Session 2: Programme of Action

Session 2: Programme of Action

The why Services SETA rationale High Unemployment Rates Entrepreneurship = viable vehicle for higher rate of employment Entrepreneurship promotes real empowerment Opportunity for new jobs not just replacement Skills Development Mandate New Venture Creation, Small Business Development and Business Advisory qualifications fall under scope of Services SETA Demand across all economic sectors Many other Services SETA qualifications also relevant to SMMEs Nature of Services Sector High opportunities for entrepreneurial activity Laundry services, market research, recruitment, event management, hairdressing, beauty treatment, funeral services and real estate, amongst others

The how Services SETA process Extensive Research Comprehensive Consultation In-depth Analysis Expert Committee Over nine months January to Engaged over 200 individuals Comprehensive and Established Board Committee September 2017 from over 100 entities segmented problem analysis of Experts Conducted in-depth literature Conducted an interseta of different categories of Comprises diverse interests review dialogue and expert think entrepreneurs and enterprises and expertise across all Looked at successes and tank Supply and demand mapping categories of entrepreneurs failures of other initiatives Supported ICBA 2017 Alignment of possible many are entrepreneurs Considered impact in terms of attended by over 360 solutions to identified themselves new enterprises, revenue and business advisors and problems Contracted two business job growth ecosystem stakeholders development experts to support solution development Seven months to produce conceptual framework

The insight what we have learnt Entrepreneur in Context Narrow definition: high growth, high risk, high innovation Wider definition: self employed, new business, expanded existing business by individual or team, and established business Need combination of high potential high value as well as micro lifestyle growing businesses Entrepreneurs Needs Differ Stages of business life cycle Sizes and locations Years in operation Sectors and natures Levels of intensity human, social, intellectual and financial Types ccommercial (B2B, B2G, B2C), social, cooperative, franchise, joint venture Cooperatives enhance value Economies of scale reduce input, operations and distribution costs Facilitate existing businesses within the same value chain to enhance growth New approaches to governance and ownership emerging Skills Gap Skills and competencies form the foundation of: Access to Information Access to Markets Access to Finance Practical Learning Balance formal and informal learning Entrepreneurs want observation, action, applied, interactive, mentored and peer learning to grow their businesses Entrepreneurs want snippets of information in short format, preferably video

The picture envisaged future Programme of Action Comprises of 9 to be designed as content, products and services VIRTUAL and PHYSICAL Division Established Entrepreneurship and Cooperative Development Division within Services SETA Budget Approved for Human Resources and intervention design and testing Next Steps Design, testing and implementation Consultants & Engagement Expert consultants to be contracted for design. Ongoing consultation with stakeholders planned Institute Building ECDI in Midrand +/- 2 years to complete Core Partner PSET (Post School Education and Training) partner to be determined National Scope Content, products and services applicable across sectors Sustainability Sourcing funding and revenue generation will ensure sustainability Innovation Individual components of Programme of Action not new but innovation lies in approach

The model purpose and approach Purpose and Goals Enhance Ecosystem and Empower Entrepreneurs Partner & Collaborate Core, Intervention and Component Partners to be established Transformational Imperatives Black, Youth, Women, Rural, Disabled Entrepreneurs Strategic Alignment Township Revitalisation, Rural Development and Cooperative Development Model Similar to SETAs, ECDI to fund, facilitate, promote quality PLUS refer as primary intermediary Value & Reach Through 500 intermediaries and providers we reach 1,000s Through technology WE REACH 1,000,000s

The medium access to technology SOUTH AFRICAN POPULATION OF 55 MILLION DIVERSE MARKET WITH DIFFERENT LEVELS OF AFFORDABILITY AND ACCESS IBILITY MOBILE PHONE USERS 78% INTERNET USERS 52% ACTIVE SOCIAL MEDIA USERS 27% WEB TRAFFIC FROM MOBILE DEVICES 75% VISITED ONLINE STORES 45% PURCHASED A PRODUCT ONLINE 28% Source: Digital Statistics in South Africa 2017 Qwerty digital

The flow Programme of action Research and Dialogue Entrepreneurship Societies Business Advisory Services Online Ecosystem Micro Entrepreneurship Programme Skills Development Monitoring and Evaluation Business Growth Programme Startup Enterprise Villages

One Research and Dialogue Unclear national research agenda to inform policy and practice in entrepreneurship and cooperative development Insufficient knowledge production Poor quality research lacking credibility Lack of dissemination of research findings and recommendations Inadequate use to inform policy, implementation and continuous improvement Unreliable, deficient and fragmented data Lack of dialogue and sharing of best practice resulting in collective failure Mobilise stakeholders to set prioritised research agenda Build capacity to conduct research Commission research Fund research chairs to stimulate and supervise quality knowledge production Encourage exchange of practice and methodologies through communities of practice Convene conferences and seminars to disseminate content

Two Online Ecosystem No single online SAG platform for entrepreneurs and ecosystem providers No common database or dataset of new and growing businesses Multitude of platforms without critical mass Duplication of databases limits ability to quantify numbers and needs and to match supply and demand Online content often outdated Content not properly curated or specifically developed for entrepreneurs Poor online user experience, not mobile friendly Develop single integrated, interactive and intelligent SAG system National database of entrepreneurs and ecosystem providers Focus on usability and user experience Content development that is context and audience specific Easy access to information, services, tools, markets and finance Automated matching of supply and demand Available via mobile API compatible for easy integration

