DSBD 2022/23 QUARTER THREE

PERFORMANCE REPORT

Date: 22 MARCH 2023

PORTFOLIO COMMITTEE ON
SMALL BUSINESS DEVELOPMENT
 PRESENTATION OUTLINE
1 BACKGROUND AND PURPOSE

2 GOVERNANCE AND COMPLIANCE

3 O V ERAL L P ERF O RMANCE SUMMARY

4 PERFORMANCE HIGHLIGHTS
4(A) NON-APP PERFORMANCE HIGHLIGHTS
5 UNDER-ACHIEVEMENTS

6 FINANCIAL REPORT

7 HUMAN RESOURCE REPORT

8 OVERALL PERFORMANCE BY PROGRAMME

9 R E C O M M E N D AT I O N

2
1. BACKGROUND AND PURPOSE

3
 GOVERNANCE ANDAND
BACKGROUND COMPLIANCE
PURPOSE

1.1. The report presents an overview of the activities of the Department of Small Business
Development (DSBD) in line with the Public Finance Management Act 1 of 1999,
Treasury Regulations 5.3 and 30.3, the Guidelines for National Quarterly Performance
Reports, and the revised Framework for Strategic Plans and Annual Performance Plans.

1.2. The 2022/23 Q3 Performance Report reflects:

1.2.1 Progress made on the implementation of Output Indicators and Annual
Targets set in 2022/23 Annual Performance Plan in respect of Quarter Three;

1.2.2 Actual output, and reasons for deviations;

1.2.3 Corrective measures for 2022/23 Quarter Three;

1.2.4 Financial Report; and

1.2.5 Human Resource Report.

4
2. GOVERNANCE AND COMPLIANCE

5
 GOVERNANCE AND COMPLIANCE
COMMITTEE NO. OF SCHEDULED ACTUAL NO. OF DATES
MEETINGS MEETINGS

EXECUTIVE 3 3 31 October 2022

COMMITTEE 28 November 2022
12 December 2022

MANAGEMENT 3 3 17 October 2022

COMMITTEE 17 November 2022
5 December 2022

RISK AND ETHICS 1 1 7 November 2022

MANAGEMENT
COMMITTEE

AUDIT AND RISK 1 1

24 November 2022
COMMITTEE

ICT STEERING 1 1 17 November 2022

COMMITTEE
TOTAL 9 9

6
 GOVERNANCE AND COMPLIANCE (CONT)
2.1. The Department complied with all the relevant provisions and rules of:

• The National Assembly;

• The National Council of Provinces;
• The Public Finance Management Act (PFMA), 1999 (No.1 of 1999);
• Treasury Regulations; and
• The National Treasury Framework for Annual Performance Reporting.

2.2. The Department submitted the 2022/23 Q2 Performance Report to the Minister on 30 October 2022.

2.3. The Department submitted the 2022/23 Q2 Performance Report to the Department of Planning, Monitoring
and Evaluation (DPME) on 30 October 2022.

2.4. The Department submitted the Draft 2023/24 Annual Performance Plan and Draft 2023/24 Technical
Indicator Descriptions (TIDs) to DPME on 31 October 2022.

2.5. The Department submitted the Bi-Annual Report on the 2019-2024 MTSF to DPME on 02 November 2022.

2.6. The Department presented the 2022/23 Quarter Two Performance Report to the Portfolio Committee on 23
November 2022

2.7. The Department presented the 2022/23 Quarter Two Performance Report to the Audit and Risk
Committee on 24 November 2022.

2.8. The Department submitted the Mid-Term Assessment Report on the DSBD revised 2020-2025 Strategic Plan

to DPME 29 on December 2022. 7

3. OVERALL PERFORMANCE SUMMARY

8
 PERFORMANCE SUMMARY – 2022/23 QUARTER THREE
PERFORMANCE STATEMENT:
THE DEPARTMENT IS REPORTING AGAINST 23 QUARTERLY TARGETS FOR 2022/23 Q3.

