Small Business Development

2015-03-25

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Reply received: June 2015

QUESTION 1928

Mr S J Masango (DA) to ask the Minister of Small Business Development:

(a) Who are the current chief financial officers of (i) her department and (ii) the entities reporting to her and (b) what is the qualification of each chief financial officer?

NW2149E

REPLY:

(i) The Department of Small Business Development is in the process of recruiting a Chief Financial Officer.

(ii) The Chief Financial Officer of the Small Enterprise Development Agency (Seda) is Mr Norman Mzizi, and the Chief Financial Officer of Small Enterprise Financial Agency (sefa) is Ms Reshoketswe Ralebepa.

(i) Not applicable.

(ii) Mr Norman Mzizi’s qualifications are as follows: MCom, Chartered Accountant, SA; and Ms Reshoketswe Ralebepa’s qualifications are as follows: Bachelor of Commerce, Honours in Bachelors of Accounting Science Degree (CTA) and Chartered Accountant, SA.

Reply received: June 2015

QUESTION 1893

Mr H C CKrüger (DA) to ask the Minister of Small Business Development:

Since 1 January 2015, has her department installed generators at any of (a) its offices or (b) the offices of the entities reporting to her as a result of load shedding; if so, what is the total cost of the (i) installation and (ii) running of these generators?
NW2114E

REPLY:

The Department of Small Business Development has not installed generators in any of its offices since January 2015.
The Small Enterprise Development Agency (Seda) and the Small Enterprise Finance Agency (sefa) currently lease office spaces from different landlords in all the provinces and have not installed any generators in all these leased premises. In some offices, the building owners / landlords have installed generators for backup.

Reply received: June 2015

QUESTION 1770

Mr T R Majola (DA) to ask the Minister of Small Business Development:

What is the current status of the Gender, Youth and People with Disabilities Economic Empowerment Programme which was included in her department’s strategic plan presented at the Small Business Development Strategic Workshop in Kempton Park on 25 September 2015?
NW1988E

REPLY:

The Women, Youth and People with Disabilities Economic Empowerment Programme was established following the integration of the Youth, Gender and Women Empowerment, and People with Disabilities programmes with effect from 1 April 2015. Some of the key achievements realised to date include the introduction of an incentive scheme that is targeted at women, youth and people with disabilities. The department is already involved in initiatives targeting people with disabilities that were initiated by the Department of Social Development and Disability Rights organisations. The Youth Programme has to date successfully mobilised resources to launch the Mass Youth Enterprise Creation Programme (MYECP) in the third quarter of the 2015/16 financial year. The department will be launching a Youth ICT and Entrepreneurship Hub at Wits University, which is aimed at increasing the quantity of young entrepreneurs from disadvantaged communities who are creating successful ICT enterprises.

Reply received: June 2015

QUESTION 1769

Mr T R Majola (DA) to ask the Minister of Small Business Development:

What is the current status of the micro franchising incentive which was included in her department’s strategic plan presented at the Small Business Development Strategic Workshop in Kempton Park on 25 September 2015? NW1987E

REPLY:

The department is the process of putting together the modalities for executing the programme. It is estimated that the implementation of the programme shall begin in the third quarter of the 2015/16 financial year.

Reply received: June 2015

QUESTION 1767

Mr T Z Hadebe (DA) to ask the Minister of Small Business Development:

What is the current status of the National Enterprise Development Fund which was included in her department’s strategic plan presented at the Small Business Development Strategic Workshop held in Kempton Park on 25 September 2014?
NW1985E

REPLY:

The department is in the process of developing a business case to disburse the funds, after which it will lobby the private sector to support and contribute to the National Enterprise Development Fund, as indicated in the department’s Annual Performance Plan for 2015-2018.

