DRAFT 2, May 12, 2004 - Unapproved
DRAFT SMME FAQS MAY 2004
What is the Micro Finance Skills Project?
The MFSP is a three-year project set up in 2002 to provide appropriate training and skills development for Micro-Finance institutions (MFIs) and borrowers in the micro-finance sector. The project is already active in five provinces – Gauteng, Mpumalanga, Western Cape, Eastern Cape and Kwa-Zulu Natal – and training is beginning in the remaining four provinces from May / June 2004.
Who can take part in the SMME borrower training?
The training is intended for staff, managers and owners of any SMME organisation that has currently or in the past taken a loan from a micro-lender.
How do I know if the training is right for me?
The MFSP project management has ensured that the training meets the needs of the learners by first researching the requirements of the micro-finance sector. The training is done through active adult-centred learning.
How long is the training?
Each module takes place during a half-day session. There are six modules in all.
Where will this training take place?
From mid-May training will be available in all nine provinces. As far as possible, workshops are conducted in communities where there is sufficient demand. This means that if there are enough learners in an outlying area, the BANKSETA MFSP will select a venue in that area. If the learners are spread out, a central venue will be selected.
Who will deliver the training?
The MFSP Project management has appointed training service providers who were selected on the basis of their expertise in the micro finance industry, training and development and their knowledge and experience in the specific module or workshop. Intermediaries, such as provincial consumer directorates and advice offices have also been selected to partner with the project in order to take the training to the communities they serve.
How is the SMME Borrower training conducted?
The SMME borrower training is done in an interactive way. Using a specially designed board-game - with either a rural or a city-based environment - learners explore the outcomes in teams. This practical learning has been shown to aid the learner to retain more information and encourage concentration for longer periods.
What areas of training are covered?
Six focus areas have been identified which cover the basic needs of SMME business development from initiating a business to complying with legislation. The courses are:
1. How do you know if your business idea will work?
2. What resources do you need to start your business?
3. What do you need to know about financial management to run your business?
4. How can you budget your finances effectively?
5. How do you draw up a business plan?
6. What do you need to know about loans?
How many workshops can I attend?
SMME borrowers can attend as many workshops as they would like to i.e. from one to all six module.
What does the “How do you know if your business idea will work?” cover?
This is a core module which looks at the SMME environment, how to research the environment in terms of location, customer need, and competitors as well as how to do a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis. The module is aimed at helping SMMEs analyse the research to reach an informed decision.
What does the “What resources do you need to start your business?” cover?
The module aims to ensure SMMEs know they need to identify resource needs, what these resources are and which resources are needed.
What does “What do you need to know about financial management to run your business?” cover?
The module aims to give a basic understanding of income versus expenses and turnover versus profit. It shows that certain registrations and payments – including tax, UIF and the skills levy fund – are legislative requirements.
What does “How can you budget your finances effectively?” cover?
This module aims to help learners differentiate between personal and business financial needs and includes areas such as managing a budget, investment in the business and understanding and using basic financial statements.
What does “How do you draw up a business plan?” entail?
This course is designed to guide learners into recognising the need for a business plan. It then looks as the business plan as a tool for getting finance from reputable loan providers and as a guide to what SMMEs can expect of their business. Learners will receive guidelines on how to draw up their own business plans.
What does “What do you need to know about loans?” cover?
This module looks at the requirements for a loan, how to choose the right institution to apply for a loan, the legislative requirements when taking out loans and the rights of SMMEs in conducting the transaction.
In which language is training conducted?
English is the main language of instruction and all the materials are in English. The needs of the learners will be taken into account, however, and where possible, trainers will be assigned to facilitate in the required language identified at the time of booking.
How many learners will be targeted?
1200 SMME borrower clients are targeted to receive training and skills development.
What do other learners say?
