Seda Annual Performance Plan 201617 201819 Presentation to

Seda Annual Performance Plan 2016/17 – 2018/19 Presentation to the Portfolio Committee on Small Business Development 6 April 2016 1

Presentation Outline • Alignment of the Seda’s Strategic Plans with MTSF 2014 -2019. • Summary of key issues identified in the Strategic Plan of the Entity. • Seda’s Target Market • Core Assumptions underpinning Seda’s interventions. • Seda’s Strategic Pillars • Outcome-oriented goals and strategic objectives of the Entity. • Planned Programme Performance • Seda’s MTEF Allocation and Planned Expenditure • Initiatives and projects planned to deliver the strategic plan of the Entity. 2

Alignment of the Seda’s Strategic Plan with MTSF 2014 -2019. • • Seda’s 2014 – 2019 Strategic Plan and Annual Performance Plan 2016/17 – 2018/19 aim to contribute to Outcomes 4 and 7 of the MTSF 20142019, which are ‘Decent employment through inclusive growth’ and ‘Vibrant, equitable, sustainable rural communities contributing towards food security for all’. On inclusive growth, there is prioritiation of women, black, youth and people with disability to address participation levels of businesses owned by people from these demographics. Seda’s programmes are structured to drive towards the following intermediate outcomes: – Increase in turnover of assisted small enterprises – Increased number of people employed in assisted small enterprises – Reduced mortality rate of assisted small enterprises On creating sustainable rural communities, Seda has a focused programme for cooperative and communitiy private public partnership development. The branch and incubation networks also focus on this. 3

Summary of key issues identified in the Strategic Plan of the Entity. Performance environement delivery related issues: • • • Limited growth and unsustainability of new and existing small enterprises. This problem is caused by a number of factors, such as: – Inadequate and uncoordinated support services to small enterprises and cooperatives, – Economic conditions that do not favour small enterprises and cooperatives, – A low entrepreneurial culture, – Limited access to capital resources, and – An unfavourable operating environment for small enterprises and cooperatives. The effects of the problem can be seen in the limited contribution by small enterprises and cooperatives to economic growth and employment, which ultimately leads to unemployment, poverty and inequality. 4

Summary of key issues identified in the Strategic Plan of the Entity. Operating environment delivery related issues: • • • Seda has demonstrated the ability to improve the competitive and capabilities of the small enterprises it has assisted Of the approximately 84, 000 clients assisted during the 2009/10 to 2014/15 period, nearly 40% indicated an increase in the number of people employed subsequent to Seda’s interventions. The Seda Technology Programme, which is able to track the actual number of jobs created, has created 14, 686 direct and permanent jobs since incorporation into Seda in 2007. Efforts have been made on the four strategic focus areas, aimed at giving impetus to the National Development Plan. A business model built on a value proposition of ‘quality, reliable, needs based and growth oriented business support and advice’ is being implemented. 5

Seda’s Target Market 6

Core Assumptions underpinning Seda’s interventions • • Training and capacity building improves business skills and performance and results in business sustainability and growth. Provision of information leads to better decision making and results in business sustainability and growth Improved access to markets increases turnover and results in business sustainability and growth Access to technology leads to competitiveness and profitability Mentorship and coaching improves business management and reduces business mortality rate Mobilising and capacitating communities to exploit available business opportunities addresses economies of scale and results in business sustainability and growth. Incubating small enterprises improves their sustainability levels. 7

Seda’s Strategic Pillars § Vision – To be the centre of excellence for small enterprise development in South Africa. § Mission – To develop, support and promote small enterprises to ensure their growth and sustainability in coordination and partnership with other role players. § Values – Nurture, Innovation, Customer Orientation, Ethical Behaviour, Resilience (NICER). § Goal – Ensure that the small enterprise sector grows and increases its contribution to sustainable and equitable social and economic development, employment and wealth creation. 8

Outcome-oriented goals and strategic objectives of Seda. Government Outcome 4: Decent employment through economic growth Government outcome 7: Vibrant, equitable, sustainable rural communities contributing towards food security for all Ultimate Outcome Increased contribution of small enterprises and cooperatives to the SA economy, and promotion of economic growth, job creation and (Impact) equity. Intermediate Increase in turnover of assisted small enterprises and cooperatives Outcomes Increased number of people employed in assisted small enterprises and cooperatives Reduced mortality rate of assisted small enterprises and cooperatives Strategic Improve the sustainability Increase Seda delivery Maximise support offered to Outcome of small enterprises and Oriented Goals cooperatives (Outcomes) network to reach Seda clients through underserviced areas stakeholder contribution 9

