Fequently Asked Questions

FAQs are a set of questions that are asked by people seeking clarifications on certain issues and as such some of the enquiries would be on operations of LEA and other subjects relating to LEA services. It is therefore anticipated that the following questions could be asked.

1. Where are LEA offices located, telephone & fax numbers and the contact persons?

Click here to find out.

2. What is the mandate of LEA?, what does LEA do and or offer?

The mandate of LEA is to: The Authority is intended to create a coordinated and focused one stop shop that will provide support services to the local industry needs of the SMMEs, encompassing training, mentoring, marketing and technology support for the product development. The functions of the authority include inter alia:

• Provide business planning, training and advisory services
• Identify business opportunities for existing & future SMME's
• Promote domestic and international linkages, especially between SMME's and government, large business entities and other SMME's.
• Exploitation of government & large firm procurement opportunities
• Facilitating access to finance , standards, infrastructure, and changes in regulations
• Facilitate technology diffusion and adoption
• Promote general entrepreneurship and SMME awareness

3. What is an SMME?

Category of SMME	Description
Micro Enterprises	Employs less than 6 people, including the owner Informal - no license, formal business premises, labour legislation Turnover of P60 000 per year
Small Enterprises	Employs less than 25 people Annual turnover of between P60, 000.00 and P1, 500,000 Part of the formal economy, use technology
Medium Enterprise	Employs less than 100 people Annual turnover of between P 1,500, 001 and P8, 000,000.00 Operates from fixed premises with all formal requirements.

4. Why is LEA focusing on SMMEs?

SMMEs represent a powerful engine for diversifying our economy. Supporting entrepreneurship in local communities is a proven, sustainable economic development strategy across the world. SMMEs are the biggest source of new jobs, presenting one of the best ways to positively impact the lives of many unemployed Batswana. However, SMMEs growth is constrained by lack of competitiveness, low productivity, and low owner and worker skills. LEA provide various services that are meant to significantly help SMMEs to be more productive, improve their competitiveness and reach markets so that they grow and create more jobs in their communities.

5. What are the key benefits of LEA services for SMMEs in Botswana?

Provides non-financial support such as mentoring programmes, business advice, help with government tenders and technology support to grow SMMEs in terms of size, and eventually graduate them to large enterprises. At the end of it all, LEA wants to see competitive SMMEs, trading in high quality products and services; using better business skills; access local and international markets easily; playing a significant role in the supply chain.

6. Do you finance entrepreneurs?

LEA facilitates access to credit for small, medium and micro-enterprises (SMMEs) through the business planning services from CEDA, NDB and other commercial banks. It provides mentorship to guide and counsel entrepreneurs in various aspects of managing a business. Entrepreneurs do not get financial assistance directly from LEA.

7. How does LEA differ from other programmes and institutions like FAP, IFS, CEDA and NDB?

LEA provides an end to end process. It starts assisting the entrepreneur at an individual stage, walk him through all the needed stages of the business and end at the graduation stage.

8. Who qualifies for LEA?

• Age- citizen aged 18 yrs and above & citizen companies whose shareholders are aged 18yrs and above.
• Sector segmentation- the targeted interventions would be in Tourism, Agriculture, manufacturing and Services.
• Citizen owned businesses

9. What are your reasons for focusing LEA's services on Youth, Women and Unemployed?

• Youth-most of the unemployed falls under the category youth hence the focus is on them to alleviate unemployment and also to equip them with the necessary business skills.
• Women-there is an inequality between men and women in terms of venturing into business hence a need to bridge the gap. Most of the household in Botswana are headed by female hence there is a need to empower them to improve their livelihood.
• Unemployed- the aim is to reduce the rate of unemployment by encouraging them to venture into businesses.

10. How do you assist an entrepreneur to access and or benefit from tenders?

This would be done by educating them and referring them to the relevant stakeholders.

11. Do you register companies?

LEA does not register companies but LEA can facilitate this by providing all the paper works needed for the company registration. The responsibility of registering the company would still be with the Registrar of Companies.

12. Do you issues trade licenses?

LEA does not issue trade licenses but LEA can facilitate this by providing all the paper works needed for the issuing of the Trade license. The responsibility of issuing the license would still be with the Ministry of Trade and various District and Town Councils depending on the type of business.

