DEPARTMENT OF SMALL BUSINESS DEVELOPMENT PRESENTATION ON THE APP FOR QUARTER 3 AND QUARTER 4 OF 2014/15 FINANCIAL YEAR

QUARTER 3 OF 2014/15 FINANCIAL YEAR

Presentation Outline Purpose Challenges Programmes Recommendations

Purpose To request the Portfolio Committee to note the third and fourth 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, going forward we will be aligned to the new mandate Delays in the transfer of functions from the dti to Department of Small Business Development In certain instances functions were transferred without funds. Budget was centrally controlled with Intra-transfer of funds within the dti and this had a bearing on the expenditure patterns and allocation. Own Budget only given this year Other functions were dependent on the dti capacity which is centralised through particular business units e.g. research, procurement, etc The transitional process affected delivery 60% of the targets were met

Seda Technology Programme SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Output Performance Indicator/ Measure Annual Targets for 2014/54 Q3 Milestones Actual Output Reasons for variance Corrective action BROADENING PARTICIPATION DIVISION (BDP) Implementation of the seda Technology Programme (stp) Number of jobs created through stp 1650 412 749 Better than expected performance in the construction, Manufacturing and agricultural sectors N/A Number of established incubators supported through stp 48 (inclusive of 6 newly established) Support 2 new incubators Two new incubators established and supported

Seda Technology Programme SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Output Performance Indicator/ Measure Annual Targets for 2014/15 Q3 Target Actual Output Reasons for variance Corrective action Implementation of the seda Technology Programme (stp) Number of clients assisted through technology transfer programme 63 15 10 Incomplete information which delayed approval Pre-business support

Implementation of Cooperatives Act as amended SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Output Performance Indicator/ Measure Annual Targets for 2014/15 Q3 Milestones Actual Achievement Reasons for variance Corrective action Implementation of the Co- operative Act as amended Implementation report produced on the phased –in operationalization of the Co-operative development agency (CDA and Co Operative Tribunal) Phased-in operationalizatio n of the CDA and Tribunal and implementation report produced 2014/15 Business Plan for the CDA & Tribunal Development Target not met. Due to no budget allocation, as a result of initial financial planning stages since the Department was proclaimed, implementation of the output was postponed to the 2015/16 financial year. The Cooperatives Business Unit will await the allocation of sufficient budget to this output during the mid- term expenditure adjustments estimates during Q2 2015/16.

National Strategic Framework on Gender and Economic Empowerment SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Output Performance Indicator/ Measure Annual Targets for 2014/15 Q3 Target Actual Output 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 Produce report on research conducted   Target partially met The National Strategic Framework on Gender and Economic Empowerment was suspended but the Unit produced a preliminary report on consultations The next stage is for the Women, Youth and People with Disabilities’ Business Unit to engage with the Executive Authority on the various scenarios to be considered for the development of the Women Enterprise Framework, and to align the Framework with the DSBD’s mandate.

National Informal Business Upliftment Strategy SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Output Performance Indicator/ Measure Annual Targets for 2014/15 Q3 Target 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 Phase-in implementation of the action plan. 1. Benchmarking lessons from KZN have been captured and packaged ready for piloting NIBUS roll-out in the Eastern Cape and Gauteng. 2. ITUP workshops for selection of pilot participants have been completed in consultation with Provincial and Municipal partners as well as other relevant stakeholders in targeted locations. 3. Increased interactions with Provincial and Municipal officials on specific SEIF projects in the targeted pilot areas. Actual business plans and proposals being developed around guidelines N/A

Youth Enterprise Development Strategy SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Output Performance Indicator/ Measure Annual Targets for 2014/15 Q3 Target 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 To present the Mass Youth Enterprise Creation Programme (MYECP) Pilot to the Executive Board and the Minister of the dti for approval The MYECP was migrated to the Department of Small Business Development. And due to the new planning process in the DSBD, the MYECP concept was yet to be presents to the EXBO and the Minister of DSBD for approval The MYECP was migrated with the Youth Directorate to the DSBD, hence presentation of the dti BPD EXBO for approval was not feasible as the programme and Youth Directorate now resided with the DSBD. Furthermore, the DBSD has not yet constituted an Executive Board at this stage. The MYECP will be presented to the DSBD EXCO for Approval in Q4. The MYECP will be submitted to the Minister of the DSBD for approval via a submission in Q4 after the DSBD EXCO has approved it.

