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

2. QUARTER 3 OF 2014/15 FINANCIAL YEAR

3. Presentation Outline
Purpose
Challenges
Programmes
Recommendations

4. Purpose
To request the Portfolio Committee to note the third and fourth 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, 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

6. 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

7. 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

8. 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.

9. 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.

10. 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

11. 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.

12. 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 /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

13. QUARTER 4 OF 2014/15 FINANCIAL YEAR

14. 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.

15. 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 /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

16. 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 /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

17. 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 /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
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

18. 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

19. 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.

20. 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

21. 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 /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 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

22. 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

23. 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
15 243 6
65 000
64 966 34
SEDA Technology programme
SEDA Agency
SAWEN
16 320
Transfer payments 40
TOTAL
15 284

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