Small Business Development

2014-08-07

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Reply received: December 2014

QUESTION FOR WRITTEN REPLY

2472. Ms Z Jongbloed (DA) to ask the Minister of Small Business Development:

How many work days has her department lost to (a) sick leave and (b) strike action in the (i) 2011-12, (ii) 2012-13 and (iii) 2013-14 financial years? NW3066E

REPLY:

(a) The Department was proclaimed on the 7^th July 2014. There are no sick leave records for the previous years (i) 2011-12, (ii) 2012-13 and (iii) 2013-14 financial years.

(b) The Department was proclaimed on the 7^th July 2014, there are no leave records for days lost to strike action in the (i) 2011-12, (ii) 2012-13 and (iii) 2013-14 financial years.

Reply received: December 2014

QUESTION FOR WRITTEN REPLY

2439. Ms S P Kopane (DA) to ask the Minister of Small Business Development:

(a) What was the total remuneration of (i) board members, (ii) nonexecutive directors and (iii) executive directors of each entity reporting to her since the (aa) 2011-12, (bb) 2012-13 and (cc) 2013-14 financial years and (b) how many times did each board meet in the specified financial years? NW3032E

(a) (i) (aa) The total remuneration for Seda board was R 3 332 209 IN 2011-12

(bb) The total remuneration for Seda board was R 3 616 832 in 2012-13

(cc) The total remuneration for Seda board was R 2 753 028 in 2013-14

(ii) (aa) The total remuneration for Seda non-executive directors was

R 78 550 in 2011-12

(bb) The total remuneration for non-executive directors was R 76 116

in 2012-13

(cc) The total remuneration for Seda non-executive directors was

R 76 540 in 2013-14

(iii) (aa) The total remuneration for Seda executive director was R 1 800 125 in

2011-12

(bb) The total remuneration for Seda executive director was R 2 027 325

in 2012-13

(cc) The current acting Chief Executive Officer was seconded by the

Department of Trade and Industry (the dti) in 2013/14. His salary is paid from the

dti's budget.

(b) (aa) Seda held board 4 meetings in 2011-12

(bb) Seda held board 8 meetings in 2012-13

(cc) Seda held board 4 meetings in 2013-14

Reply received: November 2014

QUESTION FOR WRITTEN REPLY

2092. Mr H C C Krüger (DA) to ask the Minister of Small Business Development:

(a) What is the name of each programme in her department that focuses on (i) small businesses and (ii) cooperatives and (b) what are the details of each specified programme? NW2560E

REPLY:

The Department will facilitate the development and growth of small businesses and co-operatives to contribute to inclusive and shared economic growth and job creation through public and private sector procurement by implementing the following programmes:

Programme 1: Public and private sector procurement

The Department will implement the public and private sector procurement programme that would lead to an increased number of SMMEs and Co-operatives accessing public and private sector procurement opportunities. This programme will benefit 70 000 SMMEs and Co-operatives preferred to access public and private sector procurement opportunities drawn from an economic profiling exercise to be carried out.

Programme 2: Sector Catalytic Projects

The Department will implement a Sector Catalytic Projects focusing on increasing the establishment of Co-operatives and Incubators. Our approach is to link 100 co-operatives to market value chains especially in the manufacturing, agro-processing, energy, clothing and textile sectors. An additional 50 Cooperatives will be established in the Renewable Energy, Manufacturing, Services, Mining, Agro-processing, Clothing, footwear, textile and leather, and Biofuels to take advantage of opportunities in these sectors. We also plan to establish 50 Incubators starting from the current financial year where co-operatives will be provided with relevant skills and procurement opportunities.

Programme 3: Informal Traders Upliftment Project

The Department will implement the Informal Traders Upliftment Project that seeks to increase the provision of adequate skills and infrastructure support to informal businesses in the country. We envisage that 3300 informal business owners will be selected for training prioritising Presidential Nodes.

Programme 4: Centres for Entrepreneurship

The Department will roll out 20 new Centres for Entrepreneurship in participating academic institutions. It is envisaged that more tertiary education students and community members living adjacent the academic institutions will benefit from the entrepreneurial training and opportunities presented by both the private and public sectors.

Programme 5: Mass Youth Enterprise Creation Programme

The Department will implement the Mass Youth Enterprise Creation Programme to iincrease the number of Youth owned enterprises. It is estimated that 3000 Youth enterprises will be launched over the next 5-years.

Programme 6: Global Exporter Passport Programme

The Department will implement the Global Exporter Passport Programme aimed at empowering small businesses and co-operatives to showcase their products in the international markets. It is envisaged that 6400 Export ready SMMEs will be developed to consider opportunities in identified international markets.

Programme 7: Micro Franchising Incentive

The Department will design and implement an incentive aimed at packaging profitable small businesses and Co-operatives in the townships and rural areas in order to make them accessible as micro franchise opportunities. It is envisaged that this programme will create 110 SMMEs and Co-operatives packaged as micro franchisors. This programme has the benefits of a multiplier effect because every business that is packaged as a micro franchise opportunity can be replicated many times across the country, which means they would be more benefits for township and rural economic development.

Programme 8: Mainstreaming of Youth Enterprises through transversal agreements

The Department will implement the mainstreaming of Youth (including women and people with disability) enterprises through transversal agreements in the following sectors: clothing and textile, agriculture, infrastructure, energy.

It is envisaged that this programme will be implemented through the signing of transversal agreements between dsbd and all state institutions to facilitate market access. This will result in the creation of 120 000 (youth, women and people with disability) jobs through the signed transversal agreements.

Programme 9: Roll-out of Red Tape Reduction guidelines championed

The Department will implement the roll out of the Red Tape Reduction as a Government-wide red tape reduction programme. Our approach is to ensure the red tape reduction guidelines are institutionalised at all state institutions. This is a major programme for the Department because we want to make sure that small businesses and Co-operatives are not hindered to grow or even start a business because of regulatory constraints.

Reply received: November 2014

QUESTION FOR WRITTEN REPLY

2083. Mr R W T Chance (DA) to ask the Minister of Small Business Development:

(a) How many copies of her department's annual report for the (i) 2012-13 and (ii) 2013-14 financial years were produced and (b)(i) at what cost were these reports produced and (ii) to whom were these reports circulated? NW2550

REPLY:

(a) The Department of Small Business Development was proclaimed in July 2014, therefore there are no Annual Reports published by the Department as yet. The Department's performance is published through the Department of Trade and Industry (the dti) Annual Report for the current financial year and the dti circulation plan is as follows: 500 copies are printed and distributed to Parliament and Parliamentary leaders, National and Provincial departments, Department of Treasury, and the Council of Trade and Industry Institutions (COTII).

