Transcript Document
SMME POLICY FRAMEWORK, INSTITUTIONAL ARRANGEMENTS, AND ROLES OF VARIOUS INSTITUTIONS INVOLVED IN SME DEVELOPMENT IN SA Third Tri-nations Summit for Small Business Development (November 18-22, 2008) 1 PRESENTATION OUTLINE Outline SMME LANDSCAPE IN SOUTH AFRICA SMME DEVELOPMENT POLICY FRAMEWORK 3 PILLAR STRATEGY FRAMEWORK INSTITUTIONAL ARRANGEMENTS AND INSTITUTIONAL MANDATES 4 PILLAR SUPPORT FRAMEWORK 2 SMME LANDSCAPE IN SA CLASSIFICATION ENTERPRISE CHARACTERISTICS FINANCIAL SUPPORT NEEDS PRACTICAL SUPPORT NEEDS •Up to 200 employees •Developed technical & business skills Turn Over > R25m / annum Medium – long term debt & equity finance Regulatory compliance, technological support quality control, market intelligence, process and systems reengineering. Small • up to 50 employees •developed technical/ limited bus. skills and technological know-how • turn over < R25m per annum Short – medium term debt •Asset base & working capital finance Technology transfer and Technical assistance, Appropriate business infrastructure, Market linkages, Coaching and mentoring, standards and certification, Micro Up to 5 employees •Turn over within R1000 000 – current VAT Registration threshold per annum • Some technical and very limited bus. skills and technological know-how Short term loans •Working capital finance Business start advice, Access to support information, formalization processes, business development & Technical Skills training Survivalist • Owner self / family employment • Income generated within minimum wage band •Short term loans Business start advice and information Seed funds ( grant 3 support) Medium Opportunity driven, Necessity driven, survival •Asset base, working capital, property finance, etc. •Stock purchase finance SMME DEVELOPMENT POLICY FRAMEWORK 2004: 10 YEAR REVIEW • FROM 1995 White Paper Policy Framework • • • • Creating an enabling legal framework Streamlining regulatory conditions* Facilitating access to business support information and advice • • • • Facilitating access to marketing and procurement Facilitating access to finance Facilitating access to affordable physical infrastructure • • • • • • • Providing training in entrepreneurship, technical skills and management skills Improving industrial relations and the labour environment Facilitating access to appropriate technology and technical assistance Encouraging joint ventures Capacity building and institutional strengthening Introducing differential taxation and other financial incentives • • • • • • Substantially strengthen support for SMMEs’ access to finance Create an enabling regulatory environment Expand market opportunities for specific categories of small enterprises Localize small-business support through a grid of coordinated information and advice-access points Initiate a national entrepreneurship drive and expand education and training for small business Co-fund minimum businessinfrastructure facilities in localauthority areas across the country Encouraging increased private sector participation Ensuring action across the entire entrepreneurship continuum 4 Integrating government funded 2005 NATIONAL STRATEGY FRAMEWORK STRATEGIC PILLARS FOR THE SMME STRATEGY Strategic Pillar 1: Increase supply for financial and non-financial support services Strategic Pillar 2: Creating demand for small enterprise products and services Strategic Pillar 3: Reduce small enterprise regulatory constraints At the core of this new strategy, is The principle of “integration”, which relates to ; •Integration of different socio-economic policy areas •Integration of programmes within the public sector (cutting across national, provincial and local government) and between the public and private sectors •Integration of the activities of different entrepreneurship and small enterprise 5 promotion institutions NATIONAL STRATEGY FRAMEWORK ENHANCED RECOGNITION Attends to special foci Various strategies include: •Transformation and equity (BBBEE) •Special target groups (youth, women and the disabled) •Special geographic areas (poverty areas and areas with high unemployment) •New enterprise organisational forms (such as co-operatives and Franchises) •Special sectors (growth sectors as identified in the National Industrial Policy and high performance sectors for SMMEs as identified in the Small Business Reviews 6 INSTITUTIONAL ARRANGEMENTS THE DEPARTMENT OF TRADE AND INDUSTRY; NATIONAL FRAMEWORK • National Small Business Advisory Council • Small Enterprise Development Agency • The Enterprise Organisation • Dedicated for policy advocacy, • Strategy implementation impact monitoring • Advice on research agenda for the small enterprise sector and strategy reviews • Dedicated national non-financial support services, • Agency targeting Micro, Small, Medium enterprises, • National business support network including business incubation centres. • Partnership with agencies sponsored by other spheres of government and the private sector • Dedicated for business development incentives administration 7 THE FINANCING LANDSCAPE AND INSTITUTIONAL MANDATES IDC NEF SAMAF R0 R10K R250K R1m R3m+ AGENCIES SPONSORED BY PROVINCIAL GOV Khula Micro-enterprise finance Samaf not l direct lending SME Finance NEF Exclusive for bee finance Khula not direct lending Industrial Finance 8 Medium sized enterprises to large corporate 4 PILLAR SUPPORT FRAMEWORK National-government support the dti National Small-Business Advisory Council Parastatals interacting with SMMEs National departments and related agencies with line functions affecting SMMEs Developm ent-finance institutions DBSA, IDC, NEF, NDA, Land Bank, Samaf, etc. SmallEnterprise Development Agency International and interregional support and cooperation Partners Communicat ions and media services Local and provincial support RESEARCH AND INFORMATION DISSEMINATION Provincial SmallEnterprise Agencies GOVERNMENT CLUSTER COORDINATION OF APEX PROJECTS District municipality initiatives in SMME support DTI-PROVINCIAL COORDINATION STRUCTURES PROVINCIAL COORDINATION STRUCTURES Municipality functions affecting SMMEs OUTREACH PROGRAMMES NGOinitiated support services CONTRIBUTION BY BBBEE CODES OF GOOD PRACTICE Education, training and research for SMMEs Local agencies and initiatives to strengthen SMMEs Need and/or demand for SMME-support services Communitybased support services, incl. savings schemes, loan systems and advice centres Extended familybased services Sector/trade associations and sectorfocused initiatives Business Chambers and area-focused associations Private specialised support services Smallenterprise consultants Corporate services for SMMEs Financia l institutio ns Venture capitalists 9 Combined community and private services Capacity and supply for support services Provincial-government departments with line functions affecting SMMEs THANK YOU Mandisa Manjezi [email protected] +27 12 3941849 www.thedti.gov.za 10