to peer mentorship networks. Coaching Programme This programmes focuses on linking small enterprises and entrepreneurs with a skilled and experienced mentor to assist the business to grow, impart knowledge and experience and unlock various market opportunities. Mentorship Programme This intervention is focused on providing aspiring and existing small business owners with business management training, to enable their business to be sustainable and grow. Business management training
1. Seda Products and Services 1. Seda Products and Services Programme Description Seda support co-operatives on principles of co-operation, how to manage a co-operative. Training co- operatives on the Co-operatives Act, and on how to go about forming a co-operative. Further support includes business management training and providing cooperatives with business development interventions. Cooperatives and Community Public Private Partnerships Basic Entrepreneurial skills Development The programme is designed to transfer of basic business skills to micro-business owners during weekly two- hour one-on-one training/coaching sessions at their business premises over approximately 15 months. The programme entails management systems development that ensures that the enterprises become resilient and operate efficiently. Product Testing /Certification ensures that the products manufactured by the entrepreneurs are safe and meet the statutory and regulatory requirement. Quality & Standards Technology Transfer Programme Support to acquire innovative, production-enhancing technology, to assist small and micro enterprises to grow, and propel them to start competing in the mainstream economy. Technology Business Incubation is a 3 year programme designed to strengthen technology commercialisation and harness the entrepreneurship of the technology community in South Africa. Other support include nurturing small businesses and start-ups in a controlled environment where they are mentored by experiences business development specialist until they are able to operate on their own. Incubation Programme
2. 2. Organisational Performance Organisational Performance Year to date Achievement Indicator 2019 -20 FY 2020 -21 FY 2021 -22 FY MTSF Target Total SMMEs & Cooperatives supported 219 000 89 113 45 850 185 987 320 950 Enterprises reached through awareness 75 000 48 866 8 576 67 029 124 471 SMMEs & Cooperatives supported (Excluding TREP) 90 000 28 173 21 596 87 501 137 270 Township & Rural Enterprises Programme (TREP) 54 000 12 074 15 678 31 457 59 209 Incubators supported 100 96 104 110 310 Jobs Created 18 000 6 709 2 292 5 176 14 177 Jobs Sustained 30 000 22 230 8 283 8 584 39 097 Turnover Increase 1,5 Billion R 2,1 Billion R 1,1 Billion R 289 Million R 3,4 Billion
3. TREP Challenges and Proposed Solutions 3. TREP Challenges and Proposed Solutions Category Challenges Solutions Targeted informal businesses were not ready for formalisation and did not have the required document, thus causing delays in finalising their funding applications. Businesses formalisation Proper advice should be given to business owners in order to understand cost implications and compliance requirements that comes with being a formal business. Registering informal businesses as (Pty) Ltd, comes with additional burden because businesses are required to submit tax returns at the end of the year, which requires compilation of financial statements. The cost of funding compliance was too high, given that only Spaza shops were supported with business registration. Other businesses like Tshisanyama, Butcheries did not receive similar support, except Fruit & vegetables vendors. Seda has changed its processes to provide free business registrations to all TREP clients Cost of compliance The cost of obtaining business/operating permits from the municipalities was exorbitant and not within the affordability of the applicants. DSBD is addressing this through the red-tape reduction project Delays in acquiring permits due to municipal by-laws and zoning requirements. Municipal bylaws Its difficult for Seda to verify the validity of permits because municipal requirements are not the same across the country.
3. TREP Challenges and Proposed Solutions 3. TREP Challenges and Proposed Solutions Category Challenges Solutions The SMMESA Portal and email-based system of submitting applications proved to be a challenge & led to the following problems: Lack of integration between the e-Services portal and existing Sefa and Seda systems and processes The e-Services portal was difficult to utilize due to poor connectivity in certain areas and infrastructure constraints on the hosting platform High level tracking of specific applications became difficult The email system was put in place as an alternative, to avoid utilising e-Services portal Funding applications submissions Seda and Sefa are currently using a portal for the Youth Challenge Fund to avoid a similar problem. Seda and Sefa have assigned relevant Executives to manage the collaboration between the 2 entities. Application feedback Lack of feedback and delays which created a negative perceptions about entities and the schemes Some towns don t have Nedbank and Standard Bank branches, which posed challenges for collecting bank cards for the Spaza shop programme. There are beneficiaries that are still waiting for their cards Funding access for applicants Explore different approach to enable applicants to access the cards.
3. Other 3. Other Category Challenges Solutions Improve targeted marketing of Seda services and allocate sufficient resources to respond to the attracted entrepreneurs. There is limited marketing of Seda products and services which can improve the level of organisations awareness and the services offered to aspiring entrepreneurs. Marketing of products and services Identify value adding partners who can provide free or cheaper platforms to reach the targeted entrepreneurs.
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