(b) (i) The cost of producing the Annual Reports was R309 655, and the cost was incurred through the budget of the Department of Trade and Industry.

(ii) The Annual Reports are distributed to Parliament and Parliamentary leaders, National and Provincial departments, Department of Treasury, and the Council of Trade and Industry Institutions (COTII).

Reply received: December 2014

QUESTION FOR WRITTEN REPLY

2033. Ms S J Nkomo (IFP) to ask the Minister of Small Business Development:

(1) Whether companies that are run by woman are monitored to prevent failures in executing all aspects of the functioning of the said companies, from the stage of the business plan up to growing them from small to medium businesses and/or even large-scale businesses; if not, why not; if so, in what way is this being done;

(2) How are these businesses being assisted in opening up markets for themselves with the country and internationally? NW2500E

REPLY:

1. The Small Enterprise Development Agency (Seda) utilises the client-journey model to assist its clients, including women-owned enterprises. The model looks at enterprise development as a process that is made up of a number of needs based interventions with a clearly identified outcome; which could be access to new markets, business growth, and franchising. A Seda practitioner assesses the client business every six months to monitor business progress and to also identify emerging challenges and come up with appropriate interventions.

2. Access to local and export markets is one of the six high impact programmes that Seda has prioritised as key for small enterprise development. Access to local markets is usually informed by industry market research in which the small enterprises operate, identification of key clients and facilitation of relationships between the small enterprise and potential client. In addition to that, Seda has formalised relationships with a number of private sector companies (especially in the retail sector) and state-owned entities to assist small businesses with market access.

Regarding access to international markets is done under the broader National Export Strategy. Seda focuses on export development, getting small enterprises to a stage of export readiness, through product quality training, industry awareness, and marketing; the small businesses are then linked up with complimentary programmes such as trade missions and trade fairs to assist small businesses to showcase their goods and services and also access international markets.

The Department has also re-established a permanent showroom at the Americas Mart in Atlanta, Georgia, to promote exports for life-style products which include ceramics, linen, cushions and other home-accents produced in South Africa by small enterprises and cooperatives. To-date 30 crafters from across the country are displaying products at the Hub.

One hundred and twenty-eight (128) women (fully and partially) owned enterprises have been supported to participate in international trade platforms through the Export Marketing Incentive Assistance Scheme, while one hundred and four (104) small businesses were supported through the Sector Specific Assistance Scheme.

The Department envisage intensifying access to markets through implementing the Government-wide implementation of set-asides programme which will enable government departments – national, provincial and local government departments – to procure goods and services from small businesses.

Reply received: November 2014

QUESTION FOR WRITTEN REPLY

Q 2032. Ms S J Nkomo (IFP) to ask the Minister of Small Business Development:

(1) Whether, with reference to Small Enterprise Finance Agency funds on qualifying business ventures within the small, medium and micro enterprises (SMMEs) sector, road shows have been rolled out to inform the public of these funds; if not, why not; if so; (a) in which provinces, (b) when were these implemented and (c) what is the content being distributed;

(2) How many businesses that are run by women in retailing, manufacturing, construction, mining and green industries were brought on board? NW2499E

REPLY

1 (a) Yes, the Road shows have been rolled out in Eastern Cape, Western Cape, Northern Cape, Kwazulu-Natal, Limpopo, Mpumalanga, North West, Free State, and Gauteng

(b) The Roadshows were conducted over the last two years as follows:

Province	2013/14	2014/15
Western Cape	30^th & 31th May 2013	05^th March 07^th & 26^th April 2014
Northern Cape	14^th &15^th August 2013	07^th May 2014
Limpopo	19^th June 2013	28^th June 2014
Mpumalanga	17^th & 18^th October 2013	18^th July 2014
KZN	28^th June,21th & 22^nd November 2014	27^th August 2014
Eastern Cape	28^th& 29^th August, 18^th &19^th September 2013	09^th October 2014
North West	30^th July 2013, 11^th March 2014	30^th October 2014
Free State	13^th ,14^th & 15^th November 2013
Gauteng	12^th& 19 April , 31 May, 12^th June 2013 & 07^th March 2014

1. Brochures

2. Lead Questionnaires (The questionnaire helps sefa to understand needs of the market and to make follow ups with entrepreneurs who need assistance).

3. Do presentations at the Road Shows

4. Have a question and answer sessions

The purpose of the Roadshows is to inform the public and SMMEs about availability of financial support. sefa continuously engages with entrepreneurs through Business Chambers and Municipalities LEDs in all provinces to ensure that people know about the agency and how to access finance. The key issues that are normally discussed are:

1. Access to funding

2. Application Criteria

3. Turnaround Time

4. Clarity on sefa financial products

2. The following table tabulates Rand values and number of enterprises that are women-owned that have thus far been funded by sefa from the 01^st April 2014 to 30^th October 2014.

Economic Sector	Total Loan Amount	Number of Clients
Retail	34 066 247	3 928
Manufacturing	37 159 596	1 143
Construction	38 967 488	93
Mining	155 759	1
Green Economy	56 638	1
Total	110 405 729	5 166

Reply received: November 2014

QUESTION FOR WRITTEN REPLY

2017. Mr J H Steenhuisen (DA) to ask the Minister of Small Business Development:[ê231] [Question submitted for oral reply now placed for written reply because in excess of quota [Rule 108(8)]]

With reference to her reply to question 35 on 1 August 2014, does she intend to prioritise transversal agreements with the Department of Labour on potential exemptions for small businesses on certain aspects of the Labour Relations Amendment Act, Act 6 of 2014? NW2407E

REPLY:

The Department will consider engagements with the Department of Labour in relation to Policy and Legislation within its purview. This will include Labour Relations Act, minimum wage as well as other labour-related matters.

Reply received: November 2014

QUESTION FOR WRITTEN REPLY

2016. Mr R W T Chance (DA) to ask the Minister of Small Business Development:[ê229] [Question submitted for oral reply now placed for written reply because in excess of quota [Rule 108(8)]]

What is her position with regard to the migration of the Small Enterprise Finance Agency and the Incubator Support Programme from the Department of Economic Development and the Department of Trade and Industry to her department? NW2405E

REPLY:

There are on-going executive discussions between the departments of Small Business Development, Economic Development and Trade and Industry regarding the migration of certain functions including the Small Enterprise Finance Agency (Sefa) and the Incubation Support Programme (ISP).

An announcement will be made once these discussions have been concluded.

