THE BMZ ACADEMY
THE BMZ ACADEMY
@061 262 1185/068 053 8213
BMZ ACADEMY 061 262 1185/068 053 8213
, THE BMZ ACADEMY
Section 1: Background of SME/SMME
Provide a summary on the background of your chosen SME/SMME. In the
background, provide information on the products or services the SME/SMME
offers, where it is situated and who its current customers are.
Empty Trips is a South African transportation and logistics company. Empty Trips, an
SMME in this area, provides services associated to transporting persons or products
from one location to another. This includes freight transportation, which is especially
important given company logistical needs, as well as possible passenger
transportation services.
Given the importance of SMMEs in township economies in South Africa, Empty Trips
could be located in or near a township. Townships are defined as underdeveloped
urban residential areas that act as hubs for entrepreneurial development. The public
transportation system in townships influences business site selections, implying that
Empty Trips' operational base should be strategically positioned to access
transportation networks. It could also be based in other metropolitan or peri-urban
areas, depending on its needs.
The existing Empty Trips clients could be diverse. They could be individuals in
townships who want transport or small enterprises in the township economy that need
things moved. These small firms generally engage in the retail sector and may require
logistical support for their supply chains. Furthermore, Empty Trips could assist larger
businesses that require transport services, connecting townships to urban centres or
other regions. Given the challenges of poor road conditions in some regions, notably
rural areas and townships, Empty Trips may need to use appropriate transportation
such as bakkies or SUVs to reach specific consumers.
Section 2: Assignments 01 corrections and suggestions (5)
You need to implement corrections and suggestions from Assignments 01. Your
corrected Assignment 01 will be checked and marked when you submit your
final portfolio. Therefore, it is important that you do not ignore my suggestions
BMZ ACADEMY 061 262 1185/068 053 8213
, THE BMZ ACADEMY
and corrections. Also, only work on your corrections and do not rewrite the
entire assignment. NB: only work on your corrections.
Section 3: Answers to Assignment 03 questions
a) Discuss government institutions that support SMMEs (5 marks for the
theoretical discussion).
Durgee and Agopian (2018) state that the South African government has developed a
number of institutions to provide comprehensive services to SMMEs. These
institutions are part of the government's efforts to revitalise township economies and
combat issues such as poverty, inequality, and unemployment.
Small Enterprise Development Agency (SEDA)
SEDA is an entity of the Department of Small Business Development that was founded
in 2004. Its mission is to support and grow small businesses in South Africa in
collaboration with national and international stakeholders.
Small Enterprise Finance Agency (SEFA)
SEFA was formed in 2012 by the combination of the South African Micro Apex Fund,
Khula Enterprise Finance Ltd, and the Industrial Development Corporation (IDC).
SEFA's primary goal is to promote the foundation, growth, and survival of SMMEs,
hence contributing to job creation and poverty reduction in South Africa.
The establishment of these institutions suggests that the government recognises the
important role that SMMEs play in economic development, contributing to South
Africa's GDP, and influencing employment creation. The government wants to
empower SMMEs to participate in the market, build value chains, and eventually
reduce poverty and unemployment, particularly in township economies, by giving
assistance through agencies such as SEDA and SEFA (He & Harris, 2020). However,
the study material also states that, despite these initiatives, their success has been
restricted due to a lack of complete understanding of township economies and their
unique needs.
b) Provide examples on how the chosen SME/SMME can be supported by these
institutions (10 marks for the practical application). (15)
BMZ ACADEMY 061 262 1185/068 053 8213
THE BMZ ACADEMY
@061 262 1185/068 053 8213
BMZ ACADEMY 061 262 1185/068 053 8213
, THE BMZ ACADEMY
Section 1: Background of SME/SMME
Provide a summary on the background of your chosen SME/SMME. In the
background, provide information on the products or services the SME/SMME
offers, where it is situated and who its current customers are.
Empty Trips is a South African transportation and logistics company. Empty Trips, an
SMME in this area, provides services associated to transporting persons or products
from one location to another. This includes freight transportation, which is especially
important given company logistical needs, as well as possible passenger
transportation services.
Given the importance of SMMEs in township economies in South Africa, Empty Trips
could be located in or near a township. Townships are defined as underdeveloped
urban residential areas that act as hubs for entrepreneurial development. The public
transportation system in townships influences business site selections, implying that
Empty Trips' operational base should be strategically positioned to access
transportation networks. It could also be based in other metropolitan or peri-urban
areas, depending on its needs.
The existing Empty Trips clients could be diverse. They could be individuals in
townships who want transport or small enterprises in the township economy that need
things moved. These small firms generally engage in the retail sector and may require
logistical support for their supply chains. Furthermore, Empty Trips could assist larger
businesses that require transport services, connecting townships to urban centres or
other regions. Given the challenges of poor road conditions in some regions, notably
rural areas and townships, Empty Trips may need to use appropriate transportation
such as bakkies or SUVs to reach specific consumers.
Section 2: Assignments 01 corrections and suggestions (5)
You need to implement corrections and suggestions from Assignments 01. Your
corrected Assignment 01 will be checked and marked when you submit your
final portfolio. Therefore, it is important that you do not ignore my suggestions
BMZ ACADEMY 061 262 1185/068 053 8213
, THE BMZ ACADEMY
and corrections. Also, only work on your corrections and do not rewrite the
entire assignment. NB: only work on your corrections.
Section 3: Answers to Assignment 03 questions
a) Discuss government institutions that support SMMEs (5 marks for the
theoretical discussion).
Durgee and Agopian (2018) state that the South African government has developed a
number of institutions to provide comprehensive services to SMMEs. These
institutions are part of the government's efforts to revitalise township economies and
combat issues such as poverty, inequality, and unemployment.
Small Enterprise Development Agency (SEDA)
SEDA is an entity of the Department of Small Business Development that was founded
in 2004. Its mission is to support and grow small businesses in South Africa in
collaboration with national and international stakeholders.
Small Enterprise Finance Agency (SEFA)
SEFA was formed in 2012 by the combination of the South African Micro Apex Fund,
Khula Enterprise Finance Ltd, and the Industrial Development Corporation (IDC).
SEFA's primary goal is to promote the foundation, growth, and survival of SMMEs,
hence contributing to job creation and poverty reduction in South Africa.
The establishment of these institutions suggests that the government recognises the
important role that SMMEs play in economic development, contributing to South
Africa's GDP, and influencing employment creation. The government wants to
empower SMMEs to participate in the market, build value chains, and eventually
reduce poverty and unemployment, particularly in township economies, by giving
assistance through agencies such as SEDA and SEFA (He & Harris, 2020). However,
the study material also states that, despite these initiatives, their success has been
restricted due to a lack of complete understanding of township economies and their
unique needs.
b) Provide examples on how the chosen SME/SMME can be supported by these
institutions (10 marks for the practical application). (15)
BMZ ACADEMY 061 262 1185/068 053 8213