BRANCH QUARTERLY ACHIEVED NOT ACHIEVED

TARGETS
1. ADMINISTRATION 8 3 5

(37.5%) (62.5%)

2. SECTOR AND MARKET 6 3 3

DEVELOPMENT
(50%) (50%)

3. DEVELOPMENT FINANCE 6 4 2
(66.7%) (33.3%)

4. ENTERPRISE DEVELOPMENT 3 1 2

(33.3%) (66.7%)

23 11 12
TOTAL
(47.8%) (52.2%)

9
 PERFORMANCE SUMMARY – 2022/23 QUARTER THREE
Performance Report – Q3 2022/23
100.0%
95.0%

89.0%
90.0%

80.0%
80.0% 78.0%

70.0%
65.0%
62.5%
60.9%
60.0% 57.1%
54.5% 55.0%
52.2%
50.0% 47.8%
45.5% 45.0%
42.9%
39.1%
40.0% 37.5%
35.0%

30.0%
22.0%
20.0%
20.0%

11.0%
10.0%
5.0%

0.0%
Q1 2020/21 Q2 2020/21 Q3 2020/21 Q4 2020/21 Q1 2021/22 Q2 2021/22 Q3 2021/22 Q4 2021/22 Q1 2022/23 Q2 2022/23 Q3 2022/23

Achieved Not achieved

10
4. PERFORMANCE HIGHLIGHTS

11
 PERFORMANCE HIGHLIGHTS
1. The Department paid 100% of valid creditors within 30 days (2 786 valid invoices
amounting to R12 564 664.58 paid in 9 average days).
2. The Department’s expenditure was R705.3 million (101.3%) against a projection of
R696.3 million resulting in an over expenditure of R8.9 million or -1.3% (vs Q3 target of
≤.5% variance on cashflow projection).
3. The Department, in partnership with its agencies, implemented 34 public engagements in
District Municipalities (vs Q3 target of 15).
4. A total of 54 (vs Q3 target of 50) products produced and services rendered by SMMEs
and Co-operatives were linked to Edenvinne, a new retailer that has opened in Menlyn
Mall, Pretoria.
5. 832 women-owned businesses were supported to register on international platform,
SheTradesZA.
6. 5 540 township and rural enterprises were supported financially and/or non-financially.
7. A total of 3 336 start-up youth businesses were supported financially and/or non-
financially.
8. A total of 11 772 competitive SMMEs and Co-operatives were supported.
9. Stakeholder consultations were conducted in Free State (Mangaung) and North-West
(Bojanala District) on the review of the Businesses Amendment Bill and proposed
changes were considered.
10. A progress report on the finalisation of the SMMEs and Co-operatives Funding Policy
was approved by EXCO on 28 November 2022.
11. Institutional arrangements for implementation of the National Integrated Small Enterprise
Development Masterplan approved by EXCO of 28 November 2022. 12
 4(A) Non-APP PERFORMANCE HIGHLIGHTS
1. The Department supported 562 SMMEs through the Informal and Micro Enterprise
Development Programme (IMEDP) to value of R7.4 million.
2. The Incubation and Business Development Services Policy reviewed through inputs
received.
3. National Small Enterprise bill has been submitted for preliminary comment to the
Office of Chief State Law Advisor (OCSLA).
4. Schedule to the National Small Enterprise Act: Updated from the information
received from SARS.
5. The Department has developed a draft implementation status report on the
Cannabis Sector Support Plan.
6. A draft concept document for Hospitality Sector Support Programme (HSSP) pilot
project has been developed.
7. A draft discussion document on Mainstreaming of Vulnerable Groups developed.
8. The DSBD participated in the second Presidential Summit on Gender Based
Violence and Femicide (GBVF).
9. The DSBD participated at the Brazil, Russia, India, China and South Africa (BRICS)
Sherpa and Chairs of South African BRICS Chapters engagement that took place on
14 October 2022.
10. DSBD participated at the BRICS Inter-Departmental Technical Senior Official’s Team
(IDTSOT) Meeting that took place on 21 November 2022.

13
5. UNDER-ACHIEVEMENTS

14
 UNDER-ACHIEVEMENTS FOR 2022/23 Q3
No. OUTPUT OUTPUT ANNUAL Q3 ACTUAL OUTPUT REASON FOR DEVIATION CORRECTIVE
INDICATOR TARGET MILESTONE MEASURES
1. <10% Percentage <10% vacancy rate <10% vacancy Target not achieved: 3 terminations during the The Department will
vacancy rate. vacancy rate in in funded rate in funded quarter impacted the ability to implement the recruitment
funded permanent permanent posts. permanent 14.6% vacancy rate in decrease the vacancy rate. turn-around plan in order to
posts. posts. funded permanent And an additional 10 posts achieve the target.
posts. needed to be filled to reach
the target of less than 10%.

