TEP Update_TEP Chief Executive

Indaba 2016 Tourism SMME Workshop TEP Update May 2016 SUCCESSFULLY DEVELOPING ENTREPRENEURS FOR OVER A DECADE Overview o Non Profit Company o Flagship public private partnership o One of the longest standing and most successful enterprise development partners for small tourism businesses in South Africa o Our mandate is to facilitate the growth, development and sustainability of small tourism businesses o We offer a number of interventions that provide hands-on, step-by-step support and guidance to small tourism businesses Achievements (Target Delivery) for 2015-2016 SMMEs Registered and Paid 452 Enterprises Assessed (DNA) 344 Funding Contracts (BDF) 295 Individuals Trained Enterprise Mentorships 1419 84 Jobs Created by Supported SMMEs 3523 Increase in Turnover by supported SMMEs(Rm) R812m Period – April 2015 to 31 March 2016 Cumulative Impact Since Inception in 2000 o More than R550m invested in tourism SMME development o Contributed to the generation of over R7 billion o Supported the creation of over 83,000 jobs o Trained over 25,000 SMME operators and employees o Mentored over 450 small tourism businesses o Client base of over 4000 SMMEs spread across all sectors of the tourism industry Demographic Segmentation Total Size of TEP Database = 100 o Rural Enterprises = 365 (58%) o HDE Enterprises = 789 (68%) o Youth-Owned Enterprises = 540 (13%) o Women-Owned Enterprises = 910 (47%) Year Long Media Campaign Programme Areas • • • The TEP-NDT 50/50 funding partnership of more than 10 years came to an end on 31 March 2016 TEP’s programmes are now focused on three main areas: Third Party Project Management – Management of fully funded enterprise development and support projects for national, provincial, and local government departments and related entities; • Enterprise & Supplier Development Solutions – Implementation of Enterprise and Supplier Development (ESD) programmes for corporate entities in line with the amended B-BBEE codes; • Workshops & Seminars – Delivery of open-admission and issue-driven workshops and seminars to the public sector, corporates, communities, and any other interested clients Matrix of Products and Services • Research has made it abundantly clear that in order to succeed, small businesses need: – – – – • Access to information, Access to skills and advice how to manage their businesses Access to finance Access to Market To meet these needs, TEP has developed a sophisticated range of products and services that offer compelling value propositions to clients Access to Information • It is a well-known truism that knowledge is power TEP empowers entrepreneurs by providing access to the critical industry knowledge and insights they need in order to grow their businesses • TEP’s access to information tools includes Wikitourism (www.wikitourism.co.za) and Step UP (www.tep.co.za/StepUp) • In addition, TEP will be implementing a programme of issue-driven seminars and workshops periodically and throughout the country Topical, depending on the issue of the day • Research and Development – SBP Reports Access to Finance • As research shows, an inability to access loans to finance business growth and expansion has always been a major challenge for small business owners • In order to address this challenge, TEP has partnered with the Small Enterprise Finance Agency (sefa) to establish the Ikwezi Tourism Facility • Ikwezi provides business loans ranging from R10.000 to R5million at very competitive rates • Slow to start, but now in full motion Go to www.ikwezifacility.co.za for more information on Ikwezi Ikwezi – Up and Running Marketing Ikwezi Access to Finance - BDF • With the establishment of the Tourism Incentives Programme at the National Department of Tourism, and to prevent entrepreneurs from double-dipping, TEP has decided to close down its well-known small grant-making unit, the Business Development Fund (BDF), and encourage all SMMEs looking for grant funding to apply directly to the NDT • This will not only prevent double dipping, but will also allow TEP to re-deploy funding to other services and interventions Access to Market Small Tourism Businesses • • • • • Market Access Training WTM Africa Tourism Indaba Getaway Show Awareness Campaigns Indirect Tourism Businesses Market Access - Indirect Tourism Businesses The Amended B-BBEE Codes • Five Elements in Revised B-BBEE Codes of Good Practice • Creation of Enterprise & Supplier Development - a priority element which combines Preferential Procurement, Enterprise Development and Supplier Development TEP’s ESDS Model Be ne fi cia % A rie fter s ou : at Tax tsi lea Pro de st f of 51 it = su % P pp bla oi ly c n ch k o ts ain wn ed an d Supplier Diversity = Bonus Point Job Creation = Bonus Point in With TEP’s Enterprise & Supplier Development Solutions you can earn your full 40 Points for ESD ts with oin nd 0P da = ne w fit ro k o x P lac in Ta %b ter 51 y c Af at ppl 2% ries: su cia efi Enterprise Development Preferential Procurement 25 points n Be Over the past 14 years TEP has developed a database of quality empowered tourism small businesses Business analysis have been conducted to identify needs Ready for funders to invest and receive up to 15 B-BBEE Points ESD 40 Points • TEP can audit clients existing suppliers to identify developmental needs • Introduce new Black Owned suppliers to replace noncomplying suppliers • Develop existing Black Owned suppliers for increased procurement Supplier Development ESDS – Indirect Tourism Database • A carefully curated database of SMMEs in the following categories: Manufacturers of uniforms for the hospitality industry Producers of poultry and eggs Suppliers of dry goods in bulk quantities (e.g.; cereals, sugar, tea, coffee…) Producers of dairy products (e.g.; cheeses) Suppliers of fresh fruit and vegetables Suppliers of paper napkins and serviettes Suppliers of operating equipment (e.g.; cutlery, crockery, cooking utensils, etc…) Halal Catering Carpet cleaning services 10 Garden services • All SMMEs in the database are at least 51% black-owned and are spread throughout the country • Vetted and ready for supply chain integration • • A work in progress as we need to add more categories and SMMEs Go to www.tep.co.za/esds to sign up ESDS Partners ESDS Partners – cont Public Sector Partners (3rd Party Projects) Access to Value Added Services •Benefits of membership in TEP extend beyond access to the products and services described n previous slides •Value adding services sourced from industry partners •TEP’s strategy is to always be on the lookout for opportunities to develop strategic partnerships that will allow our SMMEs to access essential products and services at discounted rates, on the principles of volume and economies of scale •Examples of value added services created by TEP for its members include the recently concluded agreements with Grant Thornton Capital to provide financial and risk management training and solutions; •Mango Juice, the inflight magazine of Mango Airlines, to provide advertising space for TEP’s SMMEs In Conclusion… MOBILISING INVESTOR FUNDING TO FACILITATE INCLUSIVE GROWTH AND TRANSFORMATION THROUGH ENTERPRISE AND SUPPLIER DEVELOPMENT AND SUPPORT Thank You TEP.CO.ZA 011 880 3790 info@tep.co.za STAND DEC 1D37 ... Trained Enterprise Mentorships 14 19 84 Jobs Created by Supported SMMEs 3523 Increase in Turnover by supported SMMEs(Rm) R 812 m Period – April 2 015 to 31 March 2 016 Cumulative Impact Since Inception... Year Long Media Campaign Programme Areas • • • The TEP- NDT 50/50 funding partnership of more than 10 years came to an end on 31 March 2 016 TEP s programmes are now focused on three main areas:... Segmentation Total Size of TEP Database = 10 0 o Rural Enterprises = 365 (58%) o HDE Enterprises = 789 (68%) o Youth-Owned Enterprises = 540 (13 %) o Women-Owned Enterprises = 910 (47%) Year Long Media