1. DEPARTMENT OF SMALL BUSINESS DEVELOPMENT PRESENTATION ON THE APP FOR QUARTER 1 AND QUARTER 2 OF 2014/15 FINANCIAL YEAR

2. QUARTER 1 OF 2014/15 FINANCIAL YEAR

3. Presentation Outline Purpose Challenges Programmes Recommendations

4. Purpose To request the Portfolio Committee to note the first and second quarter performance of the department

5. Challenges The programmes are still structured as per the dti’s strategic objectives and the report is therefore aligned to the dti’s strategic objectives Delays in the transfer of functions from the dti to Department of Small Business Development

6. CIS and BBSDP Incentives Short description of the project How it will be implemented Timeline Envisaged impact on economy SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth  Supported 92 projects under the Co-operative Incentive Scheme (CIS) incentive.  Supported 280 projects under the Black Business Supplier Development Programme (BBSDP) incentive.

7. Informal Sector Programmes Short description of the project How it will be implemented Timeline Envisaged impact on economy SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth  Action plan for the pilot roll-out of National Informal Business Upliftment Strategy (NIBUS) developed.  Project Charter for the roll-out of the Informal Traders Upliftment Project (ITUP) pilot developed and finalised.  30 pilot informal businesses from OR Tambo District in the Eastern Cape approved for support.  Guidelines for implementation of Shared Economic Infrastructure Facility (SEIF) approved by Minister.

8. Seda Technology Programme SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth OutputPerformance Indicator/ Measure Annual Targets for 2014/54 Q1 Milestones Actual Achievement Reasons for variance Corrective action BROADENING PARTICIPATION DIVISION (BDP) Implementation of the seda Technology Programme (stp) Number of new incubators established through stp 6Nil N/A Number of established incubators supported through stp 4843 Seda’s target for the current financial year is 5 incubators to add on the baseline of 43. the target is not achieved during this reporting period. The establishment of the 5 additional incubators as per the target will be fastracked.

9. Integrated SMMEs and Co-operative Development and Action Plan Short description of the project How it will be implemented Timeline Envisaged impact on economy SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Implement the Integrated SMMEs and Co-operative Development Framework and Action Plan  A Ministers and Members of Executive Council (MinMEC) Task Team has been established to deliver and report on the “Game Changers”.  A Micro Franchising Symposium was held in Vereeniging in May 2014 which was attended by small enterprises, university students, government officials and programme facilitators.  Four (4) small enterprises were selected and show cased as ready to be packaged as potential micro franchisors.

10. Seda Technology Programme SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth OutputPerformance Indicator/ Measure Annual Targets for 2014/15 Q1 Milestones Actual Achievement Reasons for variance Corrective action Implementation of the seda Technology Programme (stp) Number of SMME’s created through stp 301 75 83 This is due to the performance of the manufacturing incubators resulting from the recruitment plans conducted. N/A Number of SMME’s approved for assistance by seda 962240 1576 The incubation model takes into account clients supported over an extended period. Therefore, clients recruited from previous N/A

11. Implementation of Cooperatives Act as amended SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth OutputPerformance Indicator/ Measure Annual Targets for 2014/15 Q1 Milestones Actual Achievement Reasons for variance Corrective action Implementation of the Co- operative Act as amended Implementation report produced on the phased –in operationalisation of the Co-operative development agency (CDA and Co Operative Tribunal) Phased-in operationalisatio n of the CDA and Tribunal and implementation report produced Job specification (CDA & Tribunal) with DPSA and DTI HR – finalised and approved Job Specification for the CEO of the CDA approved by DPSA. Business plan for the staff complement for CDA and Tribunal finalized awaiting approval. Given the establishment of the Department of Small Business Development, this function has been deferred This will be deferred to next financial to align with the elements of the amended Act

12. National Strategic Framework on Gender and Economic Empowerment SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth OutputPerformance Indicator/ Measure Annual Targets for 2014/15 Q1 Milestones Actual Achievement Reasons for variance Corrective action Implemented the National Strategic Framework on Gender and Women Economic Empowerment Submit for approval the Draft National Strategic Framework on Gender and Women Economic Empowerment Finalise and re- submit the National Strategic Framework on Gender and Women empowerment to Cabinet for approval Report on consultations with key stakeholders Consultation with StatsSA has been considered N/A

13. National Informal Business Upliftment Strategy SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth OutputPerformance Indicator/ Measure Annual Targets for 2014/15 Q1 Milestones Actual Achievement Reasons for variance Corrective action Finalisation and implementation of the National Informal Business Upliftment Strategy (NIBUS) Reports produced on the pilot implementation of the NIBUS Pilot implementation of the NIBUS and a report produced Develop and finalise the action plan for pilot roll- out of NIBUS. Acton plan for the pilot roll- out of NIBUS has been developed and finalised N/A

