Small Business Development Programme 19 May 2016

Content  Introduction  Enterprise Development programme  Challenges to date  Integrated approach  Qualification for ED support  Monitoring and evaluation  Ongoing Programme planning

Introduction  PV Solar plant - Round 1 of the REIPPP programme  Plant is approx 45km outside Postmasburg  Supported 28 black owned SMMEs since May 2014, in various markets  10 are Women owned enterprises  25 new jobs created as a result the sponsorship  Enterprise Development through 20 years of operation  Integrated approach – establish a development platform  Collateral support in accessing institutional support  Grow – micro enterprises to medium, large enterprises

Enterprise Development programme Improve, capacitate existing small businesses Training and skills development Mentorship Tools and implements Collateral support Creating new businesses to meet market demand Integrated development platform Legislative and regulatory compliance Sustainability of businesses in the programme Improved business management Growth and market share Institutional support

Challenges to date  Business compliance requirements  Premises  Business Infrastructure  Sustainability  Business plan  Skills gap  Regulatory certification  Business readiness

Integrated approach  Engage institutions supporting development of SMMEs  Dept of Small Business (DoSB)  Legislation Compliance - (SEDA, DETEA)  Funding – Institutional (DTI, DoSB)  SARS  BEE certification  Active LED engagement – SMME and market  Benchmarking  Financial management – relationship banker

Qualification for ED support  Criteria - priorities  Market demand  Employment opportunities  Promote woman owned companies  Promote youth owned enterprises  Potential to access large market share  Impact on Health and Environment  Strong business ethic  Track record

Monitoring and evaluation  Ensure success of all in the programme  Growth and sustainability  Re-engineering business  Inform/formulate support interventions  Contractual commitments  Market intelligence, benchmarking  Inform future planning  Data collection and analyses  DOE reporting

Ongoing Programme Planning  Projects executed on a quarterly basis (Jan-Mar, etc)  Consider lead times  Company compliance, legislative, regulation  Obtain regulatory approvals  Security of premises, utilities, infrastructure etc  Procurement process, contract negotiation  Manufacturing of equipment  Logistics - delivery, transport etc  Installation, commissioning, handover  Training requirements  Budgetary constraints  Institutional financing

Team  ED Manager – Bansundu Maseko  Liaison Officer – Lebo Palagangwe  Implementation Agent – EDS, Janine Espin  Administration – Glynis Chetty

Employment Creation

 Use Enterprise Development programme platform  Sustainable employment  Acquisition – skilled, semi skilled, unskilled  Skills Development, Artisan Training, Certification  Tertiary institutes  Institutional support  Alignment to market  Address skills gap – ongoing

Employment Creation  Competent enterprises  Track record  Competency level  Compliance – regulatory requirements viz SHEQ  Capacity  Financial strength  Business management  Woman owned electrical company  Supplied equipment  Provided training  Financial support with upfront payment  Mentorship and management support  6 month contract – 111 employees, 39 female (35%)

Employment Creation Woman owned SMME at work

Skills Development  Skills development through formal programme  Training - specific to the solar renewables market  Mechanical structural steel assembly  Electrical installation  Civil construction and buildings  Operating construction plant/equipment  Maintenance activities  SHEQ

Skills Development  Combination of classroom and on-the-job training  SAQA accredited programme with engagement of SETAs  Students graduated with NQF level.  Majority of the 200 trainees were youth, 30% being females.  6 youth learners now permanently employed by the Operator

PV Solar industry CONSTRUCTIONOPERATION Steel fixingElectrical field technician General civil constructionModule cleaning services Electrical installationVegetation control BuildingCatering Security installationTorqing of modules SupervisionTransport Civil infrastructure maintenance

Subcontracted services

Power plant in operation