Training Authorities (SETAs) switch focus
6 September 2006
A shift in focus by SETAs to support their levy paying constituencies
consisting primarily of large and medium enterprises has paid off handsomely
during the 2005/06 financial year and is set to continue. Interim pre-audited
figures show that of the R2,3 billion that had been transferred to SETAs for
mandatory grants, R2,2 billion was claimed and paid out.
These figures represent a 92% participation rate â a massive jump up from
previous recovery levels of just over 50%.
These developments prove that the SETAs system is working well for large and
medium firms since such firms have the capacity to engage in the rigorous work
place skills planning and annual reporting process required as pre-requisites
for qualifying for mandatory grants.
Small business and especially entrepreneurs have very different, specific,
quick and intense training needs.
Thus a small business person is more interested in training than planning
for training. For example, a three to four hour workshop on how to improve cash
flow or how to benefit from tax incentives is what a small business person
needs.
In recognition of this change of focus by SETAs, and due to concern for the
decreasing skills development support for small business as recently reported
by Labour Minister, Membathisi Mdladlana, the Department is in the process of
compiling a reference resource of all the different types of skills development
support strategies that have been implemented by various SETAs for small
businesses over the last six years.
This includes free or subsidised training, training voucher systems and
funding freelance or contract skills development facilitators to assist small
business with workplace skills planning and implementation processes.
This same resource also includes a comprehensive listing of organisations
across the country that offer a support to small businesses in a variety of
ways. Researches through SETAs have indicated that what small business wants
more than anything else is information. A small business entrepreneur is by
nature a self starting learner and they move quickly by themselves when given
information and guidance.
The alternate information sharing strategy for skills development support
for small companies is also being shared with the Small Enterprise Development
Agency (SEDA) that is managed by the Department of Trade and Industry. The SEDA
has been very active in setting up structures right across the country, making
sure that small business has access to training where it is needed most.
The SEDA will assist small companies to develop and grow, not necessarily
with the help of the SETAs although there are very close linkages between
itself and numerous SETAs.
Last year alone the SETAs helped over 1 700 young people to develop skills
to start new ventures that will need structures like SEDA to assist them with
seed money to capitalise their business, since the SETAs can only fund skills
development in terms of the law.
Although SETAs provided skills development support to over 27 000 small levy
paying businesses last year, non levy paying firms as well as non-governmental
organisations (NGOs), community-based organisations and co-operatives who do
not pay skills development levy will need to be assisted in more dynamic and
specific processes.
The information resource is the first of these processes as is the closer
collaboration between the Department of Labour and SEDA.
The Department, through the National Skills Fund, also supported over 90 000
unemployed and under-employed people with skills training during the 2005/06
financial year.
The training is co-ordinated by the over 100 Labour Centres across the
country and many of the beneficiaries of this training find employment or self
employment within small firms in their communities.
This is a support area that is set to grow over the next few years since it
addresses the development of small and emerging business in rural and nodal
areas.
Enquiries:
Mokgadi Pela
Cell: 082 808 2168
Website: www.labour.gov.za
Issued by: Department of Labour
6 September 2006
