PROGRESS WITH THE ORGANISATIONAL STRUCTURE FOR THE DEPARTMENT OF SMALL BUSINESS DEVELOPMENT

PRESENTATION OUTLINE Purpose of the presentation Structure Progress Transfer of functions and resources from the Department of Trade and Industry Transfer of funding in respect of the Incubation Programme Transfer of SEFA from the IDC

PURPOSE OF THE PRESENTATION To provide progress report to the Portfolio Committee on Small Business Development regarding the organisational structure for the Department of Small Business Development following the meeting held on 02 May 2017.

PROGRESS REGARDING THE ORGANISATIONAL STRUCTURE OF THE DEPARTMENT OF SMALL BUSINESS DEVELOPMENT On 2 May 2017, the DPSA presented to the Portfolio Committee (PC) progress on the Organisational Structure of the Department of Small Business Development. The PC deliberated on the presentation by Officials from the Department of Public Service and Administration and made recommendations which the DPSA had to share with the Department of Small Business Development (DSBD). Subsequent to the meeting of 2 May 2017, a meeting was held between officials from the DPSA and the DSBD on 29 June 2017 in order to provide the DSBD with feedback and recommendations of the PC. A follow-up meeting was held on 29 September 2017 to get feedback on progress made by the DSBD to address the recommendations of the PC. Below are the recommendations of the Portfolio Committee and progress by the Department of SBD as at 28 September 2017.

Structure Progress as at 28 September 2017 In respect of the functional and organisational structure of the Department of Small Business Development (DSBD), the following progress was made: The Department finalised the service delivery model. All posts transferred from the DTI have been catered for on the approved start-up structure. Placement on the start-up structure have been completed and submitted to the DPSA for record purposes. The Department continued with the redesign process. Priority has been given to Branch 2: Sector Policy and Research. The business case is evolving to reflect the nature of operational requirements. The Job Evaluation process for all posts are underway.

STRUCTURE REVIEW PROCESS PHASE 1 PLACEMENT ON THE START-UP STRUCTURE Step 1: Appointment of a Placement Committee Step 2: Appointment of an Appeals Committee Step 3: Preliminary placement on the start-up structure Step 4: Consultation on placement Step 5: Consideration of requests for review by Placement Committee Step 6: Communication of Placement Committee final decision Step 7: Referral to Appeals Committee Step 8: Consideration of appeals by Committee Step 9: Communication of Appeals Committee final decisions Step 10: Finalisation of placement PHASE 2 REVIEW OF THE SERVICE DELIVERY MODEL Step 1: Forward SDM to Business Units for review Step 2: Business Units update SDM Step 3: Consolidate inputs provided by Business Units Step 4: Submit SDM for approval PHASE 3 REDESIGN OF BUSINESS UNITS Content – Line Procedure - HR Step 1: Business Units / Branch initiate redesign process. Step 2: Development / Review of job descriptions Step 3: Job Evaluation (determine grade of posts) Step 4: Workload Analysis (determine number of posts required) Step 5: Determination of funding (NT) Step 6: Business Case Step 7: Submit business case for approval PHASE 4 APPROVAL OF STRUCTURE Step 1: Request for formal consultation with MPSA Step 2: Feedback / Recommendations from MPSA Step 3: Address concerns from MPSA Step 4: Approval of structure PHASE 5 MATCHING & PLACING TO NEW STRUCTURE Step 1: Appointment of a Service Provider Step 2: Preliminary placements - Management Step 3: Assessment of employee profile against preliminary placement job profile by Service Provider Step 4: Recommended placement by Service Provider Step 5: Matching & Placing Committee confirms placement (decision) Step 5: Communication of placement Step 6: Referral to Appeals Committee Step 7: Communication of Appeals Committee final decisions HR LEADS STRATEGY LEADS (Dir: Strategy) LINE LEADS (SMS members in Branches 2, 3 & 4) CHANGE MAN. LEADS (Service Provider & Placement Panel) HR LEADS 20 MAY – 30 JUL 2017 1 APR - 15 NOV 2017 1 FEB - 31 MAR 2018 MIGRATION PROCESS INTERPHASE 1 JUL 2017 - 20 JAN 2018 1 MAR - 31 MAY 2017

Transfer of Resources from the dti The transfer agreement between the dti and DSBD indicated that 165 posts will be transferred in respect of the core functions. In addition, 10% will be transferred to render support in respect of Programme 1: Administration. DSBD only started functioning on its own establishment (PERSAL) in April 2015. As at 19 May 2015 DSBD had: 178 posts on the approved establishment of which 143 were filled and 35 were vacant. 9 appointments additional to the establishment 152 employees. 114 Core staff/posts were transferred from the dti. No Core staff in respect of Export Development were transferred (while a transfer reflected (5 posts) the staff and posts returned to the dti) 20 Support staff employees were transferred from the dti (these include administrative support staff).

