The Portfolio Committee on Trade & Industry NAMAC Trust Presentation to The Portfolio Committee on Trade & Industry Cape Town 22 August 2002

NAMAC Trust Who are we? A Trust established in July 1997 Department of Trade and Industry (the dti) is the custodian of the Trust Core partners are CSIR, Ntsika and NPI Funding model is 30% the dti, 30% local and provincial government, 30% donor and 10% own revenue generation Core Programmes are Manufacturing Advisory Centres (MAC) Business Referral & Information Network (BRAIN) Franchise Advice and Information Network (FRAIN) Form part of the dti Group of Institutions Form part of the COTII Sub Committee on Small Business and others Leading Implementation Agency in the Sector

National Co-coordinators Section 21’s/ Regional Centers & Satellites Vertical and Horizontal Integration Model Parliament Direction / High Level Policy Macro decisions Create right political climate the dti Strategy / Plan / Sector Policy Resources = $ Political Support High level management NAMAC / Intermediary National Co-coordinators Implementation / Co-ordination / Partner Management Set up Section 21’s / Appoint delivery staff Support to Centers and BRAIN Affilliates Implement Systems / Guide / Co-ordinate Financial control / Information hub / Monitoring & Evaluation Technical Training and Co-ordination / Custodian Section 21’s/ Regional Centers & Satellites & BRAIN Affilliates Delivery Contact with SMMEs Operational delivery Control by local and national stakeholders Co-ordinate Provincial & Local SMME Services SMME Service Delivery Jobs saved Jobs created Increase in productivity Improved Yield Management Access to relevant business information

The dti group

Our understanding of our current mandate NAMAC Trust : Our Mandate Our understanding of our current mandate from the dti is : “to carry out local institutional building to facilitate business development services for SMMEs throughout South Africa”

Vision Statement This means How does NAMAC Trust contribute Vision Statement Since NAMAC is the leading implementing and delivery agency in the SMME Support Industry, we will contribute significantly to the continuous economic growth and sustainable development of South Africa by improving the competitiveness and growth of SMMEs as a vehicle for poverty alleviation, wealth and job creation This means Through appropriate SMME support structures we will supply high quality advisory and information services to new and existing SMMEs in line with best practices globally.

SMME Support Role Players in SA BANK IDC KHULA RFI FINANCIAL ASSISTANCE BUSINESS DEVELOPMENT ASSISTANCE EXPORT CLIENT TAC NAMAC/ BRAIN/ FRAIN COORDINATE NAMAC SUPPORTING MEDIUM & SMALL BRAIN ALL SMMEs Coordinators SMME NTSIKA Coordinators LIP LED TSP MAC LBSC ESC IDZ CATALYTIC SERVICES >350 SMME SUPPORT PROGRAMMES TELKOM BIG BUS. CSIR SABS NPI UNIV. TECH TISA INSTITUTIONAL SERVICES >36 INSTITUTIONS SUPPORTING SMMEs DONORS DTI DACST DOL MIN. EN. PROV. GOVT. LOCAL GOVERNMENT SUPPORTING SMME’s DEPT.OF WELFARE

Financial Support Services Non Financial Services Key Targeted Support Services Focus Financial Support Services Non Financial Services Big Business Medium-Sized Enterprises Micro Enterprises x x x x x x x x x x x x x Informal Survivalist Very Small Enterprises Small-Sized Enterprises I D C M A C BRAIN & FRAIN Khula Ntsika Micro Lenders

NAMAC Trust : Strategic Objectives (A) Institutional Building of a National Network of MAC Centres One-stop-shops Affiliate Centres

NAMAC Trust : Strategic Objectives - continued - (B) Empowering of the above Centres Supply and implementation of : Worldclass diagnostic tools International Benchmarking Information Resources Operational and Management Systems Corporate Governance Models Opportunities to access Partners, Programmes, Centres and the dti Incentives Network Opportunities ISO 9001 in own Centres M&E and MIRS Systems Professional Consulting and Advisory Services

Economic Growth Competitiveness Job Creation Equity NAMAC Trust : Primary Contribution to the objectives of the dti Economic Growth We assist in growing SMMEs to enter the mainstream economy, and to become sustainable exporters. Competitiveness By using world-class tools and techniques, we assist SMMEs to become globally competitive. Job Creation We assist in saving existing jobs and in creating new jobs. Equity In all of the above, equity imbalances are addressed as a core priority

NAMAC Trust : Overview of Products and Services Implementation of systems, skills, techniques and know-how to serve SMMEs effectively in all areas in RSA Implementation of targeted assistance to sectors and regions, e.g. manufacturing, Franchise, etc.

NAMAC Trust : Targets to date and Actual Achievements Targets Actuals 9 Section 21 Companies (One per province) 9 11 MAC Centres – Operational 10 7 MAC Satellites 6 350 BRAIN Affiliate Centres 362 6 One-Stop-Shops 3 Develop Systems and Tools Ongoing 315 SMMEs access dti incentives 188

NAMAC Trust : Targets to date and Actual Achievements - continued - Number of Staff Target (Current compliment of 178) Actuals To date (31/07/02) Race Target : 60% Black 78% Gender Target : 60% Female 53% Training Target : 60 Staff members 62

