"Inculcating a culture of entrepreneurship among the
youth, to eradicate poverty and unemployment“
Programmes offered to the youth by the Department
of Small Business Development, with particular
focus on the youth related proposals in the NDP
Youth Roundtable Discussions – The Role of the
Legislative Sector in ensuring that the Objectives of
the NDP relating to Youth are achieved.
29 July 2015.
Structure of the Presentation
• Objectives of the DSBD focus on Youth Enterprise Development
• Rationale of the DSBD focus on Youth Enterprise Development
⁻ Alignment to the Department’s overall vision/mission
⁻ How the DSBD focus on youth Enterprise Development is
linked to the National Development Plan Objectives
• DSBD Youth Programmes that inculcate a culture of
entrepreneurship among the youth, to eradicate poverty and
unemployment
• Challenges/Areas of improvement
Objectives of DSBD Youth focus on Economic Participation
through Enterprise and Small Business Development
1. Conduct research and development of youth enterprise policy
instruments and their implementation.
2. Provide leadership the development of unique and specific Youth
Enterprise programmes.
3. Roll out of Commitment 5 from the Youth Accord: Youth
Entrepreneurship and Youth Cooperatives
4. Ensure coordination and inter-governmental collaboration with respect
to youth enterprise development.
5. Become a focal point to account for progress on the development of
youth enterprises in the economy.
6. Conduct quarterly, annual, and 10 year reviews and impact assessment
of the youth Enterprise Development Strategy (YEDS) and its
programmes, as well as the performance of youth enterprises in the
economy as measured by contribution to GDP.
Rationale for the DSBD focus on Youth Enterprise
Development
1. The Department of Small Business Development (DSBD) realizes that
youth between ages of 16-35 years own approximately 33% of all
businesses in South Africa .
2. It also recognizes that about two thirds (63%) of youth entrepreneurs are
self-taught or acquired their skills from spouses (14%) .
3. Furthermore, less than 2% of the youth entrepreneurs reported tertiary
institutions as a source of skills and training .
4. Over 80% of youth owned enterprises are not registered . According to
the classical definition these businesses will be regarded as informal, but
from a perspective of their level of sophistication they are not. Therein
lies the dilemma and the DSBD through the development of its Informal
Sector Business Development Strategy is attempting to modernize these
businesses, and through organic growth steer them towards to
formalization, and also towards other mechanisms available at the
Department to promote their growth and expansion.
Rationale for the DSBD focus on Youth Enterprise
Development (cont.)
5.
Given the preceding facts, the Department is developing unique
programmes/instruments aimed specifically at addressing gaps in youth
enterprise development or creation.
6.
Furthermore, the Department is mainstreaming existing DBSD
programmes and instruments, like the Black Business Supplier
Development Programme, to ensure we reach our youth enterprises.
Alignment to the Department’s overall vision/mission
Vision: ‘A radically transformed
economy through effective
development and increased
participation of SMMEs and Cooperatives in the mainstream
economy’.
We are focussing developing unique
programmes to upscale and fasttrack the participation of youth in
the mainstream economy such as
the Mass Youth Enterprise Creation
Programme (MYECP).
Mission: To create a conducive
environment for the development
and growth of small businesses and
cooperatives through the provision of
enhanced financial and non-financial
support services, competitiveness,
market access, promotion of
entrepreneurship, advancing
localisation and Leveraging on public
and private sector procurement.
We are developing instruments that
address both the financial (Youth
Business Development Scheme) and
non financial needs (Mentorship,
Incubation, etc.) of youth, to create
and expand economic opportunities
for youth enterprises, be they startup, survivalist or growth oriented
How the DSBD focus on youth Enterprise Development is linked to
the National Development Plan Objectives
• The DBSD focus on Youth Enterprise Development is largely guided by the
National Development Plan and Outcome 4 of the Medium-Term Strategic
Framework (MTSF), which calls for the creation of decent employment
through inclusive economic growth.
• The Draft National Youth Policy 2015-2020, which enjoins all spheres of
Government to mainstream youth economic development in particular
and youth development in general provides the parameters (socioeconomic and contextual) within which programmatic interventions are
defined.
• The National Small Business Act of 1996 provides the full range of
enterprise development options that can and will be applied to the youth
sector.
• The broad legislative framework is integrated into the DSBD’s Youth
Enterprise Development Strategy (YEDS) that focuses on providing
support schemes for young entrepreneurs with the objective of creating
and managing sustainable and efficient youth businesses that are capable
of providing decent permanent jobs and employment growth, ensures
that the Youth business plan supports the Departmental mandate.
DSBD Youth Programmes that inculcate a culture of
entrepreneurship among the youth, to eradicate
poverty and unemployment
1.
2.
3.
4.
5.
6.
