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INTEGRATED SMALL ENTERPRISE DEVELOPMENT

INTEGRATED SMALL ENTERPRISE DEVELOPMENT. By Vela Mkhize Manager: Co-operatives Development: Uthungulu District DEDT – Directorate: Integrated Business Enterprise Date: 26 FEBRUARY 2010. PRESENTATION OUTLINE. Background Objectives of the SBD Regional Operations Model Strategic Partners

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INTEGRATED SMALL ENTERPRISE DEVELOPMENT

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  1. INTEGRATED SMALL ENTERPRISE DEVELOPMENT By Vela Mkhize Manager: Co-operatives Development: Uthungulu District DEDT – Directorate: Integrated Business Enterprise Date: 26 FEBRUARY 2010

  2. PRESENTATION OUTLINE • Background • Objectives of the SBD • Regional Operations Model • Strategic Partners • Institutional Framework • Population • Local Municipalities • Key Programmes • Achievements • Challenges & Interventions • Conclusion

  3. 1. BACKGROUND • Integrated Small Enterprise Development unit mandate is aimed at unlocking the potential of entrepreneurs • Acknowledgement of contribution of Small Enterprises to the economic growth - GDP (40%) • Existence of 1st and 2nd economy and a need to reduce the gap between the rich and the poor

  4. 2. OBJECTIVES Provides effective strategic leadership, direction and coordination to business support services and Small business Interprise development in KZN Create a framework to facilitate the provision of integrated business support services to existing and new SMMEs and Co-operatives Supports the establishment of effective SMME and Co-operatives Support Service Delivery Network Facilitates the creation of a competitive SMME and Co-operative sector in the Province Supports and promote the culture of entrepreneurship.

  5. 3. REGIONAL OPERATIONS MODEL Northern Region Southern Region Midlands Region Central Region UThukela Amajuba Umzinyathi uMgungu -ndlovu iLembe Sisonke Uthungulu Umkhanyakude Zululand EThekwini Ugu

  6. 4. STRATEGIC PARTNERS Co-operatives Small Enterprise Development Agency (SEDA) District and Local Municipalities Ithala Further Education & Training Colleges Joint SMME Fund (Standard Bank & ABSA) Secondary Co-operatives

  7. OPERATIONALISATION • The Department have 11 district offices across the province • For this region, offices are at • Jozini, Richardsbay, Vryheid and Stanger

  8. 5. INSTITUTIONAL FRAMEWORK - SMALL BUSINESS DEVELOPMENT – NORTHERN REGION

  9. REGIONAL & DISTRICT POPULATION STATISTICS DISTRICT MUNICIPALITIES POPULATION • Midlands Region • Uthukela • Amajuba • Umzinyathi 562 000 468 000 456 000 • Central Region • Umgungundlovu • Ilembe • Sisonke 979 000 560 000 298 000 • Northern Region • Zululand • Umkhanyakude • Uthungulu 804 000 573 000 886 000 • Southern Region • Ethekwini • Ugu 3 000 000 704 000 TOTAL POPULATION 9 288 000 6. KZN POPULATION

  10. 7. LOCAL MUNICIPALITIES

  11. 8a. KEY PROGRAMMES Training and Capacity Building Capacitate and equip SMMEs & Co-ops with imperative skills to start, run and grow their businesses Provide business management and technical skills Develop and provide ongoing capacity building programmes and review on a regular basis

  12. 8b. KEY PROGRAMMES CONT Business Support Enhance sustainability and promote entrepreneurship amongst existing and new SMMEs & Co-ops Access to information on business opportunities in govt. Focuses on finance and financial services, markets, business incubation, mentorship and general business advice Access to Business Finance

  13. 8d. KEY PROGRAMMES CONT. SMME JOINT FUND This Fund is aimed at developing, supporting and providing funding to SMME’s in the Province. Department concluded separate agreements with ABSA, SBSA, Ithala. The main purpose is to facilitate business initiatives of SMME’s in various sectors through providing easy access to funding that is not attainable from normal banking channels. The specific focus of the Joint Fund is to promote black economic empowerment and job creation.

  14. 9. ACHIEVEMENTS SMME Support Service Delivery Network Establishment of One Stop Shop centre – Richards Bay Small Business Forum Establishment of Business Forum for Uthungulu District Municipality Umhlathuze BusinessFair & Promotion Business Fairs and Summit held at Richards Bay during the month of June 2009, exposing more than 50 small businesses to market opportunities Access to Finance Through the KZN SMME Fund, Royal Show Exhibition and Umhlathuze Business Fair, more than 20 businesses managed to secure financial assistance Training and Capacity Building More than 150 SMMEs has been trained in basic business management and computer literacy skills

  15. Co-operatives • A co-operative is defined as an autonomousassociation of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise organized and operated on co-operative principles. • Primary cooperatives – Minimum 5 persons • Secondary cooperatives – Minimum 2 primary cooperatives • Tertiary cooperatives – Minimum 2 secondary cooperatives

  16. Purpose • To encourage the mass participation of PDIs to the main stream economy • Promote development of sustainable co-operatives that comply with co-operative principles, thereby increasing the number and variety of economic enterprises operating in the formal economy; • Encourage persons and groups who subscribe to values of self-reliance and self-help, and who choose to work together in democratically controlled enterprises, to register co-operatives. • Promote equity and greater participation by black persons, especially those in rural areas, women, persons with disability and youth in the formation of and management of co-operatives.

  17. IMPLEMENTATION • Training • Registration • Mobilisation • Funding support • Marketing • Mentoring

  18. NEW CO-OPERATIVE PROJECTS • Establishment of the Co-operative Bank. • Establishment of the Co-operative College. • Promotion of Saving and Credit Co-operative (SACCOS) • Promotion of Consumer Co-operatives • Promotion of Transport Co-operatives • Provision of Infrastructure support for Agricultural Co-operatives.

  19. Sectors • Agriculture • Services • Manufacturing • Art, culture and Tourism • Clothing and Textile • Construction

  20. 10a. CHALLENGES AND INTERVENTIONS

  21. 10b. CHALLENGES AND INTERVENTIONS

  22. 11. CONCLUSION The KZN Small Business Development is aimed at contributing to the Strategic Goal and Outcomes of Government, i.e. “A Better Life For All’

  23. 12. CONTACT DETAILS Physical Address: 270 Jabu Ndlovu Street (Head Office) Joshua Doore Building Pietermaritzburg, 3201 Telephone No. (033) 264 2500/34 Fax No. (033) 264 2672 Physical Address 2: 300 Bullion Boulevard Street Opposite Umhlathuze Sport Complex Veldenvlei Richardsbay, Telephone No. (035) 797 1100 Northern Region: Mr Khaye Bele (SMMEs) 0716892787 Mr Vela Mkhize (Cooperatives) 0795052347

  24. END…….Asante SanaNgiyabonga

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