department of small business development presentation of the quarter one performance for 2015/16...

DEPARTMENT OF SMALL BUSINESS DEVELOPMENT

PRESENTATION OF THE QUARTER ONE PERFORMANCE FOR 2015/16 FINANCIAL YEAR

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Outline 1. Background and Purpose2. Executive Summary3. Quarterly performance information - Department of small business development (DSBD) - Small Enterprise Development Agency ( seda) - Small Enterprise Finance Agency (sefa) - South African Women Entrepreneur’s Network ( SAWEN) 4. Challenges5. Concluding Remarks6. Recommendations

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Background and Purpose• Purpose of the tabling performance report is to give an overview of the

activities of the department and its agencies for the first quarter of the current

financial year ( 2015/16) in line with Treasury Regulations 26.1.1, 26.1.2 and

30.2.1 and the Public Finance Management Act 1 of 1999;

• The report provides progress made on the implementation of set targets

against outputs and reasons for variance as per the requirements contained in

the DPME’s Framework for Strategic Plans and Annual Performance Plans; and

• To present and request the Portfolio Committee to note the first quarter

performance of the department and its agencies for the current financial year.

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Executive summary

Administration

-The department recorded a higher vacancy rate in the period under review and this was largely

attributed to the realignment exercise the department embarked upon to ensure the

deployment of staff to the critical positions such as Finance and HR;

-In relation to employment of people with disabilities and women at Senior Management level,

the department met the set targets and exceeded performance in relation to representation of

women at senior management level;

-The department processed payments of approximately 1773 of eligible creditors within 30 days

in the quarter against 1815 of the total invoices received. The variance of 42 was due to the

increase in the number of invoices received towards the end of June but they were all paid on the

1st of July;

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Executive summary Cont…

Cooperatives

-With regard to linkages and integration to market value chains 20 Cooperatives in

Limpopo and KZN were identified to be assisted through the programme;

-The department identified and initiated engagements with private sector companies that

are in productive sectors of the economy to incubate cooperatives; and

-Fewer number of cooperatives were supported through training and funding. This was as

a result of the department’s decision to implement the cooperatives model that was

approved by the PC;

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Enterprise Development

-373 informal traders were trained in four provinces, namely Free State, Eastern Cape, Mpumalanga and KZN;

-Through the New Venture Creation programme; KZN recruited over 1000 candidates to participate in the

programme;

-54 female owned entities were supported in the following provinces KwaZulu Natal, Limpopo, Gauteng ,

Mpumalanga and Eastern Cape;

-Implementation of the 30% set-asides programme is on track, draft regulations were issued by the National

Treasury for public comments and are scheduled to be signed off by the end of September 2015.

-Under the Black Business Supplier Development Programme, 221 enterprises were supported to the tune of

R60,7 million resulting in 7412 jobs supported of which 6321 are permanent and 1091 are temporary

Budget trends

Expenditure as at 30 June 2015, R220.2 million of the allocated budget of R1 103.1 billion. The year-to-date

projection was R311 million resulting in an under expenditure of R90.8 million.

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Enterprise Development

-The total of 2,174 Clients against the target of 2,553 received Seda support;

-70% of surveyed clients indicated an increase in turnover;

-45% of surveyed clients indicated an increase in the number of people employed;

-98% of satisfaction level from Seda supported clients

Cooperatives

- 20 Primary cooperatives established and supported;

- 13 Secondary cooperatives were supported;

- 13 One Municipality/ Village One Product (OMOP) programmes initiated

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Seda Technology Programme (STP)

-2,236 clients are supported by the Seda network of 48 incubators

-535 permanent jobs were created by incubated small enterprises, mostly in

agriculture and construction sector .

Budget Trends

Expenditure as at 30 June 2015, R144 443 million of the allocated budget of R610

364 million. The year-to-date projection was R196 500 million resulting in an

under expenditure of R52. 057 million

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Facilitating Access to Finance for SMMEs and Co-operatives

- Through the loan funding intervention, 24 568 SMMEs and Co-operative Enterprises supported comprising of the following targeted groups

• 5305 youth owned enterprises • 22 296 black –owned enterprises• 22 620 women owned enterprises• 22781 SMMEs and Co-operatives located in priority provinces.

-43% of the loan financing approved was to SMMEs located in priority economic sectors -78 % of the quarterly targets were met (21 out 27 performance indicators)

Budget TrendsExpenditure as at 30 June 2015, R46 646 million of the allocated budget of R320 039 million. The year-to-date projection was R47 929 million resulting in an under expenditure of R1. 3 million. During the quarter under review, sefa approved R204 million and disbursed R344 million of loan financing to SMMEs and Co-operatives.

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Programme 1: AdministrationStrategic objective :To facilitate radical economic transformation through increased participation of small businesses and cooperatives in the mainstream economy.

Outcome/ Output

Performance Indicator/ Measure

Annual Targets

for 2015/16

Q1Milestones

Actual Output

Reasons for variance Corrective action

Effective and efficient staff compliment

Vacancy rate 10% 12% 23 % The structure was approved at the end of April 2015. A realignment exercise was done in the first quarter and officials were moved to the positions in this quarter. All critical posts (HR and Finance) advertised

To source an external service provider to assist with pre-screening.

Staff turnover rate 12.0% 14% 2% Only 3 people left the organisation

N/A

People with disabilities

3.2% 3.2% 3.5% None N/A

Women employed at SMS level

45% 45% 48% None N/A

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Programme 1: AdministrationStrategic objective :To facilitate radical economic transformation through increased participation of small businesses and cooperatives in the mainstream economy.Outcome/ Output


Annual Targets for

2015/16

Q1Milestones

Actual Output


Effective and efficient finance service delivery

Eligible creditors payments processed within the legal requirement

Payments to eligible creditors processed within 30 Days.

Payments to eligible creditors processed within 30 Days.

1773 invoices were paid within 30 days during the period under review, 42 invoices were paid 1 day after 30 days

Due to a large number of Invoices received during the month of June 2015

Recruitment of Finance staff in progress

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Programme 1: AdministrationStrategic objective :To facilitate radical economic transformation through increased participation of small businesses and cooperatives in the mainstream economy.

Outcome/ Output


Annual Targets for

2015/16

Q1Milestones

Actual Output


Effective and efficient

marketing service delivery

Number of multi-media awareness campaigns

15 4 5 multi-media awareness campaigns

None n/a

Number of events, outreach programmes and exhibitions

8 events, 15 outreach programmes and 8 exhibitions.

2 events, 4 outreach programmes and 2 exhibitions.

10 events,11 outreach programmes,14 exhibitions

The Department is regularly invited by other government departments to their events to present on small business interventions

n/a

The department embarked on multi-media campaigns for the following key events/campaigns:Pre-Budget Vote awarenessBudget Vote SpeechWomen Imbizo in Bela-Bela, LimpopoYouth Enterprise Development programmes conducted in Nokaneng, Mpumalanga; Sekhukhune, Limpopo; Port St Johns, Eastern Cape and Sasolburg, Free State. These campaigns were covered in online media, print, radio, social media.

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Programme 2 : Co-operatives DevelopmentStrategic objective :To facilitate radical economic transformation through increased participation of small businesses and cooperatives in the mainstream economy.

