Business Retention and Expansion

The organisation's business retention and expansion function was established in order to better facilitate the business expansion and business retention needs of KwaZulu-Natal-based companies.

It also assists municipalities, industry associations and business enterprises to develop business linkage opportunities.

The Importance of Business Retention and Expansion

It is more expensive to attract a foreign enterprise or create a new business and such new operations only create between 10% to 20% of new employment opportunities in the local economy;
Re-investments by existing companies not only ensures the retention of existing jobs, but also creates 60% to 80% of new direct and indirect jobs in the local economy;
Existing and well-established businesses contribute to the development of other industries in terms of backward and forward business linkages;
Existing and well-established businesses also contribute to bettering the local socio-economic environment and assists in improving the trade balance; and
If we do not protect and look after existing businesses, the resultant opportunity cost to the local economy becomes too high.

Sources of New Jobs

Four Pillars of Business Retention and Expansion Support:

Business Administrative Support:

Business Operating Permits
Work permits for workforce
Development Finance
Grant Funding and Incentives
Manufacturing Rebates

Business Operational Support:

Support for Training and Development
Business Linkages and Export Promotion
Identifying Local Suppliers / Service Providers
Develop Networks

Municipality Support:

Task Team Collaboration (Industry and Officials)
Company Surveys and Analysis
Conducive Business Environment
Local Economic Development Plan

Strategic Support:

Policy Advocacy Matters
Supporting Local Suppliers to meet International Standards
Networks to Increase Productivity and Competitiveness
Strategic Alliances with Key Sector Clusters
Company Support Interventions

ECONOMIC DEVELOPMENT STRATEGIC PARTNERS:

ADMINISTRATIVE AND OPERATIONAL SUPPORT SERVICES INCLUDE:

Municipality BRE Programmes.
Obtaining business permits and permissions to operate.
Obtaining work permits for foreign nationals or spouses.
Introductions to providers of services such as banking, legal and accounting services, or property agents/brokers.
Assisting with developmental finance and incentive applications.
Assisting companies to access the assistance provided by other government departments and agencies e.g. CSIR/TLIU, Productivity South Africa, SmartXchange,
Supporting training / development and information sharing on technical matters.
Provision of information on trade remedies / manufacturing rebates.
Assisting and facilitating expansions.
Identifying local suppliers and local linkages.
In collaboration with industry associations and cluster organizations improving productivity , competitiveness and business development linkages.

Interventions Required For A Successful
BRE Programme:

Government

A institutional policy framework to be put in place at local Municipalities for Municipality BRE Programme.
Limited competencies with regard to the Municipality BRE Programme.
Limited resources e.g. financial and human.
Well defined incentive policies to support industrialization at Municipality level.
Early Warning System

Issues Raised by Companies

Access to grant funding for working capital needs.
Improved local and international Market Access.
Business permit approvals.
Grant funding to finance ageing infrastructure,machinery and equipment.
Need for new innovation and new technology and retraining of work force.
Processing time of development finance and incentives.
Companies not qualifying for assistance given their BEE Ratings and therefore opportunities for Joint Ventures and BEE Equity Acquisition.

Approach to Business Retention and Expansion:

Reactive Approach (Referrals)
Proactive Approach

Reactive Approach (Referrals)

Business Operating Permits
Work permits for workforce
Development Finance
Grant Funding and Incentives
Identifying Local Suppliers
Distress Company Support Interventions
Business Linkages
Manufacturing Rebates

Proactive Approach:

Company Visitation Programme
Business Surveys
Policy Advocacy Matters
Supporting Local Manufacturers to meet International Standards
Networks to Increase Productivity and Competitiveness
Strategic Alliances with Key Sector Clusters
Establishment of Municipality Task Teams
Representative at Strategic Forums and Committees