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FACT SHEET

BASIC ACTIVITIES OF THE SMALL, MEDIUM AND MICRO ENTERPRISE (SMME)

CENTRE FOR SMALL BUSINESS PROMOTION

Khula Enterprise Finance Limited (Khula), and Ntsika Enterprise Promotion Agency (Ntsika) are the new agencies established within the institutional support framework for SMMEs.

1. Finance for SMME's provided by Khula Enterprise Finance Limited:

Programme: Credit Guarantees
Number assisted: 805 Entrepreneurs
Amount: 126 million
Women: 40%

Programme: Seed Loans
Number assisted: 27 RFIs
Amount: 30 million
Women: NA

Programme: Business Loans
Number assisted: 35 259 Entrepreneurs
Amount: 67 million
Women: 65%

The DTI is currently engaging banks in a meaningful and constructive dialogue aimed at improving access to finance for SMMEs.

2. Ntsika Enterprise Promotion Agency

Ntsika facilitates the provision of the following support programmes and services:

* A network of Local Business Service Centres (LBSCs) has been established to provide services such as business advice, counselling, training and mentorship at a local level.

* Marketing and linkages through a network of Tender Advice Centres (TACs).

* Access to technology including the establishment of Technopreneur Cocoons and Manufacturing Advisory Centres (MACs).

* Targeted assistance programs for rural women, the youth and disabled entrepreneurs.

Program or Service / Numbers assisted

1. Local Business Service Centre: 25 LBSC fully accredited
* Capacity Building of LBSCs: Capacity of 70 service providers enhanced and over 175 service providers trained
* Services delivered to SMMEs: Over 12 00 entrepreneurs provided with services in areas such as business advice, counselling, training etc

2. Markets
* Tender Advice Centres: 12Tender Advice Centres established and procurement advice booklets printed

3. Technology
* Technopreneur Cocoons: Business Cocoons established in 11 technical colleges, 160 technical college teachers trained, 432 youths have been provided with support
* Manufacturing Advisory Centres: 2 Manufacturing Advisory Centres established in East London and Durban

4. Targeted assistance
* Targeted support for rural women, youth and disabled entrepreneurs: Over 600 rural women, youth and disabled entrepreneurs provided with assistance

3. The Business Referral and Information Network (BRAIN)

To make reliable information accessible to SMMEs, DTI launched BRAIN at the beginning of this year. When in full operation it will enable aspiring entrepreneurs to access information that will give and teach them the abc's of operating a business. A website has been established and its address reads: www.brain.org.za

We will also make use of "call in" and "walk in" centres soon to be established around the country.

4. The National Small Business Act.

This Act provides the basic framework for the definition of small, medium and micro enterprises by sector. It also facilitates the establishments of a National Small Business Council. This latter will be reconstituted after it was liquidated following poor financial management. In terms of the Act there is also provision for assessing the impact of all forms of legislation or regulation on SMMEs. A regulatory review has just been completed and its results will be assessed in the coming weeks. The review covered the following areas:

* Labour
* Taxation
* Business trade
* Property
* Land ownership
* Finance
* By laws and ordinances
* Procurement

The findings and recommendations based on the review will be submitted to the Board and Parliament.

5. The Small Business Development Corporation - Now Partners for Business.

The following provides a breakdown of the achievement:-

Region: Central Region
Number of Investments: 109
Value of Investments: R38 910 000
Average Size of Investment: R356 972
Employment Opportunities Promoted: 1 737
Previously disadvantages Clients Actual 97/98: 30%
Previously disadvantages Clients Target 98/99: 40%

Region: North East Region
Number of Investments111
Value of Investments R47 030 000
Average Size of Investment R423 694
Employment Opportunities Promoted1 387
Previously disadvantages Clients Actual 97/9822,7%
Previously disadvantages Clients Target 98/9936%

Region: Western Cape Region
Number of Investments162
Value of Investments R57 720 000
Average Size of Investment R356 296
Employment Opportunities Promoted: 1 870
Previously disadvantages Clients Actual 97/98 18%
Previously disadvantages Clients Target 98/99: 35%

