BBSDP PRESENTATION SITA House Observatory Vuyo Zitha INCENTIVE SCHEMES CLUSTER INCENTIVE SCHEME BROADENING PARTICIPATION Black Business Supplier Development Programme BBSDP ID: 807716
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19th March 2013
BLACK BUSINESS SUPPLIER DEVELOPMENT PROGRAMME (BBSDP)
BBSDP PRESENTATION @
SITA House, Observatory:
Vuyo
Zitha
INCENTIVE SCHEMES
CLUSTER
INCENTIVE SCHEME
BROADENING PARTICIPATION
Black Business Supplier Development
Programme (BBSDP)
Co-operative Incentive Scheme (CIS)
Incubator Support
Programme
(ISP)
COMPETITIVENESS INVESTMENT
Sector Specific Assistance Scheme (SSAS)
Export Marketing & Investment Assistance (EMIA)
MANUFACTURING INVESTMENT
Manufacturing Investment Programme (MIP)
Capital Projects Feasibility Programme (CPFP)
12i Tax Incentive
Automotive Incentive Scheme (AIS)
Manufacturing Competitiveness Enhancement
Programme
SERVICES INVESTMENT
Film & Television Production
Business Process Services (BPS)
Tourism Support Programme (TSP)
INFRASTRUCTURE INVESTMENT
Critical Infrastructure Programme (CIP)
IDZs (SEZ)
Slide33 Programme Overview
1. BBSDP Objective 2. Guidelines
3. Contact Details
4. Questions and Answers
Contents
Slide4OBJECTIVE:To leverage the competitiveness of black owned enterprises and to broaden their economic participation by affording them access to affordable, quality business development services, on a cost sharing basis which are aimed at improvements in corporate governance,
management, marketing, productivity and use of modern technology ( tools , machinery or equipments )
FOCUS:
The focus is on formal black owned enterprises, that have the potential or capacity to supply goods and services to public and private sector corporate, on a sustainable basis.
BLACK BUSINESS SUPPLIER DEVELOPMENT PROGRAMME (BBSDP)
1. BBSDP Objective
Slide5To be eligible, enterprises should satisfy the following criteria:51% majority shareholdingR250,000 to R35 million turnover per year1 year in operation & trading as a business
50% management positions held by blacksVAT registered compulsory only for companies with annual turnover +R1m
BLACK BUSINESS SUPPLIER DEVELOPMENT PROGRAMME (BBSDP)
BBSDP Guidelines
Slide6Qualifying enterprises are eligble to receive a maximum of up to R1m grant Enterprises will receive grant value of 30% for the previous year turnover
Cost Structure is as follows: Max R800 000 being ring fenced for tools, equipment and machinery) –
50: 50
% cost sharing
Max R200 000 being ring fenced for business development services and training
– 80: 20 % cost sharing
BLACK BUSINESS SUPPLIER DEVELOPMENT PROGRAMME (BBSDP)
GUIDELINES
Slide7ENTERPRISE SUPPORT SERVICES (ESS) &COST SHARING Company diagnostics;Business Plan to raise finance
Management information systems (including production, sales, accounting software);Quality management system and assurance (e.g. International Organisation for Standardisation (ISO), certification, accreditation, grading costs);
Patenting and intellectual property rights
;
Production and productivity improvements
;
Product improvements;BEE rating and certification.TRAINING SUPPORT (TS) &COST
SHARING
Business management
(including planning,
organising
, finance, industrial relations, Human Resource (HR), business writing, business Information Technology (IT));
Corporate governance
(including roles/responsibilities of directors, line functions, conducting meetings, business ethics, compliance);
Negotiating skills and techniques
;
Tendering and contracting
;
Mentorship and coaching.
BLACK BUSINESS SUPPLIER DEVELOPMENT PROGRAMME (BBSDP)
GUIDELINES
Slide8Enterprises may apply for support in acquiring equipment under one of the following options : Examples Illustrated
Introducing a tool, machinery or equipment that will improve the entities productivity and competitiveness (eg. Deep Fryer, Grass Cutter Machine , Oven etc) To introduce a clean production process. To secure a contract or tender for which the equipment is essential.
To attain a grading to qualify the enterprise for new or bigger work
To enhance growth or efficiency through the use of IT for business.
GUIDELINES
BLACK BUSINESS SUPPLIER DEVELOPMENT PROGRAMME (BBSDP)
Slide9Excluded Interventions Office equipment, furniture and computer hardware costs, except for Business Process Services (BPS) applications;
Land and buildings;Working capital;Training programmes that exceed five (5) weeks or one-hundred and sixty (160) notional hours;
Long-term formal training (e.g. a Master of Business Administration), including training at accredited institutions such as universities;
Interventions that are already funded by another government scheme or
parastatal
;
Any other costs that the Adjudication Committee, in its sole discretion, deems as non-qualifying; and Design and printing of marketing material
Vehicles (sedan,
combies
, panel vans ,
bakkies
, trucks and trailers)
GUIDELINES
BLACK BUSINESS SUPPLIER DEVELOPMENT PROGRAMME (BBSDP)
Slide10ISP Incubator Support Programme10
Slide11Incubation Support Programme
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MARKET FAILURE
Low entrepreneurial base and start-up activities
Access to finance
Survivalist and informal sector
Youth unemployment
OBJECTIVES
Encourage private sector partnership with government to:
support incubators in order to develop SMMEs
nurture SMMEs into sustainable enterprises that can provide employment and contribute to economic growth
Slide12ELIGIBILITY CRITERIA
12
The applicant must either be a:
South African registered legal entity
registered higher education or further education institution
licensed and/or registered science council.
Qualifying incubators
New incubator / expansion of existing incubator
Offer physical and/or virtual incubation support services
A corporate incubator; a private investors’ incubator; an academic or research institution incubator in partnership with industry
Incubators focused on establishing and/or growing enterprises that will graduate to sustainable enterprises.
Slide13GRANT SUPPORT
13
50:50 cost-sharing support for large private sector investors
60:40 cost-sharing support for SMMEs
Capped at a maximum of R10 million per financial year over a 3 year period.
QUALIFYING COSTS
(infrastructure and business development services)
Business development services
Machinery, equipment and tools
Infrastructure linked to incubator (buildings, furniture)
Feasibility studies for establishing and expanding incubators
Product or service development
Information and Communication Technology
Market access
Operational costs
Slide14Framework for ProposalExecutive SummaryBusiness model of the incubator, target market & services
Operational plan, including intake & exit strategies for incubatees
Processes for monitoring & evaluating performance of
incubatees
Details of resources required to deliver on the services & control systems in place
Financial information outlining funding structure & sources of funding
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Slide15Evaluation CriteriaManagement competency with business backgroundComprehensive project proposal
Sustainability of revenue model proposedExtent to which partners are committed to & create market access opportunities for project arising out of the incubator
Realistic exit strategy & post-incubation plan
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Slide16Contact Details
1. Kgolane Thulare: Director
kthulare@thedti.gov.za
012 394 1794
3.
Vuyo
Zitha
Assistant Director
vzitha@thedti.gov.za
021 480 8059
BLACK BUSINESS SUPPLIER DEVELOPMENT PROGRAMME (BBSDP)
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