The Small Business Monitor - Seda

1 The Small Business 6 - Number 1 - 2010 ACKNOWLEDGEMENTSE ditor: Sekamotho Mthembu - SedaAdministration Assistant: Duduzile Ngubeni- SedaContributors: Tembeka Nkamba van WykDavid ChristerJan BeetonDavid KombanieLazarus ModiseAndrew CharmanLeif PetersenProduced by: Programme Analysis and Development Division, SedaDesign and Layout: CultureCom Africa MediaPhotography: Seda - Marketing DivisionContributorsCultureCom Africa MediaPrinted by: Business PrintISBN No: 978-0-620-46787-2 Small Business Monitor Review Committee: Ranjit Alummoottil Micah MkombezaJohn MosimaneEarl MailulaOupa MmotsaDr. D. MyrickCarol WrightJoha Louw-PotgieterEmmanuel OseifuahKwame Owusu Ampomah Tom FoxEgbert WesselsRonnie MmotlaneVicki Igglesden The views expressed in the articles contained in this publication are not necessarily those of : + 27 12 441 1000 Fax: +27 12 441 2230 Call Centre: 0860 103 703 Website: FOREWORD FROM THE CEO FROM THE EDITOR S DESK 23 FEATURES:1.

2 Mentoring of Small Enterprises - Countering Negative Mindsets- By Tembeka Nkamba-Van Wyk and David Christer2. Leadership Driven Entrepreneurship - Top Down and Bottom Up - By Jan Beeton3. Staying in Business : How Will SMMEs Sustain Themselves After the 2010 Fifa World Cup ?- By David Kombanie4. Redefining the Role of LED and IDP- By Lazarus G. M. Modise, Earl Mailula, John K. Mosimane & Oupa Mmotsa410182390 SEDA NATIONAL BRANCHES RESEARCH:CASE STUDY:1. Exploring Aftercare Programmes Of Development and Support Institutions- By Dr. D Myrick1. Understanding the Local Economic Impact of the Closure of Shebeens in the Western Cape as a Consequence of the Western Cape Liquor Act, 2008- By Andrew Charman and Leif PetersenThe Effects of Governance and Legislation on SMMEs: 2.

3 A Process Evaluation of a Small Business Development Programme- By Carol Wright and Joha Louw-Potgieter3. The Impact of Global Recession on SMMEs In South Africa: The Case of the Tourism Sector in Limpopo Province, South Africa- By Emmanuel Oseifuah 4. Is it Isolation or Modernisation? Network Theory and The Growth and Development of Small Clothing Manufacturing Enterprises in Durban- By Kwame Owusu Ampomah7. Defining Social Entrepreneurship in the SMME Sector: What is it and Can it be of Utmost Relevance in the SMME Sector?- By Vicki Igglesden5. - By Tom Fox And Egbert Business Development Services to Social Enterprises: The Case of a Pilot Social Business Plan Competition on the Cape Implications of the New Companies Act on Small Businesses-By Ronnie Mmotlane76We also continue to reach out to various areas throughout the country through various partnerships and provision of information on interventions that broadly assist in the development of Small enterprises, as well as increasing education and training opportunities for this of the broad themes for the 2010 Small Business Monitor include economic recession and SMMEs, the effects of governance and legislation on SMMEs, social enterprises and entrepreneurs, the legacy of the Fifa Soccer World Cup 2010 for the sector.

4 Monitoring and evaluation of Small enterprise support programmes as well as mentoring of Small extend my sincere gratitude to all our contributors. This edition of the Small Business Monitor is another significant contribution to the Business intelligence necessary to support the growth of Small enterprise in South Africa. Hlonela LupuwanaCEOIn a year that heralds several milestones for South Africa, including our hosting of the Fifa Soccer World Cup and the twenty year anniversary of Nelson Mandela's historic release from prison, Seda is pleased to bring you the 2010 edition of the Seda Small Business with any milestone, the journey to reach it is filled with lessons and achievements. This is true of our journey to create a tool for information sharing in the SMME sector.

5 We are thrilled to note that during the past few years of this publication it has grown to meet a very specific need. It created a platform for sharing of information, best practice and more importantly networking of practitioners, researchers and entrepreneurs within the SMME sector. We are grateful to all the contributions made, both those that were eventually published, and those that were not. The quality of submissions and the issues raised continue to provide us with a sense of the matters the sector is grappling with, as well as an overview of valuable work being carried out all over our country in respect of SMME a national footprint consisting of 9 Provincial Offices, 42 Branch Offices, 48 Enterprise Information Centres and 29 Technology Incubators countrywide, Seda continues to focus on support initiatives that enable Small enterprises to succeed and grow in South Africa.

