SACCI Convention 2013, Productivity SA

Productivity SA

SACCI Convention 2013

Vision

Our vision is to lead and inspire a competitive and productive South Africa.

Mission

To improve productivity by advising, implementing, monitoring & evaluating solutions aimed at South Africa”s competitiveness

Stages of interventions:

Emerging

Stable

ICU

Productive capacity building SMME Programme:

Business start-up training, partnership with SETA, funding by DTI

Business improvement workshop

Coaching and after-care programme, incubation projects

October is the month of productivity in South Africa

Customised capacity building approach - SMME

Scoping - business analyst measuring

Determine baseline

Design proposal/indicate cost sharing/benefits

Sign agreement/MOU/implementation plan

Phased approach/early warning methodology

Showcase outcome/lessons learned

Partnerships are key, cooperative developments

Schools programme:

Principal training awareness

Productivity awareness & advocacy

SACCI Convention 2013, A new take on tech in the SME Journey, Vodacom

A new take on tech in the SME Journey

Vodacom Business

SACCI Convention 2013#sacci2013

Concerns on education

Focus on SME by Vodacom

1. Moving with the times

Running a small business is no easy fate

Business a few years ago was easier

Now clients become more sophisticated, need for robust ICT solutions. One size doesn't fit all

Each business has different IT needs

2. Taking on the journey together

Analogue to digital

Buzzword now is cloud computing

Voice messaging

SMEs look for partners to develop and implement technology, Vidacom vie to become virtual CIO to small businesses

23% people use own device to work

32% of people routinely check email before going to bed

SME connectivity: First Mobile PABX, virtual switchboard, mobile and fixed convergence

Vodacom One Net Express

011 seen as bigger business

SME transformation:

voice

mobile email and mobile applications

data

fixed solutions

convergence 

unified telecommunications

cloud - getting solutions from the cloud

MS office 365 solutions, SAP

Vodacom Business Product stack:

Converged comms

Machine 2 Machine

3. Evolving with the SME environment

SME starter

SME Business Progressor

SME Business Accelerator

Business applications: CRM ERP, Fin, HR

SACCI Convention 2013, Make Business Growth Happen, Nedbank

Make Business Growth Happen

Adrian Dubru Nedbank

adriandub@nedbank.co.za

Tel 011 294 0050

simplybiz.co.za

Focus on:

start-up business

franchises

Profesional entities

Established businesses

Challenges faced by entrepreneurs:

Access to markets

Financial acumen

Business formalisation - close to 1m SMEs in South Africa, but most not in formal sector - to run business finance separate from personal finance

Access to support services

Lack of collateral

Business constraints:

Crime and corruption 47%!!!

Fear of failure 38%

Electricity issues 15%

Access to finance 7%

Inadequate skilled labour 6%

Labour regulations 5%

Nedbank's approach:

The centre as your business

Bank and Transact

Finance your business

Invest and protect

Nedbank's philosophy

A focused client driven approach

We understand the unique challenges

A credit philosophy aligned to your focus

Service efficiency and excellence

Small Business Friday 6 Sep 2013 - focusing and supporting local businesses

It's my biz flighted on eTV, creating awareness

Mobile app to help people find businesses on the map, simply register business on simplybiz.co.za, don't have to be a nedbank business client

PocketPOS app on mobile device, need cellphone signal, enabling e-commerce, process transactions while moving - card transactions

Finance options:

Short term - working capital, debtors, stock, overdraft facility, debtor finance, guarantees

Medium term:

• Fixtures and fitting
• Renovations of premises

Long term:

• Property finance

SACCI Convention 2013, Supplier Management by Ntabiseng Dube, ABB

Supplier Management by Ntabiseng Dube, ABB

SACCI Convention 2013

ABB Quality Policy

ABB an electrical engineering company based in Zurich. ABB SA 80% owned by ABB Group and 20% by Wiphold

Supplier Process:

1. Supplier identification
2. Qualification - company management, sustainability, product / process design, operational excellence, continuous improvement, costs. If score is above 50%, put on a development programme; if 80%, then onboard
3. Onboarding - onboarding form to complete, mandatory info: BBBEE, tax clearance, bank details, company reg.
4. Performance evaluation: to evaluate suppliers, to supply to ABB around the world.
5. Classification - FLOP 10 worst of the worst, cost of poor quality (COPQ)
6. Development, or de-sourcing

Advanced Supply Chain Collaboration (ASCC)