Outcome-oriented goals and strategic objectives of Seda. DSBD strategic Seda strategic outcome oriented goal Goal 1: Sustainable, Goal 1: Improve the Seda Strategic Objectives Increase number of diagnostic competitive and growing sustainability of small assessment conducted on small businesses. enterprises and cooperatives Increase number of clients participating in the Supplier Development Programme Increase number of clients supported through mentorship and coaching Increase number of clients with access to local and international markets 10

Outcome-oriented goals and strategic objectives of Seda. DSBD strategic Seda strategic outcome oriented goal Goal 1: Sustainable, Goal 1: Improve the Seda Strategic Objectives • competitive and growing sustainability of small businesses. enterprises and Increase number of clients trained on national and international standards • cooperatives Increase number conformity assessment and product testing support • Increase the number of clients supported with Systems implementation • Increase number of clients accessing Technology Transfer support 11

Outcome-oriented goals and strategic objectives of Seda. DSBD strategic Seda strategic outcome oriented goal Goal 1: Sustainable, Goal 1: Improve the Seda Strategic Objectives • Increase number of clients competitive and growing sustainability of small participating in the Incubation Support small businesses. Programme enterprises and cooperatives • Increase number of Cooperatives supported • Increase number of clients participating in the BESD Programme • Increase number of clients participating in the National Gazelles Programme 12

Outcome-oriented goals and strategic objectives of Seda. DSBD strategic Seda strategic outcome oriented goal Goal 2: Sustainable Goal 2: Increase Seda small business in rural delivery network to and township reach underserviced communities. areas Seda Strategic Objectives Establish new incubators in prioritised provinces (including virtual incubators) Increase colocation points with identified partners Develop a framework for Seda branch location and resourcing 13

Outcome-oriented goals and strategic objectives of Seda. DSBD strategic Seda strategic outcome oriented goal Goal 4: Strategic Goal 3: Maximise partnerships for support offered to Seda small business development and integrated support to clients through support small businesses. stakeholder contribution. Seda Strategic Objectives Increase number of partnerships for Increase financial support sourced from partners 14

Programme 1: Enterprise Development Purpose : To provide needs based and growth oriented business support to small enterprises and cooperatives through Seda branches. • • Seda provides business related information, advice, consultancy, training and mentoring services in all areas of enterprise development. Rural enterprise development and cooperatives are supported through the Cooperatives and Community Private Partnerships Programme (CPPP). 15

Programme 1: Enterprise Development Strategic Outcome Strategic Objective Performance Oriented Goal Indicator/Measure Improve the Increase number of diagnostic Number of diagnostic sustainability of assessment conducted on small enterprises and cooperatives clients businesses Increase number of clients participating in the Supplier Development Programme Medium-Term Targets 2016/17 2017/18 2018/19 10, 830 10, 290 9, 776 225 300 125 150 Number of clients supported 150 through Supplier Development Programme Increase number of clients supported through mentorship and coaching Number of clients supported 100 through mentorship and coaching Increase number of clients supported through trade facilitation Number of clients supported 100 through trade facilitation 16

Programme 1: Enterprise Development Strategic Outcome Strategic Objective Performance Oriented Goal Indicator/Measure Medium-Term Targets 2016/17 Improve the Increase number of clients sustainability of trained on national and small enterprises international standards and cooperatives Increase number of Cooperatives supported Increase number of clients participating in the BESD Programme Number of clients trained on 563 2017/18 2018/19 591 621 national and international standards Number of Secondary marketing cooperatives supported 45 54 63 Number of Primary cooperatives established 90 90 90 Number of clients supported 1, 000 through BESD Programme Increase number of clients Number of clients supported 200 participating in the National through National Gazelles Programme 17 no longer running. 200

