Research on the Performance of the Services Sector
Yüklə 0,88 Mb.
|
- Bu səhifədəki naviqasiya:
- Recommendations
Seda SupportFeelings/Attitudes towards Seda Programmes/Services Of the businesses that had made use of Seda Services and programmes, only 15% felt that the programmes were not effective and had not helped their businesses at all. The majority (85%) of the businesses felt that the services received had been very effective in assisting their businesses. Figure : Efficiency of Seda Programmes Sixty four percent of the businesses require assistance or support from Seda. Figure : Assistance from Seda
Only 46% of the businesses surveyed had made use of Seda services and programmes. Figure : Seda Programmes
Forty one percent of the businesses that had made use of Seda programmes and services felt that there was room for improvement. The main areas that required improvement were:
Figure : Improvement of Services When asked about the programmes that Seda should offer, most respondents wanted to see more marketing and networking tools as well as business funding options through Seda. Furthermore, only 22% of the respondents felt that Seda offered a unique service compared to other development organisations while 46% of the respondents stated that they were unaware of the exact offerings and could not compare Seda to other organisations. Seda offers a number of programmes that are relevant to the start-up needs of ICT businesses and offer assistance and training to run and manage businesses, but the industry requires specialised training and mentorship which is not currently available from Seda. However Seda does offer ICT specific programmes such as the ICT incubation programme and Seda Technology Programme. One major problem that businesses faced when dealing with Seda is that they felt the training provided was not sector specific.
While the majority of the businesses had not made use of Seda’s services and were unaware of the exact product and service offerings of the organisation, 64% still requested assistance or support from Seda for their business. Of the respondents that had made use of Seda’s products and services, the majority would like to see more marketing, training and funding services in the future, while 41% felt that Seda could improve their current customer service delivery and speed up the processes when assisting clients. RecommendationsIn order to make recommendations on improving programmes offered by Seda or developing new programmes and services it is necessary first to identify existing programmes and services that are offered and determine the relevance to the needs of the ICT and tourism businesses. Seda (Small Enterprise Development Agency) is promoted as an agency that offers a starting point for potential entrepreneurs and a growth opportunity for existing entrepreneurs. This is achieved through business consulting, training and (when unable to help) referrals to suitable specialists. Seda’s services are orientated towards upholding their three objectives: 1) to increase the capabilities and competitiveness of small business enterprises; 2) to ensure that all small business enterprises have equal access to support services; and 3) to strengthen the organization for service delivery. Seda provides four service categories that will enable it to deliver on its mandate. The first two discussed focuses on potential entrepreneurs while the final two focus on existing entrepreneurs: Seda Business Talk Business Talk is a package for potential entrepreneurs or business owners who are enthusiastic about starting their own business in the near future. Overall, this package includes business information and advice, small enterprise training, and assistance with business registration. Interested persons, who are thinking of starting a business, are encouraged to visit any of the Seda branches located countrywide to obtain information on Seda Talk seminars (which offers a basic overview of Co-operatives, Entrepreneurs, and Franchises), Seda Start-up1 training and other Business Talk programmes offered. During this initial stage, business advisors will focus on motives for wanting to start a business, characteristics and other necessities for starting a business, testing the business idea’s viability, exploring other support services, and information on business development. After having formalized a clear idea of the business one wants to start (the strategic focus stage), Seda advisors will help clients to draw up a business plan, consisting of the following areas:
During each of these above mentioned areas a three-step cyclical planning process should be used, consisting of:
Clients are warned to not become stuck in the planning mode. A business plan should normally consist of 20 pages (including financial statements) and planning should only take one to six months. Lastly, Seda advisors will help clients decide what type of business they will enter into/begin and will therefore weigh the advantages and disadvantages of each of the following: sole proprietorships, partnerships, close corporations, private companies or trusts. Seda also offers the Cooperatives and Community Public Private Partnership (Coops & CPPP) Programme to specifically satisfy the needs of rural clients. This programme supports non-traditional organizational forms and specifically directs its focus to rural areas and the use of local resources. Key sectors for this programme is agribusiness, cultural tourism, mining and mineral beneficiation, and trading and auxiliary services. Seda Business Start Business Start is a package that provides assistance in the form of tools and techniques to those clients who are ready to start a business. Overall, this package focuses on business planning, business counseling, access to finance, and business support. Seda business start has four key areas of focus:
Most small businesses will need money in order to lift itself from the ground. Before the business becomes profitable, money will be needed to acquire stock and materials, equipment, money to pay employees’ salaries, telephone bill, rent, etc. However, before applying for a loan, clients are urged to find out the exactly information the person/institute requires in order to make the application process as fast and effective as possible. Seda guides all clients in creating a successful presentation for the bank that will make the loan application a success. This is achieved by focusing on three key areas, namely: Bank requirements for SMEs; reasons why banks refuse loans; and checklist for a presentation to bankers
Seda advises clients to put systems in place in order to manage the business effectively. This should be done so that every demand the business faces can be 'channeled' in a certain direction and dealt with in a planned way which will enhance control over all business processes. Key factors that Seda advise their clients to acquire include: a proper Business Financing Plan; a comprehensive plan for potential bankers that will finance the client’s business; a good understanding of fraud and the prevention of it; well informed of the services of the Independent Regulatory Board for Auditors; good understanding of bank services; and a good understanding of business financial management. Appropriate links are provided on Seda’s website for more information of each topic.
