DEPARTMENT OF SMALL BUSINESS DEVELOPMENT PRESENTATION ON THE APP FOR QUARTER 1 AND QUARTER 2 OF...

DEPARTMENT OF SMALL BUSINESS DEVELOPMENT

PRESENTATION ON THE APP FOR QUARTER 1 AND

QUARTER 2 OF 2014/15 FINANCIAL YEAR

Presentation Outline

• Purpose • Challenges• Programmes• Recommendations

Purpose

• To request the Portfolio Committee to note the first and second quarter performance of the department

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

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.

Informal Sector Programmes



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.

Seda Technology Programme


Output Performance Indicator/ Measure

Annual Targets for

2014/54

Q1Milestones

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

6 Nil N/A N/A N/A

Number of established incubators supported through stp

48 43 43 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.

Integrated SMMEs and Co-operative Development and Action Plan



Implement the Integrated SMMEs and Co-operative Development Framework and Action PlanA 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.

Seda Technology ProgrammeSG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth


Annual Targets for

2014/15

Q1Milestones

Actual Achievement

Reasons for variance

Corrective action


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

962 240 1576 The incubation model takes into account clients supported over an extended period. Therefore, clients recruited from previous

N/A

Implementation of Cooperatives Act as amended



Annual Targets for 2014/15

Q1Milestones

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 operationalisation 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

National Strategic Framework on Gender and Economic Empowerment




Q1Milestones


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 N/A

National Informal Business Upliftment Strategy




Q1Milestones


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 N/A

Youth Enterprise Development Strategy

SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growthOutput Performance

Indicator/ MeasureAnnual Targets

for 2014/15Q1Milestones


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

Milestones not achieved in the previous quarter

Milestone Status/Progress

Number of established incubators supported through stp: 43

Number of SMMEs created through STP 1 587

Number of SMMEs approved for assistance by SEDA 2 440

Job specification (CDA& Tribunal)with DPSA and DTI HR- finalised and approved

This activity has been deferred to the next financial year (2015/16)

Implementation of the Cooperative Act as amended

Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growthOutput Performance

IndicatorAnnual Targets for 2014/15

Quarterly Milestones Actual Achievement

Reasons for Variance

Corrective Action

Rating

Implementation 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 made Given 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 made Given 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

National Strategic Framework on Gender and Women Economic Empowerment


Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth

Output Performance Indicator


Quarterly Milestones

Actual Achievement


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 N/A 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 3rd quarter

National Informal Business Upliftment Strategy (NIBUS)




Actual Achievement Reasons 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 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 N/A

Youth Enterprise Development Strategy




Actual Achievement


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 N/A

SEDA Technology Programme Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growthOutput Performance



Actual Achievement


Corrective Action Rating

Implementation of the SEDA Technology Programme (stp)

Number of new incubators established through stp

6 Q1:Nil Nil N/A N/A

Q2:Nil

Number of established incubators supported through stp

48 Q1:43 43

Q2: 5 to add to the 43 baseline

Nil 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.

Number of SMME’s created through stp

301 Q1:75 83 Increase is due to the performance of the manufacturing incubators resulting from the recruitment plans conducted.

N/A

Q2:75

SEDA Technology Programme Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth




Actual Achievement


Corrective Action

Rating


Number of SMME’s approved for assistance by seda

962 Q1:240 1 576 Target exceeded N/A 4

Q2:240 2349 to date cumulative with quarter one.

Centres of EntrepreneurshipStrategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growthOutput Performance



Actual Achievement


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 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; Preliminary assessment report was already completed in Q1.

N/A 5

Integrated SMMEs and Cooperatives Development Framework

Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth



Quarterly Milestones Actual Achievement Reasons for Variance

Corrective Action

Rating

Implemented Integrated SMMEs and Co-operative Development Framework and Action Plan

Integrated SMMEs and Co-operative Development Framework and Action Plan

Implement Integrated SMMEs and Co-operative Development Framework 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

Available budget as at end of September 2014 and projected expenditure at year end (per economic classification)

Table 1: Enterprise Development

Economic ClassificationRevised 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 Employees R 39 499.00 R 17 872.00 R 21 627.00 R 35 744.00 R 3 755.00

Goods & Services R 6 692.00 R 2 686.00 R 4 006.00 R 5 372.00 R 1 320.00

Transfers R 856 047.00 R 460 573.00 R 395 474.00 R 856 047.00 R 0.00

Machinery &Equipment R 226.00 R 42.00 R 184.00 R 84.00 R 142.00

Household R 0.00 R 0.00 R 0.00 R 0.00

Total R 902 464.00 R 481 173.00 R 421 291.00 R 897 247.00 R 5 217.00

Expenditure until 30 September 2014

Chief directorates transferred to DSBD

Economic ClassificationRevised 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 Employees R 32 015.00 R 13 640.00 R 18 375.00 R 40 920.00 -R 8 905.00

Goods & Services R 9 847.00 R 4 253.00 R 5 594.00 R 12 759.00 -R 2 912.00

Transfers R 667 907.00 R 402 260.00 R 265 647.00 R 667 907.00 R 0.00

Machinery &Equipment R 226.00 R 64.00 R 162.00 R 192.00 R 34.00

Household R 0.00 R 0.00 R 0.00 R 0.00

Total R 709 995.00 R 420 217.00 R 289 778.00 R 721 778.00 -R 11 783.00

Recommendations

• The committee to note the performance for the past two quarters

DEPARTMENT OF SMALL BUSINESS DEVELOPMENT PRESENTATION ON THE APP FOR QUARTER 1 AND QUARTER 2 OF...

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