Reply received: November 2014

QUESTION FOR WRITTEN REPLY

Q 1940. Mr D W Macpherson (DA) to ask the Minister of Small Business Development:

With regard to the R822 million spent on various loan funding products to support small businesses in the 2013-14 financial year, (a) what measurement tools are in place to actually measure the success rate of these investments, (b) which provinces benefitted mostly, (c) how accessible is the funding to new entrepreneurs and (d) what qualification criteria are used? NW2323E

REPLY:

The Small Enterprise Finance Agency's mandate is to foster the establishment, survival and growth of small, medium and micro enterprises. sefa's vision is to be the leading catalyst for the development of sustainable survivalist, micro, small and medium enterprises through the provision of business development finance. sefa delivers wholesale and direct lending facilities and provides credit guarantees to small, medium and micro enterprises.

(a) sefa has a Post Investment Unit that monitors the performance of funded SMMEs. This unit ensures that small businesses are given the necessary business support after receiving loan funding. The Post Investment Unit also supports businesses that are in distress by ensuring that they are not closed prematurely.

In addition to the above-mentioned, there is a post loan mentorship support that is provided by independent service providers on a needs basis. The partnership that sefa has with the South African Institute of Chartered Accounts (SAICA) is also one of the measures that support small businesses post funding.

(b) The 5 top provinces that benefited mostly are:

(i) Gauteng R173 475 372

(ii) Western Cape R129 920 501

(iii) Limpopo R126 463 601

(iv) Mpumalanga R109 631 391

(v) Kwazulu-Natal R78 055 129

(c) sefa funding is easily accessible through visiting the sefa's national offices and regional offices located in all the nine provinces. In addition to that, sefa has established co-location centres with seda, Provincial Development Corporations and business chambers/associations to reach communities in rural areas. To the entrepreneurs who have access to the internet, applications for funding can be completed online

(d) To qualify for sefa's loan, applicants must meet the following criteria:

· South African citizens and permanent residents

· Business must be viable and be able to pay sefa.

· Legally registered including sole traders with fixed physical addresses

· Within the required contractual capacity

· Registered and operating in South Africa

· Comply with the generally accepted corporate governance practices appropriate to the client's legal status

· Have a written proposal or business plan that meets the requirements of sefa's loan application criteria

· Demonstrate the character and ability to repay the loan

· Have provided personal and/or credit references (if available)

· Have the majority shareholder as the owner manager of the business

· Where available, can provide relevant securities/ collateral

· Have a valid tax clearance certificate

· Willingness to take a risk

Reply received: October 2014

QUESTION 1842 FOR WRITTEN REPLY

1842. Mr R W T Chance (DA) to ask the Minister of Small Business Development:

Did (a) she or (b) representatives from her department (i) meet and/or (ii) have discussions with the Centre for Development and Enterprise (CDE); if so, (aa) what was the nature of those discussions and (bb) what impact will the CDE's research have on her department's policy framework NW2216E

REPLY:

(a) Neither the Minister nor the representatives have met or held discussions with the Centre for the Development Enterprise (CDE).

(aa) No discussions were held with CDE.

(bb) The Minister and/or representatives will consider discussions with the Centre for Development Enterprise, after which the CDE's research will be considered.

Reply received: October 2014

QUESTION 1841 FOR WRITTEN REPLY

1841. Mr R W T Chance (DA) to ask the Minister of Small Business Development:

(a) What will the impact of the proposed national minimum wage be on small business development, (b) will there be concessions for small businesses and (c) what will the concession be? NW2215E

REPLY: The matters raised by Honourable Member in relation to the proposed minimum wage will be addressed once the modalities and level of the proposed national minimum wage is finalised.

Reply received: October 2014

QUESTION 1791 FOR WRITTEN REPLY

1791. Mr H C C Krüger (DA) to ask the Minister of Small Business Development:

With reference to her reply to question 981 on 4 September 2014, how many jobs were created by the 17 businesses that received financial assistance from the Mpumalanga provincial office of the Small Enterprise Financial Agency (SEFA) in the (a) 2012 – 13 and (b) 2013 – 14 financial years? NW2163E

REPLY:

(a) In the 2012 – 13 financial period: 94 new jobs were created and 16 were maintained

(b) In the 2013 – 14 financial period: 253 new jobs were created and 49 were maintained

Reply received: October 2014

QUESTION 1663 FOR WRITTEN REPLY

1663. Mr H C C Krüger (DA) to ask the Minister of Small Business Development:

(1) Whether her department contributes financially to develop (a) small businesses and (b) co-operatives; if so, what total amount has been spent by her department since its establishment?

(2) what net amount did (a) small businesses and (b) co-operatives receive from her department since its establishment?

(3) how many jobs have been created as a result of financial contributions from her department to (a) small businesses and (b) co-operatives? NW2024E

REPLY:

(1) (a) The National budget amount allocated for small business through Seda for the 2014/15 financial year was R498.3 million, and R129.4 million for the Seda Technology Programme. The total transfer payment to Seda to date is R298.6 million and R88.0 million for the Seda Technology Programme. (b) 129 co-operatives were approved for funding to the total amount of R35.3 million.

(2) (a) To date Seda has received transfer payments to the amount of R298.6 million for small business development programmes (b) The Co-operatives Incentive Scheme has been allocated a total budget of R100 million for the 2014/2015 financial year and already R35.3 million has been disbursed to 129 Cooperatives.

(3) (a) The Seda Technology Programme (STP) created 344 jobs during Quarter 1 of the 2014/15 financial year. (b) For co-operatives, 852 jobs were created as at end of August 2014.

Reply received: October 2014

QUESTION 1657 FOR WRITTEN REPLY

1657. Mr H C C Krüger (DA) to ask the Minister of Small Business Development:

(1) (a) What is the total number of registered (i) small businesses and (ii) co-operatives, (b) how many of these are still in business and (c) what are the totals per category of small businesses and co-operatives that are still in business;

(2) how many jobs have been created by the (a) small businesses and (b) co-operatives that are still in business? NW2018E

REPLY:

(1) (a) The total number of registered (i) small businesses is 722 068 and (ii)

co-operatives is 112 768.

(a) The same number as mentioned above for small businesses and co-operatives is still in business according to the Companies and Intellectual Property Commission (CIPC) records.

(b) Small businesses and Co-operatives are not registered per category by the CIPC and therefore the information per category is not available.

(2) ) To date, 12 723 jobs were created by the Seda Technology Programme (STP), and 7544 jobs were created as a result of the Cooperatives Incentive Scheme intervention.

Reply received: October 2014

QUESTION 1656 FOR WRITTEN REPLY

1656. Mr H C C Krüger (DA) to ask the Minister of Small Business Development:

What legislation has she found has had a direct impact on (a) small businesses and (b) co-operatives? NW2017E

REPLY: A preliminary assessment of the legislative and regulatory environment governing SMMEs and Cooperatives conducted by the Department has revealed that legislation listed below has a direct impact on small businesses and co-operatives. However, the list below is not exhaustive.