2. ≥50% female Percentage of ≥ 50% of female ≥ 50% of female Target not achieved: Termination of 1 female SMS Recruitment advertisements
in SMS female SMS SMS SMS member and appointment of 1 to indicate Employment
employed. representation. representation. representation. 48.5% female SMS male in SMS. Equity target. Targeted
representation. recruitment in 8 SMS posts
to be filled.
3. ≥4.2% Percentage ≥4.2% ≥4% Target not achieved: No appointment of PWDs Recruitment advertisements
representatio representation of representation of representation during the quarter. to encourage PWDs to
n PWDs. PWDs. of PWDs. 3.6% representation of apply.
of PWDs. PWDs.
4. Phase 4 and SMME Database – Phase 4: SMME Phase 4 Target not achieved: Due to delays in Q1 and Q2 Upon payment advance,
Phase 5: SMME Business Database - SMME systems on initial recruitment plans the development and
SMME Index to identify Business Index to development Phase 4 systems and finalising of the release of the phase will
Database levels of readiness identify levels of and testing development and contractual agreements be completed.
implemented. and capability of readiness and completed and testing not completed between CSIR and DSBD, the
small capability of small rolled out. and rolled out. development and testing had
enterprises enterprises been negatively impacted
implemented. implemented. hence not achieved.

SMME Database – Phase 5: SMME Phase 5 Target not achieved: Due to delays in Q1 and Q2 Upon payment advance,
5. Small Enterprises Database - Small systems on initial recruitment plans the development and
Credit Scoring and Enterprises Credit development Phase 5 systems and finalising of the release of the phase will
Rating System to Scoring and Rating and testing development and contractual agreements be completed.
facilitate access to System to facilitate completed and testing not completed between CSIR and DSBD, the
finance access to finance rolled out. and rolled out. development and testing had
implemented. implemented. been negatively impacted
hence not achieved.

6. SMMEs and Number of SMMEs 250 SMMEs and 100 SMMEs and Target not achieved: Lack of suitable global events Establish additional
Co-operatives and Co-operatives Co-operatives Co-operatives to link SMMEs and Co- partnerships.
linked to linked to global linked to global linked to global 32 SMMEs and Co- operatives to.
global market market market market operatives linked to
opportunities. opportunities. opportunities. opportunities. global market
opportunities.

15
 UNDER-ACHIEVEMENTS FOR 2022/23 Q3 (CONT)
No. OUTPUT OUTPUT ANNUAL Q3 MILESTONE ACTUAL OUTPUT REASON FOR CORRECTIVE
INDICATOR TARGET DEVIATION MEASURES
7. Business Number of business Six (6) business Two (2) business Target not achieved: Due to unforeseen Regular monitoring of
Infrastructure for infrastructure for infrastructure for infrastructure for construction the project by the
SMMEs and SMMEs and Co- SMMEs and Co- SMMEs and Co- No business infrastructure projects delays from Department.
Co-operatives operatives operatives operatives for SMMEs and Co- several of the SEIF
refurbished or refurbished or built. refurbished or built. refurbished or built. operatives was refurbished approved projects.
built. or built.
8. Incubation Number of Two (2) Monitoring Monitoring Report on Target not achieved: The evaluation Tracking the activities
Support monitoring Reports Reports on the the Incubation study has not been and having bi-weekly
Programme on the Incubation Incubation Support Support Programme Monitoring Report on the finalized yet. progress engagements
improvement plan Support Programme Programme improvement plan Incubation Support with the service provider
monitored. improvement plan improvement plan approved by EXCO. Programme improvement to ensure the study is
approved by EXCO. approved by plan not produced and completed within this
EXCO. approved by EXCO.. financial year.
9. Co-operatives Number of Co- 200 Co-operatives 50 Co-operatives Target not achieved: The Co-operatives The Department will
supported operatives supported supported financially that applied for conduct countrywide
financially supported financially financially and/or and/or non- 28 Co-operatives funding did not workshop to provide
and/or non- and/or non- non-financially. financially. supported financially meet the qualifying business and technical
financially. financially. and/or non-financially. criteria. training to co-operatives.

10. SMMEs and Co- Number of Crafters 900 Crafters 450 Crafters Target not achieved: There was low A catch-up plan is
operatives in the supported supported supported through uptake on the concluded to support
craft sector through the Craft through the Craft the Craft Customised 309 crafters supported CCSP. more crafters in Q4.
supported Customised Sector Customised Sector Sector Programme. through the Craft
through the Craft Programme. Programme. Customised Sector
Customised Programme.
Sector
Programme.
11. Municipalities Number of 20 municipalities 5 municipalities Target not achieved: The awareness The Department will
assisted to roll municipalities assisted to roll out assisted to roll out workshop for the 5 speed up SCM
out the Red- assisted to roll out the Red-Tape the Red-Tape 5 municipalities not municipalities was processes and
Tape Reduction the Red-Tape Reduction Reduction assisted to roll out the not held due to implement a catch-up to
Awareness Reduction Awareness Awareness Red-Tape Reduction procurement achieve the target.
Programme. Awareness Programme. Programme. Awareness processes
Programme. Programme. challenges.
12. Assessment Approved report on Assessment review Consolidation of the Target not achieved: Delays due to The Department will
review of SMME the assessment report of SMME desktop research procurement speed up SCM
regulatory review of SMME regulatory and consultations on Consolidation of the processes processes and
impediments to regulatory impediments to priority regulatory desktop research and challenges. implement a catch-up to
reform. impediments to reform approved reforms impacting consultations on priority achieve on the target.
reform. by EXCO. small enterprises. regulatory reforms,
impacting small
enterprises, was not done. 16
6. FINANCIAL REPORT:

17
 2022/23 Q3 PROJECTION VS ACTUAL EXPENDITURE

Q3 Projec-
Q3 Actual
Expendi- Q3 Variance: R'million tions: R'mil-
- 9.0 lion
ture: R'mil- 696.3
lion
705.3

18
 2022/23 Q3 PERFOMANCE PER PROGRAMME
390.4
400.0 R’million 363.4

350.0
290.2
300.0
257.4

250.0

200.0

150.0

100.0

31.7 32.8
28.3 25.8
50.0 14.5
2.5

0.0
- 17.2
- 27.0
- 50.0
Projections Expenditure Variance

19
 2022/23 PER PROGRAMME
Programme One- Administration: Expenditure for Quarter Three is R25.8 million against projection of R28.2
million resulting in an under expenditure of R2.5 million (9%) mainly due to vacancies (R2.6 million) Machinery
and equipment underspent by R97 thousand due to lower payments than projected and Goods and services
overspent by R203 thousand due to higher payments for Communications and Travel.
Programme Two – Sector Market and Development: Expenditure for Quarter Three is R31.7 million against
projection of R14.5 million resulting in an over expenditure of R17.2 million (-119.2%) mainly due to Transfers
and subsidies (R19.7 million) on Product Market as claims projected for Q2 and Q4 were processed in Q3, as
well as Machinery and Equipment (R1.1 million) due to payment of computer equipment projected in Q2.
Compensation of employees underspent by R931 thousand due to vacancies whilst goods and services also
underspent by R2.6 million mainly due to computer services as payments to Microsoft had to be reversed to be
paid in dollars, as well as well as travel and subsistence due to outstanding claims from Seda for SMMEs
exposed to global market project.
Programme Three – Development Finance: Expenditure for Quarter Three is R390.4 million against
projection of R363.4 million resulting in an over expenditure of R27 million mainly on Transfers and subsidies
(R25.8 million) due to misalignment on cashflow. A transfer amounting to R29.8 million was made under Blended
Finance whilst the cash flow was on programme 4 under the discontinued Gazelles programe. Craft CSP
overspent by R1.2 million due to payments projected in Q2 but paid in Q3, whilst CDSP underspent by R5.2
million due to delays in finalising the project as Seda is yet to submit the required packs. Compensation of
employees overspent by (R2.6 million) due to payment of COLA and pay-progressions. Machinery and
equipment underspent by R79 thousand.
Programme Four – Enterprise Development: Expenditure for Quarter Three was R257.4 million against
projection of R290.2 million resulting in an under expenditure of R32.8 million(11.3%) due to misalignment of
cashflow. A transfer amounting to R29.8 million was made on programme 3 under Blended Finance whilst the
cash flow was on programme 4 under the discontinued Gazelles programe. Compensation of employees
underspent by R1.6 million due to vacancies, goods and services underspent by R1.3 million due to
underspending for IMEDP (R2.3 million) as claims projected for Q3 were paid in Q2 and overspending on travel
R1.6 million. 20
2022/23 Q3 PERFOMANCE PER ECONOMIC CLASSIFICATION

R’million
690.0 636.2 651.9

590.0

490.0

390.0

290.0

190.0

90.0 40.3 37.7

19.3 14.2 5.1
2.6 0.5 1.4

- 10.0 Compensation of Goods and services Transfers and - 0.9

Capital assets
employees - 15.7
subsidies

Projections Expenditure Variance

21
 2022/23 Q3 PER ECONOMIC CLASSIFICATION
 Compensation of Employees – Expenditure for quarter three is R37.7 million (93.6%)
against projection of R40.3 million resulting a variance of R2.6 million (6.4%) due to
vacancies (14.6%)

