1. Department of Small Business Development
Incentives and Grants Unit - Black Business Supplier Development Program (BBSDP)
Business Plan 2015/16
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2. Structure of the Business Plan
DSBD Strategic Objective
Legislative, Policies and Strategis
Objectives/goals of the Incentives Unit
Mission and Vision
Unit Programmes
Black Business Supplier Development Program (BBSDP)
Cooperative Incentive Scheme (CIS)
Youth, Women and People with Disabilities Business Development Program (YWPWD)
Business Units Performance Plan
Financial Plan
Risks/Challenges/Areas of improvement
Organisational Human needs
Key projects 1
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3. Departments Strategic Objective
DSBD Strategic Objective
To Create an enabling environment for the development and growth of sustainable small businesses that would ensure that they contribute to the creation of employment and economic growth
The Incentives Unit Alignment to DSBD
To provide incentives programmes that promote broader participation in the mainstream economy by small businesses and co operative owned by individuals from historically disadvantaged communities and marginalised regions. 2
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4. Incentives Units Legislative, Policies and Strategies
The Public Finance Management Act of 1999 and amended
National Small Business Act of 1996 and as amended in 2004;
The Co-Operatives Act of 2013
Broad Based Black Economic Empowerment Amendment Act, 2013
The Integrated Small Business Development Strategy (2004)
The New Growth Path
The Industrial Policy Action Plan
National Development Plan
The DSBD Strategic Plan
The Medium Term Strategic Framework ( Outcome 4: Decent employment through inclusive growth) 3
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5. Functions of the Unit
Implement incentives that support employment creation and support National Priorities
Achieve an improved customer satisfaction
Design and Implement Incentives programmes that support sustainability of SMME and Cooperative, competitiveness, job creation and equity
Provide Post investment Support
Build a strong organisational capability
Build strategic business linkages that ensure mutually beneficial partnerships 4
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6. Rationale for Co-operatives Development Unit
Vision & Mission Unit
Rationale for Co-operatives Development Unit
Vision & Mission:
To administer a set of incentive instruments which are meant to stimulate and facilitate the development of sustainable, competitive enterprises through the efficient provision of effective and accessible incentive measures that support national priorities ( Unemployment, Inequality and Poverty) 5
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7. Rationale for Co-operatives Development Unit
Unit Programmes
Rationale for Co-operatives Development Unit
Black Business Supplier Development Program (BBSDP)
Cooperatives Incentive Scheme (CIS)
Shared Economic Infrastructure Facility (SEIF)
Youth, Women and People with Disabilities Business Development Program (YWPWD) 6
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8. Rationale for Co-operatives Development Unit
Black Business Supplier Development Program (BBSDP)
Rationale for Co-operatives Development Unit
BRIEF BACKGROUND ABOUT BBSDP
The current BBSDP was relaunched in 2010 in order to address the constraints that many black-owned small enterprises faced in participating in the mainstream economy.
Start Date: September 2010
End date : July 2017
Program aligned with BBBEE policy
Impact Study for 2 yrs. to be undertaken starting in the current financial year 7
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9. Rationale for Co-operatives Development Unit
Black Business Supplier Development Program (BBSDP)
Rationale for Co-operatives Development Unit
BBSDP OBJECTIVE
To fast-track existing SMMEs that exhibit good potential for growth into the mainstream economy.
To grow black-owned enterprises by fostering linkages between black SMMEs, private and public sector entities. 
To complement current affirmative procurement and outsourcing initiatives of corporate and public entities.
To enhance the capacity of grant recipient enterprises to successfully compete for corporate and public sector procurement and outsourcing opportunities. 8
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10. Black Business Supplier Development Program (BBSDP)
Rationale for Co-operatives Development Unit
BBSDP OFFERING
Eligible Enterprises can receive an incentive grant value up to R1 million
The program provides grants to a maximum of R for
tools, machinery and equipment and;
R for business development and training interventions per eligible enterprise. 9
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11. Black Business Supplier Development Program (BBSDP)
Rationale for Co-operatives Development Unit
COST SHARING STRUCTURE
For Tools , Machinery and Equipments,
the BBSDP will offer a cost-sharing grant of 50% of the
approved costs of qualifying interventions, and approved
enterprises will contribute 50% of the necessary costs (for
business development services and training).
