Clean Technology in SMEs in South Africa: Context and Challenges 1 November 2011
South African Context South Africa is the most advanced, broad-based economy on the African continent. The country leads the continent in industrial output (40% of total output), mineral production (45%) Generates most of Africa's electricity (over 50%). Strengths include its physical and economic infrastructure, abundant mineral resources, tourism, higher value-added manufacturing and service industries.
South African Context.. Until 1994 firms were not exposed to developments in technologies and manufacturing expertise over the years. Power shortages since 2008 reminded us to save energy Survey (IT Sector) 68 percent of the SME respondents said they do not monitor energy-based performance Reason: energy cost savings were not the primary goal
Barriers to Entrepreneurship SME s are faced with a number of challenges in their quest for competitiveness and sustainability Some of the external challenges include: Bureaucratic red tape in terms of setting up and registration of businesses Lack of finance and un-coordinated government support programmes. Government not fully understanding the challenges faced by the small businesses Government not understanding the technological needs of SME s. Businesses are not aware of all the financing and support avenues available to them
Internal Barriers Some of the internal challenges include: Difficulties in acquiring and exploiting appropriate technology, Low levels of technical and managerial skills Skilled personnel appear to focus on incremental, demand driven product improvement rather than new and radical innovations.
Change of Climate Survey How important environmental awareness is to doing business. Overall, 78% reported that it is indeed important. Emerging businesses were slightly more concerned than established companies. Contrary to popular belief that businesses which are more established and enjoy access to technology and formal communications, might be more concerned about their impact on their surroundings, Underlying reason: Business owner is likely to be focused across all elements of impacts on his organisation, including its place in the community and the environment. More established, company owners tend to narrow the focus to those factors directly linked boosting growth and profitability.
Institutional Support The Dept of Trade and Industry http://www.dti.gov.za/sme_development/sme_development.jsp The Industrial Development Corporation (IDC) www.idc.co.za Support Programme for Industrial Innovation (SPII) www.spii.co.za South African Bureau of Standards (SABS) www.sabs.co.za The Technology and Human Resources for Industry Programme (THRIP). http://thrip.nrf.ac.za/ The Small Enterprise Development Agency (SEDA) www.seda.org.za Etc
NCPC-SA is a National Body strengthen market access for SA industry foster networks to transfer RECP technologies & services contribute to sustainability of value chains deliver measurable economic, environment and social impacts The SA Cleantech Competition invites solutions to some of the most critical environmental and economic issues of our day. The objective is for entries to lead to job creation, the delivery of improved products, and the introduction of new services, thus contributing to initiatives to stimulate the economic growth of our country.
Thank you for your attention Gerswynn McKuur National Project Manager Industrial Energy Efficiency Project SA NCPC-SA Building 10A, CSIR, PO Box 395, Brummeria, Pretoria T: +27 12 841 2403 E: GMckuur@csir.co.za References http://www.smesurvey.co.za/press-latest.htm http://www.bizassist.co.za/renew_info.asp?id=105 http://www.smu.ca/events/icsb/proceedings/chalh6f.html http://www.dti.gov.za/sme_development/ Phaho D, Pouris A, Impact of Technology Diffusion on the Innovation Capacity and Competitiveness of Automotive Components SME s in South Africa, Management Review: An International Journal Volume 3 Number 2 Winter 2008