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19 th  March 2013  BLACK BUSINESS SUPPLIER DEVELOPMENT PROGRAMME (BBSDP) 19 th  March 2013  BLACK BUSINESS SUPPLIER DEVELOPMENT PROGRAMME (BBSDP)

19 th March 2013 BLACK BUSINESS SUPPLIER DEVELOPMENT PROGRAMME (BBSDP) - PowerPoint Presentation

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19 th March 2013 BLACK BUSINESS SUPPLIER DEVELOPMENT PROGRAMME (BBSDP) - PPT Presentation

BBSDP PRESENTATION SITA House Observatory Vuyo Zitha INCENTIVE SCHEMES CLUSTER INCENTIVE SCHEME BROADENING PARTICIPATION Black Business Supplier Development Programme BBSDP ID: 807716

programme business bbsdp development business programme development bbsdp amp support services black incubator supplier enterprises cost sharing guidelines equipment

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Slide1

19th March 2013

BLACK BUSINESS SUPPLIER DEVELOPMENT PROGRAMME (BBSDP)

BBSDP PRESENTATION @

SITA House, Observatory:

Vuyo

Zitha

Slide2

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)

Slide3

3 Programme Overview

1. BBSDP Objective 2. Guidelines

3. Contact Details

4. Questions and Answers

Contents

Slide4

OBJECTIVE: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

Slide5

To 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

Slide6

Qualifying 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

Slide7

ENTERPRISE 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

Slide8

Enterprises 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)

Slide9

Excluded 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)

Slide10

ISP Incubator Support Programme10

Slide11

Incubation Support Programme 

11

 

 

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

Slide12

ELIGIBILITY 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.

Slide13

GRANT 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

Slide14

Framework 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

14

Slide15

Evaluation 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

15

Slide16

Contact 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)

Slide17

17