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 - - 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,
- 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 OBJECTIVES
- 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
RESEARCH METHODOLOGY
- Business opportunity area
- What does capacity mean?
- Interview findings
- Resources local vs. foreign
- Insights
- Stakeholders
- Recommendations
- If nothing is done?
- What would it mean?
OVERVIEW
Over R100 000 spaza shops in South Africa Estimated 40 000 located in Gauteng Collective turnover of well over R7 bn p.a. Each spaza shop employs between two & three people, who in turn support an average of four family members. Challenges -
- understand legalities and
compliance framework within which their business must
- perate
- Need access to
- markets
- finance
- skills and managerial expertise,
- technology,
- business infrastructure,premises
- Relief tax burden.
BUSINESS OPPORTUNITY AREA
Local Spazas Foreign spazas
INTERVIEW FINDINGS - SPAZAS
10 20 30 40 50 60 70 80 90 100
Transaction records Cash Flow records Inventory system Man Use financial planning Matric
Local Spaza Foreign Spaza
RESOURCES – LOCAL vs. FOREIGN
P E R C E N T A G E Start up Capital – R456 vs. R15 434 Trading Space - 30 – 40m vs. 40 – 90m
- 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
INSIGHTS
- 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
RECOMMENDATIONS
SMMEs
Spaza Shops Community Leaders Retailers & Wholesalers W&R Seta
CGCSA
Dept of Trade & Industry Dept of Education ILDP (Khulisa)