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Small Enterprise Development Masterplan Drawn Up

May 11, 2022

Department of Small Business Development

The Draft National Integrated Small Enterprise Development (NISED) Masterplan has been drawn up.

The small business development department published the Draft Masterplan in Government Gazette 46344 for comment.

According to the department, the NISED represents the next 10-year strategic approach to facilitating the promotion of entrepreneurship, growth and support of Small, Medium and Micro Enterprises (SMME) in line with the National Development Plan targets to assist small business.

The NISED Masterplan forms the “third iteration of the high-level strategic framework of SMME development and targeted support, following the White paper in 1995, the Integrated Strategy for the Promotion of Entrepreneurship and Small Enterprise (ISPESE) in 2004 and the Improvement plan developed in 2019 post the ISPESE’s evaluation”.

Sections include background and overview; accelerating small enterprise development and growth – an integrated approach; overview and programme of action for the NISED Masterplan and implementation.

Key challenges to be addressed include, inter alia, lack of comprehensive, dependable, available and accessible data within the three spheres of government on SMMEs that is used to consistently track and monitor SMME performance in the economy; lack of coordination of government interventions and programmes; policy uncertainty coupled with administrative complexity increases the cost of compliance and expanding “red tape” for SMMEs; SMMEs must comply with onerous labour regulations which hamper their ability to employ more staff; South Africa’s economy has structural biases that favour larger firms which limits competition and SMME entry into markets; lack of affordable finance to service early stage and micro enterprises; low uptake on formalisation of enterprises and late payment reduces the ability of SMMEs to manage cash flow and effects the sustainability of enterprises.

Four outcomes of the NISED Masterplan include a well-informed South Africa on SMMEs with continuous monitoring evaluation and learning; policy, laws and regulations reformed to enable SMME growth and efficient governance; effective targeted support and services delivered for SMME growth both financial and non-financial and coordinated government with strengthened private sector partnerships for SMME growth.

Comment is invited within 30 days of the date of publication.