FEEDBACK ON RECOMMENDATIONS OF THE PORTFOLIO COMMITTEE ON SMALL BUSINESS DEVELOPMENT PC RECOMMENDATIONS RESPONSE BY THE DSBD a) Linking of the organisational structure to the mandate of the Department b) Coordination role of the Department in relation to other government departments that perform a function pertaining to cooperatives and SMMEs The Department finalised its service delivery model and is in the process of redesigning its organisational structure which is aligned to its strategic plan and service delivery model. The business case outlining the rationale for the proposed changes has been developed by the Department. The Job Evaluation process for all posts is underway The respective organisational structure caters for the coordination role of the Department as raised in the recommendations of the PC. The proposed macro organisational structure is reflected below.

PROPOSED MACRO ORGANISATIONAL STRUCTURE OF THE DSBD

BRANCH 2: SECTOR POLICY & RESEARCH PURPOSE: To create an enabling environment for the development and growth of sustainable small businesses and co-operatives through; the; the; and effective to ensure the desired impact is achieved in contributing toward the creation of employment and economic growth by SMMEs and Cooperatives FUNCTIONS: 1. Provide research services to direct evidence based policy making 2. Develop and review policies and legislation that create and promote sustainable growth opportunities for cooperatives and SMMEs 3. Promote the sector's interests in the global space at regional and international forums. 4. Provide monitoring and evaluation services of programmes UNIT: RESEARCH PURPOSE: To provide research and knowledge management services to direct sector thought leadership and guide evidence based policy making and programme design 1. Develop a small business development research agenda . 2. Conduct sector economic research and modelling 3. Determine SMME and Cooperative development trends 4. Coordinate small business development research dialogues 5. Manage the provision of small business development economic information services. UNIT: POLICY & LEGISLATION PURPOSE: To develop and review policies and legislation to create and promote sustainable growth opportunities for small businesses and co-operatives and to advance coordination and cooperation amongst the different spheres of government 1. Develop and review policies 2. Develop and review legislation (inclusive of regulations) 3. Conduct administrative, regulatory and legislative review 4. Influence / Inform the review of policies and legislation that impedes the growth and development of SMMEs and Cooperatives 5. Lead and strengthen Intergovernmental Relations mechanisms . UNIT: INTERNATIONAL COOPERATION AND TRADE PROMOTION PURPOSE: To promote the sector’s interests in the global space through negotiations and lobbying at different regional and international forums and the development of strategies and position papers 1. Develop small business policy inputs for international trade agreements in BRICS, G20, SADC, Africa Trade, WTO, etc. 2. Develop trade positions that will promote investments in SMMEs and Cooperatives. 3. Influence / Inform international agreements. (Provide for the protection of the interests of SMMEs on International Agreements) 4. Manage and coordinate donor funding interventions 6. Manage international relations interventions focusing on SMME and Cooperatives development (BRICS, IBSA, G20, Trade agreements, etc) UNIT: MONITORING & EVALUATION PURPOSE: To provide monitoring and evaluation services to evaluate performance and identify factors that improve service delivery outcomes across government; and benchmarking against international best practices 1. Conduct impact assessment of small business development programmes and services 2. Implement and review multi-year evaluation plan 3. Periodic review of SMME and Cooperatives performance 4. Monitor and evaluate implementation of 30% set asides public procurement 5. Monitor and evaluate the impact of programmes

BRANCH 3: INTEGRATED COOPERATIVES DEVELOPMENT PURPOSE: To promote an ecosystem that enhances the establishment, growth and sustainability of cooperatives through the design, piloting and monitoring of the impact of support services and instruments; championing of functional partnerships agreements; the advocacy and thought leadership in advancing economic growth and job creation by Cooperatives; and the establishment and governance of the institutional arrangements provided for in the Cooperatives Development Act. FUNCTIONS: 1. Manage and facilitate the creation of new, and growth of existing cooperatives . 2. Review existing and design new approaches applicable across the public sector. 3. Manage strategic partnerships with the private sector, state-owned entities and public sector. UNIT: COOPERATIVES DEVELOPMENT PURPOSE: To manage and facilitate the creation of new cooperatives and the growth of existing cooperatives through clustering and value chain approaches and the establishment and governance of the institutional arrangements provided for in the Cooperatives Development Act. 1. Provide capacity building and institutional support (inclusive of establishment of Agencies and Tribunals) 2. Provide a support service to start-up cooperatives 3. Provide a maintenance and aftercare service to cooperatives 4. Conduct awareness campaigns on cooperatives 5. Provide development support to weak and vulnerable co-operatives located in rural and peri-urban areas UNIT: COOPERATIVES PROGRAMME DESIGN & SUPPORT PURPOSE: To review existing programmes and design new approaches applicable across the public sector based on the review outcomes and change in the cooperatives development landscape and economic conditions. 1. Formulate and review financial support instruments to promote economic viability and sustainability. 2. Develop programmes to assists to improve quality of products, assist local suppliers to expand production capacity 3. Formulate instruments to assist suppliers to reduce input costs; provides a route to market to deserving products UNIT: SUPPLIER DEVELOPMENT & MARKET ACCESS PURPOSE: To manage strategic partnerships with the private sector, state-owned entities and public sector with the aim of developing cooperatives to become suppliers of goods and services; and facilitate readiness to access market opportunities. 1. Establish and build long-term, effective supplier partnerships 2. Identify market access opportunities for cooperatives in the public 3. Coordinate implementation for cooperative enterprises in the public sector 4. Establish procurement opportunities for cooperatives in the private sector 5. Facilitate market opportunities in the international market

