1. SMME Development Strategy Review 02 June 2011 1

2. Economic Development Vision We envisage the Eastern Cape as a province where all her people share the benefits of sound environmental management, sustainable development and economic growth 2

3. SMME Development Vision To mainstream Small and Medium Enterprises into the economy of the province through opportunities created by the industry in order to enhance entrepreneurship and self employment. 3

4. Key Objectives To provide for the establishment of appropriate institutional support framework in the Eastern Cape for SMMEs to be mainstreamed into the provincial economy; To provide better access to existing and the development of new SMME support programmes in the Eastern Cape; 4

5. Key Objectives To create an enabling environment for SMME to thrive in the province by conducting continuous policy and strategy reviews in the Eastern Cape; To provide for better collation of information, monitoring and reporting about SMME development in the province through continuous research and knowledge management 5

6. Strategy Pillars 6 Pillars Institutional Framework Programme Design & Support Regulatory Functions & Services Monitoring & Evaluation

7. Institutional Framework Develop Capacity within DEDEA Establish a Forum for Development Finance Institutions Establish a Provincial SMME Working Group Establish an Enterprise Development Agency in the Eastern Cape Establish an Innovation Hub to enhance product development and manufacturing in the Province 7

8. Programme Design & Support Increase Supply of Financial & non- financial services Access to Markets & Industry Opportunities Skills Enhancement of SMMEs Support to the Informal Sector and Hawkers Access to SMME Information 8

9. Regulatory Functions & Services Reduce Small Business Regulatory Constraints Create Awareness Capacity Building of government officials 9

10. Monitoring & Evaluation Conducting Ongoing Research about SMMEs in the Province Align and Integrate all the District and Metro SMME Strategies with the Provincial Strategy Framework Developing Knowledge and Information about SMMEs to inform Policy and Programmes in the Province Hosting Annual Conferences, Seminars and Summits on SMME Development in the Province Monitoring and Evaluation of the Implementation of the Provincial SMME Strategy 10

11. Challenges facing the SMMEs Lack of access to funding for working capital, equipment and business expansion; Lack of access to procurement and tender opportunities from government and government institutions; Low levels of education of owners of SMMEs; Lack of required technical, business and management skills; Lack of quality of products and services and inability to deliver on time; Lack of access to relevant information for business support. Delayed payments, esp by government departments, impacting on cash flow & survival 11

12. Review Path… Draft Strategy in-ward looking No coordination of resources, services & interventions –Government –Public entities –Big business No alignment to priority sectors No capacity to monitor and evaluate trends, impact; 12

13. Review Path Role of DFIs with regards to SMME financing – leveraging on other products; Lack of data, research and knowledge about SMMEs of the province; No / limited provincial coordination –Core provincial programmes –Alignment with the cooperative development –Alignment with the LRED 13

14. FAQs Are the SMMEs that you have funded sustainable? How much has government spent on SMMEs? Where are these SMMEs? What tangible support & intervention programms exist? Accessibility? Possible incentives? Consideration of a provincial SMME Fund? 14