Reply received: June 2015

QUESTION 1766

Mr T Z Hadebe (DA) to ask the Minister of Small Business Development:

What is the current status of the transversal agreements with other government departments which were included in her department’s strategic plan presented at the Small Business Development Strategic Workshop held in Kempton Park on 25 September 2014? NW1984E

REPLY:

The department is currently discussing with the following government departments with a view to finalize the agreements before the end of the 2015/2016 financial year:

Department of Labour: to provide 10 000 youth with employment, internships or procurement opportunities through youth mainstreaming over the next five years;
Department of Science and technology: to strengthen the synergy between the Centers for Entrepreneurship and Technology Stations;
Department of Human Settlements: to set aside procurement opportunities for small businesses and co-operatives in the development of industrial or commercial parks in the Western Cape as well as in the People’s Housing Process and Social and Rental Interventions programmes;
Department of Public Enterprises: to develop and prioritize support and increase opportunities for emerging small businesses and designated groups through diverse programmes provided for in initiatives of DPE’s Supplier Development Programme; and
Department of Energy: for the roll out of the Solar Water Heaters (SWH) Programme. The Department of Small Business Development will develop a selection criterion for the identification of SMMEs and Cooperatives to participate in the programme as well as provide business development services to the selected SMMEs and Cooperatives.

Reply received: June 2015

QUESTION 1765

Mr T Z Hadebe (DA) to ask the Minister of Small Business Development:

What is the current status of the export villages which was included in her department’s strategic plan presented at the Small Business Development Strategic Workshop held in Kempton Park on 25 September 2014?

NW1983E

REPLY:

The export villages programme was not transferred from the Department of Trade and Industry to the Department of Small Business Development as an evaluation of its aims deemed it more relevant to the mandate of the former.

Reply received: June 2015

QUESTION 1764

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

What is the current status of the Red Tape Reduction Programme which was included in her department’s strategic plan presented at the Small Business Development Strategic Workshop held in Kempton Park on 25 September 2014?
NW1982E

REPLY:

As at March 2015, the local government red tape reduction guidelines have been rolled out in all the nine provinces in the form of provincial workshops in which a total of 76 local and 26 district municipalities participated. Twelve of the 26 district municipalities were trained on the methodologies and tools of conducting Red Tape Reduction processes. This was possible as a result of collaboration with the national Department of Cooperative Governance and Traditional Affairs (CoGTA) as well as the South African Local Government Association (SALGA). The guidelines are being continuously rolled-out to different district municipalities, with the assistance of provincial Departments of Economic Development.

Reply received: June 2015

QUESTION 1763

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

What is the current status of the Global Exporter Passport Initiative which was included in her department’s strategic plan presented at the Small Business Development Strategic Workshop held in Kempton Park on 25 September 2014?
NW1981E

REPLY:

The Global Exporter Passport Initiative was not transferred from the Department of Trade and Industry to the Department of Small Business Development as an assessment of its objectives established that it was more relevant to the mandate of the former.

Reply received: June 2015

QUESTION 1762

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

What is the current status of the mass youth enterprise creation programme which was included in her department’s strategic plan presented at the Small Business Development Strategic Workshop held in Kempton Park on 25 September 2014? NW1980E

REPLY:

The concept, business case and implementation plan for the mass youth enterprise creation programme has been approved by the Minister for implementation and is included in the Departmental Annual Performance Plan for 2015/16 and Five-Year Strategic Plan for 2015 – 2020. To date, resources have been mobilised to implement a pilot of the programme during 2015 with the aim to create 100 youth enterprises between 2015 and 2017.

Reply received: June 2015

QUESTION 1761

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

What is the current status of the enterprise cadet scheme which was included in her department’s strategic plan presented at the Small Business Development Strategic Workshop held in Kempton Park on 25 September 2014? NW1979E

REPLY:

After a thorough consideration of the various proposed programmes of the new department, it was decided that the enterprise cadet scheme should not be established as its design was similar to the Centers for Entrepreneurship programme of the department.

Reply received: June 2015

QUESTION 1760

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

What is the current status of the centres for entrepreneurship which were included in her department’s strategic plan presented at the Small Business Development Strategic Workshop held in Kempton Park on 25 September 2014?

NW1978E

REPLY:

To date, the department has established 3 Centers for Entrepreneurship in Gauteng, Western Cape, Mpumalanga and the Eastern Cape. The Centers focus on different sectors of the economy. For example, the Ekurhuleni Technical and Vocational Education Training College focuses on welding, while the False Bay and Gert Sibande Technical Vocational Education Training Colleges both focus on hospitality.

As part of our effort to expand the Centers for Entrepreneurship programme, formal agreements have been concluded with the Durban University of Technology in KwaZulu Natal and Orbit TVET College in the North West.