BRANCH 4: ENTERPRISE DEVELOPMENT & ENTREPRENEURSHIP PURPOSE: To promote an ecosystem that enhances entrepreneurship and the establishment growth and sustainability of small businesses through the designing, piloting and monitoring of the impact of support services and instruments; the promotion of targeted local enterprise development; championing functional partnerships; advocacy and thought leadership in advancing economic growth and job creation by SMMEs and entrepreneurs. FUNCTIONS: 1. Manage and facilitate the establishment of new and growth of existing enterprises. 2. Review existing and design new programmes 3. Manage and facilitate partnerships on the provision of Market Access 4. Work with municipalities towards improved Local Economic Development 5. Provide leadership and oversight for the development of an entrepreneurship development framework UNIT: ENTERPRISE & SUPPLIER DEVELOPMENT PURPOSE: To manage and facilitate the establishment of new and productive enterprises as well as the sustainability and growth of existing enterprises. 1. Provide an informal business upliftment support service 2. Provide capacity building and institutional support (inclusive of establishment of Agencies and Tribunals) 3. Coordinate integrated enterprise development support between national, provincial and local government 4. Create an enabling environment for SMME development 5. Facilitate supplier development, programme for SMMEs 6. Identify and implement targeted interventions aimed at dealing with violent incidents in the sector 7. Develop and implement a chamber programme for the support of membership-based business organisations. UNIT: SMME PROGRAMME DESIGN & SUPPORT PURPOSE: To review existing programmes and design new ones based on the review outcomes and change in the SMME development landscape and economic conditions. 1. Develop and implement instruments to support the productivity and growth of identified sectors. 2. Develop and implement tools, instruments and facilities for the upliftment of informal businesses and support for chambers 3. Develop new and review existing incentives that support employment creation and national priorities 4. Provide business advisory services to potential and existing clients 5. Provide post-investment support to SMMEs 6. Build strategic business linkages to ensure maximum impact of the incentives UNIT: SMME COMPETITIVENESS SUPPORT PURPOSE: To manage and facilitate strategic partnerships that seek to enhance the work of the department on the provision of Market Access for SMMEs in the supply value chains of corporations, State Owned Enterprises and government departments. To further Work with municipalities through their Integrated Development Plans (IDPs) to develop, enhance and implement the enterprise development programmes toward improved Local Economic Development. 1. Coordinate the local economic programme support. 2. Identify market access opportunities and coordinate the implementation of Private and Public Supplier Development Framework / guidelines. 3 Develop programmes to assist to improve quality of products, assist local suppliers to expand production capacity 4. Promote competitiveness, sustainability and expansion of enterprises 5. Develop and implement pro-growth and pro-poor initiatives in prioritised areas 6. Mobilise financial and technical resources from public and private sector stakeholders for the purpose of fast-tracking enterprise development in prioritised areas 7. Provide technical support and guidance to provinces and municipalities in the implementation of economic development strategies 8. Coordinate and facilitate access to financial and non-financial support for Local Economic Development UNIT: ENTREPRENEURSHIP PURPOSE: To provide leadership and oversight on the conceptualisation, design and implementation of the entrepreneurship development framework, instruments and programmes in support of enterprise development; and advocacy to promote a culture of entrepreneurship in South Africa 1. Provide an entrepreneurship development and support service. 2. Provide a franchise support programme 3. Development and implement departmental skills framework 4. Advocate for a conducive regulatory environment to grow and sustain entrepreneurs and start-ups 5. Promote access to appropriate technologies

Transfer of Funding from the dti and Transfer of SEFA from IDC No funds were transferred from the dti in respect of the Incubation Support programmes. However, National Treasury provided additional funding to the DSBD during 2016/17. A new business case needs to be developed in respect of the transfer of SEFA from the IDC.