Small business development and support programme

In response to growing socio-economic disparities in the region, the Cape Winelands District Municipality (CWDM) initiated the Small Business Support Development Programme (SBSDP) in 2004. The programme seeks to:

• provide local citizens with opportunities to proactively participate in the mainstream economy
• facilitate job creation within the wider CWDM economy
• develop small farm agriculture with an agro-tourism focus where appropriate
• promote the creation and growth of enterprises owned and managed by small business entrepreneurs
• facilitate the development of skills among business owners and employees as a mechanism to enhance sustainable business practices and development
• assist start-up, emerging and established businesses with enterprise planning and development support
• develop business support structures to cater for the varying needs of the area-specific businesses, investors and other parties

In order to achieve these objectives, an implementation plan informed by four strategic pillars has been developed. The four pillars comprise:

• training and skills development programme
• business planning and development support (BPDS)
• business mentoring and handholding programme
• business linkages and market development programme

The core of support was identified as assisting SMMES in drafting proper business plans and complying with business regulations. After the formalisation of the businesses, CWDM was tasked with equipping the emerging entrepreneurs with necessary skills and helping them forge alliances or networks.

Training and skills development programme

The initial focus of this programme is to identify and enlist existing small businesses registered with their respective SETAs in order to access SETA-accredited training services through the service provider. The programme provides regular workshops and seminars on essential business practices, statutory registration processes and procedures and skills training in business principles covering topics tailored to the needs of SMMEs. The programme involves the provision of the following services:

• principles of business development and operations
• leadership, entrepreneurial and management training
• development of information and communication technology skills
• customer relationship services and management
• vocational training

BPDS

This is the most popular and essential part of the programme. It includes access to finance information and facilities not commonly available to small businesses outside the Cape Town metropolitan area.

The determinants of the programme are:

• access to information for business planning and market development
• financial advice and management (including personal financial management)
• business marketing (promotion, communication, advertising etc.)
• accessing business financing programmes
• developing market research strategies

The business planning component attracted the largest number of small businesses, largely due to the financing aspect and the assistance provided to small businesses in researching and developing business plans for the purpose of applying for financial assistance from government-sponsored programmes. Businesses are also assisted in identifying target customers and markets and the strategies to be used in creating market awareness of their products and services.

Business mentoring and handholding programme

The critical mentoring phase of the programme ensures that emerging entrepreneurs are equipped with the adequate skills and funds and appropriate business etiquette. The Cape Winelands District Municipality has made considerable progress in this regard. It participates in building SMME capacity and is proactive in drafting small entrepreneurs' business plans. Furthermore, CWDM is committed to assisting and guiding SMMEs in setting up proper accounting and production records. By developing such skills, emerging entrepreneurs are better able to negotiate for funding from the government and potential donors. Provincial initiatives such as Ikapa Elihlumayo have helped SMMEs to realise their potential.

Business linkages and market development programme

CWDM engages procurement officials in all municipalities to ‘ring-fence' opportunities for black SMMEs as a means of getting them involved in hitherto out-of-reach opportunities in the mainstream economy. CWDM plays a role in forging alliances or linkages between emerging and already established businesses, including:

• formalising SMMEs as legal entities through CIPRO
• registering SMMEs in the SARS taxation system
• registering them for regional services levies and other government/municipal statutory requirements

Small Scale Farmers Support Programme

Given the high barriers to entry within the Agricultural industry (such as high cost of land, limited water resources high capital input requirements, relatively low skills levels, and slow pace of land reform within the district) a Small Farmer Support Programme was implemented by the CWDM in 2005 to fast track transformation within the sector. This programme provides grant funding to small black farmers in the district within niche activities that have been identified in the CWDM agricultural sector study. It also funds other related activities with the agricultural sector, such as within tourism and services.

The small farmer programme augments existing government agricultural funding programmes such as Land Care and the Comprehensive Agricultural Support Programme. Indeed the district grant is often a catalyst for further funding from government for such projects. All projects are approved through the District Assessment Committee – a multi stakeholder structure that oversees all land reform within the district. Partners such as the Department of Agriculture and the University of Stellenbosch assist in providing technical support to the small farmers on the programme.

