SMME BUSINESS OPPORTUNITIES

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SMME BUSINESS OPPORTUNITIES 2010
LINDSAY DANILLER 24 August 2007
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BACKGROUND ON TEP
The Tourism Enterprise Programme (TEP) is a
public-private partnership between the Department
of Environmental Affairs and Tourism (DEAT) and
the Business Trust.
TEP facilitates the growth and development of
small, micro and medium-sized enterprises (SMMEs)
in the tourism economy, resulting in income
generating opportunities and sustainable job
creation.
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TEPs MISSION AND VISION
TEPs vision directly mirror national policy and
current social and economic development goals.
Programme Mission
The programme aims to make a significant
contribution to the national objective for the
growth, transformation and integration of the
South African Tourism Industry,
Programme Vision
To create a more enabling environment at
enterprise, local, provincial, and national
levels to unlock the potential for SMMEs to
benefit from the tourism economy in a sustainable
manner.
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RESULTS OF TEP
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TEPS BUSINESS MODEL
Output 1 Income Generation
Output 2 Job Creation
Output 3 Skills Development
Output 4 Transformation
Outputs
Facilitation Solutions
1 Integrated national service delivery
2 Market driven sustainability and
transformation
3 Stakeholder collaboration and leverage
4 Research and international best practice in
economic development
5 Assist government in its role to enable
enterprise development
Key Pillars Geared towards ASGISA, BEE, Second
Economy, and 2010
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TEP and 2010
As part of a focused strategy for both 2010 and
ASGISA, TEP has
- Developed the 2010 Programme - Increased
assistance for TGCSA Star Grading - Expanded the
TEP Toolkit Project - Aligned the TEP Training
Programme The objective is to assist SMMEs in
the tourism industry to benefit from the overall
opportunity offered by the 2010 FIFA World Cup
South Africa.
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What is the 2010 Programme?
The programme is a national research strategy to
determine - What SMME tourism products exist -
Where SMMEs are located - What services SMMEs
offer to the tourism consumer - What skills
SMMEs require - Whether SMMEs meet quality
assurance standards - A diagnosis of the tourism
business and economy
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Where will the research be conducted?
HOST CITIES Bloemfontein Cape Town Durban Johannes
burg (North South) Nelspruit Polokwane Port
Elizabeth Rustenburg Tshwane
GCP AREAS Drakensburg East London Elephant
Coast Panorama Region Central Limpopo Pilanesburg,
Madikwe Mafikeng
SATELLITE COMMUNITIES Currently being identified
by MATCH
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Products Sub-Sectors to be surveyed
- Accommodation - Transportation - Entertainment
(including street performers /storytellers) -
Historical, Heritage and Archaeological sites -
Nature-based activities - Arts Craft - Tour
Operators and Tour Guides - Food and Beverage
establishments
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Who are the Stakeholders?
- Tourism SMMEs - Department of Environmental
Affairs and Tourism - MATCH - Tourism Grading
Council of South Africa - South African Tourism
- Provincial Tourism Authorities - Local and
District Municipalities - 2010 Host City
Committees - National and Local Tourism
Associations
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What are the deliverables?
- Recommendations for local tourism development
for each area as well as for tourism capacity
development - The tourism status of each area
identifying weaknesses both in suppliers and
infrastructure and service, product and quality
gaps - The status and effectiveness of emerging
SMMEs in the light of 2010 strategies and
guidelines with associated recommendations -
Compliance, Quality Assurance, Skills, and
Training needs - Tourism SMME Databases -
Solutions identified to develop the product in
readiness for and to ensure that businesses are
sustainable beyond 2010 - Business support
service linkages and synergies
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SMME Support
TEP has enhanced the assistance provided to SMMEs
for TGCSA Star Grading as follows
- First Year Grading Fees 50 contribution
towards grading costs - Second Year Grading Fees
50 - Third Year Grading Fees 25
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TEP Toolkits
Topics include - Legalities and Compliance -
Website Planning and Development - Business
Planning - Marketing in Tourism - Quality
Assurance and Customer Care - Tourism Channel
- Communication in Tourism - Business
Administration in Tourism
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What does TEP do?

• TEP helps SMMEs to
• Identify business opportunities in the tourism
  value chain,
• Equip themselves to take advantage of these
  opportunities through capacity building
  initiatives.

This process ensures the successful conclusion of
transactions, which in turn leads to revenue
growth for the SMME and in time this leads to the
sustainable creation of jobs.
TEPs services consist of Non Financial or
Indirect Technical Assistance, and Financial or
Direct Technical Assistance.
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Who will TEP assist?

• TEPs primary beneficiaries are SMMEs which are
  categorised as
• follows
• Direct Tourism Enterprise
• SMMEs that fall directly within the tourism
  industry, such as tour operators, travel agents,
  crafters, small hotels and BBs.
• Indirect Tourism Enterprises
• SMMEs that are not directly related to tourism
  but supply a range of goods and services to
  tourism organisations.n/

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How does TEP assist?
Types of services TEP offers, include (but are
not limited to)

• Professional Services Assistance
• Business Plans, Feasibility Studies, Marketing
  Strategies, Research
• Operational Assistance
• Accounting, Legal, Tendering, Certification,
  Licensing, etc.
• Marketing Assistance
• Exhibitions, Brochures, Websites, Advertising,
  Memberships, etc.
• Training
• Assistance with attending approved tourism
  related training courses
• Business Development Services
• Assistance with improving the quality of
  services provided, by independent fee charging
  service providers, in the SMMEs market.
• Development of HIV/Aids Workplace Programmes

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The TEP TTAF Fund can not

• Be used to provide finance (debt or equity) or
  purchase assets of any kind. This includes
  vehicles, computer hard-ware and software,
  equipment, buildings, etc.
• Be used as a loan or investment fund in any
  manner nor take equity in a SMME
• Be used to fund costs of a working capital or
  recurrent nature
• Whilst TEP assists SMMEs in identifying suitable
  finance, be it from banks or non-bank financial
  institutions, the TTAF fund cannot be used as a
  bridging mechanism or in any other way to provide
  such funding

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What you must know

• SMMEs must be registered with TEP and must apply
  for each activity/assistance separately in
  advance.
• TEP cannot get involved after the service has
  already been provided or the event has taken
  place.
• TEP is required to maintain good governance
  regarding the use of donor funds and as such TEP
  requires very comprehensive documentation from
  our SMMEs and we spend much time in the proper
  validation of information.
• Registration and receiving assistance from TEP is
  free of charge. However the TTAF fund works on a
  cost
  sharing basis.

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Criteria for support

• To be eligible for participation, an enterprise
  should be
• An SMME (direct or indirect tourism enterprise)
• Already in business or with a viable and
  sustainable business idea
• Able to demonstrate growth potential
• A legal entity (TEP can assist the enterprise to
  become legal)
• Willing and able to share costs of the assistance
  
• Willing and able to provide monthly information
  on turnover and jobs
• It is a requirement that 75 of SMME assisted by
  TEP be owned and managed by historically
  disadvantaged South Africans (HDEs exclude white
  females and the white disabled)

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Growing SMME Business Together
sTEP by sTEP!
Thank You
www.tep.co.za / 011 804 5750