Latest news with #StellaNdabeni
IOL News
a day ago
- Business
- IOL News
Why business incubations often falter
Small Business Development Minister Stella Ndabeni addresses the Joint Neeve Centre media briefing on Spaza Shop and Food Outlet registration deadline. Micro, Small, and Medium-sized Enterprises contribute 34% to the GDP and 60% to employment, according to the Small Enterprise Development Agency, says the writer. Image: GCIS MICRO-, Small, and Medium-sized Enterprises (MSMEs) Day is observed on 27 June to recognise the important role of MSMEs in economic growth and development. They represent 90% of businesses globally, while their contribution to employment is more than 50% and 40% to GDP according to the World Bank. In South Africa, MSMEs' contributions to GDP and employment are 34% and 60% respectively, according to the Small Enterprise Development Agency. Given their substantial economic role, supporting MSMEs is a strategic public investment that can unlock inclusive and sustainable growth and development. Since 1995, the South African government has implemented various policy measures to support the development and promotion of small businesses. Over time, these mechanisms have become more targeted and streamlined to enhance the impact and accessibility of support. Current support instruments include mentorship and coaching, training programmes, access to finance (through loans or grants), general business advisory services, market and trade facilitation, and business incubation and acceleration programmes. Business incubation, in particular, has gained prominence in both policy and academic discourse for its potential to accelerate the growth, innovation, and sustainability of MSMEs in South Africa. Several success factors for business incubation have been identified, including access to appropriate technology and facilities, stringent selection criteria, the quality of entrepreneurs, stakeholder support, supportive policy frameworks, competent and motivated management, and sustainable financial support. However, recent research highlights persistent performance disparities among South African business incubators. Many incubators fall short when benchmarked against best practices, pointing to ongoing challenges in service quality and effectiveness. Others struggle to survive due to chronic financial constraints. This has led to a pattern of decoupling, where organisational activities become disconnected from core developmental goals, often prioritising legitimacy over impact. Furthermore, research reveals that incubators frequently suffer from limited resources, obsolete and dated machinery and technology, as well as a shortage of skilled practitioners, including gaps in critical areas such as marketing strategy. Compounding these issues, many incubatees admitted into programmes do not meet established selection criteria, indicating systemic weaknesses in the selection process. Business incubation, as a specialised support mechanism for small business development, is clearly not delivering on its potential and not being used for its purpose. It serves clients that should not be selected for incubation; it is not well-resourced; business development skills are deficient; and strategic competence is lacking. To address these shortcomings, we need to shift our focus from providing basic support to cultivating higher-order capabilities that equip incubatees for long-term adaptability, innovation, and competitiveness. Improving the chances of small business success depends not just on acquiring basic resources, but also on developing higher-order capabilities that enable adaptability, innovation, and strategic renewal. Studies have shown that firms with dynamic capabilities, such as marketing agility and integrated management approaches, tend to proactively respond to change, leveraging technology and organisational learning to build complex systems that drive sustained performance. Unlike threshold-level resources that support daily operations and survival, higher-order resources empower firms to sense opportunities, seize them effectively, and transform continuously for long-term competitive advantage and sustainability. Additionally, in the small business context, innovation capability rests with the owner as they are the primary decision makers. Their personal, behavioural and environmental contexts are key aspects to be considered, and they should therefore be the unit of analysis when developing small businesses. To meaningfully enhance the role of MSMEs in South Africa, three strategic shifts are required with specific reference to business incubation: collaboration between academia, industry, and government for effective knowledge transfer and spillover towards sustainable development, innovation, entrepreneurship, and economic growth; utilising business incubation as a specialised MSME development mechanism; and moving from a survival mindset to one of higher-order capabilities— the ability to respond strategically to change or the ability to recognise, assimilate, and apply new knowledge. These capabilities are what allow MSMEs to innovate, compete, and thrive sustainably—not just survive from grant to grant. As scholars have noted, it is not just resources but the ability to leverage them strategically that enables long-term success. In the context of MSME development, the entrepreneur is the engine of innovation. Their individual characteristics, context, and decision-making approaches matter deeply. As such, we must build ecosystems that invest in the entrepreneur's capacity, not just their business infrastructure. If we are serious about building a more inclusive and resilient economy, then enabling MSMEs with the right capabilities and support is not optional—it is essential. As we celebrate MSMEs Day, let us also reflect on business incubation—a key mechanism for developing and promoting small businesses in South Africa and around the world. Solomon is a lecturer in the Department of Business Management at Stellenbosch University.