For Enterprise Support Services interventions,
the BBSDP will offer a cost-sharing grant of 80% of the
enterprises will contribute 20% of the necessary costs (for 10
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12. Rationale for Co-operatives Development Unit
Black Business Supplier Development Program (BBSDP)
Rationale for Co-operatives Development Unit
QUALIFYING CRITERIA
Predominantly black-owned (51%).
Have a predominantly black management team (50%).
R to R35million annual turnover.
Operating or trading for at least one year.
If operating for less than a year and or below the entry turnover threshold but has a valid tender or contract the applications may be considered at the sole discretion of the dsbd. 11
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13. Rationale for Co-operatives Development Unit
Black Business Supplier Development Program (BBSDP)
Rationale for Co-operatives Development Unit
EXAMPLES OF SOME OF THE INTERVENTIONS THAT HAVE BEEN SUPPORTED
ENTERPRISE SUPPORT
SERVICES (ESS) -
COST SHARING 80:20
Quality management system and assurance (e.g. International Organisation for Standardisation (ISO), certification, accreditation, grading costs);
Patenting and intellectual property rights;
Production and productivity improvements;
Product improvements;
BEE rating and certification; and
Training
MACHINERY TOOLS AND EQUIPMENTS
TLB’s
CNC machines , griding machines,
Brick making equipments
IT Servers
Graders 12
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14. Rationale for Co-operatives Development Unit
BBSDP APPROVALS 2011/ /15
Rationale for Co-operatives Development Unit
3368 BBSDP approvals to the value of R 1.3 billion since 2011 to date 13
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15. Rationale for Co-operatives Development Unit
GEOGRAPHIC SPREAD 2011/ /15 14
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16. Rationale for Co-operatives Development Unit
Sector Breakdown
Rationale for Co-operatives Development Unit
APPROVALS PER SECTOR
2011 to 2015
Sector
Number
Value (‘000)
Construction
1174 R
Services
1051 R
Manufacturing
380 R
Retail
391 R
Agriculture 86
R31 298
Transport & Com
126
R48 359
Mining & Quarrying 73
R27 795
3688 15
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17. TOTAL APPROVALS: FEMALE-OWNED SMMEs
Black Business Supplier Development Program (BBSDP)
BBSDP: APPROVED FEMALE-OWNED SMMES
TOTAL APPROVALS: FEMALE-OWNED SMMEs
2011/12
No Approvals :120
Value :
2012/13
Approvals: 409
Incentive: R
2013/14
Approvals: 375
Incentives : R
2014/15
Approvals: 250
Incentives : R
Total value of value of female owned enterprises is R
No of Approved Projects for the periods under review is 1154
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18. Black Business Supplier Development Program (BBSDP)
PROGRAM DISBURSEMENTS PERFORMANCE SINCE 2011 .
Total value of claims paid over the duration under review is R 738 million vs Budget allocation of R 550 million
Virement of R 249 million
Cumulative Expenditure (Approvals) vs Disbursements over the duration under review is
Approvals R1,3 billion vs R 738 million
BBSDP Report on Jobs Supported
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19. BBSDP HIGHLIGHT PROJECT: EASTERN CAPE
Black Business Supplier Development Program (BBSDP)
BBSDP HIGHLIGHT PROJECT: EASTERN CAPE
Tourism Sector
Mentor Guesthouse in Queenstown
Approved for signage and branding worth R21 000
Female owned BBSDP enterprises
Signage increased the number of drive-by customers which now accounts for 20% of all customers
Increase in customers enabled the owner to create four new, permanent jobs from a total 11 permanent and 4 part time jobs
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20. BBSDP HIGHLIGHT PROJECT: WESTERN CAPE
Black Business Supplier Development Program (BBSDP)
BBSDP HIGHLIGHT PROJECT: WESTERN CAPE
NK CHARTERS
COMPANY BACKGROUND
Nonkululeko Charters was established and formed Mr Esa Yacoob in 2009 because of the love of boats. The company offers leisure boat trips V & A Waterfront in the Western Cape. Popular routes include the Robben Island tourist destination.
