Towards collaborative partnerships in ED - Serious Enterprise Development 2011

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Presented during Tshikululu Social Investments' 2011 Serious Enterprise Development workshop.

Enterprise development is a multi-faceted and complex endeavour with simple solutions. One of the greatest challenges it faces is the satisfaction of competing agendas of multiple partners, each monitoring different key performance indicators and reporting on different time-lines to different stakeholders.

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Towards collaborative partnerships in ED - Serious Enterprise Development 2011

  1. 1. Towards collaborative partnerships in Enterprise Development Connect Partner Empower Invest Rehema Isa | Managing Director | rehema.isa@fuseconsultiing.co.zaafriCAN talent, developing afriCAN enterprises, growing afriCAN economies 1
  2. 2. 1. The way we see it 2. The case for collaborative partnerships 3. About FuseafriCAN talent, developing afriCAN enterprises, growing afriCAN economies 2
  3. 3. 1 Who is is the real beneficiaryThe way we of Enterprise Development see it Support? afriCAN talent, developing afriCAN 3 enterprises, growing afriCAN economies
  4. 4. The way we see it Budgeting Reporting Period Expenditure period period4 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  5. 5. What we need to investigate The BBBEE Codes provision for 3% NPAT dedicated spending for ED & 1% NPAT for SED Solutions that develop One enterprise at a time Home Family Community5 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  6. 6. What is the problem? Company A What are the indicators that measure the real impact / success of developing Company B enterprises in the same community? Company C6 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  7. 7. 2 How do we influence andThe case for impact the quantum ofcollaborative change required whilepartnerships maintaining the quality required to do so properly? afriCAN talent, developing afriCAN 7 enterprises, growing afriCAN economies
  8. 8. What is the impact Enterprise Value Chain PRIMARY • Infrastructure • Technology Development • Human Resource A Management • Procurement Enterprise Development Outflow B Support SUPPORT Received Salaries and • Inbound Logistics wages • Technology • Outbound Logistics • Marketing & Sales C • Service recirculation • Jobs created in community • Poverty alleviation • Some related entrepreneurs8 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  9. 9. How do you counter this Enterprise Value Chain Or at least STRENGHTEN THE ENTERPRISES VALUE CHAIN PRIMARY reduce • Infrastructure • Technology Development A • Human Resource Management • Procurement Enterprise Development Outflow B Support SUPPORT Received Salaries and wages • Inbound Logistics • Technology • Outbound Logistics C • Marketing & Sales • Service Channel recirculation leakages • Jobs created in community to • Poverty alleviation communi • Some related entrepreneurs ty9 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  10. 10. Practical illustration afriCAN talent, developing afriCAN enterprises, growing afriCAN economies10
  11. 11. Example– Locality Profile • Approximately 509,964 people according to the 2001 statistics. Population: • Females represent 54% of the population • 65% of the population is under the age of 25 • 18% employment rate • High dependency on grants Economic profile: • 406,689 people living with no income • 90,888 people earn between R400 and R51 200 per annum • 381 earn between R51 201 and R204 801 per annum Literacy: • 82% illiteracy rate • Poorly maintained access paths & roads. Roads are mainly gravel Road infrastructure: with limited extent of tarred roads • Limited health services Health profile: • Relatively high prevalence of HIV/AIDS • Water supply is a challenge and there is need for infrastructural Water supply: upgrade Electricity: • Electricity supply is stable • Tourism and agriculture are the predominant sectors Economic activity: • Limited mining and brick making11 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  12. 12. Local case study An enterprise that exists for A value proposition that isStarting point profit that provides a holistic replicable and addresses a perspective of developing broad spectrum of challenges enterprises Identify a community with Socio-Economic Develop existing or new viable enterprise that development potential will serve as an anchor enterprise• Define the Socio-Economic landscape • Assess viable potential sustainable existing as a baseline initiatives that will serve as a catalyst for• Identify the gaps in the community iro broad based economic development entrepreneurial endeavours • Select one• Identify opportunities for development • Clearly identify and quantify the areas for• Create a scorecard that defines the key spin off broader participation success indicators of developing the community Implement, monitor and Engage partners on a proposed holistic report solution • Run the enterprise like any other business • Identify suitable collaboration partners • In parallel run ED initiatives with • Agree on programme parameters participating entrepreneurs along the • Agree on specific value realisation metrics enterprise’s value chain • Agree on reporting methods & timeframes12 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  13. 13. Delivery Model The catalyst The mandate The collaborations Agro-Processing Hub Development of entrepreneurs along the 1. To enhance economic value chain activities and create - Financial support business opportunities in - Technical support Bushbuckridge - Non financial support 2. Job creation in Bushbuckridge Infrastructure development 3. Skills development of the - Roads people in Bushbuckridge - Schools - hospitals 4. To create the infrastructure necessary for the economic development in identified Development of focal area groups in communities - Women - Youth 5. Growth in Enterprise - People with disabilities Development initiatives in - Innovation & identified area technology Critical Success Factor13 Markets afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  14. 