Reply received: June 2015

QUESTION 1642

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

With reference to her reply to question 2016 on 27 November 2014, does she expect the Incubation Support Programme (ISP) to migrate from the Department of Trade and Industry (DTI) to her department; if not, (a) why not and (b) what are the relevant details; if so, (i) when and (ii) what steps has she taken to have the ISP migrate from the DTI to her department?
NW1859E

REPLY:

In February this year, 2015, the Ministers and Directors-General of Small Business Development and Trade and Industry met to discuss the migration of outstanding functions. In that discussion, both Ministers agreed to explore the possibility of the Incubator Support Program being split between the two departments.

A further discussion between the Directors-General of the two departments shall be convened to determine the modalities of implementing this decision.

Reply received: April 2015

QUESTION 1477 FOR WRITTEN REPLY

Q 1477. Mr S M Gana (DA) to ask the Minister of Small Business Development:

How many invoices from private contractors to her department currently remain unpaid for longer than 30 days and (b) in each case, what (i) are the details of the (aa) contractor and (bb) services provided and (bb) services provided and (ii) what is the (aa) date of the invoice (bb) reason why the invoice was not paid within the 30 days.? NW1690E

Reply

Our financial records show that there are no invoices from private contractors to DSBD currently remain unpaid for longer than 30 days.

Reply received: May 2015

QUESTION 1441 FOR WRITTEN REPLY

1441. Mr M H Hoosen (DA) to ask the Minister of Small Business Development:

Does her department have a Regulatory Burden Reduction strategy in place; if not, why not; if so, what are the relevant details of the strategy? NW1654E

REPLY:

The Department of Small Business Development (DSBD) has no Strategy on Regulatory Burden Reduction. However, reducing small enterprise regulatory constraints is one of the pillars of the Integrated Strategy on the Promotion of Entrepreneurship and Small Enterprises. Based on this pillar the department has developed Red Tape Reduction programme which culminated with the guidelines applicable for reducing regulatory burdens currently experienced by small, micro and medium enterprises (SMMEs) at local government level. These guidelines present a wide-range red tape issues with negative effects to the development of SMMEs including root causes and proposed solutions with action plans.

Within the current MTSF period the DSBD intends to develop Red Tape Reduction guidelines applicable to the provincial sphere of government focusing on regulatory, compliance and administrative burdens experienced by small enterprises within the different sectors of the economy. The provincial guidelines will outline proposals on the legislative reviews to be conducted by the different sector departments and will be a feeder to ultimate institutionalisation of Red Tape Reduction processes in all the three spheres of government.

Reply received: May 2015

QUESTION 1406

1406. Mr S J F Marais (DA) to ask the Minister of Small Business Development:

(a) What number of (i) financial, (ii) forensic and/or (iii) other investigations that were commissioned by her department have been completed since 1 April 2013 and (b) in each case, what are the relevant details on the (i) investigation including a synopsis of the facts and findings of each case, (ii) persons or third parties responsible for each investigation, (iii) total cost to date of each investigation and (iv) appropriate steps taken against officials and third parties implicated of wrongdoing in the findings of the investigations? NW1619E

Reply

The Department of Small Business Development was proclaimed on 7 July 2014, which is well after 1 April 2013. To date there have been no financial or forensic investigations started in the new department.

Reply received: April 2015

QUESTION 1302

1302. Mr H C C Krüger (DA) to ask the Minister of Small Business Development:

Whether her department has a definition of manufacturing companies such as a (a) micro enterprise, (b) very small enterprise, (c) small enterprise and (d) medium sized enterprise; if not, why not; if so, what are the relevant details in each case? NW1511E

Response:

All small businesses are defined in terms of the schedule of the National Small Business Amendment Act, of 2003. In the case of manufacturing companies, these are defined as follows:

Sector or sub-sectors in

accordance with the

Standard Industrial Classification

Size or class

Total full-time

equivalent of

paid

employees

Less than:

Total

annual

turnover

Less than:

Total gross

asset value

(fixed

property

excluded)

Less than:

Manufacturing

Medium

200

R51.00 m

R19.00 m

Small

R13.00 m

R 5 m

Very small

R 5.00 m

R 2 m

Micro

R 0.20 m

R 0.10 m

Reply received: April 2015

QUESTION 1177 FOR WRITTEN REPLY

1177. Mr G Mackay (DA) to ask the Minister of Small Business Development:

(a) How many sick leave days were taken by employees of her department in the
2013 -14 financial year and (b) what was the total cost thereof in rand? NW1378E

REPLY:

The Department of Small Business Development was proclaimed on
the 7th July 2014, and therefore there are no records for sick leave taken for the 2013/2014 Financial year.

