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

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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 Indicator/ Measure Annual Targets for 2014/54 Q3 Milestones Actual Reasons for variance Corrective action BROADENING PARTICIPATION DIVISION (BDP) Implementation of the seda Technology Programme (stp) Number of jobs created through stp Number of established incubators supported through stp Better than expected performance in the construction, Manufacturing and agricultural sectors 48 (inclusive of 6 newly established) Support 2 new incubators Two new incubators established and supported N/A N/A N/A

7 Seda Technology Programme SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Indicator/ Measure Annual Targets for 2014/15 Q3 Target Actual Reasons for variance Corrective action Implementation of the seda Technology Programme (stp) Number of clients assisted through technology transfer programme 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 Indicator/ Measure Annual Targets for 2014/15 Q3 Milestones Actual Achievement Reasons for variance Corrective action Implementation of the Cooperative 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 midterm 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 Indicator/ Measure Annual Targets for 2014/15 Q3 Target Actual 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 resubmit 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 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 rollout 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 N/A

11 Youth Enterprise Development Strategy SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Annual Targets Q3 Actual Achievement Reasons for Indicator/ Measure for 2014/15 Target 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 Performan ce Indicator Annual Targets for 2014/15 Quarterly Actual Reasons for Variance Corrective Action Rating Implemen ted Integrated SMMEs and Cooperative Developm ent Framewor k and Action Plan Integrated SMMEs and Cooperative Developme nt Framework and Action Plan Implemen t Integrated SMMEs and Cooperative Developm ent Framewor k 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 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 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 Indicator/ Measure Annual Targets for 2014/15 Q4 Milestones Actual Achievement Reasons for variance Corrective action Implementation of the Cooperative 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 midterm expenditure adjustments estimates during Q2 2015/16.

15 National Strategic Framework on Gender and Women Economic Empowerment Short description of the project Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth Indicator How it will be implemented Implemented the National Strategic Framework on Timeline Strategic Gender and Women Economic Empowerment Submit for approval the Draft National Framework on Gender and Women Annual Targets for 2014/15 4 th Quarter Target Actual Achievement Envisaged Economic impact submitted on to economy Empowerment Finalise and resubmit 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 Cabinet Target met not Reasons for Variance Research report not produced due to incapacity in the department Corrective Action The department has decided to change focus from framework to strategy Rating

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 Finalisation and implementation of the National Informal Business Upliftment Strategy (NIBUS) Indicator Reports produced on the pilot implementation of the NIBUS Annual Targets for 2014/15 Pilot implementation of the NIBUS and a report produced 4 th Quarter Target Phased in implementation of the action plan and report produced. Actual Achievement Preliminary pilot report on Informal Traders Upliftment Programme (ITUP) was produced and tabled at the Project Steering Committee. Reasons for Variance The implementa tion of the National Informal Business Upliftment Strategy (NIBUS) is progressin g as planned. Corrective Action N/A Rating

17 Youth Enterprise Development Strategy Strategic Outcome-Oriented Goal 3: Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth Rating Indicator Annual Targets for 2014/15 Quarterly Target Actual 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 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 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 The MYECP submission to the Minister of the DSBD for approval

18 Seda Technology Programme SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Indicator/ Measure Annual Targets for 2014/54 Q4 Target Actual Reasons for variance Corrective action BROADENING PARTICIPATION DIVISION (BDP) Implementation of the seda Technology Programme (stp) Number of jobs created through stp N/A 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 N/A

19 Seda Technology Programme SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Indicator/ Measure Annual Targets for 2014/15 Q4 Target Actual Reasons for variance Corrective action Implementation of the seda Technology Programme (stp) Number of clients assisted through technology transfer programme 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 Supported the establishment and functioning of centres of Entrepreneurship Indicator Number of MOAs to establish centres of entrepreneurship Annual Targets for 2014/15 Two (2) MOAs for approval to establish centres of entrepreneurship 4 th Quarterly Approved business plans and two (2) draft MOAs Actual Two additional Centres for Entrepreneurship have been established and launched in March 2015 Reasons for Variance N/A Corrective Action N/A Rating

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 Performan ce Indicator Annual Targets for 2014/15 Quarterly 4 Actual Reasons for Variance Corrective Action Rating Implemen ted Integrated SMMEs and Cooperative Developm ent Framewor k and Action Plan Integrated SMMEs and Cooperative Developme nt Framework and Action Plan Implemen t Integrated SMMEs and Cooperative Developm ent Framewor k 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 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 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 Short description of the project Supported 207 projects under the Co-operative Incentive Scheme (CIS) incentive How it towill the tune be of implemented R65 million. Timeline Supported 783 projects under the Black Business Supplier Development Programme (BBSDP) incentive to the tune of R288 million. Envisaged impact on economy

23 Budget Directorate Budget Expenditure Variance DSBD 2014/15 additional allocation Co-operatives development Creative Industries Export development Small Enterprises Skills for Economy Gender Unit Youth Development Initiative BBSDP CIS TOTAL excluding TP BBSDP CIS SEDA Technology programme SEDA Agency SAWEN Transfer payments TOTAL

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

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