Terms of Reference for Consultant Firm for the Establishment of an Enterprise Support Hub.

Closing date for proposals: Thursday14 April 2016
Proposals should be sent to info@houtbaypartnership.co.za

Introduction
The Hout Bay Partnership
Hout Bay is a microcosm of the challenges and opportunities facing Cape Town and South Africa as a whole. It is a place of cultural diversity and economic inequalities and disparities in living conditions across apartheid-induced spatial and racial lines, all within a geographically distinct and confined area.In this context, the Hout Bay Partnership was established in 2014 with the purpose of promoting integrated social and economic development to improve the livelihoods and quality of life of Hout Bay residents. This will be achieved through building partnerships between residents, businesses and government. The Partnership has been established as a Not-for-profit company and is governed by an independent board of directors.

(See complete terms of reference linked below for further introduction)

Objectives of the Consultancy
HBP has received a grant from the City of Cape Town Economic Development Department for the 2015/16 financial year to begin three Economic Development projects within Hout Bay. This consultancy will support Project 1C. The following excerpts come directly from the City of Cape Town Hout Bay Partnership business plan.

PROGRAMME 1: Supporting business development in Hout Bay:
Project 1C: Establish Enterprise Support in Hout Bay
Within the community of Hout Bay exists a reservoir of talent and resources that can be harnessed to contribute to development outcomes that are in everybody’s interest. Combined with a vibrant and diverse set of NPOs and community-minded businesses, successful entrepreneurs and budding start-ups looking for a place to seed their ideas and collaborate, an enterprise support hub would become a multisector community resource and space to enhance Hout Bay’s economic development.

Feasibility StudyReport – undertake a scoping exercise to determine the feasibility of establishing an enterprise hub in Hout Bay. Whilst it is clear that establishing an enterprise hub in Hout Bay is important for supporting entrepreneurs and micro enterprises there is a need to understand the environment better so as to determine what model will work best in order to provide a sustainable foundation and ensure a solid return on the CoCT investment. HBP will contract a consultancy firm with expertise in enterprise support to undertake a robust analytical study that will assess the existing situation in Hout Bay taking cognisance of the political economy, research existing enterprise / incubator models, determine the best model for Hout Bay and provide recommendations on potential hub premises. To achieve economies of scale the research will also assess the feasibility of shared space with the offices of the Hout Bay Partnership. The assignment will run sequentially to the business opportunity and needs analysis work (Project 1A) with survey findings contributing to the feasibility study.

Funding Proposal and Implementation Plan – Implementation proposal – Should the feasibility study determine that an enterprise hub in Hout Bay will greatly improve economic opportunities, an implementation plan and funding proposal will be developed.
Scope of Works
Task 1: Feasibility Framework development
Report framework and structure: Develop a framework for the study and propose the report structure. Under this task the consultancy firm will initially develop a workplan for the study, the workplan will detail all phases of the study which will be undertaken from 1 May – 30 June 2016. A structure for the report will be proposed to the HBP. The study should commence with a desk study during which other feasibility studies for enterprise hubs will be researched and from this the feasibility report structure will be drafted. The workplan and study can potentially be framed around the standard phases of feasibility assessments:
1. Research the business problem or opportunity
2. Document the business requirements for a solution
3. Identify all of the alternative solutions available
4. Review each solution to determine it’s feasibility
5. List any risks and issues with each solutuion
6. Choose a preferred solution for implementation
7. Document the results in a feasibility report
Task 2: Understanding Context
2.1 Drawing from the nascent findings from the data collection undertaken by the consultancy firm contracted (24 March) to undertake the HBP Economic Development Projects work revolving around supporting business development in Hout Bay (Terms of Reference available on request) draft a comprehensive analysis of the business problems and opportunities faced in Hout Bay. Whilst focus should be on informal small to medium businesses with the opportunity to grow, reference should also be made regarding large scale business, in particular businesses which started small in Hout Bay and grew, analysing what made them grow.
2.2 Analysing the above data, alternative solutions for businesses in Hout Bay should be identified

and assessments undertaken, Following this, and based on the desk study undertaken in task one, an analysis of whether or not a business enterprise hub would be of assistance should be researched.
Task 3: Enterprise Support Hub Model options
3.1 Potential Hub Models: Based on the findings of tasks one and two at least four existing models for a hub should be described in the report with visuals, these models can be from within South Africa but also the introduction of fresh concepts from other parts of the world are welcomed, perhaps particularly from areas which have the same high tourism opportunities as Hout Bay. Following the presentation of existing models recommendations can be made for an appropriate model for Hout Bay.
3.2 Finance:A detailed buget for the

hub including staff, equipment and operating requirements will be produced, this budget will be phased over three years with the initial year focusing on the establishment of the hub.
3.3 Financial Sustainability/Satelite Hubs: A well known challenge assosciated with enterprise hubs is sustainability. The Hout Bay hub will be established with funding from the City of Cape Town however this funding will only cover the leasing of premises and the procurement of minimum office equipment (total budget R230k) for one year. As such options should be identified in the private/corporate sector for the hub to either be a satellite of an existing hub or to be fully funded as a corporate social responsibility endeavour.
Task 4: Assessment of potential premises options
Hout Bay is unique in that within a relatively small and contained geographic area a broad demographic of citizens coexist. The Hangberg, Valley and ImizamoYethu communities each bring diverse and vibrant cultures to Hout Bay, however in many instances the opportunities of this diversity lie dormant. It is envisaged that an enterprise support hub, besides providing business support could act as a catalyst to bring the community further together by providing a centre in which people can mix and interact around the common goal of business development. Under task 4 the consultancy firm will:
4.1 Research and investigate the most suitable premises for an enterprise hub. The premises should be easily accessible to all communities in Hout Bay and should be situated in a place which is deemed to be impartial and where all citizens of Hout Bay feel comfortable. A list of potential premises will be produced that includes the ownership details, lease options (period and cost), and appetite of the owners for economic and socio-economic development. It is envisaged that the premises would have a modern/urban feel to them whilst embracing the “quirkiness” of Hout Bay
4.2 Based on the above list the top three options should be clearly articulated with recommendations for suitability made based on, amongst others, the above criteria
4.3 The Hout Bay Partnership will initially be housed out of the business hub. This is largely due to the cost effectiveness of shared premises/resources but this also makes sense given that the HBP’s key projects (and funding) revolve around the development of the business sector. Business and tourism forums will be held in the premises and space for a large meeting room is needed.
Task 5: Hout Bay Enterprise Hub Fundraising Proposal and Implementation Plan
5.1 Implementation Plan: Should the tasks above combine to determine that the establishment of an exnterprise hub in Hout Bay is feasible and sustainable, the consultancy firm will develop funding proposal and an implementation plan for the establishment of the hub.
5.2 Fundraising Proposal: Develop a proposal for the establishment of a business enterprise hub, including its purpose and modus operandi. This proposal will be used by HBP to approach the options identified in task 3.3 in the private/corporate sector for the hub to either be a satellite of an existing hub or to be fully funded as a corporate social responsibility endeavour.

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