TEP Update_TEP Chief Executive

Indaba 2016
Tourism SMME Workshop
TEP Update

6 May 2016


SUCCESSFULLY
DEVELOPING
ENTREPRENEURS
FOR OVER A DECADE


Overview
o Non Profit Company
o Flagship public private partnership
o One of the longest standing and most successful
enterprise development partners for small tourism
businesses in South Africa
o Our mandate is to facilitate the growth, development
and sustainability of small tourism businesses
o We offer a number of interventions that provide
hands-on, step-by-step support and guidance to small
tourism businesses


Achievements (Target Delivery) for
2015-2016
SMMEs Registered and Paid

452

Enterprises Assessed (DNA)

344

Funding Contracts (BDF)

295

Individuals Trained
Enterprise Mentorships

1419
84

Jobs Created by Supported SMMEs

3523

Increase in Turnover by supported SMMEs(Rm)

R812m

Period – 1 April 2015 to 31 March 2016


Cumulative Impact Since Inception in 2000
o More than R550m invested in tourism SMME development
o Contributed to the generation of over R7 billion
o Supported the creation of over 83,000 jobs

o Trained over 25,000 SMME operators and employees
o Mentored over 450 small tourism businesses
o Client base of over 4000 SMMEs spread across all sectors of the tourism
industry


Demographic Segmentation
Total Size of TEP Database = 4 100
o Rural Enterprises = 2 365 (58%)
o HDE Enterprises = 2 789 (68%)
o Youth-Owned Enterprises = 540 (13%)
o Women-Owned Enterprises = 1 910 (47%)


Year Long Media Campaign


Programme Areas
•
•
•

The TEP-NDT 50/50 funding partnership of more than 10 years came to an end
on 31 March 2016
TEP’s programmes are now focused on three main areas:
Third Party Project Management
– Management of fully funded enterprise development and support projects for national,
provincial, and local government departments and related entities;

•

Enterprise & Supplier Development Solutions
– Implementation of Enterprise and Supplier Development (ESD) programmes for corporate
entities in line with the amended B-BBEE codes;

•

Workshops & Seminars
– Delivery of open-admission and issue-driven workshops and seminars to the public sector,
corporates, communities, and any other interested clients.


Matrix of Products and Services
•

Research has made it abundantly clear that in order to succeed, small businesses
need:
–
–
–
–

•

Access to information,
Access to skills and advice how to manage their businesses
Access to finance
Access to Market

To meet these needs, TEP has developed a sophisticated range of products and

services that offer compelling value propositions to clients.


Access to Information
•

It is a well-known truism that knowledge is power. TEP empowers entrepreneurs
by providing access to the critical industry knowledge and insights they need in
order to grow their businesses.

•

TEP’s access to information tools includes Wikitourism (www.wikitourism.co.za)
and Step UP (www.tep.co.za/StepUp).

•

In addition, TEP will be implementing a programme of issue-driven seminars and
workshops periodically and throughout the country. Topical, depending on the
issue of the day

•

Research and Development – SBP Reports


Access to Information

• An information portal for the tourism trade
• Based on Wikipedia concept

• Launched in 2013
• 100 000 unique visitors to date and growing

www.wikitourism.co.za


Access to Skills and Advice
•

Variety of sophisticated training courses designed to impart practical and technical
skills to entrepreneurs

•

Areas covered include marketing, management, finance, HR, and business
administration.

•

The curriculum comprises both one-day and two-day workshops designed to
maximize learning and minimize the time that entrepreneurs and their employees
have to spend away from their businesses.

•

Business advisory services, mentorship, and business incubation.


Establishment of First Tourism SMME
Incubator in Partnership with Credit Suisse

Graduation of First Cohort


Graduation of First Cohort


Access to Finance
•

As research shows, an inability to access loans to finance business growth and
expansion has always been a major challenge for small business owners.

•

In order to address this challenge, TEP has partnered with the Small Enterprise
Finance Agency (sefa) to establish the Ikwezi Tourism Facility.

•

Ikwezi provides business loans ranging from R10.000 to R5million at very
competitive rates.

•

Slow to start, but now in full motion. Go to www.ikwezifacility.co.za for more
information on Ikwezi

Ikwezi – Up and Running


Marketing Ikwezi


Access to Finance - BDF
•

With the establishment of the Tourism Incentives Programme at the National
Department of Tourism, and to prevent entrepreneurs from double-dipping, TEP
has decided to close down its well-known small grant-making unit, the Business
Development Fund (BDF), and encourage all SMMEs looking for grant funding to
apply directly to the NDT.

•

This will not only prevent double dipping, but will also allow TEP to re-deploy
funding to other services and interventions.


Access to Market
Small Tourism Businesses

•
•
•
•
•

Market Access Training
WTM Africa
Tourism Indaba
Getaway Show
Awareness Campaigns

Indirect Tourism Businesses


Market Access - Indirect Tourism Businesses


The Amended B-BBEE Codes
•

Five Elements in Revised B-BBEE Codes of Good Practice

•

Creation of Enterprise & Supplier Development - a priority element which combines
Preferential Procurement, Enterprise Development and Supplier Development


TEP’s ESDS Model

Be
ne
fi

1

cia % A
rie fter
s
ou : at Tax
tsi lea Pro
de st
f
of 51 it =
su % 5 P
pp bla oi
ly
c n
ch k o ts
ain wn
ed
an
d

Supplier Diversity = 1 Bonus Point
Job Creation = 1 Bonus Point

in

With TEP’s
Enterprise &
Supplier
Development
Solutions you
can earn your full
40 Points for ESD

ts with
oin nd
0P da
= 1 ne
w
fit
ro k o
x P lac in
Ta %b ha
ter 51 y c
Af at ppl
2% ries: su
cia

efi

Enterprise
Development

Preferential Procurement
25 points

n
Be

Over the past 14
years TEP has
developed a
database of

quality
empowered
tourism small
businesses
Business
analysis have
been conducted
to identify needs
Ready for
funders to
invest and
receive up to 15
B-BBEE Points

ESD
40 Points

• TEP can audit
clients existing
suppliers to
identify
developmental
needs
• Introduce new
Black Owned
suppliers to
replace noncomplying
suppliers
• Develop existing
Black Owned

suppliers for
increased
procurement

Supplier
Development


ESDS – Indirect Tourism Database
•

A carefully curated database of SMMEs in the following categories:
1. Manufacturers of uniforms for the hospitality industry
2. Producers of poultry and eggs
3. Suppliers of dry goods in bulk quantities (e.g.; cereals, sugar, tea, coffee…)
4. Producers of dairy products (e.g.; cheeses)
5. Suppliers of fresh fruit and vegetables
6. Suppliers of paper napkins and serviettes
7. Suppliers of operating equipment (e.g.; cutlery, crockery, cooking utensils, etc…)
8. Halal Catering
9. Carpet cleaning services
10. Garden services

•

All SMMEs in the database are at least 51% black-owned and are spread throughout the
country.

•

Vetted and ready for supply chain integration

•
•

A work in progress as we need to add more categories and SMMEs
Go to www.tep.co.za/esds to sign up


ESDS Partners