SMD

Annual Report 2023/2024

Report on the number and performance of Incubation Centres and Digital Hubs for SMME development.

To effectively position small businesses to play a meaningful role in the economy, the Department will implement the following interventions which are aimed at promoting the sustainability and growth of SMMEs and Co-operatives over the medium term: 1. National Integrated Small Enterprise Development (NISED) Strategic Framework, Co-operatives Strategy and Informal Economy: NISED Strategic Framework: Small Business Development (SBD) Portfolio, which is made up of the DSBD, sefa and Seda, to own its leadership role in the ecosystem by pushing policies that are in the interest of SMMEs and Co-operatives, which states that the Department must play coordinating, advocacy, and leadership roles. Co-operative Strategy: The Department’s CDSP is intended to support Co-operative enterprises. Through this Programme, the SBD Portfolio will seek to support 250 Co operatives financially (40) and non-financially (210). National Informal Business Strategy: Seeks to uplift informal businesses within the informal economy and render support to local chambers, local business associations, municipalities and Local Economic Development offices to deliver and facilitate access to upliftment programmes. 2. Policy and legislation to create an enabling environment for SMMEs and Co-operatives within which to operate: Implement the SMMEs and Co-operatives Funding Policy to ensure improvement in access to finance for SMMEs and Co-operatives. Red-tape Reduction Programme (RTRP): to be implemented in partnership with provinces, ensuring that the growth of SMMEs and Co-operatives is not hindered by the red tape measures that exist in the system.

The Youth Challenge Fund (YCF): a youth start-up support programme intended to stimulate the establishment and growth of youth-owned businesses, promote digital skills, grow the economy and foster job creation. The Department plans to support 10 000 start-up youth businesses financially and/or non-financially. 3. Township and Rural Revitalisation Policy Framework % Township and Rural Entrepreneurship Programme (TREP): An initiative by the DSBD and its entities – Seda and sefa. % Small Enterprise Manufacturing Support Programme (SEMSP): To promote and encourage localisation in targeted sectors, the Department, through sefa, in collaboration with the dtic, introduced the SEMSP. 4. Localisation Policy Framework and Implementation Programme on SMMEs and Co-operatives: % Building manufacturing and capacity. % Imports substitution. % Products manufactured by the SMMEs. % Business Infrastructure: An environment where small businesses will interact with the market to showcase their product or service offering with the view to transact. % During the 2024/25 financial year, the Department plans to establish five business infrastructures. 5. Create the One-stop Shop and Digital Support Toward SMMEs and Co-operatives % Implementation of the merger of Co-operatives Banks Development Agency (CBDA), Seda and sefa. % South African SME partnership on a joint SME Fund between Government and the private sector. 6. Facilitate an increase in the number of competitive small businesses with focus on township and rural economies (Report on the support provided to SMMEs with a breakdown on the type of support provided per sector, demographic profile, size, Historically Disadvantaged Individuals known as HDIs, etc.).

Monitor and report on the finalisation to the National Small Enterprise Act and the Businesses Act .

In supporting innovation, digitalisation and modernisation of the State, the SBD Portfolio will review its Digital Strategy to ensure continuous innovation within the small enterprise ecosystem.

Part A • GENERAL INFORMATION • Department of Small Business Development

17