Mass Youth Enterprise Creation Programme
Youth Mainstreaming through transversal agreements
Sector specific Youth Catalytic Projects
High Impact Youth Month Short Term Projects
Youth Enterprise Development Workshops
Youth Financial Support Instruments
DSBD Youth Programmes that inculcate a culture of
entrepreneurship among the youth, to eradicate poverty
and unemployment (1)
1. The Mass Youth Enterprise Creation Programme - a flagship programme
designed to engage young entrepreneurs over 24 months, whilst
providing a 12-month Seta accredited entrepreneurship certificate,
development of a business plan, sourcing of funding, business launch
and post programme support. The aim of this programme is to aid the
creation of jobs through entrepreneurship and the creation of sustainable
youth owned enterprises. This programme is directly called for in the
NYP 2015-2020 (Pg 24) that calls or the DSBD to develop and implement
such a programme.
2. The DSBD also recognises this programme as a its contribution and
fulfilment to commitments of the Youth Employment Accord (Commitment
No 4), which calls for government’s support for youth entrepreneurship
and co-operatives, which will also address youth unemployment and the
limited participation of young people in the economy
DSBD Youth Programmes that inculcate a culture of
entrepreneurship among the youth, to eradicate poverty
and unemployment (2)
2.
Youth Mainstreaming Programme - Nine Economic Cluster
Departments, 9 Provincial Departments of Economic
Development and 11 State Owned Enterprises will be capacitated
in a mainstreaming framework and
reporting template –
thereafter monitored mainstream on a quarterly basis to ensure
that 30% of their services/programme beneficiaries are youth,
and even more importantly, 30% of their procurement spend is
be directed to youth enterprises
DSBD Youth Programmes that inculcate a culture of
entrepreneurship among the youth, to eradicate poverty
and unemployment (3.1)
3.
Sector Specific Catalytic Programmes - These projects create higher
impact through leveraging on existing opportunities in the priority
Sectors and Infrastructure Development Programmes of
Government as expressed in the Industrial Policy Action Plan (IPAP)
and the Regional Industrial Development Strategy.
Project 1: The Department noted that Energy is one of the priorities
of Government as stated by the President of South Africa Mr Jacob
Zuma in his State of the Nation Address (SONA - 2014) and
responded by initiating a programme with the Department of Energy,
focussing on establishing youth cooperatives in the rural Eastern
Cape and Kwa-Zulu Natal that were trained in the installation,
maintenance and repair of solar heating geysers. Eight youth
cooperatives were trained at the Engcobo, Mbashe, Ubuhlebezwe
and Ingwe local Municipalities in the technical skills to install, repair
and maintain solar water heating equipment, as well as business
skills to run a cooperative enterprise.
DSBD Youth Programmes that inculcate a culture of
entrepreneurship among the youth, to eradicate poverty
and unemployment (3.2)
3.
Sector Specific Catalytic Programmes - These projects create higher
impact through leveraging on existing opportunities in the priority
Sectors and Infrastructure Development Programmes of Government as
expressed in the Industrial Policy Action Plan (IPAP) and the Regional
Industrial Development Strategy.
Project 2: In recent years there have been conflicts between the South
African spaza shop owners, community members and the foreign spaza
owners. “Foreign entrepreneurs have been able to wrestle a large share
of the spaza market away from South African, forcing less competitive
(mostly South African) spazas out of business. By operating in more
collective ways, these immigrants are able to offer cheaper prices and
hence come to dominate the sector” In order to minimise the above
mentioned challenges by young people in the townships, the Youth
Directorate will initiate the project of spaza youth cooperatives. The
spaza youth cooperatives will be assisted with registration, training and
access to markets. This project will be implemented in Gauteng province
as a pilot. The spaza shops provide a vital service to the people living in
under-resourced communities. Using the Cooperative model, this can
improve the lives of youth, and their economic conditions in the
townships.
DSBD Youth Programmes that inculcate a culture of
entrepreneurship among the youth, to eradicate poverty
and unemployment (3.3)
3.
Sector Specific Catalytic Programmes - These projects create
higher impact through leveraging on existing opportunities in
the
priority
Sectors
and
Infrastructure
Development
Programmes of Government as expressed in the Industrial
Policy Action Plan (IPAP) and the Regional Industrial
Development Strategy.
Project 3:. Government has R2.9 billion ring fenced for digital
migration which will be implemented from June 2015. Over 5
million poor households will be subsidized. The Satellite
Television Boxes (STBs) are to be manufactured in SA. The
project focuses on the establishment of at least 40 youth-owned
cooperatives outlets (branded by Altech) in townships and rural
areas in four different provinces to benefit from this rollout by
providing the necessary installation, sales and technical
maintenance skills to service this rollout. This will result in the
employment of at least 500 youth that will benefit directly from
the digital migration programme of Government.
