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.

1. Towards collaborative
partnerships in Enterprise
Development
Connect Partner Empower Invest
Rehema Isa | Managing Director | rehema.isa@fuseconsultiing.co.za
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2. 1. The way we see it
2. The case for collaborative
partnerships
3. About Fuse
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3. 1
Who is is the real beneficiary
The way we of Enterprise Development
see it
Support?
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enterprises, growing afriCAN economies

4. The way we see it
Budgeting Reporting
Period Expenditure period period
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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 Community
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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 C
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7. 2
How do we influence and
The case for impact the quantum of
collaborative change required while
partnerships maintaining the quality
required to do so properly?
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enterprises, growing afriCAN economies

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 entrepreneurs
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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
ty
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10. Practical illustration
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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 making
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12. Local case study
An enterprise that exists for A value proposition that is
Starting 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 & timeframes
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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
Factor
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Markets
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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 in
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15. 3
afriCAN talent, developing
About Fuse
afriCAN enterprises, growing
afriCAN economies
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16. About Fuse
Our vision is to have a direct, sustainable and measurable impact
on Africa’s economies by growing African Enterprises
PROGRAMME 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)
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17. The ED Conversation
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18. Flagship models – Agro Processing Hub
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19. The Agro-Processing Hub today

20. Flagship model: Sun Valley Health Foods
In a community (funding & support)
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21. Flagship model: Sun Valley Health Foods
A few years later (post programme support)
• Short term investment
• Unlinked community development – multiple agendas
• Holistic solutions
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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. Flagship models – Sun Valley Health Food Farms
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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)
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25. Closing Who is your intended
thoughts beneficiary for Enterprise
Development Support?
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26. afriCAN talent, developing afriCAN
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enterprises, growing afriCAN economies