Entrepreneurial Partnership Programme

The CWDM established an Entrepreneurial Partnership Programme in 2005. This programme was established as a direct consequence of feedback received from the CWDM Small Business Programme.   The Small Business Programme offers support to SMMEs within the district such as: business training, mentorships and business linkages.   The vast majority of SMMEs benefiting from this assistance are micro-sized business start ups.   Access to seed funding support in order to purchase initial equipment and supplies has been identified as a significant obstacle that is impacting negatively on the success of these firms.

The objective of the Entrepreneurial Seed Programme is to provide limited grant funding to SMMEs within the district that require seed capital in order to establish themselves and/or grow.   The funding will mainly be allocated in the form of a grant in-kind, for example through the purchasing of equipment or supplies on behalf of the SMME by the district municipality.

Wolwekloof Youth Academy

Significant progress has been made in implementing the Wolwekloof Learning Academy.   The aim is to create a multi-purpose residential academy (not just a facility) that is a centre of learning that targets youth and creates employment opportunities linked to the unique environmental qualities of the site.   During 2005/06 a the technical project project management team undertook extensive community consultation, appointed architects and contractors for the site, developed the educational project concept further, cleared the site through a partnership agreement with Cape Nature, trained 24 unemployed youth in environmentally sustainable construction methodologies, and developed a learnership programme with regard to the latter. The technical Swedish partners from the Kalmar region were present at the launch and opening of the project in February 2006.   Construction started on site in March 2006.

The project received R 2.5 million additional funding through the department of Social Services and Poverty Alleviation, one of the main project partners.   The technical task team has representation from the CWDM, the provincial departments of Social Services and Poverty Alleviation and Local Government, the LGWSETA, the Division for Life Long Learning in the Western Cape and Cape Nature.   The technical representatives report to their political principals on an ongoing basis.

Great Wine Capitals Global Network

The Global Network of Great Wine Capitals, which embraces Melbourne, Bordeaux, San Francisco - Napa Valley, Porto, Cape Town- Cape Winelands, Bilbao-Rioja, Florence and Mendoza, works to encourage international winery tourism, as well as economic, academic and  cultural exchanges between these famous capitals of wine.

The Cape Winelands renewed its membership of the Great Wine Capitals Global network in 2005/06.

International activities of the Network include: the management of the GWCGN, an e-Newsletter, a ‘Best Of...Wines' Competition, collective marketing of the wine regions, and the development of a Business Club.   The South African chapter has championed additional activities such as the training of cellar door staff and doctoral level research.

Cape Winelands District Municipality (CWDM) / South African Netherlands Chamber of Commerce (SANEC) export development programme

The Cape Winelands District Municipality (formerly known as the Boland District Municipality) and the South African - Netherlands Chamber of Commerce (SANEC) signed an export development programme agreement on Thursday, 4 March 2004.   The objectives of the export development programme is to establish a long term exchange of trade, investment and skills between the Cape Winelands District and the Netherlands in the logistic, tourism, manufacturing, services and agriculture sectors.

The Cape Winelands District Municipality and the South African – Netherlands Chamber of Commerce agreed that in order to facilitate this exchange of trade, investment and skills is to undertake inbound and outbound trade missions between the two institutions. In November 2004 the first successful initiative as an outcome of the signed M.O.U. took place. A trade mission with companies from the Cape Winelands District visited the Netherlands. The SANEC matchmaking programme was a key mechanism for the trade mission. SANEC and the Cape Winelands District Municipality proved to be successful in linking South African and Dutch companies and branding the Cape Winelands as an investment location for the Dutch business community. At the same time in November 2004, a trade mission from the Netherlands visited the Cape Winelands district to explore cooperation opportunities with companies in the region.

The Cape Winelands District Municipality entered into a second agreement which was signed on 13 June 2005.   A number of factors have led to the signing:

These factors include:

• A co-operation agreement between a Netherlands based tertiary institution, the NHTV, and the CWDM regarding an exchange of tourism students. Fourth year tourism students from the NHTV are place within the CWDM for a period of 3 to 4 months to prepare their theses on topics agreed to with the CWDM. Thus far studies have been conducted on: the tourism market within the CWDM; business opportunities within the sector; development of an Arts and Craft Route; and the development of a Freedom Route. Two students from the district is attending an international tourism course at the NHTV.
• The annual attendance by the CWDM of the major tourism trade show in Utrecht given that the Netherlands is one of the major markets for the district.
• The facilitation of a Call Centre in partnership with the Pioneer School for the visually impaired in Worcester. To date 12 jobs have been created for the visually impaired out of a projected 50 jobs that will be created.

