DISCUSSION DOCUMENT TETA 2005/2006 SMME STRATEGY

Transcription

1 DISCUSSION DOCUMENT TETA 2005/2006 SMME STRATEGY 8 JUNE

2 1. INTRODUCTION. In South Africa the unemployment rate is slowing down in certain sub-sectors of the Transport Sector. However, the level of skills possessed in the workplace is not yet showing positive signs towards a significant growth in the country s economy. The SMME Strategy is strategically planned and developed in trying to address some of the problems that will lead to alleviating unemployment and improving productivity that will see the levels of skills improve to new heights. The development of the small business sector and skills to go with it, has long been recognised as one of the ways to facilitate the creation of job opportunities and attempt to address the unemployment crisis in this sector. However, a lot still needs to be done to guide and assist the micro companies, small entrepreneurs and unemployed learners who lack generic business as well as technical skills. There is growing recognition in government and in civil society at large that the way to work towards sustainable SMME development is through mutual partnerships, mutually dependant and beneficial business linkages. As a result, different organisations and institutions have initiated a variety of research and development programmes and the Department of Trade and Industry is championing a variety of development programmes in this regard. The SETA s are also expected to enhance the development of SMMEs as entrenched in the new NSDS targets of 2005 to This TETA SMME Strategy is aimed at providing additional discretionary grant funding to SMME s, who meets certain specific requirements, for specific developmental projects. Stakeholders within the transport sector are therefore encouraged to forward applications through their respective chambers for SMME skills development / training projects. The implementation of this strategy is based on the Transport Sector needs as prescribed in the Sector Skills Plan and also on the business imperatives of the SMME. It facilitates skills development for the individual employees and hopefully better production from within the company and are also encouraged to factor in unemployed youths into their training schedule. It is from the above-mentioned perspective that TETA, through its SMME Strategy, is mapping a process of best practice in skills development for small, medium and micro enterprises and their beneficiaries through the developed Voucher System. However, the ability of SMME s to remain viable in business after 12 to 18 months is of cardinal importance and the strategy is well placed to focus on helping such entrepreneurs succeed. The success of the strategy depends on the involvement and commitment of the industry and service provider / training organisations throughout the life of the programme. 2

3 2. PURPOSE AND OBJECTIVES OF THE SMME STRATEGY. Purpose. The purpose of this strategy is to assist TETA to increase SMME participation and sustainability in the Transport Sector as well as to address the problem of low participation in Skills Development initiatives with the specific challenges posed by entrepreneurial, the unemployed, women and disabled sectors. Objectives. The main objective of this strategy is to assist small, medium and micro enterprises that will promote employment equity targets, Broad-based Black Economic Empowerment and to improve, increase and enhance production in their respective companies. In order to realise the above broadly mentioned objective, the support for SMME s is defined more clinically as follows. 1. To enhance the development and growth of small businesses in the transport sector through skills development in line with the critical needs of the industry. 2. To promote the development of sustainable business ventures to expand job opportunities in the transport sector. 3. To ease access of small businesses in the transport sector to skills development funding. 4. To increase SMME participation in the new NSDS. 5. To support national skills development iniatives towards employment equity and broad based black economic empowerment. 6. To research, gather, collate and store all relevant and currently available information electronically, in order to provide a database which is easily accessible to our stakeholders, staff and management within the sector. To primarily assist historically disadvantaged South African SMMEs and to build capacity, quality and competitiveness of the transportation enterprises associated with TETA. Key Criteria and requirements. To implement the objectives of this SMME Strategy, the SMME should include tasks like the following, through the TETA SSP Research: To determine the SMME demographics of our sector. To determine the training needs for our SMMEs. Develop marketing strategies for our SMMEs. Identify local and international benchmarks. Opening up channels between the formal and informal sector. 3