Seda focuses on the four P’s of marketing to help their clients make their products more appealing to customers than that of their competition. The four P’s include Product, Price, Promote, and Provide. According to these four factors Seda provides guidance in advertising, promotional activities, customer relations, selling techniques, pricing, packaging, and the location and name of the business. Seda Business Build SEDA offers “business build” services to small business owners. These services are aimed at helping small businesses to grow and improve through various programmes. These programmes include; Advice for tender processes, business networking, technical business support and ISO accreditation, help with an export readiness assessment, toolkits for participating in exhibitions and trade shows, and productivity improvement. Seda Business Grow SEDA offers “Business Grow” services to small businesses. These services aim to achieve sustainable growth in small businesses. “Business Grow” uses the same services as “Business Build”, but have a different focus. This programme offers: - Business assessment and diagnostic tools: assessing the business’ needs for sustainable growth and providing a solution through SEDA’s services and networks -Business Management: improving business management skills, including financial admin and management; coaching and mentoring; Strategic planning; business optimisation and turnaround strategies; listing on JSE and AltEx. -Management systems/ technology: SEDA offers technical support like ISO Accreditation Product Improvement, Market Penetration and Tender Support. This support comes from SEDA branches offering the services. - SEDA offers trade point programmes: Trade Point programmes are initiated by an international, non-governmental organisation called The World Trade Point Federation. It aims to increase SME’s participation in global trade. Global trade and networking is promoted through their Global Trade Directory System, which provides a database of companies registered from 70 countries in the network. This system provides companies with networking, marketing and exposure in the Global Trade market and offers trade related information, market intelligence and other services. - SEDA also offers an Export Development Programme to small businesses. This service helps businesses to grow through assisting them in developing export systems.
