Economic Opportunities

(a and b)

In the Western Cape, our one Provincial Strategic Goal (PSG 1) is the creation of opportunities for growth and jobs.

Entrepreneurial activity drives economic growth and job creation.

The most competitive nations are those that have the highest level of entrepreneurial activity. Globally it has been demonstrated that small, medium and micro enterprises (SMMEs) play a critical role in absorbing labour, penetrating new markets and growing the economy in creative and innovative ways.

In the South Africa, it is estimated that SMMEs contribute between 52 and 57 percent to the country’s Gross Domestic Product (GDP). Provincially, small businesses employ around 500 000 people.

In the agriculture sector, there are approximately 6 653 commercial and 9 844 smallholder farmers.

A consultative forum between the Minister for Agriculture, Forestry and Fisheries and the various provincial Ministers for Agriculture approved the following official classification of farmer categories.

CATEGORY	SUB-CATEGORY
Subsistence	Urban/peri-urban
	Survival
Smallholder	Lifestyle
	Commercial aspirations
Commercial	Small
	Medium
	Large

The National Development Plan (NDP) futher sets the goal of creating an additional 11 million jobs by 2030. Of the 11 million jobs needed, it is estimated that approximately 7.7 million jobs should be provided through SMMEs. The NDP identified entrepreneurship and the strengthening of the existing small business sector as key priorities.

In the Western Cape, the Project Khulisa growth strategy has the goal of adding around 200 000 jobs to the economy in the next five years.

Project Khulisa identified focus sectors which have the potential to dramatically ramp up economic growth.

To support job-creating entrepreneurs, the Departments of Economic Development and Tourism and Agriculture have a range of interventions, which include:

Emerging Business Support Programme

This programme is a partnership between the Department of Economic Development and Tourism (DEDAT) and the University of the Western Cape.

The programme focuses on equipping 1000 small business owners and entrepreneurs with business strategy knowledge and skills to enhance their growth, viability and sustainability. Through practical business education, entrepreneurs are able to grow their businesses.

Entrepreneurs receive high quality training, advice and mentorship from tutors from commercial, business school and entrepreneurial backgrounds.

Premier’s Entrepreneurs Entrepreneurship Recognition Awards (PERA)

It is key that we celebrate the achievements of our entrepreneurs.

This initiative, which is driven by DEDAT, seeks to promote an entrepreneurial culture and increase entrepreneurship awareness.

The PERA is the province’s annual showcase, which is designed to recognise and support our most inspiring, high-potential entrepreneurs. It is our goal that the winners inspire fellow residents to follow their entrepreneurial ambitions.

Funding Fair

Funding is often cited as a stumbling block for small businesses.

This initiative aims to empower entrepreneurs / business owners with the necessary skills and entrepreneurial knowledge to access finance.

Through a partnership with Deloitte, entrepreneurs pitch for funding to potential investors.

The Fair includes an open day with various entrepreneur-focussed presentations and exhibits.

National Empowerment Fund

The Western Cape Government has partnered with the National Empowerment Fund (NEF) to enhance financial support for entrepreneurs.

This fund offers competitive repayment rates, as low as three percent in some cases.

Over the past two years, DEDAT has invested R12 500 000, 00 in the WCDEDAT/NEF ED Fund Initiative. The agreement commits the NEF to match the funding invested by the Department in the ration of 1:1,5 resulting in a financial commitment of R 18 750 000, 00 by the NEF to the WCDEDAT / NEF ED Fund Initiative.

The Cape Capital Fund

Through this Fund, we offer financial support (co-funding) to SMMEs to address the challenges of market access (certifications/requirements/accreditations), logistics and infrastructure (machinery and equipment). The fund targets businesses in the Project Khulisa sectors, namely oil and gas and agri-processing.

West Coast Business Development Centre (Supplier Development programme)

This programme delivers business support services to small businesses and cooperatives. The intervention aims to improve the low sustainability of start-up businesses and assist in growing markets for established businesses and cooperatives.

The Business Place

The Business Place offers support services in informal township areas in the Cape Town. Entrepreneurs in the have access to training and incubation programmes at the Philippi Village. These services target the development of new businesses and cooperatives from the idea stage to start up and existing businesses to the growth stage in the informal sector.

The Cape Accelerate programme

The Cape Accelerate programme focusses on businesses in the agri-processing and oil and gas sectors.

This intervention offers a business support programme aimed at identifying business constraints, developing action plans and implementing improvement strategies.

Partnerships which would enhance the competitiveness of the businesses are also identified.  The programme offers mentoring support to entrepreneurs and business owners.

Red Tape Reduction Business Helpline

The Red Tape Reduction Business Helpline provides a dedicated communication channel for businesses.

The Business Helpline resolves general business-related enquiries, such as access to finance or tender information, and also assists with general red tape-related blockages experienced by business when dealing with government departments and municipalitie. This can include stalled or delayed EIA applications, business registrations, permits, rezoning applications, etc. 

Since its inception in 2011, the Business Helpline has received in excess of 4 000 calls, and has closed more than 93% of these cases.

Businesses can access the service through logging a call at the call centre on the number 0861 888 126, sending an email to redtape@westerncape.gov.za, sending a sms or a please call me.

LaunchLab

This initiative is a partnership with higher education.

It seeks to support university graduates in starting enterprises, with a focus on the high growth technology and innovation areas.

This includes business idea generation and workshops, pitching sessions, coaching and mentorship.

Municipal partnerships

Support for small businesses (particularly those that are predominantly informal and based in townships) is also provided by assisting the municipalities where these businesses operate. DEDAT has given the municipalities guidelines to inform the development of by-laws that govern informal trading activity.

It has also developed criteria around the location of informal trading sites and amenities.

Agriculture sector

In the agriculture sector, the Provincial Department of Agriculture commissioned an evaluation, during which subsistence and smallholder farmers expressed a need for basic infrastructure (irrigation, equipment), access to resources (land, water, energy), basic technical advice (vaccinations, cultivars, farming systems) and recommendations on planting schedules for food security.

In addressing these needs the Department has implemented direct support as well as projects under the umbrella of commodity organisations. 

One of these actions is to assist smallholder farmers and or entrepreneurs to establish new cooperatives and another action is to render support to existing cooperatives. The support provided includes comprehensive information sessions on cooperatives, name reservation and registration process, structure set up and constitution, and after care support. The latter includes linkages to all other services provided by the department and others.