Transcript Department of Small Business Strategic Plan 2014-19

Department of Small Business
Strategic Plan 2014-19
Outline
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Primary Policy Instruments
Mandate
Vision
Mission
Strategic Objectives
Five-year strategic plan
MTEF 2015 – 2018
Budget
Primary Policy instruments
• The National Development Plan provides the framework for
achieving radical economic transformation
• It sets a vision for the economy that is inclusive, equitable and fast
growing.
• To achieve that end, it points to the need to grow employment,
support productivity and efficiency gains and move toward greater
equality.
• To reach these aims it proposes:
– more affordable and efficient infrastructure provision linked to
higher levels of public investment;
– substantial improvements in basic and post-secondary
education;
– responsive and efficient regulations; and
– appropriate sector strategies.
Continued
• The key operational plans for implementing the
National Development Plan and MTSF include :
• the New Growth Path and the Industrial Policy
Action Plan (IPAP).
• The challenge is to ensure that these strategic plans
are translated into action plans with well-defined
annual iterations
• Through IPAP , plans will focus on productive sectors
including mining , agriculture and manufacturing
Continued
• Medium Term Strategic Framework : a government
strategic plan for 2014-2019 electoral term
• Reflection of the commitments entailed in the
manifesto including commitment to implement the
NDP
• Sets out identified targets and provides for
coherence amongst national , provincial and local
government
• Overarching theme : radical socio-economic
transformation and service delivery
Continued
• Outcome 4 Decent Employment through inclusive
economic growth
• Sub outcome 2: Elimination of unnecessary
regulatory burdens and lower price increases for
key inputs
• Measures to reduce red tape around authorisation for
investment in metros ( dti and SBD)
• Enhance township economies by DFIs ( supported by EDD)
• Enhanced support for township economies through
improved transport and commuter costs ( SBD supported by
COGTA, PICC, DOT DHS)
Continued
• Coaching and incubation programmes in support of
SMMEs and COOPS( supported by EDD, DAFF and the
dti )
• Programmes to ensure increased access to
employment and entrepreneurship for black women
and youth ( advancing support for emerging and
smaller enterprise)
• Develop appropriate sanctions with regard to non
compliance in relation to the 30 Day payment period
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Mandate
The department will lead an integrated
approach to the promotion and development of
small businesses and cooperatives through a
focus on the economic and legislative drivers
that stimulate entrepreneurship to contribute to
radical economic transformation. This drive will
foster increased employment, poverty reduction
and reduced inequality.
Vision
A radically transformed economy
through effective development and
increased participation of SMMEs and
cooperatives in the mainstream
economy.
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Mission
To create a conducive environment for the
development and growth of small businesses
and cooperatives through the provision of
enhanced financial and non-financial support
services, competitiveness, market access,
promotion of entrepreneurship, advancing
localisation and leveraging on public and
private procurement.
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Values
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Customer-focused
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Integrity
Honesty
Efficiency
Accessibility
Commitment
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Strategic Objectives
1. To facilitate the development and growth of small businesses and
co-operatives to contribute to inclusive and shared economic
growth and job creation through public and private sector
procurement
2. To facilitate radical economic transformation through increased
participation of small businesses and cooperatives in the
mainstream economy
3. To advocate for a conducive regulatory environment for small
businesses and co-operatives to enable access to finance,
investment, trade and market access in an equitable and
sustainable manner
4. Facilitate partnerships with all spheres of government as well as
the private sector to ensure mutual cooperation that will benefit
small businesses and co-operatives
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Strategic Objectives
5. To facilitate access to adequate infrastructure and incentives that are
designed to attract investment to underdeveloped communities and
reduce costs of doing business by small businesses and cooperatives.