14. It is not straight forward GO LIVE OPERATIONS ENTERPRISE DEVELOPMENT Programme management to get Operations become effective once The Hub is a catalyst for economic the hub to a level where Go-Live and relevant testing has development initiatives in the area. operations can assume. This is in been authorised and the project It forms an anchor to support three areas: handed over from the project various enterprises that can feed - Poultry processing management team to the into its value chain thereby - Vegetable processing operational team. There is a promoting a co-dependent value - Fruit processing phased period where both teams chain that cohesively ensures This incorporates technical are working in parallel to ensure a sustainability. The ED aspects kick preparations, human resource smooth transition in the areas: in once the Hub is in operation. management, and systems delivery - Poultry processing and control definitions - Vegetable processing - Fruit processing Lessons and school fees• 37 people employed permanently to date with • A very weak value chain so revenue leakage anticipated 150 to project end out of the community is significant without• Duration of project long-term immediate intervention• Changing of project sponsors within first year • Profitable business first as an anchor only• Political interest in specific area of operations then can there be support of enterprises• A common understanding of the bigger picture which is where collaboration comes in14 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  15. 15. 3 afriCAN talent, developingAbout Fuse afriCAN enterprises, growing afriCAN economies afriCAN talent, developing afriCAN enterprises, growing afriCAN economies 15
  16. 16. About Fuse Our vision is to have a direct, sustainable and measurable impact on Africa’s economies by growing African EnterprisesPROGRAMME MANAGEMENT ENTERPRISE DEVELOPMENT TRAINING & DEVELOPMENT• Design and execution of socio- • Enterprise commercialisation • Development of bespoke economic programmes • Value chain development programmes• Monitoring and value • Development and execution of • Execution of socio-economic realisation management of bespoke ED programmes programmes strategic programmes • A bias for the development of the growth oriented woman entrepreneur We are continuously learning from others and contributing to what has been developed, for we rely ‘not to what others have thought, nor to what we ourselves conjecture, but to what we can clearly and perspicuously behold and with certainty deduce; for knowledge is not won in any other way’ (Descartes 1629-1640)16 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  17. 17. The ED Conversation17 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  18. 18. Flagship models – Agro Processing Hub18 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  19. 19. The Agro-Processing Hub today
  20. 20. Flagship model: Sun Valley Health Foods In a community (funding & support)20 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  21. 21. Flagship model: Sun Valley Health Foods A few years later (post programme support) • Short term investment • Unlinked community development – multiple agendas • Holistic solutions21 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  22. 22. Flagship Model: SVHF Farms CONSTRUCTION FARM MANAGEMENT TRAINING & DEVELOPMENT • Plumbers • Local and International training • Agricultural institutions • Civil works contractors authorities • Educational institutions • Steel works contractors • Skills Development Agencies • Organic farming experts • Fencing contractors • SETAs • Organic compost suppliers • Casual labour • Training partners • Seedling suppliers • Electricians • Local community • Organic farming accreditation • Building contractors institutions • Materials suppliers • Logistics providers • Department of Human Settlement • Local community • Project management partner • Funding partners LOCAL & INT’L RETAIL ENTERPRISE DEVELOPMENT PROCESSING & PACKING • Local stores • Local & Provincial Economic • Packaging material suppliers • International buyers Development Authority • Local community • Department of Trade & Industry • Local Community • Logistics providers
  23. 23. Flagship models – Sun Valley Health Food Farms23 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  24. 24. Fuse Strategic Partnerships The ILO’s Women Entrepreneurship for Gender Equality (WEDGE) is ILO - WED working in collaboration with Fuse PMC to mainstream WEDGE tools in South Africa with the purpose of building the capacity of business development services providers in women’s entrepreneurship development and assist women entrepreneurs to develop and grow their business. The WEDGE-SA project technically supports Fuse PMC to rollout the WEDGE tools and provides oversight and quality assurance to ensure the services and training rendered relating to WEDGE’s tools are of international standards. Fuse is a registered Business Edge ™ South Africa franchisee. IFC – Business Edge A world-class training system, Business Edge™ strengthens the management skills of owners, managers and staff of small and medium- sized enterprises (SME’s). Backed by IFC and delivered by certified local trainers, Business Edge™ sets a new standard for business training in developing countries. We are continuously learning from others and contributing to what has been developed, for we rely ‘not to what others have thought, nor to what we ourselves conjecture, but to what we can clearly and perspicuously behold and with certainty deduce; for knowledge is not won in any other way’ (Descartes 1629-1640)24 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  25. 25. Closing Who is your intendedthoughts beneficiary for Enterprise Development Support? afriCAN talent, developing afriCAN enterprises, growing afriCAN economies 25
  26. 26. afriCAN talent, developing afriCAN 26enterprises, growing afriCAN economies

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