Question NW1124 to the Minister of Small Business Development

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04 October 2016 - NW1124

Profile picture: Kruger, Mr HC

Kruger, Mr HC to ask the Minister of Small Business Development

(1)How many jobs did her (a) department and (b) the agencies reporting to her directly create in the South African economy in the (i) 2014-15 and (ii) 2015-16 financial years;

Reply:

(1) How many jobs did her (a) department and (b) the agencies reporting to her directly create in the South African economy in the (i) 2014-15 and (ii) 2015-16 financial years;

(a) Jobs supported through Department Incentives Programs

Program

Number of Jobs Supported

Total

 

2014-15

2015-16

 

Corporative Incentive Scheme ( CIS)

1359

1542

2901

Secondary Marketing Corporative Incentive Scheme ( SMCIS)

 

330

330

Black Business Supplier Development Program (BBSDP)

10425

11217

21642

 (b) Jobs supported by agencies

Program

Number of jobs supported

Total

 

2014-15

2015-16

 

SEDA Provincial Network

2099

2696

4795

Incubation Programme

Permanent jobs

2035

2331

4366

 

Temporary jobs

1283

1055

2338

Sefa ( created and sustained)

60 169

157 417

217 586

Grand Estimated Total

   

253 958

 

(2) What mechanisms are in place to ensure that a job that has been created is sustained beyond the year in which it was created;

For the department the employment figures are captured during receipt of an application and approval stage and are verified when the clients are being interviewed by the staff. This process is conducted when the unit performs site visits to verifiy the existance of the business, interviewing the clients about the interventions applied for and as well as the content of the information as captured in the application forms.

Sefa’s funding to repeat clients has gained traction in recent years, both among its direct lending and wholesale lending clients (the latter being financed through the micro finance institutions (MFIs) and retail finance institutions (RFIs). To this end, each year, sefa captures information on both new jobs as well as jobs maintained as a result of their repeat clients.

Seda provincial network uses the client journey approach whereby clients receive more than one intervention over an agreed period of support which results in a greater impact on the growth and development of a business. To track the progress and impact after completion of an intervention, Seda conducts an improvement assessment. The business incubation programme is supportive of SMMEs by design and as such SMMEs in the programme are nurtured to continue to grow and hence sustain the jobs created.

(3) What were the gross tax revenues raised and gross addition to South Africa’s Gross Domestic Product directly resulting from the creation of these jobs?

For the Seda Provincial Network, out of a sample size of 841 improvement assessments for the 2014/2015; the clients realised a combined increase in turnover of R230 888 275,00. This sample is from a population of 10,697 clients that were assisted during the financial year.

Out of a sample size of 909 improvement assessments for the 2015/2016; the clients realised a combined increase in turnover of R398 531 287, 30. This sample is from a population of 10,679 clients that were assisted during the financial year.

For the Seda Incubation Programme, for the 2015/16 financial year, the incubation programme recorded a total turn over for the 1 650 supported SMMEs of R 605 908 829

For 2014/15 FY, the SMMEs supported under incubation programme generated a total of R488 980 979.

The department and sefa does not have information pertaining to its client’s tax revenues

 

NW1258E

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