· The White Paper on National Strategy for the Development and Promotion of Small Business in South Africa, March 1995

· National Small Enterprise Act, 102 of 1996 (as amended by the National Small Business Amendment Act, Act 26 of 2003 and the National Small Business Amendment Act, Act 29 of 2004)

· The Co-operatives Act, No. 14 of 2005 (as amended by the Amendment Cooperatives Act No. 6 of 2013)

· Companies Act, 2008 (Act No.71 of 2008)

· Broad-Based Black Economic Empowerment Act, 2013 (Act No.53 of 2003)

· Preferential Procurement Policy Framework Act no. 5 OF 2000

· National Liquor Act, 59 of 2003

· National Income Tax Act 58 of 1962

· Value-Added Tax Act, 1991 (Act No. 89 of 1991)

· Basic Conditions of Employment Act, 75 of 1997,

· Labour Relations Act, 66 of 1995

· Intellectual Property Laws Amendment Act 2013

· Manufacturing Development Act 1993 (Act No. 187 of 1993)

· Counterfeit Goods Act, 1997 (Act No. 37 of 1997)

· National Credit Act, 2005 (Act No. 34 of 2005)

· National Empowerment Fund Act, 1998 (Act No. 105 of 1998)

· Patents Act, 1978 (Act No. 57 of 1978)

· Protection of Business Act, 1978 (Act No. 99 of 1978)

· Standards Act, 2008 (Act No. 8 of 2008)

· Trade Marks Act, 1993 (Act No. 194 of 1993)

Reply received: October 2014

Question Number: 1647

Due Date: 07 October 2014

1647. Mr R W T Chance (DA) to ask the Minister of Small Business Development:

(a) Which posts in her department are vacant in the (i) highly skilled, (ii) highly skilled supervision and (iii) senior and top management levels and (b) in each case, what has been the duration of the vacancy? NW2008E

REPLY:

(a) The department has submitted a proposed organisational structure to the Department of Public Service and Administration (DPSA) for approval. We are, therefore, awaiting the outcome of the submission to determine which posts are vacant and at what levels. At the present moment, there are no vacant posts in the department until such time the above-mentioned determination is made.

Reply received: October 2014

QUESTION 1532 FOR WRITTEN REPLY

1532. Mr R W T Chance (DA) to ask the Minister of Small Business Development:

Will she examine the rationale for establishing entities similar to Ithala Development Finance Corporation in all the provinces? NW1902E

Response:

The key rationale for the Department of Small Business Development (the dsbd) is to effectively intervene in the economy by creating an enabling environment that will lead to the development and growth of small enterprises and cooperatives. This will be achieved through addressing market failures and enhancing support measures geared for the growth and development of the cooperatives and small enterprises.

As a newly established department, the Department is currently examining various development delivery support models with the view of selecting the most efficient and appropriate model capable of achieving the maximum social and financial return on investment for the country pertaining to the area of small business and cooperative enterprise development.

The efficacy of the Ithala Development Finance Corporation model will be examined by the Department as part of the many delivery support models that the Department is currently examining. Although, no model has been endorsed yet, the Department is hard at work to quickly resolve and provide clear leadership direction on this important matter to the country.

Reply received: November 2014

QUESTION FOR WRITTEN REPLY

1530. Mr R W T Chance (DA) to ask the Minister of Small Business Development:

Will the Small Enterprise Finance Agency (SEFA) be moving from the Department of Economic Development to her department; if not, why not; if so, when?

Response:

There are on-going discussions between the Ministries of Small Business Development and Economic Development. Upon concluding the discussions, an official announcement will be made.

Reply received: December 2014

QUESTION FOR WRITTEN REPLY:

1199. Mr R W T Chance (DA) to ask the Minister of Small Business Development:

(1) Whether (a) she and (b) the Deputy Minister has each employed a ministerial special advisor; if so,

(2) (a) what is the name of the special advisor, (b) when was the advisor appointed, (c) what are the duties of the advisor, (d) at what post level was the appointment made, (e) what is the salary level of the advisor, (f) what is the duration of the employment contract entered into with the advisor and (g) why was it necessary to appoint the advisor? NW1437E

RESPONSE:

1. (a) Yes, Minister Lindiwe Zulu has employed a Ministerial Special Advisor.

(b) Deputy Minister Elizabeth Thabethe has not employed a Ministerial Special Advisor.

2. (a) The name of the Special Advisor is Mr Thembani Mabandla.

(b) The Special Advisor was appointed on 01 July 2014.

(c) In addition, the Advisor provides advice on matters related to small business and enterprise development, broader issues regarding policy direction in the South African context, as well as current academic debates and discussions that would enrich and inform the development of small business development and cooperatives.

(d) The advisor is appointed at Level II, notch 13.

(e) The salary level of the advisor is R1.181. 469

(f) The duration of the employment contract of the Advisor is linked to the term of the Minister.

(g) The appointment of a special advisor was considered to provide guidance to the Minister on matters relating to small and medium enterprises as well as cooperatives in line with the South Africa's policy direction and the promotion of the objectives of the Department.

Reply received: October 2014

Question 1070

Mr D W Macpherson (DA) to ask the Minister of Small Business Development:

1. Whether she has any plans to create incubators for the business within the film production industry

Whether her department has done any assessment of the job creation potential of the film production industry; if not, (a) why not and (b) will this be done in the future; if so, how many jobs is the film industry capable of creating? NW1237E

Question 1070 (1) Answer

1. The Department plans to create Creative Industries Incubators that would service all the creative industries sub-sectors including film, music, video-game development, animation, and publishing amongst others. The Incubator Programme for the Creative Industries will focus on the production phase of the film value chain, script and concept development as well as film distribution and exhibition.

Question 1070 (2) Answer

2. (a) An assessment of the job creation potential of the film production industry has been done

and comparative assessments would be done in the future against the existing baselines studies that have been done.

2 (b)The study titled "Economic Contribution of Copyright Based Industries in South Africa"

commissioned by the World Intellectual Property Organisation (WIPO) and the Department of Trade and Industry shows that the Creative Industries are responsible for 4.11% of the total economy in terms of value-added and contributing to 4.08% of employment.

The film and television sector employs up to 30 899 people which is 7% of the Creative Industries contribution to employment. The study also shows the number of employees in Creative Industries has increased by 21% during the last decade.

The potential for growth in the film and television industry will be further increased by the shift from analogue to digital terrestrial broadcasting which will create a much greater demand for audiovisual content thus stimulating growth in production opportunities.