IOL News
a day ago
- Business
- IOL News
Stella Ndabeni unveils R2. 9 billion budget to empower small businesses
Small Business Development Minister Stella Ndabeni has outlined several financing package schemes to fund Micro, Small, and Medium Enterprises in the 2025/26 financial year Image: Simphiwe Mbokazi / Independent Newspapers Small Business Development Minister Stella Ndabeni on Friday tabled in the National Assembly her department's R2.9 billion budget for the 2025/26 financial year. Speaking during the budget vote debate, Ndabeni said the budget reflected their unwavering commitment to the spirit of the Freedom Charter. 'We are building a more inclusive economy that enables youth, women, and communities in townships and rural areas to participate meaningfully in shaping South Africa's future through Micro, Small, and Medium Enterprise (MSME) development,' she said. Ndabeni also said R2.4 billion of the budget will be transfers and subsidies to the department's entities, while the remaining R468 million was meant for compensation of employees at R265 million, R197 million for goods and services, and R6 million in capital expenditure. 'Of the R2.45 billion for transfers and subsidies, the Small Enterprise Development and Finance Agency (SEDFA) receives R1.908 billion (77.9% of the transfers and subsidies). The department manages the remaining R542.6 million, accounting for 22.1% of the total transfers.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The minister said the department has allocated just R990m in entrepreneurship finance packages to the Development Fund, which is meant for new entrants and higher risk borrowers, and R330m to the Commercial Fund for the growth-ready MSMEs. 'We will launch a new Youth Entrepreneurship Fund, initially capitalised at R300m. This fund is aimed at harnessing the creativity and innovation of our younger generation to contribute to the country's growth through entrepreneurial ventures,' she said. 'We will launch the new Women Entrepreneurship Fund, also initially capitalised at R300 million, to enable more women to be self-employed as entrepreneurs and small business owners.' Ndabeni added that R979m in credit guarantees will be allocated for small enterprise borrowers. 'These credit guarantees remain an important part of our offerings, leveraging banks and non-bank financial institutions to take on MSME borrowers that are above their ordinary risk tolerance.' On township and rural economy development, Ndabeni said they will build 50 small business hubs for entrepreneurs and MSMEs in each district. 'Aligned to local industrialisation opportunities, these will be spread across the townships and rural areas, and will integrate the financial and non-financial services we offer as a portfolio. 'We will also refurbish small industrial parks in four provinces - North West, Mpumalanga, Eastern Cape and Northern Cape,' she said. Ndabeni also said digital transformation of small businesses will be at the centre, as township and rural enterprises often struggle to get access to reliable and affordable broadband services. 'Through SEDFA and as part of our mandate to finance small businesses, we will support 50 internet service providers across 50 districts to provide the necessary affordable, quality broadband to small enterprises and communities in rural areas. 'This intervention will not only deliver affordable broadband to small enterprises and communities, but will bring ownership of telecommunications infrastructure to people who have never owned such infrastructure before and create jobs for the youth.' The department will also support two cellphone repair centres in 50 districts. 'We have budgeted R958.7 million over the Medium-Term Expenditure Framework (MTEF), and R310.8 million for 2025/26. SEDFA will also contribute R253 million over the MTEF.' According to Ndabeni, a total of R543m has been allocated for the Township and Rural Entrepreneurship Programme to empower local businesses in order to drive economic growth and job creation in historically disadvantaged areas.
