Department of Small Business Development

Department of Small Business Development
2017/18 ANNUAL PERFORMANCE PLAN PORTFOLIO COMMITTEE 03 MAY 2017

Presentation outline Context For Small Business Development Portfolio
Policy Mandates Strategic Posture (Aims, Vision, Mission & Values) Alignment to National Policy Roles/Functions of Portfolio Programme Structure 2017/18 App Targets Budget Structure Development Way Forward Conclusion

Context for establishing SBD Portfolio
The first draft 2017/18 APP was submitted during August 2016. During November 2016 DPME and National Treasury proposed a change to the DSBD strategic approach to its Mandate. The change to the DSBD strategic approach to its mandate impacted the recommended new structure. The new 2017/18 APP was approved by DPME. The new approach to the Mandate required a structure focussing on coordination so as to lead the growth and sustainably of SMMEs and Cooperatives in the country which is a fundamental shift away from implementation (catered for in the proposed new structure). As structure follows strategy, the proposed structure was reviewed. In order to establish stability, a proposal was adopted to firstly have an approved structure that employees can be placed against.

Context for establishing SBD Portfolio
8. DPME and NT recommended that : The Department must strengthen its public entity oversight role to address issues of duplication of functions especially regarding the implementation of similar programme The department should consider reviewing its Budget Programme Structure to reflect its core functions which are: coordination and oversight of sector performance. The department must revise its 2017/18 APP to reflect its contribution and that of its entities towards the priorities of the economic sector as reflected in the Medium Term Strategic Framework and the National Development Plan.

Policy Mandates of the SBD Portfolio
Constitutional and Legislative Mandates outlined. Specifically, the NDP sets specific goals for the small business sector, specifically: To enhance economic growth through SMMEs as assessed through an increased contribution by the sector to GDP; To create 90% of South Africa’s 11 million needed jobs by 2030 through the SMME sector, and so contribute to reducing the unemployment rate to 6%; and To reduce the cost of regulatory compliance and promote ease of doing business for SMMEs; and ensure policy coherence through partnerships among key societal players, business and government. Carried forward by MTSF: Outcome 4: Decent Employment through Inclusive Economic Growth: 4.2.2: Measure and reduce delays and unnecessary red tape around authorisations and related issues that hinder or might foster investment and employment (in the SMME and Co-ops space). 4.3.1: Township and rural economies supported and report on the impact in terms of the number of business supported, value of the grant approved and geographic location of the supported businesses.

Policy mandates of the sbd portfolio
4.3.3: Programmes to ensure increased access to employment and entrepreneurship for black women and youth in the context of stronger support for emerging and smaller enterprises overall. 4.3.4: Provide coaching, incubation, intensive support and financing to sustain existing small businesses and co-operatives, as well as expand the sector. MTSF Outcome 7: Vibrant, equitable, sustainable rural communities: 7.6.1: Promote sustainable rural enterprises and industries in areas with economic development potential. It is noted that the Portfolio supports various other MTSF outcomes indirectly or in a secondary capacity, which work will continue. However this does not impact directly on the mandate or strategic posture of the Portfolio.

Snapshot – smme & cooperatives portfolio strategic posture (our collective impact)
AIMS OF THE PORTFOLIO (Collective): (Our aspiration – the desired result of our combined efforts) Arising from the legislative and policy mandates informing the focus and work of the SBD Portfolio, the Portfolio defines its collective aim as: A radically transformed economy through effective development and increased participation of SMMEs and Co-operatives in the mainstream economy. In support of this collective aim, the DSBD describes its aim/ purpose as: To lead and coordinate an integrated approach to the promotion and development of entrepreneurship, small businesses and co-operatives, and ensure an enabling legislative and policy environment to support their growth and sustainability.

VISION OF THE PORTFOLIO (Collective): (Our aspiration – the desired result of our combined efforts) A vibrant culture of entrepreneurship and enterprise growth, where small businesses and co-operatives act as drivers of job creation and inclusive economic benefit. In supporting this collective vision, the institutions individually aspire for (as reflected in their respective Strategic Plans): DSBD: A radically transformed economy through integrated and effective enterprise development and entrepreneurship promotion. = A vibrant culture of entrepreneurship and enterprise growth, where small businesses and co- operatives act as drivers of job creation and inclusive economic benefit. + SEDA: To be the centre of excellence for small enterprise development in South Africa. SEFA: Best of class financial solutions that support sustainable Small, Medium and Micro Enterprises and Co-operative Enterprises.

MISSION OF THE PORTFOLIO (Collective): Working together to enable, develop and accelerate entrepreneurship and the growth of sustainable and competitive small businesses and co-operatives. Individually, the SBD institutions contribute towards this collective mission as follows (as reflected in their respective Strategic Plans):

Values of the dsbd Shared Value
What it means in practice / Behavioural Indicators Innovation Living this value means that we will seek to: Display a commitment to being “radical” in what we do; Foster innovative ideas and solutions in order to deliver exceptional results; and Continuously seek new and better ways to serve our clients. Integrity Consistently honour our commitments; Uphold ethical, honest behaviour; Ensure open and transparent communication; and Behave with integrity in all our actions, always acting in the best interest of the organisation. Professionalism Serve with utmost respect, competence and professional mannerism; Display punctuality, reliability, dependability and a commitment to meet deadlines; and Cooperate with all role players. Customer Centric Place customer service excellence at the centre of everything we do; Create a nurturing environment by partnering with our clients and employees, and in the way in which we care and support them; Always be available and accessible in providing public services to our society; and Understand customer needs and respond timeously, efficiently and effectively to customer queries and requests. Commitment Do what is needed to get the work done; Be selfless, resolute, purposeful and steadfast; and Be committed to efforts of job creation, alleviating poverty and reducing inequality; and Display a solution-driven attitude, and commitment to serve.