6 Seda initiatives facilitate access to finance, support the creation of an enabling environment for Small enterprises as well as assist in expanding market opportunities for specific categories of Small enterprise. FOREWORD FROM THE CEO2 Tembeka Nkamba-van Wyk focuses on countering negative mindsets in the mentoring of SMMEs, Lazarus Modise examines redefining the role of Local Economic Development and municipalities' Integrated Development Programmes and Jan Beeton discusses leadership-driven entrepreneurship. Our article by David Kombanie asks the important question of how SMMEs will sustain themselves after the 2010 Fifa Soccer World case study by Andrew Charman and Leif Petersen focuses on the impact of legislation on SMMEs by illustrating the local economic impact of the closure of shebeens in the Western Cape as a consequence of the new Western Cape Liquor Act, such a wide range of practical research material and editorial views expressed in this issue of the Small Business Monitor , we are confident that the debate and discussion stimulated by these articles will contribute to furthering the growth of the SMME sector and that of its support MthembuEditorFROM THE EDITOR S DESK3 The Small Business Monitor .

7 Seda's annual publication featuring research articles, case studies and feature articles, has for the past five years served as a valuable platform for information sharing and networking among practitioners in the SMME sector. The content reflects a diverse range of work and experience being undertaken by entrepreneurs, academics and practitioners from across our country. The 2010 issue once again reflects these insights and expertise and we are grateful for the overwhelming response we received from interested parties in the SMME Igglesden looks at defining social entrepreneurship in the SMME sector and Tom Fox and Egbert Wessels provide an interesting overview of a social Business plan competition in the Cape impact of the global recession on smmes, particularly the tourism sector in Limpopo is examined by Emmanuel Oseifuah and Kwame Owusu Ampomah investigates network theory in the context of the development of Small clothing manufacturing enterprises in Durban.

8 The team of Carol Wright and Prof Joha Louw-Potgieter describe a process evaluation of a Small Business development programme while Dr. D. Myrick explores aftercare programmes of development and support institutions for Nkamba-Van Wyk left a senior government position to start her own empowerment organisation Talking Beads in 1997 which has trained over 5000 (mainly rural) women in beadwork. Tembeka's aim was to revive local craft traditions whilst providing work for South African women. In 2000 she won the Shoprite Checkers Woman of the Year ( Business category). She is passionate about empowerment and is the managing director of Ngezandla Zethu (With Our Hands), which is the training wing of Talking Beads.

9 She serves on several boards and is an accomplished producer, scriptwriter and Christer is an architect, interior designer and graphic designer who has worked in the design field in South Africa, Zimbabwe, the UK, the USA and the Middle East. He is passionate about Sustainable Development and the revival of Indigenous Knowledge and has proposed the establishment of a Centre of Appropriate Technology (CATSA) in Pretoria. He is the chairperson of Ngezandla Zethu. He is involved in the upgrading of traditional crafts into design items for Talking Beads, and he is currently establishing a recycling craft centre in Pretoria. MENTORING OF Small ENTERPRISES - COUNTERING NEGATIVE MINDSETSBy Tembeka Nkamba-Van Wyk and David ChristerThere is a dire need in South Africa to provide the appropriate support structure to uplift potential Small businesses and entrepreneurs to a level of self-sufficiency and sustainable productivity.

10 The altruistic motivation is required and appreciated but this is not a mission for the faint hearted. The recurring problems and challenges need to be addressed satisfactorily to ensure success. Situations and personalities differ greatly and there is no single panacea that can be applied across the board. Our hands-on experience in this field can however assist in preventing and minimizing the problems, by providing solutions and hopefully add positively to this vital process of ZethuNgezandla Zethu (With Our Hands) is an empowerment and training organisation based in Tshwane (Pretoria). Ngezandla Zethu has been involved in various training programmes to empower Small businesses and individuals and also assist them to develop their Business and management article is based on Ngezandla Zethu's mentorship programme through which 10 entrepreneurial businesses from the creative sector were trained as a result of funding from the National Development Agency (NDA).