Outcome/ Output


Annual Targets for 2015/16

Q1Milestones

Actual Output

Reasons for variance

Corrective action

Linking of 93 co-operatives

to market value chains

(manufacturing, agro-

processing, energy,

construction clothing and

textile)

An increase in the establishment of Co-operatives linked to market value chains

Pilot 3 co-operatives Projects linked Market Value

( Manufacturing, agro-processing,

energy, construction and

textile

Identify 3 Co-operatives and commodities.

20 Cooperatives in Limpopo and KZN were identified to be assisted through the programme.

None n/a

In the first quarter on this key performance indicator, cooperatives and commodities were identified, needs analysis and mobilization of market institutions for linkages were. 20 Cooperatives in Limpopo and KZN were identified to be assisted through the programme. Some of the commodities in the Agricultural sector identified include Maize, Dry Beans and Sweet Potatoes. In collaboration with Agricultural Research Council, 4 cooperatives are already supplying sweet potatoes to Fruit and Veg City stores. The following retail institutions were mobilised to secure markets for cooperatives: •South African Breweries•Fruits & Veg City in Partnership with Agricultural Research Council, Massmart and NTK Limpopo

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Outcome/ Output


Annual Targets for

2015/16

Q1Milestones

Actual Output Reasons for variance

Corrective action

Establishment of 50 Incubators.

An increase in the number of Incubators supporting Co-operatives

9 Incubators to support Co-operatives.

Identify and mobilise private sector businesses/stakeholders to incubate co-operatives.

Potential incubators have been mobilised as follows: Exxaro mining, Noordvaal, Retailer Motor Industry organisation (RMI),Starke Ayres, Mace Promotion & Vodacom

None n/a

A number of private sector institutions were approached to incubate cooperatives in different sectors. One company has already submitted a proposal to become an incubator, the application is in progress. The following companies were approached:•Exxaro mining,•Noordvaal (agriculture-Pretoria)•Retailer Motor Industry organisation (RMI)•Starke Ayres (agriculture-Kempton Park)•Mace Promotion & Vodacom (textile)

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Outcome/ Output


Annual Targets for

2015/16

Q1Milestones


Corrective action

Increased participation of role players to support SMMEs and Co-operatives development.

Development of amendments to the Act.

Consultation and tabling of proposed amendments

Consultative engagements

Three consultative engagements were held. The Department is engaging with DPME as this process has to go through the SEIAS

None n/a

Q1: Consultative engagements.

The Department of Small Business Development will embark on a comprehensive review of the Review of the National Small Business Act, 1996 (Act No. 102 of 1996), read with Amendment Act No. 26 of 2003 and Amendment Act No. 29 of 2004.The purpose of the review is to ensure that the Act is aligned to the mandate of the Department of Small Business Development and to identify additional gaps from industry in pursuit of covering all aspects of vagueness to be addressed.Q1 DELIVERABLE: CONSULTATIVE ENGAGEMENTS1. An internal consultation was held with departmental officials on 26 June 20152. An external consultation with sefa on 17 June 20153. An external consultation with seda on 29 June 20154. The process is going through the Socio-economic Impact Assessment System as prescribed by DPME

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Outcome/ Output


Annual Targets for

2015/16

Q1Milestones


Corrective action

2989 primary co-operatives receiving funding, training and access to markets.

Number of Primary Co-operatives receiving funding, training and access to markets.

214 53 5 primary co-operatives were funded through CIS. 8 Coops & Batlhaping Community provided with training

New CIS Adjudication Committee was appointed during the first quarter. Most of the applications received were not aligned to the PC approved cooperatives development model.

Capacity building commenced with SEDA and SEFA to enable the branches to assist with pre and post-investment support including the new cooperatives development model.

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Programme 2 : Co-operatives DevelopmentStrategic objective : To facilitate radical economic transformation through increased participation of small businesses and cooperatives in the mainstream economy.

Outcome/ Output


Annual Targets for

2015/16

Q1Milestones


Corrective action

22 Secondary Co-operatives funded.

Number of Secondary Co-operatives funded.

1 Secondary Co-operative receiving funding, training and access to markets.

Consultative engagements

Consultations with agencies and partner departments to ensure that funding is directed towards sustainable projects.

None N/A

-DAFF (post harvest losses)-Rural Development (APAP, Agrihubs)

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Outcome/ Output


Annual Targets for

2015/16

Q1Milestones


Corrective action

Formulation of a National SMME and Co-operatives Development Framework.

Implementation of the National SMME and Co-operatives Development Framework.

Quarterly coordination and reporting on the framework activities.

One quarterly Task Team meeting.

A report on the Task Team activities produced.

The Task Team meeting took place on 30 June 2015.

A report was produced on the task team activities of the framework

None N/A

The National SMME and Co-operatives Development Framework is coordinated through the MinMEC Task Team comprises of DSBD, EDD, the dti, Provincial Departments of Economic Development and National Small Business Agencies.

The meeting focused on the following:1. National SMME and Co-operatives Development Framework and aligning the activities to the strategies of the various organisations to ensure alignment.2. The development of provincial indicators which was facilitated by the Presidency - DPME and EDD 3. The establishment of provincial foreign national task teams4. 30% set-aside procurement programme5. National Informal Business Upliftment Strategy6. Concept document for the Business Rescue Strategy 7. Co-operatives Development Model8. Centres for Entrepreneurship

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Programme 3: Enterprise Development and Entrepreneurship

Strategic objective : To facilitate radical economic transformation through increased participation of small businesses and cooperatives in the mainstream economy.

Outcome/ Output


Annual Targets for

2015/16

Q1Milestones


Corrective action

400 start-ups and growth oriented SMMEs and Co-operatives that access the Fund

Increased number of SMMEs and Co-operatives that have been financed through the Fund.

Develop a business case for disbursing the funding and lobby the private sector to contribute to the Fund.

Develop a business case for the Fund.

A business case for establishing an enterprise and supplier development fund developed.

None N/A

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Outcome/ Output


Annual Targets for

2015/16

Q1Milestones


Corrective action

25 SMMEs and Co-operatives packaged as micro franchisors.

Accelerated identification and packaging of SMMEs and Co-operatives into franchisors.

5 SMMEs packaged as micro franchisors

Prepare a submission for approval to procure a service provide to package the businesses

Submission to procure a service provider to package profitable businesses as micro franchisors was prepared

None N/A

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Strategic objective :To facilitate partnerships with all spheres of government as well as the private sector to ensure mutual cooperation that will benefit small businesses and co-operatives

Outcome/ Output


Annual Targets for

2015/16

Q1Milestones


Corrective action

Signing of MoAs and establishment of Centres for Entrepreneurship with hosting academic institutions

Signing of MoAs and establishment of Centres for Entrepreneurship with hosting academic institutions.

3 Centres for Entrepreneurship established.

Assessment reports completed with targeted hosting institutions

Assessment reports providing an in-depth analysis of three potential host institutions were finalised.

None N/A

Assessment reports providing an in-depth analysis of three potential institutions to host the Centres for Entrepreneurship in Limpopo, Free State and the Eastern Cape were concluded.

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Strategic objective :To facilitate partnerships with all spheres of government as well as the private sector to ensure mutual cooperation that will benefit small businesses and co-operativesOutcome/ Output


Annual Targets for

2015/16

Q1Milestones


Corrective action

72 SEDA Branches trained and 140 co-location points established.

Capacity building and co-location for SEDA Branches.