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Strategic Objective 1:
To facilitate the development and growth of small businesses and co-operatives to contribute to inclusive and shared economic
growth and job creation through public and private sector procurement
Outcome
Increased
contributi
on to
GDP,
sustainab
le
livelihood
s and
creation
of job
opportunit
ies
Output
Performance
Indicator/
Measure
Targets for
2014 - 2019
2014/2015
Implement
ation of
public and
private
sector
procureme
nt
programm
e
Increased
number of
SMMEs and
Co-operatives
accessing
public and
private sector
procurement
opportunities
70 000 SMMEs
and Co-ops
preferred to
access public
and private
sector
procurement
opportunities
drawn from an
economic
profiling
exercise to be
carried out
National
Treasury to issue
Practice Notes
Implement
ation of
Sector
Catalytic
Projects
An increase in
the
establishment
of Cooperatives and
Incubators
Linking of 100
co-operatives to
market value
chains
(manufacturing,
agroprocessing,
energy, clothing
and textile)
Establishment of
50 Incubators
starting from the
2014/15
financial year
2015/16
2016/2017
2017/18
2018/19
10 000
15 000
•20 000
25 000
5
20
25
•25
25
6
8
10
12
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Use BBBEEE
Codes to
mobilise for
inclusion of
SMMEs and
Cooperatives in
private sector
procurement
Strategic Objective 1:
To facilitate the development and growth of small businesses and co-operatives to contribute to inclusive and shared economic
growth and job creation through public and private sector procurement
Outcome
Increased
contributi
on to
GDP,
sustainab
le
livelihood
s and
creation
of job
opportunit
ies
Output
Implement
ation of
Sector
Catalytic
Projects
Performance
Indicator/
Measure
An increase in
the
establishment
of Cooperatives and
Incubators
Targets for
2014 - 2019
2014/2015
Establishment 0
of 50
Cooperatives
in Renewable
Energy,
Manufacturing,
Services,
Mining, Agroprocessing,
Clothing,
footwear,
textile and
leather, and
Biofuels.
2015/16
10
2016/2017
12
2017/18
13
2018/19
15
Strategic Objective 1:
To facilitate the development and growth of small businesses and co-operatives to contribute to inclusive and shared economic growth and job
creation through public and private sector procurement
Outcome
Increased
contributi
on to GDP,
sustainabl
e
livelihoods
and
creation of
job
opportunit
ies
Output
Performance
Indicator/
Measure
Targets for
2014 - 2019
2014/15
2015/16
2016/2017
2017/18
2018/19
Informal
Traders
Upliftment
Project
implemente
d
An increase in
the provision of
adequate skills
and
infrastructure
support to
informal
businesses
3300 informal
300
business
owners selected
from each
province for
training
prioritising
Presidential
Nodes
600
700
800
900
Cooperatives
Developme
nt Agency
established
A fully
operational
Agency with
dedicated and
skilled cooperatives
managers
3234 primary
co-operatives
receiving
funding,
training and
access to
market
270
371
685
822
1086
45 Secondary
Co-operatives
funded
3
6
9
12
15
Strategic Objective 1:
To facilitate the development and growth of small businesses and co-operatives to contribute to inclusive and shared economic growth and job
creation through public and private sector procurement
Outcome
Increased
contribution
to GDP,
sustainable
livelihoods
and creation
of job
opportunities
Output
Performance
Indicator/
Measure
Annual Targets
for 2014 - 2019
Decentralisat
ion of
business
support
services
Capacity building
and co-location
for SEDA
Branches
72 SEDA
Branches trained
5
10
15
20
22
140 co-location
points
10
25
30
35
40
Youth Black
Business
supplier
Development
Programme
implemented
Funding of Youth
Enterprises
1500 Youth
Enterprises
funded
40
200
300
400
560
2014/15
2015/16
2016/2017
2017/18
2018/19
Strategic Objective 2
To facilitate radical economic transformation through increased participation of small businesses and cooperatives in the
mainstream economy
Outcome
Increased
participati
on of
SMMEs
and Cooperatives
in the
mainstrea
m of the
economy
Output
Performance
Indicator/
Measure
Targets for
2014 - 2019
Centers for
Entreprene
urship
established
Signing of MoAs
with hosting
academic
institutions
Centers opened
in 20 hosting
academic
institutions
2
3
4
5
6
Enterprise
Cadet
Scheme
An increase
number of new
enterprises
established
600 new
enterprises
established
2
60
118
200
220
Mass Youth
Enterprise
Creation
Programme
Increased
creation of
Youth owned
enterprises
3000 Youth
enterprises
launched over a
5-year period
0
300
700
800
1200
Global
Exporter
Passport
Programme
Accelerated
development of
Export ready
SMMEs
6400 Export
ready SMMEs
developed to
consider
opportunities in
identified
international
markets (
market access)
1000
1200
1300
1400
1500
2014/15
2015/16
2016/2017
2017/18
2018/19
Strategic Objective 3:
To advocate for a conducive regulatory environment for small businesses and co-operatives to enable access to finance, investment, trade and market
access in an equitable and sustainable manner
Outcome
Simplified
regulatory
environme
nt to
promote
competitiv
eness and
market
access
Output
Performance
Indicator/