Programme 1: Enterprise Development Strategic Outcome Strategic Objective Performance Oriented Goal Indicator/Measure Medium-Term Targets 2016/17 2017/18 2018/19 Increase Seda Increase colocation points Number of 26 29 32 delivery network with identified partners co-location points to reach underserviced Develop a framework for Seda Developed framework for Framework Implementa areas branch location and developed tion of resourcing and framework approved. 18

Programme 2: Seda Technology Programme Purpose: To provide technology oriented interventions and incubation support to small enterprises and cooperatives. • Through Stp, Seda provides technology transfer, business and technology incubation services, as well as incentives for management systems implementation (such as ISO 9001 and OHSAS 18001), product testing and certification, as well as machinery and equipment. • Establishment of new clients under the incubation programme will be an area of focus going forward, particularly in provinces such as Limpopo, North West, Northern Cape, Free State and Western Cape. 19

Programme 2: Seda Technology Programme Strategic Outcome Strategic Objective Performance Oriented Goal Indicator/Measure Improve the sustainability of small enterprises and cooperatives Increase number of clients participating in the Incubation Support Programme Increase number conformity assessment and product testing support Number of clients Medium-Term Targets 2016/17 2017/18 2018/19 2, 069 2, 276 2, 503 151 158 165 incubated Number of clients supported through conformity assessment and product testing support 20

Programme 2: Seda Technology Programme Strategic Outcome Strategic Objective Performance Oriented Goal Indicator/Measure Improve the Increase the number of sustainability of clients supported with small enterprises Systems implementation and cooperatives Increase number of clients accessing Technology Transfer support Number of clients Medium-Term Targets 2016/17 2017/18 2018/19 36 38 40 69 72 75 56 57 58 supported with Systems implementation Number of clients supported through Technology Transfer An accessible Establish new incubators in Number of incubators delivery network prioritised provinces that includes (including virtual incubators) supported under serviced areas 21

Programme 3: Administration Purpose: To provide technology oriented interventions and incubation support to small enterprises and cooperatives. • From a support functions perspective, the organisation will focus on budgeting and allocating more funds towards direct service delivery areas, such as the provincial network and incubation. • The medium to long term goal is to get the vacancy rate to 10% and maintain it at that level, or below. 22

Programme 3: Administration Strategic Outcome Strategic Objective Performance Oriented Goal Indicator/Measure Improve the Effective and efficient sustainability of budget management small enterprises and cooperatives Maximise support offered to Seda clients through stakeholder contribution % of Seda budget Medium-Term Targets 2016/17 2017/18 2018/19 74% 75% 76% allocated to the delivery network. Effective and efficient human resource management Vacancy rate 10% 10% Increase number of partnerships for small business development and support Number of partnerships 20 25 25 Increase financial support sourced from partners Value of service cost sourced for small business development and support 10, 6 Million 10, 9 covered by partners Million 23 11, 2 Million

Seda’s MTEF Allocation and Planned Expenditure INCOME MTEF Allocation Audited figures FY 14/15 FY 15/16 FY 16/17 FY 18/19 FY 17/18 R'million Seda – DSBD from MTEF budget 498, 3 478, 2 481, 5 583, 2 617, 0 STP - DSBD from MTEF budget 132, 2 139, 2 146, 1 154, 6 126, 4 DSBD Specific projects - - External earnings 69, 1 78, 2 35, 0 12, 0 Other income 19, 6 11, 0 8, 0 5, 0 6, 0 Utilisation of accumulated surplus TOTAL INCOME 69, 5 713, 4 769, 1 663, 7 746, 3 789, 6 EXPENDITURE Compensation of employees 230, 9 272, 2 291, 3 311, 7 333, 5 Goods & Services 398, 9 483, 5 359, 0 420, 7 441, 6 Depreciation 13, 5 13, 4 13, 9 14, 5 Interest 1, 9 - TOTAL EXPENDITURE 645, 2 769, 1 663, 7 746, 3 789, 6 24

Initiatives and projects planned to deliver the strategic plan of the Entity • • • Development of a framework on the ideal sourcing (number of Business Advisors and skills) per Seda branch. Implementation of a programme to retain and upskill Business Advisors. Icreased automation of core and support processes to improve efficiency. Revival of the South African Business Technology Incubation Association (SABTIA). Continued refinement of business and operational model. Development of an informal sector programme aligned to the National Informal Business Upliftment Programme. 25