1. Department of Small Business Strategic Plan 2014-19

2. The department will focus on enhanced support to Small Business and Cooperatives development with an emphasis on programmes to advance entrepreneurship amongst the previously disadvantaged groups to effectively contribute to job creation and economic growth. Mandate

3. Vision To drive a new era of development, growth and productivity through entrepreneurship and enterprise development towards radical economic transformation. 3

4. Mission 4 To enhance the development and growth of small businesses and cooperatives through the promotion of entrepreneurship and enterprise development

5. Strategic Objectives To facilitate the development and growth of small businesses and co-operatives to contribute to inclusive economic growth and job creation To facilitate the transformation of the economy through entrepreneurship and innovation promotion To advocate for small business and co-operatives conducive regulatory environment that enables investment, trade and enterprise development in an equitable and sustainable manner. Encourage partnerships with other spheres of government as well as the private sector to ensure mutual cooperation that will benefit small businesses and co-operatives 5

6. Strategic Objective 1: To facilitate the development and growth of small businesses and co-operatives to contribute to inclusive economic and job creation OutcomeOutputPerformance Indicator/ Measure Targets for 2014 - 20192014/20152015/162016/20172017/182018/19 Increased contributi on to GDP and creation of job opportunit ies Implement ation of public sector procureme nt programm e Implement ation of Sector Catalytic Projects Number of SMMEs and Co-operatives accessing public sector procurement opportunities Establishment of Co- operatives and Incubators 70 000 SMMEs and coops accessing the public sector procurement opportunities Linking of 100 co-operatives to market value chains Establishment of 50 Incubators timelines National Treasury to issue Practice Notes 5 6 10 000 20 8 15 000 25 10 20 000 25 12 25 000 25 14 Establishment of 50 Cooperatives in manufacturing, services & mining 0 101213 15

7. Strategic Objective 1: To facilitate the development and growth of small businesses and co-operatives to contribute to inclusive economic and job creation OutcomeOutputPerformance Indicator/ Measure Targets for 2014 - 20192014/152015/162016/20172017/182018/19 Increased contributi on to GDP and creation of job opportunit ies Informal Traders Upliftment Project implemente d Co- operatives Developme nt Agency established Provision of adequate skills and infrastructure support to informal businesses A fully operational Agency 3300 informal business owners selected from each province for training for a period of 18 months 3234 primary cooperatives receiving funding and training 45 Secondary Co-operatives funded 300 270 3 600 371 6 700 685 9 800 822 12 900 1086 15

8. Strategic Objective 1: To facilitate the development and growth of small businesses and co-operatives to contribute to inclusive economic and job creation OutcomeOutputPerformance Indicator/ Measure Annual Targets for 2014 - 20192014/152015/162016/20172017/182018/19 Increased contribution to GDP and creation of job opportunities Decentral isation of business support services Youth Black Business supplier Develop ment Program me impleme nted Capacity building for SEDA Branches Funding of Youth Enterprises 72 SEDA Branches trained 740 Youth Enterprises funded 5 40 10 100 15 150 20 200 22 250

9. Strategic Objective 2: To facilitate the transformation of the economy through entrepreneurship and innovation promotion 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 Number of new enterprises established Creation of Youth owned enterprises 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 international markets ( market access) 2 0 1000 3 60 300 1200 4 118 700 1300 5 200 800 1400 6 220 1200 1500

10. Strategic Objective 3: To encourage and advocate for small business and co-operatives conducive regulatory environment OutcomeOutputPerformance Indicator/ Measure Target for 2014 – 20192014/152015/162016/20172017/182018/19 Simplified regulatory environme nt to promote competitit veness Roll-out of Red tape reduction guidelines championed Insitutionalisati on of red tape reduction programme Red tape reduction guideliness institutionalised at all state institutions Conduct sector specific scoping exercise on regulatory constraints Obtain Cabinet approval for adoption of guidelines as national and provincial policy Conduct sector specific scoping exercise on regulatory constraints Implementation and monitoring of compliance Conduct sector specific scoping exercise on regulatory constraints Implementation and monitoring of compliance Conduct sector specific scoping exercise on regulatory constraints Implementati on and monitoring of compliance

11. Strategic Objective 4: Encourage partnerships with other role players to ensure mutual cooperation 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 Mainstream ing of Youth enterprises through transversal agreement s Export Villages Signing of transversal agreements between dsbd and other state institutions Development of an Export Village Strategy and Implementation Plan 120 000 youth jobs created through the signed transversal agreements 9 Export Villages rolled- out across the country 0000 30 000 1 30 000 2 30 000 3 30 000 3

12. Strategic Objective 4: Encourage partnerships with other role players to ensure mutual cooperation 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 partnerships with the private sector Partnership Agreements withProvincial and Local Government 7000 new and growth oriented SMMEs that access the Fund 140 Municipalities partnering with dsbd Designing criteria for disbursing the funding and lobby the private sector to contribute to the fund 10 1000 25 1500 30 2000 35 2500 40

13. Strategic Objective 4: Encourage partnerships with other role players to ensure mutual cooperation 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 Identification and packaging of SMMEs 100 SMMEs packaged as micro franchisors 5 2025

14. 14 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

15. 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

16. 16 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

17. Programmes  Programme 1: Administration R552 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. 17

18. Programme  Programme 2: Customised Intervention Programmes R198 million  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 dept on supporting market access initiatiaves. 18

19. Programme  Programme 3: Co-operatives R157 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. 19

20. Programme  Programme 4: Research, Policy and Intergovernmental Relations R85 955 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. 20

21. Programme  Programme 5: Innovation, Intellectual Property and Indigenous Knowledge Systems and Incubation Technology R81 million  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. 21

22. Programmes  Programme 6: Enterprise Development and Entrepreneurship, R175 million  Programmes will be introduced to ensure increased access to employment and entrepreneurship for marginalised groups, focusing on skills development, franchising, technology transfer and incubation, aimed at advancing support for the emerging and smaller enterprises. 22

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

24. Thank you