A Collaboration Model for SMME Development in South Africa

1. A Collaboration Model for SMME Development in South Africa Presented By Professor Jurie van Vuuren, University of Pretoria, South Africa

2. INTRODUCTION • Background and History of the Project (Be@UP & Ce@UP) • Tshwane Business Development Partnership • Generous funding provided by The City of Tshwane (COT) • Skills, knowledge and expertise from University of Pretoria (UP) • Objectives and Purpose • Enterprise Development within the Tshwane Municipality • Overall contribution towards the Local Economic Development (LED) within the Municipality • Implementation of a variety of projects associated with LED

3. PROJECT STRUCTURE Thane Business Development Partnership Capacity Building Component Project Support Component • SMME Capacity Building Project • Business Start-Up Training • Programme • Basic Entrepreneurship • Training Programme • Advanced Entrepreneurship • Training Programme • Mentorship Programme • Financial Literacy • Export Promotion • SME Toolbox • Co-operative development • Supplier Development • Customer relationship management • Walk-in Support and call centre • Online Information Support • Marketing and Promotion • Tshwane Business Club

4. CAPACITY BUILDING COMPONENT • SMME Capacity Building – Further elaboration later • Financial literacy • To equip delegates with basic financial skills - empowerment • Export promotion • Entrepreneurs with potential to export taken through a programme to grow their businesses • SME Toolbox • A Handy tool for the prospective SME to start his/her business and comply with the regulatory environment • Co-operative development • Develop groups of individuals who wish to share the risk of a start-up • Supplier development • Development of SMME’s already on Tshwane’s supplier base - growth

5. PROJECT SUPPORT COMPONENT • Customer Relationship Management • Service to manage relationships and networks between SMME’s and Customers • Walk-in and Call Centre • Centre can be visited by clients e.g. technology support and call in for support • Online information Support • Interactive online and web based support • Marketing and Promotion • The whole partnership and SMME’s • Tshwane Business Club • Database of Entrepreneurs/SMME’s/Networks

6. MOU COT & UP MOA COT Representative: Mr. C Chauke CE at UP Representative: Mr. D Herbst PROJECT BOARD (PB) COT: Mr C Chauke, Mr B Mboniswa, Ms M MalahlelaCE at UP: Prof. S Vil-Nkomo, Prof C Thornhill Prof E van Rooyen SECRETARIAT Client Liaison: Ms H TurnerManager: Dr M BothaAdmin Assistant PROJECT IMPLEMENTATION COMMITTEE (PIC)COT: Ms Nomgqibelo Mdlalose, Mr J. Mahlangu, M Molefane CE at UP: Ms H Dorfling, Mr. C vd Merwe, Mr. I Crause CAPACITY BUILDING PROJECTS General Manager: CE at UP Ms H Dorfling General Manager: BE at UP Mr. C vd Merwe Project Management Office Ms M du Preez Ms P Boshoff Dr M Botha Admin Assistant Project Management Office Mr. Izan Crause Ms H Turner Dr M Botha Admin Assistant Principal Advisor (Prof J van Vuuren) Project Manager (Ms S van Tonder) Project Manager (Mr. J Pretorius) Program Manager (Mr. . C v/d Wath) Program Manager (Mr. S. Baloyi) Mentor 1 & 2 Mentor 3 & 4 Mentor 5 & 6 Supplier 1 - 4 Supplier 5 & 8 Supplier 9 - 12

7. SMME CAPACITY BUILDING PROJECT • Background to the Project • Purpose and Objectives • Client Profile • Three Programmes • Business Start-Up Training Programme + 10 week Mentorship Programme • Basic Entrepreneurship Training Programme + 10 week Mentorship Programme • Advanced Entrepreneurship Training Programme + 10 week Mentorship Programme

8. SMME CAPACITY BUILDING PROJECT (cont.) • BUSINESS START-UP PROGRAM • Description: • The business start-up training program will focus specifically on introducing the concepts and principles of entrepreneurship and small business management to the delegate that will equip him/her to start a business. The target audience will be individuals with a business idea but has never operationalise this idea. The program will specifically focus on introducing the delegate to pre-start up and start-up processes and principles that are vital for establishing long-term success and sustainability. Critical skills such as the content, strategies and processes of entrepreneurship, Creativity, Innovation and opportunity recognition as well an introduction to basic business skills will be included in this program. • Criteria: • Minimum qualification of Grade 12. • Must have a general knowledge and understanding of English. • Must have the desire to start a business/ not be in business yet. • Already have an idea of the type of business that they wish to start. • BASIC ENTREPRENEURSHIP PROGRAM • Description: • The basic entrepreneurial training program will focus on establishing basic entrepreneurial and management skills to the delegate. The target audience will be individuals with survivalist businesses (One person businesses). The program will specifically focus on the concepts of basic small business management (planning organising leading and control), by communicating and equipping the delegates with skills and knowledge that relates to the introduction and basic financial-, operational-, human resources- and marketing management. • Criteria: • Minimum qualification of Grade 12. • Must have a general knowledge and understanding of English. • Must have a micro/survivalist businesses /employ less that 2 • Must have the desire to grow and expand. • ADVANCED ENTREPRENEURSHIP PROGRAM • Description: • The advanced entrepreneurial training program will focus on introducing more advance entrepreneurial and small business management concepts to the delegate. The target audience are individuals with three or more employees (Established Small Businesses) The program is designed to address typical management issues such as growth and expansion to establish growth and development of the venture as an entrepreneurial venture in the market. By introducing the delegate to the concept of strategic planning, a future orientation towards doing businesses in South Africa is established. • Criteria: • Minimum qualification of Grade 12. • Must have a general knowledge and understanding of English. • Special needs as required by the market e. g. financial, marketing, human resource management can also attend the program if needed • Must have an existing small business that needs to grow into an entrepreneurial venture.

9. PROCESS: MONITOR, EVALUATION, REWARD AND COMMITMNET: SMME CAPACITY BUILDING PROJECT (cont.) 1. Selection Interview Structured Interview + Form 2. Registration Commitment Fee (R200.00) 3. Training Pre-Test; Post-Test 4. Mentorship Post-Post Test (1) 5. Graduation Certificate of Completion (CE at UP) 6. One Year Later Post-Post Test (2)

10. SMME CAPACITY BUILDING PROJECT (cont.) RESULTS TO DATE: Skills Transfer Business Start-UP

11. SMME CAPACITY BUILDING PROJECT (cont.) RESULTS TO DATE: Skills Transfer Basic Entrepreneurship

12. SMME CAPACITY BUILDING PROJECT (cont.) RESULTS TO DATE: Skills Transfer Advanced Entrepreneurship

13. SMME CAPACITY BUILDING PROJECT (cont.) REASONS FOR SUCCESS: • Partnership between a Local Government Local Economic Department and an Organ of State (UP) • Integrated approach (Capacity development & Support) • Interview Process and Placement • Mentorship Programme • Dedicated team of knowledgeable mentors that service the delegates in a venue that is easily accessible to them • Commitment Fee • Opportunity to obtain a Certificate from the University • Collaboration agreements with Financial Institute to provide funding for delegates who qualify for it according to their criteria

14. Any Questions? Contact Details: Professor Jurie van Vuuren jurie.vanvuuren@up.ac.za Executive Director: Mr. Caiphus Chauke Caiphus.chauke@TSHWANE.gov.za