Other services that the business offers are: Leisure boat trips to , Private chartered trips , School boat trips.  The company received a grant through BBSDP to the tune of R to wards acquiring new faster engine, heat exchanger and navigations system.
SUCCESS STORY:
Through the BBSDP grant approved for Nonkululeko Charters for, tools and machinery to purchase, they were able to create jobs for previously unemployed people. Currently they are standing at 13 from 7, meaning a 6 employee increase. Turnover increased with R528,
Female owned BBSDP enterprises
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21. BBSDP HIGHLIGHT PROJECT: GAUTENG
Black Business Supplier Development Program (BBSDP)
BBSDP HIGHLIGHT PROJECT: GAUTENG
The Kitchen and Cupboard Warehouse (KCW)
COMPANY BACKGROUND
KCW is a professional woodworking company specializing in fitting store fronts and complex kitchen environments which they started in 1989 and operates from its own premises in Village Main in Gauteng. Their main clients are the banks and the general public.
Received a grant to the value of R for various wood working tools/equipment such as spray booth, panel saw, wheel feeder, spindle moulder etc.
   
Female owned BBSDP enterprises
SUCCESS STORY:
Increase staff from 20 Staff members to 28 staff members. Planning to add 4 new employees when their turnover increases further.
Turnover has increased from Feb 2014 to Feb 2015 by R914,
Their entity was the first to have a truck spray booth in the motor industry and have used the equipment to service the Etekwini Municipality Tender.
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22. BBSDP HIGHLIGHT PROJECT: GAUTENG
Black Business Supplier Development Program (BBSDP)
BBSDP HIGHLIGHT PROJECT: GAUTENG
SEZISIIZE t/a 5 STAR CARWASH
Located in Mofolo Soweto
Started in 2008 by sole member Mr Thulani Msimango with 2 buckets and 3 tins of polish. The company has since grown to employ over 30 local youths and has opened a second branch in Naturena
The company has benefited R from BBSDP over 2 applications (R for marketing and signage as well as R for Equipment)
Female owned BBSDP enterprises
Services offered include Fleet carwash, Valet Carwash as well as Executive Carwash.
Mr Msimango Vision is to become a preferred service provider to insurance companies, local municipality and the public at large

23. BBSDP HIGHLIGHT PROJECT: SOWETO
Black Business Supplier Development Program (BBSDP)
BBSDP HIGHLIGHT PROJECT: SOWETO
The Kitchen and Cupboard Warehouse (KCW)
COMPANY BACKGROUND
KCW is a professional woodworking company specializing in fitting store fronts and complex kitchen environments which they started in 1989 and operates from its own premises in Village Main in Gauteng. Their main clients are the banks and the general public.
Received a grant to the value of R for various wood working tools/equipment such as spray booth, panel saw, wheel feeder, spindle moulder etc.
   
Female owned BBSDP enterprises
SUCCESS STORY:
Increase staff from 20 Staff members to 28 staff members. Planning to add 4 new employees when their turnover increases further.
Turnover has increased from Feb 2014 to Feb 2015 by R914,
Their entity was the first to have a truck spray booth in the motor industry and have used the equipment to service the Etekwini Municipality Tender.
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24. Rationale for Co-operatives Development Unit
Cooperative Incentive Program
Rationale for Co-operatives Development Unit
PROGRAM OBJECTIVE
To improve the viability and competitiveness of a co-operative by lowering the cost of doing business. 
To assist the co-operatives to acquire their start up equipment. 
To build an Initial asset base for emerging co-operatives to enable them to leverage other support.
ELIGIBLE CRITERIA
Incorporated and registered in South Africa in terms of the Co-operatives Act of 1999.
Emerging co-operatives with a majority black ownership.
Have projects in any of the different economic sectors.
Adhere to co-operative principles (have at least five members: Be owned by a historically disadvantaged individual (HDI). Be rural or semi-urban based.