Measure
Target for 2014
– 2019
Amendment
of the
National
Small
Business
Act, 1996
(No.102 of
1996)
Commence the
amendment of
the Act during
the 2014/15
financial year
Roll-out of
Red tape
reduction
guidelines
championed
Governmentwide
implementation
of red tape
reduction
programme
Advocate
implementa
tion of setasides
programme
Governmentwide
implementation
of set-asides
programme
2014/15
2015/16
2016/2017
2017/18
2018/19
The Act aligned
to the mandate
of the
department to
remove
constrains for
SMMEs and Cooperatives
development
Consideratio
n of
administratio
n and
legislative
processes
Tabling and
Implementati
on of the Act
Implementation
and monitoring
of compliance
Implementation
and monitoring
of compliance
Implementati
on and
monitoring of
compliance
Red tape
reduction
guideliness
institutionalised
at all state
institutions
Conduct
sector
specific
scoping
exercise on
regulatory
constraints
Obtain
Cabinet
approval for
adoption of
guidelines as
national and
provincial
policy
Conduct sector
specific scoping
exercise on
regulatory
constraints
Conduct sector
specific scoping
exercise on
regulatory
constraints
Issuing of the
practice note
by National
Treasury
Monitoring of
effective
implementati
on of setasides
programme
Monitoring of
effective
implementation
of set-asides
programme
Monitor and
assess
implementation
of set-asides
programme
Strategic Objective 3:
To advocate for a conducive regulatory environment for small businesses and co-operatives to enable access to finance, investment, trade and market
access in an equitable and sustainable manner
Outcome
Simplified
regulatory
environme
nt to
promote
competitiv
eness and
market
access
Output
Developme
ntal
Cooperative
s Model
finalised
Performance
Indicator/
Measure
Target for 2014
– 2019
Developmental
Cooperatives
Model
implemented
Model adopted
countrywide
and sustainable
cooperatives
that contribute
to economic
growth and job
creation
established
2014/15
Draft model
developed
2015/16
2016/2017
2017/18
Model
approved,
aligned with
provinces
(capacity
building) and
implemented
Implementation
Monitoring and
Evaluation
2018/19
Monitoring
and
Evaluation
Strategic Objective 4
Facilitate partnerships with all spheres of government as well as the private sector to ensure mutual cooperation that will benefit small businesses
and co-operatives
Outcome
Output
Performance
Targets for
Indicator/
2014 – 2019
2014/15
2015/16
2016/2017
2017/18
2018/19
Measure
Increased
participati
on of role
players to
support
SMMEs
and Cooperatives
developm
ent
Mainstreamin
g of Youth
(including
women and
people with
disability)
enterprises
through
transversal
agreements in
the following
sectors:
clothing and
textile,
agriculture,
infrastructure,
energy
Signing of
transversal
agreements
between dsbd
and all state
institutions to
facilitate
market access
120 000 (youth,
women and
people with
disability) jobs
created through
the signed
transversal
agreements
0
30 000
30 000
30 000
30 000
Export Villages
Development of
an Export
Village Strategy
and
Implementation
Plan
9 Export
Villages rolledout across the
country to
provide
capacity
building and
market access
for SMMEs and
cooperatives
0
1
2
3
3
Strategic Objective 4:
Facilitate partnerships with all spheres of government as well as the private sector to ensure mutual cooperation that will benefit small businesses
and co-operatives
Outcome
Increased
participati
on of role
players to
support
SMMEs
and Cooperatives
developm
ent
Output
Performance
Indicator/
Measure
Targets for
2014 – 2019
National
Enterprise
Developme
nt Fund
established
Forging
sustainable
partnerships
with the private
sector to
benefit SMMEs
and Cooperatives
7000 start-ups
and growth
oriented
SMMEs and Cooperatives that
access the Fund
Designing
criteria for
disbursing
the funding
and lobby
the private
sector to
contribute to
the fund
1000
1500
2000
2500
Shared
Economic
Infrastructu
re Facility
implemente
d
Accelerated
Partnership
Agreements
with Provincial
and Local
Government
278
Municipalities
partnering with
the dsbd
10
30
50
88
100
2014/15
2015/16
2016/2017
2017/18
2018/19
Strategic Objective 4
Facilitate partnerships with all spheres of government as well as the private sector to ensure mutual cooperation that will benefit small businesses
and co-operatives
Outcome
Increased
participati
on of role
players to
support
SMMEs
and Cooperatives
developm
ent
Output
Micro
Franchising
Incentive
designed
and
approved
Performance
Indicator/
Measure
Accelerated
identification
and packaging
of SMMEs and
Co-operatives
Targets for
2014 – 2019
110 SMMEs
and Cooperatives
packaged as
micro
franchisors
2014/15
5
2015/16
20
2016/2017
25
2017/18
30
2018/19
30
Short-term Priorities
• Skills, training and capacity building (LED, business
development support, technology transfer, innovation and
entrepreneurship).
• Finalise incentives and access to finance delivery model.
• Identify opportunities for public sector procurement (setasides programme).
• Establish business development/marketing section to identify
and develop business plans for implementing public sector
procurement opportunities.