(b) In view of the response to question (a) above, there is no monetary value for the sick leave for the 2013/2014 financial year, because the Department of Small Business Development was only proclaimed on 7 July 2014.

Reply received: May 2015

QUESTION 1143 FOR WRITTEN REPLY

1143. Mr M Bagraim (DA) to ask the Minister of Small Business Development:

(a) What amount did (i) her department and (ii) state entities reporting to her spend on each

newspaper subscription in each month (aa) in the (aaa) 2011-12, (bbb) 2012-13 and (ccc) 2013

14 financial years and (bb) during the period 1 April 2014 up to the latest specified date for

which information is available and (b) how many copies of each newspaper were ordered on

each day of the week (i) in each specified financial year and (ii) during the period 1 April 2014

up to the latest specified date for which information is available? NW1308E

REPLY:

(a) (i) (aa) The Department of Small Business Development was proclaimed on
the 7th July 2014, and therefore there was no amount of money spent on newspaper subscription in each month of (aaa) 2011-12, (bbb) 2012-13, (ccc) 2013-14 financial years.

(bb) The Department of Small Business Development newspaper subscriptions from the 7th of July 2014 to-date see the link: /files/RNW1143-150512NEWSPAPER.docx

Reply received: April 2015

QUESTION 1108 FOR WRITTEN REPLY

1108. Mrs D Robinson (DA) to ask the Minister of Small Business Development:

What amount did (a) her department and (b) entities reporting to her spend on advertising in The New Age newspaper in the (i) 2011-12, (ii) 2012-13 and (iii) 2013-14 financial years? NW1273E

REPLY:

(a) (i) The Department of Small Business Development was only proclaimed on the 7th July 2014, and therefore did not spend any amount of money on advertising in The New Age newspaper during 2011/12 financial year.

(ii) The Department of Small Business Development was only proclaimed on the 7th July 2014, and therefore did not spend any amount of money on advertising in The New Age newspaper during 2012/13 financial year.

(iii) The Department of Small Business Development was only proclaimed on the 7th July 2014, and therefore did not spend any amount of money on advertising in The New Age newspaper during 2013/14 financial year.

(b) Small Enterprise Development Agency (Seda):

(i) Seda spent R763 526.60 on advertising in The New Age newspaper in the 2011/12 financial

year.

(ii) Seda spent R478 177.56 on advertising in The New Age newspaper in the 2012/13 financial

year.

(iii) Seda did not spend any amount of money on advertising in The New Age newspaper in the

2013/14 financial year.

(b) Small Enterprise Finance Agency (Sefa):

(i) Sefa was only established on the 1st April 2012, and therefore did not spend any amount of money on advertising in The New Age newspaper during 2011/12 financial year.

(ii) Sefa did not spend any amount of money on advertising in The New Age newspaper during the 2012/13 financial year, and

(iii) Sefa did not spend any amount of money on advertising in The New Age newspaper during the 2013/14 financial year.

Reply received: March 2015

QUESTION 919 FOR WRITTEN REPLY

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

What amount was spent by (a) her department and (b) state entities reporting to her on (i) tickets and (ii) sponsorships on The New Age Breakfast Briefings for the last three financial years? NW1068E

REPLY:

(a) (i) The Department of Small Business Development did not spend any amount of money for tickets on The New Age Breakfast Briefings in the last three financial years.

(ii) The Department of Small Business Development did not spend any amount of money for sponsorships on The New Age Breakfast Briefings in the last three financial years.

b) Small Enterprise Development Agency (Seda):

(i) Seda spent R14 261.40 in the 2012/13 financial year for tickets on The New Age Breakfast Briefings. No amount of money was spent for tickets in 2013/14 and 2014/15.

(ii) Seda did not spend any amount of money for sponsorships on the New Age Breakfast

Briefings in the last three financial years.

