BUSINESS SUPPORT & MARKETS UNIT

Presentation to SMME CONFERENCE- SEPTEMBER 2010

Mr Philip Sithole

Presentation Outline

Purpose Structure Informal Economy Markets SMME Development Programmes Conclusion

Economics Significance of SMMEs in SA

Of a total of 906 700 firms operating in South Africa, large enterprises constitute only

6 000 in number, or 0,7 per cent of the total.

The remainder is made up of SMEs, including survivalist and micro enterprises.

Of course, in terms of value added (income generation or GDP), the large firms contribute

disproportionately to their numerical share. This, however, should in no way

distract from the organic linkages between SMEs and large firms. All large enterprises rely heavily on SMEs' performance for supply and demand reasons.

Unemployment in African cities is the highest in the world, averaging around 24%. Up to 54% of all employment is in the informal sector. This presents major challenges to urban policy and management, and in particular the

need to ensure a highly efficient support environment

Business Support & Markets Unit’s Purpose

To provide integrated business support services to existing and potential businesses in the eThekwini Municipal Area to enable them to undertake income- generating activities resulting in job creation and economic growth

To improve the management and development of the Informal Economy and Markets within the Ethekwini Municipal Area

STRUCTURE

INFORMAL ECONOMY

Provide a management service in accordance with Council and National Legislation Identify new and existing areas for management

SuccessesReduced the number of Illegal traders and increased the amount of rentals paid since 2006.Established new organisations such as Ethekwini Municipality Informal Economy Forum (EMIEF) and South African National Informal Economy Forum (SANIEF)

Informal Economy

MARKETS

Responsible for the Management of the Bulk Market located in Flower Road

Management of Retail markets and Flea Markets throughout the EMA

Reviewing the demographic profile of traders and Agents to ensure representivity

SMME PROGRAMMES

Access

to Skills

Access to Skills

SMME PROGRAMMES

Access to Markets

Access to Markets

SMME PROGRAMMES

Access to Finance

Access to Finance

Strategic Partnerships

Government resources are limited, therefore the Unit initiated a project to form partnerships to increase the level of coordination, increase the pool of resources available and to increase the value of the service offering to SMMEs

A number of partnerships have been initiated with International organisations, the Private sector and other government departments as well as tertiary institutions

We appealing to other companies, organisations and institutions to come forward to forge partnerships with the Unit as part of their Corporate Social Investment Programmes or to increase your performance on BBBEE scorecards and ratings.

Current Strategic Partnerships

Conclusion

Business Support & Markets Unit makes a significant contribution towards alleviating many of government challenges and contributing to national economic and social objectives such as

Skill Development Job creation and economic growth Poverty alleviation Human Resources development

SMMEs are finding themselves in a new and rapidly globalising context and in order to take advantage of this trend, instead of being engulfed by it, a brand new class of SMMEs must be fostered. Therefore “a world class support environment is needed!”

Achieving a world class support environment requires hard work and, private sector and political commitment!!

Thank you!!