1. Annual Report Presentation
10 October 2007
Wawa Damane, CEO

2. Presentation Overview
Background/Introduction
seda’s National Footprint
Serving the SMME Sector
Partnerships
Major Events
Human Resources
Financial Issues
Future

3. Background Consumer spending increasing significantly
Small enterprises comprises 95% of all enterprises in SA
Contribution of SMMEs in various sectors in 2006
Agriculture %
Manufacturing 40%
Construction (rapidly expanding)
Trade (micro enterprise sector largest) 55%
Transport and communication 43%
Financial and business services 41%
Community and Personal Services 62%
Consumer spending increasing significantly

4. Strategic focus for 2006 /7
from expanding the network to effective service delivery through the existing network
from central controlled organization to decentralized, flexible and customer-oriented organization
from reliance on mono-funded approach to sustainable multi-sourcing of funds.

5. Our Vision: Our Mission:
to be the centre of excellence for small enterprise development in South Africa
Our Mission:
to develop, support an promote small enterprises to ensure their growth and sustainability

6. Highlights for 2006 /7 Significant growth by:
Assets grew from R95m to R209m
Staff complement grew from 351 to 520
Expenditure increased from R172m to R405m
National footprint increased from 27 to 39 branches, from 87 to Enterprise Information Centres, and 13 to 23 seda Technology Centres
New seda Board of Directors appointed
CFO appointed – 01/09/2006
Incorporation of sTP (seda Technology Programme)

7. Roll-out Summary [PMG Note: photo's have been removed]
Geographic spread of seda offices
2006/2007
Province
Branches
EICs
sTP Centres
Limpopo 3 11 1
Mpumalanga 5 12
Gauteng 24 6
North West 4
KZN 7 9
Free State
Eastern Cape
Northern Cape
Western Cape 8
Total 39
102 23

8. Roll-out Summary Geographic spread of seda offices 2006/2007 Target
Achieved
Provincial Offices 9 8
Branches 39
EICs
102
sTP Centres 23

9. Serving the SMME sector [PMG Note: photo's have been removed]
A total of 140,779 small enterprises assisted through branches and EICs
20,853 entrepreneurs benefited from training programmes
19,314 through branches and EIC’s
1,539 through National Programmes
783 clients assisted through Sector specific programmes on tourism, agribusiness and cooperatives support

10. Serving the SMME Sector [PMG Note: photo's have been removed]
15,117 clients assisted through the call centre
349,406 unique visits recorded on the seda web-site
98 new SMME’s established through seda Technology Programme

11. Examples of impact on enterprises
Examples of impact on enterprises [PMG Note: photo's have been removed]
Mthoko’s Internet Café
Principle Plastics
The Idea Factory

12. Sector Programmes [PMG Note: photo's have been removed]
Export readiness: ABSA International Trade Bureau (OR Tambo)

13. Sector Programmes [PMG Note: photo's have been removed]
Tourism : Crafters Training Programme

14. Partnerships
Number of international, national and regional partnerships formed in implementing joint projects.
International Partnerships (Existing)
National Small Business Industries Council (NSIC)
Brazilian Micro and Small Business Support Services (SEBRAE)
Technonet Africa
Finnish Support Programme
International Partnerships (New)
Belgium Unizo and Voka
Jica Japan
Israel Agriculture

15. Partnerships (cont) Local Partnerships
Provincial, district and local government partners
Public Institutions
CIPRO, CSIR, NEF, NML, SBAB, NPI, SUNparks, various SETA’s and Technoserve
Financial Institutions
FNB, ABSA, Standard Bank,
IDC, Khula

16. Major Events
The Tri-nations Summit in August on Small Business between India, South Africa and Brazil
[PMG Note: photo's have been removed]

17. Major Events
The International Trade Point Federation Annual General meeting
[ PMG Note: photo's have been removed]

18. “Technology an Economic Driver !”
seda Technology Programme
sTP = merger 1 April 2006
(Godisa Trust Sch 3A + National Technology Transfer Centre + Technology Advisory Centre)
“Technology an Economic Driver !”

19. The Technology Pipeline
A new
concept is generated.
The new concept is applied to
a practical problem.
The application or technology is tested, refined & validated. It may be patented or licensed.
New tech is incorporated into a new or existing product, process or service.
Development $
Commercialization
Applied Research
Basic Research
Results
Source: R Goldsmith, San Antonio Technology Accelerator
Research:
Academia = $25 Billion 8%
Feds =$75 Billion 24%
Industry =$200 Billion 68%

20. Challenges for the sTP Low rates of economic growth Weak
Low entry rates of
SMMEs into
manufacturing
sector
Poor access to
facilities for
testing &
promotion of
innovator's ideas
High failure rates
of start-up SMMEs
Poor technology
support to SMMEs
Outdated
technologies
employed by
SMMEs
Low rates of
economic
growth
Weak
competitiveness
on global
markets
Insufficient
levels of value
added in
industry
Low levels of
productivity
Insufficient rate
of technological
innovation
High unemployment
& poverty particularly amongst
previously disadvantaged
groups
Challenges to be addressed
by centres
by outcome of activities
Challenges to be addressed by
longer term impact of programme

21. STP, through its centres, will therefore seek to address the following issues:
Enhancing technological and technical innovation
Replacing outdated technology used by many small enterprises
Facilitating access to technology and technical support for SMMEs
Addressing the low entry rates of small enterprises into the productive, value- added sectors of the economy
Facilitating access to facilities for the testing and promotion of innovative, ‘technological’ ideas

22. Incubation Highlights
Centres Increase from 13 to 23
Turnover of SMMEs 162% higher to R million
Survival rate of SMMEs up 90%
Team sTP
Integrated & holistic support package for SMMEs from Government
Turning 8 in 10 Business Failures into 8 in 10 successes

23. Economic Impact : Incubation
708 Enterprises created ( )
2 300 Enterprises Supported
6 223 jobs created
86% Black owned businesses established

24. Economic Impact: Technology transfer
R13.5 million committed in 2006/7
22 Technology transfer interventions supported
100% Black owned businesses supported
66% Women owned businesses supported
100% second economy businesses supported
146 jobs created
All provinces supported

25. Narrow impact vs Broad focus [PMG Note: photo's have been removed]

26. Financial Review 2007 R’m 2006 R’m Total Revenue 442 200
Total Expenditure
411
172
Total assets
209 95
Total liabilities
121 53

27. Financial Review Second unqualified audit opinion
Building and further enhancing robust systems of financial management, internal control, policies and procedures and risk management.
A major systems re-engineering programme is currently underway to address certain key risk areas, focused on improved:
Financial management
Internal control
Efficiency improvements
Capacity Building

28. Human Resources review
A total of 248 positions filled during the year
Total staff of seda at the end of the year reached 520.
60% female
78% African
Training needs assessment done with the assistance from the Finnish Government’s support, training plan to be implemented over the coming years
Performance management system developed

29. Human Resources review
Total staff complement - 520

30. Key challenges Outreach Budgetary constraints Skill levels
High expectations
Coordination of effort

31. Future Enhance partnerships for better delivery
Enhance the skills and knowledge of our staff to effectively deliver the services
Focus on productive capacity building for small enterprises

32. Building entrepreneurs [PMG Note: photo's have been removed]

33. Thank you