25 co-location points established.

5 co-location points established.

4 co-location points were established in various provinces, namely; Gauteng, Western Cape and Northern Cape. Steering committee established to drive this work

Consultations took longer than expected and impacted on the delivery

To rollout capacity building workshops to other provinces and fasttrack the rollout.

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Strategic objective :To facilitate partnerships with all spheres of government as well as the private sector to ensure mutual cooperation that will benefit small businesses and co-operatives

Outcome/ Output


Annual Targets for

2015/16

Q1Milestones


Corrective action

All municipalities partnering with the DSBD.

Establishment and upgrading of infrastructure through Partnership Agreements with Provincial and Local Governments.

Establishment of new and upgrading of existing infrastructure in 5 identified municipalities commenced and completed.

Consider applications from local and provincial governments.

The Shared Economic Infrastructure Facility (SEIF) programme has received three (3) proposals two (2) from Limpopo and one (1) from Eastern Cape.

None N/A

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Strategic objective:To advocate for a conducive regulatory environment for small businesses and co-operatives to enable access to finance, investment, trade and market access in an equitable and sustainable manner.

Outcome/ Output


Annual Targets for

2015/16

Q1Milestones


Corrective action

750 Youth Enterprises funded through the Youth Black Business Supplier Development Programme (Lifted from the National Youth Enterprise

Increased number of youth enterprises funded through the Youth Black Business Supplier Development Programme (YBBSDP).

20 beneficiaries to the Youth Black Business Supplier Development Programme.

Communication to Provincial stakeholders on the criteria for funding and provincial targets.

Engagements undertaken with various provinces

None N/A

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Strategic objective :To advocate for a conducive regulatory environment for small businesses and co-operatives to enable access to finance, investment, trade and market access in an equitable and sustainable manner.

Outcome/ Output


Annual Targets for

2015/16

Q1Milestones


Corrective action

800 Youth enterprises launched.

Increased creation of Youth owned enterprises.

100 youth trained in New Venture Creation programme.

Recruitment of 100 candidates from each of the 9 Provinces Module.

Consultations with provinces undertaken to get their buy-in on the programme. KZN has already recruited 1000 candidates for this programme

Consultations with other provinces took longer

To expedite the consultations where uptake has been low

- Programme integrated into the National Youth Policy 2020

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Outcome/ Output


Annual Targets for

2015/16

Q1Milestones


Corrective action

Implementation of the Women Business Development Scheme ( WBDS)

Increased number of enterprises approved for the Women Business Development Scheme (WBDS).

82 women entrepreneurs supported.

20 women entrepreneurs supported.

54 women owned enterprises supported

The amounts approved were of smaller value and the department was able to support more women owned enterprises than projected

N/A

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Outcome/ Output


Annual Targets for

2015/16

Q1Milestones


Corrective action

Implementation of Bavumile Skills Development Programme

Number of women entrepreneurs trained through the Bavumile Skills Development Programme.

300 women entrepreneurs trained.

75 women entrepreneurs trained.

31 women entrepreneurs trained

Limited number of service providers (trainers) who can provide accredited training.

Fibre Processing & Manufacturing Seta approached for an updated list of accredited service providers who will be registered on the database

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Outcome/ Output Performance Indicator/ Measure

Annual Targets for

2015/16

Q1Milestones


Corrective action

10 000 informal business owners selected from each province for training and infrastructure support prioritising Presidential Nodes through the Informal Business Upliftment Facility (IBUF).

An increase in the provision of skills and infrastructure support to informal businesses through the Informal Business Upliftment Facility (IBUF).

Training and infrastructure improvement of 1000 informal retail businesses completed.

Training of 250 selected informal traders.

Finalisation and approval of IBUF guidelines.

Training of 373 informal traders took place in four provinces, namely Free State, Eastern Cape, Mpumalanga and KZN

IBUF guidelines undergoing review process to accommodate the mandate of the department

N/A

Consultations with the stakeholders including alignment with the mandate of the department

N/A

Finalise the guidelines for approval by the Minister in the second quarter

The content of the training includes the following 9 modules; Entrepreneurship, Marketing your business, Customer care, Financial management, Purchasing skills, Regulatory and By-law compliance, Hygiene and Food Safety, Merchandising, as well as Point of sale.

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Strategic objective :To advocate for a conducive regulatory environment for small businesses and co-operatives to enable access to finance, investment, trade and market access in an equitable and sustainable manner


Annual Targets for 2015/16

Q1Milestones

Actual Output

Reasons for variance

Corrective action

Red tape reduction guidelines institutionalised at all state institutions

Local and Provincial Government implementation of red tape reduction programme.

Continuous roll-out of the Red Tape Reduction guidelines at municipal level.

Monitoring framework for implementing of the municipal red tape reduction guidelines

Commission a study to develop guidelines for the reduction of sector specific red tape, focusing on reducing delays and regulations impacting on investment opportunities at Provincial level

One red tape reduction roll-out workshop for 42 participants conducted in Limpopo within the month of June represented by 7 local municipalities

The study was delayed to incorporate tasks provided by the Socio-economic workstream after the formation of the Inter-Ministerial Committee on Migration

IMC on migration inputs incorporated and the study to be commissioned in the next quarter

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Strategic objective :To 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.


Annual Targets for

2015/16

Q1Milestones


Corrective action

Implementation of the set-asides programme

Government-wide implementation of set-asides programme.

Issuing of the practice note and monitoring of effective implementation of the 30 % set-asides programme.

Issuing of the practice notes and monitoring of effective implementation of the 30 % set-asides programme.

Draft PPPFA 2015 regulations issued for public comments

National Treasury issued draft regulations for public comments

Regulation sign off scheduled for the end of September as per the target date

The draft regulations issued by the National Treasury for public comments. The regulations are on their own practice guidelines for targeted groups for procurement preference.

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Strategic objective :To 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.


Annual Targets for

2015/16

Q1Milestones


Corrective action

1350 craft enterprises supported through product development, market access and enterprise development initiatives.

Number of enterprises and implementing agencies supported to implement the Craft Customised Sector Plan (CSP).

Sign MOUs with 5 implementing agencies and to support 450 enterprises through the implementing agencies.

5 Business plans approved and funding disbursed to 5 implementing agencies.

Five Craft CSP business plans were evaluated and approved for Craft CSP joint implementation by the CCDI, ECDC, FDC, NCEDA and GTA. Approval for IDC to contract and disperse funding was secured and communicated to the IDC.

