1. Department of Small Business Strategic Plan 2014-19

2. Primary Policy Instruments Mandate Vision Mission Strategic Objectives Five-year strategic plan MTEF 2015 – 2018 Budget Outline

3. The National Development Plan provides the framework for achieving radical economic transformation It sets a vision for the economy that is inclusive, equitable and fast growing. To achieve that end, it points to the need to grow employment, support productivity and efficiency gains and move toward greater equality. To reach these aims it proposes: – more affordable and efficient infrastructure provision linked to higher levels of public investment; – substantial improvements in basic and post-secondary education; – responsive and efficient regulations; and – appropriate sector strategies. Primary Policy instruments

4. The key operational plans for implementing the National Development Plan and MTSF include : the New Growth Path and the Industrial Policy Action Plan (IPAP). The challenge is to ensure that these strategic plans are translated into action plans with well-defined annual iterations Through IPAP, plans will focus on productive sectors including mining, agriculture and manufacturing Continued

5. Medium Term Strategic Framework : a government strategic plan for 2014-2019 electoral term Reflection of the commitments entailed in the manifesto including commitment to implement the NDP Sets out identified targets and provides for coherence amongst national, provincial and local government Overarching theme : radical socio-economic transformation and service delivery Continued

6. Outcome 4 Decent Employment through inclusive economic growth Sub outcome 2: Elimination of unnecessary regulatory burdens and lower price increases for key inputs Measures to reduce red tape around authorisation for investment in metros ( dti and SBD) Enhance township economies by DFIs ( supported by EDD) Enhanced support for township economies through improved transport and commuter costs ( SBD supported by COGTA, PICC, DOT DHS) Continued

7. Coaching and incubation programmes in support of SMMEs and COOPS( supported by EDD, DAFF and the dti ) Programmes to ensure increased access to employment and entrepreneurship for black women and youth ( advancing support for emerging and smaller enterprise) Develop appropriate sanctions with regard to non compliance in relation to the 30 Day payment period ) Continued

8. The department will lead an integrated approach to the promotion and development of small businesses and cooperatives through a focus on the economic and legislative drivers that stimulate entrepreneurship to contribute to radical economic transformation. This drive will foster increased employment, poverty reduction and reduced inequality. Mandate

9. Vision A radically transformed economy through effective development and increased participation of SMMEs and cooperatives in the mainstream economy. 9

10. Mission 10 To create a conducive environment for the development and growth of small businesses and cooperatives through the provision of enhanced financial and non-financial support services, competitiveness, market access, promotion of entrepreneurship, advancing localisation and leveraging on public and private procurement.

11. Values Customer-focused Integrity Honesty Efficiency Accessibility Commitment 11.

12. Strategic Objectives 1.To facilitate the development and growth of small businesses and co-operatives to contribute to inclusive and shared economic growth and job creation through public and private sector procurement 2.To facilitate radical economic transformation through increased participation of small businesses and cooperatives in the mainstream economy 3.To advocate for a conducive regulatory environment for small businesses and co-operatives to enable access to finance, investment, trade and market access in an equitable and sustainable manner 4.Facilitate partnerships with all spheres of government as well as the private sector to ensure mutual cooperation that will benefit small businesses and co-operatives 12

13. Strategic Objectives 5. To facilitate access to adequate infrastructure and incentives that are designed to attract investment to underdeveloped communities and reduce costs of doing business by small businesses and cooperatives. 13

14. Strategic Objective 1: To facilitate the development and growth of small businesses and co-operatives to contribute to inclusive and shared economic growth and job creation through public and private sector procurement OutcomeOutputPerformance Indicator/ Measure Targets for 2014 - 20192014/20152015/162016/20172017/182018/19 Increased contributi on to GDP, sustainab le livelihood s and creation of job opportunit ies Implement ation of public and private sector procureme nt programm e Implement ation of Sector Catalytic Projects Increased number of SMMEs and Co-operatives accessing public and private sector procurement opportunities An increase in the establishment of Co- operatives and Incubators 70 000 SMMEs and Co-ops preferred to access public and private sector procurement opportunities drawn from an economic profiling exercise to be carried out Linking of 100 co-operatives to market value chains (manufacturing, agro- processing, energy, clothing and textile) Establishment of 50 Incubators starting from the 2014/15 financial year National Treasury to issue Practice Notes Use BBBEEE Codes to mobilise for inclusion of SMMEs and Cooperatives in private sector procurement 5 6 10 000 20 8 15 000 25 10 20 000 25 12 25 000 25 14