ROLE OF ENTITIES (SEDA, SEFA)
High level view – roles and functions of the portfolio ROLE OF DSBD ROLE OF ENTITIES (SEDA, SEFA) COORDINATION, DIRECTION and LEADERSHIP to the small business and co-operatives sector broadly and across all 3 spheres of government OVERSIGHT and GOVERNANCE of entities IMPLEMENT DELEGATED MANDATE from DSBD Develop and roll out IMPLEMENTATION LEVEL POLICY and STANDARDS RESEARCH, MONITORING and EVALUATION of the impact of investments made in small business development and its contribution to economic growth and job creation, so as to inform evidence based decision making DEVELOP and IMPLEMENT SECTOR WIDE DATABASES and M&E TOOLS PROGRAMME LEVEL RESEARCH that informs TARGETED PROGRAMME DESIGN and PACKAGING that supports a holistic sector view MONITORING and EVALUATION AT PROGRAMME IMPLEMENTATION LEVEL – to inform refinements to programmes PLAN, COORDINATE and MOBILISE RESOURCES for the implementation and delivery of small business and co- operatives development projects, programmes and services IMPLEMENTATION of well conceptualised and targeted programmes, aligned to overall sector policy stance and sectoral indicators Strengthen ACCOUNTABILITY, PARTNERSHIPS and COMMUNICATION with sector stakeholders, communities and key role players in the sector, both nationally and internationally Ensure COORDINATED REGIONAL/ PROVINCIAL PRESENCE TO SUPPORT IMPLEMENTATION PARTNERSHIPS and COMMUNICATION in support of delivery mandate

ALIGNMENT TO NATIONAL POLICY
PORTFOLIO STRATEGIC GOAL NATIONAL POLICY ALIGNMENT DSBD STRATEGIC OBJECTIVE 1. Policy and planning coherence in the sector, that promotes an enabling ecosystem for SMMEs and co- operatives. NDP and MTSF Sub-Outcomes: 4.3.2: Measure and reduce delays and unnecessary SMMEs and Cooperatives red tape around authorisations needed for provincial investments. 7.6.1: Promote sustainable rural enterprises and industries in areas with economic development potential. 1.1 Reduced regulatory burdens and a conducive legislative and policy environment for SMME’s and Co-operatives. 1.2 An integrated approach to planning, monitoring and evaluation of the SMMEs and co-operatives sector, to inform policy decision-making. 1.3 A comprehensive research agenda on key areas of support for SMME’s and Co-operatives implemented. 1.4 Strengthened efforts to place SMME’s at the centre of the economic diplomacy agenda. 2. Equitable access to responsive and targeted products and services that enables the growth and development of SMMEs and co-operatives. 4.5.2: Township and rural economies supported and report on the impact in terms of the number of business supported, value of the grant approved and geographic location of the supported businesses. 4.8.1: Programmes to ensure increased access to employment and entrepreneurship for black women and youth in the context of stronger support for emerging and smaller enterprises overall. 4.8.2: Provide coaching, incubation, intensive support and financing to sustain existing small businesses and co- operatives, as well as expand the sector. 2.1 Oversight and coordination of the design and implementation of targeted financial support programmes to support new and existing SMMEs and co-operatives. 2.2 Oversight and coordination of the design and implementation of targeted non-financial support programmes to support new and existing SMMEs and co-operatives. 2.3 Equitable and accessible SMME and co-operatives support services nationwide.

ALIGNMENT TO NATIONAL POLICY
PORTFOLIO STRATEGIC GOAL NATIONAL POLICY ALIGNMENT DSBD STRATEGIC OBJECTIVE 3. An enhanced contribution to socio- economic development outcomes by the sector. NDP and MTSF Sub-Outcomes: Outcome 4: Decent employment through inclusive growth. Outcome 7: Vibrant, equitable, sustainable rural communities contributing towards food security for all. 4.5.2: Township and rural economies supported and report on the impact in terms of the number of business supported, value of the grant approved and geographic location of the supported businesses. 4.8.1: Programmes to ensure increased access to employment and entrepreneurship for black women and youth in the context of stronger support for emerging and smaller enterprises overall. 3.1 Demonstrated progress towards sector-wide SMMEs and co-operatives support achieving its intended socio-economic impact, 3.2 Sustainable partnerships to support the SMME and co-operatives development agenda. 3.3 Informed and empowered communities and a responsive department. 4. Sound governance and the optimal utilisation of available resources. Secondary to Outcome 12: An efficient, effective and development-oriented public service. 4.1 Compliance and good governance ensured. 4.2 Sound institutional governance and oversight of the Small Business Development Portfolio. 4.3 Efficient, integrated and streamlined business processes and systems 5. A professional and capacitated SBD Sector. Secondary to Outcome 5: A skilled and capable workforce to support an inclusive growth path. 5.1 Coordinated development of the skills pool across the sector. 5.2 Strengthened human resource capability and a high performing organisation

The Current Programme Structure
For the 2017/18 APP, the existing Programme and Sub-programme structure is retained, but will be reviewed to better align to the revised strategic posture of the DSBD during 2017/18, and to fully inform the 2018/19 APP. The NT/ DPME recommend a major focus for Programme 3 on Agency Oversight, Monitoring and Evaluation and on supporting IGR and Provinces and Municipalities with implementation. The APP data below reflects this new focus.

