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

2. 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

3. 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 MTSF 2014- 2019, 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

4. 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

5. 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

6. Seda’s Target Market 6

7. Core Assumptions underpinning Seda’s interventions 7 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.

8. Seda’s Strategic Pillars 8  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.

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

10. Outcome-oriented goals and strategic objectives of Seda. 10 DSBD strategic outcome oriented goal Seda strategic outcome oriented goal Seda Strategic Objectives Goal 1: Sustainable, competitive and growing small businesses. Goal 1: Improve the sustainability of small enterprises and cooperatives  Increase number of diagnostic assessment conducted on small enterprises  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

11. Outcome-oriented goals and strategic objectives of Seda. 11 DSBD strategic outcome oriented goal Seda strategic outcome oriented goal Seda Strategic Objectives Goal 1: Sustainable, competitive and growing small businesses. Goal 1: Improve the sustainability of small enterprises and cooperatives Increase number of clients trained on national and international standards 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

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

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

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

15. 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

16. Programme 1: Enterprise Development 16 Strategic Outcome Oriented Goal Strategic Objective Performance Indicator/Measure Medium-Term Targets 2016/172017/182018/19 Improve the sustainability of small enterprises and cooperatives Increase number of diagnostic assessment conducted on small enterprises Number of diagnostic assessment conducted on clients businesses 10,83010,2909,776 Increase number of clients participating in the Supplier Development Programme Number of clients supported through Supplier Development Programme 150225300 Increase number of clients supported through mentorship and coaching Number of clients supported through mentorship and coaching 100125150 Increase number of clients supported through trade facilitation Number of clients supported through trade facilitation 100125150

17. Programme 1: Enterprise Development 17 Strategic Outcome Oriented Goal Strategic Objective Performance Indicator/Measure Medium-Term Targets 2016/172017/182018/19 Improve the sustainability of small enterprises and cooperatives Increase number of clients trained on national and international standards Number of clients trained on national and international standards 563591621 Increase number of Cooperatives supported Number of Secondary marketing cooperatives supported 455463 Number of Primary cooperatives established 90 Increase number of clients participating in the BESD Programme Number of clients supported through BESD Programme 1,000 Programme no longer running. Increase number of clients participating in the National Gazelles Programme Number of clients supported through National Gazelles Programme 200

18. Programme 1: Enterprise Development 18 Strategic Outcome Oriented Goal Strategic Objective Performance Indicator/Measure Medium-Term Targets 2016/172017/182018/19 Increase Seda delivery network to reach underserviced areas Increase colocation points with identified partners Number of co-location points 262932 Develop a framework for Seda branch location and resourcing Developed framework for branch location and resourcing Framework developed and approved. Implementa tion of framework

19. 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 ISO9001 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

20. Programme 2: Seda Technology Programme 20 Strategic Outcome Oriented Goal Strategic Objective Performance Indicator/Measure Medium-Term Targets 2016/172017/182018/19 Improve the sustainability of small enterprises and cooperatives Increase number of clients participating in the Incubation Support Programme Number of clients incubated 2,0692,2762,503 Increase number conformity assessment and product testing support Number of clients supported through conformity assessment and product testing support 151158165

21. Programme 2: Seda Technology Programme 21 Strategic Outcome Oriented Goal Strategic Objective Performance Indicator/Measure Medium-Term Targets 2016/172017/182018/19 Improve the sustainability of small enterprises and cooperatives Increase the number of clients supported with Systems implementation Number of clients supported with Systems implementation 363840 Increase number of clients accessing Technology Transfer support Number of clients supported through Technology Transfer 697275 An accessible delivery network that includes under serviced areas Establish new incubators in prioritised provinces (including virtual incubators) Number of incubators supported 565758

22. 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

23. Programme 3: Administration 23 Strategic Outcome Oriented Goal Strategic Objective Performance Indicator/Measure Medium-Term Targets 2016/172017/182018/19 Improve the sustainability of small enterprises and cooperatives Effective and efficient budget management % of Seda budget allocated to the delivery network. 74%75%76% Effective and efficient human resource management Vacancy rate10% Maximise support offered to Seda clients through stakeholder contribution Increase number of partnerships for small business development and support Number of partnerships sourced for small business development and support 2025 Increase financial support sourced from partners Value of service cost covered by partners 10,6 Million 10,9 Million 11,2 Million

24. Seda’s MTEF Allocation and Planned Expenditure 24

25. 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