Delays in the contracting process between IDC and Provincial Agencies

IDC to be requested to urgently expedite the contracting and disbursement process, through the office of the DG in the second quarter

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Budget-YTD projection vs expenditure

Programme Budget 2015/16

Year-to-date (YTD)

Available budget

% budget available

YTD

Cash flow projections

YTD Expenditure

Variance (Budget less expenditure)

% variance

R’000 R’000

R’000

R’000

%

R’000

%

Administration 64 025 13 220 9 433 3 787 28.64% 54 592 85.27% Co-operatives Support and Development 15 188 3 724 2 554 1 170 31.41% 12 634 83.18% Enterprise Development and Entrepreneurship 1 023 975 294 131 208 298 85 833 29.18% 815 677 79.66% Total 1 103 188 311 075 220 286 90 789 29.19% 882 902 80.03%

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Budget – Transfers Payments

Programme Budget 2015/16

Year-to-date (YTD)

Available budget

% budget available

YTD

Cash flow projections

YTD Expenditure

Variance (Budget less expenditure)

% variance

R’000 R’000

R’000

R’000

%

R’000

%

Small Enterprise Development Agency 478 183 148 500 99 000 49 500 33.33% 379 183 79.30% SEDA Technology programme 132 181 48 000 32 000 16 000 33.33% 100 181 75.79% IDC Isivande Women's Fund 8 751 0 0 0 0.00% 8 751 100.00% Black Supplier Development Programme 225 000 51 750 60 761 -9 011 -17.41% 164 239 73.00% Co-Operatives Incentive Scheme 75 000 16 750 1 207 15 543 92.79% 73 793 98.39% South African Women's Entrepreneur Network 16 726 8 363 0 8 363 100.00% 16 726 100.00% Households 0 0 40 -40 0.00% -40 0.00% Total 935 841 273 363 193 009 80 354 29.39% 742 832 79.38%

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SEDA

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Performance against the Seda APP

Overview

– Operational plans finalised for the year.

– Audit of financial statements and performance information by

the Auditor-General conducted.

– Out of a total 26 indicators with targets for the quarter,

performance was achieved on 14 indicators.

– Challenges were experienced due to a higher than anticipated

resignation of Business Advisors. This is being addressed by

recruitment and capacity building.

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Performance against the Seda APPStrategic objective 1 : Enhance the Competitiveness and Capacities of Small Enterprise Through Coordinated Services, Programmes and ProductsOutcome/ Output


Annual Targets

for 2015/16

Q1Milestones

Actual Output


Client satisfaction ensured

% of surveyed clients satisfied with quality of Seda services

94% 94% 98% Performance due to improved management of service level agreements with business development services providers.

None.

Client business performance improved

% of surveyed SMME clients whose turnover has increased (Growth)

54% 54% 70% Improved turnover of clients that were able to access new markets through interventions such marketing and signage, website development, exhibitions and marketing plans.

None

% of surveyed SMME clients whose number of employees has increased (Growth)

35% 35% 45% Performance by clients assisted in the services sector and a significant number of start-ups that have become operational

None

Narrative: •Seda during the quarter under review, maintained its high levels of client satisfaction and turnover and employment growth. These can be attributed to improved management of enterprise development projects, and ability of assisted clients to access to new markets. •A number of start ups, particularly in the more urban provinces of KwaZulu Natal, Gauteng and Western Cape became operational and registered an increase in number of people employed.

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Performance against the Seda APPStrategic objective 1 : Enhance the Competitiveness and Capacities of Small Enterprise Through Coordinated Services, Programmes and ProductsOutcome/ Output


Annual Targets

for 2015/16

Q1Milestones

Actual Output


Number of supplier development programme partnerships

Number of supplier development programme partnerships

5 3 0 Discussions initiated various organisations and not concluded within the quarter under review.

Finalise discussions with partners such as Productivity SA and the South African Suppliers Development Council. Work with the DSBD and Sefa on agreements with state owned entities.

Number of clients supported under supplier development programme

Number of clients supported under supplier development programme

75 15 19 Clients assessed and adopted for supplier development in previous financial year who continue to receive assistance resulted in over performance.

Intake of clients to be normalised in the subsequent quarters

Number of clients supported with trade facilitation

Number of clients supported with trade facilitation

75 15 19 Trade facilitation performance positively affected by clients who have successfully gone through the Seda export development programme

Intake of clients to be normalised in the subsequent quarters

Narrative: •Supplier development initiatives should gain momentum in the subsequent quarters, as the 30% procurement programme is institutionalised, and transversal agreements are signed with other public sector institutions. •Productivity SA expected to be a key partner, as most clients will need to improve their productive capacity. •Despite the constrained global economic situation, clients are still able to enter into export contracts, largely for the African and European markets.

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Strategic objective 1 : Enhance the Competitiveness and Capacities of Small Enterprise Through Coordinated Services, Programmes and ProductsOutcome/ Output


Annual Targets

for 2015/16

Q1Milestones

Actual Output


Number of clients supported with mentorship and coaching

Number of clients supported with mentorship and coaching

75 15 9 Reduced support on mentorship and coaching as client businesses needed other interventions before mentorship. The performance is expected to improve as clients request subsequent interventions.

Discussions initiated with the private sector stakeholders who are willing to provide mentorship support to supplement Seda offerings

Number of clients trained on national and international standards

Number of clients trained on national and international standards

536 110 167 Target exceeded due to requests from Seda branch clients.

Intake of new clients to be normalised in the subsequent quarters

Narrative: •Assessments of Seda clients have indicated that most need support on areas such as financial management, marketing and access to markets and mentorship and coaching to be introduced as follow up support. Mentorship and coaching is also an expensive intervention, and is only provided after certain preconditions have been met. •The anticipated increase in the number of clients under the supplier development programme will also result in increased need for mentorship and coaching. •Training on national and international standard such as ISO and HAACP has become a necessity for clients wishing to enter supplier contracts with established business.

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Strategic objective 2: Ensure equitable access to business support services

Outcome/ Output


Annual Targets

for 2015/16

Q1Milestones

Actual Output


Client reach improved

Number of clients working with

11,400 2,533 2,174 Staff shortages in provinces such as KwaZulu Natal, Limpopo and Gauteng due to resignations of practitioners.

Plans underway to recruit and train new practitioners.

Number of clients in the upper end of the SMME sector assisted with interventions

Number of clients in the upper end of the SMME sector assisted with interventions

372 93 48 Most branches, particularly those in rural provinces did not have clients in this category during the quarter under review.

Effort will be made towards attracting clients from the upper end of the SMME sector going forward, and also allocating targets based on regional demographics.

% of clients in the priority growth sectors assisted with interventions

% of clients in the priority growth sectors assisted with interventions

40% 40% 91% The indicator is being measured for the first time in 2015/2016, and no baseline was established..

The performance will be analysed at the end of the third quarter and target revised for subsequent years

Narrative: •Number of clients that Seda works with is dependent on the number of business advisors, as there is a client: Business Advisor ratio to be maintained to ensure quality services. •Seda’s strategy going forward seeks to strike a balance between the very small and micro enterprises, and the small and medium sized enterprises, which addresses both the high mortality rate of start ups and the job creating challenge which is expected to be addressed by those at the small and medium level.


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Narrative: •Number of clients working correlates to the number of branches and number of Business Advisors.•The effect of the resignations of Business Advisors in Limpopo, Mpumalanga and Gauteng can be seen in the performance of these three provinces. •Western Cape has benefitted from the expanded network brought about by the incorporation of the Red Door programme.

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Out of the 2,174 clients working with:

•93% are black owned businesses.

•49% are female owned businesses.

•40% are youth owned businesses.

•1% are owned by people with disabilities.


Narrative:

•Seda hosts events, in partnership with various stakeholders, the seek to create a client portfolio that matches the

demographics of the particular area. These events, with a focus on a particular demographic, are usually run in alignment

with other priority programmes, for example youth focus in June.

