Since 2007 LEA has generated two rolling strategies. The first strategy had an all sector focus and was from 2007/08 to 2009/10. The strategy focused on Agriculture; Manufacturing; Services; and Tourism. It prioritised women; youth and the unemployed, pre-start up and start-up services. The second strategy was from 2010 to 2014.

 

It focused on the four subsectors of Piggery, Horticulture, Dairy and Leather. This was because of the comparative advantages the sub-sectors offered and through the value chain approach, more SMMEs could be developed. Several reasons necessitated the change from an all sector strategy to sub-sector strategy. Firstly, there was not enough financial and human resource, secondly, the 2008/9 global recession worsened the situation, thirdly, due to the fact that 51% of LEA clients in our data base are from the Agriculture sector and lastly, the import bill from the four subsectors was huge. It should be noted that even though we are moving back to all sectors, we have  explored new avenues of service delivery and the method of delivery has also changed.

LEA has since inception, created a total of four thousand, nine-hundred and ninety-five (4995) jobs.  As at end of March 2014, a total of 568 additional jobs were created against an annual target of 667, representing an 85% performance level.

LEA also has trained a total of nine thousand, three hundred and seventeen (9317) entrepreneurs, in an endeavour to improve and enhance the capacity and competitiveness of enterprises.

 

In addition, the following have been achieved:

• Screened = 11382
• # passing screening =8290
• # failing screening =3079
• # of enterprises assisted including  new enterprises set up =11382
• Sustainable jobs for current portfolio (3983)

 

LEANINGS FROM THE SUBSECTOR STRATEGY

During the subsector strategy period, LEA learnt that it was difficult for businesses within the subsectors to flourish in the absence of appropriate support structures.The strategy thus gave birth to the following key strategic projects; the Rapid Incubation, Leather Park, Leupane Dairy Cluster and Horticulture 40.

THE ROAD TO THE NEW STRATEGY

From time to time organizations pause and reflect on whether their basic strategies are still relevant and consistent with current evidence, observations and experiences. Informed by this principle, LEA made extensive consultations with its key stakeholders, both internally and externally. Some of the key stakeholders engaged were: ministries such as Ministry of Trade and Industry (MTI); Ministry of Youth, Sport and Culture (MOYSC), the Office of the President (OP);  Former & Current Board Members; LEA Staff, and  LEA SMMEs clients.     The feedback from these stakeholders suggested that LEA should adopt a strategy that will service all sectors within the country, in order to increase population coverage; and that LEA should look at focusing on sectors that Botswana has a comparative advantage as informed by the Regional Competitiveness Study.

THE THRUST OF THE 2014-17 LEA STRATEGY

The thrust of the new strategy is based on the adoptions of an “all-sector” focus and differentiated service offerings.  In adopting this business model, LEA was cognisant of the fact that it was operating in a resource constrained environment. According to this model, LEA created two wings to cater for Micro enterprises on one side and Small and Medium enterprises on another side. The Vision, Mission & Values of the organization have however, remained the same.

 

THE 2014-2017 LEA STRATEGY

Our vision

“To be the centre of excellence for entrepreneurship and sustainable SMME development in Botswana”

Our Mission

“To promote and facilitate entrepreneurship and SMME development through targeted interventions in pursuit of economic diversification”

Our Values

Self-Driven

• We are passionate, eager to learn, persistent and determined to achieve personal goals so that the entire team achieves its desired results.

Transformational Leadership

• We are inspired and self led, motivated, innovative and accountable to achieve maximum potential in a favourable work environment.

Partnership

• Through our internal teamwork and effective partnership with stakeholders, our efforts are synergized resulting in the success of our clientele.

Botho

• We are courteous, polite, and approachable. We execute all our transactions with clients and other stake holders with integrity.

LEA’S BROAD INTERVENTIONS

1. Provide business development services; basic and advanced
2. Identify business opportunities for existing & future SMMEs.
3. Promote  Inter-firm  Linkages; domestic and international.
4. Encourage exploitation of government & large firm procurement opportunities.
5. Facilitate; access to finance; standards via competitive improvement programs; infrastructure provision and; changes in regulations.
6. Facilitate technology adoption & diffusion.
7. Promote general entrepreneurship and SMME awareness.

MARKET SEGMENTATION

In line with service differentiation, LEA is to design fit-for-purpose service offerings to prevent over engineering (or over-servicing of clients), in order to offer more value to clients as per their needs. As indicated above LEA has created two service wings in;

– Micro enterprise (ME) wing

– Small & Medium enterprise (SME) wing

THE MICRO ENTERPRISES WING

Micro Enterprises are classified as enterprises making revenue of less than BWP 300,000 per annum.

Service offering to Micro Enterprises will be in the form of trainings, over the counter interventions and workshops.

1. Trainings   will be on four LEA accredited courses being:-

• Sales and marketing,
• Business planning,
• Records keeping,
• Entrepreneurship Development Training.

2. Over the counter interventions / services entails:

• Provision of Business Development kit,
• Client Screening services
• Provision of templates for Business Plan preparation etc.

3. Workshops

• Entrepreneurship Awareness Workshops

The Small and Medium enterprise Wing

Small and Medium Enterprises are classified as enterprises making Turnover of more than BWP 300,000 per annum. The service offering to Small and Medium Enterprises have been designed to  offer customer-centric, high quality interventions and services as well as capacity building.

LEA INCUBATORS REMODELLING

To enhance technology adoption among its SMMEs, LEA established an incubation programme. There are currently four incubators namely; Pilane Multi sector (2009), Leather Industries (2010), Francistown Industrial Business (2011) and Glen Valley Horticulture (2011).

The objectives of incubators

• Accelerated growth for existing businesses from LEA database.
• Provision of space and shared services at subsidized rates
• Handholding of the incubatees
• Provision of technical and business interventions

WHY REMODELLING?

Several factors have however, necessitated remodelling; In terms of all the incubators the re-modelling was embarked on to:

1. Align the incubation services with the adopted new LEA strategy 2014-17
2. Ensure sustainability of the incubation programme in the future
3. Increase number of beneficiaries per period
   • Improve technology transfer and adoption
   • Empower potential entrepreneurs prior to acquiring financial assistance

CONCLUSION

The new strategy offers LEA the opportunity to provide cost effective, targeted interventions that address the needs of SMMEs per scale. It is our sincere believe that by the end of the strategy implementation period, LEA would have made a meaningful impact in the growth of SMMEs and the nurturing of entrepreneurship culture in the country. Entrepreneurship is the engine of growth for any economy. The only sustainable manner in which employment can increase and the economy grow is by increasing the number of businesses and allowing entrepreneurship to grow. This requires vision and policies, sound bureaucratic and political processes completed by plenty of substance. The new LEA strategy provides that substance. LEA, with its footprint spread throughout the country in thirteen branches, is well placed to facilitate that process.