SEDA offers the STP- the Seda Technology Programme. The STP aims to increase the accessibility, knowledge and use of technologies in small businesses, especially those from an underprivileged background, to help them develop and grow. This should increase their overall productivity and competitiveness in an increasingly technological market and general society. SEDA has launched the Nelson Mandela Bay ICT Incubator in the Eastern Cape. It aims to grow and promote economic growth in the Eastern Cape’s ICT sector. It focuses on ICT Cluster Development, business Development, Skills development and Job creation in the ICT sector. The services that the incubator provides include Mentorship, networking with industry players and investors, and physical ICT infrastructure. Entrepreneurs also get support from the Entrepreneur Support Program provided by the incubator, helping them with business plans, mentorship, information, finance assistance and business ideas. Tourism Opportunities and the Seda Programmes
Table of ICT opportunities and Relevant Seda Programmes
Recommendations on developing services and programmes to accommodate development opportunities: The following opportunities have been identified for Seda to assist in the development of the services sector and these interventions have been identified through the desktop review as well as through the data analysis. Tourism Opportunities: Opportunity 1: Funding for businesses: Businesses require funding for various reasons and it is not always possible to apply for finance from private institutions, furthermore businesses are unaware of the public sector funding that is available and as such require assistance in accessing these funding avenues. Intervention: Providing assistance with securing funding: Seda can offer assistance in securing funding for tourism businesses or at least offer assistance in funding applications for businesses. Seda can recommend institutions that tourism businesses can apply to for funding as well as offer assistance in facilitating contact with funding organizations. Recommendation: It is recommended that partnerships be established between funding facilitation organizations such as the IDC as well as the DBSA with Seda to provide clients with information regarding funding opportunities while also assisting clients in applying for funding. Opportunity 2: Expanding existing businesses by Marketing & Building a client base: a major issue that businesses face is maintain and expanding their client base. Businesses have difficulty in expanding clientele and accessing new markets and so they require assistance in developing more aggressive marketing skills as well as developing advertising platforms to increase their client base. Intervention: Assist with building client base and improving marketing: Seda can provide assistance to these businesses by providing in depth marketing training and tourism specific training; furthermore Seda can also provide guidance with regards to applying for government tenders. Recommendation: Develop training and marketing platforms to increase exposure of businesses as well as promote online marketing Opportunity 3: Development of /facilitation of Training: Seda can develop training and facilitation programmes to increase their current product offering as well as to assist small businesses access much needed industry specific training. Intervention: Provide accredited training specific to the industry: Industry specific training for tourism businesses is essential and would include training in marketing of tourism products, development of tourism products and providing quality assurance. Recommendation: It is recommended that Seda develop specific industry training as well as accredited training for entrepreneurs in the industry. Partnerships and collaborations may be formed with training facilities or organisations Opportunity 4: Access to resources: businesses in the tourism industry, particular small businesses are not able to access all the required resources; these include basic services such as municipal and infrastructure as well as finance and assets. Intervention: Facilitate access to necessary resources to promote industry growth Recommendation: It is recommended that Seda partner with other organisations or develop network clusters whereby businesses can share resources. ICT Opportunities: Opportunity 1: Skills development: ICT businesses experience skills shortages which hamper their ability to grow and expand. Skills development would combat the skills shortages, as well as improve job creation opportunities. Training is required to facilitate skills development in the ICT industry. Intervention: Provide industry specific training: Training is required by ICT business, the training is not general business or marketing training but specific skills, such as software design and developing, network support and maintenance. The training providers would need to be industry specialists. Recommendation: Seda can develop specialized training aimed ICT businesses and provide them with after training mentorship Opportunity 2: Accessing market intelligence: provides an opportunity for Seda to assist small businesses in accessing market intelligence and in doing so help these businesses to become competitive and to grow. Intervention: Provide market information to businesses in the industry: Seda can partner with other organisations to develop a platform that provides market information to small businesses. Recommendation: Seda can develop partnerships with the department of Communication to research and publish regular documents on market information as well as develop annual sectoral reports Opportunity 3: Assisting firms with procuring short term funding: Short term funding is required by firms on occasion to supplement cash flow or as bridging finance. These firms can be assisted by Seda through the development of a short term funding facilitation programme. This will assist small businesses and help with their development in the industry. Intervention: Facilitate funding for ICT businesses: Seda can provide advice or assistance to ICT businesses that require short term funding, their needs can be assessed and the relevant funding agencies can be contacted and applications can be made through assistance from Seda. Recommendation: Develop partnerships with funding organizations and develop a list of potential funders relevant to each industry Recommendations for Further Research The recommendations for further research flow primarily from the scope and limitations of this study. As outlined in the limitations section, this study faced various challenges:
Given the above challenges it is recommended that further research be conducted as follows: Partner with specific regional offices and; using their databases, conduct sector specific mapping. This exercise will build on the information already provided in this report i.e. key opportunities & challenges; however it will allow for targeted interventions to take place within specific geographical nodes Further analyses of each sector should be conducted at a National level. However the associated sample size should be increased to include at least 500 – 1000 participants as well as participants that would be affected by upstream and downstream opportunities. A separate analysis should be undertaken to benchmark Seda clients to those clients who have opted to use Seda services. This can be linked to ongoing M&E so that the impact of Seda programmes can be tracked effectively Yüklə 0,88 Mb. Dostları ilə paylaş:
|