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Narrative:

•Four provinces, namely Eastern Cape, KwaZulu Natal, Mpumalanga and North West contributing largely in this regard.

These are provinces with a notable manufacturing sector, in area such as Uitenhage, Richards Bay, Witbank/Middelburg

and Brits.

•Going forward, Seda will make efforts to increase and spread the profile across all provinces, as these are the clients that

are in a position to benefit from market access partnerships. 42

Performance against the Seda APPStrategic objective 2: Ensure equitable access to business support services

Outcome/ Output


Annual Targets

for 2015/16

Q1Milestones

Actual Output


Number of primary cooperatives established

Number of primary cooperatives established

90 22 20 Marginal under performance due to Regional Facilitator vacancies in the Northern Cape.

Process to recruit the two regional facilitators to be completed in the 2nd quarter.

Number of secondary marketing cooperatives supported

Number of secondary marketing cooperatives supported

36 8 13 Projects mobilised from last financial year continued to receive support during the quarter under review.

None

Number of clients supported through Basic Entrepreneurial Skills Development programme

Number of clients supported through

Basic Entrepreneurial

Skills Development programme

1000 200 0 The first quarter focused on mobilising clients for the programme. Nearly 1,000 clients have been identified as suitable for the programme

These are expected to receive support in the second quarter, which will address the underperformance.

Narrative: •Seda’s flagship programmes in working with rural and peri-urban co-operatives are primary co-operative mobilisation and establishment, and establishment and support of secondary co-operatives that focus mostly on marketing and sharing of capital equipment. •The BEDS programme is a collaboration with the Department of Higher Education and GIZ, a German agency on equipping a pool of 1,000 this year with business development support skills.

43



Outcome/ Output


Annual Targets

for 2015/16

Q1Milestones

Actual Output


Cost sharing with delivery partners maintained

Value of service delivery costs

covered by delivery partners

R10,3 mil

R 2 mil R1,4 mil While partners have committed approximately R5,5 million during the quarter, programmes to utilise these funds are spread throughout the financial year.

Funds to be realised as income once utilised in subsequent quarters.

Narrative: •Partner institutions with funding for small enterprise and co-operative development related programmes but without the capacity to implement the programmes, work with Seda where Seda implements the programme with the funder paying for the cost of implementation. Examples are the Red Door programme in the Western Cape which has now been incorporated into the Seda network, small enterprise start-up training, etc.

44


Strategic objective 3: Strengthen the organisation to deliver on its mission. Outcome/ Output


Annual Targets

for 2015/16

Q1Milestones

Actual Output


Cost efficiency improved

% of direct service delivery costs versus total delivery costs

73% 82.35% 85.52% Minor deviation, which should adjust once major projects that are centralised at national office get implemented.

None.

% of deviations of actual expenditure from approved budget

5% 5% 21.56% underspen

d

Under expenditure due to salary increases not effected yet, and the time difference between project initiation and payment of service providers.

Salary negotiations and milestones on key projects to be finalised/reached during the quarter and payments made.

% of programme related funding allocated to clients in the upper end of the SMME sector

15% 15% 9% This is due to a fewer number of clients in the upper end that were supported by the branches in this category.

Effort will be made towards attracting clients from the upper end of the SMME sector going forward, and also allocating targets based on regional demographics.

Narrative: •Seda aims to allocate resources in a way that seeks to effectively implements its strategy, while keeping actual expenditure as close to budgeted expenditure as possible. •A new measure that’s was introduced relates to tracking the proportion of programme related funds that are spent on high impact programmes, with the aim of striking a balance between these programmes and the programmes required at start up level. External partnerships are expected to play a significant role in augmenting the funds for the high impact programmes. 45

Performance against the Seda APPStrategic objective 3: Strengthen the organisation to deliver on its mission.

Outcome/ Output


Annual Targets

for 2015/16

Q1Milestones

Actual Output


Organisational staffing

improved

Vacancy rate 12% 12% 12% None None

Seda image improved

Annual stakeholder forum held

ASF held by

end Septem

ber

ASF held by end

September

0 Not due this quarter None

Number of updates on the SMME sector produced

2 0 0 Not due this quarter, due in the 2nd and 4th quarters.

None

Narrative: •Seda has recently finalised a project that seeks to align its structure with its strategy. This process had the short term effect of a high vacancy rate as recruitment was put on hold till the structure was approved. Recruitment has been prioritised for the last four months, and the vacancy rate is currently at 12% which is a decrease from 14% in the 2014/15 financial year, which is close to the market average of about 10%. The long tem strategy is to keep it below 10%. Initiatives such as staff retention plans, identifying and managing scarce and critical skills, will play a material role in this regard.

46



Outcome/ Output


Annual Targets

for 2015/16

Q1Milestones

Actual Output


Incubation support enhanced

Number of incubators supported

55 49

48 Division focused on finalising plans for the 2015/16 financial year, and ensuring support of already supported incubators.

New incubator support to be prioritised in the 2nd quarter.

Client satisfaction ensured

% of surveyed clients satisfied with quality of Seda services

72% None None Not due this quarter None.

Client business performance improved

Number of jobs created

1,650 330 535 More jobs than anticipated created by the agriculture and construction incubated clients.

None. The increased market access for incubation clients in these sectors was not planned. Effort will be made in sustaining it.

Narrative: •Increasing the footprint of supported incubators is key to creating sustainable small enterprises. Seda aims to create incubators in sectors that have been prioritised as growth sectors, mostly working in partnership with provincial and local government.•Incubation support, by design, creates jobs that can be attributed to it, due to its holistic, fulltime support. Most of the jobs are created during the second and third years of incubation.

47

Narrative:

•Performance of agriculture linked to the seasonality of the sector. The performance of the construction incubator can be

attributed to the model which also includes securing contracts for the incubated small enterprises.

•Some incubators have also taken on a new group of incubatees, and the jobs are expected to be created during the second

and third years of incubation.

48


Strategic objective 3: Strengthen the organisation to deliver on its mission. Outcome/ Output


Annual Targets

for 2015/16

Q1Milestones

Actual Output


Client support services provided

Number of clients supported

1,881 1,881 2,236 Performance higher due to intake of new clients.

Performance should level out during the year as clients graduate from the incubators.

Number of new SMMEs created

331 82 104 Incubators in the Mining, Beneficiation, Agriculture and Metal Fabrication sectors were able to convert a higher number of potential entrepreneurs into incubated start ups.

None. The performance should level out during the course of the year, once the incubators reach full capacity levels.

Technology transfer programme implemented

Number of clients assisted with technology transfer incentives

66 15 8 Process to finalise approvals of 24 applications initiated, and not finalised in time for adjudication panel as some equipment has to be sourced overseas.

Remaining 18 proposals to be assessed and finalised in the second quarter.

Narrative: •Incubation, unlike the Seda branch network provides support for clients on a daily basis in the form of subsidised premised and episodic, needs based business development support.•Seasonality in sectors has short term effects on small enterprise and job creation. A balanced portfolio of sectors ensures results in performance throughout the year.

49

Narrative: •There is a positive correlation between the number of clients supported and number of jobs created per sector.

•What is worth noting is the cost to support a client, which tends to be lower in sectors such as agriculture and agro

processing.

