CAPACITY BUILDING OF SMMEs K H U L I S A RESEARCH OBJECTIVES - PowerPoint PPT Presentation

CAPACITY BUILDING OF SMMEs K H U L I S A

RESEARCH OBJECTIVES • Examine current regulatory framework • Investigate CGCSA role - Explore Retailers role • Comparative Analysis with Canada & UK • Investigate status quo, trends, capacity needs, gaps & interventions • Interview Findings

RESEARCH METHODOLOGY • Literature review & use of questionnaires • 26 interviews – local and foreign owned spaza shops • Interviewed Suzanne Ackerman Berman from Pick ‘n Pay • Woolworths - questionnaire • Interviewed Mncane Mthunzi • Canada and London interviews

OVERVIEW • Business opportunity area • What does capacity mean? • Interview findings • Resources local vs. foreign • Insights • Stakeholders • Recommendations • If nothing is done? • What would it mean?

BUSINESS OPPORTUNITY AREA Over R100 000 spaza shops in Each spaza shop employs Challenges - South Africa between two & three people, who • understand legalities and in turn support an average of four Estimated 40 000 located in compliance framework within family members. Gauteng which their business must operate Collective turnover of well over • Need access to R7 bn p.a. • markets • finance • skills and managerial expertise, • technology, • business infrastructure,premises • Relief tax burden.

INTERVIEW FINDINGS - SPAZAS Local Spazas Foreign spazas

RESOURCES – LOCAL vs. FOREIGN 100 Start up Capital – R456 vs. R15 434 90 P 80 Trading Space - E 70 30 – 40m vs. 40 R – 90m C 60 E 50 N 40 T 30 A G 20 E 10 0 Transaction Cash Flow Inventory system Use financial Matric records records Man planning Local Spaza Foreign Spaza

INSIGHTS • Spaza shops have a role to play in: § curb unemployment § wealth creation • Community utilises spaza shops for convenience • Foster effective collaboration • Retailers to follow up progress with the Small Business Enterprise Development; • Improve the awareness of support structures • International Interviews

RECOMMENDATIONS • SMME representation on the CGCSA board • Volunteers in the communities • To educate and empower the communities • Raise awareness of the existence of the SMME support structures • “Adopt-a- spaza shop” • Rebate/discount structure for SMMEs & tailor-made products • School curriculum to include entrepreneurship

STAKEHOLDERS Spaza Shops ILDP Community (Khulisa) Leaders Dept of Retailers & SMMEs Education Wholesalers Dept of Trade & W&R Industry Seta CGCSA

IF NOT, SO WHAT? If If Noth thing g is done?

WHAT WOULD IT MEAN?

THANK YOU Any Questions?