Small Enterprise Finance Agency (Sefa):

(i) Sefa did not spend any amount of money on tickets on The New Age Breakfast Briefings in the last three financial years.

(ii) Sefa did not spend any amount of money on sponsorships on The New Age Breakfast

Briefings in the last three financial years.

Reply received: March 2015

QUESTION 884 FOR WRITTEN REPLY

884. Mr G G Hill-Lewis (DA) to ask the Minister of Small Business Development:

(1) Whether her department or the entities reporting to her provides any type of sponsorships; if not, what is her department’s position in this regard; if so, (a) what are the details of each sponsorship, (b) what is the value of each sponsorship, (c) when were each of these sponsorship deals undertaken and (d) when will each of the sponsorship deals end;

(2) whether her department or any of the entities reporting to her intends to enter into any type of sponsorship deal or contract in the (a) 2015-16 and (b) 2016-17 financial years; if not, why not; if so, (i) with whom will each sponsorship deal or contract be made, (ii) what will the terms of each of the sponsorship deals or contracts be, (iii) when will each of the sponsorship deals or contracts (aa) commence and (bb) end and (iv) what is the value of each of the sponsorship deals or contracts? NW1033E

REPLY:

The Department of Small Business Development does not provide any sponsorship, and the Department does not have a position with regards to sponsorships.

The Small Enterprise Development Agency (Seda):

During the 2014/15 period, Seda’s Corporate Communications and Marketing unit co-sponsored the Small Business Development Policy Colloquium.
The sponsorship was valued at R 50 000.00.
The Small Business Development Policy Colloquium took place from the 21 – 23 October 214.
The sponsorship deal was a once off sponsorship for above-mentioned Colloquium.

The Small Enterprise Finance Agency (sefa) is involved in sponsorships related to the development of SMMEs. In this regard, sefa is guided by its Sponsorships Policy which entails that the sponsorship will be focused on supporting SMME related events.

The following are details of the events which the organisation has supported in the 2014/15 financial year.

Name of the organization	Reason for sponsorship
University of Johannesburg	The agency sponsored the Entrepreneurs Investment Conference aimed at stimulating innovations and educating entrepreneurs
Mitchells Plain Skills Centre Launch	sponsored this event to facilitate the launch of a skills centre in Mitchell’s Plain
	This was an event to recognize and honor the success of black investment and securities professionals in their respective areas of specialties and in the financial services.
Small Business Workshop in Soweto	This event was aimed at engaging small businesses in Soweto regarding sefa products.
Anglo American 5th Annual Enterprise Development Conference	The agency supported the Anglo American 5th Annual Enterprise Development Conference which is aimed at supporting sustainable entrepreneurship.
First Annual Khayelitsha Entrepreneurship Expo	The agency sponsored the first annual Khayelitsha Entrepreneurship Expo to showcase its products to the township communities.
Entrepreneurs Expo	sefa bought an exhibition stand at this event to showcase its products to entrepreneurs in Western Cape
SEA Africa( Global Entrepreneurship Week)	This was an annual global entrepreneurship event which attracted the South African young entrepreneurs to discuss future of entrepreneurship and innovation.
	As part of partnership between sefa and NYDA the agency supported the NYDA Summit aimed at providing a platform for youth organizations to share perspectives in development programmes and activities.
University of Limpopo	The agency sponsored the 3rd prize for the Business Plan competition at the University of Limpopo. This initiative was aimed at encouraging student to become entrepreneurs.
Small Business Development Institute	The policy conference was aimed at providing a platform to enable SA to develop National Small Business Development Master Plan in line with the National Development Plan.
Ebonoko Foundation	This was a business seminar aimed at connecting students who are in business with mentors
Creative Space Partnership	The creative space partnership was an enterprise development event which sefa supported to stimulate the development of small businesses.
Northern Cape Province BRICS Expo & International Trade & Tourism Conference	bought an exhibition space at the Brics event in Northern Cape. This event was organized by the Northern Cape government to showcase its investment opportunities.
Youth Chamber of Commerce and Industry	sponsored the National Youth in Business Breakfast event aimed at empowering the youth entrepreneurs.

(b). The values of the sponsorships undertaken.