Reply received: September 2014

QUESTION 1055

Mr P Atkinson (DA) to ask the Minister of Small Business Development

WRITTEN REPLY QUESTION 1055

Whether the Deputy Minister undertook official international travel in July 2014; if so, (a) why did she undertake this travel, (b) who travelled with her, (c) to which places did she travel and (d) what was the total cost of such travel? NW1211E

REPLY

Ms Elizabeth Thabethe, Deputy Minister: Department of Small Enterprise Development undertook official international travel in July 2014:

(a) The purpose was to lead delegations of SMME's to the Atlanta lifestyle hub exhibition, and the Santa Fe Folk Art Market. As part of its mandate to support SMME's and Co-operatives, the Department of Small Business Development supports exports of domestic products by emerging entrepreneurs and Deputy Minister has been leading these efforts since her days in the Department of Trade and Industry.

(b) During this visit the Deputy Minister travelled with two of her office staff members and her official companion in line with the Ministerial Handbook. The Deputy Minister was also joined by 4 officials from the department i.e. the Acting DDG of the Incentives Development and Administration Division (IDIAD), the Chief Director of Gender and Women Empowerment, the Director for Creative Industries and a Director for Marketing. The dti entities were represented by the President and Acting-CEO of SAWEN and the Executive Manager and Senior Manager from Seda. The delegation also included 14 women entrepreneurs from the provinces, whose products have been exhibited and sold in the Atlanta Showroom and at Santa Fe Arts Festival.

(c) The official international travel was to Atlanta, Georgia and Santa Fe, New Mexico in the USA.

(d) What was the total cost of such travel? The cost described below

Delegation	All inclusive costs
Deputy Minister office	R 379 414.00
Departmental officials	R 456 626.00
SAWEN officials	R 191 852 .00
Seda officials	R 188 490.09
Crafters	R 466 732.07
All inclusive costs	R 1 683 114.16

The expenses for 10 of the crafters were paid from the South African life style projects through Seda whilst the other 5 were supported through the Sector Specific Assistance Scheme (SSAS) which is costs sharing grant and this provided for the following: Travel and accommodation, transport of samples and marketing materials and exhibition costs.

Reply received: August 2014

QUESTION 1004

1004. Mr R W T Chance (DA) to ask the Minister of Small Business Development:

Whether her department plans to take part in the Global Entrepreneurship Week during 17 to 23 November 2014; if not, why not; if so, what is the nature of her department's plans in this regard? NW1157E

REPLY:

The Department of Small Business Development will consider taking part in the upcoming Global Entrepreneurship Week based on the nature of activities planned and the role envisaged for the department. Our approach is that entrepreneurship is promoted by various stakeholders to the citizens of the country on a continuous basis.

The Department is aware that various institutions organise a series of events during this focussed Week and our role is to participate in these events whether at ministerial or official levels in support of SMME's and Cooperatives development.

Reply received: August 2014

QUESTION 981

981. Mr S J F Marais (DA) to ask the Minister of Small Business Development:

(1) Is the Small Enterprise Finance Agency (SEFA) active in the Mpumalanga Province; if so, what are the addresses of the SEFA offices serving the area;

(2) in the (a) 2012-13 and (b) 2013-14 financial years, (i) how many applications did the specified offices receive, (ii) how many of these applications were approved, (iii) what is the rand value of the approved applications and (iv) how many of the approved applicants are still in business? NW1134E

REPLY

(1) The Small Enterprise Finance Agency (sefa) is active in the Mpumalanga province. It operates at the following address:

Unit U5,
Nelcity Centre,
Cnr Paul Kruger & Samora Machel Drive,
Nelspruit,
1200

To ensure that sefa covers the entire province without investing funds in establishing its own offices it (sefa) has signed Memorandum of Understanding (MOU) with both the Small Enterprise Development Agency (Seda) and Mpumalanga Economic Development Agency (MEGA). The primary purpose of these MOUs is for sefa to use the branch offices of Seda and MEGA as referral offices. This is in line with the establishment of the co-location points the intention being to enhance accessibility of support services relating to small business development.

2) During the first year of sefa's operation, few applications were approved as the focus was mainly in the development of the lending platform (systems, processes and procedures) prior to scaling.

Financial Year 2012-13
Applications Received	Applications Approved	Approvals	No. of businesses still operational
46	5	R13 472 265	4

Financial Year 2013-14
Applications Received	Applications Approved	Approvals	No. of businesses still operational
98	12	R16 706 926	12

Reply received: August 2014

QUESTION916
916. Ms D Carter (Cope) to ask the Minister of Small Business Development:
Whether her department has begun to create plans to enable entrepreneurs in the townships to develop a commercial hub and craft centres similar to those in Ouagadougou, Burkina Faso; if not, why not; if so, what are the relevant details?

REPLY:

The mandate of my department focuses on enhanced support to Small Business and Cooperatives development through implementation of entrepeneur programmes for women and youth in order to contribute to job creation and economic growth in the country. As part of this mandate the Department is aware of a need to support township and rural enterprises through a number of interventions including a commercial hub, craft centre or industrial parks. The following initiatives have been driven under the Department of Trade and Industry and some of them have been migrated to my department:

1. The expansion of the Mitchells Plain Hub (Western Cape)

There is a huge demand for space at this property and many business owners have been turned away due to limited available rental space. The Hive accommodates 50 businesses which occupy 72 units at the site.

There are plans to identify pockets of land owned by PRASA, which would be utilised to expand the site. A concept document and a business proposal is currently being developed for the identified PRASA land.

The expansion of the Hive will help business owners, including auto-mechanics, furniture manufacturers and engineering firms to find space to work from.

2. The Shangoni Gate Feasibility study and post feasibility intervention projects: The Craft Hub (Limpopo)

There is a plan to develop a brand new tourism destination and economic development hub adjacent three villages. The total population of the three key villages of Miningisi, Muyexe and Altein is approximately 13 400 people. Unemployment is high and education, as well as income levels is low.

My department is involved in this plan together with the Limpopo government, SanPARKS and traditional leaderships. There are challenges to this plan ranging from land ownership and infrastructure to social cohesion. However, the Shangoni Gate project can make an important contribution towards local economic development. The components of the Hub include a petrol station, convenience shop, curios and crafts, tourism information office, museum and interpretation centre, meeting and training facilities, info shops, community owned chalets and restaurant, auditorium and events lapa, adventure centre and base for guided tours and trails, general dealer and liquor shop.

3. Industrial Parks jointly with the dti

My Department will assess work carried out by the Department of Trade and Industry (the dti) in relation to the Industrial Park Framework, given that this has benefits for small businesses. Out of this work, we will make a determination of how the current industrial parks assist small businesses to become sustainable and whether there is a need for additional interventions or not. The purpose of the dti Framework is to revitalise the current Industrial Parks in the townships, rural areas as well as former homelands. My Department will compliment this Framework through the support we provide to Local Municipalities under our Local Economic Development programme.