15. Strategic Objective 1: To facilitate the development and growth of small businesses and co-operatives to contribute to inclusive and shared economic growth and job creation through public and private sector procurement OutcomeOutputPerformance Indicator/ Measure Targets for 2014 - 20192014/20152015/162016/20172017/182018/19 Increased contributi on to GDP, sustainab le livelihood s and creation of job opportunit ies Implement ation of Sector Catalytic Projects An increase in the establishment of Co- operatives and Incubators Establishment of 50 Cooperatives in Renewable Energy, Manufacturing, Services, Mining, Agro- processing, Clothing, footwear, textile and leather, and Biofuels. 0 101213 15

16. Strategic Objective 1: To facilitate the development and growth of small businesses and co-operatives to contribute to inclusive and shared economic growth and job creation through public and private sector procurement OutcomeOutputPerformance Indicator/ Measure Targets for 2014 - 20192014/152015/162016/20172017/182018/19 Increased contributi on to GDP, sustainabl e livelihoods and creation of job opportunit ies Informal Traders Upliftment Project implemente d Co- operatives Developme nt Agency established An increase in the provision of adequate skills and infrastructure support to informal businesses A fully operational Agency with dedicated and skilled co- operatives managers 3300 informal business owners selected from each province for training prioritising Presidential Nodes 3234 primary co-operatives receiving funding, training and access to market 45 Secondary Co-operatives funded 300 270 3 600 371 6 700 685 9 800 822 12 900 1086 15

17. Strategic Objective 1: To facilitate the development and growth of small businesses and co-operatives to contribute to inclusive and shared economic growth and job creation through public and private sector procurement OutcomeOutputPerformance Indicator/ Measure Annual Targets for 2014 - 20192014/152015/162016/20172017/182018/19 Increased contribution to GDP, sustainable livelihoods and creation of job opportunities Decentralisat ion of business support services Youth Black Business supplier Development Programme implemented Capacity building and co-location for SEDA Branches Funding of Youth Enterprises 72 SEDA Branches trained 140 co-location points 1500 Youth Enterprises funded 5 10 40 10 25 200 15 30 300 20 35 400 22 40 560

18. Strategic Objective 2 To facilitate radical economic transformation through increased participation of small businesses and cooperatives in the mainstream economy OutcomeOutputPerformance Indicator/ Measure Targets for 2014 - 20192014/152015/162016/20172017/182018/19 Increased participati on of SMMEs and Co- operatives in the mainstrea m of the economy Centers for Entreprene urship established Enterprise Cadet Scheme Mass Youth Enterprise Creation Programme Global Exporter Passport Programme Signing of MoAs with hosting academic institutions An increase number of new enterprises established Increased creation of Youth owned enterprises Accelerated development of Export ready SMMEs Centers opened in 20 hosting academic institutions 600 new enterprises established 3000 Youth enterprises launched over a 5-year period 6400 Export ready SMMEs developed to consider opportunities in identified international markets ( market access) 2 0 1000 3 60 300 1200 4 118 700 1300 5 200 800 1400 6 220 1200 1500