4 Furthermore, the strategy is underpinned and supportive of the following key criteria / principles. An SMME is in the Transport Sector and employs less than 49 people and is registered with the Transport SETA. That the primary focus of their business dealings are transport linked and orientated. An SMME wishing to participate in the strategy must be registered with the Transport SETA. The training interventions are accredited and fall within the NQF. Training need to be unit standard based as the vouchers are paid per unit credit. It can be in the form of a Learnerships, Skills Programmes or part qualifications and offered by accredited service providers / institutions. Training should address the critical and scarce skills in the sector. Should be as inclusive, as far as possible, in order to address the equity targets set by the NSDS. That all Chamber SMME applications be approved by the Chamber Management Committee before being forwarded to the Skills Development and Learnership Committee / Skills Development Unit. 3. Voucher System Framework. What is the voucher system? This is a system that uses vouchers as a form of payment for training interventions. It only applies to employers who employ between 1-49 employees. Each voucher is valued at R130-00, which is the amount TETA pays per credit per learner. The SMME vouchers are only obtainable from TETA offices and will bear signatures of authorised individuals within TETA. The voucher represents the monetary value of the cost of the training intervention / programme applied for, e.g. if the value of the training is equivalent to 30 credits, the applicant will receive thirty vouchers worth R each, amounting to a total value of R3 900 per applicant. It must be noted that where the costs of training requested exceeds R and more, per individual and / or company, TETA reserves the right to institute a contractual agreement with specific obligations rather than to allocate vouchers, where it is deemed necessary. However, before any contractual agreement can be considered TETA reserves the right to seek 3 quotations or otherwise, as per the TETA Procurement Policy. 4

5 This will apply to any training interventions that do not conform to the unit standard credit bearing qualification process eg. CAA and SAMSA qualifications. How does it work? The flow-chart below, maps out the process that need to be followed when applying for funding. Only qualified stakeholders can apply and the application will be directed to the chamber under which the stakeholder belongs e.g. Road Freight stakeholders will forward their applications to the Road Freight Chamber for adjudication and approval. 5

6 When does TETA consider Procurement? SKILLS PROGRAM PROCESS Chamber receives enquiries from companies Ensure that company is a TETA stakehholder Forward stakeholder with Skills Program registration form Chamber receives completed learnerships application from stakeholder Forward a letter acknowledging receipt of application CrIteria for Skills Program Evaluation Registration with TETA Addresses TETA SLA requirements Accreditation of training provider / programme Registered Assessor / Workplace Assessor Prgram aligned to NQF The Skills Programme is occupationally based When completed, the Skills Programme will constitute a credit/s towards a qualification registered in terms of the National Qualifications Framework Use of Accredited Training Providers or the use of Provisionally Accredited Training Providers for the Skills Programme At least Interim SAQA Registered Part Qualifications At Least draft Unit Standards in the process of SAQA registration Chambers assess applications against Skills Program criteria Is intended skills program Registered with TETA Yes No No Does application(s) meet criteria? CrIteria for Evaluation of Skills Programs from other SETAs primay focus Check for accreditation of training provider with relevant ETQA Registered Assessor / Workplace Assessor The Skills Programme is occupationally based When completed, the Skills Programme will constitute a credit/s towards a qualification registered in terms of the National Qualifications Framework Use of Accredited Training Providers or the use of Provisionally Accredited Training Providers for the Skills Programme At least Interim SAQA Registered Part Qualifications At Least draft Unit Standards in the process of SAQA registration Yes Reccomendations made to TETA council via SD Unit standing committee after chamber mancom approval and registration by SD Unit Receive confirmation of registration of Skills Program from SD Unit Finalise amounts amounts to be funded Chamer Practitioner further evaluates skills programs and provides advice according to the following criteria: Assess by completing the Assesment Parameters Template to evaluate if the project is Relevant, Feasible and Sustainable (WI 005 Procedure document) Clearly identified OVI s and MOV s Number of beneficiaries Costs per credit Proper breakdown of costs, e.g. Tuition fees, Learner allowances etc. Practitioner assists stakeholder with completion of GOPP All training activities to be cost in accordance with existing funding model of R130 per credit Training with no unit standards to be cost at R130 per credit with maximum credits of R120 for certificate or diploma ABET costing in line with TETA funding model Send regret notification letter to applicant explaining relevant details Handle appeals in accordance with TETA appeal procedure Monitor skills program implementation as per TETA gudelines including certification of learners Update TETA MIS and submit learner records to DoL as per TETA certification process NOTE 1 It is important to note that any project can only commence once TETA has given written confirmation of commitment to fund the project from Discretionary Grant funds. NOTE 2 If the Employer receives grants for the skills programmes, the total of the grants that the Employer receives must be no greater than the grants the Employer would have received had the person undertaken a Learnership programme resulting in the same final qualification. 6