Programme (R’000) Audited Outcome Main Appropriation MTEF 2013/14
THE BUDGET SUMMARY Programme (R’000) Audited Outcome Main Appropriation MTEF 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Programme 1 13,452 22,376 66,447 113,956 127,614 128,799 137,242 Programme 2 13,527 11,707 11,692 25,835 21,999 24,285 25,710 Programme 3 1,025,399 1,091,453 1,020,752 1,178,648 1,300,183 1,376,790 1,455,315 Total 1,052,378 1,125,536 1,098,891 1,318,439 1,449,796 1,529,874 1,618,267

Programme Structure PROGRAMME SUB-PROGRAMMES 1. ADMINISTRATION
1.1 Ministry 1.2 Departmental Management 1.3 Corporate Services 1.4 Financial Management 1.5 Communications 2. SMMEs & CO-OPERATIVES: POLICY AND RESEARCH 2.1 Policy and Research 2.2 Monitoring and Evaluation 2.3 International Relations 3. SMMEs & CO-OPERATIVES: PROGRAMME DESIGN AND SUPPORT 3.1 Competitiveness Support 3.2 Enterprise Development 3.3 Market Development and Stakeholder Relations 3.4 Cooperative Development 3.5 SMME Development Finance

QUARTERLY TARGETS: Programme 1
No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 3: An enhanced contribution to socio-economic development outcomes by the sector Strategic Objective 3.3: Informed and empowered communities and a responsive department. 1 New Indicator Approved Annual Communications Framework implemented Annual Communications Framework approved in Q4 for the following year Quarterly report on implementation of the Communications Framework developed within 30 days of end of each quarter Quarterly report on progress in implementation of the Annual Communications Framework produced within 30 days of end of the quarter Quarterly report on progress in implementation of the Annual Communications Framework produced within 30 days of end of the quarter Annual Communications Framework produced for the following year Quarterly report on progress in implementation of the Annual Communications Framework produced within 30 days of end of the quarter 2 Number of facilitated interactions that deliver meaningful engagements with communities and the public 55 facilitated interactions that deliver meaningful engagements with communities and the public 10 facilitated interactions that deliver meaningful engagements with communities and the public 15 facilitated interactions that deliver meaningful engagements with communities and the public 15 facilitated interactions that deliver meaningful engagements with communities and the public

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 3: An enhanced contribution to socio-economic development outcomes by the sector. Strategic Objective 3.3: Informed and empowered communities and a responsive department. 3 12 best practices in SMME development identified and profiled Number of best practices identified and profiled 12 best practices in SMME development identified and profiled - 4 best practices in SMME development identified and profiled 4 best practices in SMME development identified and profiled Strategic Goal 4: Sound governance and the optimal utilisation of available resources. Strategic Objective 4.1: Compliance and good governance ensured. 4 DSBD average MPAT score of 2.5 % compliance with MPAT standards at target level 80% (30 of 37 standards) compliance with MPAT standards at level 3 Annual MPAT self-assessment completed and submitted to DPME within prescribed timeframes Achieve 80% (30 of 37 standards) compliance with MPAT standards at level 3 MPAT improvement actions identified 5 Unqualified audit outcome for both financial and non-financial performance data for 2015/16 Unqualified external audit opinion for both financial and non-financial performance data maintained Unqualified audit outcome for both financial and non- financial performance data for 2016/17 Unqualified audit outcome for both financial and non-financial performance data for 2016/17

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 4: Sound governance and the optimal utilisation of available resources Strategic Objective 4.1: Compliance and good governance ensured. 6 % expenditure on annual budget <5% expenditure on annual budget <5% expenditure on annual budget 7 % payments to eligible creditors processed within 30 Days 100% payments to eligible creditors processed within 30 Days 100% payments to eligible creditors processed within 30 Days 100% payments to eligible creditors processed within 30 Days Strategic Objective 4.3: Efficient, integrated and streamlined business processes and systems. 8 Revised DSBD ICT Plan approved by EXCO Number of ICT system projects defined in the DSBD ICT Plan implemented 1 ICT system project defined in the DSBD ICT Plan implemented Approved systems specification and roadmap defined Service provider appointed for system development Development and Testing completed Implementation of 1 Key ICT system project completed

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 5: A professional and capacitated SBD Sector. Strategic Objective 5.2: Strengthened human resource capability and a high performing organisation. 9 Percentage of female SMS Percentage of female SMS 50% of female SMS 50% of female SMS 10 Percentage of PWD employed Percentage of PWD employed 2% PWD employed 2% PWD employed 11 % Vacancy Rate in funded posts % Vacancy Rate in funded posts <10% Vacancy Rate in funded posts <10% Vacancy Rate in funded posts 12 New Indicator Improvement in Employee Satisfaction Index rating Employee Satisfaction Survey conducted Improvement Plan developed Approved TOR advertised and evaluated Service Provider appointed and Project Kick-off Conduct the survey & report/feedback on the outcome Improvement Plan developed and approved for implementation

Adjusted appropriation Medium-term expenditure estimate
BUDGET: Programme 1 Programme 1: Administration (R’000) Audited outcome Adjusted appropriation Medium-term expenditure estimate 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Ministry 13,452 22,376 29,898 24,993 30,802 26,802 28,622 Departmental Management - 15,232 18,660 21,018 19,333 20,680 Corporate Services 1,317 42,807 49,956 52,948 56,204 Financial Management 15,514 18,780 17,877 19,123 Communications 11,982 7,058 11,839 12,613 Total 66,447 113,956 127,614 128,799 137,242 Economic classification Current payments 12,539 21,264 63,479 109,956 125,060 126,215 134,519 Compensation of employees 3,837 11,407 34,591 57,765 70,115 68,617 73,834 Goods and services 8,702 9,857 28,888 52,191 54,945 57,598 60,685 Payments for capital assets 913 1,112 2,968 4,000 2,554 2,584 2,723 Transport equipment 856 1 080 Other machinery and equipment 57 32 2,951 Software and other intangible assets 17