50


Strategic objective 3: Strengthen the organisation to deliver on its mission.

Outcome/ Output


Annual Targets

for 2015/16

Q1Milestones

Actual Output


Conformity Assessment and Product testing and Certification

Number of clients supported

144 30 8

Business health checks to inform client needs scheduled for the second quarter

None

Number of clients supported with systems implementation

Number of clients supported with systems implementation

34 6 9 Target exceeded due to increased demand for Quality Management Systems.

None

Narrative: •Seda implements the above programmes in collaboration with government entities such as South African Bureau of Standards and the National Regulator for Compulsory Specifications. The process tends to stretch across quarters, and performance registered as such once the process has reached completion.

51


sefa

52

sefa Performance against the APP

Objective Measure Annual Target Q1 - Milestone Actual Output Reasons for Variance Corrective ActionTotal Approvals through Wholesale and Direct Lending portfolios R 1 267 124 790 R 253 424 958 R 159 588 077Total Approvals via Direct Lending R 540 600 000 R 108 120 000.00 R 109 208 877

Total Approvals via Wholesale Lending R 726 524 790 R 145 304 958.00 R 95 379 200

Total Disbursements to SMMEs via all loan product channels R 885 400 000 R 177 080 000.00 R 344 197 250Approvals in terms of productive to industrial sectors identified in IPAP and NGP 20% R 35 416 000.00 R 90 038 700Number of SMMEs financed 41 798 8 360 24 568Number of Jobs facilitated 67 912 13 582 41 132Facilities disbursed must be youth-owned - 18-35 years old R 265 620 000 R 53 124 000.00 R 67 458 633Facilities disbursed to enterprises in rural and peri-urban areas R 398 430 000 R 79 686 000.00 R 150 934 632Facilities disbursed must be women-owned businesses R 398 430 000 R 79 686 000.00 R 133 612 454Facilities disbursed must be black-owned businesses R 619 780 000 R 123 956 000.00 R 246 918 970Facilities less than R250K disbursed to end-users R 177 080 000 R 35 416 000.00 R 77 778 685Facilities to People Living with Disabilities R 17 708 000 R 3 541 600.00 R 5 196 454

Level of Customer Satisfaction 60% 60%

Measurement will take place from the 2nd Quarter

Strategic Objective 1: Increase access and the provision of finance to SMMEs and contribute towards job creation

Access to finance by SMMEs and development Impact

First quarter approvals was influenced by the financial year-end activity. There is however a strong application pipeline that has been developed in the first quarter

Conversion of the application pipeline into approvals

Overachievement principally relates to the performance of the micro enterprise loan book via our partner institutions

• Update continue next page

53

sefa Performance against the APP• Approvals and disbursements represent 16% and 38% of the annual target.• Microenterprises (informal sector) represent 98% of the SMMEs and co-operatives financed whilst it

represent 63.6 % of the jobs created or maintained.• A total of 5305 youth-owned business, 22 296 black-owned, 21 940 women-owned, 22 620 SMMEs and co-

operatives in priority provinces has been financed• The facilities disbursed to people living with disabilities are black owned enterprise and operate in the

construction/ engineering sector• To increase funding to people living with disabilities, an outreach and partnership programme with

organisations representing people living with disabilities is being implemented to develop and source viable business proposals

• sefa provides ongoing funding to Co-operative Financial Institutions (CFIs) who in turn on-lend to members and micro enterprises. (157 enterprises benefited from the loan programme in the first quarter).

• To improve lending to co-operative enterprise the following financing programme is under implementation and is premised on a value-chain approached and focusses on:

• Agriculture • Development of low-cost franchising concepts such as brick-making co-ops, community bakeries, etc.• Bulk buying programmes• Member funds mobilisation• Building and strengthen of secondary to negotiate off-agreements• Business support to co-operative enterprises

• Approvals in priority sectors (ICT, Mining, Manufacturing, Agriculture and Tourism) represents 35% of the annual target of R253 million.

54


Objective Measure Annual Target Q1 - Milestone Actual Output Reasons for Variance Corrective ActionCost to income ratio (excluding Impairments & finance charges and the effects of the grant subsidy)

157% 150% 135%

Overachievement is due to implmentation of stringent cost containment and under expenditure on certain budgeted items

Accumulated Impairment provision as a percentage of total loans and advances – wholesale SME

17.50% 17.50% 12%

Overachievement due to the quality of SME wholesale partner institutions (Funds, etc.) loan book.

Accumulated Impairments provision as a percentage of total loans and advances – wholesale Microfinance

10.90% 10.90% 21%

Deviation relates to three Microfinance Institutions who are in the process of liquidation or winding down

Strengthen our post investment function (Investment Monitoring Committee, Collections and building the capacity of

Building sefa financial

sustainability

Strategic Objective 2: Build an effective and efficient sefa that is sustainable and performance driven

55

• Update continue next page


Objective Measure Annual TargetQ1 -

MilestoneActual Output Reasons for Variance Corrective Action

Accumulated Impairments provision as a percentage of total loans and advances – Direct Lending

39% 39% 49%

Economic conditions directly impact on the economic performance of the SMMEs.

Growth in interest and admin fees generated from loans

76% 20% 70%

Overachievement is due high level of disbursements and income from Joint Venture Funds

56


• The impairment ratio is directly impacted by the tough economic conditions in which SMMEs and co-operative operate in. In addition most of the sefa loans are not supported by any form of collateral.

• To improve the management of impairment, especially within directly lending, we introduced the following measures:

• Improve mentoring and post-investment assistance to clients• Implement Collections & Post Investment Monitoring Strategy • Improved due diligence quality• Obtaining cessions from government entities• Re-define targets for individual staff members• Reconsideration of investment guidelines/ credit policy &

procedures• Improving Credit Committees• Book segmentation (“Priority List”) 57


Objective MeasureAnnual Target Q1 - Milestone Actual Output Reasons for Variance Corrective Action

Number of days bridging loans 10 days 10 days 28 daysNumber of days for terms loans

20 days 20 days 34 daysNumber of days for wholesale applications

50 days 50 days 38.5 days

Overachievement relates to the quality and number of the applications

System Availability

Uptime/availability of critical business information systems

99.90% 99.90% 99.99

Achievement relates the robustness of the IT network and infrastructure

System Development

Enhancement to sefaLas and the development of portfolio management system facilitate better reporting on the quality of the sefa loan book.

User Requirement Analysis

Intermediary reporting portal reporting has been developed and will be rolled out in the 2nd quarter

Improve turnaround times for

application approvals

This is a function of internal factors (such as due dilligence capacity, systems and management information issues)as wells as external factors (such as incomplete information from clients)

Strategic Objective 2: Build an effective and efficient sefa that is sustainable and performance driven (cont.)

Building and investing in Investment Officer's due-dilligence capacity and completed direct lending systems and procedure

58


• Turnaround times represent the timeframe from application

to approval. Turnaround times is directly impacted by the

completeness of client documentation at application phase.

The turnaround times continues to remain a challenge for

the business. However there is a downward trend to 34 days

and 28 days for term and bridging facilities respectively in

comparison to the previous financial year.

• A total number of 189 applications was processed.