19. Strategic Objective 3: To advocate for a conducive regulatory environment for small businesses and co-operatives to enable access to finance, investment, trade and market access in an equitable and sustainable manner OutcomeOutputPerformance Indicator/ Measure Target for 2014 – 20192014/152015/162016/20172017/182018/19 Simplified regulatory environme nt to promote competitiv eness and market access Amendment of the National Small Business Act, 1996 (No.102 of 1996) Roll-out of Red tape reduction guidelines championed Advocate implementa tion of set- asides programme Commence the amendment of the Act during the 2014/15 financial year Government- wide implementation of red tape reduction programme Government- wide implementation of set-asides programme The Act aligned to the mandate of the department to remove constrains for SMMEs and Co- operatives development Red tape reduction guideliness institutionalised at all state institutions Consideratio n of administratio n and legislative processes Conduct sector specific scoping exercise on regulatory constraints Issuing of the practice note by National Treasury Tabling and Implementati on of the Act Obtain Cabinet approval for adoption of guidelines as national and provincial policy Monitoring of effective implementati on of set- asides programme Implementation and monitoring of compliance Conduct sector specific scoping exercise on regulatory constraints Monitoring of effective implementation of set-asides programme Implementation and monitoring of compliance Conduct sector specific scoping exercise on regulatory constraints Monitor and assess implementation of set-asides programme Implementati on and monitoring of compliance

20. Strategic Objective 3: To advocate for a conducive regulatory environment for small businesses and co-operatives to enable access to finance, investment, trade and market access in an equitable and sustainable manner OutcomeOutputPerformance Indicator/ Measure Target for 2014 – 20192014/152015/162016/20172017/182018/19 Simplified regulatory environme nt to promote competitiv eness and market access Developme ntal Cooperative s Model finalised Developmental Cooperatives Model implemented Model adopted countrywide and sustainable cooperatives that contribute to economic growth and job creation established Draft model developed Model approved, aligned with provinces (capacity building) and implemented ImplementationMonitoring and Evaluation

21. Strategic Objective 4 Facilitate partnerships with all spheres of government as well as the private sector to ensure mutual cooperation that will benefit small businesses and co-operatives OutcomeOutputPerformance Indicator/ Measure Targets for 2014 – 20192014/152015/162016/20172017/182018/19 Increased participati on of role players to support SMMEs and Co- operatives developm ent Mainstreamin g of Youth (including women and people with disability) enterprises through transversal agreements in the following sectors: clothing and textile, agriculture, infrastructure, energy Export Villages Signing of transversal agreements between dsbd and all state institutions to facilitate market access Development of an Export Village Strategy and Implementation Plan 120 000 (youth, women and people with disability) jobs created through the signed transversal agreements 9 Export Villages rolled- out across the country to provide capacity building and market access for SMMEs and cooperatives 0000 30 000 1 30 000 2 30 000 3 30 000 3

22. Strategic Objective 4: Facilitate partnerships with all spheres of government as well as the private sector to ensure mutual cooperation that will benefit small businesses and co-operatives OutcomeOutputPerformance Indicator/ Measure Targets for 2014 – 20192014/152015/162016/20172017/182018/19 Increased participati on of role players to support SMMEs and Co- operatives developm ent National Enterprise Developme nt Fund established Shared Economic Infrastructu re Facility implemente d Forging sustainable partnerships with the private sector to benefit SMMEs and Co- operatives Accelerated Partnership Agreements with Provincial and Local Government 7000 start-ups and growth oriented SMMEs and Co- operatives that access the Fund 278 Municipalities partnering with the dsbd Designing criteria for disbursing the funding and lobby the private sector to contribute to the fund 10 1000 30 1500 50 2000 88 2500 100

23. Strategic Objective 4 Facilitate partnerships with all spheres of government as well as the private sector to ensure mutual cooperation that will benefit small businesses and co-operatives OutcomeOutputPerformance Indicator/ Measure Targets for 2014 – 20192014/152015/162016/20172017/182018/19 Increased participati on of role players to support SMMEs and Co- operatives developm ent Micro Franchising Incentive designed and approved Accelerated identification and packaging of SMMEs and Co-operatives 110 SMMEs and Co- operatives packaged as micro franchisors 5 202530

24. Short-term Priorities Skills, training and capacity building (LED, business development support, technology transfer, innovation and entrepreneurship). Finalise incentives and access to finance delivery model. Identify opportunities for public sector procurement (set- asides programme). Establish business development/marketing section to identify and develop business plans for implementing public sector procurement opportunities. Private sector procurement opportunities (supplier development programmes, revitalisation of mining towns). Develop new policies, review existing policies and implement strategies, i.e. roll-out of key interventions.