1.2 Departmental Management 1.3 Corporate Services
Programme Structure PROGRAMME SUB-PROGRAMMES 1. ADMINISTRATION 1.1 Ministry 1.2 Departmental Management 1.3 Corporate Services 1.4 Financial Management 1.5 Communications 2. SMMEs & CO-OPERATIVES: POLICY AND RESEARCH 2.1 Policy and Research 2.2 Monitoring and Evaluation 2.3 International Relations 3. SMMEs & CO-OPERATIVES: PROGRAMME DESIGN AND SUPPORT 3.1 Competitiveness Support 3.2 Enterprise Development 3.3 Market Development and Stakeholder Relations 3.4 Cooperative Development 3.5 SMME Development Finance

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 1: Policy and planning coherence in the sector, that promotes an enabling ecosystem for SMMEs and co-operatives Strategic Objective 1.1: Reduced regulatory burdens and a conducive legislative and policy environment for SMME’s and Co-operatives 13 N/A Number of municipalities assisted to roll out SMMEs and Cooperatives Red- Tape Reduction Programme per year 8 municipalities assisted to roll out SMMEs and Cooperatives Red- Tape Reduction Programme Agreed schedule for the SMMEs and Co-ops Red Tape Reduction roll out for /18 SMMEs and Co- ops Red-Tape Reduction Programme workshops held in 3 municipalities SMMEs and Co-ops Red- Tape Reduction Programme workshops held in 3 municipalities SMMEs and Co-ops Red-Tape Reduction Programme workshops held in 2 municipalities 14 New Indicator Number of Municipal Action Plans on SMMEs and Co-ops red tape reduction assessed 2 Municipal Action Plans on SMMEs and Co-ops red tape reduction assessed Identify municipalities for assessment First draft report on assessments Progress report on assessments 2 Municipal Action Plans on SMMEs and Co-ops red tape reduction assessed - with findings and recommendations 15 1 Research Report on National legislative and regulatory protocols impeding SMMEs and Co-ops produced Number of research reports on legislative and regulatory protocols impeding SMMEs and Co- ops produced 1 Research Report on Provincial legislative and regulatory protocols impeding SMMEs and Co-ops produced Initiate the appointment of service provider to conduct research on Provincial legislative and regulatory protocols impeding SMMEs and Co-ops Draft research report on Provincial legislative and regulatory protocols impeding SMMEs and Co- ops produced Progress report on Provincial legislative and regulatory protocols impeding SMMEs and Co-ops produced Final report on Provincial legislative and regulatory protocols impeding SMMEs and Co-ops produced with Key findings and recommendations

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 1: Policy and planning coherence in the sector, that promotes an enabling ecosystem for SMMEs and co-operatives Strategic Objective 1.1: Reduced regulatory burdens and a conducive legislative and policy environment for SMME’s and Co-operatives 16 New Indicator Number of National business processes and procedures analysed and redesigned per annum 4 National business processes and procedures analysed and redesigned per annum Stakeholder Consultations Stakeholder consultations 2 of 4 National procedures analysed and reengineered 4 of 4 National procedure analysed and reengineered 17 Number of Local business processes and procedures analysed and redesigned per annum 5 Local business processes and procedures analysed and redesigned per annum 4 of 5 Local business processes and procedures analysed and reengineered 5 of 5 Local business processes and procedures analysed and reengineered 18 Submission of draft proposed amendment to Minister Submission of the amendment of the National Small Business Bill into the legislative process National Small Business Amendment Bill developed and submitted to Minister for approval Development of the National Small Business Amendment Bill National Small Business Amendment Bill presented to EXCO for approval National Small Business Amendment Bill submitted to the Minister for approval

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 1: Policy and planning coherence in the sector, that promotes an enabling ecosystem for SMMEs and co-operatives Strategic Objective 1.1: Reduced regulatory burdens and a conducive legislative and policy environment for SMME’s and Co-operatives 19 Initiation of the evaluation of the Integrated Strategy on the Promotion of Entrepreneurship and Small Enterprises Revised Strategy on the Promotion of Entrepreneurship and Small Enterprises, submitted for Cabinet approval (in 2018/19) Outcome Report on Evaluation, articulating findings and recommendations for revision in /19 Evaluation methodology finalised Draft Evaluation report Progress report on Evaluation Outcome Report on Evaluation, articulating findings and recommendations Plan for revision of strategy in 2018/19 approved by EXCO. 20 New indicator Revised Co- operatives Strategy, submitted for Minister approval (in /19) Outcome Report on Midterm Review of the Co-operatives Strategy, articulating findings and recommendations for revision in /19 Stakeholder Consultations Draft report on Midterm review outcomes prepared Outcome Report on Midterm Review of the Co-operatives Strategy, articulating findings and recommendations for revision in 2018/19, submitted for approval to EXCO