The industrial parks will be established to compliment the Special Economic Zones (SEZs) driven by the dti. There is recognition that SEZs are an intervention that requires increased resources and therefore not every town will have one. However, a programme such as industrial park, a commercial hub or a craft centre can be established within a township or rural area, given the capital expenditure required to accommodate small scale businesses.

4. Shared Economic Infrastructure Facility

The National Informal Business Upliftment Strategy (NIBUS) was launched in March 2014 by the Department of Trade and Industry. The purpose of this strategy is to uplift informal businesses and render support to local business chambers and Municipal Local Economic Development offices to deliver and facilitate access to upfilftment programmes. One of the instruments of the strategy is to facilitate access to infrastructure by informal businesses through partnering with Local Municipalities and the private sector. This instrument is designed to cover the funding of a common Infrastructure that is either new, upgrading or maintenance and shared by a certain number of informal businesses, SMMEs and cooperatives in townships, rural areas and depressed areas in towns and cities. This could include trading markets, local industrial parks, craft centres and commercial hubs. The following is a list of pilot areas:

· Eastern Cape: Fort Jackson Infrastructure development project, Mdantsane Small Business Industrial Site

· Mpumalanga: Agriculture (Leather Fern growers) Infrastructure upgrade for traders (Libombo Border Post)

· Gauteng: Kwa Mai Mai Market Infrastructure upgrade, Johannesburg

· Western Cape: Drakenstein Informal Trading Infrastructure Development

· Limpopo: Makola Market – Makhado and Small Business Industrial Park, Modimolle

5. Integrated Craft Hubs Framework

The Department of Trade and Industry developed an Integrated Craft Hubs Framework in 2007 to support craft producers through business development, networking, mentoring and general craft economic activity. Within this context the Department of Small Business Development has received requests to support craft producers to access markets and other technical support. The team working on creative industries is implementing the revised Craft Hubs Framework as well as the Craft Funding Guidelines, which would enable the Provincial Development Agencies to access the funding to support craft producers in their respective areas.

Reply received: August 2014

QUESTION 873

873. Mr H C C Krüger (DA) to ask the Minister of Small Business Development:
If she can outline a list of red tape that was identified by her department as having a negative impact on small business development; if not, when will such a list be (a) compiled and (b) released publicly? NW962E

REPLY:

Background

The mandate of the Department of Small Business Development includes the utulisation of support mechanisms such as easing the regulatory environment to enhance Small Business and Cooperatives development. Within this context the Department has embarked on a Programme to address local government regulatory constraints aimed at lowering barriers to entry and stimulate access to business opportunities by small enterprises. The Programme highlights wide-ranging negative economic impacts of municipal red tape on the development of SMMEs including root causes. These are projected on the guidelines which serve as a practical implementation framework to reducing municipal red tape for the enhancement of SMMEs.

The guidelines are intended to assist local government, small business practitioners and small business themselves to further improve the small business environment and also serve as a practical implementation tool and means for local business environment monitoring mechanism. The following red tape issues have been identified from the guidelines as affecting SMMEs at a municipal level:

a. Lengthy and inefficient supply chain management processes (which ultimately affects the 30-day payment system to SMMEs);

b. Lack of knowledge and the difficulties in accessing small business funding and the need for support in utilising funding effectively;

c. Poor communication by the local municipalities of relevant business information to businesses;

d. Limited awareness of municipal tender information and too few qualified local service providers access tenders;

e. Poor enforcement of informal trading by-laws;

f. Lack of approved municipal investment incentives policy and marketing plan;

g. Land not being accessible for development;

h. Challenges with the Construction Industry Development Board rating system requiring a level 7-8 accreditation where local providers can only reach level 3-4.

As a Department we are working with Provincial Departments of Economic Development; Enterprise Development Agencies and CoGTA to implement the guidelines.

Reply received: August 2014

QUESTION 872

872. Mr H C C Krüger (DA) to ask the Minister of Small Business Development:
Whether she undertook official international travel in July 2014; if so, (a) why did she
undertake this travel, (b) who travelled with her, (c) to which places did she travel and (d) what was the total cost of such travel? NW961E

REPLY:

The Minister of Small Business Development did not undertake any international travel in July 2014.

Reply received: September 2014

Question Numbers: 871

Due Date: 15 August 2014

871. Mr R W T Chance (DA) to ask the Minister of Small Business Development:
(1) (a) How many businesses have been supported by the Small Enterprise Development Agency (SEDA) from 1 April 2014 up to the latest specified date for which information is available, (b) how many new permanent jobs have been created as a result of this support, (c) what is the average turnover of the supported businesses and (d) what is the average number of years these businesses have been in operation? NW960E

REPLY:

(1) (a) SEDA has assisted 2,400 clients between April and June 2014. The SEDA Technology Programme has provided assistance to 2,545 clients during the same period. The total number of clients assisted is 4,945.

(b) Based on the analysis of clients assessed for business improvement during the April to June 2014, the total number of people employed in businesses supported by SEDA was 1,479 prior to SEDA's interventions (these clients were assisted during the October to December 2013 quarter). In the six months period, January to June 2014, the number of people employed in these businesses had increased to 2,029. These businesses have employed an additional 550 people after SEDA's interventions from a baseline of 1,479. It should be noted that the data on number of jobs for the period 1 April to 30 June 2014 will only be collected after six months as per SEDA's systems and operational plans.

Under the SEDA Technology Programme, the figures to date on new permanent jobs are 344 for the April to June 2014 reporting period.

(c) Based on the analysis of clients assessed for business improvement during the April to June 2014, the average turnover of businesses supported by SEDA was R812,916 prior to SEDA's interventions (these clients were assisted during the October to December 2013 quarter). In the six months period, January to June 2014, the average turnover of these businesses had increased to R1,114,930. SEDA's intervention resulted in these businesses yielding an additional turnover of just over R300,000 from their baseline of R812,916. The data on average turnover for the April to June 2014 period will only be collected after six months as per the SEDA systems and operational plans.

(d) On average the businesses that SEDA currently supports have been in existence for two to three years.

(2) (a) How many businesses are supported by the Small Enterprise Finance Agency
(SEFA) from 1 April 2014 up to the latest specified date for which information is
available, (b) how many new permanent jobs have been created as a result of this
support, (c) what is the average amount of financing in rand provided to these
businesses, (d) what is the average number of years that these businesses have been in operation, (e) what are the repayment terms offered to these businesses and (f) what is the average turnover of the supported businesses? NW960E

REPLY: SEFA has supported the businesses as outlined below:

(2) (a) How many businesses are supported by the sefa from April to June 2014?