Region: Eastern Cape Region
Number of Investments: 86
Value of Investments: R35 360 000
Average Size of Investment: R411 163
Employment Opportunities Promoted: 1 567
Previously disadvantages Clients Actual 97/98: 119%
Previously disadvantages Clients Target 98/99: 30%

Region: KwaZulu-Natal Region
Number of Investments: 221
Value of Investments: R70 090 000
Average Size of Investment: R317 149
Employment Opportunities Promoted: 3 656
Previously disadvantages Clients Actual 97/98: 34,5%
Previously disadvantages Clients Target 98/99: 45%

Region: Free State Region
Number of Investments: 207
Value of Investments: R55 530 000
Average Size of Investment: R268 261
Employment Opportunities Promoted: 3 184
Previously disadvantages Clients Actual 97/98: 4,9%
Previously disadvantages Clients Target 98/99: 25%

Totals:
Number of Investments: 896
Value of Investments R304 640 000
Average Size of Investment R340 000
Employment Opportunities Promoted: 13 401
Previously disadvantages Clients Actual 97/98 21%
Previously disadvantages Clients Target 98/99: 36%

THE SECOND AREA OF SPECIAL FOCUS ARE THE SPACIAL DEVELOPMENT INITIATIVES (SDI'S)

This programme aims to kick-start economic growth and job creation in SA by attracting local and international investors into the country's competitive industries. Under this programme 11 local SDIs at various stages of delivery will facilitate investment projects in excess of R113 billion with the capacity to generate over 104 000 new jobs. Furthermore, there are a number of ports and airports under investigation and potential Industrial Zones (IDZs).

Five SDs have released projects into the public domain and are focused intensively on promoting these to private sector investors: the Maputo Development Corridor, the Fish River SDI, the West Coast Investment Initiative, the Wild Coast SDI and the Lubombo initiative. In these areas, elements of SDI work programmes are being backwardly integrated into relevant government line departments and existing institutions, specifically the provincial investment facilitation agencies, to ensure that capacity to attract inward investment is sustained at the local level.

An innovation in the agri-tourism SDI on the Wild Coast and Lubombo has been the delivery of sound and sustainable investment projects structured as strategic community/private partnerships through a competitive bidding process.

A second phase of SDIs is planned which moves away from the original SDI concept of scanning and scoping investment project in an area with an identified locational advantage for industry in sufficient numbers to attract significant interest from international investors. Phase 2 SDIs more closely resemble the international concept of special economic zones with their strong sectoral focus, dedicated infrastructure and specialist management. Current initiatives in Richards Bay - Empangeni, various Gauteng nodes, the Greater Algoa/Addo and the Gariep area fall into this category.

The broad methodology is increasingly being used in neighbouring countries. Trans-national SDIs at an advanced stage of delivery are the Maputo Development Corridor and the Lubombo Initiative. The new Maputo N4 and Platinum Highway routes will open up the first trans-Africa highway and a tourism-led- Coast corridor is being conceptualised to run from the port of Maputo to Walvis Bay SDI, Platinum SDI, the Gauteng SEZs, the Phalaborwa SDI and the Mozambique-SA led Maputo Development Corridor, but presents further opportunities for strategic liaison with neighbouring countries.

Within the context of SADC trade negotiations, the SDIs have been implemented in tandem with negotiations to conclude a Free Trade Area (FTA). Their implementation throughout the region, coupled with trade and investment missions led by the DTI from South Africa to SADC Member States, has resulted in substantial investments in the region which are of mutual benefit to South Africa and the recipient countries.

The Department of Trade and Industry led Business Missions to Angola, Mauritius, Mozambique, Botswana, Swaziland and Tanzania. These missions proved to be successful as evidenced by the conclusion of a number of joint-ventures. The missions provided a framework for South African business people to identify of trade and investment opportunities which offer them high returns while contributing to investment, technology transfer, employment and inputs for local production in the three SADC countries.

Coupled with the extension of the mandates of the Development Bank of Southern Africa and the Industrial Development Corporation to provide finance to the entire SADC region for the development of infrastructure and industry, these initiative have, and will continue, to play an important role in stimulating investments to SADC Member States resulting in higher growth, employment and industrial development in the recipient countries.

For further information, please call Kanyo Gqulu at 083 293 3377

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