“Turning 8 in ten failures into 8 in ten successes”

Presentation of the GODISA Business Planand strategy for 2006/7 to the

Portfolio Committee on Science & Technology

“Turning 8 in ten failures into 8 in ten successes”

Charles WyethJayesh Ravjee

15 March 2006

Background

• Established as a Programme in DST in 2000• First centre established in 2001• Registered as a Trust in October 2003• Joint funding initiative between DST, the dti

and the EU• Staff appointed during 2004• Listed as a Schedule 3A Public Entity in June

2004• Transfer to dti and incorporation into seda

Vision

to become the Centre of Competence in the creation of platforms for

developing successful technology – based small enterprises on the African

continent

Mission

to identify, design, establish and fund platforms for the effective creation, development and support of small

enterprises

Purpose

The GODISA Trust was created for the main purpose of:

– Improving enterprise performance and productivity– enhancing technological innovation– Increasing accessibility to, and utility of, technology in

small enterprises – Enhancing enterprise profitability and growth– Reducing enterprise failure rates– Improving small enterprise competitiveness

What is incubation?

The process of providing a particular entrepreneur/SMME/ business sector with the

necessary, infrastructure, services and support to assist that specific entrepreneur/entity/business sector to

achieve agreed upon goals and outcomes

Defining Features:– The existence of clearly defined entry and exit criteria– Signed contract between incubator and incubatee

Strategic Focus Areas for 06/07

• To identify and implement effective TBCs for creating viable technology – based SMMEs

• To develop and implement a resourcing strategy for GODISA

• To assist existing TBCs to optimise delivery• To fulfil the role of Programme Management Agency for

government on the use of funds invested in the respective TBCs

• To establish GODISA as a Centre of Compentence in the technology business incubation arena

Current TBCs of the GODISA Trust

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NAME

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Soft Start TI

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Chemin TI

Bodibeng TI

Ac orn TI

Timbal i TI

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L OCAT ION

Randburg

Durban

Pretoria

Modderfontein

Port Eli zabeth

Johannes burg

Cape To wn

Nels pruit

Limpopo

eThekwini

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SSMs

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Softwa re

Biotech

Chemic al s

ICE/T (Virtual)

Medical

Flori culture

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Cons truction

STARTED

July 2001

July 2001

July 2001

Marc h 2002

April 2002

April 2002

April 2002

April 2002

April 2005

April 2005

STRATEGIC PART NERS Mintek / DME

Uni KZ N / DIT / eTh ekwini

UP, T UT & CSI R

CSI R / WI TS

NMMU / C SIR

WITS / TU T

UC T, S U, A BS A,Wesgro

AR C / Mbombela DM / UniKZNAR C / Limpopo Prov DO A

eThekwini / CI DB

TBCs to be established during 2006/7

• 3 Technology Incubators– AIDC (Automotive)– Base Metals (Metals Processing) – Platinum (Minerals/metals beneficiation)

• 1 Technology Demonstration Centre– Essential Oils (Agri - business)

• 5 Centres to be ‘incorporated’– 2 ICT Incubators to be incorporated into GODISA– 3 DTI Incubators to be incorporated into

GODISA/seda

Achievements to date…

254 Projects/SMMEs supported ’05/061605 Projects/SMMEs supported to date

176 SMMEs established ’05/06676 SMMEs established to date

850 clients indirectly supported (05/06)

T otal N o. of clie nts supporte d

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# of SMMEs Established (Q3 '05/06)

Target Actual


2004/5 83.9% Survival Rate for SMMEs

2005/6 ±85% Survival Rate for SMMEs


71% Black – owned businesses established

% B lack - O wne d SM M Es Establishe d

0

20

4060

80

100

120

Bio /L ifeSciences

IC T C hem ica ls Agri-bus ines s

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390 Direct and 819 Indirect Jobs Created (05/06)4790 jobs created to date

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100

200

300

400

500

Bio/Lif eSc ienc es

ICT Chemic als A gri-bus ines s

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T otal N o. of Jobs C re ate d

Target A c tual

Targets for 2006/7…

65 new SMMEs to be established

N umbe r of ne w SM M Es to be e stablishe d

5

28

10

8

82 4 Bio /L ife Sciences

IC T

C hem ica ls

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Sm a ll Sca le Min ing

Au tom o tive

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165 SMMEs to receive direct support

N umbe r of SM M Es to be supporte d pe r se ctor

20

50

1530

30

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IC T

C hem ica ls

Agri-bus ines s


Au tom o tive


C ons truction


340 clients to receive direct support, 440 clients to receive pre-incubation support

N umbe r of Proje cts/clie nts to be supporte d

40

120

4040

60

10 10 20Bio /L ife Sciences

IC T

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Au tom o tive


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% B lack - O wne d SM M Es to be e stablishe d

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Pro

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Contributing to Economic Development……one business at a time…

Alucia Ngobeni

Timbali Client

[PMG note: graphics not included, please email [email protected]]


A kg of unpolished rose quartz retails for R3.50/kg, whereas polished rose quartz retails for R35.50/kg


Contributing to Economic Development… …one business at a time…

Fischer Khambule: SEE South Africa

BTI Client



2 Big Mobile Applications (Pty) Ltd

Modisane Setlodi

Lucky Seuoe

Mokgatle Maesela

Softstart Client



Keryn Krause: iSlices

eGoli BIO Client

Hans Pieterson: Infantrust

ACORN Technologies Client


Relevant Budget Items (06/07)…

• R24 million committed by DST• R23.007 million committed by the dti

– An additional amount of R18 million will be transferred to GODISA/seda Technologies when the dti incubators are incorporated

– GODISA currently receives R10 million from the dti for the Industrial Centres of Excellence and Special Projects Programme (this amount could increase significantly in the new year)

• GODISA has already received R3 million from seda for the establishment of a Platinum Incubator. Similar discussions are underway with various other government departments

• Operations budget of just over R5.0 million is 9.9% of total budget• 90% of the total GODISA budget will be transferred to the centres• In 2003/4, GODISA disbursed R13 million in the following FY• GODISA has already disbursed all its funding for 2005/6• GODISA has had two completely ‘clean’ audits • Incorporation into seda?????

Thank you for your attention

Questions…?

“Turning 8 in ten failures into 8 in ten successes”

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