SMD

Annual Report 2023/2024

developed and implemented successfully. The target, as per the implementation plan, was overachieved by 117 due to the Global Entrepreneurship Congress Africa Plus that was hosted by the Department in March 2024. Through these initiatives, the overall objectives of the IR Strategy were met. The Department also set itself the annual target of monitoring the Incubation Support Programme Improvement Plan. The Incubation Support Programme impact evaluation was conducted, and Improvement Plan was approved by the DSBD Executive Committee (EXCO). During the 2023/24 financial year, the Department monitored the Incubation Support Programme Improvement Plan and produced one monitoring report that was approved by EXCO. For the year under review, the Department had set itself a target of seven business infrastructure for SMMEs and Co operatives that would be refurbished or built. This resulted in five projects being completed. The Department also set a target of submitting the Business Amendment Bill to the Minister for introduction to Parliament. However, this target was not achieved because the Office of Chief State Law Attorneys (OCSLA) did not certify the Bill during the period under review. Instead, a conditional certification was received from OCSLA during Quarter 4 of 2023/24, indicating that the Department can proceed to submit the Bill to Cabinet but must first attend to and re draft a number of clauses. The Department secured a legal firm to assist in re-drafting the Bill as per OCSLA’s opinion and review. The Department plans to submit the Bill to Cabinet during the course of 2024/25 financial year. As part the DSBD’s outcome that focuses on expanding access to financial and non-financial support and implement responsive programmes to new and existing SMMEs and Co-operatives, the Department supported 18 843 start-ups youth businesses against a target of 10 000. Through the Informal and Micro Enterprise Development Programme (IMEDP), the DSBD supported 2 045 informal businesses against a target of 1 333. This was as a result of the review and refinement of the Standard Operating Procedures (SOP) and Guidelines that detail specific elements for the successful roll-out and delivery of the programme. Development Finance

The Department continues to share information about the opportunities that exist for Small, Medium and Micro Enterprises (SMMEs) and Co-operatives. The Department, together with its entities – the Small Enterprise Development Agency (Seda) and the Small Enterprise Finance Agency (sefa) , implemented 110 public engagements which were executed within district municipalities. These engagements promoted the work of the Small Business Development (SBD) portfolio, which is made up of DSBD, sefa and Seda, with the aim of providing financial and non-financial support to SMMEs and Co-operatives in an effort to increase the uptake of programmes offered by the SBD portfolio. The Department has made great strides in implementing the SMME-Focused Localisation Policy Framework in South Africa as was approved by Cabinet during the 2020/21 financial year. Through this Framework, the Department aims to replace imports and build the manufacturing capacity of SMMEs and Co-operatives. To drive localisation, the Department designed a focused Small Enterprise Manufacturing Support Programme (SEMSP) that is aimed at building and supporting SMMEs and Co-operatives participation in the manufacturing value chain. Since the SEMSP started approving transactions on 18 September 2020, R642.7 million was disbursed to 104 SMMEs, facilitating 4 488 jobs. The implementation of the SMME-Focused Localisation Policy Framework also saw a total of 285 products produced and services rendered by SMMEs and Co-operatives being introduced to market in the period under review. In addition, the Department implemented the Small Business Exporter Development Scheme (SBEDS) Guidelines that it had introduced in March 2023 for the implementation of exposing SMMEs and Co-operatives to global market opportunities, this bringing the Internal Relation (IR) Strategy to life. The purpose of the SBEDS is to compensate the costs in respect of the activities aimed for the development of South African Small Business exporters with the objective to develop new export markets, broadening the export base for local products and services and stimulate job creation whilst increasing the participation of black owned enterprises in exports. In the 2023/24 financial year, the target was to expose 200 SMMEs and Co-operatives to global market opportunities and an implementation plan was Sector and Market Development

Part A • GENERAL INFORMATION • Department of Small Business Development

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