Opportunities to building a strategic partnership:

turn key solutions

Leveraging

Neels de Jager: Country Supply Chain Manager

neels.de_jager@za.abb.com

Tel: 010 202 6066

ABB has lots of programmes, serving Southern and Central Africa

Solar, green projects

Education, FET colleges, take students to premises to expose them to technology, even working with lecturers to impart the right knowledge

SACCI Convention 2013 - Neotel and SME development

Neotel and SME development

SACCI Convention 2013

SA economy R1.6 trillion

SME account for 34% of SOuth Africa's GDP

The internet economy: a 10% increase in internet penetration leads to a 1.3% increase in GDP

Neotel's contribution:

Metropolitan networks 8500km

National long distance 15,000km

Fibre, Wimax, LTE in Gauteng

Neotel LTE specifically targeted for SME

Neotel academy - full SETA accreditation, 12 month programme with option for extended training

N2 education hub

SACCI Convention 2013 - Business in a New Africa Paradigm

SACCI Convention 2013

Business in a New Africa Paradigm

by Sisa Sishona, ABSA

SA spends the highest dollars on education on the Africa continent

Education a key driver, but education system has failed

Lowest results in numeracy ability in Africa

25% unemployment rate

Tax base:

15 million citizens on welfare, but only 6 million taxpayers - unsustainable

Amendments to BBBEE scorecard - 2013

Consists of 

ownership 20%

Management (Board/Exco) - consolidated with EE

Employement equity 15%

Skills development 15%

Preferential procurement 25%

Enterprise development 20%

Socio-economic development 5%

1. Compliance elements reduced from 7 to 5
1. Introduction of priority elements - ownership, skills development etc
2. EME increased to R10m turnover p.a. - default Level 4 100% contributor
3. QSE R50m
4. Fronting to be a criminal offence - 10 years imprisonment

Is BBBEE relevant?

 South African context:

poverty and unemployment

education

localisation

Europe - Africa's primary trading partner

SMEs are among the major drivers of the economy

Top 4 economies in the world share a passion for entrepreneurship: US, China, Japan and Germany

SMEs drive innovation and productivity

SMEs employ in excess of 60% labour force in SA

Africa window of opportunity:

Booming population - electricity need

Rising incomes

Rapid urbanisation

Opening trade

Demand will create itself

The Economist: the changing sentiment: The hopeless continent in May 2000, to Africa rising in Dec 2011

Does SACCI have network with other chambers of commerce in other African countries?

Intra-Africa Business: low and slow, more likely to find Kenyan products in London for example

Need to remove visa barriers and infrastructure challenges

Addressing the three key challenges of small businesses

1. Access to Markets - if have a certain market, the money will find you
2. Access to Funding - each province has its own development agency
3. Access to Business Support

Do not have an entrepreneurial culture in SA - rather study, work your way up, and become an important person one day

Banks traditionally want collaterialised lending. But many people have no assets, on the other hand also need responsible lending

People who are technically good are lousy businesspeople.

ABSA Procurement Portal: A virtual market place for SMEs and Corporates - supply chain network, to be launched in January 2014

Big businesses want to do business with SME, but can't find them

12,000 SMEs onboard at the moment, want to grow to 100,000

Access to markets, makes SMEs visible; company information

Buyers can advertise tenders

Suppliers receive notifications of new tenders by E-mail

Access to Non Traditional Funding, to bridge the gap, as government pays eventually, in 6 months

Australia has strict 30 day policy to pay SMEs

ABSA offers procurement finance

Why small businesses fail:

34% poor financial management

16% lack of management competence

12% poor book keeping and records

11% sales and marketing problems

ABSA offers access to non-financial support:

ABSA entrepreneurship centres, with access to computers, softwares and coaches

Globally, businesses are started by 3F's: families, friends and fools!!!

Venture capital or equity lending is in short supply in Africa. Stellenbosch is such incubator

The Best Domestic Asset Manager in South Africa

According to the latest Plexcrown ranking method:

Total Overall	PlexCrowns	Rank
Coronation	4.657	1
Allan Gray	4.523	2
Nedgroup Investments	4.152	3
PSG	3.698	4
Investment Solutions	3.618	5
Marriott	3.524	6
Prudential	3.508	7
Absa	3.299	8
Sanlam Investment Management	3.212	9
Old Mutual	3.200	10
Discovery	3.085	11
Investec	2.956	12
STANLIB	2.908	13
Momentum	2.651	14
Prescient	2.593	15
Oasis                             2.520  16