1 Presentation to the Ad Hoc Committee on Trade and IndustryMay 2004 By Lefa Mallane CEO
2 Background Established in terms of the National Small Business Act no 102 of 1996 as amended Started operations in 1996 Public entity on 20 June 1997 Executive Authority: the dti Reporting dti division: Enterprise and Industry Development Division (EIDD) Juristic Person Subject to the Public Finance Management Act, no 1 of 1999
3 Mandate (Section 10) Training, advice and counseling and any other non-financial services Financial support to Service Providers Consult with other organs of government or Advisory Board Facilitate business advice and counseling to small Business Facilitate access to small business to raw material and other products Facilitate national and international market access Generally strengthen capacity of service providers and small business
4 Mandate (Section 10) Other FunctionsInvestigate at request of DG effect of proposed or existing legislation Provision of info or analysis on the implementation of the National Small Business Support strategy To improve the general understanding of the public regarding small business’ contribution to the SA economy
5 Structure and Corporate Governance (Section 11 to 15)Board of Directors appointed by the Minister CEO appointed by Minister on recommendation of the the Board of Directors Experts in a representative capacity All except the CEO must serve part-time as non-executive Responsibilities of Directors is similar as contained in the Companies Act Must have a separate Constitution adopted by the Board of Directors CEO is the Accounting Officer
6 Structure and Corporate Governance (Section 11 to 15) ContinuedAudited by the Auditor General Funding comprise of: Parliamentary appropriation Grants, donations and bequests made Money lawfully obtained Loans subject to approval by the Ministers of Trade and Industry and Finance
7 Structure Projects Committee HR Committee Finance CommitteeAudit Committee Human Resources Doreen Mulaudzi Communicatin & Relationships Jacky Kola
8 THE NATIONAL SMALL BUSINESS SUPPORT STRATEGY1 THE NATIONAL SMALL BUSINESS SUPPORT STRATEGY Policy & Needs Identification Level Centre for Small Business Promotion co-ordinates efforts of government departments, institutions & organisations National Small Business Council Ntsika Non-Finance Khula Finance Central, Provincial & Local Government Implementation Level Small business associations and chambers Implementing Agencies Small, micro & medium enterprises Tender Boards PARASTATALS such as CSIR, SABS, IDS, etc. Private Sector Local & International Funders
9 Ntsika Product Line Name of Programme or Product Objective DescriptionBUSINESS DEVELOPMENT SUPPORT To render business development support (information, counseling, mentoring and training) to Small medium and micro enterprises. Local Business Service Centres (LBSC’s) are contacted by SMME’s using a analytical process, identifying the need and addresses the problem by motivating support needed to Ntsika. It should also be noted that Ntsika provides capacity building to the LBSC’s to render high quality business development services. PROGRAMME DESIGN, RESEARCH AND INFORMATION. To provide business development information to interested parties such as academic institutions,SMME practitioners (LBSC’s, MAC’s etc.) and SMME’s. It further focuses on the design of programmes for business development support and project specific research Programme design in line with the demands of the market, access to Ntsika’s web site or library and project specific research. CHAMBER SUPPORT. To enhance the capacity of the chambers to be effective in fulfilling its role in the South African Business Community. To build the capacity of the historically disadvantaged chambers in order to allow them to take up the opportunities following the unification of the chamber movement. The aim is to help these affiliated SMME’s to join the mainstream economy by leveling the playing field. TRADE AND INVESTMENT DEVELOPMENT PROGRAMME To enhance the global competitiveness of SMME’s To prepare SMME’s in pursuing markets, both locally or internationally. Ntsika’s flagship programme