 Goods and services – Expenditure for quarter three is R14.2 million (73.7%) against
projection of R19.7 million resulting in an under expenditure of R5.1 million (26.3%) mainly
due to underspending for IMEDP (R1.8 million) as claims projected for Q3 were processed in
Q2, Computer services (R2 million) as payments to Microsoft had to be reversed and to be
paid in dollars, legal costs(R569 thousand) due to invoices still awaited from the State
Attorney office, as well as Advertising(R500 thousand) due to delay with procurement of
Advertising materials.
 Transfers and subsidies - Expenditure for quarter three is R651.9 million against the
projection of R636.2 million (102.5%) resulting in an over expenditure of R15.7 million (2.5%)
due to:
 Product Markets (-R19.7 m): Payments projected for Q2 and Q4 but processed in Q3
 CDSP (R5.3 m): Delays with the submission of application packs by Seda
 Craft CSP (R1.2 m): Payment projected for Q2 but processed in Q3

 Machinery and Equipment – Expenditure for quarter two is R1.4 million (271.3%) against
projection of R533 thousand resulting in an over expenditure of R913 thousand (171.3%)
due to payments of computer equipment projected in Q2 but paid in Q3.

22
 AUDIT FINDINGS PROGRESS AS AT 31 DECEMBER 2022

Number of
AREA INTERNAL CONTROL DEFICIENCY PROGRESS
findings

BBSDP – FY 2020-21 A total of 23 Post disbursement out of

CIS post investment site inspection not undertaken (2)
26 were conducted.
INCENTIVES BBSDP payment made for an applicant who had non compliant tax
status. Programme closed.
2
The provision note for 2022/23 Q2 IFS submitted tables
PROVISIONS Provision balances are accurately disclosed. reviewed and no anomalies detected.
1
KEY MANAGEMENT Duplicated amount and Names of key management personnel not
The IFS – Q2 reviewed, and quality assured.
PERSONNEL disclosed
1

CONTINGENT Legal services to monitor closely. State Attorney’s have not

No assessment conducted on contingent liabilities.
LIABILITY responded to the requests by the Department.
1
PRE-DETERMINED • Achievement as per APR not supported by schedules provided
• In progress: lessons learnt applied on current programmes.
OBJECTIVES 1
PRE-DETERMINED • Number of crafters supported through the Craft Customized Sector
• Additional Quality checks added to validate reports before
OBJECTIVES Programme – Supporting schedules for the crafters supported are
incomplete. being finalised
1
• Reasons for deviation not supported through supporting evidence. • Achieved: Corrected draft Annual Report was submitted to
PRE DETERMINED AGSA on 29 July 2022. Further to this, the Strategic
OBJECTIVES Planning and Reporting Framework and SOPs was updated
and approved by EXCO during Q2 of 2022/23 FY to
1 strengthen its implementation.
• Information system environment of the department not evaluated. • Achieved: The POPIA Assessment was completed in Q2.
• External quality assurance review not performed. The ICT General controls review was conducted, and draft
report issued. The closing meeting could not take place due
INTERNAL AUDIT
to unavailability of the auditee representative.
• Achieved. The external assessment was completed on 24
2 November 2022..
Total 23
10
7. HUMAN RESOURCE REPORT

24
 VACANCY RATE
KEY INDICATOR TARGET STATUS
Vacancy rate 10% Not Achieved - 14.6% (31/212)

Increase of vacancy rate

Vacancy Rate
during 2022/23 Q3 was as a
25.0%
result of:
• 3 Permanent staff
20.0%
terminated service.
15.1% 14.6%
16.2% 16.2% 14.8%
• 10 additional appointments
15.0%
required to reach the target
of less than 10%
10.0%
• Vacancies as of 31 Dec 2022
were at 31 with the 5 new
5.0%
appointments

0.0%
31/212=14.6%
APR MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR

Target 2021/22 2022/23

25
 WOMEN IN SENIOR POSITIONS
KEY INDICATOR TARGET STATUS

Women in SMS 50% Not Achieved – 48.5% (16/33)

Women in SMS Decrease in representation

of women in SMS during Q3
70.0%
impacted by:
47.1% 47.1%
• Termination of 1 woman in
60.0% 48.6% 51.5% 48.5% SMS (D: Legal Services);
and
50.0%
• Appointment of 1 male in
SMS (D: HRM)
40.0%

30.0%

20.0%

10.0%

0.0%
APR MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR

Target 2021/22 2022/23

26
 PERSONS WITH DISABILITIES
KEY INDICATOR TARGET STATUS

People with a disability 4% Not Achieved 3.6% (7/193)

Persons with Disability Decrease in

4.5%
representation of
Persons with Disability
3.8% 3.8% 3.7% 3.7% 3.6%
4.0% during Q3 impacted by:
• No appointment of
3.5%
PWD;
• Increase in
3.0%
headcount
2.5%

