1. ©BANKSETA 2008 ENABLING SKILLS DEVELOPMENT IN THE BANKING SECTOR BANKSETA SME SERVICES AFRICA SMME CONFERENCE 15 September 2009

2. Operating environment ©BANKSETA 2008

3. Operating environment: Finmark 8% of all small business owners in Gauteng are non-SA citizens – 70% male, 78% informal, 2 in 10 will employ other people, more negative outlook on life Majority of small business customers are private individuals (96%) Largest problem across the board - finding capital to start business; more problems in higher tiers linked to creating awareness of and registering the business, finding premises. Income tax + VAT regulations most troublesome due to compliance costs Majority (69%) are home-based, except and or no fixed location 41% of small business owners are unbanked Approximately 7 in 10 business owners are not aware of any organisations that provide support, back up, advice or training to small businesses. ©BANKSETA 2008

4. BANKSETA strategic priorities Finance Sector Charter Youth Development SME Development Continuous Professional Development/Life Long Learning Research and Benchmarking

5. Strategic priorities cont… The aim is to provide SME support through various initiatives and, to retain & attract organizations participating in skills development Categories of SMEs include: –Non Levy Paying (NLP) companies –Levy Paying (LP) companies There is a particular focus on Microfinance Institutions

6. Strategic priorities cont… The strategy aims to achieve SME support though: –A variety of skills development programmes to cater for different needs of SMEs –Allocation of dedicated BANKSETA funding and other resources to support SMEs –Building of partnerships with relevant organisations in order to advance SME support –Research –Marketing and communications –Strategy measurement

7. SME Support snapshot Microfinance Skills Project Training voucher scheme Lifelong learning Initiatives Building a Better Business SME Support Multimedia toolkit Mobile Learning Solution for SMEs HIV/AIDS Training support Research Stakeholder forums/Road shows New venture creation

8. Training Voucher Scheme Applications received Application s approved Vouchers Approved Vouchers used Funds Spend /R 2006 Phase 30529312641066 2,167,266 AEDOS/ NCA 247 10799931,309,530 2007 phase 3303191365 2,816,946 2008 phase 330307143614343,100,962 ©BANKSETA 2008

9. Life long learning initiatives National Credit Act 2006 and 2007 National Credit Act/Magistrate Act 2008/9 Financial Skills2007/8 Marketing: NCA2007/8 Innovation2007/8 Strategy2007/8 Tax2008/9 Measuring productivity2009/10 ©BANKSETA 2008

10. Building a Better Business Provinces reached: Mpumalanga Kwa-Zulu Natal North West Western Cape Eastern Cape Gauteng More than 40 SME companies reached ©BANKSETA 2008

11. MFI Needs Analysis Research Keys Results

12. Impact imperatives SMMEs including Microfinance play and important role in the economy through Creation of access to credit to the unbanked/un-bankable Contribution to alleviation of poverty Creation of sustainable livelihoods ‘ Not having enough money is only one part of being poor” Jonathan Morduch et al: Portfolios of the poor ©BANKSETA 2008

13. Contact details Tel: 0118059661 Fax: 0118058348 Call Centre: 0861020002 Website: www.bankseta.org.zawww.bankseta.org.za