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 1: Policy and planning coherence in the sector, that promotes an enabling ecosystem for SMMEs and co-operatives Strategic Objective 1.3: A comprehensive research agenda on key areas of support for SMME’s and Co-operatives implemented 21 New indicator Approved annual sectoral research plan implemented Annual assessment on implementation of 2017/18 plan conducted in Q4 2018/19 plan approved by EXCO in Q4 Stakeholder Consultations 2017/18 plan developed Quarterly progress report on implementation of 2017/18 programme Annual assessment on implementation of /18 plan conducted in Q4 2018/19 plan approved by EXCO in Q4 22 2 Research reports on SMMEs and Co-operatives key areas of support approved Number of Research reports on SMMEs and Co-operatives key areas of support approved 4 Research reports on SMMEs and Co- operatives key areas of support approved Research topics identified and approved by EXCO Initiation of procurement processes Research on SMMEs and Co-operatives key areas of support conducted 4 Approved Research reports on SMMEs and Co-operatives key areas of support 23 Number of sector strategic frameworks for SMMES and Co- ops, approved per annum 1 (1 of 8) sector strategic framework for SMMES and Co- ops, approved Sector identified and approved by EXCO Research conducted 1 Sector strategic framework developed and approved

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 1: Policy and planning coherence in the sector, that promotes an enabling ecosystem for SMMEs and co-operatives Strategic Objective 1.3: A comprehensive research agenda on key areas of support for SMME’s and Co-operatives implemented 24 Process for development of National Incubation Policy Framework initiated Submission of National Incubation Policy Framework for approval by relevant structures National Incubation Policy Framework submitted to EXCO for approval Literature Review on National Incubation Policy Framework concluded TOR on National Incubation Policy Framework finalised Draft National Incubation Policy Framework concluded. Final National Incubation Policy Framework presented to EXCO for approval 25 New Indicator Number of differentiated plans for district rural municipalities developed per annum 1 differentiated plan for district rural municipality developed 5 district rural municipalities identified and IDPs assessed. TOR finalised for the development of economic profiles for the 5 district rural municipalities identified. Research conducted 1 differentiated plan developed and presented to EXCO 26 Number of regional pilot profiles produced per annum 1 regional pilot profile produced Identify regions/towns for profiling and approved by EXCO Initiation of procurement processes 1 Regional pilot profile study conducted 1 Regional pilot profile produced and presented to EXCO

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 1: Policy and planning coherence in the sector, that promotes an enabling ecosystem for SMMEs and co-operatives Strategic Objective 1.4: Strengthened efforts to place SMME’s at the centre of the economic diplomacy agenda. 27 New Indicator Approved Annual International Relations strategy, to advance SA trade positions and mandates that will promote investments and growth of SMMEs and Cooperatives, implemented Multi-year Strategy on International Relations, to advance SA trade positions and mandates that will promote investments and growth of SMMEs and Cooperatives, submitted to Minister for approval Submit Strategy on International Relations to Minister for approval Approval of an International Relations Programme for /2018 Quarterly progress report on implementation of IR programme Quarterly progress report on implementation of IR programme 2018/19 International Relations programme approved by EXCO in Q4 of 2017/18 FY Stakeholder consultations on the development of an International Relations Programme for /2018 Quarterly progress report on implementation of IR programme - 2018/19 International Relations programme approved by EXCO in Q4

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 3: An enhanced contribution to socio-economic development outcomes by the sector. Strategic Objective 3.1: Demonstrated progress towards sector-wide SMMEs and co-operatives support achieving its intended socio-economic impact 28 New Indicator Number of Sector- wide Procurement Trend Analysis, conducted per annum Development of monitoring framework with reporting templates Report on consultations with stakeholders: 1. National Treasury on the approved practice notes; 2. Public sector stakeholders on development of guidelines; 3. Presentation of guidelines to EXCO Circulate final data analysis guidelines to stakeholders for application Monitor utilisation of data analysis guidelines by stakeholders Collect and collate data from stakeholders and compile a report on procurement trends in terms of 30% public procurement set asides directive 29 Number of Sector- wide Trend Analysis on growth in the sector and targeted groups benefiting from SMMES and Co- ops support interventions, conducted per annum Analysis criteria on SMMEs and cooperatives sector support interventions and effects on growth and sustainability of beneficiaries Develop mainstreaming variables to be measured in the Bi-annual Trend Analysis Survey Circulate mainstreaming variables to be measured in the Bi-annual Trend Analysis Survey. 1. Collate and Capture Data from the Trend Analysis Survey Analysis of the Mainstreaming Data from the Bi- annual Trend Analysis Survey Draft Mainstreaming Report included as a chapter in the Bi-annual Trend Analysis Survey. 1. Mainstreaming Report included as a chapter in the Bi- annual Trend Analysis Survey, presented EXCO for approval Circulate mainstreaming variables to be measured in the next Bi-annual Trend Analysis Survey. 1. Collate and Capture Data from the Bi-annual Trend Analysis Survey Analysis of the Mainstreaming Data from the Bi-annual Trend Analysis Survey Draft Mainstreaming Report included as a chapter in the Bi-annual Trend Analysis Survey.

