Opportunities for SMMEs

in the Tourism Sector

Introducing the

Tourism Enterprise

Partnership

Dr. Salifou Siddo

SUCCESSFULLY

DEVELOPING

ENTREPRENEURS

FOR OVER A DECADE

The Faces of Job Creation

Ntwanano Tours Sertorio Mshthola

Employing 5

Cresco Tours Lucille Cremen

Employing 5

Roots Restaurant Reggie Makhetha

Employing 6

Supporting tourism entrepreneurs to develop product, improve quality, access markets, increase turnover and create new jobs

Aahaah Shuttles Zandile Dhlamini

Employing 2

Usisi Designs Stella Pretorius Employing 65

Mutariko Arts Godfrey Dupwa Employing 10

Zulu-lulu Stuart Tompkins

Employing 8

Reatswelela Nkele Motsoaledi

Employing 10

Robert and Sons Rob Chimungwa

Employing 5

Vuwa Safaris Stan Mufamadi

Employing 5

Nutting House Ethel Shongwe Employing 20

The Orchards Salome Tshungu

Employing 13

Ingwenya Wires Enock Ngwenya

Employing 2

Villa Anne Thandie Sibande

Employing 6

Linga Longa Nelly Mashinini

Employing 6

Boi Travelling Mich Boikanyou

Employing 5

African Link Bunny Bhoola Employing 16

Matopos Lodge Amos Mdluli Employing 10

Kay 2ze Gee Kagiso Legobe Employing 8

Kuhle Tours Sindi Mshengu Employing 16

Matsamo Park Dudu Ngomane Employing 35

Bo Kaap Kombuis Yusuf Larney Employing 10

Linsy Paradise Linsy Maseme Employing 2

Mpu Performing Art Sifiso Hlatshwayo

Employing 5

Ilios Travel Mohamed Baba

Employing 73

NK Charters Esa Yacoob

Employing 23

Mankwe Safaris Bernard Marobe

Employing 18

The Faces of Job Creation

Accelerating growth and transforming the economy to create decent work and sustainable livelihoods

Rita Moyo Age: 50

Office Cleaner 2 Years

Rampai Age: 39 Guide

3 Years

Gladys Age: 58

Office Admin 1 Year

Eva Tourism Trainee

Age: 19 Oct & Nov 2013

Dumi Driver

Age: 41 2,5 Years

Ngale Rehlapane Age: 29

Kitchen Manager 4 Years

Hlulani Siweya Age: 25

Manager 1 Year

Tinny Mbara Age: 28

Receptionist 1 Year

Mpho Maphelela Age: 30

Receptionist 1 Year

Portia Thole Age: 30

Ceramasist 2 Years

Mashudu Age: 29 Director 5 Years

Fortune Mokgehl Age: 29

Manager 5 Years

Nelsy Mnisi Age: 28

Ops Manager 1 Year

Johannah Mvalo Age: 49 Cleaner Jul 2009

Tauriq Ederies Age: 29

Kiosk Operator Aug 2011

Kendall Wilson Age: 25

Ops Manager Jan 2009

Janine Wilson Age: 36

Supervisor 1 Year

Mariette Apollis Age 25

Waitress 2 Years

Nurahn Galant Age: 25

Reservations 3 Years

Bukiwe Mangqan Age: 29

Reservations 3 Years

Abdurach Galant Age: 21

Operations 2 Years

Alistair St. Clair Age: 30

Ops Manager 1,5 Year

Eunice Lugalo, Manager Age: 53 3 Years

Julia Solms Assist. Manager

Age: 34 1 Year

Sylvia Ruiters, Manager Age: 47 6 Years

Angie Muchekeni Housekeeper

Age: 26 2 Years

Sewela Kgatla Age: 24

Consultant 1 Year

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

Track Record Since Inception in 2000

o More than R550m invested in tourism SMME development

o Contributed to the generation of over R6,4 billion

o Supported the creation of over 75,000 jobs

o Trained 24,000 SMME operators and employees

o Mentored 422 small tourism businesses

o Client base of over 3,500 SMMEs spread across all sectors of the tourism

industry

o Corporate fundraising programme - EDP and now ESDS that is becoming

increasing successful

o Well establish practice of cost sharing partnerships with provinces

o Third party project management that contributes to TEP

mandate – Cathsseta Learnership Programme

Board of Directors

The Faces of Job Creation

National Team

Service Offering

Business registration and DNAs

179 DNAs completed

920 registered clients

Business Registration and Support

Development Needs Assessment (DNA)

