OVERVIEW
Development finance and SMME support Nissan’s Rosslyn plant is hosting an incubator.
A
n Incubation Centre has been launched at Nissan’s assembly plant in Rosslyn, north of Pretoria. The facility supports small enterprises through subsidised rental and mentorship and training. Management of the centre is done by the Automotive Industry Development Centre (AIDC), a subsidiary of the Gauteng Growth and Development Agency (GGDA). The Jobs Fund contributes to financing the project. The City of Johannesburg runs seven SMME hubs where office space, WiFi and advice and training are available for small business operators. About half of South Africa’s formal SMMEs operate in Gauteng and more than half are in the wholesale and retail sector and the accommodation sector. The next most popular sectors are community, social and personal services. Public procurement from township enterprises by provincial and municipal governments in Gauteng increased in 2017 to R17-billion, up from just R600-million in 2014. This expenditure has allowed many township businesses to enter the formal economy and for them to become more sustainable. Gauteng has 14 registered co-operative banking institutions serving over 16 000 member-owners, with over R100-million in savings and R150-million in assets. A partnership between the Italian co-operative movement and the Provincial Government of Gauteng aims to form consumer co-operatives in the wholesale and retail sectors. The township market of about 250 000 township households holds enormous potential for collective buying. The National Department of Small Business Development (DSBD) has several programmes to assist SMMEs and co-operatives. These include: • The Black Business Supplier Development Programme, a costsharing grant to promote competitiveness • The Co-operative Incentive Scheme, a 100% grant.
ONLINE RESOURCES Gauteng Growth and Development Agency: www.ggda.co.za National Empowerment Fund: www.nefcorp.co.za Small Enterprise Development Agency: www.seda.co.za Small Enterprise Finance Agency: www.sefa.org.za
GAUTENG BUSINESS 2019/20
52
SECTOR HIGHLIGHTS The City of Johannesburg runs seven SMME hubs. The Small Enterprise Development Agency (Seda) is a subsidiary of the DSDB and gives non-financial support to entrepreneurs through training, assistance with filling in forms, marketing and creating business plans. It helps small businesses draft applications for loan finance. Several of Seda’s technology incubators are in Gauteng. The National Gazelles is a national SMME accelerator jointly funded by Seda and the DSBD. Businesses can receive up to R1-million for training, productivity advice, business skills development and the purchase of equipment. The Industrial Development Corporation (IDC) supports SMMEs either by disbursing loans or by taking minority shares in enterprises and giving advice. The National Department of Labour has a programme to support people with disabilities, the Sheltered Employment Factories initiative. The Enterprise Investment Programme (EIP) of the National Department of Trade and Industry (dti) is another support programme. The Shanduka Black Umbrellas incubator helps entrepreneurs convert their good ideas to sustainable business practice.