2.0%

1.5%

1.0%

0.5%

0.0%
APR MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR

Target 2021/22 2022/23

27
8. OVERALL PERFORMANCE BY PROGRAMME

28
PROGRAMME 1

29
 OVERALL PERFORMANCE BY PROGRAMME 1 –
ADMINISTRATION
No. OUTPUT OUTPUT ANNUAL Q3 MILESTONE ACTUAL OUTPUT REASON FOR CORRECTIVE
INDICATOR TARGET DEVIATION MEASURES
1. Payment register. % of valid creditors 100% of valid 100% of valid Target Achieved: N/A N/A
paid within 30 creditors paid creditors paid within
days. within 30 days. 30 days. 100% of valid creditors
paid within 30 days

2. ≥95% % variance on ≤5% variance on ≤5% variance on Target Achieved: N/A N/A
expenditure on annual budget. annual budget. cashflow projections.
annual budget. -1.3% variance on
cashflow projections.

3. <10% Percentage <10% vacancy <10% vacancy rate Target not achieved: 3 terminations during the The Department will
vacancy rate. vacancy rate in rate in funded in funded quarter impacted the ability implement the
funded permanent permanent posts. permanent posts. 14.6% vacancy rate in to decrease the vacancy recruitment turn-
posts. funded permanent rate. And an additional 10 around plan in order
posts. posts needed to be filled to to achieve the target.
reach the target of less than
10%.

4. ≥50% female Percentage of ≥ 50% of female ≥ 50% of female Target not achieved: Termination of 1 female Recruitment
in SMS female SMS SMS SMS representation. SMS member and advertisements to
employed. representation. representation. 48.5% female SMS appointment of 1 male in indicate Employment
representation. SMS. Equity target.
Targeted recruitment
in 8 SMS posts to be
filled.

5. ≥4.2% Percentage ≥4.2% ≥4% representation Target not achieved: No appointment of PWDs Recruitment
representation representation of representation of of PWDs. during the quarter. advertisements to
of PWDs. PWDs. PWDs. 3.6% representation of encourage PWDs to
PWDs. apply.
6. DSBD and Number of 70 DSBD and its 15 DSBD and its Target achieved: The Department and its N/A
its Agencies’ DSBD and its Agencies’ public Agencies’ public agencies received several
public Agencies’ public engagement engagement 34 DSBD and its external invitations from
engagement engagement programmes programmes Agencies’ public strategic government
programmes programmes implemented implemented engagement Departments (National,
implemented implemented within District within District programmes Provincial and Local) and
within District within District Municipalities. Municipalities. implemented within other key stakeholders to
Municipalities. Municipalities. District Municipalities. engage the public on the
programmes offered by the
Portfolio.
30
 OVERALL PERFORMANCE BY PROGRAMME 1 –
ADMINISTRATION
No. OUTPUT OUTPUT ANNUAL Q3 ACTUAL OUTPUT REASON FOR CORRECTIVE
INDICATOR TARGET MILESTONE DEVIATION MEASURES
7. Phase 4 and SMME Database – Phase 4: SMME Phase 4 systems Target not achieved: Due to delays in Q1 and Upon payment
Phase 5: SMME SMME Business Database - SMME development and Q2 on initial recruitment advance, the
Database Index to identify levels Business Index to testing Phase 4 systems plans and finalising of the development and
implemented. of readiness and identify levels of completed and development and contractual agreements release of the phase
capability of small readiness and rolled out. testing not completed between CSIR and DSBD, will be completed.
enterprises capability of small and rolled out. the development and
implemented. enterprises testing had been
implemented.
negatively impacted hence
not achieved.

8. Phase 4 and SMME Database – Phase 5: SMME Phase 5 systems Target not achieved: Due to delays in Q1 and Upon payment
Phase 5: SMME Small Enterprises Database - Small development and Q2 on initial recruitment advance, the
Database Credit Scoring and Enterprises Credit testing Phase 5 systems plans and finalising of the development and
implemented. Rating System to Scoring and Rating completed and development and contractual agreements release of the phase
facilitate access to System to facilitate rolled out. testing not completed between CSIR and DSBD, will be completed.
finance access to finance and rolled out. the development and
implemented. implemented. testing had been
negatively impacted hence
not achieved.

