DTI supports SMEs

Johannesburg, 24 Jun 2009

The Department of Trade and Industry (DTI) will increase support for small enterprises and promote the local business process outsourcing (BPO) industry.

In its medium-term strategic framework, the department says it will assist and support 17 062 companies by providing incentives through programmes such as BPO and off-shoring, enterprise development, and investment and tax incentives.

The DTI adds that it will provide incentives for the creation of 52 040 direct jobs over the next three years through the enterprise investment programme, BPO and off-shoring projects.

The department says it will foster the growth of SMEs and co-operatives by overseeing the support provided by agencies such as Khula and the Small Enterprise Development Agency (Seda).

The department has set aside a grant of R160 million for the Technology and Human Resources for Industry Programme. For this financial year, it will support 310 enterprises - 205 of which will be SMEs, while 89 will be black economic empowerment enterprises.

The DTI earmarked total allocations of R6.3 billion and this would decrease to R5.7 billion in 2010/11. Administration programmes were allocated R420 million for the implementation of integrated resource solutions and customer services. Empowerment and enterprise development received R1.3 billion. This initiative develops policies and strategies to support SMEs and cooperatives.

Consumer and corporate regulation projects were allocated R238 million for the development and implementation of regulatory solutions. Enterprise organisation initiatives received R3 billion for the implementation of incentive measures that support national priorities.

The DTI says Seda will look to attract 120 000 new clients and register 48 000 new clients. Ninety new SMEs will be established by the agency and it aims to support 200 companies at the end of the financial year. It says it will create 834 direct jobs, while supporting 73% of black-owned businesses along with 24% of women-owned enterprises.

The department says it will also facilitate SMEs' access to government procurement opportunities and increase their contribution to GDP from 40% to 45% in the next five years.

Focus areas

The department says it will also work towards establishing the National Consumer Commission to implement the newly-signed Consumer Protection Act and enforce consumer rights contained in the Act. It will also finalise regulations for implementation of the Interactive Gambling Amendment Act of 2008.

The implementation of enterprise architecture solutions at the Companies and Intellectual Property Registration Office was set as a key objective for the year. It says this is vital for the establishment and entrenchment of enterprise governance at the office.

The provision of efficient service delivery would also be improved through the implementation of the office's R153 million enterprise content management solution. E-administration and fraud prevention would also be key focus areas for the office.

Ensuring business resource management that enhances efficiency through the creation and implementation of an information security strategy was also one of the department's objectives. The DTI said it would strengthen its corporate governance through the implementation of a fraud prevention plan, and SMS and MMS training on corporate and enterprise risk management.