Three Business Advisory Services No framework of categories, levels, quality and standards for Business Advisory Services No mandatory grading or accreditation Many inexperienced and unqualified business advisors Concerns over quality and consistency Career path and progression unclear Few accredited skills development providers for business advisory qualifications Every provider has its own database of business advisors No data on the number and adequacy of supply Lack of coordination High cost of one-on-one services Develop standards framework structuring service products for different categories and levels Mobilise, communicate and advocate use Improve coordination of supply and demand by integrating online databases Automate supply and demand matchmaking Mobilise funding for standalone business advisory service products developed Develop career pathing and qualifications mapping against framework enabling occupational entry and progression Develop learning material for entry and continuing professional development Fund skills development

Four Monitoring and Evaluation Few large public datasets on the entrepreneurship ecosystem Ecosystem providers do not share data and statistics Measures and definitions are not uniform Not all programmes monitor and measure performance Baseline data not readily available Little research on reach and effectiveness of different types of interventions so impact unknown Data collection costly and inconvenient to entrepreneurs National framework and scorecard to be developed and implemented enabling real-time online measurement of both ecosystem providers and entrepreneurs performance Existing data from multiple sources to be integrated and validated Embed monitoring and evaluation into product and service tools to ensure value exchange for data and information Develop and implement ECDI intervention monitoring and evaluation framework Conduct ongoing and longitudinal research to improve impact of ECDI programme of action

Five Entrepreneurship Societies Entrepreneurial opportunity and capability low hence poor entrepreneurial culture and mindset despite improved attitudes Late identification and start struggle to find right and early support Lack of a continuous pipeline of potential entrepreneurs being referred for support Accessing networks requires enterprising individuals Problem solving skills and startup tools not freely available Need cost effective and scalable way of encouraging entrepreneurial activity Societies common at universities but need to popularise across society Societies are self-organised and self-managed by champions to help potential entrepreneurs through peer learning and network building Peer learning is a well establish concept Goal to establish thousands of societies in schools, colleges, universities, workplaces and communities Online and social media campaigns and competitions to be used to mobilise champions to form societies Registered champions will have access to online training and toolkits on how to manage societies governance, recruit members, run events and startup businesses Registration of champions and members on the online portal will create a gateway to ecosystem support

Six Micro Entrepreneurship Programme Inexperienced youth expected to generate new viable business models Entrepreneurs lack skills, experience and confidence to start and grow a business Failure rates high in low resource communities Failure rates high linked to supply-led rather than demand-led products and services and reliance on government grants and incentives Successful models exist and can be replicated at scale to increase the return of investment in skills development Identify existing viable micro enterprise models that can be replicated and packaged as a business-concepts-in-a-box Develop new business-concepts-in-a-box for demand-led products and services in rural communities and townships that can be easily replicated Objective is to identify concepts that can generate at least R4,000 per month for unemployed and low-income earners Goal is to create thousands of sustainable micro enterprises that deliver radically affordable products and services that benefit communities Develop funding model, approach and process that includes mentorship and business development support Leverage funding for implementation and scaling of successful models

Seven Business Growth Programme Low rates of high growth entrepreneurship due to few business development services (BDS) providers being successful in finding and supporting high-growth entrepreneurs No standardised package of BDS services Quality of BDS services varied and unaccredited High cost of BDS services not affordable for many entrepreneurs Some BDS providers do not track impact or publish performance data Impact reinforces further investment and spend Improve know-how, best practice and performance of BDS provision through information sharing and tools development Fund and support high quality and competent BDS providers to service thousands of high calibre, high potential and high value entrepreneurs of small and medium enterprises to increase jobs, revenue and profit Develop and implement a funding model, product, application process that includes due diligence and monitoring and evaluation Select and fund successful BDS providers monitoring implementation

Eight Startup Enterprise Villages Lack of economic opportunity and activity in poor communities Impoverished and spatially divided townships Lack of support and infrastructure for entrepreneurs in poor communities and townships costly and time consuming to source Business development services and facilities not readily available Opportunities for collaboration and co-location of services and increased cost effectiveness Establish startup enterprise villages in partnership with TVET colleges and or municipalities Fund and oversee infrastructure development Recruit mix of startups and existing businesses and incubate for one to three years Align businesses to market driven opportunities linked to common value chain e.g. event management Develop costed implementation model that provides holistic business development, skills development and shared services Three sites have already been identified

Nine Skills Development

Nine Skills Development Universities, colleges and skills development providers all offer entrepreneurship qualifications Qualifications based on NQF levels not enterprise size, type or stage Low demand for entrepreneurship qualifications amongst entrepreneurs Pre-assessment screening and testing not adequately practiced Entrepreneurship education struggles to provide workplace based learning Modes of delivery do not consider practical realities of entrepreneurs Entrepreneurship in schools and PSET institutions only now being mainstreamed Few entrepreneurs have entrepreneurial, managerial and technical skills Entrepreneurs want snippets of information in short format and modular content Consume information differently and have different practical realities of space and time Develop and implement psychometric pre-assessment tools for entrepreneurial and managerial aptitude and, business staging tools to determine the skills development needs Develop and implement learning programmes, content and modes of delivery for STARTUP, GROWTH and ESTABLISHED businesses To enhance practical exposure, design and implement mentored internships providing small businesses with vital managerial and administrative services