Skills Development

Mentorship Programmes

Training Workshops

Learnerships

• Assessment and matching

• 6 months mentorship

• Growth Plan

• 268 learnerships implemented

for CATHSSETA

• 218 completed the programme

(85%)

Marketing and Access to Markets

• Rennies Red Stamp

• Advertising and PR

• ETEYA

• Power of One

• Events and Exhibitions

• Indaba

• Getaway

• Vakantiebeurs – Netherlands

• SIPPO European Trade Mission

Access to Finance - BDF

Business Development Fund (BDF)

469 enterprises received BDF grants

126 of these enterprises were rural

339 of these enterprises were HDEs

A total of 78% for market access and marketing related support

Access to Finance – ikwezi Tourism Facility

Rationale for ikwezi Tourism Facility

o Access to finance has been the missing link in TEP’s work

o TEP has been looking for ways to address this challenge

o sefa (Small Enterprise Finance Agency) on the other hand has been looking

for ways of mitigating the inherent risk in providing financing to small

businesses

o The idea of a mutually beneficial partnership between sefa and TEP was

thus born and conceptualised into the ikwezi Tourism Facility which was

launched at the Tourism Indaba in Durban in May this year

ikwezi Tourism Facility - cont.

o The ikwezi Tourism Facility – ikwezi or ITF for short - is a R50m revolving

financing facility available exclusively to TEP registered clients

o ikwezi provides financing ranging from R10 000 to R5m

o Repayment terms range from 3 months to 5 years

o Interest rates charged range from prime plus 1.60% to 3.60%, substantially

lower than commercial banks

o TEP clients may approach ikwezi for Bridging Finance, Capital equipment

finance, and business expansion finance

o TEP will perform the technical due diligence of applications

o sefa will perform the credit vetting component of applications

www.ikwezifacility.co.za

Access to Information

• An information portal for the tourism sector

• Based on Wikipedia concept – collaborative content/information generation

www.wikitourism.co.za

• 45 000 unique visitors

• Over 110 000 pages read

Impact - Turnover

R850 million increase in turnover

Impact - Jobs

4 040 jobs created by TEP supported enterprises

Comparative Assessment

The Small Business Project (SBP) 3-Year Longitudinal Study

Comparative Assessment

Barriers to employment according to survey participants

• Labour legislation

• Lack of skills

• Seasonal nature of work

• Staff turnover

A substantial minority put forward concerns about taking on new employees due to

inflexible employment legislation.

Comparative Assessment

Impact of TEP services – Most impactful services according to survey participants

Comparative Assessment

Fundraising and Partnerships

Vision for SMME Development Going Forward

TEP Business Model

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 invests and

receive up to 15

B-BBEE Points

Enterprise

Development

Supplier

Development Supplier Diversity = 1 Bonus Point

Job Creation = 1 Bonus Point

ESD

40 Points

• TEP can audit

exciting suppliers,

calculate current

spend and

potential points

earned

• Introduce new

Black Owned

suppliers to

replace non-

complying

suppliers

• Develop existing

Black Owned

suppliers for

increased

procurement

ESDS MODEL – Enhanced Opportunities for SMMEs

With TEP’s

Enterprise &

Supplier

Development

Solutions you

can earn your full

40 Points for ESD

Preferential Procurement

25 points

In Summary…

- Ikwezi for competitive business finance

(in partnership with sefa)

- Wikitourism for information relating to

the tourism industry

- ESDS for procurement opportunities for

direct and indirect tourism SMMEs

TEP Contacts:

info@tep.co.za – Head Office

Akhonam@tep.co.za – EC Office or

(043) 748 2345

www.tep.co.za - Website

THANK YOU