IOL News
a day ago
- Business
- IOL News
Minister Ndabeni outlines steps to support small businesses and co-operatives
Minister of Small Business Development Stella Ndabeni is confident that the legislative and policy interventions will make the support to Micro, Small and Medium Enterprises more coherent. Image: Kopano Tlape / GCIS Small Business Development Minister Stella Ndabeni on Friday said her department was steadily moving towards closing policy gaps in order to remove constraints in a move to enable Micro, Small, and Medium Enterprises (MSMEs) and co-operatives to thrive. 'We move from the premise that the small enterprise support ecosystem has legislative and policy gaps. To this end, we are steadily closing those gaps to ensure that constraints are removed, and a more enabling environment is created for MSMEs and co-operatives to thrive,' Ndabeni said. Speaking during the budget vote in the National Assembly, she said the amendment of the National Small Enterprise Act has led to the establishment of the Small Enterprise Development and Finance Agency (SEDFA) and the Office of the Small Enterprise Ombud. Ndabeni also said the MSME and Co-operatives Funding Policy was approved by the Cabinet last year. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ 'We are now working on partnerships to establish an alternative MSME credit rating system as well as a movable asset registry to address the lack of collateral among MSME borrowers. 'The current risk assessment models used by financiers (audited financial statements, credit history, collaterals) are not suitable for MSMEs, as they are mainly designed for big businesses. With an alternative credit data model, we can ensure that financiers are able to use alternative data like bill payments, e-commerce activity, mobile money transactions, and others to foster financial inclusion for the majority of MSMEs.' Ndabeni further said they were working with the Department of Trade, Industry and Commerce on the Transformation Fund. 'This will be a game-changer for MSME funding. We must enhance MSMEs' readiness to secure funding, particularly in poorer provinces, townships, and rural areas.' Ndabeni stated that they have recently approved the National Business Licensing Policy and were now amending the Business Licensing Bill to simplify business licensing and introduce preferential licensing for targeted empowerment and promotion of previously disadvantaged groups in economic activity for specific sectors. She added that the department was finalising the National Entrepreneurship Strategy, which focused on the individual entrepreneur and their needs at different stages of development. Another policy initiative was the Township and Rural Economic Development and Revitalization Policy, which will go to Cabinet this year. 'This policy will enable a more consolidated approach by the government when it comes to supporting township and rural MSMEs and co-operatives. The policy calls for the creation of vibrant township and rural small business hubs, which will require a more coordinated approach by the three spheres of government around zoning, business licensing, infrastructure provisioning, and investment.' Ndabeni was confident that the legislative and policy interventions would make the ecosystem more coherent and ensure that more MSMEs were better served, especially those owned by women, youth, people with disabilities, as well as enterprises from townships and rural areas. According to Ndabeni, the department was also instituting a new service delivery model. 'We are developing a robust monitoring and reporting framework for all ecosystem players, which we will present to the Cabinet this year. We are also establishing internal research capacity and undertaking sector-specific value chain studies to inform targeted interventions in productive sectors of the economy.' She also said they have created a research think-tank to support evidence-based policy and formal partnerships with deans of commerce from higher education institutions. 'We are also finalising the appointment of a new Small Business Advisory Body.'
