Current Edition >> Archives Section >> SMME Information >> February 2003

Business opportunities

Containerised mill for rural conditions
A low cost, containerised maize milling system that produces quality maize meal at high yield has been launched on the African market. This system can also be adapted to most other grains. The maize mill has a capacity of 500kg per hour and is suitable for grain milling in rural areas.
For further information contact:
ABC Hansen Africa Tel: 012-804-2033
Fax: 011-804-2034

South African Export Councils and Contacts
The dti promotes the formation of industry-based export councils.
For further information contact:
DTI Contact Centre, Tel: 0861-843-384
Website: www.thedti.gov.za/exporting/exportorganisations

Glass recycling
The Tshwane glass recycling project consists of primary and secondary glass recycling operations. It not only deals with waste but also is an example of how entrepreneurial skills can be put into practice.
For more information contact:
C J C van der Wath, Project leader
Tel: 012-337-4028
Fax: 012-324-6665

SABS and SMME Development
The SABS Missing Link Programme is tailor-made to provide training to SMME's in the following industries:
• Industrial Chemicals
• Welding
• Clothing
• Civil Engineering
• Marine products
For more information contact:
Tel: 012-428-7911
Fax: 012-344-1568
Website: ww.sabs.co.za

Starting and managing your own business - Ntsika http://www.ntsika.org.za/NtsikaBusinessPlanner/PlanIntro.htm
The objective of this website is to assist the SMME to "Start and Manage Your Own Business" by helping you with:
• Idea Generation for a New Business
• Testing the Feasibility of Business Ideas
• Testing the Viability of Business Ideas
• Spreadsheets to calculate Budgets
• Writing your Business Plan
You are required to register as a user (at no cost) with a login for the tests and business plan.

State of small business development in South Africa
Annual review 2001 now available from Ntsika.
Programme Design, Research & Information Division.
http://www.brain.org.za/SUPPORT/smmereports.html
Tel: +27 12 483 2000
Helpline: 0800 113857 (toll free)
E-mail: jsmit@nepe.org.za

Crafts South Africa Information Handbook
Published by the Department of Arts, Culture, Science and Technology, in collaboration with the National Craft Council of South Africa, this handbook has been written as a practical guide to all craftspeople or others wishing to start their own business. The topics covered are: products, business, funding and loans, promotions, marketing and selling.
Available from:
Dept. Arts, Culture, Science & Technology
Tel: 011-314-6911

Managing People in Small Business
By: John Stredwick
Publisher: Kogan Page, February 2002
ISBN: 074943662
Available from: www.kogan-page.co.uk
This book addresses all the key personnel areas such as, recruitment and selection, induction and training, improving performance, consultation and communication, health and safety, and disciplinary issues.

Your guide to A1 brick and block making
http://www.alpha.co.za/brochures/product_app/brick_block.pdf
This is a downloadable pdf file. The aim of this publication is to provide the information needed to set up and run a blockyard to manufacture concrete bricks and blocks on a small scale.

Useful websites

The Entrepreneurs' Chronicle
http://www.zeromillion.com/
Monthly newsletter on business, entrepreneurship & marketing

The Small Business Advisor
http://www.isquare.com/
Providing small and home based businesses with free information to help start and operate a more successful business.

Zeromillion
http://www.zeromillion.com/
Zeromillion.com Business, Marketing, Entrepreneurship Resource Center. Contains many useful articles for the entrepreneur.

Young entrepreneur
http://www.youngentrepreneur.com
Offers a high level of practical experience, know-how, contacts, and confidentiality. After signing up for free membership at YoungEntrepreneur.com you will have access to all the updated info.

Brainworks Incubator BTI
Ihttp://www.godisa.net/brainworksincubator.asp
Offers incubation services to the entire technology development and entrepreneurship value chain.

City of Johannesburg. Current tenders
http://www.joburg.org.za/help/tenders.stm
Procedures, contact details and listing of current tenders are given.

TradeBoss
http://www.tradeboss.com/default.cgi
A B2B marketplace designed to help companies in finding business partners from all over the world.

Equitable accreditation for SMME providers of education and training

Underlying principles

The promulgation of the SAQA Act in 1995 set the scene for the implementation of a National Qualifications Framework (NQF), an integrated education and training system that focuses on quality education for all. The South African Qualifications Authority's (SAQA's) mandate is to oversee the development and implementation of the NQF.

In order to fulfill this mandate, SAQA has three deliverables:

— The development and establishment of a standard-setting process whereby national standards and qualifications are registered via the Standard Generating Bodies (SGBs) and National Standards Bodies (NSBs).
— The development and establishment of a quality assurance process whereby providers of education and training are accredited via the Education and Training Quality Assurance Bodies (ETQAs).
— The development and implementation of a National Learners' Records Database where all learner achievements are recorded.