14. Youth Enterprise Development Strategy SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth OutputPerformance Indicator/ Measure Annual Targets for 2014/15 Q1 Milestones Actual Achievement Reasons for variance Corrective action Finalisation and implementation of Youth Enterprise Development Strategy (YEDS) Implementation report on YEDS produced Pilot implementation of the YEDS and a report produced Finalise the business case, for the Mass Youth Enterprise Creation Programme (MYECP) Finalise implementation plan 15/16 Done-Draft business case developed Done-Draft implementation plan and budget done for 2015/16 N/A

15. QUARTER 2 OF 2014/15 FINANCIAL YEAR

16. Milestones not achieved in the previous quarter MilestoneStatus/Progress Number of established incubators supported through stp:43 Number of SMMEs created through STP 1 587 Number of SMMEs approved for assistance by SEDA2 440 Job specification (CDA& Tribunal)with DPSA and DTI HR- finalised and approved This activity has been deferred to the next financial year (2015/16)

17. Implementation of the Cooperative Act as amended Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth OutputPerformance Indicator Annual Targets for 2014/15 Quarterly MilestonesActual Achievement Reasons for Variance Corrective Action Rating Implementatio n of the Cooperative Act as amended Implementation report produced on the phased-in operationalisation of the Co- operative Development Agency (CDA) and Co-operative Tribunal Phased-in operationalisation of the CDA and Tribunal and implementation report produced Q2:Technical support and assistance to ODG with recruitment of Tribunal Chairperson and CDA Head No progress madeGiven the establishment of the Department of Small Business Development, this function has been deferred. Deferred to the next financial year to align with the elements of the amended Act Q2: The activity is deferred to the next financial year as it relates to the issue of the proclamation of the Act No progress madeGiven the establishment of the Department of Small Business Development, this function has been deferred It will be deferred to the next financial year since further consultations need to happen

18. National Strategic Framework on Gender and Women Economic Empowerment Short description of the project How it will be implemented Timeline Envisaged impact on economy Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth OutputPerformance Indicator Annual Targets for 2014/15 Quarterly Milestones Actual Achievement Reasons for Variance Corrective Action Rating Implemented the National Strategic Framework on Gender and Women Economic Empowerment Submit for approval the Draft National Strategic Framework on Gender and Women Economic Empowerment Finalise and re- submit the National Strategic Framework on Gender and Women empowerment to Cabinet for approval Q1: Report on consultations with key stakeholders Consultation with StatsSA has been done N/A Q2: Conduct research on Economic and Employment Cluster recommendations Research work not conducted in the period under review Internal discussion underway to refine the approach and priority areas going forward To commence with the research in 3 rd quarter

19. National Informal Business Upliftment Strategy (NIBUS) Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth OutputPerformance Indicator Annual Targets for 2014/15 Quarterly Milestones Actual AchievementReasons for Variance Corrective Action Rating Finalisation and implementation of the National Informal Business Upliftment Strategy (NIBUS) Reports produced on the pilot implementation of the NIBUS Pilot implementation of the NIBUS and a report produced Q1:Develop and Finalise the action plan for pilot roll-out of NIBUS. Action plan for the pilot roll- out of NIBUS has been developed and finalised N/A Q2: Partnership agreements with relevant stakeholders drafted and finalised 1.A chamber support agreement has been signed with SEDA. This will support the leadership and members of chambers 2.Partnership guidelines for infrastructure support have been signed off by the Minister Dr. Rob Davies. This will be a partnership for funding between the dti and a municipality (or agencies) 3.A draft Implementation agreement between the dti, DHET and GIZ on the basic Entrepreneurial Skills Development Program has been developed and await signature 4.ITUP – regional offices of the W&RSETA have agreed to host the provincial coordinators of the project N/A

20. Youth Enterprise Development Strategy Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth OutputPerformance Indicator Annual Targets for 2014/15 Quarterly Milestones Actual Achievemen t Reasons for Variance Corrective Action Rating Finalisation and implementation of Youth Enterprise Development Strategy (YEDS) Implementation report on YEDS produced Pilot implementation of the YEDS and report produced Q2:Present the MYECP Pilot business case to EXCO for approval MYECP pilot approved by DBSD EXCO on 9 September 2014 N/A

