Media statement following the department’s presentation of its 2015/16 quarter 1 performance report to the Portfolio Committee
The Department of Small Business Development presented its performance report for the first quarter (April-June) of the 2015/16 financial year to the Portfolio Committee on Small Business Development this morning. The report was positively welcomed by the Portfolio Committee. The Committee expressed satisfaction with the progress the department has made over the last three months.
Some of the key achievements of the department during the first quarter are as follows:
- The department continued to facilitate access to finance for SMMEs and co-operatives. Under the department’s Black Business Supplier Development Programme, 221 enterprises were supported to the tune of R60,7 million. This has supported 7 412 jobs of which 6 321 are permanent and 1 091 are temporary.
- During the first year, sefa disbursed R344million to 24 711 SMMEs. A total of 5305 youth-owned businesses, 22 296 black-owned, 21 940 women-owned, 22 620 SMMEs and co-operatives in priority provinces has been financed. It is important to note that 43% of the allocations were in the priority sectors such as Construction, ICT, Mining, Manufacturing, Agriculture and Tourism as defined in the New Growth Path and Industrial Policy Action Plan.
- It is encouraging that 98% of Sefa support is towards informal businesses. This is consistent with the nine-point plan announced by the President during the 2015 State of the Nation Address. It is important to note that most of sefa loans are not supported by any form of collateral.
- A total of 2 174 clients have received support from Small Enterprise Development Agency (SEDA), an agency of the department. This support has made a huge impact on the growth and sustainability of these enterprises. 70% of surveyed clients indicated an increase in turnover; 45% of surveyed clients indicated an increase in the number of people employed; 98% of satisfaction level from Seda supported clients.
- Through the Seda Technology Programme (STP), 2,236 clients are supported by the Seda network of 48 incubators. 535 permanent jobs were created by incubated small enterprises, mostly in agriculture and construction sector.
- With regard to our commitment to pay small businesses within 30 days, we are pleased to indicate that 97.6% invoices were paid within 30 days during the period under review, while the remaining 2.4% were paid 1 day after 30 days. We are recruiting staff in the finance section as part of our determination to ensure that we pay 100% of invoices within thirty days. As champions and advocates of small businesses, we will continue to lead by example on this issue and other areas of small business development.
- In relation to employment of people with disabilities and women at Senior Management level, the department has met the set targets and exceeded performance in relation to representation of women at senior management level. The department has achieved 48% female representation at senior management level against our quarter one target of 45%.
- The implementation of the 30% set-asides programme is firmly on track. Draft regulations of the Public Procurement Policy Finance Act (PPPFA) were issued by National Treasury for public comment. As announced during our Budget Vote speech in May this year, the PPPFA Regulations 2015 are still scheduled to be signed off by the end of September 2015.
Engagements regarding retail value chain
The department is convinced that collaboration with the private sector is critical to building a growing and viable small business and cooperative sector. The department has identified the retail sector, among other players, as an important partner in the development of small businesses. In this regard, the department and its agencies have consulted widely with the retail sector as part of our collective commitment to explore and find opportunities for small businesses and cooperatives.
Amongst the retailers engaged by the department, SEFA and SEDA in a bid to unlock opportunities for small businesses are: SAB Miller, Edcon, Tiger brands, Fruit and Vegetables, ZZ2, Anglo, AIDC- Automotive Industry Development Centre, Woolworths, Pick and Pay, Amalgamated Beverage Industries (ABI), Boxer Superstores, Massmart, Woolworths, Spar and Shoprite. We are confident that these partnerships will lead to unprecedented benefits for small businesses.
The department is satisfied with the progress it has registered over the last three months, but believes more still needs to be done to accelerate the implementation of its programmes. The department is encouraged by the fact that it has managed to achieve these successes despite the budgetary and capacity challenges that confront it.
The department will continue to lead programme number seven under the nine-point plan: Unlocking the potential of SMMEs, Cooperatives, Township and Rural Enterprises. In line with this programme, we will continue to focus our attention and energies on the following: public sector procurement, building access into private sector value chains, access to finance, support to township and rural enterprises, and policy and regulatory environment
Enquiries:
Cornelius Monama
Spokesperson: Department of Small Business Development
Tel: 082 578 40963
Email: CMonama@dsbd.gov.za or CMonama@gmail.com
Cornelius Monama
Ministry of Small Business Development
Tel: 012 394 3027
Cell: 082 578 4063
Fax: 086 544 0931
Email: cmonama@dsbd.gov.za
