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Nazir Alli

SEDIC ‘09 Small Enterprise Development in Construction: 27 September 2009 How Enterprise Development Models Evolve to Suit Specific Sectors. Nazir Alli. #392173. Objective. Achieve economic stability within communities - Promote empowerment - Create wealth and generate employment

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Nazir Alli

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  1. SEDIC ‘09Small Enterprise Development in Construction: 27 September 2009How Enterprise Development Models Evolve to Suit Specific Sectors Nazir Alli #392173

  2. Objective • Achieve economic stability within communities - Promote empowerment - Create wealth and generate employment • Achieve economic independence - Develop entrepreneurs - Reduce investment costs for SMMEs - Sustainable businesses

  3. Controls • Legislation - Preferential Procurement Act > 90/10; 80/20 - Construction Industry Development Board > grading system - Public Finance Management Act - Supply Chain Management Regulation - BBBEE • Influences - Sector charters

  4. Problems • Bankruptcy • Undercapitalization - improper financial planning - access to funds - macroeconomic conditions • Tender process • Fixed costs • Cost controls • Insurance • Red tape

  5. Advantages • Independence • Financial potential • Specialized niches • Avoids bureaucratic inertia • Career control • Nimble

  6. Creating Opportunities • Rehabilitation and similar works - plant intensive - high entry barrier - short duration • Routine road maintenance - low entry barrier - long duration - minimum plant

  7. Creating Opportunities (Cont.) • Set asides - RRM: 80% SMME →90% Black owned; 20% large →subject to BBBEE - Other works: variable requirement • Unambiguous tender rules - no shifting of goal posts • Provide training

  8. Contract Participation Goals • Pre-charter - Labour maximization - SMMEs (black) - Black Supervision (EE) - Black equity (Ownership/Executive Management) - Training (SANRAL)

  9. Contract Participation Goals (Cont.) ● Post charter - Black equity - Black Executive Management - Enterprize development - Training - Employment Equity - Procurement - CSI ● Retained labour

  10. Thank you • Fraud Hotline:0800 204 558 • sanral@tip-offs.com • Website: www.nra.co.za

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