31
PROGRAMME 2

32
 OVERALL PERFORMANCE BY PROGRAMME 2 –
SECTOR AND MARKET DEVELOPMENT
No. OUTPUT OUTPUT ANNUAL Q3 MILESTONE ACTUAL OUTPUT REASON FOR CORRECTIVE
INDICATOR TARGET DEVIATION MEASURES
1. Products produced Number of products 250 products 50 products Target achieved: The Department N/A
and services produced and produced and produced and introduced more
rendered by SMMEs services rendered by services rendered services rendered 54 products produced products to the
and Co-operatives SMMEs and Co- by SMMEs and Co- by SMMEs and Co- and services rendered by retailers to afford the
linked to domestic operatives linked to operatives linked to operatives linked to SMMEs and Co- SMMEs greater
market. domestic market. domestic market. domestic market. operatives linked to opportunity to be
domestic market. considered for listing.

2. Women-owned Number of women- 2 500 women- 500 women-owned Target achieved: Increased advocacy, N/A
businesses owned businesses owned businesses businesses awareness, and
supported to register supported to register supported to supported to 832 women-owned substantial
on international on international register on register on businesses supported to participation in
platform. platform. international international register on international capacity building
platform. platform. platform. initiatives.

3. SMMEs and Number of SMMEs 250 SMMEs and 100 SMMEs and Target not achieved: Lack of suitable Establish additional
Co-operatives linked and Co-operatives Co-operatives Co-operatives linked global events to link partnerships.
to global market linked to global linked to global to global market 32 SMMEs and Co- SMMEs and Co-
opportunities. market opportunities. market opportunities. operatives linked to operatives to.
opportunities. global market
opportunities.

4. Business Number of business Six (6) business Two (2) business Target not achieved: Due to unforeseen Regular monitoring
Infrastructure for infrastructure for infrastructure for infrastructure for construction projects of the project by the
SMMEs and SMMEs and Co- SMMEs and Co- SMMEs and Co- No business delays from several Department.
Co-operatives operatives operatives operatives infrastructure for SMMEs of the SEIF approved
refurbished or built. refurbished or built. refurbished or built. refurbished or built. and Co-operatives was projects.
refurbished or built.

5 Incubation Support Number of monitoring Two (2) Monitoring Monitoring Report Target not achieved: The evaluation study Tracking the
Programme Reports on the Reports on the on the Incubation has not been activities and
improvement plan Incubation Support Incubation Support Support Programme Monitoring Report on the finalized yet. having bi-weekly
monitored. Programme Programme improvement plan Incubation Support progress
improvement plan improvement plan approved by EXCO. Programme improvement engagements with
approved by EXCO. approved by EXCO. plan not produced and the service provider
approved by EXCO. to ensure the study
is completed within
this financial year.

33
 OVERALL PERFORMANCE BY PROGRAMME 2 –
SECTOR AND MARKET DEVELOPMENT
No. OUTPUT OUTPUT ANNUAL Q3 MILESTONE ACTUAL OUTPUT REASON FOR CORRECTIVE
INDICATOR TARGET DEVIATION MEASURES
6 Progress reports on Number of progress Two (2) progress Stakeholder Target achieved: N/A N/A
the review of the reports on the review reports on the consultations
Businesses of the Businesses review of the conducted on the Stakeholder
Amendment Bill and Amendment Businesses review of the consultations conducted
proposed changes Bill and proposed Amendment Bill and Businesses on the review of the
produced. changes approved by proposed changes Amendment Bill and Businesses Amendment
EXCO. approved by EXCO. proposed changes. Bill and proposed
changes.

34
PROGRAMME 3

35
 OVERALL PERFORMANCE BY PROGRAMME 3 –
DEVELOPMENT FINANCE
No. OUTPUT OUTPUT ANNUAL Q3 MILESTONE ACTUAL OUTPUT REASON FOR CORRECTIVE
INDICATOR TARGET DEVIATION MEASURES
1. Consolidated Consolidated Consolidated Progress report on Target achieved: N/A N/A
Progress report progress report on progress the finalisation of
on the the finalisation report on the SMMEs and Co- Progress report on the
finalisation of of SMMEs and finalisation operatives Funding finalisation of the SMMEs and
SMMEs and Co-operatives of SMMEs and Policy approved by Co-operatives Funding Policy
Co-operatives Funding Policy Co-operatives EXCO. approved by EXCO on 28
Funding Policy approved by Funding Policy November 2022.
approved. EXCO. approved by
EXCO.
2. Co-operatives Number of Co- 200 Co- 50 Co-operatives Target not achieved: The Co-operatives The Department
supported operatives operatives supported financially that applied for will conduct
financially supported supported and/or non- 28 Co-operatives supported funding did not meet countrywide
and/or non- financially and/or financially financially. financially and/or non- the qualifying criteria. workshop to
financially. non-financially. and/or non- financially. provide business
financially. and technical
training to co-
operatives.
3. Township and Number of 20 000 5 000 Township and Target achieved: The review and N/A
Rural Township and Township and Rural enterprises simplification of TREP
Enterprises Rural enterprises Rural supported 5 540 Township and Rural application procedure
supported supported enterprises financially and/or enterprises supported resulted in increased
financially financially and/or supported non-financially. financially and/or non-financially. uptake; sefa has
and/ or non- non-financially. financially moved from manual
financially. and/or non- application process to
financially. automated application
process.
4. SMMEs and Co- Number of 900 Crafters 450 Crafters Target not achieved: There was low uptake A catch-up plan is
operatives Crafters supported supported supported through on the CCSP. concluded to
In the craft sector through the Craft through the the Craft Customised 309 crafters supported through support more
supported Customised Craft Sector Programme. the Craft Customised Sector crafters in Q4.
through the Craft Sector Customised Programme.
Customised Programme. Sector
Sector Programme.
Programme.