Integrated SMMEs and Cooperatives Development Framework Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth Output Performan ce Indicator Annual Targets for 2014/15 Quarterly Output Actual Output 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 Implement Integrated SMMEs and Co-operative Development Framework and Action Plan and Quarterly report produced The Ministers and MECs (MinMEC) task team meeting was held on 03 December 2014 to align national Annual Performance Plans of the economic cluster with provincial departments of economic development. A quarterly report was produced on the integrated SMMEs and Cooperatives Development Framework and Action Plan The output is progressing as planned. There are efforts to align the national Annual Performance Plans of the economic cluster with provincial departments of economic development

QUARTER 4 OF 2014/15 FINANCIAL YEAR

Implementation of Cooperatives Act as amended SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Output Performance Indicator/ Measure Annual Targets for 2014/15 Q4 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 operationalizatio n of the CDA and Tribunal and implementation report produced Business Plan Approved Target not met. Due to no budget allocation, as a result of initial financial planning stages since the Department was proclaimed, implementation of the output was postponed to the 2015/16 financial year. The Cooperatives Business Unit will await the allocation of sufficient budget to this output during the mid- term expenditure adjustments estimates during Q2 2015/16.

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 Annual Targets for 2014/15 4th Quarter Target 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 Q4: National Strategic Framework on Gender and Women Economic Empowerment finalised and submitted to Cabinet Target not met Research report not produced due to incapacity in the department The department has decided to change focus from framework to strategy Short description of the project How it will be implemented Timeline Envisaged impact on economy

National Informal Business Upliftment Strategy (NIBUS) Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth Output Performance Indicator Annual Targets for 2014/15 4th Quarter Target 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 Phased in implementation of the action plan and report produced. Preliminary pilot report on Informal Traders Upliftment Programme (ITUP) was produced and tabled at the Project Steering Committee. The implementa tion of the National Informal Business Upliftment Strategy (NIBUS) is progressin g as planned. N/A

Youth Enterprise Development Strategy Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth Output Performance Indicator Annual Targets for 2014/15 Quarterly Target Actual Output 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 Enter into agreement with National Rural Youth Service Corps (NARYSEC) for rolling the pilot Mass Youth Enterprise Creation Programme (MYECP) The MYECP was presented to the DSBD EXCO for Approval on 19 February 2015. The MYECP submission to the Minister of the DSBD for approval The MYECP was migrated with the Youth Directorate to the Department of Small business Development, hence approval was required from the EXCO and Minister of the DSBD N/A

Seda Technology Programme SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Output Performance Indicator/ Measure Annual Targets for 2014/54 Q4 Target Actual Output Reasons for variance Corrective action BROADENING PARTICIPATION DIVISION (BDP) Implementation of the seda Technology Programme (stp) Number of jobs created through stp 1650 414 465 N/A Number of established incubators supported through stp 48 (inclusive of 6 new) Support 4 new incubators To date the stp supported 48 established incubators, and 6 new incubators Target achieved within the financial period

Seda Technology Programme SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Output Performance Indicator/ Measure Annual Targets for 2014/15 Q4 Target Actual Output Reasons for variance Corrective action Implementation of the seda Technology Programme (stp) Number of clients assisted through technology transfer programme 63 16 13 Incomplete information which delayed approval Motivation for an increase in budget allocation in the next financial period.

Centres of Entrepreneurship Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth Output Performance Indicator Annual Targets for 2014/15 4th Quarterly Output Actual Output 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 Approved business plans and two (2) draft MOAs Two additional Centres for Entrepreneurship have been established and launched in March 2015 N/A

Integrated SMMEs and Cooperatives Development Framework Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth Output Performan ce Indicator Annual Targets for 2014/15 Quarterly 4 Output Actual Output 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 Implement Integrated SMMEs and Co-operative Development Framework and Action Plan and Quarterly report produced The task team meeting was held on the 12th March 2015. Provinces presented their three (3) most high impact projects as part of aligning the national Annual Performance Plans of the economic cluster with provincial departments of economic development. A quarterly report was produced on the integrated SMMEs and Cooperatives Development Framework and Action Plan The output is progressing as planned. There are efforts to align the national Annual Performance Plans of the economic cluster with provincial departments of economic development

CIS and BBSDP Incentives SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Supported 207 projects under the Co-operative Incentive Scheme (CIS) incentive to the tune of R65 million. Supported 783 projects under the Black Business Supplier Development Programme (BBSDP) incentive to the tune of R288 million. Short description of the project How it will be implemented Timeline Envisaged impact on economy

Budget Directorate Budget Expenditure Variance   DSBD 2014/15 additional allocation 33 700 24 116 9 584 Co-operatives development 10 287 10 179 108 Creative Industries 4 075 3 566 509 Export development 14 473 13 614 859 Small Enterprises 12 556 11 905 651 Skills for Economy 9 773 8 535 1 238 Gender Unit 12 622 10 878 1 744 Youth Development Initiative 3 737 2 713 1 024 BBSDP 12 598 12 738 -140 CIS 8 271 8 606 -335 TOTAL excluding TP 122 092 106 849 15 243 288 342 288 336 6 65 000 64 966 34 SEDA Technology programme 126 368 SEDA Agency 502 282 SAWEN 16 320 Transfer payments 998 312 998 272 40 TOTAL 1 120 404 1 105 120 15 284

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