DSBD Youth Programmes that inculcate a culture of
entrepreneurship among the youth, to eradicate poverty
and unemployment (3.4)
3.
Sector Specific Catalytic Programmes - These projects create higher
impact through leveraging on existing opportunities in the priority
Sectors and Infrastructure Development Programmes of
Government as expressed in the Industrial Policy Action Plan (IPAP)
and the Regional Industrial Development Strategy.
Project 4:The project seeks to support Youth owned co-operatives in
the Cape Flats and surrounding regions, i.e. Khayelitsha, Gugulethu,
Mandalay, Mitchell’s Plein, Langa, Nyanga, Strandfontein,
Greenfields etc. to operate Shisha Nyama Franchise stores. Youth
owned co-operatives will be established by young people who may
be interested in this opportunity; existing co-operatives will also be
considered. In implementing this project, the DSBD is working the
Cape Town Office of the NYDA and relevant provincial stakeholders
to implement the project with an inclusive BDS support package
being offered to these youth cooperative franchise enterprises.
DSBD Youth Programmes that inculcate a culture of
entrepreneurship among the youth, to eradicate poverty
and unemployment (4)
4.
High Impact Youth Short Term Projects -Youth Month
Commemorations – June 2015 - The youth of 1976 fought for the
creation of a democratic state and for freedom, today’s youth
activism is focussed towards successfully tackling constrains of
economic freedom, reducing poverty, unemployment, HIV and AIDS,
personal development and the development of the country . During
this month we encourage our youth to understand the conviction of
the generation of 1976; we pay homage to their sacrifices and
pledge to carry on their legacy and principles of selflessness,
determination and devotion to freedom that were necessary for the
successful transition to a democratic South Africa.
Programme 1: Youth Enterprise Day (Mpumalanga, Dr JS Moroka
District) – 05 June 2015
Programme 2: Youth Enterprise Day (Limpopo, Sekhukhune District)
– 12 June 2015.
DSBD Youth Programmes that inculcate a culture of
entrepreneurship among the youth, to eradicate poverty
and unemployment (5)
5.
Youth Enterprise Development Workshops -The workshops provide
the provincial stakeholders with an opportunity to understand the
focus and programmes offered by the DSBD that will benefit youth
enterprise, and also assist provincial stakeholders to align their
youth enterprise strategies with the Youth Enterprise Development
Strategy (YEDS) and DBSD Flagship programmes, like the Mass
Youth Enterprise Creation Programme (MYECP) and Youth
Mainstreaming Programme.
These Youth Enterprise Development Workshops through which
key/flagship youth programmes of the DSBD can be implemented in
all provinces of the country simultaneously are held on a quarterly
basis.
The key aim of these workshops are to enable collaboration and the
establishment of strategic partnerships with provincial stakeholders
to enable us to work together in order to address the needs of young
people in relation to Enterprise Development.
DSBD Youth Programmes that inculcate a culture of
entrepreneurship among the youth, to eradicate poverty
and unemployment (6)
6.
Financial Support Instruments to Support Youth Enterprises -The
strategic aim of this programme is to create funding instruments
that will cater for youth enterprises, with the aim to assist them
overcome their challenges of obtaining start-up, growth and
expansion and collateral funding. The first of these to be launched
is the Youth Business Development Scheme (YBSD) instrument
which is aimed at small youth enterprises to assist them to improve
their competitiveness and sustainability to become part of the
mainstream economy and create employment.
Twenty Million rands has been allocated to the Youth Business
Development Scheme (YBSD) for the current financial year and this
this funding instrument will assist to create much needed youth jobs
as young people will not only create enterprises for themselves, but
jobs for others as well.
Furthermore, this funding instrument will assist youth-owned
enterprises to acquire critical assets and equipment required to grow
and expand their business operations.
Challenges facing the DSBD Youth Programmes
1.
Due to budgetary constraints, key programmes that address the
development of financial instruments for youth require urgent funding
to get them of the ground – the Youth Entrepreneurship Collateral Fund
which seeks to provide a non-refundable, once off grant to young
entrepreneurs that will serve as a collateral guarantee to secure a
business loan to start their own businesses is a priority.
2.
The DSBD and Youth Enterprise Development Strategy are new and our
programmes are still being developed, refined and honed to meet the
needs of our youth.
3.
We have just begun the process of coordination with the provinces and
local spheres of government, and we find that there are different levels
of learning and systemic gearing that need to take place in these
constituencies before we can pickup the pace of delivery.
4.
We are in constantly learning what the needs of our youth are with
regard to supporting the establishment and growth of youth enterprises,
and are confident that we will get our support to youth right.
Re a Leboga
Rolivhuwa
Siyabonga
Dankie
Thank you
Department of
Small Business
Development