Small-, medium- and micro enterprises (SMME's) are defined in the National Small Business Act as a separate and distinct business entity, including non-governmental organizations, with less than 200 employees and an annual turnover of less than R10 million. SMME providers of education are one of the most important roleplayers in the delivery of quality education and training, but there is overwhelming evidence that indicates that SMME providers are finding it extremely difficult to participate in both the quality assurance and registration processes of the emerging system. This has prompted SAQA to include all the major SMME roleplayers in a research project to establish an equitable accreditation process for SMME providers. The research included a large-scale survey by the University of Pretoria, a workshop with ETQAs and a number of interviews with stakeholders.

The results of the research led to the development of a guideline document: Equitable Accreditation for SMME Providers of Education and Training. The guideline document will be available for public comment in the Government Gazette and on the SAQA website (www.saqa.org.za) after approval by the SAQA Board.

The SMME provider landscape

Many SMME providers came into being in protest to the unjust educational policies of the past. Others developed out of the need to train staff in specific skills, such as management and information technology. The financial range and viability of these providers differs substantially, with some barely able to make ends meet, and others generating substantial income. However, in the research, it has become evident that these providers are now finding it difficult to participate in the processes. The following barriers for SMME providers were identified:

— Documentation overload - the number and variety of documents that need to be completed in an application for accreditation are too many and too time consuming to complete.
— Location of ETQAs - SMME providers are spread out across the country often in remote areas, while the ETQAs are all located in major centres.
— Costs - the knowledge required to complete applications, the time away from business activities and the charges levied by ETQAs impact negatively on SMME providers.
— NQF structure - the NQF is currently perceived to be only structured to include programmes not smaller than 120 credits while most SMME providers offer courses that fall below 120 credits
— Accreditation requirements - interpretation of the SAQA minimum criteria for accreditation (SAQA 2001) varies from sector to sector resulting in some additional requirements being imposed on SMME providers

Ranking criteria for SMME providers: the National Small Business Act

In the research it also became evident that the ranking of SMME providers, as suggested in the National Small Business Act (1996) is problematic. This impacts on the level and extent of support SMME providers may require in terms of their accreditation processes. After consultation with SMME roleplayers, specifically the Department of Trade and Industry, an alternative set of ranking criteria were established and the following has been suggested:

— Survivalist - An enterprise that does not pay tax, does not employ any people and is not registered as a company with regard to the applicable legislation.
— Small - A separate and distinct business entity, with between 1 and 50 employees, an annual turnover of less than R1 million.
— World-competitive small-scale - A separate and distinct business entity, with less than 50 employees, an annual turnover of more than R1 million

This ranking is only a guideline and ETQAs are able to interpret them within their unique sectors. Although SAQA is not suggesting an identical ranking across all sectors, it is imperative that a specific ETQA implements a uniform ranking within a specific sector.

Support for SMME providers

The guideline document: Equitable Accreditation for SMME Providers of Education and Training, suggests that ETQAs support SMME providers during the accreditation process in the following ways:

— Financial assistance - in agreement with the Department of Labour it is suggested that ETQAs waive charges for survivalist and small providers, subsidize approved applicants and use a sliding scale when charging larger providers.
— Accreditation requirements - any additional requirements for accreditation that are imposed by ETQAs must be absolutely necessary and be accompanied by targeted support.
— Quality Advisors - the availability of ETQA staff that are able to assist providers (at no cost to survivalist and small providers) in the accreditation application.
— Pro-forma documents - these can include Quality Management Systems documentation, assessment and HR policies.
— Groupings/partnerships - providers be offered the opportunity to apply for assessment-only, or delivery-only status so that they are able to form a grouping with another provider.

In addition to the above SAQA suggests that providers, specifically the SMME grouping, be made aware of the alternative options to accreditation that are available in the various sectors. It is; however, important to note that such alternatives lie outside SAQA's mandate and that SAQA gives preference to the development of multiple pathways to achieve accreditation. Providers that do not consider it feasible to attempt accreditation as an individual organisation may opt to explore the following alternatives:

— Alignment with an accredited provider - a small unaccredited provider can align with a larger accredited provider, which will require of the larger provider to take responsibility for the internal quality assurance process. Examples include licensing, vendors, franchising, satellites and associates.
— Partnership with a lead provider - this alternative refers specifically to providers who submit tenders to government departments. The Department of Labour in particular has indicated the intention to build the capacity of SMME providers by compelling large providers to partner with SMME providers when applying for tenders. Part of such an agreement can include support to the SMME provider to achieve full accreditation status.

Conclusion
SAQA remains committed to the development and implementation of a NQF that contributes to the economic development of the nation at large. Therefore, the SMME providers of education and training should also be afforded the opportunity to participate in all the processes of the emerging system. The development of an equitable accreditation process for SMME providers, without compromising the minimum criteria for accreditation, is a step towards achieving the NQF objectives.