THE SMALL BUSINESS DEVELOPMENT INSTITUTE

SBDI VISION 2021 LAUNCH: CREATING & SUPPORTING 300 000 SMMEs & COOPS IN TOWNSHIPS AND RURAL AREAS IN 5 YEARS

A SBDI PROGRAMME-An SBDI Flagship Programme

SBDI ROLES

Solutions Provider

Matchmaker

Commercial Facilitator

Thought Leadership

Learning Champion

Catalyst

To build competitive ,

sustainable supply

chains and small-growth

orientated enterprises,

through finding ,

leveraging and

developing mutual

needs and synergies

In partnership with

corporates, OEMS, SOCs

PROBLEM STATEMENT

YOUTH UNEMPLOYMENT HAS REACHED UNDESIRABLE LEVELS:According to the “Vulnerable Groups Series 1 Report : The Social Profile of the Year (2009-2014)• Youth contributes around 36% of the population, with youth between the ages 15-34

making up approximately 70% of the population• Youth population at 19.5 million, with 83% being black nationally, except in the

Western Cape 52% being coloured• Nationally youth headed households increased by 11.2%(from 3.6 million-4 million)• Youth unemployment rate actually higher than the employed rate

• At an average of around 52% inactivity rate for young people between the ages 15-34 years

• As at 2014 more than 5 million people unemployed, with young people making up 3.4 million of unemployment

• The level of entrepreneurship amongst the youth need to be inculcated• Self-employment one of the more sustainability if South Africa is to confront and

tackle these high levels of unemployment: A NATIONAL IMPERATIVE!

SBDI’S PROPOSITION TO DSDB

The SBDI remains committed & well positioned in delivering towards the national target as per cooperation agreement concluded with DSBD

336 ; 60%140 ; 25%

85 ; 15%

Business Type

Micro Small Medium

SBDI INDUSTRIAL SUPPLIER SUBCONTRACTING AND PARTNERSHIP

EXCHANGES ( SPX’S)

The SPX is a center of

technical information ,

promotion and the

matchmaking of

capacities , processes

and production or

industrial service

specialties, bringing

together enquiries for

and offers of

subcontracting work

and outsourcing

Needs Analysis of Industrial

Sectors

Investigate supplier and contractor requirements

Formulate strategy and work plan

Contractor and

Supplier selection

Encourage and foster cooperation amongst suppliers

Explore and ascertain the availability of

resources for joint investments

Monitor subcontracting operations and provide for insight

Support SMME( BEEE) supplier development training and development

Leverage Finance throughsuitable financial

institution's namely SEDA ,

GEP,SEFA, NEF, IDC ,

commercial Banks

SBDI INDUSTRIAL SUBCONTRACTING AND PARTNERSHIP EXCHANGES ( SPX’S)

Key Players In SPX

program includes

SBDI INDUSTRIAL SUPLIER SUBCONTRACTING AND PARTNERSHIP

EXCHANGES ( SPX’S)

The Long Term Plan

• Industry Selection

• Adoption of Tier 1 to

Tier 3

R500M SUPPLIER DEVELOPMENT FUND TO DEVELOP & SUPPORT SUPPLIERS &

CONTRACTORS

The Department of Small Business Development (SBDI) to facilitate the establishment of a

Supplier Development Fund in partnership with the SBDI and a financial institutions such as

NEDBANK SEFA SEDA GEP NWDC to finance the developmental needs of emerging contractors

mainly for government departments, SOC´s and large companies. This will include all support

instruments such grants, incentives as well as loans.

Each Supplier Development Initiative (SDI) is assessed and decided upon by a Project Steering

Committee made up of the parties

Supplier Developme

nt Fund

DSBD

SOCs/

OEMs

SEFA/

NWDC

ITHALA

OTHERSSBDI

GEP

SEDA

NEDBANK

Loans

Grants

Incentive

Schemes

Technical

Support

Financial Support

Business Mentorship, Hand

holding & Technical

Assistance

Incubators

3-Tier

Gov. Depts.

STRATEGIC PILLAR CATEGORY:1

Ongoing Partnerships with Corporates and SOC's

Sector Centric Development

SMME development

Corporate & Supplier

Development

50 000 jobs

Total Revenue of R

10 Billion

Revenue Target of R 500 m per enterprise

Indirect and direct GDP impact of R 18 Billion

Development beyond

traditional economic hubs

SMME Awareness , entrepreneurship

and advocacy

3000 by 2030

STRATEGIC PILLAR 1

Wholesale & retail:

Buying & wholesaling

Grocery retail coops & family owned

Bakeries

Logistics & transport

Services:

Bulk laundry cleaning

Dry cleaning factory & depots

Business services:

Printing

Faclities MNGMT

TOURSIM

SIGNAGE

Personal Services ( Hairdresser, beautician)

Automotive repairs & motor

maintenance

Recycling & waste

management

TO FACILITATE THE CREATION, DEVELOPMENT & SCALING UP OF AT LEAST 300 000 SMALL TO MEDIUM ENTERPRISES

STRATEGIC PILLAR 2

Ongoing Partnerships with Corporates and SOC's

Sector Centric Development

SMME development

Corporate & Supplier

Development

50 000 jobs

Total Revenue of R

10 Billion

Revenue Target of R 500 m per enterprise

Indirect and direct GDP impact of R 18 Billion

Development beyond

traditional economic hubs

SMME Awareness , entrepreneurship

and advocacy

3000 by 2030

STRATEGIC PILLAR 2

Manufacturing:

Automotive & rail component manufacturing

Clothing & textile

manufacturing

Detergent products

Toilet paper & related

productsFurniture

Construction & building

implements

Agro processing

Dairy farming

TO FACILITATE THE CREATION, DEVELOPMENT & SCALING UP OF AT LEAST 3000 SMALL TO MEDIUM ENTERPRISES