With the Fourth Industrial Revolution (4IR) fast approaching, Small Business Development Minister Lindiwe Zulu on Thursday said a common understanding was needed among all people in South Africa in order to respond to the challenges and possibilities that it presents.

This, she told delegates attending the second South African Business Incubation Conference (Sabic), held in Kempton Park, included small, medium-sized and microenterprises (SMMEs), as well as the informal sector.

The conference – an initiative of the Department of Small Business Development (DSBD) – aims to showcase innovative accelerators and incubators, together with their innovative start-ups. It aims to bring together both private and public incubators with the aim of improving the enterprise development ecosystem by sharing best practice from South Africa, Africa and across the globe.

About 500 delegates are expected to attend this year’s event.

To understand how the 4IR can be used to the country’s advantage, Zulu noted that this year’s Sabic theme – Creating Inclusive Entrepreneurial Growth Through Innovation – was a demonstration that government was serious about ensuring an inclusive economy that enabled growth and the sustainability of SMMEs.

In this regard, she highlighted the National Development Plan, which had provided a roadmap for South Africa’s economic development and is the focal point for achieving inclusive growth in addressing the triple challenges that plague the country – poverty, unemployment and inequality.

Despite recent calls for the DSBD to be shut down, the Minister told delegates that the department was pursuing both the establishment of and proper conduct of trade.

She referred to several departmental initiatives surrounding the business development services (BDS) sector, which were critical in the face of multiple economic crises.

To this extent, Zulu told delegates that the DSBD had begun a new internal revitalisation project within the department, and the Small Enterprise Finance Agency (Sefa) and Small Enterprise Development Agency (Seda).

“These will be driven by the development of the new Enterprise Development Act. Several definitions and decisions were gazetted on October 12, and the overall amendments are in progress. These will quite likely be available for comment by March 31, 2019,” she said.

This Act, and the supporting legislation, will reposition the DSBD, Sefa and Seda in “a strong way”, which would also contribute to strengthening SMMEs, she added.

The DSBD has also developed a new draft policy framework and certain standards for the professionalisation of the BDS sector.

“This policy framework is intended to give guidance to the State and the private sector in order to better coordinate national efforts.”

Once the internal processes are complete, the department will engage with the sector to obtain its views on the policy.

The policy, Zulu explained, would be focusing on and closely aligned with the national mandate for the development of SMMEs.

“This means that our department, Seda and Sefa will become an aid to the BDS sector and facilitate innovation through improved facilitation and implementation.”

The DSBD has also developed an integrated BDS policy framework, which covers how the BDS sector is classified, from incubators, circulators, business trading providers, realtors and business advisers to consultants, business coaches and more.

The policy document provides an understanding of what defines an incubator or business accelerator and aims to improve SMME’s chances of success by providing a structured programme and mentoring space, as well as facilitating access to funding.

Manufacturing and agriculture/business would remain a key focus for the department, she said.