NEF committed to providing financial and non-financial support to black entrepreneurs

15 April 2015

In 2009 the National Empowerment Fund (NEF) launched an online business plan tool that helped over 20 000 users to compile their business plans and financial projections, but the service provider has now disabled public access to this valued business-support solution.

By logging on to the NEF website, individuals and businesses of any size could create a business plan through an interactive step-by-step question and answer process. The business planner also included a financial projection feature which could be used to understand and manage all aspects of a business’ cashflow, including revenue and operating expenditure, capital expenditure and working capital as well as the financial obligations of the business.

The tool was available in five languages, namely xiTsonga, seSotho, isiZulu, English and Afrikaans, and is written for business owners and managers who do not have a financial background. An easy ten-step process enabled users to create cash flow projections, income statements and balance sheets for up to a three-year period.

On Tuesday the Sowetan newspaper reported that “Enterprise SA, which was contracted by NEF to run the business planner tool, on Sunday notified customers that the service which since 2009 assisted them in designing their own business plan, was not available until further notice.”

The NEF wishes to assert that black entrepreneurs are continuing to receive dedicated support and assistance with the development of their business plans and overall entrepreneurial support. The NEF continues to offer these services through product advisory services. This support includes business incubation, entrepreneurial skills training and mentorship support. There are also referrals to other agencies within Government’s Economic Cluster with a specific mandate to assist companies with the development of business plans such as the Small Enterprise Development Agency (seda).

1. Why is the NEF Business Planner tool not available?

In 2009 the NEF entered into a contract with the service provider, Enterprise Support, a company led by Rodney Prinsloo. During the course of this relationship the NEF requested specific enhancements to the tool from the service provider, which he failed to deliver on. The enhancements needed to be finalised before a further relationship with the service-provider could be considered by the NEF. At the heart of the dispute is the NEF’s contention that the service provider is only entitled to bill a proportionate amount in line with the actual usage of the tool for the past year. This is as provided for in the agreement.

The parties have been communicating in order to resolve the dispute regarding the quantum of the service-provider’s claim. We were therefore taken aback by his decision to publicly distribute an email notice claiming that “the NEF's Business Planner Tools will not be available until further notice”. The service provider is not authorised to make statements on behalf of the NEF.

All other prior invoices up to March 2014 have been paid in full to the service provider. Even though there was a contractual vacuum during the period in dispute, the NEF believes that the service provider should be reimbursed for services rendered. However, this must be in line with the provisions of the service level agreement because the performance terms were not fulfilled. 

Resolution of the payment dispute has been affected by Mr Prinsloo’s failure to submit relevant documents to bring him in compliance with the law, as requested previously for well over a year. The NEF has still not received any submission from Enterprise Support in this regard.

2. What enhancements did the NEF require?

Following expiry of the original service level agreement the NEF extended the relationship until March 2014, during which period the service provider was required to effect the following enhancements to the tool:

- Provide functionality to enable online submission of applications.

- Ability for users to work offline in order to reduce the costs of internet connectivity.

- Enhance the financial projections tool to integrate budgets with actual performance once the business trading.

- Ability to track applications submitted for funding.

- Integration of the business readiness tool to the NEF’s entrepreneurial risk assessment tool on CRM.

- Enhanced reports on tool usage and feedback from users.

3. How many entrepreneurs registered to use the tool?

Since inception in 2009 over 20 000 registered users accessed the tool in order to compile their business plans and financial projections.

4. How many entrepreneurs have used the Business Planner tool since 2009 and managed to get funding from the NEF? 

Users were not restricted to submit the completed business plans to the NEF. They could approach any potential funder with the completed business plan. However the NEF had requested the service provider to enable the tracking of completed business plans, as part of the technical enhancements which he subsequently failed to fulfil.

5. When will the tool be reintroduced?

It is the NEF’s intention to conclude the internal procurement processes in the shortest possible period, so that a new and enhanced solution can provide a more effective solution to entrepreneurs.

6. While the system is down, will the NEF be assisting entrepreneurs?

The NEF will continue to assist aspiring entrepreneurs through our internal product advisory services and, through longstanding partnership with the Small Enterprise Development Agency (seda) and provincial DFIs for further assistance with drafting business plans.

Statement issued by Moemise Motsepe, Head: Marketing & Communications, NEF, April 15 2015

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