The Portfolio Committee on Small Business Development has expressed concerns over the slow pace by the department to organize a strategic planning session, which would be attended by entities inherited from the two departments namely Trade and Industry (DTI) and the Department of Economic Development (DED). The Committee would also be invited to attend.
“This session is long overdue. It would create a platform to develop a shared vision and direction of the department, but it is not happening and we are concerned,” said Ms Ruth Bhengu, Committee Chairperson.
At the same time, the Committee gave the Department of Small Business Development (DSBD) four months to conduct assessment of programmes inherited from the DTI and DED to ensure their relevance to a broader mandate of the department and the felt needs of small, medium and micro enterprises (SMMEs) and cooperatives. The report regarding this matter is expected by the end of October 2015.
Ms Bhengu reiterated that the department should draw lessons from the Mondragon Cooperatives model and the initiatives of the King of Midlands, which is about addressing the issue of exploitation through a self-reliant approach.
The King of Midlands is a cooperative founded by taxi owners from the Grange and Westgate taxi association in KwaZulu-Natal, which includes community development initiatives through their social services of school outreach and a reconciliation programme between families of those affected by taxi violence and perpetrators. It also includes the skilling of inmates to prepare them for life after prison.
The business model of the King of Midlands aims to build a petrol station, tyre fitment centre, spares shop and cooperative bank. The Committee has tasked the DSBD to develop a similar model, which could be streamlined in all the provinces.
“We are not expecting the department to fail in developing a model based on the existing organised structures that have resources and expertise like taxi owners, or else we would recommend that it closes shop,” Ms Bhengu said.
She reiterated further, saying the DSBD should conduct self-assessment with regard to its capacity and capabilities to carry out the mandate of developing effective and sustainable SMMEs and cooperatives.The department is expected to report back on its progress in the next (third) term of Parliament.
Lastly, the Committee resolved to embark on a study tour to Spain in order to learn more about the Mondragon Cooperatives model (a federation of workers’ cooperatives based in the Basque region). The tour will take place in 2016 after the local government elections.
Enquiries:
Justice Molafo
Tel: 021 403 8444
Cell: 081 424 7481
E-mail: jmolafo@parliament.gov.za
