The Department of Small Business Development (DSBD) has initiated the Shared Economic Infrastructure Facility (SEIF), a programme aimed at assisting small enterprises (including informal, micro, small and medium businesses as well as co-operatives) in improving their competitiveness and sustainability, to become integrated into the main economy. The SEIF is an instrument responding to the ecosystem identified Infrastructural needs through product markets, containers, SMME industrial hub etc. for potential, informal and operational entrepreneurs as articulated in the National Informal Business Upliftment Strategy (NIBUS); Integrated Strategy on the Promotion of Entrepreneurship and Small Enterprises (ISPESE); Cooperative Development Strategy. The programme is open to the following institutions to apply on behalf of the beneficiaries: municipalities, agencies of government, secondary cooperatives, private sector through a partnership with government, provincial government, and private entities. The instrument is a 50/50 cost sharing facility with a maximum funding of up to R15 million.
Through Seda the Department is providing infrastructure (machinery and equipment) via its Seda Technology Programme unit, which has a support programme called Technology Transfer Assistance (TTA) which supports SMMEs with machinery and equipment needed by SMMEs to grow their businesses. This takes the form of a grant of up to R1.2 million. Also, the incubation programme, provides infrastructure to SMMEs in various sectors to grow their businesses by giving them access to physical infrastructure needed. These are actual buildings, plant and equipment and skills development in the form of technical mentors in that particular sector.
Seda continuously reflects on how it positions itself and contribute meaningfully to the small business ecosystem and understand the importance of extending our services and offerings to SMMEs and Co-operatives. With limited resources, the agency continues to leverage on strategic partnerships and programmes that will stimulate economic growth, improve small enterprise performance, productivity, long-term sustainability whilst creating entrepreneurship awareness in these areas.
Through Seda’s access points, SMMEs and Cooperatives are provided with business related information, advice, consultancy, training, coaching, mentoring and business development interventions to improve their business performance. These services are aimed at providing solutions related to various business functions from production to human resources, finance, marketing, quality improvement and export development.
The Small Enterprise Finance Agency (sefa) as a development finance institution acknowledges the importance of long-term sustainability of small businesses as they are important in reducing inequality, poverty and unemployment. Through its financing programme, sefa is enabling SMMEs to expand and grow. As part of post-investment support services small business are provided with mentoring and business support. During the quarter 4 of the 2022/23 financial year, sefa initiated a business diagnostic project with 144 clients funded under the Township Rural Entrepreneurship Programme (TREP). The diagnoses conducted focused on the following:
The diagnostic results indicate the following:
sefa continually works with its clients to understand their challenges as to better support these businesses in growing the South African economy. Business support and mentoring are essential ingredients that add value to SMMEs and ensure their continued growth and sustainability in these trying economic times.