BUDGET: Programme 2 Programme 2 (R’000) Audited outcome Adjusted appropriation Medium-term expenditure estimate 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Policy, Research and Legislation 13,527 11,707 11,692 21,563 11,230 12,996 13,811 Monitoring and Evaluation - 4,272 6,657 7,111 7,483 International Relations 4,112 4,178 4,416 Total 25,835 21,999 24,285 25,710 Economic classification Current payments 13,437 11,640 11,675 25,775 Compensation of employees 7,801 9,783 9,908 14,186 10,800 11,616 12,470 Goods and services 5,636 1,857 1,767 11,589 11,199 12,669 13,240 Transfers and subsidies 55 22 Households Payments for capital assets 35 45 17 60 Other machinery and equipment

1.2 Departmental Management 1.3 Corporate Services
Programme Structure PROGRAMME SUB-PROGRAMMES 1. ADMINISTRATION 1.1 Ministry 1.2 Departmental Management 1.3 Corporate Services 1.4 Financial Management 1.5 Communications 2. SMMEs & COOPERATIVES: POLICY AND RESEARCH 2.1 Policy and Research 2.2 Monitoring and Evaluation 2.3 International Relations 3. SMMEs & CO-OPERATIVES: PROGRAMME DESIGN AND SUPPORT 3.1 Competitiveness Support 3.2 Enterprise Development 3.3 Market Development and Stakeholder Relations 3.4 Cooperative Development 3.5 SMME Development Finance

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 1: Policy and planning coherence in the sector, that promotes an enabling ecosystem for SMMEs and co-operatives Strategic Objective 1.2: An integrated approach to planning, monitoring and evaluation of the SMMEs and co-operatives sector, to inform policy decision making 30 DG Committee on the government support to the 9-Point Plan initiatives established DG Committee on the 9 Point Plan and SMMES and Co-ops Sector convened 2 DG Committees on the government support to the 9- Point Plan initiatives convened per annum to report on other departments’ non-financial and financial support to SMMEs and Cooperatives - 1 DG Committee on the government support to the 9- Point Plan initiatives convened per annum to report on other departments’ non- financial and financial support to SMMEs and Cooperatives 1 DG Committee on the government support to the 9-Point Plan initiatives convened per annum to report on other departments’ non- financial and financial support to SMMEs and Cooperatives 31 4 Stakeholder Forums conducted per annum Number of Sector Stakeholder Forums convened 4 Stakeholder Forums conducted per annum. 1 Sector Stakeholder Forum convened 1 Sector Stakeholder Forum convened 1 Sector Stakeholder Forum convened 32 4 IGR Forums conducted per annum Number of IGR Forums convened 4 IGR Forums conducted per annum 1 IGR Forums convened 1 IGR Forum convened

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 2: Equitable access to responsive and targeted products and services that enable the growth and development of SMMEs and co-operatives. Strategic Objective 2.1: Oversight and coordination of the design and implementation of targeted financial support programmes to support new and existing SMMEs and co-operatives. 33 Annual programme evaluation report produced in Q4 Annual programme evaluation report on the planning, design and implementation of DSBD and Entity SMME and Co- operatives financial support programmes Annual programme evaluation report on selected finacial support programmes produced in Q4 Develop framework to monitor financial support programmes. Identification of programmes to be evaluated in /18. Evaluation of programmes undertaken. Evaluation of programmes completed and report produced. 34 Approved plan for the review and enhancement of the financial products and services business architecture of the SBD Portfolio Implementation of a revised financial products and services business architecture for the SBD Portfolio Review and enhancement of the financial products and services business architecture of the SBD Portfolio completed Establishment of a Steering Committee to identify programmes to be reviewed and enhanced; develop TORs and appointment of a service provider Analysis of the efficacy and impact of the identified programmes AND migration of DSBD programmes to Entities Analysis of the efficacy and impact of the identified programmes. Analysis report and migration of DSBD programmes to Entities.

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 2: Equitable access to responsive and targeted products and services that enable the growth and development of SMMEs and co-operatives Strategic Objective 2.1: Oversight and coordination of the design and implementation of targeted financial support programmes to support new and existing SMMEs and co-operatives 35 6 Informal Business Infrastructure partnership agreements secured Number of Informal Business Infrastructure partnership agreements secured 6 Informal Business Infrastructure partnership agreements secured 1 Informal Business Infrastructure partnership agreement secured 2 Informal Business Infrastructure partnership agreements secured 2 Informal Business Infrastructure partnership agreements secured 1 Informal Business Infrastructure partnership agreement secured 36 600 black SMMEs supported through the BBSDP Number of black SMMEs supported through the BBSDP 641 black SMMEs supported through the BBSDP 100 black SMMEs supported through the BBSDP (Develop TORs for the migration of the BBSDP) 200 black SMMEs supported through the BBSDP (Evaluation Report on BBSDP produced) 171 black SMMEs supported through the BBSDP (Implementation of recommendations from Evaluation Report) 170 black SMMEs supported through the BBSDP (Migration finalised and approved) 37 370 Co- operatives supported financially through the CIS Number of Co- operatives supported financially through the CIS 270 Co- operatives supported financially through the CIS 70 Co-operatives supported financially through the CIS (Develop TORs for the migration of the CIS) (Evaluation Report on CIS produced) 65 Co-operatives supported financially through the CIS 65 Co-operatives supported financially through the CIS

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 2: Equitable access to responsive and targeted products and services that enable the growth and development of SMMEs and co-operatives Strategic Objective 2.1: Oversight and coordination of the design and implementation of targeted financial support programmes to support new and existing SMMEs and co-operatives 38 Annual programme evaluation report produced in Q4 Annual programme evaluation report on the planning, design and implementation of DSBD and Entity SMME and Co- operatives non- financial support programmes Annual programme evaluation report on selected non- finacial support programmes produced in Q4 Develop framework to monitor selected non-financial support programmes. Identification of programmes to be evaluated in /18. Evaluation of selected non- financial programmes undertaken. Evaluation of selected non- financial programmes completed and report produced. 39 Approved plan for the review and enhancement of the non- financial products and services business architecture of the SBD Portfolio Implementation of a revised non- financial products and services business architecture for the SBD Portfolio Review and enhancement of the non-financial products and services business architecture of the SBD Portfolio completed Establishment of a Steering Committee to identify programmes to be reviewed and enhanced; develop TORs and appointment of a service provider. Analysis of the efficacy and impact of the identified programmes AND migration of DSBD programmes to Entities Analysis of the efficacy and impact of the identified programmes Analysis report and possible migration of DSBD programmes to Entities

