Introduction to Edge Growth SAMBRA NEC Overview and FAQs Edge Growth - - PowerPoint PPT Presentation

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Introduction to Edge Growth SAMBRA NEC Overview and FAQs Edge Growth - - PowerPoint PPT Presentation

Introduction to Edge Growth SAMBRA NEC Overview and FAQs Edge Growth is an authorised Financial Services Provider (FSP 45065) Agenda 1. Who is Edge Growth 1.1 Overview of Edge Growth 1.2 Client Profile 1.3 Team Background 1.4 Regional


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Edge Growth is an authorised Financial Services Provider (FSP 45065)

Introduction to Edge Growth

SAMBRA NEC Overview and FAQs

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Edge Growth is an authorised Financial Services Provider (FSP 45065)

Agenda

  • 1. Who is Edge Growth

1.1 Overview of Edge Growth 1.2 Client Profile 1.3 Team Background 1.4 Regional Reach

  • 2. Our Unique Value Proposition
  • 3. Our Approach to Developing a Tailored Solution
  • 4. Track Record

4.1 Fund Management 4.2 SME Growth Support 4.3 Overview

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Who is Edge Growth?

9

Provinces

Triple Bottom Line

Compliance Profit Social Experience and Track Record

60+ Employees

B-BBEE Rating

5 jobs x 500 SMEs in 5 years

400 SMEs Developed 247% Revenue Growth 25 000+ BDS hours

R 650 mil Funds Mng.

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Overview of Edge Growth

VISION PURPOSE MISSION

5 x 500 in 5 Our vision is to create at least 5 jobs in 500 SMEs

  • ver a

period of 5 years Growing Businesses, Jobs and Nations Our purpose is to grow businesses that create and maintain jobs in

  • rder to build

nations ESD Strategy, Capital, Support: Designed and Delivered Our mission is to provide an end-to-end Enterprise and Supplier Development solution to businesses by designing and delivering tailored strategy, capital management and providing outsourced business development support.

Products & Services Edge Growth is one of the country’s leading Enterprise and Supplier Development (ESD) providers. We are passionate about creating sustainable jobs through building SMEs in South Africa. Edge Growth is a Level 1 contributor in terms of the B-BBEE Codes of Good Practice, as a QSE. Edge Growth ESD Strategy & Advisory SME Growth Support Fund Management (~R400m) ESD Programme Management

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The profile of Edge Growth’s clients

We have done work for some of South Africa’s most respected top 100 JSE listed companies across almost every industry, many of which have endorsed our work by providing us with references.

Client List

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We bring the best team

The Edge team is now over 60 full time professionals that have worked across diverse environments right from start-ups to some of the worlds largest and most innovative companies Cumulative team experience

  • 23 post-graduate degrees
  • 50 years running SMEs
  • 80 years leading Enterprise development/SME growth
  • 105 years of client relationship management
  • 60 years of management consulting
  • 88 years of project management
  • 38 years of private equity and venture capital
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We have a national footprint of mentors, with HQ in 2 major cities

(National network of mentors >50)

Gauteng 13 Limpopo, Mpumalanga, North West 13 Free State, Northern Cape 14 KwaZulu-Natal 8 Eastern Cape 4 Western Cape 5

Edge Growth has two regional offices, one in Johannesburg and one in Gauteng and a national footprint of mentors to conduct business diagnostics in all 9 of South Africa’s provinces.

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Edge Growth is an authorised Financial Services Provider (FSP 45065)

Agenda

  • 1. Who is Edge Growth

1.1 Overview of Edge Growth 1.2 Client Profile 1.3 Team Background 1.4 Regional Reach

  • 2. Our Unique Value Proposition
  • 3. Our Approach to Developing a Tailored Solution
  • 4. Track Record

4.1 Fund Management 4.2 SME Growth Support 4.3 Overview

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What is Edge Growth’s Unique Value Proposition?

Tailored Solutions End-to-End Solutions Fund Management Risk based supply chain investments Seamless BDS – Investment Integration Empowerment Funding Enhanced Corporate Experience SME Cross Pollination 10 years of Practical Learnings 1. 4. 7. 3. 6. 9. 2. 5. 8.

Across a multitude of industries, budgets and SME profiles

1

From advisory services to implementation

2

R 650 million under management

3

Sourcing of supply chain deals and procurement integration

4

BDS that speaks to the due diligence of a deal

5

Transformation of white owned businesses

6

Solutions tailored to suit the corporate 7 SMEs can gain access to market Through other corporates

8

Hard learnings through on the ground implementation

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Edge Growth is an authorised Financial Services Provider (FSP 45065)

Agenda

  • 1. Who is Edge Growth

1.1 Overview of Edge Growth 1.2 Client Profile 1.3 Team Background 1.4 Regional Reach

  • 2. Our Unique Value Proposition
  • 3. Our Approach to Developing a Tailored Solution
  • 4. Track Record

4.1 Fund Management 4.2 SME Growth Support 4.3 Overview

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Phase 1: Attaining Exco Buy-In, Members Buy-In, Securing ESD Budget and Designing an ESD Programme

To motivate the leadership team to launch a SAMBRA ESD programme that uses the best practice methodology to facilitate access to market and value chain opportunities for its beneficiaries, three components must be addressed.

