NAMAC Trust Presentation to The Portfolio Committee on Trade & Industry Cape Town 22 August 2002.

NAMAC Trust

Presentation toThe Portfolio Committee on

Trade & Industry

Cape Town

22 August 2002

Presentation to the Portfolio Committee – MRB (21/8/2002)

NAMAC Trust

Who are we?

A Trust established in July 1997

Department of Trade and Industry (the dti) is the custodian of the Trust

Core partners are CSIR, Ntsika and NPI

Funding model is 30% the dti, 30% local and provincial government, 30% donor and 10% own revenue generation

Core Programmes are

Manufacturing Advisory Centres (MAC)

Business Referral & Information Network (BRAIN)

Franchise Advice and Information Network (FRAIN)

Form part of the dti Group of Institutions

Form part of the COTII Sub Committee on Small Business and others

Leading Implementation Agency in the Sector

Vertical and Horizontal Integration Model

Section 21’s/ Regional Centers &

Satellites& BRAIN Affilliates

DeliveryContact with SMMEsOperational deliveryControl by local and national stakeholdersCo-ordinate Provincial & Local SMME Services

NAMAC / IntermediaryNational Co-coordinators

Implementation / Co-ordination / Partner ManagementSet up Section 21’s / Appoint delivery staffSupport to Centers and BRAIN AffilliatesImplement Systems / Guide / Co-ordinateFinancial control / Information hub / Monitoring & EvaluationTechnical Training and Co-ordination / Custodian

ParliamentDirection / High Level PolicyMacro decisionsCreate right political climate

the dtiStrategy / Plan / Sector PolicyResources = $Political SupportHigh level management

SMME Service Delivery

Jobs savedJobs createdIncrease in productivityImproved Yield ManagementAccess to relevant business information

The dti group


NAMAC Trust : Our Mandate

Our understanding of our current mandatefrom the dti is :

“to carry out local institutional building to facilitate business development services for SMMEs

throughout South Africa”


How does NAMAC Trust contribute

Since NAMAC is the leading implementing and delivery agency in the SMME Support Industry, we will contribute significantly to the

continuous economic growth and sustainable development of South Africa by improving the competitiveness and growth of

SMMEs as a vehicle for poverty alleviation, wealth and job creation

This meansThrough appropriate SMME support structures we will supply

high quality advisory and information services to new and existing SMMEs in line with best practices globally.

Vision Statement

BUSINESSDEVELOPMENT

ASSISTANCE

EXPORT

CLIENT

TAC

BANK IDC

KHULARFI

FINANCIALASSISTANCE

SMME

NAMAC/BRAIN/ FRAIN

COORDINATENAMACSUPPORTINGMEDIUM &SMALL

COORDINATEBRAINSUPPORTINGALL SMMEs

CoordinatorsNTSIKA

Coordinators

LIP

LEDTSP MAC LBSC

ESC

IDZ

CATALYTIC SERVICES>350 SMME SUPPORTPROGRAMMES

TELKOMBIG BUS. CSIR SABS NPIUNIV.TECH

TISA

INSTITUTIONAL SERVICES>36 INSTITUTIONSSUPPORTING SMMEs

DONORS DTI DACST DOLMIN.EN.

PROV.GOVT.

LOCALGOVT.

GOVERNMENT SUPPORTING SMME’s

DEPT.OFWELFARE

SMME Support Role Players in SA


Key Targeted Support Services Focus

Big Business

Medium-SizedEnterprises

Micro Enterprises

x x x x x x

x x x x x x x

Informal

Survivalist

Very Small Enterprises

Small-Sized Enterprises

I D C

Khula

M A C

Ntsika

BRAIN

& FRAIN

Financial Support Services Non Financial Services

Micro Lenders


NAMAC Trust : Strategic Objectives

(A) Institutional Building of a National Network of

MAC Centres

One-stop-shops

Affiliate Centres


NAMAC Trust : Strategic Objectives

- continued -

(B) Empowering of the above CentresSupply and implementation of :

Worldclass diagnostic tools

International Benchmarking

Information Resources

Operational and Management Systems

Corporate Governance Models

Opportunities to access Partners, Programmes, Centres and the dti Incentives

Network Opportunities

ISO 9001 in own Centres

M&E and MIRS Systems

Professional Consulting and Advisory Services


NAMAC Trust : Primary Contribution to the objectives of the dti

Economic Growth

We assist in growing SMMEs to enter the mainstream economy, and to become sustainable exporters.

