Scope of SASMEF

2. Scope of SASMEF WHY SASMEF Background Hypothesis & Objectives Timing & Budget Collaborations SASMEF

3. BACKGROUND SA needs sufficient economic growth to ensure sustainability • not sufficient wealth to merely redistribute • balance financial, human and environmental benefit and resource demands) i.e.: • Improved standard of living • Economic health • Environmental health

4. BACKGROUND Why we are talking about SMEs • Contribution to • GDP (Informal – 7%, Brazil 30%) • Job creation – 68% of private employment (avg 4.4 / firm) – growth economies > 80% • Cost of Job creation (<R50k vs Gov Learnership R93k & EPWP R123k) • Livelihoods of families (family businesses) • Distribution of • Wealth (against performance) • Diversifying Economic Risk • Tax base (middle class growth)

5. Hypothesis & Objectives(to achieve the sustainable economic growth needed) Restructured economy (Ideal Economic Structure) where • The numbers of each size level creates a healthy base for the next level (Informal to Corporate) • The contribution to GDP is more equally generated by all sector sizes • Job creation is generated more equally by all sector sizes • Control of resources is more equally distributed among all sector sizes Current SA Economic Structure Corporate Large Medium Small Informal & Micro Ideal Economic Structure

6. Hypothesis & Objectives(to achieve the sustainable economic growth needed) ASSOCIATIONS INDUSTRY SPECIFIC GENERAL BUSINESS SME COMMUNITY • SMEs have limited access & control: • resources • funding • management skills • supply chain (high barriers to entry)

7. ASSOCIATIONS INDUSTRY SPECIFIC GENERAL BUSINESS SME COMMUNITY Hypothesis & Objectives(to achieve the sustainable economic growth needed) • Multiple SME development agencies = limited impact (Khula 2010/11 - R70m disbursed to 1500 SMEs, 2500 jobs created) • SOEs not using SMEs = limited economic development • Corporate control of Supply Chain, unspent ED, SED = limits econ growth through SMEs • General business associations & Industry Forums = limited SME focus GOVERNMENT (NPC,DTI, DED, SOE) CORPORATE (SUPPLY CHAIN, ED, SED)

8. ASSOCIATIONS INDUSTRY SPECIFIC GENERAL BUSINESS SME COMMUNITY Hypothesis & Objectives(to achieve the sustainable economic growth needed) GOVERNMENT (NPC,DTI, DED, SOE) CORPORATE (SUPPLY CHAIN, ED, SED) NO - Effective intermediary between Government / Corporate and Small Business Community - ONE VOICE FOR SMALL BUSINESS THE GAP

9. Hypothesis & Objectives(to achieve the sustainable economic growth needed) Timm (2011) - entrepreneurial support success from Brazil and India: • Develop a national entrepreneurial vision with measurable targets, with backing from the president. • Build more forums based on partnerships between government and the private sector. • Simplify government’s support architecture. • Put effective real-time monitoring mechanisms in place. • Improve the capacitation of government agencies.

10. Hypothesis & Objectives(to achieve the sustainable economic growth needed) SASMEF PURPOSE: • Continuously stimulate economic growth through an integrated / holistic approach to the sustainable development of SMEs • by building a balanced and constructive relationship between Government & Corporate business and the SME community • regarding access to and control of resources to ensure a larger and more diverse basket of contributors to the GDP.

11. Hypothesis & Objectives(to achieve the sustainable economic growth needed) GOVERNMENT (NPC,DTI, DED, SOE) CORPORATE (SUPPLY CHAIN, ED, SED) THE GAP Economic growth through building sustainable SMEs ASSOCIATIONS INDUSTY SPECIFIC GENERAL BUSINESS Create equilibrium SME PROMOTION Government Corporate CAPACITY BUILDING SME Community SME COMMUNITY COLLABORATE Balanced and Constructive Relationship

12. STRATEGIC OBJECTIVES – 2014 (to stimulate sustainable SME Development) FINANCIAL Financial Sustainability CUSTOMER Improved sustainability of SASMEF, Business Associations & members & service providers INTERNAL Integrated technology Platforms (for CRM, communication & corporate governance) to be operational GROWTH & INNOVATION Establish Functional Organisation

13. THE CAMPAIGN - 2012/13

14. Scope of SASMEF Economic growth through building sustainable SMEs One Voice for SMEs SME Promotion Government Corporate Civil Society Capacity Development Business Associations SMEs Service Providers Collaboration Secretariat Research Stakeholder Relations

15. Scope of SASMEF

16. Scope of SASMEF

17. Timing & Budget

18. Timing & Budget

19. Collaborations (existing & explored) • DTI (NSBAC/SEDA/Portfolio Committee) • EDD (SEFA) • PROVINCIAL EDT (EDT Portfolio Committee) • MUNICIPAL LED (SALGA, CT Activa, etc) • CORPORATE BUSINESS • BUSINESS CHAMBERS • EDS organisations (Business Place, SBU, etc) • SERVICE PROVIDERS (IBA, IIB, etc) • ACADEMIC INSTITUTIONS • Traditional Leaders • INTERNATIONAL DEVELOPMENT AGENCIES

20. SASMEF

21. INTERIM BOARD(FOUNDING MEMBERS) Harry Azima (Chair) * Lydia Zingoni (Vice Chair) * Moses M Mwanjirah (Secretary) * Jonathan JacobsCarl J Lotter * Madelein Mkunu Sam Ndzunga Raeez Rayner Luther Diedericks Mark Weideman * Executive Committee

22. OUR EXPECTATIONS We need to agree on • SME key role in economic growth and need an integrated development initiative • Independent (SEBRAE like) PPP collaboration– to participate in legislation, policy and strategy formulation • A national roll-out and funding mechanism through which SASMEF can be capacitated over the next 5 years

23. THANK YOU Join our One Voice for SMEs Campaign Harry Azima Executive Chairman