The Small Enterprise Development Agency (Seda) released its Annual Report for the 2010/2011 financial year today, 29 September 2011, at its Annual Stakeholder Forum hosted at the Midrand Conference Centre.
Seda Board Chairperson, Mr Linda Mngomezulu, revealed that the organisation has achieved and exceeded targets on 77% of its 52 planned indicators. The target was exceeded by more than 5% on 28 of the indicators, and the target was exceeded by less than 5% on 12 of the indicators. The targets were not achieved only in respect of those performance areas which were not implemented due to operational changes during the course of the year.
The organisation was also able to achieve an unqualified audit opinion from the Auditor-General for the third financial year running. The challenges raised in the previous year’s Annual Report on performance information were adequately addressed and as such there were no findings with regard to performance information.
OTHER PERFORMANCE HIGHLIGHTS
- 37% of SMME clients assisted by Seda during the year reported an increase in turnover;
- The Seda Technology Programme (Stp) established 202 new SMMEs as a result of the virtual incubation model;
- The Stp created 893 direct jobs, 2920 indirect jobs and 1492 casual jobs;
- 93% of assisted clients rated the quality of Seda’s services as satisfactory;
- 96% of surveyed clients rated Seda’s Business Advisors as good or excellent;
- 89% of surveyed clients rated Seda’s service providers as satisfactory;
- The organisation has successfully brought economically disadvantaged people into economic activity and ensured that its client base fairly represents the country’s demographics. At the end of the year, Seda’s Client Demographics stood as follows:
- Percentage of clients who are black-owned businesses – 92%,
- Percentage of clients who are women-owned businesses – 50%, and
- Percentage of clients who are youth-owned businesses – 48%;
- At the end of the financial year, Seda had 93 operational partnerships. These partnerships cover a range of mutually beneficial areas such as:
- Co-location where Seda does not have a branch,
- Capacity building of Seda practitioners through international best practice programmes,
- Business linkages for SMMEs,
- SMME support, and
- Information and knowledge sharing;
- Evidence of support from partner organisations is further seen in the R9.63 million that partners contributed towards small business development.
Towards the end of the financial year the Board gave Seda a new strategic focus for the 2011/12 financial year through which the organisation aims to help SMMEs in high growth sectors develop and make a great impact. These sectors are:
- Agriculture – focusing on agro processing and rural development;
- Services - information communication technology (ICT) and tourism; and
- Manufacturing – focusing on tooling, metals fabrication and chemicals manufacturing.
The organisation will also continue with its work on rural enterprise development and make inroads into the more sophisticated and larger small businesses, as this is where the largest employment creation potential lies.
Seda is also looking to increase the number of Technology Business Centres for business incubation run by its Seda Technology Programme (Stp). This will increase the number of small enterprises supported in the incubation programme and in turn contribute to job creation. Eighty percent of small enterprises in Seda’s incubation programme survive past the first two years of trading therefore enhancing their chances of sustainability and capacity to create jobs.
Mngomezulu explains that this new strategic focus is in line with the country’s objectives to create employment. “We are confident that as we consolidate our programmes and reach more clients with an even higher job output potential, we would have made considerable progress by the next review period in achieving the long term goal of improving the economic participation of small enterprises in our country,” says Mngomezulu.
ISSUED BY: Seda - Small Enterprise Development Agency
MEDIA ENQUIRIES TO: Lindokuhle Nkomonde – Manager: Corporate Communications and Media Relations
TEL: 012 441 1210
Date: Thursday, 29 September 2011