Competitiveness

By using world-class tools and techniques, we assist SMMEs to become globally competitive.

Job Creation

We assist in saving existing jobs and in creating new jobs.

Equity

In all of the above, equity imbalances are addressed as a core priority


NAMAC Trust : Overview of Products and Services

Implementation of systems, skills, techniques and know-how to serve SMMEs effectively in all areas in RSA

Implementation of targeted assistance to sectors and regions, e.g. manufacturing, Franchise, etc.


NAMAC Trust : Targets to date and Actual Achievements

TargetsActuals

To date (31/07/02)

9 Section 21 Companies

(One per province)

9

11 MAC Centres – Operational 10

7 MAC Satellites 6

350 BRAIN Affiliate Centres 362

6 One-Stop-Shops 3

Develop Systems and Tools Ongoing

315 SMMEs access dti incentives 188


NAMAC Trust : Targets to date and Actual Achievements

Number of Staff Target

(Current compliment of 178)

Actuals

To date (31/07/02)

Race Target : 60% Black 78%

Gender Target : 60% Female 53%

Training Target : 60 Staff members 62

- continued -

BRAIN Affilliates in South Africa

Mpumalanga

Gauteng

North West

Free State

KZN

Northern Cape

Western Cape

Eastern Cape

Northern provinceLibraries (3)MAC Offices (15)NICRO Offices (14)Chambers of Commerce

(8)Prov Departments (12)Community Centres (17)Metro/Mun Sections (7)Financial Orgs (31)Independent Consult

(81)Technikons/Universities

(16)NTSIKA LBSC’s (23)Bus Skills Develop (44)Bus Service Centres

(91)Total BRAIN Affiliates

(362)

End July 2002


Expansion of MAC and BRAIN (National Network)

Additional MACs planned :

End September 2002•1 Section 21 Company (FSMAC)

•1 Operational MAC Centre (Bloemfontein)

Targeted BRAIN affiliates by March 2002 = 250

Actual BRAIN Afilliates by July 2002 = 362

MAC Impact Indicators

SMMEs Contacted 2 926

SMMEs Worked with 1 535

Projects Awarded 2 257

Assessments Carried Out 1 531

HDI SMMEs worked with 61%

Female Owned SMMEs worked with 31%

Value of Projects Awarded R25 678 029

Customer Satisfaction Surveys 1 077

Success Stories 222

Jobs Sustained – Working with 32 647

Jobs Facilitated – Working with 1 283

Summary of achievements for the MAC Programme since 1997(as at July 2002)

Businesses Serviced (MAC) (End July 2002)

0% 10% 20% 30% 40%

1-5

11-20

50+

No

of

Em

plo

ye

es

pe

r S

MM

E W

ork

ing

Wit

h

SMME's Working With by DTI Sector

0%

5%

10%

15%

20%

25%

Projects Awarded by Category

Marketing27%

Human Resources

6%

Access to Finance

31%

Quality Systems

10%

Productivity Imprvmnt

26%

BRAIN Impact Indicators

Affiliate local business

service centres 100 72 362

Train BRAIN Delivery Staff

in centres 100 121 391

Aftercare at Affiliates (%) 100% 64% new

BRAIN Output Service Delivery Trends

YearCompleted

Target CompletedProgramme

(2002 – 2003) Year to date to date

(End July 2002)

BRAIN Impact Indicators

Hits on Website

181 444

Individual Visits

16 766

Average Visits per day

540

Average Pages Downloaded per day1 745

Newsletter Subscriptions (to date)

