SOUTH AFRICAN SMES

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AGENDA
1. COUNTRY OVERVIEW
2. SME DEFINITION 3. CONTRIBUTION TO ECONOMY

4. KEY INDUSTRIES OF SMES

5. DRIVERS & BARRIERS 6. FREE TRADE AGREEMENTS

7. PUBLIC SECTORS ROLE IN SME

INTERNATIONALIZATION
8. PROCESS OF INTERNATIONALIZATION

COUNTRY OVERVIEW
POLITICAL
Aparheid policy (1948-1994)
GOVERNMENT: Parliamentary Representative Democratic

President serves as head of State and head of Government

Provincial legislatures 26 parties Ruling party: ANC (African National Congress) 65,9% Elections take place every 5 years.

Retrieved from: http://en.wikipedia.org/wiki/File:Houses_of_Parliament_%28Cape_Town%29.jpg

COUNTRY OVERVIEW
SOCIAL
APARTHEID POLICY UNTIL 1994
POPULATION: 51, 770, 560 (2011)

LANGUAGES: 11
UNEMPLOYMENT RATE: 24,1% (2011) 2nd highest number of HIV/AIDS patients

Retrieved from: http://www.bbc.com/news/world-africa-14094918 Retrieved from: blog.peaceplayersintl.org

COUNTRY OVERVIEW
ECONOMIC
Continents biggest economy
Member of the BRICS club of emerging world economic powerhouses.

INFLATION RATE: 5.4% (2013)

GDP GROWTH: 3.8% (2013)

Retrieved from: http://www.bbc.com/news/world-africa-14094918 Retrieved from: http://beta2.statssa.gov.za/?page_id=735&id=1

SME DEFINITION
The National Small Business Act

(102 of 1996) defined small business medium, small, very small and micro enterprises based on certain characteristics.
The National Small Business

Sector or subsector in accordance with the standard Industrial Classification Agri cul ture

Size of class Medi um Sma l l Very Sma l l Mi cro

The total fulltime equivalent of paid employees 100 50 10 5 200 50 20 5 200 50 20 5 200 50 20 5 200 50 20 5

Total turnover R5m R3m R0.50m R0.20m R39m R10m R4m R0.20m R51m R13m R5m R0.20m R51m R13m R5.10m R0.20m R26m R6m R3m R0.20m

Total gross asset value (fixed property excluded) R5m R3m R0.50m R0.10m R23m R6m R2m R0.10m R19m R5m R2m R0.10m R19m R5m R1.90m R0.10m R5m R1m R0.50m R0.10m

Mi ni ng a nd Qua rryi ng

Medi um Sma l l Very Sma l l Mi cro

Amendment Act (26 of 2003) aimed to update and further define business.
11 sectors/subsectors

Ma nufa cturi ng

Medi um Sma l l Very Sma l l Mi cro

El ectri ci ty, Ga s a nd Wa ter

Medi um Sma l l Very Sma l l Mi cro

4 size categories
Cons truction

Medi um Sma l l Very Sma l l Mi cro

Retrieved from: The Banking Association of South Africa. The National Small Business Amendment Act (26 of 2003). http://www.banking.org.za/index.php/our-industry/small-medium-enterprise/small-business-definition/

SME DEFINITION
Re ta i l a nd Motor Tra de a nd Re pa i r Se rvi ce s Me di um Sma l l Ve ry Sma l l Mi cro Whol e s a l e Tra de , Comme rci a l Age nts a nd Al l i e d Se rvi ce s Me di um Sma l l Ve ry Sma l l Mi cro Ca te ri ng, Accommoda -ti on a nd othe r Tra de Me di um Sma l l Ve ry Sma l l Mi cro Tra ns port, Stora ge a nd communi ca ti ons Me di um Sma l l Ve ry Sma l l Mi cro Fi na nce a nd Bus i ne s s Se rvi ce s Me di um Sma l l Ve ry Sma l l Mi cro Communi ty, Soci a l a nd Pe rs ona l Se rvi ce s Me di um Sma l l Ve ry Sma l l Mi cro 200 50 20 5 200 50 20 5 200 50 20 5 200 50 20 5 200 50 20 5 200 50 20 5 R39m R19m R4m R0.20m R64m R32m R6m R0.20m R13m R6m R5.10m R0.20m R26m R13m R3m R0.20m R26m R13m R3m R0.20m R13m R6m R1m R0.20m R6m R3m R0.60m R0.10m R10m R5m R0.60m R0.10m R3m R1m R1.90m R0.10m R6m R3m R0.60m R0.10m R5m R3m R0.50m R0.10m R6m R3m R0.60m R0.10m

SME DEFINITION

Retrieved from: http://www.absa.co.za/deployedfiles/Absacoza/PDFs/Media%20Releases/Absa%20SME%20Index%20Launch.p

SME CONTRIBUTION TO ECONOMY

QUESTIONS?

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