21. SEDA Technology Programme Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth OutputPerformance Indicator Annual Targets for 2014/15 Quarterly Milestones Actual Achievement Reasons for Variance Corrective ActionRating Implementation of the SEDA Technology Programme (stp) Number of new incubators established through stp 6Q1:NilNilN/A Q2:Nil Number of established incubators supported through stp 48Q1:4343 Q2: 5 to add to the 43 baseline NilSeda’s target for the current financial year is 5 incubators to add on the baseline of 43. The target is not achieved during this reporting period The establishment of the 5 additional incubators as per the target will be fastracked. Number of SMME’s created through stp 301Q1:7583Increase is due to the performance of the manufacturing incubators resulting from the recruitment plans conducted. N/A Q2:75

22. SEDA Technology Programme Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth OutputPerformance Indicator Annual Targets for 2014/15 Quarterly Milestones Actual Achievement Reasons for Variance Corrective Action Rating Implementation of the seda Technology Programme (stp) Number of SMME’s approved for assistance by seda 962Q1:2401 576 Target exceeded N/A4 Q2:2402349 to date cumulative with quarter one.

23. Centres of Entrepreneurship Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth OutputPerformance Indicator Annual Targets for 2014/15 Quarterly Milestones Actual Achievement Reasons for Variance Corrective Action Rating Supported the establishment and functioning of centres of Entrepreneurship Number of MOAs to establish centres of entrepreneurship Two (2) MOAs for approval to establish centres of entrepreneurship Q1: Conduct assessment process in targeted hosting institutions Assessment questionnaires administered in 7 institutions. Feasibility workshops conducted in 4 (2 in KZN; 1 in Northern Cape; 1 in Rustenburg). Preliminary assessment report completed. N/A 4 Q2: Assessment report completed Assessment report was completed; Five (5) business plans were evaluated. Based on quality of business plans, recommendations were made for two hosting institutions, Orbit College and EThekwini College Exceeded target; Preliminar y assessme nt report was already completed in Q1. N/A5

24. Integrated SMMEs and Cooperatives Development Framework Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth OutputPerforman ce Indicator Annual Targets for 2014/15 Quarterly MilestonesActual AchievementReasons for Variance Corrective Action Rating Implemen ted Integrated SMMEs and Co- operative Developm ent Framewor k and Action Plan Integrated SMMEs and Co- operative Developme nt Framework and Action Plan Implemen t Integrated SMMEs and Co- operative Developm ent Framewor k and Action Plan and report produced Q1: Implement Integrated SMMEs and Co-operative Development Framework and Action Plan and Quarterly report produced A task team has been established to report on the action plan on a quarterly basis. The first meeting was held in May 2014 to discuss the purpose of the committee, draft ToR as well as develop and agree on a reporting method. The ToR has been approved. The reporting structures were not formalised to streamline the planning and reporting on the SMME & Co-operative Development Framework and Action Plan. The task team has been consulted and ToR have been approved. 2.5 Q2: Implement Integrated SMMEs and Co-operative Development Framework and Action Plan and Quarterly report produced The quarter 2 meeting was held with Provincial Departments of Economic Development and National Agencies on 19 August 2014. Information was provided regarding the establishment of the Department of Small Business Development and the functions associated with the new Department. Comprehensive presentations on all functions were concluded in order to assist provinces in the development of their 2015/16 APPs N/A

25. Available budget as at end of September 2014 and projected expenditure at year end (per economic classification) Table 1: Enterprise Development Economic Classification Revised Budget R'000 Total expenditure R'000 Available budget R'000 Projected expenditure at year-end R'000 Under/(Over) expenditure at year-end R'000 Compensation of EmployeesR 39 499.00R 17 872.00R 21 627.00R 35 744.00R 3 755.00 Goods & ServicesR 6 692.00R 2 686.00R 4 006.00R 5 372.00R 1 320.00 TransfersR 856 047.00R 460 573.00R 395 474.00R 856 047.00R 0.00 Machinery &EquipmentR 226.00R 42.00R 184.00R 84.00R 142.00 HouseholdR 0.00 TotalR 902 464.00R 481 173.00R 421 291.00R 897 247.00R 5 217.00

26. Expenditure until 30 September 2014 Chief directorates transferred to DSBD Economic Classification Revised Budget R'000 Total expenditure R'000 Available budget R'000 Projected expenditure at year- end R'000 Under/(Over) expenditure at year-end R'000 Compensation of EmployeesR 32 015.00R 13 640.00R 18 375.00R 40 920.00-R 8 905.00 Goods & ServicesR 9 847.00R 4 253.00R 5 594.00R 12 759.00-R 2 912.00 TransfersR 667 907.00R 402 260.00R 265 647.00R 667 907.00R 0.00 Machinery &EquipmentR 226.00R 64.00R 162.00R 192.00R 34.00 HouseholdR 0.00 TotalR 709 995.00R 420 217.00R 289 778.00R 721 778.00-R 11 783.00

27. Recommendations The committee to note the performance for the past two quarters