25. Long-term Priorities National survey (periodic and reliable statistics) Design training programmes to address skills gaps including sector specific interventions Develop key domestic and international markets Decentralise business development services to include economic profiling and market access Develop and review the regulatory environment

26. Envisaged Impact Incentive programmes aimed at creating new businesses, which will increase the potential for new jobs Public and private sector procurement geared towards improving market access (including growth and development) for black small enterprises and co-operatives (e.g. fixing of potholes) Increased culture of entrepreneurship aimed at increasing the number of new innovate and sustainable business ventures that will contribute to job creation Creating a simplified policy and regulatory environment for SMMEs and Co-operatives development to eradicate poverty, inequality and unemployment

27. Envisaged Impact cont… Through the Export Development Programme companies will improve their ability to export and reduce the costs and risks involved in penetrating foreign markets The provision of technical and business development services to the targeted groups (youth, women and people with disabilities) will result in upgraded skills, improved quality of products, access to local and international markets, enhanced and sustainable enterprises, increased employment. Enhanced support to informal businesses, rural and township enterprises will increase their competitiveness, resulting in sustainable enterprises and retention of existing jobs.

28. 28 MTEF 2015 to 2018 Economic Classification 2015/ 2016 2016/ 2017 2017/ 2018 TOTAL Compensation of Employees 264 219281 394299 688782 663 Good & Services 123 840138 224157 070441 748 Transfer Payments 1 179 0001 298 4001 432 4003 909 740 Payments for Capital Assets 7 7158 4879 33525 537 TOTAL 1 574 7741 726 5051 898 4935 199 772

29. Grants and soft loans Grants and soft loans will be researched and covered as per the Cluster determination The proposal is R2.5 billion over the MTEF period

30. 30 Detail of Transfer Payments Transfer Payments 2015/ 2016 2016/ 2017 2017/ 2018 TOTAL seda 665 000731 500804 6502 201 150 SAWEN 17 00018 70025 57056 270 Isivande 12 00013 20014 52039 720 Incubation Support Programme 200 000220 000242 000662 000 Cooperatives 200 000220 000242 000662 000 Centre for Entrepreneurship 25 00029 00031 00085 000 CDA 60 00066 00072 600198 600 TOTAL 1 179 0001 298 4001 432 3403 909 740

31. Programmes  Programme 1: Administration R534 million  This programme will be comprised of support services to the department in terms of a Chief Information Office, Human Resources, Legal Services, Corporate Governance and Ethics, Auxiliary Services and a unit to execute the marketing and communications of the department. 31

32. Programme  Programme 2: Customised Intervention Programmes R371 million (includes Gender, Innovation, IP, IKMS, Youth, NIBUS, People with disabilities)  The key focus will be striving to improve the quality of financial and non-financial support services to SMMEs and coops. Specific programmes will include support of informal activities through the implementation of the National Informal Business Upliftment Strategy (NIBUS), which will provide subsistence for people who are economically marginalised. In addition to this the department on supporting market access initiatives. 32

33. Programme  Programme 3: Co-operatives R366 million  The department will be implementing a new support model for cooperatives, including implementation of the Co-operatives Act and the establishment of a Cooperatives Development Agency and Tribunal, and developing and providing financial incentives. 33

34. Programme  Programme 4: Research, Policy and Intergovernmental Relations R87 million  Evaluation of existing policies such as National Small Business, Cooperatives, Youth Enterprise Development, Women Empowerment and National Informal strategies with a view to enhance policies in line with the mandate of the Department. The conclusion of transversal agreements with other Government Departments to enhance implementation of Departmental strategies will need to be effected. 34

35. Programme  Programme 5: Enterprise Development and Entrepreneurship R3.8 billion (includes Chief Directorates Enterprise Development, Entrepreneurship and Franchising, Skills Development, Supply Development, Impact Assessment, Regional Industrial special projects and Incentives and soft loans to both SMMEs and Co- operatives)  Coaching and incubation programmes will be provided in support of SMME’s and co-operatives and will include support in capturing innovation and managing intellectual property and indigenous knowledge for small businesses. 35

36. Unforeseen and unavoidable Requested R60 million Allocated R33.7 million R16 million CoE 12.7 million G&S R5 million Capital Assets

37. Thank you