SECTOR MATRIX ENTERPRISE DEVELOPMENT WORKSTREAM

SECTOR MATRIX ENTERPRISE DEVELOPMENT WORKSTREAM BY KHOSI MDLETSHE

KEY PARTICIPANTS Department of Economic Development and Tourism Department of Health Department of Transport DoE / FET Tourism Unit/Business Support Department of Public Works Department of Human Settlement

OBJECTIVES • To ensure facilitation, co-ordination and alignment in the implementation of KZN BBBEE strategy. • To share experiences, information and opportunities. • To agree on best practices and yield high returns. • To focus on key growth sectors and share resources as departments. • To identify projects where departments can work as a collective. • To assist departments to devise strategies to implement, strengthen and accelerate BBBEE in their respective departments. • To devise a policy document with relevant guidelines which can be implemented by all departments on achieving BEE in specific sectors of the economy.

KEY CHALLENGES FOR SMMES • Lack of Business Development support. • Lack of resources. • Insufficient Human Resource Management skills. • Lack of Financial Business Development support.

SECTOR MATRIX – ENTERPRISE DEVELOPMENT APPROACH Graduating selected small Black-owned enterprises into medium and large enterprise status. Ensuring that the small Black owned enterprises have access into big tenders. Ensure that businesses selected are BEE compliant thus achieving transformation.

SECTOR MATRIX ENTERPRISE DEVELOPMENT PROCESS FLOW CHART

STAGE ONE • This is the phase of starting up. • Registration and sometimes the business in not even registered • Formalisation – registration through CIPPRO • Compliance with SARS/CIDB/BEE • Treasury Registration

STAGE TWO • Mentorship programme by sector. • Tender Advice programme. • Assistance with access to finance. • Incubation programme. • Sub-contracting. • Data base development.

STAGE THREE • Graduation Process • Joint ventures or partnerships • DTI involvement in overseas markets. • All funding available from government and private sector • Rotation when Awarding of Tenders.

STAGE FOUR • Monitoring and Evaluation • Research and Development • Growth Strategy development. • Clear Exit strategy

PROCUREMENT • Procurement is the corner stone element on the BEE scorecard. • Access to Finance is also key. • BEE compliance will result in transformation of the economic. • Government needs to take the lead in procuring from BEE compliant businesses.

RECOMMENDATIONS FOR ENTERPRISE DEVELOPMENT • Award tenders based on locality of entrepreneurs. • Apply the rotation of awarding. • Break down big tenders into smaller parts or phases. • Set Asides. • Involve DTI incentives. • Joint ventures/partnerships

KEY CHALLENGE • Fronting is challenge. • Funding is still a challenge for emerging contractors. • Industry leaders not willing to transform.

APPROACH BY DEDT • Sector focused. • Sectors identified and of focus: • Tourism • Construction (Women in Construction) • Agribusiness • Wood and Wood Product (Strategy Development) • Arts and Craft (produced a strategy) • Clothing and Textile (setting up Hub aimed at Cooperatives) • ICT – Finalising Strategy

THANK YOU end

SECTOR MATRIX ENTERPRISE DEVELOPMENT WORKSTREAM