Feedback from SMME learners shows that many are opting to attend as many courses as possible with a high percentage attending all six modules. Comments included:
“Learnt a lot already. I now know how to do pricing and a budget for my business.” Emmanuel Vilankulu (1 workshop)
“I now know how to do cash flow statements and budgets. I see that I need more funds to be able to increase my business.” Anthony Vilakazi (1 workshop)
“I know how to draft my business plan and understand income statements and balance sheets. Also contracts. It was a very interesting course. Feel my business is progressing very well.” Christian Hlatshwayo (1 workshop)
“It was a real eye opener as I was very much in the dark before. I still need to learn more to help me get deeper into my business.” Daniel Mogapi (1 workshop)
“Course was very good and made things easy for us. I learnt how to borrow money. My business is doing well.” Alice Bayane (1 workshop)
“Happy with the course. We are doing some things differently and understand banking and finance much better.” Dumisile Khumalo (6 workshops)
“Have implemented stock management and know how to budget. The courses were brilliant. Understand about personal accounts and business cards.” Rebecca Masinga (6 workshops)
“Enjoyed the courses. Have a better understanding of the need for a business plan and how to do one. My business has improved after being on the courses.” Thulile Mathebula (6 workshops)
And, indicated a number of participants, the course had a real impact on business and profits.
Ritta Mhala’s company Zenzeleni has three employees and has been operating for two years. She attended three workshops: “As a result of knowing how to manage finances and budget correctly I make more profit and can grow my business. General comments: The courses were very good and helpful to me. I gained a lot of knowledge on how to operate my finances.”
Samuel Mgazini’s construction company Bothabela has 30 employees and has been around for two year. He attended one workshop. “I get a lot of profit which I never got before. It was an excellent course for me because I gained a lot in running my business.”
Engelina Mhlala’s company Siomogela is one-year’s old and has three employees. She attended one workshop and rated it highly: “Very knowledgeable course and am looking forward to attending others.”
Joseph Mpenyane’s general dealership Masonki has four employees and is 10 years old. He attended three workshops: “My business is doing well. I am looking for another loan so I can expand my business further.”
Petros Mabe owns Peter Shebeen which has been receiving customers for three years and has one employee. After attending training, he commented: “The course was helpful and I treat my clients well. More people come to the shebeen and stay longer because I have now put a pool table in. The courses really helped and now I have more people coming to the shebeen and I am making more money.”
Mandlenkosi Mahlalela attended five courses. His five-month-old business The Future has one employee. “Since I now know how to manage my finances my business is improving. The courses are very good especially for someone who is serious about their business venture.
What is the Business Networking Sessions?
The BNS support programme is available to all MFIs and SMMEs participating in the second stage of training. It aims to give companies a hands-on a support base through coaching and, through informal discussion sessions, create an information-sharing forum. The BNS programme is also assessing the business needs of participating MFIs and SMMEs as well as the impact of the training in order to provide sustainable support.
What happens at BNS?
The half-day workshops, held at central locations, have two facilitators. Through these sessions, business owners and managers interact and are able to openly discuss their concerns and challenges. At the first session, the facilitators assess the introductory problems and needs of the participants’ businesses. This is followed by a second session where business coaches are brought in to interact with owners and managers. This is done in order to take the first steps in guiding participants towards a feasible, results-orientated strategy to manage existing problems.
Who attends the BNS?
The sessions are open to business owners and managers. Due to the differing business needs of MFIs and their SMME borrower clients, BANKSETA MFSP identified that the networking sessions needed to be conducted separately.
How much will it cost?
There is no fee for either the training or BNS. A registration fee is no longer required.
What should I do if I want to receive SMME training?
For more information, contact Portia Sekati or Thabo Khanye at (012) 663 3251 or Fax (012) 663 7026. They can be emailed at
How can we contact the project service providers?
The service providers can be contacted through the Micro Finance Skills Project by calling BANKSETA at 0861 020 002 or e-mail The web address is www.bankseta.org.za (click on Micro Finance Skills Project).
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