Technology and Business Development for SME Growth

1. TECHNOLOGY AND BUSINESS DEVELOPMENT • GODISA • TSHUMISANO Marjorie Pyoos General Manager: Research and Technology Transfer Department of Science & Technology

2. Background • Target – business and industry (other interventions specifically designed to focus on job creation) • Part of National SME strategy: strengthening the economy by increasing the number of strong, export oriented small & medium sized enterprises • Strong integration with other government instruments in the SME field, eg DTI programmes and good partnering so far with industry • Challenges on the technology front relate to capacity of exporting firms to meet high technical standards – not “rocket science” just existing technologies and competencies that need to be put to work to enable SA businesses to participate on sophisticated global markets. Technical standards could be health, safety or product quality related. • Opportunities exist for new businesses for products and service not yet locally produced or where there are still untapped markets or where our raw materials are being beneficiated abroad and we are importing the products back at high cost because of the extent of the “foreign” value-add. DST

3. Spectrum of SMEs • Emerging, high tech end of spectrum Biotechnology, ICT • Mature, medium tech businesses Electronics, Performance chemicals, Minerals Metals & Textiles processing, Medical devices, Automotive components – mechanical engineering • Testing and related technical services for exports Chemical analysis and product formulations, textile testing, safety analysis DST

4. Programme development challenges • Concrete results only coming through now – past few years have involved programme design, set-up and operationalisation • Establishment phase not much challenged with technology options or business opportunities but involved issues of resourcing (funds to pay for technology platforms & relevant expertise), defining governance and operational management frameworks, developing and implementing strategic approaches for “client” searches (SMEs – particularly black owned ones) • Major problem still exists i.r.o. seed financing [DTI will soon launch Venture Capital Fund and this may address the issue]. Need to explore other avenues of development financing. DST

5. GodisaGodisa is a Sotho word meaning growth through nurturing.The DST focus in this programme is on start-up technology based businesses in the first few years (0 to 3yrs) of operations The programme was first piloted with DST benefiting from the support of the European Commission DST

6. Godisa centres DST

7. Godisa highlights SOFTSTART Fourteen entrepreneurs, ten tenant companies (100% full) One wholly black-owned company (2Big Mobile Solutions) – systems for data retrieval / facilitated significant contract with law enforcement agency (Jhb Metropolitan Police)/ major market appeal in other SADC countries An all female company (Columbiz) developing host to host communications software targeted at the communications industry – piloted by major retail bank in SA Two BEE companies developing software which supports the integration of office systems. DST

8. Zenzela TDC has proven the feasibility of a model to demonstrate, transfer and embed mining knowledge and technology to small scale companies and rural communities. Although the sector is not an easy one, with rather footloose companies hopping from dump to dump and never longer in one place than 5 years – there is clearly proven demand for the services offered by the centre. DST

9. Godisa highlights ZENZELE Supporting more than 900 small scale miners on over 70 projects – creating more than 300 new jobs 65 – Copper mining – NC / increased production and sales of Nana Sun copper art and wall hangings, bowls, jugs, dishes and kettles 200 – platinum recoveries – Springs / increasing yield by up to 50% New brick-making industry – EC /Ndwe Pilot to upgrade clay - Ndwedwe DST

10. Godisa highlights Chemin BM>3 100% BE enterprise Value-added Aloe Ferox Products (polysaccharide gel, alocin, aloin) Solicited design of mechanical device to rapidly extract juice and preserve Three middlemen identified (also does first step concentrating by boiling until crystallisation) Each middleman can retain around 500 juice collectors Eastern Cape Analytical Centre McClachlan and Lazar, PE Technikon, EnviroQuest (PDI staff to receive initial share option of 15%, grow to 60% black owned over time) Offering complete range of chemical analytical services nationally and further afield [SA heavily dependent of foreign firms – Centre can be developed to service Africa] Other interests – CSIR BioChemTek, Aspen (pharmaceutical stability lab), Engen (petrochemicals lab), PE municipality (water analysis lab). DST

11. Godisa case studiesCompany contracted – Resolve World WideCentres involved: eGoliBIO, Zenzele, Softstart, Acorn, Voxel, CheminReport expected: December 2003 DST