36
 OVERALL PERFORMANCE BY PROGRAMME 3 –
DEVELOPMENT FINANCE
No. OUTPUT OUTPUT ANNUAL Q3 MILESTONE ACTUAL OUTPUT REASON FOR CORRECTIVE
INDICATOR TARGET DEVIATION MEASURES

5. Start-up Number of start-up 10 000 start-up 2 500 start-up youth Target achieved: Due to the demand for N/A
youth youth youth businesses supported business support
businesses businesses businesses financially and/or non- 3 336 start-up youth services from youth
supported supported supported financially. businesses supported businesses and SBD
financially financially and/or financially and/or financially and/or non- Portfolio reaching out to
and/or non- non-financially. non-financially. financially. provide support to more
financially. youth businesses.

6. Consolidated Consolidated Consolidated Report on the Target achieved: The major contributor to N/A
Report on report on the report on 7 000 competitive the variance is due to
supported number of the 25 000 SMMEs and Report on the 11 772 the number of clients
Competitive competitive competitive Co-operatives competitive SMMEs and that were assisted
SMMEs and SMMEs and SMMEs and Co- supported approved Co-operatives supported through sefa and Seda
Co-operatives Co-operatives operatives by EXCO. approved by EXCO. support programmes.
produced. supported supported
approved by approved by
EXCO. EXCO.

37
PROGRAMME 4

38
 OVERALL PERFORMANCE BY PROGRAMME 4 –
ENTERPRISE DEVELOPMENT
No. OUTPUT OUTPUT ANNUAL Q3 MILESTONE ACTUAL OUTPUT REASON FOR CORRECTIVE
INDICATOR TARGET DEVIATION MEASURES
1. National National Integrated National National Integrated Target achieved: N/A N/A
Integrated Small Small Enterprise Integrated Small Small Enterprise
Enterprise Development Enterprise Development National Integrated Small
Development Masterplan Development Masterplan Enterprise Development
Masterplan implementation report Masterplan institutional Masterplan institutional
implemented approved by EXCO. implementation arrangements for arrangements for
and reported on. report approved implementation implementation approved by
by EXCO. approved by EXCO. EXCO of 28 November 2022.

2. Municipalities Number of 20 municipalities 5 municipalities Target not achieved: The awareness The Department will
assisted to roll municipalities assisted to roll out assisted to roll out workshop for the 5 speed up SCM
out the Red- assisted to roll out the Red-Tape the Red-Tape 5 municipalities not assisted municipalities was processes and
Tape Reduction the Red-Tape Reduction Reduction to roll out the Red-Tape not held due to implement a catch-up to
Awareness Reduction Awareness Awareness Awareness Reduction Awareness procurement achieve the target.
Programme. Programme. Programme. Programme. Programme. processes
challenges.

3. Assessment Approved report on Assessment Consolidation of the Target not achieved: Delays due to The Department will
review of SMME the assessment review report of desktop research procurement speed up SCM
regulatory review of SMME SMME regulatory and consultations Consolidation of the desktop processes processes and
impediments to regulatory impediments to on priority research and consultations challenges. implement a catch-up to
reform. impediments to reform approved regulatory reforms on priority regulatory reforms, achieve on the target.
reform. by EXCO. impacting small impacting small enterprises,
enterprises. was not done.

39
9. RECOMMENDATION

40
 RECOMMENDATION

 It is recommended that the Portfolio Committee on Small Business

Development adopts the 2022/23 Quarter Three Performance Report of the
Department of Small Business Development.

41
Thank You!

Thank You!