10 PROGRAMME PERFORMANCE OVERVIEW - PROVISIONAL & UNAUDITEDGOALS CORPORATE TARGETS ACTUAL 2003 ACTUAL 2004 TIDP LBSC PDRI CHAMBER 1 Service Providers Supported 93 209 322 272 42 - 8 2 Service provider Employees Trained/workshopped 350 282 191 39 152 3 Business Linkages 373 500 773 758 15 4 Training Courses Developed 5 Research Studies Conducted 12 10 6 SMMEs Counselled/Advised 27 167 10 213 6950 1135 5725 90 7 Entrepreneurs Trained/workshopped 20 300 5 555 7261 1265 1896 4100 Training Courses provided 50 213 43 37 9 Jobs Created/sustained 13 333 15 343 27018 12000 10836 4182 Programme Expenditure Rands (millions) 36.2 37.2 22.2 7.3 1.4 6.3
11 Activities and achievementsMOU’s with SETA’s Wholesale and Retail SETA and Transport SETA Development of Course material for Business Start–up Training Food and Beverage SETA Business Performance Improvement Programme Assessed 60 Service Providers and contracted 42 MOU with SEBRAE the Brazilian Equivalent of Ntsika Benchmarking Sharing of expertise Exchange of Information Hosted the Annual Black Economic Empowerment Conference in Nelspruit
12 Activities and achievements cont.Host the Annual Black Economic Empowerment Conference in Mafekeng Partnership with APDF, GTZ and Umzombomvo Youth Fund contracted Gestalt Corporate Engineers to investigate Standard Bank, Petro SA, Ntsika and Pretoria Portland Cement (PPC) to develop a guide to assist corporates in transforming their policies to be BEE friendly. Held the Vukani Fashion Awards Supported 37 SMME’s to participate in the Nepad Indaba EXPO in Bryanston Sales of R7 million Sales during the Business Growth and Opportunities Exhibition came to R47 Million
13 Activities and achievements cont.Supported 90 SMME farmers in the National African Farmers Union (NAFU)/ Ntiska Agri-linkages project Strengthen the Federated Chamber of Commerce and Industry (NAFCOC) Supported the African Council of Hawkers and Informal Business to link members with service providers Supported the Manufacturing Advisory Certres (MAC’s) Facilitated a trade mission to India and Mauritius for 20 SMME’s 12 MOU’s were concluded by the SMME’s Hosted an inward trade mission from India to Gauteng, Limpopo and Kwazulu Natal
14 Activities and achievements cont.Hosted a delegation from Cape Verde with ITED Sponsored 13 exhibitors from all provinces to participate in the BOGAE Conference Trained 450 Enterprises in export Held 4 Export awareness seminars for 84 SMME’s Supported 130 SMME’s in marketing and product development Assisted SMME’s to attend the SEMA Hosted the Ambassador of the EU on a field visit to the automotive sector in Port Elizabeth Facilitated a consortium comprising of the CSIR, CapeMac, Clotex and SAITEC to manage the SMME Textile Development Programme
15 Activities and achievements cont.Supported 11 SMME’s to participate in Decorex, Saitex, Small Business Overdrive (SBO) and Mozbex trade exhibitions Supported 15 Limpopo SMME’s on a trade mission to Brussels Supported 12 Gauteng SMME’s and 4 Tender Advice Centres (TAC’s) to participate at the Gauteng Economic Empowerment Exhibition at Gallagher Estates Completed a study on supply chain opportunities in: Mining and mineral Beneficiation Agro Processing Tourism
16 Activities and achievements cont.Undertook a Study Series to determine the training practices in small business firms Concluded the longitudional study to determine the skills practices and needs of SMME’s Published the State of small Business Development in South Africa (2002) Facilitated the formation of the African Forum of Trade Points and commissioned the Johannesburg Trade Point.
17 Priorities for 2004/2005 In Negotiation. Rm 58.00 TIDP ContinuationIn Progress Rm 17.50 Communications 4.00 Micro survivalist 1.00 Large business Chamber support 5.00 Trade points 2.00 Capacity building 3.00 Incubation 0.50 Procurement In Negotiation. Rm 58.00 TIDP Continuation 28.00 Chamber continuation 10.00 Technonet Africa 20.00 In Progress Rm 16.00 ICSB World Conference
18 Thank You