SMD

Annual Report 2023/2024

Outcome Five: Reduced regulatory burdens for small enterprises Consulting the public on the Businesses Amendment Bill and proposed changes contributed to the overall departmental mandate and medium-term goal of reducing regulatory burdens for small enterprises. Through this legislation, the Department aims to provide a simple and enabling framework for procedures for the application of licensing of business by setting national norms and standards; and also, to repeal the Businesses Act of 1991. For the 2023/24 financial year, the Department planned to conduct public consultations to amend the Businesses Amendment Bill and the proposed inputs and amendments and be submitted to Minister for introduction to Parliament. However, the Businesses Amendment Bill was not submitted to the Minister for introduction to Parliament. This is due to the Department receiving conditional certification from OCSLA, indicating that the Department can proceed to submit the Bill to Cabinet only after attending to and re-drafting a number of clauses. Outcome Six: Increase contribution of SMMEs and Co operatives in priority sectors Following the National Review of the Integrated Strategy for the Promotion of Entrepreneurship and Small Enterprise Development, the NISED was developed, approved and proclaimed at the National Small Enterprise Support Strategy as per the National Small Enterprise Amendment Act, Act 102 of 1996. A monitoring and implementation framework, as well as an action plan for the implementation and rollout of NISED, was developed and approved. Stakeholder consultations with all provinces, except the Western Cape (was consulted during Provincial Coordinating Forum) was concluded. Consultations were also held with the Department of Cooperative Governance and Traditional Affairs (COGTA). Recommendations and inputs from stakeholder consultations were consolidated in a report covering each of the four NISED pillars (Outcomes). There recommendations were discussed with Branch heads to obtain their support. A report covering provincial support interventions per output under each of the NISED pillars were also prepared. The report will assist and guide the development of agreed sector indicators.

Given the importance of partnership in the attainment of NISED objectives, as well as stakeholder support on the implementation of recommendations to strengthening the implementation and rollout of NISED, as well as the hosting of the second Small Enterprise Summit, it was agreed to host a stakeholder workshop during 2024/25 financial year. This workshop is planned to a) Validate the updated partnership framework. b) Solicit support for the recommendations and interventions to strengthen the rollout and implementation of NISED. c) To finalise a draft- concept document for the hosting of the second Small Enterprise Summit. Outcome Seven: Expanded access to financial and non-financial support and implemented responsive programmes to new and existing SMMEs and Co operatives During the year under review, the Department was assigned a responsibility to ensure that at least 50% of funding instruments of national and provincial Development Finance Institutions (DFIs) are dedicated to SMMEs and Co-operatives through establishment of the SMMEs and Co-operatives Funding Policy. The DSBD, in line with its mandate, is in the process of finalising the first South African SMMEs and Co-operatives Funding Policy and its implementation plan. The Policy is aimed at creating an enabling environment to support formation, expansion and maintenance of existing small businesses. The SMMEs and Co-operatives Funding Policy is further aimed at: % Deepening access to finance. % Increasing the number of small enterprises that are established. % Reducing the level of concentration or monopolies in certain sectors of the economy, transforming the ownership patterns of the economy. % Addressing the financial literacy challenges amongst small businesses and Co- operatives in both formal and informal sectors by promoting financial education. % Focusing on unserved and underserved areas such as townships and rural areas. % Advocating for a reduced red-tape environment for small enterprises.

Part B • PERFORMANCE INFORMATION • Department of Small Business Development

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