BRAIN Affilliates in South Africa End July 2002 Mpumalanga Gauteng North West Free State KZN Northern Cape Western Cape Eastern Cape Northern province Libraries (3) MAC Offices (15) NICRO Offices (14) Chambers of Commerce (8) Prov Departments (12) Community Centres (17) Metro/Mun Sections (7) Financial Orgs (31) Independent Consult (81) Technikons/Universities (16) NTSIKA LBSC’s (23) Bus Skills Develop (44) Bus Service Centres (91) Total BRAIN Affiliates (362)

Expansion of MAC and BRAIN (National Network) Additional MACs planned : End September 2002 1 Section 21 Company (FSMAC) 1 Operational MAC Centre (Bloemfontein) Targeted BRAIN affiliates by March 2002 = 250 Actual BRAIN Afilliates by July 2002 = 362

Summary of achievements for the MAC Programme since 1997 MAC Impact Indicators Summary of achievements for the MAC Programme since 1997 (as at July 2002) SMMEs Contacted 2 926 SMMEs Worked with 1 535 Projects Awarded 2 257 Assessments Carried Out 1 531 HDI SMMEs worked with 61% Female Owned SMMEs worked with 31% Value of Projects Awarded R25 678 029 Customer Satisfaction Surveys 1 077 Success Stories 222 Jobs Sustained – Working with 32 647 Jobs Facilitated – Working with 1 283

Businesses Serviced (MAC) (End July 2002)

BRAIN Output Service Delivery Trends BRAIN Impact Indicators (End July 2002) BRAIN Output Service Delivery Trends Year Completed Target Completed Programme (2002 – 2003) Year to date to date Affiliate local business service centres 100 72 362 Train BRAIN Delivery Staff in centres 100 121 391 Aftercare at Affiliates (%) 100% 64% new

Website Statistics for July 2002 BRAIN Impact Indicators Website Statistics for July 2002 Hits on Website 181 444 Individual Visits 16 766 Average Visits per day 540 Average Pages Downloaded per day 1 745 Newsletter Subscriptions (to date) 661

Clients Serviced (BRAIN) (End July 2002)

www.frain.org.za FRAIN FRAIN was launched in January 2002 Attended world Franchising Expo week (SA, May 06 to 11) FRAIN website has 636 franchise opportunities listed FRAIN will present first Franchise Statistics at the Biz Week as part of WWSD on 30 August 2002 www.frain.org.za

Website Statistics for July 2002 FRAIN Impact Indicators Website Statistics for July 2002 Hits on Website 60 497 Individual Visits 5 285 Average Visits per day 170 Average Pages Downloaded per day 720

Other Projects Intensive Hand Holding One Stop Shops Reduction in Risk Profile Model Directorship and Corporate Governance Model Service Level Upliftment of Service Centres

Current Joint Initiatives & Interaction with Sister Institutions Project/ Partnership dti CSIR NPI Ntsika TWIB Khula SABS IDC Priv Sect SPF    TIDP IHHP   OSS DCGM RRPM Franchise IOSLLC MAC BRAIN Privateer Prg

Questions & Answers to the Minister of the dti COTII Leadership Conference on 12 – 13 August dti Mega Project NAMAC Trust (%) Centres (%) * MAC * OSS * Affil Enterprise Growth 20 25 Regional competitiveness 30 Sector Competitiveness Regulatory Environment (DCGM) - Trade 5 10 Empowerment 15

Questions & Answers to the Minister of the dti COTII Leadership Conference on 12 – 13 August - continue - Question 1 Are we aligning ourselves to have a client / stakeholder focus? Answer Yes 100% Pro-active diagnostic Outreach driven Solution Provision Independent Customer Satisfaction Surveys Success Stories

Questions & Answers to the Minister of the dti COTII Leadership Conference on 12 – 13 August - continue - Question 2 Where do we fit in the Enterprise Life Cycle? Answer Currently 85% focused unto those SMMEs that employ less than 50 employees and focus onto : Start and Operate 5% BRAIN Compete and Grow 70% MAC Export and Import 25% MAC Predominately in manufacturing metrapols 60% HDI 30% WOWM

Questions & Answers to the Minister of the dti COTII Leadership Conference on 12 – 13 August - continue - Question 3 Are we contributing to transforming the Economy? Answer Regionally yes Jobs saved Jobs created Access to Export Markets Increased Sales Reduction in Scrap rates, etc. Question 4 Are we decreasing the transaction time? Answer Have not yet addressed this!

Questions & Answers to the Minister of the dti COTII Leadership Conference on 12 – 13 August - continue - Question 5 How have you improved access for your customers? Answer We are piloting : 3 One Stop Shops 362 BRAIN Outlets Doubled number of MAC to 16 Operating Centres 8 COTII member joint projects 188 SMMEs Gain access to the dti incentives Networking sessions with local service providers

Questions & Answers to the Minister of the dti COTII Leadership Conference on 12 – 13 August - continue - Question 6 How do we address the problem that only a small number of enterprises find value in the dti’s COTII services? Answer We are actively involved in creating a national network of : Low volume high impact outlets (targeted assistance) (16 MACs) High volume low impact outlets (362 affiliates) However the challenge is to grow capacity exponentially to meet the demand side pressures as current stats show that collectively we are only serving significantly less than 1%.

Questions & Answers to the Minister of the dti COTII Leadership Conference on 12 – 13 August - continue - In Summary : NAMAC would welcome a positive challenge to integrate and co-ordinate a strategy for the improvement of service delivery through its national network and other compatible delivery mechanisms to meet this challenge in conjunction with its COTII colleagues, private sector and other stakeholders.

Today” “Making a difference in an SMME’s Life Our Passion and Commitment “Making a difference in an SMME’s Life Today”