1. THE SMALL BUSINESS DEVELOPMENT INSTITUTE PRESENTATION ON THE OVERVIEW OF SMMEs ENVIRONMENT IN SA ON THE OCCASION OF THE ICT SMME WORKSHOP Presented by Xolani Qubeka, CEO & Founder: Small Business Development Institute(SBDI) 23 MARCH 2015

2. THE SMALL BUSINESS DEVELOPMENT INSTITUTE OUTLINE OF THE PRESENTATION Environmental Analysis Key issues confronting SMME’s & Co-ops National Development Plan Objectives NDP Declaration and Vision Key short-term interventions Enterprise development ecosystem Categorisation of SMME’s & Co-ops Concluding remarks

3. THE SMALL BUSINESS DEVELOPMENT INSTITUTE The SA SMME & Co-ops sector is disintegrated and requires OVERHAUL The lack of a strong policy and regulatory environment that provides oversight to SMME & Co-ops Development The National Small Business Act, No.2 of 1996 & Amendment Act No.29 of 2004 is regimented for perpetual small business mentality A new policy regime requires alignment with re-industrialisation objectives of the 21 st Century & Government’s localisation objectives: placing SMME & Co-ops development in the epicentre of economic development & economic growth The PPPFA and BBBEE Act as Amended compliance instruments not aligned economic development or industrialisation: alignment required The non-alignment of policy in private sector as well across 3-tier government & related SOC’s stifles accelerated economic growth: a national SMME policy master plan should be the key game changer Monopolistic, entrenched supply chain relationships prohibitive: value chain evaluation Current labour regulatory environment inhibitive ENVIRONMENTAL ANALYSIS

4. KEY ISSUES CONFRONTING SMME’S

5. NATIONAL DEVELOPMENT PLAN OBJECTIVES NDP DECLARATION ON SMME DEVELOPMENT Small and expanding firms will become more prominent, and generate the majority of new jobs created. They will also contribute to changing apartheid legacy patterns of business ownership They will be stimulated through public and private procurement, improved access to debt and equity finance, and a simplified regulatory environment

6. STRATEGIC GOALS KEY SHORT-TERM INTERVENTIONS Stabilize and upscale existing businesses Strong monitoring & evaluation of intervention for continuous improvement & IMPACT Centralise all public sector initiatives and funding under SBD Creation of a dedicated procurement system for SMME’s & CO-OPS Raise economic activities in spatial and underserved areas Simplify and streamline business registration processes Establishment of One-Stop shops Alignment of Regulation Raising levels of Entrepreneurship Establish Centers of Excellence Development of an enterprise development ecosystem!

7. PROPOSED ECOSYSTEM

9. CATEGORISATION OF SMME’S & CO-OPS

10. CONCLUDING REMARKS The SBD as a champion and catalyst for changing the game should be allocated appropriate resources Coordinated grants & incentive schemes to be aligned to the ecosystem Public & private sector enterprise & supplier develop initiatives should be aligned for maximum impact Mentorship, skills development & training initiatives should be aligned to high impact projects Starting & doing business in SA should be FUN A National SMME Policy Master Plan should integrate both private & pubic sector economic development as an integrated inclusive growth imperative CONCLUDING REMARKS