SA SMME CONFERENCE26 October 2006

PROMOTING THE INTEGRATED SMALL BUSINESS DEVELOPMENT APPROACH

Mandisa Manjezi

Chief Director, Enterprise Development

MManjezi@thedti.gov.za

• Giving context to the integration measures

• Benefits analysis – current efforts

• Critical gaps

• Evaluation of service delivery mechanisms

• New integrative approaches

• Expanding support programmes

• Coordinating support and improving monitoring measures

PRESENTATION OUTLINE

PUBLIC AND PRIVATE SECTOR LINKAGES • Combining resources

• Mixing approaches

• Joining up with partners

• Consolidation through amalgamation

• Incorporation

Additional value gain

Cross cutting need for collective planning, evaluation and review

INTEGRATION CONTEXT

Government Policy and Strategy Framework• Creating an enabling environment• Expanding training and education for small business• Localizing support • Co-funding business infrastructure facilities• Expanding market opportunities for small enterprises• Strengthening SMME access to finance

Small Business Sector growth• From 800 000 small enterprises to current figures above 2 million• 40 000 in the formal sector• 207% overall increase for cooperatives registration

BENEFITS FROM CURRENT EFFORTS

Role clarification – National Strategy for Small Enterprise development• National Government• Provincial Government• Local Government

Collective research agenda• Government• Private sector • Academia

Service standards improvement• Business development services• Access to finance primarily for loans up to R250K• Sector focused interventions• Skills and technology capacities • Improving visibility of our initiatives

Guidelines for integration• Provisions made by the Small Business Act, 1996, 2003, 2004

CRITICAL GAPS

• Broadening of public sector support to all levels of government and a range of government departments

• Sector differentiation in the design and implementation of focused support programmes

• Expansion of privately supplied business development services• Spread of quality services to all regions across the country both urban

and rural• Reasonable coordination of these efforts within limited financial and

implementation capacities• Access to information, advice and support networks• Access to critical services

•Skills and technology•Finance and markets•Appropriate infrastructure

• Cluster models at institution and enterprise level

EVALUATION OF SERVICE DELIVERY

INSTITUTION LEVEL• SEDA including seda SEDA-TECHNOLOGY• SAMAF• KHULA• Interdepartmental initiatives• OTHER SIGNIFICANT INITIATIVES LINKED TO DOA Programmes and

private sector programmes

ENTERPRISE LEVEL• Cooperatives • Project based partnerships• Community driven initiatives

NEW INTEGRATION APPROACHES

• Sector focused research• Sector focused project initiatives• Entrepreneurship promotion• Business networks facilitating linkages between business

• BEE Benefit programmes focused on enterprise development• Procurement support linked with enterprise development• Skills development linked to enterprise opportunities

“Synergy first” programme support criteria“Integrated Small Enterprise development strategy”

EXPANDING SUPPORT PROGRAMMES

• Private sector forums• Interdepartmental structures• National Small Business Advisory Body• Small Business annual review• Annual Small Business Summit

COORDINATING SUPPORT AND MONITORING MEASURES

THANK YOU