Question NW1399 to the Minister of Labour

Reply:

(a)(i)(ii) Yes, Productivity South Africa does run developmental programmes for Small, Medium and Micro Enterprises (SMMEs), and Cooperatives.

(aa) The entity has developed action learning solutions to assist SMMEs and Cooperatives aimed at equipping them with the right skills, knowledge and attitudes to implement systems and procedures to improve productivity, profitability, growth and employment creation within these sectors.

The details of the program are as follows:

1. PHASE 1: Business Start-up Workshop (BSUW)

The objective of this phase is to cultivate productive behaviour and distribute productivity competencies among emerging entrepreneurs, including SMMEs and co-operatives. They are enabled to achieve the following learning outcomes:

• Demonstrate an understanding of productivity and its measurement.
• Define entrepreneurship and the characteristics of a successful entrepreneur.
• Demonstrate an understanding of business compliance.
• Identify sources of start-up capital.
• Demonstrate an understanding of the business plan guide/ template as a tool during implementation of action plans to establish a business.

    2. PHASE 2: Business Performance Improvement Workshop (BPIW)

The objective of this phase is to apply an action learning solution to assist SMMEs and co-operatives to implement systems and procedures that will result in:

• Wastage elimination
• Increased sales
• Reduced operational costs through speed and quality improvement
• Maximised profits
• An early warning system (EWS) to proactively detect distress.

1. PHASE 3: After-care and Coaching

The third phase of the programme assist delegates with practical assignments relevant to their own businesses in the form of coaching aftercare services. The practical implementation of the programme content facilitates the achievement of the following objectives:

• The assumption of entrepreneurial behaviour
• The ability to calculate basic productivity measurements
• The ability to establish and maintain critical business practices, such as cash-flow management, budgeting and inventory control
• Practical measurement of current productivity levels and setting of achievable improvement targets
• The ability to undertake practical productivity improvement projects based on set targets
• The ability to realise tangible financial savings from productivity improvement projects and improving profitability and growth.

The coaching component is applied throughout the programme as practical improvement projects are presented. Productivity advisors align activities according to the requirements of the group/cluster. The programme is concluded with a comprehensive stakeholder close-out report and entrepreneurs who complete their portfolio of evidence receive certification.

(bb) An amount of R6 277 116.00 has been budgeted for the 2016/17 financial year for this program.

(cc) A total 1 200 SMMEs and 4 300 Cooperatives will be assisted.