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 2: Equitable access to responsive and targeted products and services that enable the growth and development of SMMEs and co-operatives Strategic Objective 2.1: Oversight and coordination of the design and implementation of targeted financial support programmes to support new and existing SMMEs and co-operatives 40 1600 Informal businesses supported through the IMEDP Number of Informal businesses supported through the IMEDP 1696 Informal businesses supported through the IMEDP 300 Informal businesses supported through the IMEDP (Develop TORs for the migration of the IMEDP) 470 Informal businesses supported through the IMEDP (Evaluation Report on IMEDP produced) 470 Informal businesses supported through the IMEDP (Implementation of recommendations from Evaluation Report) 456 Informal businesses supported through the IMEDP (Migration of the IMEDP programmes finalised and approved) 41 370 Co- operatives supported through training Number of Co-operatives supported through training (Linked to CIS) 270 Co- operatives supported through training (Linked to CIS) 35 Co-operatives supported through training (Develop TORs for the migration of the CIS) 90 Co- operatives supported through training (Evaluation Report on CIS produced) 80 Co-operatives supported through training 65 Co-operatives supported through training (Migration of the CIS programme finalised and approved)

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 2: Equitable access to responsive and targeted products and services that enable the growth and development of SMMEs and co-operatives. Strategic Objective 2.3: Equitable and accessible SMME and co-operatives support services nationwide. 42 New Indicator Number of co- location point partnership agreements secured to increase access to SMMEs and Co-operatives support services in historically disadvantaged communities 15 co-location point partnership agreements secured to increase access to SMMEs and Co-operatives support services in historically disadvantaged communities 3 co-location point partnership agreements secured to increase access to SMMEs and Co-opeartives support services in historically disadvantaged communities 5 co-location point partnership agreements secured to increase access to SMMEs and Co-operatives support services in historically disadvantaged communities 5 co-location point partnership agreements secured to increase access to SMMEs and Co-operatives support services in historically disadvantaged communities 2 co-location point partnership agreements secured to increase access to SMMEs and Co-operatives support services in historically disadvantaged communities 43 Number of quarterly analysis reports on SBD entity performance regarding progress in terms of the MTSF equity targets 3 Quarterly analysis reports on SBD entity performance regarding progress in terms of the MTSF equity targets Develop framework to monitor mainstreaming targets 1 Quarterly analysis produced within 30 days of the end of the quarter. Feedback provided to entities. 1 Quarterly analysis produced within 30 days of the end of the quarter. Feedback provided to entities.

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 3: An enhanced contribution to socio-economic development outcomes by the sector Strategic Objective 3.2: Sustainable partnerships to support the SMME and co-operatives development agenda. 44 R65m leveraged through partnerships with sector stakeholders per annum R Value of resources leveraged through partnerships with sector stakeholders per annum R10m Consultations and negotiations. R3m leveraged through partnerships with sector stakeholders R3m leveraged through partnerships with sector stakeholders R4m leveraged through partnerships with sector stakeholders Strategic Goal 4: Sound governance and the optimal utilisation of available resources Strategic Objective 4.2: Sound institutional governance and oversight of the Small Business Development Portfolio. 45 New Indicator Annual approval of Seda Shareholder compact secured and aligned to mandate of the department 2018/19 Seda Shareholder Compact approved and aligned to mandate of the department - 2018/19 draft Seda Shareholder compact developed in line with the mandate of the department 2018/19 draft Seda Shareholder compact developed in line with the mandate of the department, approved 46 Annual approval of Sefa Shareholder compact secured and aligned to mandate of the department 2018/19 Sefa Shareholder Compact approved and aligned to mandate of the department 2018/19 draft Sefa Shareholder compact developed in line with the mandate of the department 2018/19 draft Sefa Shareholder compact developed in line with the mandate of the department, approved

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 4:Sound governance and the optimal utilisation of available resources Strategic Objective 4.2: Sound institutional governance and oversight of the Small Business Development Portfolio 47 New Indicator Number of Seda Quarterly Performance Reports analysed for progress and alignment to achievement of department’s objectives 4 Seda Quarterly Performance Reports analysed for progress and alignment to achievement of department’s objectives Q4 2016/17 Seda Quarterly Performance Report analysed for progress and alignment to achievement of department’s objectives Q1 2017/18 Seda Quarterly Performance Report analysed for progress and alignment to achievement of department’s objectives Q2 2017/18 Seda Quarterly Performance Report analysed for progress and alignment to achievement of department’s objectives Q3 2017/18 Seda Quarterly Performance Report analysed for progress and alignment to achievement of department’s objectives 48 Number of Sefa Quarterly Performance Reports analysed for progress and alignment to achievement of department’s objectives 4 Sefa Quarterly Performance Reports analysed for progress and alignment to achievement of department’s objectives Q4 2016/17 Sefa Quarterly Performance Report analysed for progress and alignment to achievement of department’s objectives Q1 2017/18 Sefa Quarterly Performance Report analysed for progress and alignment to achievement of department’s objectives Q2 2017/18 Sefa Quarterly Performance Report analysed for progress and alignment to achievement of department’s objectives Q3 2017/18 Sefa Quarterly Performance Report analysed for progress and alignment to achievement of department’s objectives

