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