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25. Rationale for Co-operatives Development Unit
Cooperative Incentive Program
Rationale for Co-operatives Development Unit
ELIGIBLE GRANT
Qualifying enterprises are eligìble to receive a maximum of up
to R grant
Cost Structure is as follows:
Matching Grant = 100%
Maximum Grant R
Minimum Grant R10 000
ELIGIBLE PROJECTS
Business Development Services
Feasibility Studies /Market Research
Production Efficiency
Technological Improvement Projects
Plant and Machinery: 60%
Start-up requirement (discretion of AC)
Working Capital (Opening stock-start ups): 40%
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26. Shared Economic Infrastructure Facility (SEIF)
Rationale for Co-operatives Development Unit
PROGRAM OBJECTIVES
The programme is aimed at supporting enterprises by stimulating and encouraging Public and or Private sector investment through efforts of lowering infrastructure costs.
The programme intends to leverage both public and private sector investment that would provide necessary infrastructure by: creating an enabling environment for businesses to crowd-in investment mostly in townships, rural areas and the inner city where business activity is taking place
PROGRAM OFFERING
The programme is a 50:50 cost-sharing grant made available on a reimbursable basis, where the dsbd makes a
contribution of 50% towards the qualifying infrastructure
project upon the completion of agreed milestones.
The programme is capped at a maximum grant of R5 million (VAT inclusive) per qualifying applicant.
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27. Rationale for Co-operatives Development Unit
Operations and Stakeholder Management Functions
Rationale for Co-operatives Development Unit
Operations and Stake Holder Management Functions
Function is to provide strategic and operational support to the Incentive Unit with regard to the facilitation, establishment, maintenance and growth of strategic partnerships for beneficiaries of dsbd offerings
To provide support services to Incentives Unit on Reporting, Strategic and Business planning, Knowledge management, Governance, Risk, Compliance and Internal controls
To facilitate the dissemination of information on DSBD incentives as well as provide business advisory services to potential and existing clients
Strategic linkages targeted: Eskom Holdings Supplier Development Program, Transnet Supplier Development Program, Small Enterprise Finance Agency (sefa), Small Enterprise Development Agency (seda) and Isivande Women’s Fund.
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28. Rationale for Co-operatives Development Unit
Product Development Support Unit
Rationale for Co-operatives Development Unit
Product Development Functions
To develop and review incentive programs to support the National Development Plan (NDP), New Growth Path (NGP) and sector strategies to address identified market failures.
The product development function will cater for the development of new incentive schemes as well as the review of existing incentive programs within dsbd. The plans is as follows:
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29. Rationale for Co-operatives Development Unit
Unit Programs
Rationale for Co-operatives Development Unit
Products Pipeline :
Incentive Program/ Project Description
Type
Status
Project/ Purpose
Miles stones and Completion Dates 1
Youth, Women and People with Disabilities Business Development Scheme (YWBDS)
Incentive
Ready
In progress
to provide support to youth, people with disabilities and women-owned enterprises in order to increase their capacity to access economic opportunities, enhance competitiveness and improve skills. with turnovers from R60k to R 500k
Q1-Ministers Guidelines Submission Approval, Board Members Appointment and Launch
Q2-Q4 implementing the program 2
Shared Economic Infrastructure Facility (SEIF)
Ready- In progress
As part of a process of continuing to strengthen economic development through broadening participation in the economy, a new robust programme is thus provided to unlock public and private sector investment by providing infrastructure that is critical and necessary to crowd-in investment mostly in townships, rural areas and inner city where there is clear business activity taking place.
Q1 Guidelines Approval and Launch
Q2-Q4 – Implementing program 5
Informal Business Upliftment Facility
Conceptual Stage
IBUF is a 100% grant offered to informal and micro enterprises to assist them in improving their competitiveness and sustainability in order to become part of the mainstream economy with turnovers from Ro to R 60k
Q1 – Set up project team , Need Analysis - Stakeholder consultations , Draft Guidelines ,Ministers Guidelines Submission Approval 6
Cooperative incentive Scheme
Amendment
To make Amendments to existing CIS program
Q4 to be completed 8.
