BY
KHOSI MDLETSHE
Zulu Natal
Kwa
KwaZulu-Natal
SECTOR MATRIX
ENTERPRISE DEVELOPMENT
WORKSTREAM
Department of Economic Development and Tourism
Department of Health
Department of Transport
DoE / FET
Tourism Unit/Business Support
Department of Public Works
Department of Human Settlement
Zulu Natal
Kwa
KwaZulu-Natal
KEY PARTICIPANTS
OBJECTIVES
Zulu Natal
Kwa
KwaZulu-Natal
 To ensure facilitation, co-ordination and alignment in the
implementation of KZN BBBEE strategy.
 To share experiences, information and opportunities.
 To agree on best practices and yield high returns.
 To focus on key growth sectors and share resources as
departments.
 To identify projects where departments can work as a collective.
 To assist departments to devise strategies to implement,
strengthen and accelerate BBBEE in their respective departments.
 To devise a policy document with relevant guidelines which can be
implemented by all departments on achieving BEE in specific
sectors of the economy.
 Lack of Business Development support.
 Lack of resources.
 Insufficient Human Resource
Management skills.
 Lack of Financial Business Development
support.
Zulu Natal
Kwa
KwaZulu-Natal
KEY CHALLENGES FOR SMMES
Zulu Natal
Kwa
KwaZulu-Natal
SECTOR MATRIX – ENTERPRISE
DEVELOPMENT APPROACH
Graduating selected small Black-owned
enterprises into medium and large enterprise
status.
Ensuring that the small Black owned
enterprises have access into big tenders.
Ensure that businesses selected are BEE
compliant thus achieving transformation.
Stage Four
M&E
Research & Development
Exit Strategy
Stage Three
Graduation Process
Database Development
Joint Ventures
Funding
DTI Involvement
In Incentives
EMIA
Stage One
Business Registration
CIPPRO
Treasury
CIDB
Stage Two
Mentorship
Incubation
Supplier Development
Subcontracting
Tender Advice Training
Business Management
Training
Zulu Natal
Kwa
KwaZulu-Natal
SECTOR MATRIX ENTERPRISE DEVELOPMENT
PROCESS FLOW CHART
 This is the phase of starting up.
 Registration and sometimes the business in
not even registered
 Formalisation – registration through CIPPRO
 Compliance with SARS/CIDB/BEE
 Treasury Registration
Zulu Natal
Kwa
KwaZulu-Natal
STAGE ONE
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Mentorship programme by sector.
Tender Advice programme.
Assistance with access to finance.
Incubation programme.
Sub-contracting.
Data base development.
Zulu Natal
Kwa
KwaZulu-Natal
STAGE TWO
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THREE
Graduation Process
Joint ventures or partnerships
DTI involvement in overseas markets.
All funding available from government
and private sector
 Rotation when Awarding of Tenders.
Zulu Natal
Kwa
KwaZulu-Natal
STAGE
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Monitoring and Evaluation
Research and Development
Growth Strategy development.
Clear Exit strategy
Zulu Natal
Kwa
KwaZulu-Natal
STAGE FOUR
 Procurement is the corner stone element
on the BEE scorecard.
 Access to Finance is also key.
 BEE compliance will result in
transformation of the economic.
 Government needs to take the lead in
procuring from BEE compliant
businesses.
Zulu Natal
Kwa
KwaZulu-Natal
PROCUREMENT
RECOMMENDATIONS FOR ENTERPRISE
DEVELOPMENT
Zulu Natal
Kwa
KwaZulu-Natal
 Award tenders based on locality of
entrepreneurs.
 Apply the rotation of awarding.
 Break down big tenders into smaller parts
or phases.
 Set Asides.
 Involve DTI incentives.
 Joint ventures/partnerships
 Fronting is challenge.
 Funding is still a challenge for emerging
contractors.
 Industry leaders not willing to transform.
Zulu Natal
Kwa
KwaZulu-Natal
KEY CHALLENGE
 Sector focused.
 Sectors identified and of focus:
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Tourism
Construction (Women in Construction)
Agribusiness
Wood and Wood Product (Strategy Development)
Arts and Craft (produced a strategy)
Clothing and Textile (setting up Hub aimed at
Cooperatives)
 ICT – Finalising Strategy
Zulu Natal
Kwa
KwaZulu-Natal
APPROACH BY DEDT
end
Zulu Natal
Kwa
KwaZulu-Natal
THANK YOU