• 186 Direct Lending

• 3 Wholesale Lending (to partner institutions).59


• 1st Quarter Human Resources work programme was concentrated on finalising the 2014/15 performance assessment and collective bargaining negotiations with the organised labour

Objective MeasureAnnual Target

Q1 - Milestone Actual Output Reasons for Variance Corrective Action

Labour Turn Over Rate (LTO) of critical/ strategic positions 7% 7% 6%

Achievement relates to the stability of the internal operations environment

80% of Staff have Individual Development Plans (IDPs) received and implemented 80% 80%

Formal Performance management assessments of all staff conducted by 31 March 2016 for the period ending.

100% 0%

Alignment, Development

and Motivation of Human

Capital

Performance Target setting is in progress and will be finalised end August 2015

Strategic Objective 2: Build an effective and efficient sefa that is sustainable and performance driven (cont.)

60

sefa disbursements per Province

sefa Provincial Spread Disbursements: Q1

ProvinceTotal disbursed in

Q1Disbursed to

BlacksDisbursed to

YouthDisbursed to

WomenLess than R250K

disbursedDisbursed to

Priority ProvincesEastern Cape

16 935 516 14 620 893 4 387 768 13 437 866 7 936 021 16 935 516Free State

22 084 616 11 980 277 1 571 868 4 090 066 1 549 360 22 084 616Gauteng

95 864 230 67 930 435 22 225 445 24 679 355 4 699 212 0Kwazulu Natal

22 352 744 20 711 544 7 449 143 5 581 436 3 968 558 0Limpopo

54 970 557 48 066 081 11 666 947 38 919 417 29 261 760 54 970 557Mpumalanga

43 473 618 42 084 100 5 823 785 20 071 756 18 206 871 43 473 618Northern Cape

3 638 924 3 638 924 1 147 177 915 803 491 777 3 638 924Northwest

15 987 477 13 128 850 1 515 059 12 861 606 9 064 451 15 987 477Western Cape

28 274 783 17 332 593 3 746 367 5 198 378 1 908 174 0Not Allocated

40 614 785 21 183 118 10 906 705 14 150 780 0 0

Total Disbursed 344 197 251 260 676 815 70 440 265 139 906 461 77 086 185 157 090 708

61* Not allocated line item must still be reconciled.


SAWEN

62

Performance against the SAWEN ( APP) – BUSINESS PLAN

An internal restructuring exercise was finalised in April 2015 and four new staff members were recruited in June 2015.

SAWEN presented to the Portfolio Committee of The Department of Small Business Development and the business plan went through a modification process to align to the department’s mandate and greater emphasis was placed on reporting on impact.

In terms of members exposure, a SAWEN delegation participated in the Global Summit of Women in Sao Paolo, Brazil in May 2015.

Various training and capacity building interventions took place during the quarter.

Members participated in 4 exhibitions during the quarter. Networking sessions were conducted in seven provinces during the

quarter.

63

Performance against the SAWEN APP – BUSINESS PLAN

Programme : PhakamaStrategic objective 1 :To provide a national vehicle that brings together women and women’s groups to address the challenges faced by women entrepreneursOutcome/ Output


Annual Targets for

2015/16

Q1Milestones

Actual Output


Implementation of the Marketing Strategy

Implementation of the Marketing Strategy

Overarching Marketing Strategy

document implemente

d

Draft Marketing Strategy

document presented

to the board.

Approval of the Strategy

by the Board

Target met None

Outreach activities conducted and reports produced

Number of outreach activities conducted and report produced.

12 outreach activities

conducted and reports produced

3 outreach activities

conducted and report produced

3Outreach

activities were

conducted

Target met None

Narrative: •The overarching strategy was presented to the Board for approval. The strategy is significant to guide the organisation on aspects such recruitment of members, fundraising, employment of marketing platforms that are cost effective whilst expanding SAWEN’s reach. •Three ( 3) outreach activities were conducted in Western Cape ( 2 Hermanus and Khayelitsha) and the Northern Cape (Springbok )

64




Annual Targets for

2015/16

Q1Milestones

Actual Output


National and Provincial networking sessions conducted and reports produced

Number of members networking sessions conducted and reports produced

36 networking sessions

conducted and reports produced


conducted


conducted

Lack of capacity and unavailability of venues

2 additional networking sessions will be convened in Q2 & Q3

Provincial AGM conducted and report produced

1 Provincial AGM

conducted

1 Provincial

AGM conducted and report produced

1 Provincial AGM

conducted and report

produced

Target met None

Narrative:

Networking sessions were conducted in Eastern Cape, Free State, North West, Mpumalanga, Western Cape, Northern Cape, Northern Cape

The Gauteng Provincial AGM was convened and a new Provincial Executive Committee was elected.

65




Annual Targets for

2015/16

Q1Milestones

Actual Output


Provincial Executive Committee Development

Number of interventions conducted and report produced

3 sessions convened

and reports produced

Conduct 1 induction

session for the newly elected

Provincial Executive Committee and report produced

Nil Lack of capacity and unavailability of venues

The induction session will be convened in Q2

Narrative:

66


Programme : FarisananiStrategic objective 1 :To align SAWEN with other bodies or organisations with similar business interests at both national and international level and to leverage the relationships arising out of these alignments for the benefit of members.Outcome/ Output


Annual Targets for

2015/16

Q1Milestones

Actual Output


Stakeholder engagement report

Number of international and/or National activities held and report produced

Participate in 3

international and/or

National activities

and report produced

Participated in 1

international or

national activity

and report produced

Participated in 1 international

event and 1 National Event

Target met None

Narrative: •SAWEN participated in the Global Summit of Women that was held in Sao Paulo, Brazil. •SAWEN participated in the Rural Development Conference in KwaZulu-Natal.

67


Programme : MenyetlaStrategic objective 1 :To facilitate access to business resources, information and opportunities for members in a way that promotes their effective participation in the global economy.Outcome/ Output


Annual Targets for

2015/16

Q1Milestones

Actual Output


Access to market platforms facilitated for members and report produced

Number of members accessing market platforms and reported.

30 members

participating in 7 market platforms and report produced

10 members participate

in 2 market

platforms and report produced

23 members participated in 4 market platforms & reports

produced.

Target exceeded because the pricing for exhibition was cheaper than anticipated. Hence we took heed of the opportunity by inviting more members as this was a primary need

none

Capacity Building opportunities for members

Number of members trained in General Business Training Skills

275 members

trained and reports

produced

25 members

trained and report produced

6 members were trained and report produced

There was a delay in finalizing partnership agreements.

Partnerships will be finalized in Q2 and training interventions will be rolled out.

Narrative:During the quarter, members participated in 4 market initiatives as follows: Rand Easter Show (10); Polokwane Show (10); Ghana Fashion Expo (1); - Decorex WC (2). 6 members were trained in General Business Skills.

68


Programme : MenyetlaStrategic objective 1 :To facilitate access to business resources, information and opportunities for members in a way that promotes their effective participation in the global economy.Outcome/ Output


Annual Targets for

2015/16

Q1Milestones

Actual Output


Capacity Building opportunities for members

Number of members trained in Market Readiness programmes

70 members

trained and report

produced

20 members


19 members were trained and report produced

Less than 5% The shortfall will be corrected in Q3

Number of members trained in Digital Literacy programmes

140 members

trained and reports

produced

35 members


22 members were trained and reports produced

Fewer members than anticipated signed up for the training in Northern Cape as the targeted province and the training had to continue with less numbers so as not to prejudice members who had signed up.