Edge Growth will conduct the following activities:

  • Answer the below key questions that the leadership team will need answered to commit buy-in

and resources:

Why should SAMBRA be doing ESD? (Compliance, value chain benefit, ROI, Social impact, Branding etc.) What are the targets for assisting SAMBRA’s members The process of attaining member corporate buy- in in order to create access to market to increase SMEs chance of success. Define mix of funding & program:

  • Unlocking constraints to

SME growth requires a support mix Define the SAMBRA Strategic objectives Unpack the SAMBRA regulatory obligation Define the best approach to ESD Define the right mix of ESD support

1 2 3 4

Identify value chain

  • pportunities and existing

programme. Attaining commitment from leadership to

  • vercome buy-in hurdles

within the business to ensure programme success. Sensitize leadership to programme operational costs and execution timelines. Using the strategy as a baseline, an operating model can be designed. *Explore members value chain landscape Determine critical success factors Define program budget and timeline Design SAMBRA’s ESD Programme

5 6 7 8

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Edge Growth is an authorised Financial Services Provider (FSP 45065)

Agenda

  • 1. Who is Edge Growth

1.1 Overview of Edge Growth 1.2 Client Profile 1.3 Team Background 1.4 Regional Reach

  • 2. Our Unique Value Proposition
  • 3. Our Approach to Developing a Tailored Solution
  • 4. Track Record

4.1 Overview 4.2 SME Growth Support 4.3 Fund Management

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Edge Growth has the capability to provide ESD solutions to SAMBRA and its members.

SAMBRA will need to partner with a service provider who has experience and is able to provide bespoke solutions relevant to the SAMBRA’s needs.

Edge Growth has extensive experience offering end-to-end ESD tailored solutions: (highlighting a

select few case studies: not the exhaustive list of work completed to-date)

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What is Edge Growth’s track record of providing SME Growth Support?

Edge Growth has been conducting SME Growth Support for 9 years, a year prior to our launch. We have seen an average turnover growth rate of 40% over this period. Our positive track record of providing BDS, has made us sought after to provide SME Growth Support to some of South Africa’s top 100 JSE listed companies.

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Edge Growth is a SME Growth Specialist that has worked over 400 SMEs from 2012 -2015, which continues to grow every year…

Edge Growth is currently working with 150+ SMEs within its BDS Programmes

Oil and Gas FMCG Mining Banking Financial Services ICT Hospitality 8 10 5-20 2 5 3 15 33 10 10 19 28

Historically, programmes alone has worked with ± 250 SMEs

100 11

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What is the cost of incubation per SME?

Edge Growth does not believe in a one-size fits all approach when it comes to providing SME Growth Support. We have tailored four types of incubation models that accommodate different entrepreneur models and SME development needs, namely:

 1GIANTleap™  Growth Catalyst™  Path to Scale™  The 10X Entrepreneur™

On average the cost per SME per year is between R 200 000 and R 350 000*

*depending on the incubation model

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Edge Growth applies the appropriate incubation model depending of the SME Lifecycle Stage

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Each incubation programme encompasses 12 core foundations that are essential to any sustainable business model – 8 business and 4 personal related foundations

Our SME Growth solution makes use of the Growth Wheel as a foundation for SME Diagnostics and BDS

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Process: Period: Activities: 1-2 wks On-site diagnostic Growth plan development

  • Assess business and

entrepreneur growth potential

  • Identify key

growth needs and focus areas

  • Identify appropriate

incubation program for SME

  • Development of a

monthly project implementation plan

  • Stakeholder alignment

(corporate sponsor, procurement, supply chain, SME, mentor) on SME growth plan

Stakeholder alignment on growth plan Customised business incubation Measure success of the programme

  • Monthly attendance of

bootcamps

  • Monthly mentorship and

coaching

  • Implementation of growth

plan projects

  • Measure overall programme

success against KPIs

  • Capture lessons learnt

2-4 wks 2-4 wks 12-24 months 4-6 wks

Assessment & planning Incubation

Management of the incubation programmes

Monitoring & evaluation 3 1 2

The incubation programmes are managed through a robust programme management process which has 3 phases: Assessment and Planning, Incubation, Measurement and Evaluation

Programme management, reporting and co-ordination Bootcamp and Coaching Modules

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What is Edge Growth’s track record of managing ESD funds?

Edge Growth has been operation for 8 years and has managed ESD funds for 7 years. With our leaders coming from various investment backgrounds, we have secured the management of two major funds and a smaller internal fund:

 FirstRand Bank- Vumela  Association for Savings and Investment

South Africa (ASISA)

 Edge Action

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Fund Management Overview: Experience across multiple fund investment mandates

7 years Founded: 2009 3 years Founded: 2012 4 years Founded: June 2011

Years of experience R 380 million R 250 million R 16.5 million

12 6 12 R 125 million R 30 million R 3 million

  • Avg. Revenue Growth = 40%

No exits have taken place as yet 8% 10% 92% 100% Zero defaults to date 100% Zero defaults to date 326 100+ 70

Number of investments Funds deployed to date Average ROI Success rate Jobs created

Total Funds Under Management: ~R 650 million

12 years 30 R 158 mil ~ 9% 97% 500+