Name of the organization
University of Johannesburg	R 20 000
Mitchell’s Plain Skills Centre Launch	R 11 000
	R 50 000
Anglo American	R 50 000
Soweto Small Business Workshop	R 50 000
First Annual Khayelitsha Entrepreneurship Expo	R 27 000
Entrepreneur Expo	R 25 000
SEA Africa	R 50 000
	R15 000
Ebonoko Foundation	R 50 000
Small Business Development Institute	R 50 000
Creative Space Partnership	R 50 000
Northern Cape Province BRICS Expo & International Trade & Tourism Conference	R 48 000
Youth Chamber of Commerce and Industry	R29 000

Name of the organization
University of Johannesburg	26-27 March 2014
Mitchell’s Plain Skills Centre Launch	15 April 2014
	25 September 2014
Anglo American	14 October 2014
First Annual Khayelitsha Entrepreneurship Expo	23-24 October 2014
Entrepreneur Expo	18-19 October 2014
Soweto Small Business Workshop
SEA Africa	18-21 November 2014
	27-30 November 2014
Ebonoko Foundation	29 November 2014
Small Business Development Institute	21-23 October 2014
Creative Space Partnership	07 October 2014
Northern Cape Province BRICS Expo & International Trade & Tourism Conference	29-31 October 2014
Youth Chamber of Commerce and Industry	Date to be confirmed

The contracts end as per the agreed time, based on the assessment of each request.

2. The Department of Small Business Development does not intend to enter into any type of sponsorship deal or contract in (a) 2015/16 and (b) 2016/17 because it does not have a sponsorship policy.

The Small Enterprise Development Agency (Seda):

Seda will only support activities and programmes that are relevant to its mandate and that of the department, and also based also on the availability of the funds in (a) 2015/16 and (b) 2016/17.

The Small Enterprise Finance Agency (sefa):

(a) Yes, sefa intends to continue supporting activities and programmes that promote SMME in the 2015/16 financial years.

(b) Yes, sefa intends to continue supporting activities and programmes that promote SMME in the 2016/17 financial years.

No decision has been taken yet, as requests are considered on the basis of their relevance to the mandate of the institution.
The key criteria for sponsorship is that it must be an SMME supporting activity and/ or programme and the primary condition is that sefa must be given a platform to engage the participating SMMEs.
In the new financial year sefa will consider requests for sponsorships as and when received, or when the organization sees an opportunity to showcase its products to SMMEs.

(aa) The new sponsorship requests will be considered in the new financial year.

(bb) The sponsorships will be considered for the financial year.

The maximum sponsorship amount is R50 000.

Reply received: March 2015

QUESTION 667 FOR WRITTEN REPLY

667. Ms D Carter (Cope) to ask the Minister of Small Business Development:

Whether the Small Enterprise Development Agency (SEDA) has, in the course of its existence, (a) trained a substantial number of young entrepreneurs on a year-on-year basis and (b) ensured that such entrepreneurs were (i) succeeding in their businesses and (ii) creating decent jobs on a scale necessary to help the country meet its job creating targets by 2030; if not, why not; if so, what are the details of the (aa) achievements and (bb) outputs of the SEDA? NW798E

(a) Although Seda does not have a customized training programme targeting the youth, training of youth-owned businesses are done annually through skills development and capacity building programmes and youth-focused events.

(b) (i) Seda provides skills development, capacity building and other related training in order to ensure the development and sustainability of all SMMEs including youth-owned enterprises. The interventions implemented by Seda are aimed at ensuring that SMMEs are well equipped with the necessary skills and knowledge to run successful businesses that will stimulate economic activities in the specific areas in which they operate.

(ii) The skills development and capacity building programmes offered by Seda are aimed at ensuring that SMMEs play a pivotal role in the mainstream economy. It is envisaged that the heightened participation of SMMEs in the mainstream economy would lead to economic growth and job creation. In order for Seda to ensure a better contribution by SMMEs to the country’s economic activities, it is necessary to upscale on the existing support measures. Seda, through the Seda Technology Programme (Stp), provides technology transfer, business and technology incubation services, as well as incentives for management systems implementations, product testing and certification. Through the Stp, Seda trained and supported 1089 youth-owned businesses, 108 youth start-ups, and 230 jobs created in the 2012/13 financial year; 1514 youth-owned businesses, 348 youth start-ups, and 419 jobs were created in the 2013/14 financial year; and 976 youth-owned businesses, 221 youth start-ups, and created 591 jobs during the 2014/15 financial year to date. Seda, therefore, assists an average of 1150 youth-owned enterprises per year with training intervention.