Additional training will be scheduled where demand is high such as Limpopo province.

Narrative:During the quarter , Market readiness training was conducted and 19 members benefittedDuring the quarter, Digital Literacy training was conducted and 22 members benefitted.

69


Programme : ZabalazaStrategic objective 1 :To monitor and evaluate the impact of government policies affecting women entrepreneurs

Outcome/ Output


Annual Targets for

2015/16

Q1Milestones

Actual Output


Research report on status of women participating in incentive schemes of the dti

Consultative report published

Publish research report on status of women

participating in incentive schemes of

the dti

Draft report

presented to the

Board for approval

Draft report presented to the Board but presentation

of key findings was not done.

Due to the unavailability of the lead person the final report was not presented to the Board.

The findings will be presented to the Board for approval in Q2.

Narrative:•A presentation will be made to the Board

70


Programme : HalalaStrategic objective 1 : To profile affirm and recognise achievements of women entrepreneurs

Outcome/ Output


Annual Targets for

2015/16

Q1Milestones

Actual Output


Ligugu Lami Awards conferred

Profitability, compliance, sustainability, and growth of enterprises.

Ligugu Lami Awards

conferred and report produced.

Call for entries

completed

Call for entries completed

Target met None

Narrative: •Brochures and entry forms of the Ligugu Lami awards were printed and distributed to SAWEN provincial offices, PEC members and Seda offices nationwide for members to access them. The competition closes on 14 th August 2015.•Profitability, compliance •Sustainability and growth post

71


Programme : Co-operatives Enterprise Development Fund Strategic objective 1 :To increase contribution to the GDP, sustainable livelihoods and creation of job

Outcome/ Output


Annual Targets for

2015/16

Q1Milestones

Actual Output


Implementation of sector catalytic projects

Number of Co-operatives supported to establish mini-factories in the clothing and textile sector

1 Co-operative supported

to establish a mini-factory

Concept document presented

to the Board.

Nil Business plan was approved towards the end of June 2015

The concept document will be presented to the Board in Quarter 2.

72


Programme : Organisational Development Strategic objective 1 :To build internal capacity

Outcome/ Output


Annual Targets for

2015/16

Q1Milestones

Actual Output


Recruitment of Human Resources

Number of new staff recruited based on organisational requirements

10 new staff members appointed

5 staff members appointed

4 staff members appointed

Salary requirements for most candidates who were suitable for the Financial Controller position were beyond the organisation’s affordability.

The position was re-advertised. Appointments will be done in Q2

Enhance CRM to provide events booking platform and online invoicing and payment facitlities

Enhanced Customer Relationshment Management Systems

Enhanced and

functional CRM with

events booking platform

and online invoicing

and payment facilties

Online invoice and

payment options and

events module

investigated and report

produced

Nil It has been deemed necessary to conduct an internal workshop with all staff to identify and agree on requirements prior to finalising the specifications.

The workshop will be convened in September and the specifications finalised.

Narrative:

•During the quarter, 4 staff members were recruited: Operations Manager (National Office, Corporate Services Officer (National Office, Provincial Administrator (Gauteng), Provincial Co-ordinator (WC). All appointments effective from 3 rd August 2015.

73


Programme : Expansion of InfrastructureStrategic objective 1 :To expand the infrastructure of SAWEN

Outcome/ Output


Annual Targets for

2015/16

Q1Milestones

Actual Output


Provincial offices added through co-location

Number of additional offices established through co-location

2 additional offices

through co-location

Site visit to view

prospective offices

and report produced

Nil The focus was on internal restructuring and recruitment of additional staff

Site visits will be conducted in Quarter 2.

Narrative:

•Site visits will be conducted in September 2015 in Northern Cape and Limpopo.

74

Challenges

Capacity constraints-Programme implementation-Operational (HR, Infrastructure – ICT and accommodation)-Misinterpretation of the DSBD mandate-Duplication of functions-Macro economic environment i.e. Fiscal constraint

75

Start-up structure

Minister of Small Business Development

Deputy Minister: Private Office

Department of Small Business Development

1 Director-General L 16

Minister: Private Office

Deputy Minister of Small Business Development

Chief Directorate

Finance

Chief Directorate Corporate

Management

CD: Strategic Management and Executive Support

Branch: Co - operatives

DDG CD: Primary Cooperatives Development CD: Incubation Support and Supplier Dev CD: Market Access Support

Branch: Enterprise Development and Entrepreneurship

DDG CD: Enterprise Development and Supplier Development CD: Entrepreneurship, Intellectual Property and Indigenous Knowledge Systems & Franchising CD Gender, Youth and People with disabilities CD: National Informal Business Upliftment Strategy

Branch: Enterprise Competitiveness Support

1 DDG

CD: Local Economic Development and Government Relations

CD: Incentives, Grants and Loan CD: Research M & E CD: Special Projects CD: Communication and Marketing

Directorate Internal Audit

76

Concluding remarks - Enterprise and supplier development collaborative initiatives with private sector;-Political principals’ led engagements with provincial and local government structures to enable better coordination in the implementation of government interventions; -Through the Technogirl Entrepreneurship Development Programme, 120 pupils from three rural schools were exposed the working world and business world-Capacity building of Sefa and Seda staff as part of co-location;-Improved alignment and coordination of programmes, i.e. Supplier development Programme and Transversal agreements; -Seda has a National footprint of 55 Branches and supports 48 incubation centres;-National Gazelles Programmes conceptualised-Going forward, Seda has put plans to address the areas of underperformance during the quarter and is confident that the targets set for the 2015/2016 financial year will be achieved-The Seda client journey model, which delivers interventions that are needs based and with the intention of improving profitability and creating jobs within supported enterprises continues to show results

77

Concluding remarks Cont…

-The Automotive Industry Development Centre (AIDC) has been sourced to assist with the implementation of the Supplier Development and Manufacturing Support in terms of technical support;-Seda Technology Programme concluded an agreement with University of Johannesburg (UJ) – PEETS ( Process, Energy and Environmental Technology Station ) project, focusing on sourcing technical expertise for SMMEs in the renewable energy;-It is encouraging that 98 % Sefa support is towards informal businesses in line with the 9 point plan aimed at turning around the South African economy;-It is important to note that Sefa support for SMME and Cooperatives was largely concentrated in the labour intensive sectors such as construction, manufacturing and agriculture -The department is finalising processes to launch two centres for entrepreneurship in this financial year (Orbit TVET –North West and Durban University of Technology -KZN

78

Concluding remarks Cont… The Department of Small Business Development is leading programme number seven under the nine-point plan that was announced by The President during the State of the Nation Address in February 2015. The programme is Unlocking the potential of SMMEs, Cooperatives, Township and Rural Enterprises. Key actions undertaken under this programme are•Public Sector Procurement•Building Access to private sector value chain•Access to finance•Support to township and rural enterprises•Policy and regulatory environment

Recommendation The committee to note the performance for the first quarter of the 2015/16 financial year

department of small business development presentation of the quarter one performance for 2015/16...

Documents

quarter performance

exceeded performance

annual performance plans

tabling performance

setasides programme

current financial year

cooperatives model

senior management level