Interaction between Seda and other small-business organisations as forerunner to integrated service delivery

Fortuin, Christiaan Jacobus (2008-03)

Thesis (MDF (Development Finance))--Stellenbosch University, 2008.

Thesis

ENGLISH ABSTRACT: The need for Small, Micro and Medium Enterprise (SMME) growth in South Africa is beyond question. Government sees SMMEs as an important vehicle to boost the economy of the country because of the contribution they make to job creation. According to recent estimates by the Department of Trade and Industry (DTI), small businesses represent 98% of the total number of registered firms, employ 55% of the country’s labour force and account for 35% of GDP. Unfortunately South Africa has a low survival rate among start-up businesses compared to other developing economies. Some believe that the reason for the failure of government programmes to support small businesses is due to poor delivery. This is one of the key issues to be addressed by all business support players. The key to success is to pursue a private sector led approach where experienced business advisors and mentors can add value to the businesses of customers. The research focuses solely on support organisations within the Siyanda region. The findings support the notion that Seda, as government’s small business support vehicle, will have to utilise support organisations more in order to make a success of its mandate. The investigation has identified some recommendations that may lead to an improvement in the current environment. The first approach is to ensure that people who render small business support have business experience and understand small enterprises. Secondly, to ensure that sector programmes are focused on a particular objective and that the overall strategy remains integrated and focused. In order to achieve this, the private sector should participate and share the costs. In recommending measures to improve the promotion of small business support at a local level, it is important to focus on what works best and that is ultimately privatesector organisations.

AFRIKAANSE OPSOMMING: Die behoefte aan groei van Klein, Mikro en Medium Ondernemings (SMMEs) in Suid-Afrika word nie debateer nie. Die regering sien SMMEs as ‘n belangrike medium om die land se ekonomie ‘n hupstoot te gee vanweë die bydrae wat hulle tot werkskeppping maak. Volgens onlangse skattings van die Departement van Handel en Nywerheid, verteenwoordig kleinsake-ondernemings 98% van die totale aantal geregistreerde ondernemings en verskaf hulle werk aan 55% van die land se arbeidsmag, en dra hulle by tot 35% van die bruto binnelandse produk. Ongelukkig het Suid-Afrika ‘n lae oorlewingsyfer onder nuwe besighede in vergelyking met ander ontwikkelende ekonomieë. Sommige mense glo die rede vir die mislukkig van regeringsprogramme wat kleinsake-ondernemings ondersteun, is swak dienslewering. Hierdie is een van die sleutelkwessies wat aangespreek behoort te word deur alle sake-ondersteuningspartye. Die sleutel tot sukses is om ‘n privaatsektor-gedrewe aanslag te volg waar ervare sake-adviseurs en -mentors waarde kan toevoeg tot kliënte se besighede. Die ondersoek het sekere aanbevelings geidentifiseer wat mag lei tot ‘n verbetering van die huidige omstandighede. Die eerste stap is om te verseker dat mense wat kleinsake-ondersteuning bied wel sake-ondervinding het en die kleinsakebedryf verstaan. Tweedens, om te verseker dat die sektor se programme wel gefokus is op ‘n spesifieke doelwit en dat die oorkoepelende strategieë geïntegreerd en gefokus bly. Ten einde dit te bereik, moet die privaatsektor deelneem en die kostes deel. By die soeke na stappe om die bevordering van kleinsake op plaaslike vlak te verbeter, is dit belangrik om te kyk wat (elders) reeds geslaag het. Dit is alte dikwels stappe wat deur die privaatsektor onderneem word.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/880
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