Towards collaborative
      partnerships in Enterprise
                  Development

                                                                   Connect   Partner   Empower       Invest




                                              Rehema Isa | Managing Director | rehema.isa@fuseconsultiing.co.za


afriCAN talent, developing afriCAN enterprises, growing afriCAN economies                               1
1.      The way we see it
                                     2.      The case for collaborative
                                             partnerships
                                     3.      About Fuse




afriCAN talent, developing afriCAN enterprises, growing afriCAN economies   2
1
                    Who is is the real beneficiary
The way we           of Enterprise Development
   see it
                              Support?




               afriCAN talent, developing afriCAN
                                                      3
             enterprises, growing afriCAN economies
The way we see it




    Budgeting                                                                               Reporting
     Period                             Expenditure period                                   period

4               afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
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

5            afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
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



6                    afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
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?


                  afriCAN talent, developing afriCAN
                                                         7
                enterprises, growing afriCAN economies
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

8                        afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
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
9                        afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
Practical illustration




     afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
10
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
11                          afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
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


12                      afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
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

13
                                                                   Markets
                         afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
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


14                              afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
3

                    afriCAN talent, developing
About Fuse
                   afriCAN enterprises, growing
                        afriCAN economies




             afriCAN talent, developing afriCAN enterprises, growing afriCAN economies   15
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)


16                             afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
The ED Conversation




17          afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
Flagship models – Agro Processing Hub




18             afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
The Agro-Processing Hub today
Flagship model: Sun Valley Health Foods
     In a community (funding & support)




20                   afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
Flagship model: Sun Valley Health Foods
     A few years later (post programme support)




     •   Short term investment
     •   Unlinked community development – multiple agendas
     •   Holistic solutions



21                      afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
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
Flagship models – Sun Valley Health Food Farms




23             afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
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
Closing                   Who is your intended
thoughts                 beneficiary for Enterprise
                          Development Support?




           afriCAN talent, developing afriCAN enterprises, growing afriCAN economies   25
afriCAN talent, developing afriCAN
                                         26
enterprises, growing afriCAN economies

Towards collaborative partnerships in ED - Serious Enterprise Development 2011

  • 1.
    Towards collaborative partnerships in Enterprise Development Connect Partner Empower Invest Rehema Isa | Managing Director | rehema.isa@fuseconsultiing.co.za afriCAN talent, developing afriCAN enterprises, growing afriCAN economies 1
  • 2.
    1. The way we see it 2. The case for collaborative partnerships 3. About Fuse afriCAN talent, developing afriCAN enterprises, growing afriCAN economies 2
  • 3.
    1 Who is is the real beneficiary The way we of Enterprise Development see it Support? afriCAN talent, developing afriCAN 3 enterprises, growing afriCAN economies
  • 4.
    The way wesee it Budgeting Reporting Period Expenditure period period 4 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  • 5.
    What we needto 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 5 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  • 6.
    What is theproblem? Company A What are the indicators that measure the real impact / success of developing Company B enterprises in the same community? Company C 6 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  • 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? afriCAN talent, developing afriCAN 7 enterprises, growing afriCAN economies
  • 8.
    What is theimpact 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 8 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  • 9.
    How do youcounter 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 9 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  • 10.
    Practical illustration afriCAN talent, developing afriCAN enterprises, growing afriCAN economies 10
  • 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 11 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  • 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 12 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  • 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 13 Markets afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  • 14.
    It is notstraight 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 14 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  • 15.
    3 afriCAN talent, developing About Fuse afriCAN enterprises, growing afriCAN economies afriCAN talent, developing afriCAN enterprises, growing afriCAN economies 15
  • 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) 16 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  • 17.
    The ED Conversation 17 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  • 18.
    Flagship models –Agro Processing Hub 18 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  • 19.
  • 20.
    Flagship model: SunValley Health Foods In a community (funding & support) 20 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  • 21.
    Flagship model: SunValley Health Foods A few years later (post programme support) • Short term investment • Unlinked community development – multiple agendas • Holistic solutions 21 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  • 22.
    Flagship Model: SVHFFarms 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 23 afriCAN talent, developing afriCAN enterprises, growing afriCAN economies
  • 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.
    Closing Who is your intended thoughts beneficiary for Enterprise Development Support? afriCAN talent, developing afriCAN enterprises, growing afriCAN economies 25
  • 26.
    afriCAN talent, developingafriCAN 26 enterprises, growing afriCAN economies