South African Business 2016 edition

INTERVIEW Job creation

INTERVIEW Job creation on track Alan Winde, Minister of Economic Opportunities for the Western Cape Government, on the drive for employment. Alan Winde BIOGRAPHY Alan Winde became MEC for Finance, Economic Development and Tourism in May 2009, shortly after the Democratic Alliance won the Western Cape Province. Winde has been a member of the Western Cape Provincial Legislature since 1999. During his first term he served as provincial fi nance chairman and executive committee member with the Democratic Party. He has also served as chief whip of the offi cial opposition in the West ern Cape, as the DA spokesperson on Environment and Planning and as the deputy DA spokesperson on Economic Development and Tourism. The Western Cape Government’s fi rst strategic goal is to create opportunities for jobs and growth. At the start of a new fi ve-year term, this government has taken a new, focused approach to achieving its goals. We are currently engaging with the private sector to develop action plans for high-potential sectors where we have a clear competitive advantage. This process is called Project Khulisa. Khulisa means ‘to grow’ in isiXhosa. Project Khulisa identifi ed Tourism, Agri-Processing and Oil and Gas as the sectors which are either growing the fastest or have the highest job creation potential. Our goal is to dramatically accelerate growth in these key sectors through a series of targeted projects. As we implement this growth strategy, giving support to small businesses also remains an important priority. We know that entrepreneurs are important job creators. The National Development Plan states that about 90% of jobs will be created in small and expanding companies by 2030. This is why we have prioritised the support of SMMEs. In the past fi ve years, the Provincial Department of Economic Development and Tourism has assisted 26 000 entrepreneurs with a range of services to help them grow. This includes reducing unnecessary regulations through our Red Tape Reduction Unit, which has handled more than 3 000 cases since its launch in 2011. Along with red tape, project funding can pose a challenge for many small businesses. Ensuring that entrepreneurs have access to fi nancial support networks is a key part of our assistance package. We have recently embarked on innovative initiatives such as partnering with Deloitte to host the Western Cape Funding Fair and we aim to build on these successes by ensuring that even more entrepreneurs get the support they need to play a meaningful role in growing our economy. We can only do this through partnerships between spheres of government, the private sector and the residents of the Western Cape. I am confi dent that this guide will be a valuable tool in forming these partnerships, providing an excellent platform to connect entrepreneurs with the right investors. Over the past fi ve years we have created over 200 000 jobs and have the lowest expanded unemployment rate in the country. Over the next fi ve years we will continue to work, better together, to deliver meaningful growth and real job opportunities. SOUTH AFRICAN BUSINESS 2016 24

SPECIAL FEATURE Public-private push for entrepreneurship The 2015 Western Cape Funding Fair highlighted the need for job creation driven by the public and private sectors Deloitte, in partnership with the Western Cape Department of Economic Development and Tourism (DEDAT), launched the inaugural Western Cape Funding Fair at the CTICC in March 2015. The Fair afforded entrepreneurs and innovators the opportunity to pitch ideas were in need of funding to potential funders. “We had three main criteria,” said Marius Alberts, Deloitte Western Cape regional leader. “The new enterprises had to be based in the Western Cape, create a significant number of jobs to contribute to the economy of the Western Cape, and require at least R10-million in funding. To be a finalist at The Western Cape Funding Fair you need to have something that can be converted into an actual business in the medium term, not something that requires another nine years of research. We want to find business ideas that are ready to work. People need to say ‘this is my value proposition, this is how I intend to make it work, and this is my target market’. It is crucial that an entrepreneur is able to articulate their idea in a way that shows they understand the business behind it and that they have the ability to articulate the value proposition clearly.” Over 600 entries were received, which were whittled down to a group of 40 finalists who pitched their ideas to funders at the Fair. “The day those 600 applicants decided to pitch was the first step in their future competitiveness in their industry sector,” said DEDAT Minister Alan Winde, who called on South African banks to take more risks when it comes to entrepreneurs. “Our banks were praised for their low risk rating when the global recession hit, but if we want to change the ecosystem for entrepreneurs in this country, they are going to have to be open to more risky ventures. Job creation is key for our future, and neither government nor the private sector can make the changes happen on their own. It is partnerships like this one that are the key to our future growth,” said Winde. 25 SOUTH AFRICAN BUSINESS 2016