• Private sector procurement opportunities (supplier
development programmes, revitalisation of mining towns).
• Develop new policies, review existing policies and implement
strategies, i.e. roll-out of key interventions.
Long-term Priorities
• National survey (periodic and reliable statistics)
• Design training programmes to address skills gaps
including sector specific interventions
• Develop key domestic and international markets
• Decentralise business development services to include
economic profiling and market access
• Develop and review the regulatory environment
Envisaged Impact
• Incentive programmes aimed at creating new businesses,
which will increase the potential for new jobs
• Public and private sector procurement geared towards
improving market access (including growth and development)
for black small enterprises and co-operatives (e.g. fixing of
potholes)
• Increased culture of entrepreneurship aimed at increasing the
number of new innovate and sustainable business ventures
that will contribute to job creation
• Creating a simplified policy and regulatory environment for
SMMEs and Co-operatives development to eradicate poverty,
inequality and unemployment
Envisaged Impact cont…
• Through the Export Development Programme companies will
improve their ability to export and reduce the costs and risks
involved in penetrating foreign markets
• The provision of technical and business development services
to the targeted groups (youth, women and people with
disabilities) will result in upgraded skills, improved quality of
products, access to local and international markets, enhanced
and sustainable enterprises, increased employment.
• Enhanced support to informal businesses, rural and township
enterprises will increase their competitiveness, resulting in
sustainable enterprises and retention of existing jobs.
MTEF 2015 to 2018
Economic
Classification
Compensation of
Employees
Good & Services
Transfer Payments
Payments for Capital
Assets
TOTAL
2015/
2016
2016/
2017
2017/
2018
T O TA L
264 219
281 394
299 688
782 663
123 840
138 224
157 070
441 748
1 179 000
1 298 400
1 432 400
7 715
8 487
9 335
1 574 774
1 726 505
1 898 493
3 909 740
25 537
5 199 772
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Grants and soft loans
• Grants and soft loans will be researched and
covered as per the Cluster determination
• The proposal is R2.5 billion over the MTEF
period
Detail of Transfer Payments
Tr a n s f e r
Payments
seda
2015/
2016
2016/
2017
2017/
2018
T O TA L
665 000
731 500
804 650
2 201 150
SAWEN
17 000
18 700
25 570
56 270
Isivande
12 000
13 200
14 520
39 720
Incubation Support
Programme
200 000
220 000
242 000
662 000
Cooperatives
200 000
220 000
242 000
662 000
Centre for
Entrepreneurship
25 000
29 000
31 000
85 000
CDA
60 000
66 000
72 600
198 600
1 179 000
1 298 400
1 432 340
TOTAL
3 909 740
30
Programmes
 Programme 1: Administration R534 million
 This programme will be comprised of support
services to the department in terms of a Chief
Information Office, Human Resources, Legal
Services, Corporate Governance and Ethics,
Auxiliary Services and a unit to execute the
marketing and communications of the department.
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Programme
 Programme 2: Customised Intervention Programmes
R371 million (includes Gender, Innovation, IP, IKMS,
Youth, NIBUS, People with disabilities)
 The key focus will be striving to improve the quality of
financial and non-financial support services to SMMEs
and coops. Specific programmes will include support of
informal activities through the implementation of the
National Informal Business Upliftment Strategy (NIBUS),
which will provide subsistence for people who are
economically marginalised. In addition to this the
department on supporting market access initiatives.
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Programme
 Programme 3: Co-operatives R366 million
 The department will be implementing a new support
model for cooperatives, including implementation of
the Co-operatives Act and the establishment of a
Cooperatives Development Agency and Tribunal,
and developing and providing financial incentives.
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Programme
 Programme 4: Research, Policy and Intergovernmental
Relations R87 million
 Evaluation of existing policies such as National Small
Business, Cooperatives, Youth Enterprise Development,
Women Empowerment and National Informal strategies
with a view to enhance policies in line with the mandate
of the Department. The conclusion of transversal
agreements with other Government Departments to
enhance implementation of Departmental strategies will
need to be effected.
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Programme
 Programme 5: Enterprise Development and Entrepreneurship R3.8
billion (includes Chief Directorates Enterprise Development,
Entrepreneurship and Franchising, Skills Development, Supply
Development, Impact Assessment, Regional Industrial special
projects and Incentives and soft loans to both SMMEs and Cooperatives)
 Coaching and incubation programmes will be provided in support of
SMME’s and co-operatives and will include support in capturing
innovation and managing intellectual property and indigenous
knowledge for small businesses.
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Unforeseen and unavoidable
• Requested R60 million
• Allocated R33.7 million
• R16 million CoE
• 12.7 million G&S
• R5 million Capital Assets
Thank you