Question NW2631 to the Minister of Small Business Development
18 December 2021 - NW2631
Langa, Mr TM to ask the Minister of Small Business Development
What (a) steps have been taken to assist small business owners in the informal sector, particularly the street vendors who play an important role in the economy, in the surrounding areas of eThekwini (details furnished), (b)(i) number of businesses from the specified areas have been assisted by her department thus far and (ii) businesses have been beneficiaries of her department?
Reply:
- The Informal and Micro Enterprises Development Programme (IMEDP) is a 100% grant offered to informal and micro enterprises from the minimum grant amount of five hundred rand (R500) up to the maximum of ten thousand rand (R10 000) to assist them in improving their competitiveness and sustainability. The Informal and Micro Enterprises Development Programme was espoused from the National Informal Business Upliftment Strategy (NIBUS) that was developed in 2012 and 2013 to address the development void at the lower base of the Small, Medium and Micro Enterprise (SMME) Development strategy. The NIBUS seeks to uplift informal businesses and render support to local chambers/business associations and municipal Local Economic Development offices to deliver and facilitate access to upliftment programmes. The focus is mainly on designated groups, i.e. women, youth and people with disabilities, in townships and rural areas of South Africa.
(b)(i) During the current financial year, the Department of Small Business Development (DSBD) has assisted 83 informal business from eThekwini Municipality through the IMDEP programme. These informal businesses were mainly from Kwamashu. These IMEDP interventions assisted informal businesses with tool of trades depending on the business needs e.g, generators, baking ovens, catering equipment etc. The support provided by DSBD has managed to assist small businesses to compete with established business in terms of productivity, employment and to boost confidence to our beneficiaries.
The Small Enterprise Development Agency (Seda) assisted with non-financial support and mentorship and post disbursement to measure impact on these businesses. The Department is also work closely with the Province, District, and municipalities to ensure that there is adequate support for small business.
The Department has further developed an informal Trader support programme which is aimed at supporting informal and micro businesses following the July 2021 unrest. In this programme each entrepreneur is provided with R3000 (once off grant) to help informal traders who lost their business after the unrest. This programme is currently ongoing and has received 7 410 applications across the country, with total disbursements made to 3 356 Informal Traders worth R10.07 million.
(b)(ii) The DSBD has assisted various businesses under the Township and rural Entrepreneurship Programme (TREP). TREP is made up of various interventions / schemes:
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- Spaza Shops and General Dealer Support Scheme
- Clothing, Leather and Textile support Scheme
- Tshisanyama and Cooked Food Scheme
- Personal Care Scheme
- Bakeries and Confectioneries
- Autobody repairers and mechanics
- Butcheries Support Programme
Further support has been provided under the Small Enterprise Manufacturing Support Programme (SEMSP), which is being implemented by the DSBD’s agency – Small Enterprise Finance Agency (sefa).