TEP Update_TEP Chief Executive

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

Indaba 2016 Tourism SMME Workshop

TEP Update

6 May 2016

SUCCESSFULLY DEVELOPING ENTREPRENEURS

FOR OVER A DECADE

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 1419

Enterprise Mentorships 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

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

• 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

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

Market Access - Indirect Tourism Businesses

The Amended B-BBEE Codes

Preferential Procurement, Enterprise Development and Supplier Development

TEP’s ESDS Model

With TEP’s Enterprise &

Supplier Development Solutions you can earn your full

40 Points for ESD

Preferential Procurement

25 points

ESD

40 Points

Over the past 14

years TEP has

developed a

database of

quality empowered

• Introduce new

Black Owned suppliers to replace non- complying suppliers

• Develop existing

Black Owned suppliers for increased procurement

r T ax P ro fit

= 1

0 P oin ts

B en efi cia rie s:

at 51

% bla

ck o w ne

d a nd w ith in

su

pp ly c

ha in

Supplier Development

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

ESDS – Indirect Tourism Database

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…)

ESDS Partners

ESDS Partners – cont.

Public Sector Partners (3rd Party Projects)

Access to Value Added Services

•Benefits of membership in TEP extend beyond access to the products and services described n previous slides

•Value adding services sourced from industry partners

•TEP’s strategy is to always be on the lookout for opportunities to develop strategic partnerships that will allow our SMMEs to access essential products and services at discounted rates, on the principles of volume and economies of scale

•Examples of value added services created by TEP for its members include the recently concluded agreements with

Grant Thornton Capital to provide financial and risk management training and solutions;

•Mango Juice, the inflight magazine of Mango Airlines, to provide advertising space for TEP’s SMMEs

In Conclusion…

MOBILISING INVESTOR FUNDING TO FACILITATE INCLUSIVE GROWTH AND TRANSFORMATION THROUGH

ENTERPRISE AND SUPPLIER

DEVELOPMENT

Thank You TEP.CO.ZA

011 880 3790

info@tep.co.za

STAND DEC 1D37