Loan Programme	No of SMMEs supported
Credit Guarantee	3
Direct Lending Programme	211

(b) How many new permanent jobs have been created as a result of this support?

Loan Programme	No of Jobs facilitates
Credit Guarantee	3
Direct Lending Programme	1589

Loan Programme	Amount Disbursed to SMMEs	Average Disbursement
Credit Guarantee	R611 600	R203 866
Direct Lending Programme	R98 million	R465 000

(d) What is the average number of years that these businesses have been in operation?

The businesses supported through the two loan programmes ranges from start-up businesses to businesses that has been in operation for ± 3 years.

(e) What are the repayment terms offered to these businesses?

Direct Lending Repayment Terms:

· Working Capital Facilities -The business has a maximum of 12 months to pay up a working capital facility.

· Asset Finance - The loan duration is up to a maximum of 60 months or for the economic life of the asset (whichever comes first).

· Term Loans - The term loan repayment period is between 1 and 5 years.

· Revolving Loan - The revolving loan repayment term is a maximum of 12 months (or dependant on the duration of the contract).

· Bridging Loan – The business has a maximum of up to 12 months to repay a bridging loan.

(f) What is the average turnover of the supported businesses?

The information is not available as it is not tracked by the system.

Reply received: October 2014

QUESTION 577 FOR WRITTEN REPLY

577. Mr R W T Chance (DA) to ask the Minister of Small Business Development:

Would she please clarify her department's position on the (a) formation and (b) financing of small, medium and micro enterprise (SMME) incubator hubs by (i) local, (ii) provincial and (iii) national government so as to avoid duplication and ensure the optimal use of appropriately skilled personnel at these hubs? NW660E

a) Formation

Prior to formation an assessment will be done on established and functional incubator across the country, both private and public sector initiatives, to establish:

· Incubator types (technology, business)

· Sectoral focus (ICT, service)

· Focus areas (women, youth, SMME, Co-operatives)

· Location (urban, rural, peri urban)

· Business stage (startups, existing, growth orientated)

· Models ( entry and exit methodologies)

· Strategic partnerships

· Funding mechanisms

· Funding and incentives available (government, private sector and public private partnerships)

· Sustainability (success based approach)

· Innovation

The results from this assessment will provide a clear overview on the status of incubators in South Africa and the strategic location of new incubators to avoid duplication.

Feasibility studies for new incubators will be conducted to determine whether proposed incubators have a concrete market, a strong financial base and definite stakeholder support.

b) Funding

i) Local

ii) Provincial

iii) National

The department will establish a national incubation programme, which will aim to draw in the financial and non-financial support of various stakeholders in the incubation space. The department's strategy includes placing great emphasis on securing of partnerships with support agencies, both private and public sector to ensure geographic spread of business development support, i.e., ensuring that support is accessible to small businesses across the country and relevant to start-ups, existing and growth-oriented businesses in the form of these business incubators.

With regard to personnel employed in incubators, the department is in the process of establishing a partnership agreement with the Swiss State Secretariat for Economic Affairs to implement a programme to improve the quality of service provision to small businesses by identifying and addressing challenges faced by both practioners and small business service providers. This will entail assessing skills, experise and competency gaps and will be addressed by the implementation of a continuous professional development programme. The overall aim is to professionalise business advisory services in South Africa.

Reply received: October 2014

QUESTION 567 FOR WRITTEN REPLY

567. Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

With reference to the six fishing boats that he handed to the fishing co-operatives of Ocean View and Masiphumelele in March 2013, (a) what was the initial purchase cost of each boat, (b) how many of these boats are still in operational use, (c) if all six boats are not in operational use by the intended recipients, why is this so, (d) what is the current status of fishing quotas of each co-operative and (e) what further costs has his department incurred in relation to this project since the boats were handed over? NW650E

Response:

Question A and B:

The following cooperatives, 9 in total, were assisted with respect to the above referred to communities:

In Ocean View – 6 – Co-operatives with 6- boats. All boats have been reported as being in working condition by the co-operatives concerned.

Co – Operative Name	Activities applied For	Amount Requested and Approved
Rooi Roeman	5.2m boat with 1 trailer and fishing equipment	R 215 460.00
Smart Catch	5.2m boat with 1 trailer and fishing equipment	R 215 460.00
Sea Breeze	5.2m boat with 1 trailer and fishing equipment	R 215 460.00
Sinethemba	5.2m boat with 1 trailer and fishing equipment	R 215 460.00
Ocean Waves	5.2m boat with 1 trailer and fishing equipment	R 215 460.00
Cape Point	5.2m boat with 1 trailer and fishing equipment	R 215 460.00
Total		R 1 292 760.00

In Mandela Park (Masiphumelele), 3 co-operatives were assisted with 6 boats (2 per co-operative). All boats have been reported to the dti as being in working condition by the co-operatives concerned.

Co – Operative Name	Activities applied For	Amount Requested and Approved
Siyajabula Primary Cooperative	2x GRP Planning hull vessel- 2x40 HP	R271 815.00
Siyazama Primary Cooperative	2x GRP Planning hull vessel-2x40 HP	R271 815.00
Siyakhula Primary Cooperative	2X GRP Planning hull vessel-2x40 HP	R271 815.00
Total		R815 445.00

Question C

Based on the answers given by the individual co-operatives – they have all confirmed that the boats are still in their possession and are being used for the intended use that were applied for and are operational.

Question D

The current status of all small scale fisheries cooperatives is being aligned to the new Small Scale Fisheries Policy (DAFF mandate) and the Co-operatives Act (led by the dsbd and dti). The current co-operatives are operating under the interim relief dispensation as authorised and managed by DAFF.

Question E

Except for the monitoring and capacity building workshops that were conducted jointly by the dsbd and the dti and DAFF, the department has not incurred any costs outside of the amounts that were paid for the boats and implements of each co-operative, as per the individual application that were approved by the Co-operative Incentive Scheme (CIS).

The dsbd and the dti and DAFF have established a Task Team of designing the framework for the alignment and implementation of the Small Scale Fisheries Policy and the Co-operatives Act. A road show of workshops to engage, verify and appraise all small scale fishing communities was conducted in the months of July 2014. The main aim of these workshops is to draft an acceptable model for small scale fishing co-operatives. DAFF has prioritised all dsbd and the dti funded co-operatives to register all vessels under the interim relief dispensation.

Reply received: July 2014

Question Number: 358 (NW40E)

Date of Publication: 27 June 2014

NA IQP Number: 02 2014

Date of Reply: 04 July 2014

358. Mr M Bagraim (DA) to ask the Minister of Small Business Development:

Whether she intends to allow for certain exemptions for small businesses from current labour legislation; if so, (a) what are these exemptions, (b) when does she intend for these exemptions to come into effect and (c) will they require any amendments to the legislations?

