Western Cape Business 2018 edition

OVERVIEW Development

OVERVIEW Development finance and SMME support Opportunities abound for entrepreneurs. There are many private and state initiatives to support entrepreneurs. In the Western Cape, the annual SMME Opportunity Roadshow showcases opportunities, allows for relevant networking and guides small businesses on how to get their products and services into the mainstream of the economy. The Roadshow (shown in the photograph) is also held in Port Elizabeth, Durban and Johannesburg and is supported by the Department of Small Business Development. The Philippi Village Container Walk houses key-cutters, building material suppliers, hairdressers and clothes shops. With the backing of the IDC, the two-storey creations house retail shops on the bottom floor and offices on the top floor. Several NGOs have a presence and training is available for entrepreneurs. Philippi Village is a joint venture between Business Activator and the Bertha Foundation, a global philanthropic foundation. The Premier’s Entrepreneurship Recognition Awards (PERA) for the Western Cape entered its fifth year in 2017. Premier Helen Zille said at the 2016 awards that entrepreneurs employ 500 000 people in the province which is why the provincial government had supported 35 000 small businesses since 2009. Among the winners in 2016 were Auto Magneto, Pure Good Food, Doring Bay Abalone and Shonaquip. Co-sponsors of the event are Absa, Business Partners Limited, Ackerman Pick n Pay Foundation and Deloitte. Cape Gateway, the website of the Western Cape government, lists 50 SMME support organisations in the province. These range from the provincial trade and investment promotion agency, Wesgro, to smaller community institutions and business initiatives. Several industry bodies also exist to assist SMMEs in sectors such as clothing and textiles, arts and crafts, and boatbuilding, as well as training centres in areas identified as having high unemployment and skills shortages. The National Department of Small Business Development (DSBD) has several programmes to assist SMMEs and co-operatives. These include: • The Black Business Supplier Development Programme, a costsharing grant to promote competitiveness • The Co-operative Incentive Scheme, a 100% grant. The Small Enterprise Development Agency (Seda) is an agency of the DSBD and gives non-financial support to entrepreneurs through training, assistance with filling in forms, marketing and creating SECTOR INSIGHT A Seda Rapid Incubator has opened at False Bay TVET College. • The AHI has rebranded as the Small Business Institute. business plans. It helps small businesses draft applications for loan finance. Seda has established a Rapid Incubator in partnership with the Centre for Entrepreneurship (CFE) at False Bay TVET College, Westlake Campus. Intended to encourage TVET graduates to start their own businesses, the focus is on metal fabrication and furniture making. The Rapid Incubation Programme encourages innovative thinking and promotes students, entrepreneurs and potential clients to interact. Learning how to commercialise products and services is a key element of the course. Business Partners Limited is described by Seda as “one of the more successful SMME support organisations”. With a head office in central Cape Town, Business Partners is an unlisted company that offers loans, mentorship, consulting and business support. The National Gazelles is a national WESTERN CAPE BUSINESS 2018 110

OVERVIEW SMME accelerator jointly funded by Seda and the DSBD. The aim is to identify and support small businesses with growth potential across priority sectors aligned with the National Development Plan and Seda’s SMME strategy. Businesses can receive up to R1- million for training, productivity advice, business skills development and the purchase of equipment. The Industrial Development Corporation (IDC) is a strong supporter of SMMEs either by disbursing loans or by taking minority shares in enterprises and giving advice. The Masisizane Fund offers loan financing at good rates and training through its Business Accelerator programme. As a non-profit initiative of the Old Mutual Group, the fund focusses on the cash flow of potential businesses rather than insisting on security in the form of property or something similar. All the major banks have SMME offerings. Standard Bank’s Community Investment Fund (CIF) initiative extends loans to informal businesses. The CIF has distributed more than R7-million to more than 630 businesses through its six funds in three provinces. Nedbank has an enterprise-development product that supports businesses with a turnover up to R35-million with at least 25% black ownership. The Shanduka Black Umbrellas incubator helps entrepreneurs convert their good ideas to sustainable business practice. The Afrikaansehandelsinstituut (AHI) has rebranded as the Small Business Institute. Representing over 100 chambers, the SBI is a member of Business Unity South Africa. The National Small Business Chamber (NSBC) has a base of over 125 000 SMEs and 50 big brands as partners. A member-based organisation that offers benefits, the NSBC runs surveys and hosts expos, networking events and awards functions. ONLINE RESOURCES Cape Gateway: www.capegateway.gov.za Development Bank of Southern Africa: www.dbsa.org Industrial Development Corporation: www.idc.co.za National Small Business Chamber: www.nsbc.org.za PERA: www.wcpremiersawards.co.za Small Enterprise Development Agency: www.seda.co.za Small Enterprise Finance Agency: www.sefa.org.za SMME Opportunity Roadshow: www.smmesa.co.za 111 WESTERN CAPE BUSINESS 2018