With reference to the President of the Republic, Mr M C Ramaphosa, acknowledging in the recent State of the Nation Address that the Government does not create jobs, but merely has to create the environment for businesses to create jobs and that it was small business that would be creating the majority of jobs needed to kick-start job creation in the Republic, but that nothing has yet been done to tackle the onerous labour legislation and regulations to free up small businesses to create jobs, (a) what are the reasons that nothing has been done and (b) on what date does she intend to tackle the onerous regulatory environment?”
I have been advised that:
a) As means of addressing the onerous labour legislation and regulations to free up small businesses to create jobs, the Department of Small Business Development (DSBD) has activated several interventions which include, undertaking a dedicated exercise to identify and review legislation and reforms that impede on Small, Micro and Medium Enterprises (SMMEs) and co-operatives’ growth. The update has so ...
What (a) steps has her department taken to provide a path for women and youth, who are trying their best to provide for their families through small-, medium- and micro- enterprises and informal businesses, to enter the small business sector successfully and (b) type of resources including venture capital and/or starter packs are available to such entrepreneurs?”
I have been advised:
(a)&(b) That During the 2022-23 financial year, the Department of Small Business Development (DSBD) developed the Gender, Youth and Disability (GEYODI) Strategy. The strategy was developed in consultation with stakeholders in the gender, youth and persons with disabilities ecosystem. The aim of the strategy is to mainstream women and youth participation in the mainstream economy. One of the ...
Whether her department is implementing any initiatives and/or programmes targeted specifically at fostering an entrepreneurial ecosystem in rural communities, given that entrepreneurship is a recognised catalyst for economic growth; if not, why not; if so, what are the relevant details?”
I have been advised:
That the Department of Small Business Development (DSBD) is implementing the Township and Rural Entrepreneurship Programme (TREP) to foster an entrepreneurial ecosystem in rural and township communities. The TREP goal is to overcome the legacy of economic exclusion by creating a conducive environment for entrepreneurial activity and providing dedicated business support to enterprises in rural and township areas including access ...
With reference to her announcement during her department’s budget vote that 2.5 million small-, medium- and micro-enterprises (SMMEs) currently employ almost 8 million people in the Republic, what are the details of the material support that her department offers to lessen this burden on struggling SMMEs as they often struggle to access and benefit from the services of agencies such as the Small Enterprise Development Agency?”
I have been advised:
That the Small Enterprise Development Agency (Seda) has a wide footprint in the country that consists of fifty-three (53) branches and fifty-six (56) co-location points with the intention to widen access to Seda services in underserviced and rural South Africa. The Small Enterprise Finance Agency (sefa) is working with Seda in increasing awareness across various regions by deploying ...
Whether her department has undertaken any review and/or study to determine the extent to which small-, medium- and micro enterprises (SMMEs) benefited from the African Growth and Opportunity Act (AGOA) agreement between the Republic and the United States of America; if not, why not; if so, (a) to what extent have SMMEs benefitted from the AGOA in the past three years and (b) what total number of jobs have been created and sustained due to the AGOA?”
I have been advised:
The Department of Small Business Development (DSBD) has not undertaken a review as part of its research undertaking on the African Growth and Opportunity Act (AGOA).
The DSBD and the Department of Trade Industry and Competition (the dtic) participated in the South Africa-United States of America (SA-USA) meeting to discuss matters related to the AGOA. The US International ...
With reference to the assertion of the President of the Republic, Mr M C Ramaphosa, in the State of the Nation Address on 9 February 2023 that small- and medium-sized enterprises (SMMEs), cooperatives and informal businesses will drive growth and create jobs in the Republic’s ailing economy, (a) what are the reasons that she has not yet taken any steps to reduce regulatory impediments for SMMEs and cooperatives to make it easier for entrepreneurs to start businesses and (b) by what date does she intend to introduce amending legislation in this regard in the National Assembly?”
I have been advised that:
a) In order to take steps towards reducing the regulatory impediments for SMMEs and Co-operatives, the DSBD in partnership with key stakeholders like South African Local Government Association (SALGA), the Department of Trade Industry and Competition (the dtic), Foundations and Think Tanks embarked on the following processes:
- Conducted extensive research and rapid literature review to- identify key ...
What steps of intervention has she taken to prevent small businesses based in townships and owned by women and youth, from closing down as a result of power outages?”
I am advised follows:
The Department of Small Business Development (DSBD) has put together a loadshedding relief package called the Power Purchase Product (PPP) to be implemented through its agency Small Enterprise Finance Agency (sefa). The PPP is financial package which aims to assist small and medium enterprises across South Africa who have been severely impacted by loadshedding. The programme will ...
(1) What are the reasons for the Industrial Development Corporation (IDC) to move rapidly towards operating in the small, micro and medium enterprises wholesale lending when the Small Enterprise Finance Agency (SEFA) has been in operation in the sector for more than a decade.
(2) whether the specified move is a sign that SEFA is struggling to fulfil its mandate; if not, what is the position in this regard; if so, what are the relevant details.
(3) whether SEFA should be dissolved, and its functions transferred to the IDC; if not, why not; if so, what are the relevant details?”
I have been advised as follows:
- The Industrial Development Corporation (IDC) is an agency under the Department of Trade, Industry and Competition (the dtic). The department has not been apprised of Industrial Development Corporation’s motive to move into the SMME wholesale lending.
- As indicated under (1) above, the motive for the move is not known to DSBD. However, sefa has been delivering ...
What total number of (a) spaza shops in the Republic were affected by the failure of the Small Enterprise Finance Agency to disburse the full R10 500 to its intended beneficiaries and (b) beneficiaries have received their payments to date in each province?”
I have been advised as follows:
a) As at 30 April 2023, the total outstanding Spaza Shops Support Programme (SSSP) beneficiaries who had not yet received the additional R7 000 grant were 504 nationally. During the month of May 2023, 426 beneficiaries of SSSP received their additional R7 000, and this has been confirmed with Nedbank. This means that to date only 78 beneficiaries ...
What are the reasons that the Small Enterprise Finance Agency as a development finance institution is enabling intermediaries to exploit the marginalised through exorbitant interest rates?”
I have been advised as follows:
That the interest rates between the Micro Finance Institutions (MFIs) and their clients are governed by the National Credit Act (NCA). All the Small Enterprise Finance Agency (sefa) funded MFIs charge interest rate that is within the rates prescribed by the NCA. However, both the clients and sefa acknowledge that the current rates are higher than ...