12. TshumisanoTshumisano is a Venda/Northern Sotho word for partnership.The DST focus in this programme is on using a partnership relationship that benefits both technikons and existing small to medium sized technology based busineses DST

13. Tshumisano DST

14. Tshumisano highlights PE Station – Automotive components Feltex – development of a state of the art motorcar seating jig / ensuring company keeps current export contract - stood to lose 120 jobs XMECO – development of new generation welding gun (integrated gun) to meet EU standards / gun 2kg lighter than any other similar product – assembly time halved. Yenza – secured contract with VWSA / development of jig and fixture for a sub-assembly Design and conceptualisation of a “high tech” robotics station for application of anti-squeak paint to interior door panels for a local company supplying car parts to BMW for export purposes Khaya Engineering – contract preparation - supply of dunnage engine containers for VWSA / first part of contract secured – 16 prototypes to be sent to Brazil and Germany DST

15. Left: Mr A Mtshwane (Khaya Engineering) Right: Dr D.G. Hattingh (Automotive Components Technology Station ACTS: PE)

16. Tshumisano highlights Pretoria Station – Electronics Medi-tech Clothing / Messrs Benjamin Mamosebo, Lebo Mnguni, Mike Masil from Ga-rankuwa. Special outfit to ease the suffering of individuals who have disabilities and others suffering from stroke, arthritis. Automatic porridge cooker / Mr Themedi Zwodangani from Orlando East – reduced manufacturing cost and design of electronic control module. North West – Chemicals Phatsima Wax – Mrs Grace Kgomongwe / shortage of M3M wax for manufacture of floor polish – reformulation and performance testing led to replacement with combination of Sasol and Chinese wax. DST

17. The Technology Station in Chemicals at Technikon North WestTECHNOLOGY TODAY FOR A BETTER TOMMORROWIPHITHLELELE THEKENOLOJI GOMPIENO GORE O NNE LE BOKAMOSO JO BO EDILENG To be the first choice providers of the technology and business needs of SMMEâs in the chemical industry PRODUCTS. Technology Transfer by the station was as follows: The project team formulated a cleaning gel and a shower gel on a small glass beaker scale. The products formulated on an analytical scale were then tested for pH, viscosity, appearance and odor compatibility. Then the same products were manufactured on a large scale in the clients manufacturing vessel. The products manufactured on a large scale were also tested for pH, Viscosity, appearance and odor compatibility.

18. Knife Sharpener Aluminum casting was made of the housing. The final products will be manufactured at the Technikon and the customer will sell it.A very rough idea was taken and redesigned to be able to reproduce this device in large quantities. The original design was a plate bended and welded casing in which a diamond belt run over 3 pulleys. The pulleys was driven by means of a ordinary bench grinder. The Technology Station in Metals & Manufacturing at Technikon Free StateUNLOCKING HUMAN POTENTIAL THROUGH TECHNOLOGY AND CAPACITY BUILDINGImproving the competitiveness of technology based businesses PRODUCTS. Sta Soft BottleThe customer wanted a drip free bottle. This meant a total design change on the cap and neck of the existing mould. A concave shape of the cap was designed on the SLS.

19. The Technology Station in Chemicals at Mangosuthu TechnikonCHEMICAL TECHNOLOGY WITHIN REACH Accessible Technological Support to SMMEs manufacturing Chemicals and Related Products to provide and promote innovation strategies and enhance competitiveness. A broader range of some of the cosmetics, household & industrial cleaning products developed by the station for SMMEs. PRODUCTS. Cleaning Product formulation being developed in the laboratory.

20. The Technology Station in Clothing and Textile Technology at Peninsula TechnikonTAILOR MADE SOLUTIONS IN CLOTHING AND TEXTILES TECHNOLOGY SMMEs at training, on work flow processes & factory layout. Providing support to SMMEs in the Clothing and Textile industry to improve innovation and competitiveness. PRODUCTS. Demonstration by Professor Liekweg of Germany at a Workshop held for training of clothing SMMEs.

21. Tshumisano case studiesCompany contracted – [none : quotes too high, will consider company used for Godisa or Assistant Manager - Eddie Makgoka]Quotes received from : New Africa Publication --R98k Morokoro -- R105kStations to be involved: AllReport expected: February2003 DST