Creative Industries Incentive Program
To design and develop a new incentive program for the creative industries
Q1 – Set up project team , Need Analysis
Q2 - Stakeholder consultations , Draft Guidelines
Q3- Bench making with other countries
Q3 – Ministers Guidelines Submission Approval
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30. Rationale for Co-operatives Development Unit
Unit Performance Plan
Rationale for Co-operatives Development Unit
Programme 3: Enterprise Development And Entrepreneurship
Programme Performance Indicator
Audited/ Actual Performance
Estimated performance 2014/15
Medium-Term Targets
2011/12
2012/13
2013/14
2015/16
2016/17
2017/18
Support number of Enterprises approved for the Black Business Supplier Development Scheme (BBSDP).
306
1212
1066
783
600
700
Support number of Enterprises approved for the Women Business Development Scheme (WBDS).
200
Support number of youth enterprises funded through the Youth Black Business Supplier Development Programme (YBBSDP).
Number of Primary Co-operatives receiving funding, training and access to markets.
182
314
243
270
214
683
822
Establishment and upgrading of shared economic infrastructure through Partnership Agreements with Provincial and Local Governments. 5 7
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31. Financial Plans 30 Budget breakdown in terms of Programs and projects
Categories
Allocated Budget
R’000
Women Owned Business Owned Support Programs
- Women incentive Program R
Youth Business Support Programs
- Youth Incentive Program
Informal Business Support Programs
Shared infrastructure Facility Program
- Informal Business Incentive Program R
Black Business Supplier Development Program (BBSDP) R
Cooperative Incentive Program R
Micro Franchising Project
R 2 000
Total R
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32. Financial Plans Economic classification Allocated Budget R’000
Budget breakdown in terms of Programs and projects
Economic classification
Allocated Budget
R’000
Compensation of employees
R 19,292
Goods & services
R 2,861
Transfers & subsidies
R 300 000
Payment for capital
None
Total
R 322 153
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33. Risks/Challenges/Areas of ImprovementNo
Risk name/description
Current control
Impact
Likelihood
Actions to improve management of the risk
Action Owner
Due date 1
Non performance of Supplier
Post investment inspections
High
Responsible Program Manager(s)
Continuous 2
Applicants and stakeholders defrauding the dsbd by submitting false information on applications and claims
Intense interrogation of each application and claim
Conduct regular inspections to applicants, Service Providers and Network Facilitators to verify information submitted by them. 3
Non performance of applicants
Submission of rapid assessment
Clients to show proof of payment of their contribution. 4
Slow Uptake of Applications for newly Launched Program
SEIF ,
YWPDP
Develop road shows and Stakeholder sessions
Unit , Policy Units
All the four Quarters
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34. Organisational Resources
Workforce Profile according to Salary levels
Levels
Filled
Vacant
Total
New Additional
Deputy Director-General
Chief Director  1
Director 2
Deputy Director 6 4
Assistant Director 1 8
Personal Assistant
Level 1-8 29 30 15
TOTAL 43 3 46 31
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35. Rationale for Co-operatives Development Unit
KEY CHALLEGES FROM THE UNIT
Rationale for Co-operatives Development Unit
Applications and Claims Processing
Average turnaround times in the processing
The entire claims process is completely manual
(NO IT Support)
Deliverable inspections can be only be conducted once a month for economic reasons not as and when claims are ready
Budgetary constrains (awaiting virements or transfers during the year) results in delays
The entire claims process is completely manual (NO IT Support)
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36. KEY PROJECTS 35 Description of the project Total Budget
R’000 (In case of multi-year projects
Budget for 2015/16
R’000
Period
Informal Business Upliftment Scheme
- W& R Seta , MER Seta  R
 R 000
2nd Quarter 2015/16 and on going
Youth and Cooperatives Projects
Installation of Solar panels in EC
National Youth Venture Capital Support Program  R
R 000 
2nd Quarter 2015/16
Seda partnership and rollout CIS and YWBDS
June / July 2015/16 and no end date
IT Adaptation of IEMS Under DSBD
3rd Quarter 2015/16
Micro Franchising Project 5 projects
R2 000
31 March 2016
Isivande Strategic Partnership
R 000
July 2015 partnership in place and ongoing
Sefa Strategic Partnership
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37. THANK YOU
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