661

Website Statistics for July 2002

Clients Serviced (BRAIN) (End July 2002)

Clients Served

312

610

200

400

Queries Follow-ups

Queries vs Follow-ups

Provincial Distribution

Gauteng59%

LP15%

WC11%

KZN15%

Clients servedSMME vs Start-up vs Other

Start-up40%

SMME40%

Other20%

FRAIN

FRAIN was launched in January 2002

Attended world Franchising Expo week

(SA, May 06 to 11)

FRAIN website has 636 franchise opportunities listed

FRAIN will present first Franchise Statistics at the

Biz Week as part of WWSD on 30 August 2002

www.frain.org.z

a

FRAIN Impact Indicators

Hits on Website

60 497

Individual Visits

5 285

Average Visits per day

170

Average Pages Downloaded per day720

Website Statistics for July 2002


Other Projects

Intensive Hand Holding

One Stop Shops

Reduction in Risk Profile Model

Directorship and Corporate Governance Model

Service Level Upliftment of Service Centres


Current Joint Initiatives & Interaction with Sister Institutions

Project/Partnership

dti CSIR NPI Ntsika TWIB Khula SABS IDC Priv Sect

SPF

TIDP

IHHP

OSS

DCGM

RRPM

Franchise

IOSLLC

MAC

BRAIN

Privateer Prg


Questions & Answers to the Minister of the dti

COTII Leadership Conference on 12 – 13 August

dti Mega Project

NAMAC Trust(%)

Centres (%)

* MAC* OSS* Affil

Enterprise Growth 20 25

Regional competitiveness 30 25

Sector Competitiveness 30 25

Regulatory Environment (DCGM) - -

Trade 5 10

Empowerment 15 15




Question 1

Are we aligning ourselves to have a client / stakeholder focus?

Answer

Success Stories

- continue -

Yes 100%

•Pro-active diagnostic

•Outreach driven

•Solution Provision

•Independent Customer Satisfaction Surveys




Question 2

Where do we fit in the Enterprise Life Cycle?

Answer

- continue -

Currently 85% focused unto those SMMEs that employ less than

50 employees and focus onto :• Start and Operate 5% BRAIN• Compete and Grow 70% MAC• Export and Import 25% MAC

Predominately in manufacturing metrapols• 60% HDI• 30% WOWM




Question 3Are we contributing to transforming the Economy?

Answer

- continue -

Question 4Are we decreasing the transaction time?

AnswerHave not yet addressed this!

Regionally yes•Jobs saved•Jobs created•Access to Export Markets•Increased Sales•Reduction in Scrap rates, etc.




- continue -

Question 5

How have you improved access for your customers?

Answer

We are piloting :•3 One Stop Shops•362 BRAIN Outlets•Doubled number of MAC to 16 Operating Centres•8 COTII member joint projects•188 SMMEs Gain access to the dti incentives•Networking sessions with local service providers




- continue -Question 6

How do we address the problem that only a small number of

enterprises find value in the dti’s COTII services?

Answer

We are actively involved in creating a national network of :•Low volume high impact outlets (targeted assistance) (16

MACs)•High volume low impact outlets (362 affiliates)

However the challenge is to grow capacity exponentially to meet the

demand side pressures as current stats show that collectively we are

only serving significantly less than 1%.




- continue -

In Summary :

NAMAC would welcome a positive challenge to

integrate and co-ordinate a strategy for the

improvement of service delivery through its national

network and other compatible delivery mechanisms to

meet this challenge in conjunction with its COTII

colleagues, private sector and other stakeholders.


Our Passion and Commitment

“Making a difference

in an SMME’s Life

Today”

NAMAC Trust Presentation to The Portfolio Committee on Trade & Industry Cape Town 22 August 2002.

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Transcript of NAMAC Trust Presentation to The Portfolio Committee on Trade & Industry Cape Town 22 August 2002.