The second agreement entails the establishment of an investment desk within the SANEC Hague Offices which provides:

• Regular direct mailing of information to the CWDM to all SANEC members and networks partners.
• Informing the CWDM of opportunities to attract Dutch investment.
• Assistance to Cape Winelands companies entering the Dutch market.
• The handling of trade enquiries with regard to the Cape Winelands.
• Establishing contacts with umbrella Dutch Companies.
• Promotion of trade events, seminars, business luncheons, etc.Â

With its extensive network within the Dutch government and Dutch business community, SANEC could be used by the Cape Winelands business community as a gateway to the Netherlands and the European market. SANEC operates from offices in The Hague, the Netherlands, (with strong links to Brussels in Belgium), Johannesburg and a representative office in Cape Town, which enables it to serve as a one-stop-shop for companies from the Cape Winelands which have plans to export, or which are already exporting to the Netherlands.

LED Information Management

CWDM Agricultural Sector Study

A CWDM Agricultural Sector study was undertaken and completed in 2003. The aim of the study was to undertake an analysis of the agricultural sector to inform support interventions by the Cape Winelands District Municipality (CWDM) that promotes the growth, diversification and transformation of the sector.

CWDM Manufacturing Sector Study

A CWDM Manufacturing Sector Study was undertaken and completed in 2004. The aim of the study was to undertake an analysis of the manufacturing sector to inform support interventions by the Cape Winelands District Municipality (CWDM) that promotes the growth, diversification and transformation of the sector.

CWDM Services Sector Study

A CWDM Services Sector Study was undertaken and completed in 2005. The aim of the study was to analyse the services sector (financial services, retail, property and transport) to inform interventions by the Cape Winelands District Municipality that promotes the growth, diversification and transformation of the sector.

CWDM Firm-level Study

A CWDM Firm-level study was undertaken and completed in 2005. The aim of the survey was to obtain the latest information on the structure and performance of firms in different sectors of the economy in the district as well as how businesses perceive the business environment in the district.

CWDM Tourism Visitor Study

A CWDM Tourism Visitor study was undertaken in the first half of 2006. The aim of the study was to provide accurate information on the number of tourists (both international and domestic) that visit the Cape Winelands district.

Cape Winelands Growth and Development Strategy

In 2006 the Cape Winelands embarked on drafting their Growth and Development Strategy.   Consultants were appointed in February 2005 to consolidate the existing sectoral and firm level studies of the district, policies and legislation pertaining to economic development, and socio-economic research on the district into a single document.   This document was then discussed through a series of consultations with local municipalities, businesses, councillors and the community between May and June 2006.   The final product was a draft strategy that has formed the basis for extensive sectoral engagements in preparation for a district Growth and Development Summit in November 2006.

Quarterly Tourism Visitor Statistics Reports

Local Tourism Associations within the District provides tourism visitor statistics to the CWDM for dissemination. The Business Intelligence Unit produces quarterly Tourism Visitor Statistical Reports.

CWDM Electricity Survey

In the period between February and May 2006, the Western Cape was hit by a series of electricity- cut offs. Undoubtedly, the rolling black-outs had a negative impact on the economy of the Western Cape Province at large. In this age of global connectivity and technology, a temporary power failure can cost businesses (and the country) billions of rands. It is not surprising therefore, that almost all residents in the Western Cape were highly irritated and frustrated by the rolling black-outs that lasted for almost three months. The main objective of this survey therefore was to ascertain and/or quantify the impact of electricity shortfalls in the Cape Winelands' major economic sectors.

Investment Opportunities Advertorials

The Business Intelligence Unit has produced various trade investment advertorials during the 2005/2006 financial year. The investment advertorials highlighted business opportunities in tourism, services sector, small farmer support, investment desk in the Hague, and individual small businesses seeking investment.