Question NW3384 to the Minister of Small Business Development

Reply:

I have been advised that:

a) The Department of Small Business Development (DSBD) does not have an instrument to quantify the number of established businesses in a given time. The Companies and Intellectual Property Commission (CIPC) either has to do the analysis of differentiating the registered businesses according to the size class. However, the DSBD agency, Seda, through the Bureau of Economic Research in Stellenbosch undertakes periodic statistical research on the growth of the SMME sector. The latest results show that the total number of SMMEs rose by a significant 148 000 firms (+5.9% year-on-year). This brought the level of SMMEs back to its pre-COVID level. Meanwhile, the total level of employment in the economy remains below its pre-COVID level. Relative to 2021Q3, the number of SMME owners rose by 11.6% to 2.68 million. On an annual basis, the 17% increase in formal SMMEs is encouraging – albeit that the majority of SMMEs still operate in the informal space. The statistics are collected on a quarterly basis and the current figure is for 3rd quarter of 2022/23 financial year and therefore does not capture numbers from January 2023. This period has not been released yet.

(b)(i) Despite the fact that the DSBD does not have an instrument to quantify the number of established businesses in a given time, Seda is able to report their support for small, and medium enterprises as per the table below:

Province	No. of clients Supported	R Value of Support
Eastern Cape	21	R 2 571 935
Free State	374	R 1 383 606
Gauteng	103	R 1 224 186
KwaZulu Natal	311	R 4 431 613
Limpopo	77	R 971 346
Mpumalanga	222	R 995 462
North-West	35	R 375 560
Northern Cape	176	R 1 093 195
Western Cape	243	R 3 521 397

During the same period, 1 January 2023 to 30 September 2023, sefa was able to support SMMEs as per the tables below:

Number of SMMEs Financed 1 Jan 2023 to 30 Sept 2023
Eastern Cape	10 006
Free State	606
Gauteng	1 282
KwaZulu Natal	6 654
Limpopo	11 808
Mpumalanga	6 573
Northern Cape	77
North West	4 092
Western Cape	380
Unclassified	124
Total	41 602

sefa disbursed R1.37 billion to 41 602 SMMEs as follows:

Province	Number of SMMEs Financed	Amount Disbursed
Eastern Cape	10 006	R126 366 218
Free State	606	R20 504 421
Gauteng	1 282	R447 510 567
KwaZulu Natal	6 654	R261 820 491
Limpopo	11 808	R144 003 460
Mpumalanga	6 573	R138 369 180
Northern Cape	77	R10 148 996
North West	4 092	R51 907 193
Western Cape	380	R166 101 683
Unclassified	124	R2 309 605
Total	41 602	R1 369 041 814

(ii) This support was provided through various programmes. These include but is not limited to, the Manufacturing Support Programme, Supplier Development Programme, Empretec Programme, Export Development Programme, and the Women’s Enterprise Coaching Programme.

Seda’s service also extends to its Technology Programme, Incubation Programme and the Quality and Standards Programme.