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REPORT BACK ON THE COORDINATION OF SUPPORT REPORT BACK ON THE COORDINATION OF SUPPORT PROVIDED TO THE ATLANTIS COMMUNITY PROVIDED TO THE ATLANTIS COMMUNITY

SIPHO ZIKODE - ACTING DEPUTY DIRECTOR GENERALSIPHO ZIKODE - ACTING DEPUTY DIRECTOR GENERALEMPOWERMENT AND ENTERPRISE DEVELOPMENT DIVISION (EEDD)EMPOWERMENT AND ENTERPRISE DEVELOPMENT DIVISION (EEDD)

DATE: 02 FEBRUARY 2010 DATE: 02 FEBRUARY 2010

REPORT BACK ON THE COORDINATION OF SUPPORT REPORT BACK ON THE COORDINATION OF SUPPORT PROVIDED TO THE ATLANTIS COMMUNITY PROVIDED TO THE ATLANTIS COMMUNITY

SIPHO ZIKODE - ACTING DEPUTY DIRECTOR GENERALSIPHO ZIKODE - ACTING DEPUTY DIRECTOR GENERALEMPOWERMENT AND ENTERPRISE DEVELOPMENT DIVISION (EEDD)EMPOWERMENT AND ENTERPRISE DEVELOPMENT DIVISION (EEDD)

DATE: 02 FEBRUARY 2010 DATE: 02 FEBRUARY 2010

PRESENTATION TO THE PORTFOLIO COMMITTEEPRESENTATION TO THE PORTFOLIO COMMITTEE

ON TRADE AND INDUSTRYON TRADE AND INDUSTRY

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Small Business Awareness Workshop: Cooperatives Act No. 14 of 2005

Funding Support & Start up Capital

The dti Business Grants and Incentive

Support

Business Development Support and

Mentorship

Process on the Registration of Enterprises

Winning Tenders: Clearing Credit and

Complying with BEE Requirements

Contents

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Small Business Awareness Workshop

As per the instruction by the Portfolio Committee, the dti coordinated the Small Business Awareness Workshop aimed at empowering the community of Atlantis;

The workshop was held on the 09th October 2009 at the Atlantis Tourism Information Centre;

CIPRO, KHULA, NEF, SAMAF, TEO and SEDA Agencies were invited to participate in the workshop with the view to provide ongoing support to the community as per the instruction given by the Portfolio Committee on Trade and Industry;

9 public officials attended the workshop representing the dti, CIPRO, KHULA, TEO, and SEDA;

Only NEF and SAMAF could not attend the workshop; Workshop was attended by 32 community members; and

The workshop dealt with concerns raised by the community members such as start-up funding, BEE qualification, cooperatives, etc.

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Cooperative Act No. 14 of 2005

Cooperative Act No. 14 of 2005: the dti’s presentation was aimed at enhancing the community’s

understanding of cooperatives. The following questions were raised and answered:

What is a cooperative?

What are the principles and values governing cooperatives?

How to form a cooperative?

How to register a cooperative?

Institutions that can assist to facilitate registration were pointed out, e.g. CIPRO and SEDA

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Funding and Start - up Capital Support

Khula: Funding Support Services

Khula’s presentation was aimed at communicating its available funding products and process of accessing them including the qualification criterion; and

Khula committed itself towards providing ongoing funding support to the community as per the application submitted

Khula committed itself to the provision of a progress report to the Portfolio Committee on the support progress made with respect to supporting the community

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The dti Business Grants & Incentive Support

The Enterprise Organisation (TEO): Grants and Incentives Support Services TEO presentation was aimed at communicating its available grants and

incentive products and process of accessing them including the qualification criterion; and

TEO committed itself towards providing ongoing grant/incentive support to the community as per the request submitted to it;

TEO committed itself to provide progress report to the Portfolio Committee on the progress made with respect to the support given to the community

Funding Support Services for Cooperatives (TEO: presentation)

Cooperative Incentives Scheme (CIS) was communicated to the community;

90:10 sharing grant aimed at providing start-up capital to cooperatives; Minimum support R10k up until R300K; and Qualification criterion for accessing the financial support provided e.g.

registered as cooperative, formulated and simplified business plan, etc.

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Business Development Support & Mentorship

Small Business Development Agency (SEDA): Mentorship and Business Development Support Services for SMMEs and Cooperatives SEDA presentation was aimed at communicating its available business

development support services including mentorship and process of accessing them including the qualification criterion; and

SEDA committed itself towards providing ongoing mentorship and other business development support services to the community as per the request submitted to it;

SEDA committed itself to provide progress report to the Portfolio Committee on the progress made with respect to the support given to the community

Khula Mentorship Support Services for SMMEs Khula also mentioned that it provides mentorship as well to SMMEs Khula committed to provide ongoing mentorship as per the request by the

community; Qualification criterion for accessing the support provided Committed itself to provide progress report to the Portfolio Committee on

the progress made with respect to the support given to the community

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Process on the Registration of Enterprises

Companies & Intellectual Property Regulation Office (CIPRO):

CIPRO presentation was aimed at communicating its available business support services such as enterprise registration;

CIPRO committed itself towards providing ongoing registration of Cooperatives & SMMEs to the community supported by SEDA and Post Office and other partners;

CIPRO committed itself to provide progress report to the Portfolio Committee on the progress made with respect to the support given to the community

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Constraints on securing tenders: Clearing Credit and Complying with

BEE Requirements Tender constraints: Community members raised two

challenges that constraint them from securing government tenders; Overcoming and Clearing Credit at the Credit Bureau Complying with Black Economic Empowerment as a tender requirement

SEDA provides free training on tendering The best way of clearing your name from the Credit Bureau is to

make arrangements to pay-off all your debts. The vetting process is a process that must be conducted when

individuals are requesting business financial assistance. People were urged to pay their debts on time to avoid the challenge.

BEE compliance was presented by the dti: Micro entities (annual turn over 300K) are exempted from complying

with BEE requirements as per the code. Do not require BEE verification certificate.

Small businesses (R300k - R5 million annual turnover) only expected to comply with four elements of the BEE requirements. Require a BEE Verification certificate, which is also cheap in terms of cost.

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Conclusion

The coordination with the Agencies for the provision of support to the community of Atlantis was carried out by the dti.

The Small Business Awareness Workshop was fruitful and the entrepreneurs undertook to visit the institutions for individual consultations and support.

Enterprise support agencies committed themselves to provide ongoing support to the entrepreneurs. Their contact details were also provided to the community.

Agencies committed themselves to provide a progress report to the Portfolio Committee on Trade and Industry as well as liaise and work closely with the Atlantis Business Forum.

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Thank you