Finance and Economic Opportunities

Question by: 
Hon Cayla Murray
Answered by: 
Hon Mireille Wenger
Question Number: 
2
Question Body: 

With regard to the recently signed memorandum of understanding (MOU) between the Western Cape Department of Economic Development and Tourism and the national Department of Small Business Development:

  1. What are the relevant details of the MOU, (b) how is the MOU predicted to improve support for small businesses in the Western Cape, (c) what support will be provided to small businesses in (i) rural and (ii) urban areas and (d) what specific provisions in the MOU will reduce red tape and improve the efficiency of compliance with legislation?
Answer Body: 

I am informed of the following:

  1. The aim of the Memorandum of Understanding (MoU) is to foster collaboration between the Department of Small Business Development (DSBD) and the Provincial Department of Economic Development and Tourism (DEDAT) to increase the contribution of small enterprises to economic growth and employment. The MoU seeks to enhance support for the development and promotion of entrepreneurship and enterprises development in the Western Cape.  
  1. The collaboration between the two Departments will benefit small business through improved coordination and implementation of various initiatives to support small enterprises in the Western Cape.
  1. The support to businesses will cover the Western Cape (i.e., both rural and urban areas) and will include:
    1. Sector support interventions in the Western Cape.
    2. Promoting and encouraging the take up of incentives offered by DSBD.
    3. Strengthening of the District Ecosystem Facilitation.
    4. Making it easier for small business to access public procurement and addressing inefficiencies.
    5. Supplier development initiatives to strengthen small businesses to access sector value chains.
    6. Business incubation and accelerator programmes targeting tech-related small businesses.
    7. Red tape reduction linked to national legislation, policies and business facing services.

The support offered by DSBD includes their agencies such as the Small Enterprise Development Agency (Seda) and the Small Enterprise Finance Agency (Sefa).

  1. The red tape reduction will focus on areas where blockages and inefficiencies emanate from national legislation, policies, and business-facing services (e.g., tourist transport operating licences).  
Date: 
Friday, March 24, 2023
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