13. How do you relate to other parastatals like BECI, CEDA, BEDIA, BOBS, BNPC e.t.c?

LEA continues to sign a number Memoranda of Understanding (MOUs) with key stakeholders who play a critical role in its enterprise development end-to-end process. These MOUs are intended to close specific gaps which would otherwise hinder the development of SMMEs. For instance, there is the need for access to finance by SMMEs, access to product quality assurance standards, access to training standards certification, and access to markets, just to name but a few. Under the singed MOUs, parties agree to identify specific projects to be undertaken as part the enterprise development initiative. LEA has as of now, signed a total of eight MOUs with BOTA, BOCCIM, BNPC, BOBS, FNBB, NDB, Barclays, CEDA. A number of other MOUs will be signed in the near future between LEA and other key stakeholders.

14. Does LEA help entrepreneurs to access loan from the financial institutions?

Yes by ensuring that businesses prepare winning business plans tailored for specific financers.

15. How do you assist the entrepreneurs to identify business opportunities?

This is done through educating and disseminating relevant information to them and by linking them with other organizations e.g. CEDA, BEDIA etc.

16. To what extent can LEA assist entrepreneurs to access loans?

LEA assists by the facilitation of the preparation of business planning which will then be referred to financial institutions for considerations.

17. To what extent can LEA assist SMMEs to get collaterals/security?

LEA does not assist SMMEs with security. The security would be required by banks on a case by case when considering projects for funding.

18. Does LEA assist the entrepreneurs with filling VAT forms?

LEA does not complete VAT forms but it can facilitate this through the provisions of training by offering tailor made courses to address these. In addition mentoring services would also be provided which would also address the issues of completing the VAT forms.

19. How is LEA going to promote linkages between SMMEs, SMMEs and large enterprises?

This would be done through clustering of businesses and by promoting both horizontal and vertical linkages between the SMMEs themselves and also between the SMMEs and large enterprises. An example could be the supply chain where we have a Lucerne producer supplying the dairy farmer with Lucerne and in turn dairy farmer supplies the cheese manufactures to produce cheese until the final product reaches the market.

20. How are you going to influence changes in policies, regulations and infrastructure?

As part of its mandate, LEA has to identify those regulations and policies which present challenges to the local SMME community. LEA is mandated by the Small Business Act No. 7 of 2004 to advise the Minister of Trade and Industry on any legislation which is seen as a barrier to SMME development. LEA therefore plays an advocacy role for change of regulations as and whenever the need arises.

21. How are you publicizing your services?

The information dissemination would be done through addressing the kgotla meetings, Town and District councils, distribution of brochures, advertisement through both print and radio media e.t.c.

22. How is LEA going to facilitate technology adoption and diffusion?

LEA will facilitate technology adoption by first identifying technologies with high potential and assisting with their transfer to and acquisition by client companies. LEA will facilitate technology diffusion by encouraging sector-specific and cluster-specific technology adoption, collaborative technology partnerships and generally promoting wider adoption and applicability of technologies. LEA has Technology Advisors in all the Branches to assist in this regard, and Technology Specialists at Headquarters for back-up, support and higher level technology interventions.

23. In terms of technology, how does LEA relate to research organizations such as BOTEC, RIPCO, NAFTRC and UB?

LEA has a Memorandum of Understanding with most stakeholders, including the above institutions. We know that we can not provide all the answers but our collaborators such as the research institutions listed above can assist us to assist our clients.

24. What about Innovation? What is it and what can LEA do to Help SMMEs?

Innovation is the ability to create new solutions that will increase the effectiveness, profitability and competitiveness of the business venture. Innovation includes the application of technology to improve business processes, products and services, to enhance productivity, quality and cost-effectiveness. LEA uses its Technology Advisors and Technology Specialists to sow the seeds of innovation amongst our clients and to assist in their innovative

25. Is 'innovation' really necessary, what are its advantages?

In today's competitive world innovation is crucial for business survival and success. It is the weapon with which local businesses can compete with both regional and international competitors who can easily find their way into the domestic markets. It is also the only way to compete in foreign markets, where issues of quality and cost are driven by innovative application of science and technology into all aspects of business operations and processes.

26. What is business incubation?

Business incubation is the nurturing of small and newly established businesses so that they grow to become independent and self-sustaining. It is necessary to provide a sheltered and protective environment so that businesses have the best chance of survival during the most difficult and trying times after start-up. This environment includes rented office and workshop space at subsidized rates, business coaching and mentoring services and technology advisory services provided in conjunction with our collaborators.

27. Where are the LEA Incubators and can you describe them?

The incubation programme is still being developed.

28. How does one qualify for incubation?

Entry criteria and application material till being developed.

29. What other conditions of incubation are there?

The incubation programme is still being developed