REPLY:

The mandate of the Department of Small Business Development focuses on enhanced support to Small Business and Cooperatives Development through implementation of entrepreneurship programmes for women and youth. Easing of the regulatory environment is one of the important support mechanisms that are being considered to implement the entrepreneurship programmes successfully. It is within these contexts that all issues pertaining to the labour market that impact on small business development will be reviewed. A decision will be taken on measures to be implemented after the outcomes of the review have been discussed with relevant stakeholders

Reply received: July 2014

Question Number:

314

(NW395E)

Date of Publication:

NA IQP Number:

June 2014

2014

Date of Reply:

July 2014

314. Mr R W T Chance (DA) to ask the Minister of Small Business Development:

(1) What are the details of office furniture ordered and or purchased for the use of her and/or her staff since 1 May 2014;

(2) in respect of each piece of furniture, (a) what is the description, (b) what is the breakdown of the costs, (c) where will each piece of furniture be used and (d) who will use each piece of furniture;

(3) what are the details of furniture disposed of;

(4) in respect of each piece of furniture disposed of, (a) what is the description, (b) original purchase costs and (c) on what date was it purchased;

(5) (a) how was this furniture disposed of, (b) what disposal method was used, (c) what is the name and contact details of person/s to whom it was disposed and (d) at what price was it disposed of?

NW395E

REPLY

(1) & (2) No new furniture was ordered for the Office of the Minister of Small Business or her staff. The Minister was allocated the office and furniture of a former Deputy Minister (DM) of the dti.

(3) – (5) No furniture was disposed of in relation to the Office of the Minister of SBD offices, or of any of her staff, as her office took over the furniture of a former DM of the dti.

Reply received: July 2014

Question Number: 280 (NW360E)

Date of Publication: 27 June 2014

NA IQP Number: 02 2014

Date of Reply: 04 July 2014

280. Mr R W T Chance (DA) to ask the Minister of Small Business Development:

(1) What are the details of motor vehicles ordered and/or purchased for her use since May 2014;

(2) (a) what is the (i) make, (ii) model, (iii) total cost and (iv) breakdown of the cost of each motor vehicle and (b) where will each motor vehicle normally be stationed? NW360E

REPLY:

1. It should be noted that no vehicle has yet been purchased for the Minister. A process has been initiated to ensure that the purchase of the motor vehicle is in terms of the Minister Handbook.

Reply received: July 2014

Question Number: 253 (NW331E)

Date of publication: 27 June 2014

NA IQP Number: 02 2014

Date of Reply: 04 July 2014

253. Mr H C C Krüger (DA) to ask the Minister of Small Business Development:

(1) How does she intend to overcome (a) red tape and (b) other difficulties including (i) creditor payment policies, (ii) supply chain management policies, (iii) competency levels of officials and (iv) corruption in order for small and medium enterprises to do business with local municipalities and state-owned enterprises;

(2) When can a full report be expected on the research on the underlying reasons for the poor success rate of (a) small and medium enterprises and (b) entrepreneurial skills in the country?

REPLY:

The mandate of the Ministry of Small Business Department includes the utilisation of support mechanisms such as easing the regulatory environment to enhance Small Business and Cooperatives Development. Through the measures that have been in the purview of the dti work has already been done to ease the red-tape burden on small businesses and the challenge continues to be the fragmented nature of these responses. The creation of a Small Business Department is the answer to the need to consolidate existing policies. My office has already started high-level talks with the South African Revenue Service on a number of points of collaboration including easing the regulatory burden. In the coming weeks and months we will be considering further measures to ease the red-tape burden. We will also be engaging with the relevant government departments such as National Treasury, Public Works and the Department of Public Service and Administration on how to ensure that government pays in terms and within the 30 day determined timeframes. Furthermore, guidelines within the private sector will also be considered. As a department, we are committed to ensure we root out all corrupt practices in the public and private sector that hamper the achievement of our mandate and objectives and in this regard attention will be on existing measures.

(2) As an initial measure, my office, in conjunction with the relevant provincial authorities will jointly develop a country wide engagement plan which will seek to solicit views directly from small business owners on area that require improvement per Province. Ideally, I would like for the engagement to solicit and document the key issues for small business people to enable feedback on progress made on addressing the regulatory burden in the short to medium term.

Reply received: July 2014

Question Number: 35 (NW40E)

Date of Publication: 14 June 2014

NA IQP Number: 01 2014

Date of Reply: 04 July 2014

35. Mr R W T Chance (DA) to ask the Minister of Small Business Development:

Will she indicate (a) the areas of policy confluence between her department and the (i) Department of Economic Development, (ii) Department of Labour and (iii) Department of Trade and Industry with regard to stimulating small businesses and (b) how she intends overcoming the policy contradictions between her department and the specified pertaining to support for small businesses? NW40E

REPLY:

(a) Since assuming office, I have considered an assessment of the existing policy areas that inform the mandate of my department. The mandate of the my department focuses on enhanced support to Small Business and Cooperatives development through implementation of entrepreneur programmes for women, people with disabilities and youth in order to contribute to job creation and economic growth in the country. Mechanisms to support the implementation of programmes include amongst others the following, access to finance, business skills development, market access, competitiveness, easing regulatory environment, and advancing localisation.

The mandate advocates for a need to enter into transversal agreements with various Departments that have implemented programmes with impact to the development of small businesses in the country. In our quest therefore to uplift policy areas that will inform the performance of the of the department, we are already identifying policy areas that will inform part of a broader engagement with other Economic Cluster and Infrastructure, departments and relevant agencies.

This includes, but is not limited to; (1) The Department of Economic Development, (2) and the Department of Labour (3) the Department of Trade and Industry. The Department of Trade and Industry has been the department that has traditionally assumed responsibility for small business development in the country. In this regard, there are specific policy programme areas that will be transferred from this department. However, as some of the functions will be shared, a concerted effort will be made to establish areas of collaboration and coordination mechanisms in order to comprehensively report on the performance of the Department.

Some of the broad areas of policy confluence between departments include but are not limited to:

· Cooperatives and commercialisation support, local content and preferential procurement,

· Collaboration is required on business levies, tax and tax exemptions and investment subsidies among others.

· Possible review of the National Small Business Amendment Act of 2004 to allow for the integration of specific intervention measure

(b) The President has provided a guideline on delineation in terms of the functions and policy responsibilities of the Departments of Trade and Industry, Economic Development, National Treasury and Small Business Development. This has provided clarity in terms of the responsibilities of Ministers respectively.

2014-08-07

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