(aa) In the 2014/15 financial year, Seda has, to date, assisted 3,405 youth-owned businesses.

Of those youth-owned businesses, 1101 were assisted with business management and

technical skills training interventions. In the 2013/14 financial year, 1116 and 1233 youth

owned businesses were supported with training intervention in the 2013/14 and 2012/13

financial years, respectively. During that period, Seda hosted 128 youth focused events through

its provincial network and trained 156 Educators from 120 schools on its Entrepreneurship

Programme.

bb) Training of SMMEs contributes to the creation of feasible, profitable and sustainable

businesses. In the 2015/16 financial year, Seda targets to provide business support services

interventions to 11 400 clients, support 36 secondary marketing cooperatives, support 90

primary cooperatives with business support interventions, and through the Stp, targets to

support 55 incubators, create 1650 jobs, create and support 331 small and medium enterprises.

Reply received: March 2015

QUESTION 577 FOR WRITTEN REPLY

557. Mr M W Rabotapi (DA) to ask the Minister of Small Business Development:

Whether any employees in her department have been on suspension with full salary since 1 January 2014; if so, (a) how many employees and (b) what is the total cost thereof? NW637E

REPLY:

No employees in the Department of Small Business Development have been suspended since the Department’s proclamation in July 2014.
In view of the reply to section (a), there was no cost incurred by the Department.

Reply received: March 2015

QUESTION 452 FOR WRITTEN REPLY

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

How does her department plan to (a) reduce the burden on small, micro and medium enterprises of (i) obtaining permits from local government and (ii) meeting annual compliance regulations and (b) ensure the competence of the applicable departments at municipalities assisting such enterprises? NW529E

(i) In working towards reducing the burden on SMMEs in relation to obtaining permits from local government, the Department has proposed the creation of service charters that are aimed at reducing the turnaround times on obtaining various permits, relevant documentation and timely feedback to SMMEs by municipalities.

(ii) In order to ensure that municipalities reduce the burden on SMMEs in relation to regulations which require annual compliance, the Department is proposing that municipalities review and re-align their policies, by-laws and regulations to ensure easier and manageable compliance processes for SMMEs.

The Department has proposed the improvement of performance management systems and applicable action plans which are highlighted within the Municipal Red-Tape Reduction guidelines. The Department will also provide education and awareness by way of providing business management skills and compliance education.

Reply received: March 2015

QUESTION 450 FOR WRITTEN REPLY

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

How has her department reduced the cost related to the (a) administration and (b) regulatory requirements of small, medium and micro enterprises (SMMEs) since 7 May 2014?

REPLY:

Since its proclamation in July 2013, the Department, in conjunction with the Department of Cooperative Governance and Traditional Affairs (COGTA), the South African Local Government Association (SALGA) and various Provincial Departments of Economic Development, has been rolling out the guidelines on Municipal Red Tape Reduction through district workshops for the benefit of both district and local municipalities. To date these guidelines have been rolled out through provincial workshops to 24 district municipalities in the following provinces: Limpopo – 5, Northern Cape – 4, Western Cape – 4, Mpumalanga – 3, Kwazulu-Natal – 3, Eastern Cape – 2, Gauteng – 1, North West – 1, and Free – 1; and 76 local municipalities in the following provinces: Eastern Cape – 18, Kwazulu-Natal – 11, Mpumalanga – 10, Limpopo – 8, North West – 8, Western Cape – 7, Northern Cape – 6, Free state – 4, and Gauteng – 4. The Municipal Red-Tape Reduction guidelines address red-tape issues that SMMEs encounter at local government level. The guidelines have action plans that municipalities can readily adapt and apply with the aim of reducing the administration costs on SMMEs and municipalities.

The Department will be embarking on a study that will seek to identify, prioritise and address regulatory issues which inhibit the growth and development of SMMEs within specific sectors in the different provinces. The findings of the study will allow the Department to make recommendations and take action in simplifying the regulatory environment for SMMEs and Co-operatives. Since May 2014, the Department has conducted focus groups in the Gauteng and Limpopo Province as part of the above mentioned study.

2015-03-25

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