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 4: Sound governance and the optimal utilisation of available resources Strategic Objective 4.2: Sound institutional governance and oversight of the Small Business Development Portfolio. 49 New Indicator Seda Annual Report analysed for progress and alignment to the achievement of department’s objectives Seda 2016/17 Annual Report analysed for progress and alignment to achievement of department’s objectives - 50 Sefa Annual Report analysed for progress and alignment to the achievement of department’s objectives Sefa 2016/17 Annual Report analysed for progress and alignment to achievement of department’s objectives

No Estimated Performance (2016/17) Performance Indicator Annual Target QUARTERLY TARGETS 1st 2nd 3rd 4th Strategic Goal 5: A professional and capacitated SBD Sector Strategic Objective 5.1: Coordinated development of the skills pool across the sector. 51 New Indicator Number of Annual Sector skills plans assessed 15 Annual Sector skills plans assessed 3 Annual Sector skills plans assessed 4 Annual Sector skills plans assessed 52 Annual round table meeting between Minister and educational institutions to influence the curriculum, to include entrepreneurship, convened 1 Annual round table meeting between Minister and educational institutions to influence the curriculum , to include entrepreneurship, convened - 53 Number of sector skills partnership agreements signed (Secure commitment from 1 funder to finance the training packages) Develop a standardisation framework for professionalising BDS practitioners. Identification, engagements and negotiations of and with potential partners. Secure commitment from 1 funder to finance the training packages. Commission institution(s) to develop training material for roll out in 2018/19 54 Number of exchange programmes facilitated (Identification of participants and secure agreements) Identify potential partners. Engagements and negotiations. Identification of participants Secure agreements for roll out in /19

BUDGET: programme 3 Programme 3 (R’000) Audited outcome Adjusted appropriation Medium-term expenditure estimate 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Competitiveness Support 25,201 32,669 42,555 109,174 112,623 114,603 121,207 Enterprise Development 686,909 681,234 652,834 656,768 762,552 809,734 855,536 Co-operatives Development - 3,393 3,949 6,847 7,976 8,504 9,083 Market Development 61,346 57,943 65,799 69,756 Small Medium and Micro Enterprises Development Finance 313,289 374,157 321,414 344,513 359,089 378,150 399,733 Total 1,025,399 1,091,453 1,020,752 1,178,648 1,300,183 1,376,790 1,455,315 Economic classification Current payments 61,127 67,979 62,299 72,742 69,911 76,273 81,970 Compensation of employees 43,694 52,563 48,634 57,730 56,537 61,123 65,962 Goods and services 17,433 15,416 13,665 15,012 13,374 15,150 16,008 Transfers and subsidies 964,187 1,023,020 958,249 1,105,786 1,230,272 1,300,517 1,373,345 Departmental agencies and accounts 661,497 644,398 622,835 633,814 735,701 778,371 821,959 Public Corporations 294,101 362,302 318,625 471,972 494,571 522,146 551,386 Non-profit institutions 8,335 16,320 16,726 Households 254 63 Payments for capital assets 85 454 204 120 Other machinery and equipment

Structure development – 2016 progress
STEP 1 Service Delivery Model Approved by Minister October 2016 STEP 2 Proposed Structure - 8 Consultation session held in Sept/Oct with DG to Ministry, Management and other levels in the department. - Sent via DSBDBlitz for inputs/comments 26 to 28 Oct0ber 2016 Job Descriptions, Job Evaluation & Workload Anaysis - Process at and advanced stage in November 2016 Matching & Placement - Change Management Matching and Placement Committee in place 44

Approved Start-up Structure
CONSULTED WITH ORGANISED LABOUR APPROVED APRIL 2015 MINISTRY DEPARTMENT OF DSBD BRANCH: CO-OPERATIVES DEVELOPMENT ENTERPRISE DEVELOPMENT & ENTREPRENEURSHIP ENTERPRISE COMPETITIVENESS SUPPORT CORPORATE SERVICES FINANCIAL MANAGEMENT STRATEGIC MANAGEMENT & EXECUTIVE SUPPORT INTERNAL AUDIT 45

Way Forward Action Responsibility Due date
Verification of Annual Performance Plan Coverage ALL SMS 29 March 2017 Resource requirements mapping and verification HR/ALL SMS 29/30 March 2017 Matching & Placement Recommendations: 75% plus match = Automatic Placement 50% plus match = Direct Placement Below 50% match = Assessment for Placement Competitive Match = Assessment based Matching & Placement Committee 31 March – 7 April 2017 Staff / Management Communication /Focus sessions 30 March – Focus session with all Ongoing Meeting with Organised Labour HR By 5 April 2017 Appeals Committee established Placement confirmation (at least 80% if not 100%) By 28 April 2017 Engagement with DPSA By 7 April 2017 Advertise DDG posts(Dependent on DPSA engagement outcome) …. 46

Conclusion Strengthen internal performance information management systems – reporting, evidence and review Stakeholder consultation engagement plan Strengthen implementation / project plans Be upfront in expenditure analysis and implement corrective actions Strengthen monitoring and evaluation and impact reporting Partnerships – MTSF aligned Pro-active community engagements: create awareness of programmes/ interventions Strengthen oversight of sefa, seda Improved coordination with other departments and spheres of government Understand geographical/demographical dynamics of municipalities – co-location (strengthen engagements with municipalities) MPAT: Engage SMS on MPAT requirements in order to meet a minimum of Level 3 in all areas Change Management: Sustained engagements with employees and labour

Department of Small Business Development

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