The Citizen
18-06-2025
- Business
- The Citizen
Government's Spaza Shop campaign goes to Sedibeng
The Sedibeng District Municipality in Gauteng will be the next stop in the national campaign to create awareness about the Spaza Shop Support Fund. This as an interactive session is set to take place at the City Hall, in the Vereeniging Central Business District, on Friday. This leg of the campaign will offer spaza shop owners and township-based convenience store operators critical information on how to apply for both financial and non-financial support under the R500-million fund that was launched by Trade, Industry and Competition Minister Parks Tau and Small Business Development Minister Stella Ndabeni in April. The fund is aimed at increasing the participation of South African owned spaza shops in the townships and rural areas retail trade sector. The national campaign, spearheaded by the Department of Trade, Industry and Competition (the dtic) and the Department of Small Business Development (DSBD), follows successful engagements held in KwaZulu-Natal, Northern Cape, North West, Mpumalanga and Limpopo. At these events, township-based entrepreneurs gathered in large numbers to learn how they can access support from the fund. The initiative is implemented in partnership with the Small Enterprise Development and Finance Agency (SEDFA) and the National Empowerment Fund (NEF) which are agencies of the DSBD and the dtic, respectively. These entities are responsible for administering the fund. The campaign aims to bolster the township economy by supporting South African-owned spaza shops and other township convenience stores through: • Access to affordable stock via delivery channel partners, • Infrastructure upgrades including shelving, refrigeration and security, Point of Sale devices, • Training programmes covering business skills, digital literacy, compliance, credit health and food safety, and partnerships with local manufacturers, black industrialists and wholesalers to improve supply chain inclusion. 'These efforts are geared toward increasing the competitiveness of township businesses and ensuring they play a significant role in the broader retail sector. 'The campaign also promotes bulk buying and the use of locally produced goods, helping spaza shops lower operating costs while improving access to quality products,' the dtic and the DSBD said in a joint statement on Wednesday. Friday's session is expected to get underway at 9am. – At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Zawya
30-05-2025
- Business
- Zawya
South Africa: Govt pays $335,634 from spaza shop fund
Government has so far disbursed R6m out of R500m in funding through the Spaza Shop Support Fund (SSSF) to eligible spaza shops and other food-handling outlets. The fund, aimed at increasing the participation of South African-owned spaza shops in the townships and rural areas retail trade sector, was launched last month. 'This is moving in a slow pace due to all the parties that are involved in coordinating the work, which includes inspections, verification of citizenship as well as site and health inspections. 'The fund will assist shop owners that met the deadline for the registration of an operating permit,' Minister of Small Business Development Stella Tembisa Ndabeni said during a media briefing in Pretoria on Thursday, 29 May. It offers funding of up to R300,000 per shop through a combination of grants and low-interest loans. In addition, it allocates funding specifically for initial stock purchases, infrastructure improvements, business development tools, and Point of Sale (POS) system adoption. The fund is being administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (Sefda). Through the fund, shop owners will be provided with assistance in meeting hygiene and regulatory standards to ensure the provision of safe, high-quality products. Inaugural Global SME Ministerial Meeting Marking the countdown to the first-ever Global Small and Medium-sized Enterprises (SME) Ministerial Meeting to be hosted by the South African government and the United Nations Small Business Agency in Johannesburg, the Minister shared the vision and expected outcomes of the Ministerial meeting. Taking place from 22-24 July 2025, the Ministerial Meeting will serve as a dedicated platform for ministers and officials responsible for Micro, Small and Medium-sized Enterprises (MSMEs) to share strategic insights, shape future policies, and foster global consensus on the small business agenda. Countries from around the world have confirmed their participation, including Brazil, Cambodia, Costa Rica, Egypt, Ethiopia, Kenya, India, Indonesia and Switzerland, among others. Nearly 50 countries are expected to be at the event. 'As a country, through the Department of Small Business Development, we are steadfast in our commitment to create a more enabling legislative and policy environment that empowers small businesses to grow, scale up, and compete on the global stage. 'In addition, we will galvanize a call-to-action to influence dialogues and decisions at the Group Twenty (G20) Summit under South Africa's leadership. We are unequivocal that the G20 needs a sharper MSME focus with its own dedicated Working Group, and we will use this Global Ministerial to bolster this position. 'We will also use this Global Ministerial to develop and activate strong partnerships across governments, multilateral institutions, and businesses. We do not want a talk- shop. We will emerge with practical initiatives that strengthen the global MSME support eco-system, as well as country-level partnerships that translate policy into action,' the Minister said. Startup20 Task Force The Department of Small Business Development will also be hosting the Startup20 Task Force planning sessions in the days preceding the Ministerial. This will provide the opportunity for Task Force leaders to share thinking with global MSME leaders beyond the G20. 'The challenges that small businesses face is vast and cannot be tackled by any one nation alone. Thus, I passionately urge governments, international agencies, development partners, and the private sector to join us in strengthening MSME ecosystems. 'Let us deepen our regional and global cooperation, share knowledge, and uplift MSMEs especially those led by women, youth, and persons with disabilities,' the Minister said. South Africa assumed the G20 Presidency from 1 December 2024 to 30 November 2025 under the theme: Solidarity, Equality and Sustainability.