7 The type of training to be funded. 1. NQF aligned training. 2. Mandatory training. The emphasis will be on the use of unit standard based qualifications because of the credit based voucher funding system, other than those for eg. approved by SAMSA and CAA will be considered for funding. It must be noted that the voucher system funding model is meant as a subsidy for training interventions and initially replaces the cash payment component until the voucher is redeemed for cash. TETA will not be held liable for any short payment of prescribed course costs, should there be a shortfall in the costs, hence it should be regarded as a subsidy and not a right for full payment of a particular course. The new NSDS Equity targets of 85% black, 54% women and 4% disabled employees to be trained, must be given serious consideration and precedence, where possible. However, a developmental process must be evident for any non-compliance, but cannot be totally ignored or discarded. All interventions or training programmes leading to a qualification will be funded on a year-to-year basis, depending on the availability of funds. The service provider delivering the learning must be accredited by a recognised ETQA as prescribed in the SAQA Act. The SMME funding will attempt not to be too restrictive, because the aim of the strategy is to contribute towards growth of the company and to broaden the skills base in and out of the workplace. However, consideration will be on the SMMEs improving and enhancing for eg. their business, financial, marketing, tendering, legislative, employment, health and safety, technical and entrepreneurial skills in the workplace. The accent of the SMME Strategy must be on improving and enhancing business and technical skills by the SMME and making it competitive, based on sound principles with the careful selection of envisaged training courses for their employees. However, degree and diploma course funding will not be considered for funding as the primary focus of the SMME Strategy is on the immediate acquisition of vocational and occupational skills in the shortest possible time. 7

8 Who is eligible to apply? Only companies that are registered with TETA who do not participate in other forms of funding e.g. Mandatory and Discretionary Grants. Companies employing between 1-49 employees. TETA Registered Companies exempted from paying Skills Levies. SMMEs who want to be involved in the New Venture Creation skills programmes / Learnerships / modules. Application process. The application follows the following process flow: Assessment, consideration and recommendation of applications by the relevant chamber. Approval process by Skills Development and Learnership Committee / Skills Development Unit and once approved then the Skills Development Unit ETD Practitioner applies for the vouchers to the Finance Unit, which must be pre-approved by the Skills Development and Learnership Manager. Successful SMMEs vouchers are dispatched by registered post, chambers or any alternative safer method and the relevant stakeholders / chamber notified accordingly. Successful SMME redeems vouchers at accredited service provider. Implementation of training / learning takes place with chambers responsible for monitoring of the training. Redemption / payment of the vouchers to the relevant service providers upon receipt of an invoice and a report on the training intervention to the Skills Development Unit. It will be attempted that the round robin process of the application from receipt of it from the chambers at the Skills Development and Learnership Committee / Skills Development Unit will not exceed 1-2 months. Reporting Process. Monitoring / progress reports from service providers and employers must be made available, where required. Comparative analysis to be conducted by the chambers in correlation with the Skills Development Unit. ie. is the training relevant, does it address the shortage of skills within the sector etc. Chambers must ensure that contract obligations were met if a contract was signed. 8

9 Chamber personnel are responsible for the monitoring of the training intervention at the company and service provider level, where required. It is also incumbent on Chamber personnel to record all company training interventions on the TETA MIS system to ensure certification of the learners. Funding source and sustainability. If for any reason TETA does not have any available funds to sustain the project then the Department of Labour s National Skills Fund funding windows could be approached for co-funding of the SMME Strategy. Value-add / Advantages. SMME Company. Capacity building of staff members. Helps SMMEs to engage more meaningfully in Skills Development initiatives through providing them with information that will enable them to make better-informed decisions. Return on investment claiming back on levies paid. Better and improved relationship with staff members. Learner. Capacity building through skills and development. Multi-skilling / improvement of existing skills. Qualification / accredited learning. More directed / strategic training e.g. entrepreneurial skills training. On-the-job training and mentoring. Cost effective ( saving on money for training). TETA. Achievement of targets / NSDS. Database of relevant Service Providers. Better understanding of Stakeholders needs. Addressing imbalances of the past. Strategic partnerships. Links. List of accredited Service Providers to be put on TETA Website. Generic business unit training service providers from Service s SETA website. Search SAQA website for registered unit standards. Compiled and updated by the Skills Development Unit 8 June