SMALL BUSINESS HUB

smaLL BUsinEss hUB (sBh)

The 2015/2016 year concluded a full year of the existence of the SEIFSA Small Business Hub (SBH), which was launched in May 2015. A number of initiatives have been undertaken and successfully completed during the year under review.

An interesting point to note, one that emerged quite starkly during the 2015/16 year, is that it is our larger companies, those falling outside of the SBH scope, that have partnered with the Hub in various transactions or activities. Owing to the commercial nature of some of the transactions, we would not be able to mention company names but rather the activities and transactions explored.

EnTErPrisE and sUPPLiEr dEvELOPmEnT

The SBH was appointed to project-manage an Enterprise and Supplier Development program for a multinational company operating in the power transmission, power plant equipment and industrial gear box manufacturing.

This project was to the value of R450 000.00. The project was successfully completed, within the timeframes, and it seems by all indication that the SBH will be appointed in the 2016/2017 year to undertake phase two of the project at a similar value.

During the year under review, SEIFSA was also approached by two local steel mills, one requesting that we assist them in setting up an incubation hub for the suppliers in their value chain.

The other mill requested that the SBH assist in the execution of a supplier development program, through services offered by the Federation.

Lindiwe Zulu: Minister of Small Business Development, speaking at the Southern African Metals and Engineering Indaba 2016

Depart ent smaLL BUsinEE hUB

Given the turbulent environment and difficult operating environment that the metals and engineering sector finds itself, the two projects by both companies were not pursued during the period under review.

TransacTiOns

During 2015/2016, the SBH was also appointed by a multinational that manufactures processing plant, equipment, electronics and automation systems for clients in the ferrous, non-ferrous, and ferro-alloy industries. The company was exploring the opportunity of acquiring a 10% stake in a local entity that will serve as the acquiring company’s local service workshop.

SEIFSA’s SBH was appointed to find, vet and present potential target companies for the acquiring company. A number of companies were presented, with some resulting in supplier agreements, while due diligence for the purchase is concluded. SEIFSA’s SBH, through the BUSA affiliation, was represented on this task team. The task team was mandated with reviewing the following key areas;

• Review of the Small Business Act; • Enhancement of institutional efficiency; • General Support for SMME’s; • Red tape reduction; and • Procurement support.

This is an on-going Task Team wherein SEIFSA will continue engaging and participating.

Tafadzwa Chibanguza

Economist and SBH Manager

inTEracTiOn WiTh sEiFsa assOciaTiOns

During the period under review, the South African Refrigeration and Air Conditioning Contractor’s Association (SARACCA) expressed keen interest in the SBH. As a result, representatives of the SBH were invited to present the SBH to the association at its various meetings around the country.

rEviEWing ThE smaLL BUsinEss acT

During the year 2015/16, Nedlac initiated a task team comprising business, labour, government and the community constituencies to review the Small Business Act.